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
PIMCO GIS Climate Bond Fund offers a global, flexible, multi-sector credit portfolio that aims to help foster the transition to a net zero carbon economy while seeking risk-adjusted returns comparable to an investment grade portfolio. To do so, the fund invests in a diversified portfolio of multi-sector global bonds from issuers of labeled and unlabeled green bonds, as well as companies demonstrating climate change leadership across the value chain.
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.
Fixed Income Risk
There is a risk that the institution which issued the securities will fail, which would result in a loss of income to the fund. Fixed income values are likely to fall if interest rates rise.
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
Addressing climate change has become a first-order issue for many business leaders and policy makers globally as risks and realities mount, and public engagement grows. The fund is designed to address this challenge by investing in efforts to mitigate climate risks today while raising up the providers of long-term climate solutions of tomorrow. Potential benefits of this include:
- Seeks to deliver positive investment performance while supporting positive climate change solutions
- Access to a diversified portfolio of multi-sector global bonds – beyond green bonds – from issuers that provide climate solutions across the value chain.
- Seeks to directly mitigate first-order climate risks while raising up long-term climate solution leaders.
The Fund Advantage
PIMCO’s skilled, flexible multi-sector, global expertise helps the fund access opportunities across the full value chain of the climate mitigation effort while also allowing it to adapt quickly to changing market conditions and new opportunities. Further, PIMCO is well-positioned to influence and support positive climate change solutions. The firm’s expansive reach in fixed income markets due to its size, scope of expertise and ability to engage issuers has made it an impactful participant, which has helped guide companies and move the market toward meaningful climate change solutions. Finally, PIMCO sees investments as relationships. We have conversations with the issuers of the bonds we invest in, in part designed to encourage issuers to improve their approach to sustainability.
BENCHMARK
Bloomberg MSCI Green Bond Index, SEK Hedged
BENCHMARK DESCRIPTION
The Bloomberg MSCI Green Bond Index, SEK Hedged offers investors an objective and robust measure of the global market for fixed income securities issued to fund projects with direct environmental benefits. An independent research driven methodology is used to evaluate index-eligible green bonds to ensure they adhere to established Green Bond Principles and to classify bonds by their environmental use of proceeds. It is not possible to invest directly in an unmanaged index.
SHARE CLASS INCEPTION
2021-10-08
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