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 Emerging Local Bond Fund offers efficient exposure to fast growing emerging markets by investing 80% of its assets in fixed income securities denominated in the local currencies of emerging countries. The fund may use derivatives such as options, futures, or swaps, and may or may not hedge its exposure to non-US currencies.
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.
China InterBank Bond Market ("CIBM")
The fund may be exposed to liquidity risks, settlement risks, default of counterparties and market volatility associated with CIBM. In addition, the CIBM rules are new and still subject to further clarification and/or changes, which may adversely affect the fund's capability to invest in the CIBM.
Investor Benefits
This fund offers exposure to high interest rates in EM countries and to appreciation of EM currencies, with a low correlation to other asset classes.
The Fund Advantage
The fund leverages PIMCO’s disciplined investment process and expertise in local market inefficiencies to overcome complex investment entry barriers.
BENCHMARK
J.P. Morgan Government Bond Index‑Emerging Markets Global Diversified Index (Unhedged)
BENCHMARK DESCRIPTION
JPMorgan Government Bond Index-Emerging Markets Global Diversified Index (Unhedged) is a comprehensive global local emerging markets index, and consists of regularly traded, liquid fixed-rate, domestic currency government bonds to which international investors can gain exposure. It is not possible to invest directly in an unmanaged index.
SHARE CLASS INCEPTION
2008-11-19
OLDEST SHARE CLASS INCEPTION
{{ overviewDataJSON.oldest_shareclass_inception_date }}
TICKER
{{ overviewDataJSON.symbol }}
SEDOL
{{ overviewDataJSON.sedol }}
CUSIP
{{ overviewDataJSON.cusip }}
VALOREN
{{ overviewDataJSON.valoren }}
WKN
{{ overviewDataJSON.wkn }}