PIMCO GIS US High Yield Bond Fund (the “Fund”)
SGD Hedged Institutional Accumulation Shares (ISIN: IE000S3T92E2) | Daily Price & Charts (SGD)
USD Institutional Accumulation Shares (ISIN: IE0002460974) | Daily Price & Charts (USD)
Fund Manager Page
Endowus has selected the Fund as it:
Fund Objective: Seeks to maximise total return while limiting risk by investing at least two-thirds of its assets in a diversified portfolio of USD denominated high yield corporate bonds, with a maximum of 30% of its assets in securities rated lower than B.
Suitability: Investors who are looking to maximise total return through a combination of both income and capital growth, are looking for a diversified exposure to high yield fixed income markets, are willing to accept the risks and volatility associated with investing in such markets, and have an investment horizon over the medium to long term.
Cost (SGD, USD):
Fund Inception: 28 May 1998
Share Class Inception: 23 July 2021
Benchmark: ICE BofA US High Yield Constrained Index
Fund AUM: SGD 5.71bn
Source: MorningStar as of 30 June 2021. Please refer to the FMC page for the most updated AUM.
Source: MorningStar as of 31 March 2021. Allocation data indicate actual exposure as a percentage of the Fund's total Net Asset Value. Please refer to the Fund Manager Page for the most updated information on Fund Holdings and Breakdown.
Endowus has selected PIMCO GIS US High Yield Bond Fund as it provides diversified exposure to the US high yield market by employing a long term, total return approach with a focus on reducing downside risk. The Fund is benchmark-oriented and seeks to generate the majority of its performance from bottom up credit selection, as well as corporate industry selection. In addition, the Fund’s core holdings are in credits with relatively low perceived risk of default. Since inception, the Fund has realised first quartile performance compared to its peers, and a much lower default rate than the US High Yield market in general.
The experienced portfolio management team employs a team-based approach and leverages PIMCO’s firm-wide research and analytics capabilities. The PM team has on average 22 years of investment experience. The lead Portfolio Manager Andrew Jessop has been managing the fund since 2010 and he has 32 years of investment experience and has gone through multiple market cycles in the US High Yield space. They are supported by PIMCO’s seasoned team of credit research analysts with an average 14 years of experience, who analyse each issuer and generate independent credit ratings that are forward-looking. Across the firm, PIMCO has deep pockets of specialist knowledge that the PM team can draw upon in different situations. We also like that the investment process is highly institutionalised with inputs from different parts of the firm and thus removes dependency on any key individuals.
Endowus has worked with PIMCO to launch the SGD Institutional share class to offer low cost access to our investors. The Fund is one of the cheapest US High Yield Funds retail investors in Singapore can access.
Investors can consider using this Fund in a barbell approach with high grade bonds on one side and high yield bonds on the other to achieve an optimal mix. It is important to note that investing in a US high yield fund would subject you to more credit risk concentrated in the US. It is relevant to consider the Fund in diversifying your holdings with allocations to other types of investment, such as global investment grade corporate bonds, government bonds, and equities.
Updated by Endowus: September 2021
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