Fund Rationale: PIMCO GIS Low Duration Income Fund

PIMCO GIS Low Duration Income Fund (the “Fund”)
SGD Hedged Institutional Accumulation Shares (ISIN: IE00BMY4TJ39)
Fund Manager Page
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Endowus has selected the Fund for its diversified portfolio of low duration bonds globally, designed to generate attractive current income and minimum interest rate risks, as well as capital appreciation over the long term.

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Key Information

Fund Objective: Seeks to achieve attractive income by actively managing and tapping into multiple areas of the global bond market, while maintaining relatively low interest rate exposure with a secondary goal of capital appreciation.

Suitability: Investors who are seeking for long-term total return, are comfortable with the risk of a fund investing in bonds primarily denominated in Singapore Dollars, and appreciate that their capital will be at risk and that the value of their investment and any derived income may fall, as well as rise.

Cost:
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  1. Total Fund-level Fees include fund management fee of 0.55%.
  2. This is an institutional share class that offers the lowest possible fees. There are no trailer fees for this institutional share class.
  3. Endowus does not charge a preliminary sales charge or any other additional fees, other than the all-in Endowus Access Fee.

Fund Characteristics

Fund Inception: 30 July 2004
Share Class Inception: 14 October 2020
Benchmark: Bloomberg Barclays U.S. Aggregate 1‑3 Years Index

Fund AUM: SGD 1.3bn
Source: MorningStar as of 31 March 2021. Please refer to the FMC page for the most updated AUM.

Regional Allocation:
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Sector Allocation:
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Source: MorningStar as of 28 February 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.

Selection Criteria

Endowus has selected the PIMCO GIS Low Duration Income Fund for its diversified portfolio of bonds with a duration band of 0 to 3 years, targeting multiple sources of income and low interest rate exposure from a global opportunity set. The Fund does not attempt to pursue the highest yield, but instead prudently provides the most favourable risk-adjusted returns and balances downside risks, and therefore provides good exposure to investors looking for relatively safe and attractive income and capital gain opportunities. The underlying strategy has been incepted in 2004, and since then, PIMCO has managed to generate a strong record over the long term that outperformed the benchmark and most of its peers.

Endowus has worked hard with PIMCO to launch the SGD Hedged Institutional Accumulation Share Class to offer investors a lower fee as compared to the fee of 145bps for other SGD share classes in this Fund, therefore giving meaningful access to investors with income-generating objectives. The Fund is managed by PIMCO Group CIO Dan Ivanscyn, Alfred Murata, and Eve Tournier, with an average investment experience of 25 years.

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Updated by Endowus: April 2021

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