PIMCO Diversified Income Fund E Acc USD
PIMCO 多元化入息基金 E類 Acc 美元
iFund risk rating methodology is a qualitative and quantitative assessment of a single fund’s geographic and asset class focus, investment style and any potential risk factors, as measured from one (1) (lowest risk) to six (6) (highest risk). For the funds with risk rating three (3) or four (4), these are mainly aimed at providing income and capital appreciation to investors by investing primarily in balanced portfolio, including high yield bonds and global equities etc. For more details, please refer to the Due Diligence section under the Procedures page.
As low as 0.5 %
Derivatives knowledge not required
AUD / HKD / EUR / USD
- 1 mth
- 3 mth
- 6 mth
- 1 yr
- 3 yr
- 5 yr
As low as 0.5 %
Derivatives knowledge not required
AUD / HKD / EUR / USD
The Fund’s objective is to seek maximum total return consistent with prudent investment management (i.e. identifying and implementing strategies for consistent, disciplined and cost-effective investment, based on considerable research and measured forethought, and continual monitoring of individual security and total portfolio risk).
Investment involves risks. Please refer to the Prospectus for details including the risk factors.
1. Credit risk
The Fund may suffer losses if the issuer of a fixed income security in which it invests is unable or unwilling to make timely principal and/or interest payments, or to otherwise honour its obligations.
2. Emerging markets risk
Investing in emerging markets securities imposes risks different from, or greater than, risks of investing in developed countries due to, among other factors, greater price volatility, market, credit, legal, taxation, custody,liquidity, currency, political, economic and regulatory risks.
The systems and procedures for trading and settlement of securities in emerging markets are less developed and less transparent and transactions may take longer to settle. In addition, foreign exchange controls in emerging market countries may cause difficulties in the repatriation of funds from such countries.
Because the Fund’s investments may be concentrated in emerging markets, the Fund may be subject to greater volatility than portfolios which comprise broad-based global investments. During times of market uncertainty, such investments may negatively affect the Fund’s performance.
3. High yield, below investment grade and unrated securities risk
The Fund may invest in high yield, below investment grade securities and unrated securities of similar credit quality. These securities typically entail greater potential price volatility and may be less liquid than higher-rated securities. Investments in such securities may also be subject to greater credit risk. If the issuer of a security is in default with respect to interest or principal payments, the Fund may lose its entire investment.
4. Interest rate risk
The value of fixed income securities tends to decrease when interest rates rise, which may cause a decrease in value of the Fund.
Fixed income securities with longer durations are more sensitive to changes in interest rates, usually making them more volatile than securities with shorter durations.
5. Downgrade risk
The Fund may hold securities that may be impacted by a downgraded credit rating. In the event of downgrading of the securities, the Fund’s investment value in such securities may be adversely affected. The manager may or may not be able to dispose of the debt instruments that are being downgraded.
6. Derivatives risk
Risks associated with financial derivative instruments (“FDI”) include counterparty/credit risk, liquidity risk, valuation risk, volatility risk and over-the-counter transaction risk. The leverage element/component of an FDI can result in a loss significantly greater than the amount invested in the FDI by the Fund. Exposure to FDI may lead to a high risk of significant loss by the Fund.
Although the leverage figure of the Fund calculated using the commitment approach will typically not materially exceed 100% of the NAV of the Fund, in exceptional circumstances the Fund may have a leveraged exposure of over 100% of the NAV of the Fund when using this calculation methodology. This will further magnify any potential negative impact of any change in the value of the underlying asset on the Fund and also increase the volatility of the Fund’s price and may lead to significant losses. Given the leverage effect embedded in derivatives, in the worst case scenario, investing in derivatives may result in total or substantial loss from the use of derivatives.
7. Risks relating to reverse repurchase agreements
In the event of the failure of the counterparty with which collateral has been placed, the fund may suffer loss as there may be delays in recovering collateral placed out or the cash originally received may be less than the collateral placed with the counterparty due to market movements.
8. Risks relating to repurchase agreements
In the event of the failure of the counterparty with which cash has been placed, the Fund may suffer loss as there may be delay in recovering cash placed out or difficulty in realising collateral or proceeds from the sale of the collateral may be less than the cash placed with the counterparty due to market movements.
9. Currency risk
The Fund’s investment in non-USD denominated fixed income securities and currency positions may cause the value of the Fund’s investments to fluctuate with changes in exchange rates. This may lead to a fall in the Fund’s NAV.
Active currency positions implemented directly or indirectly by the Fund may not be correlated with the underlying securities held by the Fund. As a result, the Fund may suffer significant losses even if there is no loss to the value of the underlying securities held by the Fund.
10. Liquidity risk
Liquidity risk exists when particular investments are difficult to purchase or sell. Also, illiquid securities may become harder to value especially in changing markets.
The Fund’s investments in illiquid securities may reduce the returns of the Fund because it may be unable to sell the illiquid securities at an advantageous time or price which could prevent the Fund from taking advantage of other investment opportunities.
11. Sovereign debt risk
The Fund’s investment in securities issued or guaranteed by governments may be exposed to political, social and economic risks. In adverse situations, the sovereign issuers may not be able or willing to repay the principal and/or interest when due or may request the fund to participate in restructuring such debts. The Fund may suffer significant losses when there is a default of sovereign debt issuers.
12. Investment risk
The Fund’s investment portfolio may fall in value and therefore your investment in the Fund may suffer losses.There is no guarantee of the repayment of principal.
Due to the higher than average degree of risk attached to investment in the Fund due to its ability to invest in high yield securities and emerging markets securities, an investment in the Fund should not constitute a substantial proportion of an investment portfolio and may not be appropriate for all investors.
13. Risks relating to the charging of fees / payment of dividends out of capital
For the Income II Shares (which seeks to provide an enhanced yield to shareholders), the Fund may, at its discretion, charge fees to capital (which constitutes a payment of dividends effectively out of capital) as well as pay dividends out of capital. The Fund may also take into account the yield differential between the relevant hedged share class and the base currency of the Fund (which constitutes a distribution from capital). The yield differential can be positive or negative and is calculated taking into account the contribution of the share class hedging arising from the respective type of hedged classes. This amounts to a return or withdrawal of part of an investor’s original investment or from any capital gains attributable to the original investment.
Any distributions involving the payment of dividends out of capital, charging of fees to the capital of the Fund and inclusion of yield differentials effectively amounts to a return or withdrawal of part of an investor’s original investment or from any capital gains attributable to that original investment. Any such distributions may result in an immediate reduction of the NAV per share.