Emerging Markets Bond Fund

PEBNX

Updated April 18, 2019

Objective

Seeks maximum total return, consistent with preservation of capital and prudent investment management

Primary Portfolio

Fixed income instruments issued in emerging market countries

Overview

Fund Overview

Risk-managed exposure to emerging markets

PIMCO Emerging Markets Bond Fund takes a value-focused approach to accessing some of the world’s fastest growing economies, with actively managed investments in U.S. dollar-denominated EM debt.

Why Invest In This Fund

A value-focused approach

The fund aims to capture EM’s higher yield and growth potential while moderating the heightened risks of the asset class. The investment team pursues this goal by deploying PIMCO’s top-down/bottom-up process to carefully research and select intermediate-term U.S. dollar-denominated bonds issued by EM countries.

Enhanced portfolio diversification

EM bonds have had relatively low historical correlations with other fixed income assets, such as U.S. Treasuries, and may help enhance overall portfolio diversification. While diversification can reduce risk, it does not guarantee a profit or necessarily protect against loss.

Improving EM fundamentals

As advanced economies continue to expand their balance sheets, many emerging countries have low or declining debt-to-GDP ratios while still providing higher yields than their developed market counterparts. PIMCO’s deep EM expertise helps the team evaluate prospects for each country and invest selectively for the fund.

Our Expertise

The fund is managed by Michael Gomez, head of PIMCO’s emerging markets portfolio management team with 23 years of experience, Yacov Arnopolin, an executive vice president in our London office with 18 years of experience, and Francesc Balcells, an executive vice president in our London office with 22 years of experience. The expert team draws on our time-tested investment process, which combines macroeconomic forecasting with rigorous bottom-up credit research. PIMCO has been managing EM portfolios since 1997.

PRIMARY BENCHMARK

JPMorgan Emerging Markets Bond Index (EMBI) Global

PRIMARY BENCHMARK DESCRIPTION

JPMorgan Emerging Markets Bond Index (EMBI) Global tracks total returns for United States Dollar denominated debt instruments issued by emerging market sovereign and quasi-sovereign entities: Brady bonds, loans, and Eurobonds. It is not possible to invest directly in an unmanaged index.

DIVIDEND FREQUENCY

Monthly with Daily Accrual

SHARE CLASS INCEPTION

04/27/2018

CUSIP

72202E443

RELATED

While we are constructive on the prospects for emerging markets in the year ahead, we think the real potential lies in individual country and thematic opportunities.

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Managers

Michael A. Gomez

Head of Emerging Markets Portfolio Management

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Yacov Arnopolin

Portfolio Manager, Emerging Markets

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Francesc Balcells

Portfolio Manager, Emerging Markets

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Yields & Distributions