Emerging Markets Local Currency and Bond Fund

PELNX

Updated November 12, 2019

Objective

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

Primary Portfolio

Fixed income securities denominated in currencies of non-U.S. countries

Overview

Fund Overview

Return potential from EM local currency bonds

Tap into opportunities for higher yields and currency appreciation through an actively managed portfolio of local currency-denominated emerging markets (EM) debt.

Why Invest In This Fund

Attractive risk-adjusted return potential

The fund invests primarily in local currency emerging markets (EM) government bonds, providing investors with opportunities to benefit from higher yields, currency movements and price appreciation in these fast-growing economies. PIMCO’s active management aims to enhance return potential while moderating the risks of EM.

Enhanced portfolio diversification

EM local currency instruments have had 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 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 Pramol Dhawan, a managing director and co-chair of the emerging markets portfolio committee with 15 years of experience and Ismael Orenstein, a senior vice president in our Newport Beach office with 13 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 Government Bond Index-Emerging Markets Global Diversified Index (Unhedged)

PRIMARY 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.

DIVIDEND FREQUENCY

Monthly with Daily Accrual

SHARE CLASS INCEPTION

04/27/2018

CUSIP

72202E450

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Managers

Ismael Orenstein began managing the fund on 2 May 2019.

Pramol Dhawan

Head of Emerging Markets Portfolio Management

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Ismael Orenstein

Portfolio Manager, Emerging Markets

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Yields & Distributions