Emerging Local Bond Fund


Updated Oct 2, 2015


    Fixed Income
    $6,015 MM
    (as of 09/30/2015)
    $6,015 MM
    (as of 09/30/2015)
    Fixed Income


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


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

PIMCO Emerging Local Bond Fund is managed by Michael Gomez, co-head of PIMCO’s EM team and a professional with nearly two decades of investment experience. The team, strategically located around the world, 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.


JPMorgan Government Bond Index-Emerging Markets Global Diversified Index (Unhedged)


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.


Monthly with Daily Accrual






Michael A. Gomez

Head of Emerging Markets Portfolio Management

View Profile

Yields & Distributions

Historical Prices & Distributions

Distribution Yield (At NAV)1 as of 8/31/2015 4.89%
30 - Day SEC Yield2 as of 8/31/2015 4.73%
30 - Day SEC Yield2 as of 10/2/2015 -
Latest Dividend Distribution ($ Share)3 as of 9/30/2015 $0.028908995
Dividend Distribution (YTD)4 as of 9/30/2015 $0.279981907
Yields & Distributions Footnotes & Disclosures


1The distribution yield for monthly paying Funds is calculated by annualizing actual dividends distributed for the monthly period ended on the date shown and dividing by the net asset value on the last business day for the same period. The distribution yield for quarterly paying Funds is calculated by taking the average of the prior four quarterly distribution yields. The quarterly distribution yields are calculated by annualizing actual dividends distributed for the quarterly period ended on the most recent quarterly distribution date and dividing by the net asset value for the same date. The distribution yield for annual paying Funds is calculated by taking the annual distribution divided by the Fund’s net asset value on ex-date. The yield is annualized if the Fund incepted less than a year ago. The yield does not include long- or short-term capital gains distributions.
2The 30-Day SEC yield is an annualized yield based on the most recent 30 day period.
3Data does not include special cash dividends.
4Data is based on distributions since the most recent calendar year end and does not include special cash dividends.
Unless stated, the Fund does not have an unsubsidized yield.

Fees & Expenses

Total Annual Operating Expenses 0.90%

Prices & Performance

Daily Statistics

All data as of 10/2/2015

NAV $6.85 One Day Return 1.22%
Daily Change $0.08 Daily YTD Return -14.59%
Click here to view Historical Prices
  • Average Annual Returns
  • Cumulative Returns

All data as of

  • Daily
  • Month End
  • Quarter End

All data as of

  • Daily
  • Month End
  • Quarter End
Performance quoted represents past performance and is not a guarantee or a reliable indicator of future results. Investment return and the principal value of an investment will fluctuate. Shares may be worth more or less than original cost when redeemed. Current performance may be lower or higher than average annual returns shown. Performance quoted does not reflect any sales charges, if applicable, and performance would be lower if it did.

Calendar Year Returns %

All data as of

Growth of $10,000 (hypothetical)

Since inception 12/29/2006 to 8/31/2015 = $12,651

Morningstar and Lipper

  • Morningstar Ratings
  • Lipper Rankings
Prices & Performance Footnotes & Disclosures


Performance figures presented reflect the total return performance after fees and reflect changes in share price and reinvestment of dividend and capital gain distributions on the payable date. All periods longer than one year are annualized.
Total return performance does not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. The minimum initial investment for Institutional class shares is $1 million; however, it may be modified for certain financial intermediaries who submit trades on behalf of eligible investors.
Daily YTD return is from the most recent calendar year end.
Growth of $10,000 is calculated at NAV and assumes that all dividend and capital gain distributions were reinvested. It does not take into account sales charges or the effect of taxes. Results are not indicative of future performance.
Past performance is not a guarantee or a reliable indicator of future results. For funds with at least a 3-yr history, Morningstar calculates a Morningstar Rating based on a risk-adjusted return measure that accounts for variation in a fund’s monthly performance (including the effects of sales charges, loads and redemption fees) with an emphasis on downward variations and consistent performance. The top 10% of funds in each category receive 5 stars, the next 22.5% receive 4 stars, the next 35% receive 3 stars, the next 22.5% receive 2 stars and the bottom 10% receive 1 star. The Overall Morningstar Rating is a weighted average of the performance figures for its 3-, 5- and 10-yr (if applicable) Morningstar Rating metrics. Morningstar, Inc.® 2015. All rights reserved. The information contained herein; (1) is proprietary to Morningstar and/or its affiliates; (2) may not be copied or distributed; (3) is not warranted to be accurate, complete or timely. Neither Morningstar nor its content providers are responsible for any damages or losses arising from any use of this information. Past performance is no guarantee of future results. Hollow stars represent a class of shares with inception dates that is different than the inception date of the fund. For the period prior to the inception date of these shares, performance information is based on the performance of the fund’s Institutional Class shares, adjusted to reflect the actual distribution and/or service (12b-1) fees and other expenses paid by the newer share class.
The Lipper Category returns and rankings are calculated by Lipper Inc., a Reuters Company, which is a nationally recognized organization that compares the performance of mutual funds with similar investment objectives. The Category returns represent the average performance of included funds, while rankings compare an individual fund's returns to those of the other funds in its category. Both are based on total return performance, with capital gains and dividends reinvested, with annual operating expenses deducted, but without including front- or back-end sales charges. Rankings begin with the actual share class inception. Rankings are relative to a peer group and do not necessarily mean that the fund had high total returns.

Portfolio Composition

All data as of unless otherwise stated

Top Currency Exposure Market Value %

Poland 13.53
Mexico 12.43
United States 10.59
South Africa 9.67
Indonesia 9.14
Turkey 8.91
Brazil 8.72
Malaysia 8.60
Thailand 6.23
Colombia 6.19
Russia 4.33
Hungary 1.98
Taiwan -1.85
Romania 1.35
Peru 1.30
Euro Currency -1.20
Singapore -1.08
India 1.02
Philippines 0.49
South Korea -0.40
Chile 0.13
Japan -0.08
China -0.01
United Kingdom 0.01
Argentina 0.00
Australia 0.00
Canada 0.00
Czech Republic 0.00
Egypt 0.00
Hong Kong 0.00
Israel 0.00
Saudi Arabia 0.00
Uruguay 0.00
Nigeria 0.00
United Arab Emirates 0.00
Kuwait 0.00
Liabilities 0.00

Risk Characteristics
(Trailing 3 Years)

Standard Deviation 10.60
Sharpe Ratio5 -0.72
Information Ratio6 -0.66
Tracking Error7 1.33

Maturity %

0-1 yrs 15.96
1-3 yrs 16.29
3-5 yrs 20.59
5-10 yrs 30.08
10-20 yrs 14.53
20+ yrs 2.54
Effective Maturity (yrs) 6.42

Duration in Years

Effective Duration (yrs) 4.48
Portfolio Composition Footnotes & Disclosures


5The Sharpe Ratio measures the risk-adjusted performance. The risk-free rate is subtracted from the rate of return for a portfolio and the result is divided by the standard deviation of the portfolio returns.
6The information ratio is defined as the portfolio's excess return per unit of risk, or tracking error. For example, an information ratio of 1 means that a portfolio manager generates 100 basis points, or one percent of excess return for every 100 basis points of risk taken.
7Tracking error, a measure of risk, is defined as the standard deviation of the portfolio's excess return vs. the benchmark expressed in percent.
Portfolio information in the charts is based on the fund's net assets. These percentages may differ from those used for the fund's compliance calculations, including the fund's prospectus, regulatory, and other investment limitations and policies, which may be based on total assets of the fund or other measurements, may include or exclude various categories of investments from those covered in the portfolio allocation categories shown in this report, and may be based on different classifications and measurements of the fund’s investments and other criteria.
References to specific sectors, securities or issuers are for illustrative purposes only. All holdings are subject to change daily. All share classes have the same portfolio but different expenses.
Duration is a measure of a portfolio’s price sensitivity expressed in years. Effective duration is the duration for a bond with an embedded option when the value is calculated to include the expected change in cash flow caused by the option as interest rates change.


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Investors should consider the investment objectives, risks, charges and expenses of the funds carefully before investing. This and other information are contained in the fund’s prospectus and summary prospectus, if available, which may be obtained by contacting your investment professional or PIMCO representative.  Click here for a complete list of the PIMCO Funds prospectuses and summary prospectuses. Please read them carefully before you invest or send money.
A word about risk:

Investing in foreign denominated and/or domiciled securities may involve heightened risk due to currency fluctuations, and economic and political risks, which may be enhanced in emerging markets. Investing in the bond market is subject to risks, including market, interest rate, issuer, credit, inflation risk, and liquidity risk. The value of most bonds and bond strategies are impacted by changes in interest rates. Bonds and bond strategies with longer durations tend to be more sensitive and volatile than those with shorter durations; bond prices generally fall as interest rates rise, and the current low interest rate environment increases this risk. Current reductions in bond counterparty capacity may contribute to decreased market liquidity and increased price volatility. Bond investments may be worth more or less than the original cost when redeemed. Mortgage and asset-backed securities may be sensitive to changes in interest rates, subject to early repayment risk, and their value may fluctuate in response to the market’s perception of issuer creditworthiness; while generally supported by some form of government or private guarantee there is no assurance that private guarantors will meet their obligations. High-yield, lower-rated, securities involve greater risk than higher-rated securities; portfolios that invest in them may be subject to greater levels of credit and liquidity risk than portfolios that do not. Equities may decline in value due to both real and perceived general market, economic, and industry conditions. Derivatives may involve certain costs and risks such as liquidity, interest rate, market, credit, management and the risk that a position could not be closed when most advantageous. Investing in derivatives could lose more than the amount invested. The Fund is non-diversified, which means that it may invest its assets in a smaller number of issuers than a diversified fund.
This material has been distributed for informational purposes only and should not be considered as investment advice or a recommendation of any particular security, strategy or investment product. No part of this material may be reproduced in any form, or referred to in any other publication, without express written permission.
PIMCO Investments LLC, distributor, 1633 Broadway, New York, NY 10019, is a company of PIMCO.