Credit Strategies

Active credit solutions for active investors

Guiding Investors Through Decades of Credit Cycles

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Our Credit Range

GIS Diversified Income Fund

ISIN: IE00B1JC0H05

Overall Morningstar Rating™

Global Flexible Bond - EUR Hedged (1094 funds)

Benchmark

1/3 each - Bloomberg Barclays Global Aggregate Credit ex Emerging Markets, EUR Hedged; ICE BofAML BB‑B Rated Developed Markets High Yield Constrained Index, EUR Hedged; and JPMorgan EMBI Global, EUR Hedged

Average Annual
Returns (%) - Month End
1 yr 3 yr 5 yr 10 yr S.I.*
Fund 3.22 -4.47 -0.25 1.58 3.92
Benchmark 4.55 -3.03 0.34 1.72 3.59
Class Inception Date 14/02/2007
Estimated Gross Yield to Maturity
(as of 31/01/2024)
6.99%
Unified Fee  0.69%

GIS Global Investment Grade Credit Fund

ISIN: IE0032876397

Overall Morningstar Rating™

Global Corporate Bond - EUR Hedged (332 funds)

Benchmark

Bloomberg Barclays Global Aggregate Credit Index (EUR Hedged)

Average Annual
Returns (%) - Month End
1 yr 3 yr 5 yr 10 yr S.I.*
Fund 3.10 -4.59 -0.75 1.06 3.50
Benchmark 2.87 -4.32 -0.24 0.96 2.78
Class Inception Date 15/09/2003
Estimated Gross Yield to Maturity
(as of 31/01/2024)
5.50%
Unified Fee  0.49%

GIS Global High Yield Bond Fund

ISIN: IE00B2R34Y72

Overall Morningstar Rating™

Global High Yield Bond - EUR Hedged (630 funds)

Benchmark

ICE BofAML BB‑B Rated Developed Markets High Yield Constrained Index Hedged into EUR

Average Annual
Returns (%) - Month End
1 yr 3 yr 5 yr 10 yr S.I.*
Fund 7.37 -0.04 1.90 2.55 4.58
Benchmark 7.30 0.16 2.39 2.89 5.05
Class Inception Date 02/05/2008
Estimated Gross Yield to Maturity
(as of 31/01/2024)
7.28%
Unified Fee  0.55%
MORE CREDIT SOLUTIONS 

o Overall Morningstar Rating for PIMCO GIS Diversified Income Fund Institutional EUR (Hedged) Accumulation, as of 31/01/2024 rated against 1094 funds based on risk-adjusted returns. Category: Global Flexible Bond - EUR Hedged. Overall Morningstar Rating for PIMCO GIS Global Investment Grade Credit Fund Institutional EUR (Hedged) Accumulation, as of 31/01/2024 rated against 332 funds based on risk-adjusted returns. Category: Global Corporate Bond - EUR Hedged. Overall Morningstar Rating for PIMCO GIS Global High Yield Bond Fund Institutional EUR (Hedged) Accumulation, as of 31/01/2024 rated against 630 funds based on risk-adjusted returns. Category: Global High Yield Bond - EUR Hedged.

Credit Capabilities

PIMCO's Credit Expertise and Approach

As one of the largest investors in global credit markets, PIMCO’s forward-looking, 360-degree approach seeks to identify value across the credit spectrum before the market does.

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Scale and Breadth

Founded in 1971 with $1.78 trillion1 of assets under management, with $379.4 billion in dedicated credit strategies (as of 31/3/2020).

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Research and Analytics

125+ dedicated Credit portfolio managers and a pool of corporate and portfolio analysts with integrated fundamental research within credit analytics.

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Identifying Market Value

Focus on inefficient markets analyzing complex capital structures to actively identify opportunities and assets with upside potential.

Featured Solution

PIMCO GIS Diversified Income Fund

Overall Morningstar Rating™

Global Flexible Bond - EUR Hedged (1094 funds)

A one-stop credit solution for all market environments.

View Fund  

Why PIMCO’s Diversified Income Strategy?

Capture Opportunities

Markets Are Volatile

Heightened volatility has created long-term opportunities across the credit spectrum. These can be captured by an experienced and flexible manager with deep analytical and research capabilities.

Enhance Returns

Interest Rates Are Low

Credit can offer attractive yields in this protracted low-yield environment. Active management of tactical opportunities has helped us deliver consistent alpha over 15 years.

Reduce Risk

Uncertainty Is High

Diversification and caution are critical to reduce downside risk. Both approaches have been ingrained in this strategy right from the start.

What Role Can the Diversified Income Fund Play in Your Portfolio?

One-Stop Credit Allocation Solution

Diversification, fundamental credit research and PIMCO's macro expertise have helped us deliver alpha across credit asset classes. Diversified Income offers a highly flexible and balanced approach to global credit markets.

Access EM and HY Beta in a Diversified and High Quality Portfolio

Interested in Emerging Market and High Yield returns but worried about risk? We have a more diversified and higher quality approach, backed by a global credit research team and an overarching risk framework.

De-risk from equities, while maintaining compelling yields

Credit markets are big and varied enough to offer attractive returns with a bond-type risk profile. By combining Investment Grade with Emerging Market and High Yield credit, we have been able to deliver returns in line with riskier asset classes, but with lower volatility.

More Insights on Credit

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What Higher-for-Longer Rates Mean for Investors (video)
Capitalizing on Market Shifts in 2024
Economic and Market Commentary

Capitalizing on Market Shifts in 2024(video)

Capitalizing on Market Shifts in 2024

Watch Group CIO Dan Ivascyn discuss how investors can navigate 2024’s global market dynamics, emphasizing the importance of actively managed, high-quality bonds with appealing yields and valuations given today’s uncertain environment.

Learn more about our 2024 Economic Outlook.

2024 European Credit Outlook

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Disclosures

Performance quoted represents past performance. Past performance is not a guarantee or a reliable indicator of future results. Current performance may be lower or higher than performance shown. Investment return and the principal value of an investment will fluctuate. Shares may be worth more or less than original cost when redeemed. Performance data current to the most recent month-end is available by calling +44 203 3640 1552. A rating is not a recommendation to buy, sell or hold a fund. © 2021 Morningstar, Inc. All Rights Reserved. The information contained herein: (1) is proprietary to Morningstar; (2) may not be copied or distributed; and (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. For more detailed information about Morningstar Rating, including its methodology, please go to: The Morningstar Rating Methodology. For full details of the investment objective and investment policy of the fund described on this page, please refer to the prospectus and key investor information document for the fund available on the Fund Literature page of this website. A rating is not a recommendation to buy, sell or hold a fund. Past performance is not an indicator of future results.

In an environment where interest rates may trend upward, rising rates will negatively impact most bond funds, and fixed income securities held by a fund are likely to decrease in value. Bond funds and individual bonds with a longer duration (a measure of the expected life of a security) tend to be more sensitive to changes in interest rates, usually making them more volatile than securities with shorter durations.

The Fund invests in securities of issuers based in countries with developing (emerging) economies. Investing in emerging market securities imposes greater risks including smaller market capitalization of securities markets which can experience illiquidity, price volatility, restrictions, repatriation of investment income and capital, in addition to currency fluctuations, and political or economic uncertainty. The Fund may invest in non-US securities, which may entail greater risk due to non-US economic and political developments and may be enhanced when investing in emerging markets. This Fund may use derivative instruments for efficient portfolio management. Use of these instruments may involve certain costs and risks such as liquidity risk, interest rate risk, market risk, credit risk, management risk and the risk that a fund could not close out a position when it would be most advantageous to do so. Portfolios investing in derivatives could lose more than the principal amount invested. The Fund may invest in high-yield, lower-rated securities, which generally involves greater risk to principal than investment in higher-rated securities. The credit quality of the investment in the portfolio does not apply to the stability or safety of the Fund. The Fund offers different share classes, which are subject to different fees and expenses (which may affect performance), have different minimum investment requirements and are entitled to different services.

Distributed by PIMCO Europe Ltd, 11 Baker Street, London, W1U 3AH, England.

No part of this publication may be reproduced in any form, or referred to in any other publication, without express written permission. Copyright 2021, PIMCO GIS FUNDS

PIMCO Funds: Global Investors Series plc is an umbrella type open-ended investment company with variable capital and is incorporated with limited liability under the laws of Ireland with registered number 276928. The information is not for use within any country or with respect to any person(s) where such use could constitute a violation of the applicable law. The information contained in this communication is intended to supplement information contained in the prospectus for this Fund and must be read in conjunction therewith. Investors should consider the investment objectives, risks, charges and expenses of these Funds carefully before investing. This and other information is contained in the Fund's prospectus. Please read the prospectus carefully before you invest or send money. Past performance is not a guarantee or a reliable indicator of future results and no guarantee is being made that similar returns will be achieved in the future. Returns are net of fees and other expenses and include reinvestment of dividends. The performance data represents past performance and investment return and principal value will fluctuate so that the PIMCO GIS Funds shares, when redeemed, may be worth more or less than the original cost. Potential differences in performance figures are due to rounding. The Fund may invest in non-U.S. or non-Eurozone securities which involves potentially higher risks including non-U.S. or non-Euro currency fluctuations and political or economic uncertainty. For informational purposes only. Please note that not all Funds are registered for sale in every jurisdiction. Please contact PIMCO for more information. For additional information and/or a copy of the Fund's prospectus, please contact the Administrator: State Street Fund Services (Ireland) Limited and State Street Custodial Services (Ireland) Limited (collectively “State Street”), Telephone +353 1 7768000, Fax +353 1 7768491. © 2021.

Benchmark - Unless otherwise stated in the prospectus or in the relevant key investor information document, the Fund referenced in this material is not managed against a particular benchmark or index, and any reference to a particular benchmark or index in this material is made solely for risk or performance comparison purposes.

Additional information - This material may contain additional information, not explicit in the prospectus, on how the Fund or strategy is currently managed. Such information is current as at the date of the presentation and may be subject to change without notice.

Investment Restrictions - In accordance with the UCITS regulations and subject to any investment restrictions outlined in the Fund’s prospectus, the Fund may invest over 35% of net assets in different transferable securities and money market instruments issued or guaranteed by any of the following: OECD Governments (provided the relevant issues are investment grade), Government of Singapore, European Investment Bank, European Bank for Reconstruction and Development, International Finance Corporation, International Monetary Fund, Euratom, The Asian Development Bank, European Central Bank, Council of Europe, Eurofima, African Development Bank, International Bank for Reconstruction and Development (The World Bank), The Inter American Development Bank, European Union, Federal National Mortgage Association (Fannie Mae), Federal Home Loan Mortgage Corporation (Freddie Mac), Government National Mortgage Association (Ginnie Mae), Student Loan Marketing Association (Sallie Mae), Federal Home Loan Bank, Federal Farm Credit Bank, Tennessee Valley Authority, Straight-A Funding LLC. Unless otherwise stated in the prospectus or in the relevant key investor information document, the Fund referenced in this material is not managed against a particular benchmark or index, and any reference to a particular benchmark or index in this material is made solely for risk or performance comparison purposes. This material may contain additional information, not explicit in the prospectus, on how the Fund or strategy is currently managed. Such information is current as at the date of the presentation and may be subject to change without notice.

RISK 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. Commodities contain heightened risk, including market, political, regulatory and natural conditions, and may not be suitable for all investors. Currency rates may fluctuate significantly over short periods of time and may reduce the returns of a portfolio. 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. Equities may decline in value due to both real and perceived general market, economic and industry conditions. 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. Sovereign securities are generally backed by the issuing government. Obligations of U.S. government agencies and authorities are supported by varying degrees, but are generally not backed by the full faith of the U.S. government. Portfolios that invest in such securities are not guaranteed and will fluctuate in value. 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. Mortgage- and asset-backed securities may be sensitive to changes in interest rates, subject to early repayment risk, and while generally supported by a government, government-agency or private guarantor, there is no assurance that the guarantor will meet its obligations. Income from municipal bonds may be subject to state and local taxes and at times the alternative minimum tax. Swaps are a type of derivative; swaps are increasingly subject to central clearing and exchange-trading. Swaps that are not centrally cleared and exchange-traded may be less liquid than exchange-traded instruments. Inflation-linked bonds (ILBs) issued by a government are fixed income securities whose principal value is periodically adjusted according to the rate of inflation; ILBs decline in value when real interest rates rise. Treasury Inflation-Protected Securities (TIPS) are ILBs issued by the U.S. government. Certain U.S. government securities are backed by the full faith of the government. Obligations of U.S. government agencies and authorities are supported by varying degrees but are generally not backed by the full faith of the U.S. government. Portfolios that invest in such securities are not guaranteed and will fluctuate in value.