Pimco EQT Australian Bond

This week Money asks Morningstar where to invest and their pick is the PIMCO EQT Australian Bond (ETL0015AU).

Objective

The fund aims to achieve maximum total return by investing in fixed interest securities predominantly denominated in Australian or New Zealand currencies and to seek to preserve capital through prudent investment management.

Independent commentary

PIMCO Australian Bond remains our favourite core Australian bond strategy. Judging when and how to take risk can add value and PIMCO's team is more than up to the task. The vehicle is domestically focused, and can also be invested up to 30% offshore, capitalising on PIMCO's global intelligence and sector allocation skills.

Robert Mead has led the Australian effort since 2007, supported by the firm's extensive global network and a modestly-sized but very experienced Sydney team. The firm's investment committee is larger and more experienced than nearly all rival teams, and the Australian team continues to produce industry-leading research and resulting strong returns. PIMCO Australian Bond has the ingredients that make it our number one pick for Australian bond exposure.

Key fund data

Management fee: 0.50%pa Morningstar analyst rating: Gold Minimum initial investment: $20,000 Role in portfolio: Core

Growth of $10,000 for PIMCO EQT Australian Bond, peer group and market indices. Source: Morningstar

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