Are you looking for information on the fondo di Pimco GIS Dynamic Multi-Asset Fund?
If you’ve heard of this fund and are looking for its features, then you’ve come to the right place!
In fact, in this article we will analyze the fund in question, then we will come across its characteristics, costs, risks, and finally we will try to understand its advantages and disadvantages.
Subsequently, I will also try to provide you with my opinions on the tool in question, and we will try to make a reasoning to understand if the tool itself can be right for you.
The bottom GIS Dynamic Multi-Asset Fund is an actively managed fund that combines the macroeconomic expertise of the management company that makes it available, i.e. Pimco, with a flexible tactical approach to identify opportunities and risks in different market scenarios.
If you want to know more, continue reading!
This article talks about:
Who is Pimco?
Pimco is a management company that was founded in 1971 in California, specifically in Newport Beach.
We are talking about a solid and reliable company, as well as a leading investment management company, which specializes in bond investments.
Pimco believes in an active approach, and believes that it is the right way to invest and manage clients’ assets, precisely in the bond market.
Pimco’s investment process has indeed proved its worth effectivenessand it has done so in pretty much just about every market contexts.
The company’s numbers are important: it has 3,050 employees who operate in the main financial centers around the world, has over 270 managers who have an average experience of 16 years.
The company also has 17 global offices in America, Europe and Asia.
In 2017 Pimco launched a global ESG platformwhich has made it the current leader in ESG engagement in equities.
In 2018, Pimco and the Center for Decision Research at the University of Chicago Booth School of Business announced their groundbreaking collaboration in cutting-edge research in the behavioral sciences.
Multi-Asset fund methodology
As we mentioned earlier the Multi Asset combines Pimco’s macroeconomic expertise with a flexible tactical approach.
How could this methodology help you in the current market environment?
Mainly in three ways:
- Offering alternatives: market uncertainty is great, so being flexible allows you to reduce risks and seize opportunities;
- Increasing the return potential: opportunities change, exposure to risk therefore allows for improved results;
- Controlling risk: Risk is not static, and therefore a flexible and defensive approach may be important to achieve smooth returns.
Fund Profile GIS Dynamic Multi-Asset Fund
At this point we can begin with the detailed analysis of the fund.
GIS Dynamic Multi-Asset Fund is a broad multi-asset investment strategy that applies Pimco’s macro and relative value analysis to liquid markets.
The strategy invests in different global asset classes, such as equities, credit, interest rates, currencies and real assets.
The bottom is a management activeand is a dynamic, holistic investment portfolio that aims to offer investors attractive risk-adjusted returns over a full market cycle.
The aim of the fund is to maximize total investment return, with a combination of income and capital growth, while maintaining a prudent management line.
The fund will invest in shares of companies, fixed income securities issued by companies or governments worldwide and cash.
In addition, the fund will invest up to 60% of its net assets in shares of companies or similar securities.
Fixed income securities can be of two categories:
- Investment category: safer investments;
- Speculative category: riskier investments that however distribute a higher income.
The fund may invest up to 15% of its total assets in instruments that are related to commodities, and may also invest in instruments related to real estate assets, such as shares of listed companies, real estate investment trusts ( REITs) or derivatives based on real estate indexes.
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Its Benchmark
As we said before, the fund has one active management stylei.e. it is different from the passive management typical of ETFs that replicate a reference benchmark.
L’ICE BofA SONIA Overnight Rate Index replicates the performance of a synthetic asset that pays SONIA at an indicated maturity. The index is based on the hypothetical purchase at par of a synthetic instrument that has exactly its stated maturity and with a coupon equal to that day’s fixed rate. It is assumed that such an issue is sold on the next business day (at a yield equal to the current day’s fixed rate) and that the proceeds are reinvested in a new instrument.
Holdings and Allocations
The fund was launched in February 2016so it’s a fairly mature fund.
The reference currency of the fund is the euro, as is the currency of the share class.
The policy regarding the distribution of proceeds is ad accumulationi.e. dividends are not distributed to investors on a regular basis, but instead are reinvested in the fund.
L’sector allocation sees US equities, ex-US developed country equities, also emerging market securities, US bonds and other net positions in short-term financial instruments.
Among the top 10 percentage positions in the fund are Evergrande Marine corp, Taiwan Semiconductor and Samsung.
The top three countries by currency of issue are Australia, Canada and Germany.
The effective duration is 1.52 years.
Risk profile
Now let’s move on to the risk profile part.
The fund has a medium risk, equal to 4 on a scale from 1 to 7.
Il risk it is based on historical data and may not be a reliable indication of the future. This risk indicator is based on the volatility of the fund’s return over the last 5 years.
The fund also bears investment-related risks, such as commodity risk, credit and default risk, as well as currency risk.
The value of the shares is in fact subject to fluctuations up and down, and the capital invested in the fund may therefore be at risk.
In addition, the fund may invest in non-US and non-Eurozone securities, which may therefore involve potentially higher risks, such as currency fluctuations and risks arising from political and economic developments, which may be higher in the case of investment in emerging.
Costs
We have reached the part that usually interests investors the most, as costs directly impact our returns. It is therefore important to analyze them well and try to understand if they can be sustainable in investment or not.
This fund has the following cost items:
- Entry fee: none;
- Exit charges: none.
As regards the expenses withdrawn from the fund in a year, also called current expenseswe are precisely at 0.85% per year.
Performance fees are not present.
I yields
Finally, let’s move on to the analysis of historical returns. First of all, a clarification that is always lawful and a duty to make, and that you can also find on the KIIDs of each financial instrument you are going to choose: past forecasts on returns are in no way indicative of future ones, but only serve to be able to offer an overview and to get an idea of the fund’s performance.
If we focus on the yield graph, we can see that the fund over the years, starting from 2017, has always done better than the benchmark, apart from 2018 when the fund had negative returns equal to -6.5%. a much higher value than the performance of the benchmark.
As far as performance is concerned, the benchmark has remained rather constant over the years, while the fund has always outperformed the benchmark; in this way we understand that the fund and the benchmark are not directly correlated as the performance of one does not correspond to the performance of the other.
Opinions of Affari Miei on the GIS Dynamic Multi-Asset Fund
We have finished our analysis, so at the moment we can start reasoning together about the investment, and try to understand if it could be an investment and a suitable tool for you or not.
The fund is actively managed, so we are in that world of mutual funds, which differ from ETFs which, on the other hand, are passively managed and limit themselves to replicating a reference index.
The fund also, as we have seen, invests in various financial instruments, as we have both share classes and bonds.
Precisely for this reason the risk profile is medium and equal to 4: so what can we say in relation to risk?
It is a medium and bearable risk, i.e. if you decide to invest in this fund you could be relatively calm as you would not risk too much. Surely the returns may not be exciting, but it always depends on what you are looking for.
What do I think? I obviously cannot give you an unequivocal answer to the question of whether or not it is worth investing in this fund, also because I don’t know your personal and financial situation thoroughly, and I don’t know what you are looking for from your investments, whether high returns or a fairly safe investment in order to keep your capital safe.
However, I want to invite you to dwell on the part of costs, as it seems to me that this fund has quite high costs, especially since the annual costs are equal to 1.85%. Attention since ithe cost is considerable, and it could inevitably lower your returns even before you start.
If you have read my other content you may know that for my investments I prefer to move towards other tools, rather than mutual funds: these are ETFs. They are passive management instruments that replicate a benchmark and offer you the possibility of investing in shares, or bonds, or even commodities, at management costs that are much lower than this instrument.
My personal advice is always to sit down, reflect and make one of the best decisions for you: educate yourself about investment and finance, acquire the skills that will allow you to then go on to invest with awareness in the financial markets and above all to know how your money will be managed, which, on the other hand, does not happen if you rely on active management tools as the manager invests in certain tools without you knowing exactly what happens with your money.
Furthermore, before saying goodbye, allow me to leave you some resources that could prove useful for you, and to begin an investment planning and a path that could be the starting point for your financial management.
I wish you good continuation on Affari Miei.
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