PIMCO International Bond Fund (U.S. Dollar-Hedged) Administrative Class (PFRAX)

Overview

This fund is designed for investors seeking diversified international exposure to fixed income markets. Its primary goal is to invest a minimum of 80% of its assets in fixed income instruments, focusing on those that have economic ties to at least three countries outside the United States. The strategy emphasizes investment grade debt securities, allowing for up to 10% of its total assets to be allocated to high-yield junk bonds, contingent on ratings by Moody’s, S&P, or Fitch. Alternatively, for unrated securities, analysis and determination by PIMCO will guide investment decisions. Notably, this fund operates with a non-diversified investment approach, concentrating its investments more narrowly than diversified funds.

Products and Services

• Fixed Income Instruments

  Investments are primarily channeled into fixed income instruments linked to a variety of non-U.S. countries, seeking to provide investors with exposure to international bond markets. These instruments may include bonds, debt securities, and other similar financial vehicles that offer regular return in the form of interest, providing a steady income stream and a level of safety to the investment portfolio.

• Investment Grade Debt Securities

  The fund focuses primarily on investing in investment-grade debt securities. These are bonds rated at a certain level of creditworthiness by recognized rating agencies, implying they carry lower risk compared to lower-rated securities. By prioritizing investment-grade securities, the fund aims to balance the pursuit of returns with the management of risk, making it suitable for investors looking for relatively safer international bond exposure.

• Junk Bonds Investment

  Up to 10% of total assets may be invested in junk bonds, also known as high-yield bonds, which are rated lower in terms of credit quality. Despite the higher risk associated with these investments, they offer the potential for greater returns. Such investments are either rated by Moody's, S&P, or Fitch, or assessed internally by PIMCO if unrated, ensuring a methodical approach to high-yield investing while maintaining a strict risk management framework.