-
PIMCO Funds: Global Investors Series plc
SemiannualReport30 June 2018
An open-ended investment company with variable capital and
segregatedliability between Funds incorporated with limited
liability under theCompanies Act 2014 with registered number 276928
and authorised bythe Central Bank of Ireland as an undertaking for
collective investment intransferable securities pursuant to the
European Communities(Undertakings for Collective Investment in
Transferable Securities[“UCITS”]) Regulations, 2011 (as
amended).
-
PIMCO Funds: Global Investors Series plc Semiannual Report 30
June 2018
GENERAL CHARACTERISTICS
Fund Type:UCITS
Number of Funds offered in the Company:54 Funds
Classes of Shares offered in the Company*:Institutional
ClassInstitutional AUD (Hedged) ClassInstitutional BRL (Hedged)
ClassInstitutional CAD (Hedged) ClassInstitutional CHF (Hedged)
ClassInstitutional CHF (Partially Hedged) ClassInstitutional CHF
(Unhedged) ClassInstitutional CZK (Hedged) ClassInstitutional DKK
(Partially Hedged) ClassInstitutional EUR (Currency Exposure)
ClassInstitutional EUR (Hedged) ClassInstitutional EUR (Partially
Hedged) ClassInstitutional EUR (Unhedged) ClassInstitutional GBP
(Currency Exposure) ClassInstitutional GBP (Hedged)
ClassInstitutional GBP (Partially Hedged) ClassInstitutional GBP
(Unhedged) ClassInstitutional HKD (Unhedged) ClassInstitutional HUF
(Hedged) ClassInstitutional ILS (Hedged) ClassInstitutional JPY
(Hedged) ClassInstitutional NOK (Hedged) ClassInstitutional NOK
(Partially Hedged) ClassInstitutional NZD (Hedged)
ClassInstitutional PLN (Hedged) ClassInstitutional SEK (Hedged)
ClassInstitutional SGD (Hedged) ClassInstitutional USD (Currency
Exposure) ClassInstitutional USD (Hedged) ClassInstitutional USD
(Unhedged) ClassInvestor ClassInvestor AUD (Hedged) ClassInvestor
CAD (Hedged) ClassInvestor CHF (Hedged) ClassInvestor CHF
(Unhedged) ClassInvestor CNH (Hedged) ClassInvestor EUR (Hedged)
ClassInvestor EUR (Unhedged) ClassInvestor GBP (Hedged)
ClassInvestor NOK (Hedged) ClassInvestor RMB (Hedged) ClassInvestor
SEK (Hedged) ClassInvestor SGD (Hedged) ClassInvestor USD (Currency
Exposure) ClassAdministrative ClassAdministrative AUD (Hedged)
ClassAdministrative CHF (Hedged) ClassAdministrative EUR (Hedged)
ClassAdministrative GBP (Hedged) ClassAdministrative HKD (Unhedged)
ClassAdministrative SEK (Hedged) ClassAdministrative SGD (Hedged)
ClassClass EClass E AUD (Hedged)Class E CHF (Hedged)Class E CNH
(Hedged)Class E EUR (Hedged)Class E EUR (Partially Hedged)Class E
EUR (Unhedged)Class E GBP (Hedged)Class E HKD (Unhedged)Class E JPY
(Hedged)Class E SGD (Hedged)Class E USD (Currency Exposure)Class E
USD (Hedged)Class E USD (Unhedged)Class G InstitutionalClass G
Institutional EUR (Hedged)
Class G Institutional EUR (Partially Hedged)Class G
Institutional EUR (Unhedged)Class G Retail EUR (Currency
Exposure)Class G Retail EUR (Hedged)Class G Retail EUR
(Unhedged)Class H InstitutionalClass H Institutional EUR
(Hedged)Class H Institutional USD (Hedged)Class M RetailClass M
Retail AUD (Hedged)Class M Retail HKD (Unhedged)Class M Retail SGD
(Hedged)Class RClass R EUR (Hedged)Class R GBP (Hedged)Class R GBP
(Unhedged)Class R USD (Currency Exposure)Class TClass T EUR
(Hedged)Class T EUR (Unhedged)Class T USD (Unhedged)Class ZClass Z
AUD (Hedged)Class Z EUR (Hedged)Class Z EUR (Unhedged)Class Z GBP
(Hedged)
Types of Shares:Within each Class, subject to the relevant
Supplement, the Companymay issue either or all Income Shares
(Shares which distribute income),Accumulation Shares (Shares which
accumulate income) and Income IIShares (Shares which seek to
provide an enhanced yield). Within theInvestor Classes, the Income
Fund and the Low Duration Income Fundmay also issue Income A Shares
(shares which distribute income on anannual basis).
Net Assets (Amounts in thousands):USD 159,406,724
Minimum Holding:The Institutional, Investor, Administrative,
Class G Institutional andClass H Institutional Classes require a
minimum holding of USD500,000or its equivalent in the relevant
Share Class currency. Class E, Class GRetail, Class M Retail, Class
R and Class T Shares require a minimumholding of USD1,000 or its
equivalent in the relevant Share Classcurrency as appropriate.
Class Z Shares require a minimum holding ofUSD20 million or its
equivalent in the relevant Share Class currency.Pacific Investment
Management Company LLC, at sole discretion, isauthorised to waive
the minimum initial subscription, and minimumholding requirements
as set forth in the current Prospectus.
Dealing Day:In relation to a Fund such day or days as shall be
specified in the relevantSupplement for that Fund provided that in
any event there will be oneDealing Day per fortnight. The Directors
have delegated to PIMCO theauthority to change the frequency of
Dealing Days per Fund. Any change inthe frequency of Dealing Days
must receive the prior approval of theDepositary and will be
notified to Shareholders of the affected Fund(s)in advance.
Notwithstanding the foregoing, it will not be a Dealing Day for
any Fundwhere either as a result of public holidays or market/stock
exchangeclosures in any jurisdiction, it makes it difficult (i) to
administer a Fundor (ii) value a portion of a Fund’s assets. For
further details on proposedFund closures throughout the year,
Shareholders and prospectiveinvestors should contact the
Administrator or consult the Funds HolidayCalendar (a copy of which
is also available from the Administrator).
Funds’ Functional Currency:USD ($), except the UK Corporate Bond
Fund and UK Long TermCorporate Bond Fund which are denominated in
British Pound Sterling(£), and the Dynamic Multi-Asset Fund, Euro
Bond Fund, Euro CreditFund, Euro Income Bond Fund, Euro Long
Average Duration Fund, EuroLow Duration Fund, Euro Short-Term Fund
and PIMCO RAEFundamental Europe Fund which are denominated in Euro
(€).
* Each Fund does not offer all of the Classes of Shares
listed.
-
PIMCO Funds: Global Investors Series plc Semiannual Report 30
June 2018
GENERAL CHARACTERISTICS (Cont.)
Hong Kong Authorisation:The following Funds are not authorised
in Hong Kong, and arenot available to Hong Kong residents:
PIMCO Capital Securities FundPIMCO Credit Absolute Return
FundDynamic Multi-Asset FundDiversified Income Duration Hedged
FundEmerging Markets 2018 FundEmerging Markets Corporate Bond
FundEuro Bond FundEuro Credit FundEuro Income Bond FundEuro Long
Average Duration FundEuro Low Duration FundEuro Short-Term
FundGlobal Advantage FundGlobal Advantage Real Return FundGlobal
Bond ESG FundGlobal Bond Ex-US FundGlobal Libor Plus Bond
FundGlobal Low Duration Real Return FundGlobal Multi-Asset
FundInflation Strategy FundLow Duration Global Investment Grade
Credit FundPIMCO MLP & Energy Infrastructure FundMortgage
Opportunities FundPIMCO RAE Fundamental Emerging Markets FundPIMCO
RAE Fundamental Europe FundPIMCO RAE Fundamental Global Developed
FundPIMCO RAE Fundamental PLUS Emerging Markets FundPIMCO RAE
Fundamental PLUS Global Developed FundPIMCO RAE Fundamental PLUS US
FundPIMCO RAE Fundamental US FundSocially Responsible Emerging
Markets Bond FundStocksPLUS™ FundStrategic Income FundPIMCO TRENDS
Managed Futures Strategy FundUK Corporate Bond FundUK Long Term
Corporate Bond FundUK Low Duration FundUnconstrained Bond FundUS
Investment Grade Corporate Bond FundUS Short-Term Fund
Singapore AuthorisationThe following Funds are not recognised by
the Monetary Authorityof Singapore under the Securities and Futures
Act, Chapter 289 ofSingapore, and hence are not available to the
retail publicin Singapore:
PIMCO Capital Securities FundPIMCO Credit Absolute Return
FundDynamic Multi-Asset FundEmerging Markets 2018 FundEuro Credit
FundEuro Income Bond FundEuro Long Average Duration FundEuro Low
Duration FundEuro Short-Term FundGlobal Bond ESG FundGlobal Libor
Plus Bond FundGlobal Low Duration Real Return FundInflation
Strategy FundPIMCO MLP & Energy Infrastructure FundMortgage
Opportunities FundPIMCO RAE Fundamental Emerging Markets FundPIMCO
RAE Fundamental Europe FundPIMCO RAE Fundamental Global Developed
FundPIMCO RAE Fundamental PLUS Emerging Markets FundPIMCO RAE
Fundamental PLUS Global Developed FundPIMCO RAE Fundamental PLUS US
FundPIMCO RAE Fundamental US FundPIMCO TRENDS Managed Futures
Strategy FundSocially Responsible Emerging Markets Bond FundUK
Corporate Bond FundUK Long Term Corporate Bond FundUK Low Duration
FundUS Short-Term Fund
Reuters Page:PAFPPLC
™ Registered trademark or trademark of Pacific Investment
Management Company LLC in the United States and/or other
countries.
-
Table of Contents
Page
Chairman’s Letter 4
Important Information About the Funds 6
Benchmark Descriptions 67
Statement of Assets and Liabilities 72
Statement of Operations 92
Statement of Changes in Net Assets 112
Schedule of Investments & Significant Changes in Portfolio
Composition 118
Notes to Financial Statements 715
Glossary 765
General Information 767
FUND FundSummarySchedule ofInvestments
PIMCO Capital Securities Fund 7 118
Commodity Real Return Fund 9 127
PIMCO Credit Absolute Return Fund 10 139
Diversified Income Fund 11 149
Diversified Income Duration Hedged Fund 13 165
Dynamic Multi-Asset Fund 14 177
Emerging Asia Bond Fund 15 185
Emerging Local Bond Fund 16 190
Emerging Markets 2018 Fund 17 202
Emerging Markets Bond Fund 18 206
Emerging Markets Corporate Bond Fund 19 218
Emerging Markets Short-Term Local Currency Fund 20 225
Euro Bond Fund 21 233
Euro Credit Fund 22 243
Euro Income Bond Fund 23 251
Euro Long Average Duration Fund 24 261
Euro Low Duration Fund 25 268
Euro Short-Term Fund 26 274
Global Advantage Fund 27 280
Global Advantage Real Return Fund 28 298
Global Bond ESG Fund 29 310
Global Bond Fund 30 322
Global Bond Ex-US Fund 32 344
Global High Yield Bond Fund 33 360
Global Investment Grade Credit Fund 34 371
Global Libor Plus Bond Fund 36 399
Global Low Duration Real Return Fund 37 409
Global Multi-Asset Fund 38 421
Global Real Return Fund 39 435
Income Fund 40 448
Inflation Strategy Fund 42 488
Low Average Duration Fund 43 500
Low Duration Global Investment Grade Credit Fund 44 511
Low Duration Income Fund 45 523
PIMCO MLP & Energy Infrastructure Fund 46 529
Mortgage Opportunities Fund 47 534
PIMCO RAE Fundamental Emerging Markets Fund 48 545
PIMCO RAE Fundamental Europe Fund 49 552
PIMCO RAE Fundamental Global Developed Fund 50 557
PIMCO RAE Fundamental PLUS Emerging Markets Fund 51 565
PIMCO RAE Fundamental PLUS Global Developed Fund 52 574
PIMCO RAE Fundamental PLUS US Fund 53 583
PIMCO RAE Fundamental US Fund 54 590
-
FUND FundSummarySchedule ofInvestments
Socially Responsible Emerging Markets Bond Fund 55 594
StocksPLUS™ Fund 56 603
Strategic Income Fund 57 614
Total Return Bond Fund 58 630
PIMCO TRENDS Managed Futures Strategy Fund 60 645
UK Corporate Bond Fund 61 654
UK Long Term Corporate Bond Fund 62 662
Unconstrained Bond Fund 63 670
US High Yield Bond Fund 64 684
US Investment Grade Corporate Bond Fund 65 694
US Short-Term Fund 66 705
-
Chairman’s Letter
Dear Shareholder,
Following is the PIMCO Funds: Global Investors Series plc
Semiannual Report, which covers the six-month reporting period
ended30 June 2018. On the subsequent pages you will find specific
details regarding investment results and a discussion of factors
thatmost affected performance over the reporting period.
For the six-month reporting period ended 30 June 2018
The US economy continued to expand during the reporting period.
Looking back, US gross domestic product (GDP) expanded at arevised
annual pace of 2.3% and 2.2% during the fourth quarter of 2017 and
first quarter of 2018, respectively. The CommerceDepartment’s
initial reading — released after the reporting period had ended –
showed that second-quarter 2018 GDP grew atan annual pace of
4.1%.
The Federal Reserve (Fed) continued to normalise monetary policy
during the reporting period. After raising interest rates
threetimes in 2017, the Fed again raised rates at its March 2018
meeting, pushing the federal funds rate to a range between 1.50%and
1.75%. Finally, at its meeting that concluded on 13 June 2018, the
Fed raised rates to a range between 1.75% and 2.00%.
Economic activity outside the US moderated somewhat during the
reporting period. Against this backdrop, the European CentralBank
(ECB), the Bank of Japan and the Bank of England largely maintained
their highly accommodative monetary policies. Othercentral banks
took a more hawkish stance, including the Bank of Canada, as it
raised rates in January 2018. Meanwhile, in June2018, the ECB
indicated that it plans to end its quantitative easing program by
the end of the year, but it did not expect to raiseinterest rates
“at least through the summer of 2019.”
The US Treasury yield curve flattened during the reporting
period, as short-term rates moved up more than their
longer-termcounterparts. The increase in rates at the short end of
the yield curve was mostly due to Fed interest rate hikes. The
yield on thebenchmark 10-year US Treasury note was 2.85% at the end
of the reporting period, up from 2.40% on 30 June 2017.
USTreasuries, as measured by the Bloomberg Barclays U.S. Treasury
Index, returned -1.08% over the six months ended 30 June2018.
Meanwhile the Bloomberg Barclays U.S. Aggregate Bond Index, a
widely used index of US investment grade bonds,returned -1.62% over
the period. Riskier fixed income asset classes, including high
yield corporate bonds and emerging marketdebt, generated mixed
results versus the broad US market. The ICE BofAML U.S. High Yield
Index gained 0.08% over thereporting period, whereas emerging
market external debt, as represented by the JPMorgan Emerging
Markets Bond Index (EMBI)Global, returned -5.23% over the reporting
period. Emerging market local bonds, as represented by the JPMorgan
GovernmentBond Index-Emerging Markets Global Diversified Index
(Unhedged), returned -6.44% over the period.
Global equities generated mixed results during the reporting
period. The US market rallied sharply during the first month of
theperiod. Supporting the market were improving global growth,
overall solid corporate profits and the passage of a tax reform
billlate in 2017. Those gains were then erased in February and
March 2018. This was partially driven by fears that the Fed may
takea more aggressive approach in terms of raising interest rates.
In addition, there were concerns over a possible trade war.However,
US equities moved modestly higher over the last three months of the
period. All told, US equities, as represented by theS&P 500
Index, returned 2.65% during the reporting period. Emerging market
equities, as measured by the MSCI EmergingMarkets Index, returned
-6.66% over the period, whereas global equities, as represented by
the MSCI World Index, gained0.43%. Elsewhere, Japanese equities, as
represented by the Nikkei 225 Index (in JPY), returned -1.05% over
the reporting periodand European equities, as represented by the
MSCI Europe Index (in EUR), returned -0.48%.
Commodity prices fluctuated and produced mixed results during
the six months ended 30 June 2018. When the reporting periodbegan,
crude oil was approximately $60 a barrel. By the end of the period
it was roughly $74 a barrel. This ascent was driven inpart by
planned and observed production cuts by OPEC and the collapse in
Venezuelan oil production, as well as global growthmaintaining
demand. Elsewhere, gold and copper prices moved lower over the
reporting period.
Finally, during the reporting period, there were periods of
volatility in the foreign exchange markets, due in part to signs
ofimproving global growth, decoupling central bank policies and a
number of geopolitical events. All told, the US Dollar
returned2.73%, 2.26% and -1.71% versus the Euro, British Pound and
Japanese Yen, respectively, during the six months ended30 June
2018.
Thank you for the trust you have placed in PIMCO. We deeply
value your trust, and will continue to work diligently to meet
yourbroad investment needs. If you have questions regarding the
PIMCO Funds: Global Investors Series plc, please contact
theAdministrator at +353 (1) 776 9990.
4 PIMCO FUNDS: GLOBAL INVESTORS SERIES PLC
-
Sincerely,
Craig A. DawsonChairman23 August 2018
Past performance is no guarantee of future results. Unless
otherwise noted, index returns reflect the reinvestment of
incomedistributions and capital gains, if any, but do not reflect
fees, brokerage commissions or other expenses of investing. It is
notpossible to invest directly in an unmanaged index.
Semiannual Report 30 June 2018 5
-
Important Information About the Funds
This material is authorised for use only when preceded or
accompanied by the current PIMCO Funds: Global Investors Series
plcProspectus. Investors should consider the investment objectives,
risks, charges and expenses of these Funds carefully before
investing. Thisand other information is contained in the
Prospectus. Please read the Prospectus carefully before you invest
or send money.
We believe that bond funds have an important role to play in a
well diversified investment portfolio. It is important to note,
however, that in anenvironment where interest rates may trend
upward, rising rates will negatively impact the performance of most
bond funds, and fixed-incomesecurities held by a Fund are likely to
decrease in value. The price volatility of fixed-income securities
can also increase during periods of risinginterest rates, resulting
in increased losses to a Fund. Bond funds and individual bonds with
a longer duration (a measure of the expected lifeof a security)
tend to be more sensitive to changes in interest rates, usually
making them more volatile than securities or funds with
shorterdurations. The longer-term performance of most bond funds
has benefited from capital gains in part resulting from an extended
period ofdeclining interest rates. In the event interest rates
increase, these capital gains should not be expected to recur.
The Funds may be subject to various risks in addition to those
described above. Some of these risks may include, but are not
limited to, thefollowing: real rate risk, derivative risk, small
company risk, foreign security risk, high-yield security risk and
specific sector investment risks. TheFunds may use derivative
instruments for hedging purposes or as part of an investment
strategy. Use of these instruments may involve certaincosts 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 aposition when it would be most advantageous to do so.
Funds investing in derivatives could lose more than the principal
amount invested inthese instruments. Investing in foreign
securities may entail risk due to foreign economic and political
developments; this risk may be enhancedwhen investing in emerging
markets. High-yield bonds typically have a lower credit rating than
other bonds. Lower rated bonds generallyinvolve a greater risk to
principal than higher rated bonds. Smaller companies may be more
volatile than larger companies and may entail morerisk.
Concentrating investments in individual sectors may add additional
risk and volatility compared to a diversified fund.
Past performance is no guarantee of future results. On each
individual Fund summary page in this Report, the Total Return
InvestmentPerformance table measures performance assuming that all
dividend and capital gain distributions were reinvested. Investment
return andprincipal value will fluctuate so that Fund shares, when
redeemed, may be worth more or less than their original cost.
Returns do not reflectthe deduction of taxes that a shareholder
would pay (i) on Fund distributions or (ii) the redemption of Fund
shares. Current performance maybe lower or higher than the
performance data quoted. All Fund returns are net of fees and
expenses.
An investment in a Fund is not a deposit in a bank and is not
guaranteed or insured by any government agency. The value of and
income fromShares in the Fund may go up or down and you may not get
back the amount you have invested in the Funds.
PIMCO Funds: Global Investors Series plc is distributed by PIMCO
Europe Ltd., 11 Baker Street, London W1U 3AH, England; PIMCO Asia
PteLtd., 8 Marina View #30-01, Asian Square Tower 1, Singapore
018960, PIMCO Asia Limited, Suite 2201, 22nd Floor, Two
InternationalFinance Centre, 8 Finance Street, Central Hong Kong
and PIMCO Australia Pty Ltd., Level 19, 5 Martin Place, Sydney, New
South Wales 2000,Australia; www.pimco.com.
6 PIMCO FUNDS: GLOBAL INVESTORS SERIES PLC
-
PIMCO Capital Securities Fund
Total Return Net of Fees and Expenses for the Period Ended 30
June 20181
6 Months ClassInception
Classes denominated in USD
Institutional Class Accumulation Shares (Inception 31-Jul-2013)
(2.95%) 6.32%
Institutional Class Income Shares (Inception 23-Sep-2014)
(3.00%) 4.71%
Investor Class Accumulation Shares (Inception 19-May-2014)
(3.19%) 4.15%
Investor Class Income Shares (Inception 19-May-2014) (3.10%)
4.17%
Administrative Class Accumulation Shares (Inception 09-Aug-2013)
(3.20%) 5.64%
Administrative Class Income Shares (Inception 09-Aug-2013)
(3.21%) 5.63%
Class E Accumulation Shares (Inception 28-Oct-2013) (3.41%)
4.80%
Class E Income Shares (Inception 19-May-2014) (3.37%) 3.62%
Class M Retail Income II Shares (Inception 23-Dec-2013) (3.39%)
4.38%
Class R Income Shares (Inception 18-Mar-2014) (3.04%) 4.63%
Class T Income Shares (Inception 16-Oct-2014) (3.61%) 4.09%
Class Z Income Shares (Inception 31-Oct-2013) (2.52%) 6.51%
3 Month USD LIBOR Index 1.00% 0.71%2
Classes denominated in AUD
Investor AUD (Hedged) Class Income Shares (Inception
23-May-2018) — (1.60%)
Class Z AUD (Hedged) Income Shares (Inception 11-Aug-2015)
(2.69%) 6.19%
Bloomberg AusBond Bank Bills Index 0.92% 1.94%2
Classes denominated in BRL
Institutional BRL (Hedged) Class Accumulation Shares (Inception
02-Jan-2018) — (16.30%)
ICE BofAML 3 Month USD Libor Index Hedged BRL Denominated in USD
— (12.86%)
Classes denominated in CAD
Investor CAD (Hedged) Income (Inception 25-Jun-2018) —
(0.40%)
3 Month USD LIBOR (CAD Hedged) Index — 0.02%
Classes denominated in CHF
Institutional CHF (Hedged) Class Accumulation Shares (Inception
09-Aug-2013) (4.47%) 4.55%
Class E CHF (Hedged) Accumulation Shares (Inception 18-Jun-2014)
(4.86%) 1.41%
3 Month USD LIBOR (Hedged to CHF) (0.47%) (0.85%)2
Classes denominated in CNH
Investor CNH (Hedged) Income (Inception 25-Jun-2018) —
(0.29%)
3 Month USD LIBOR (CNH Hedged) Index — 0.06%
Classes denominated in EUR
Institutional EUR (Hedged) Class Accumulation Shares (Inception
09-Aug-2013) (4.31%) 5.02%
Institutional EUR (Hedged) Class Income Shares (Inception
09-Aug-2013) (4.28%) 5.03%
Institutional EUR (Hedged) Class Income II Shares (Inception
29-Jul-2014) (4.19%) 3.11%
Investor EUR (Hedged) Class Accumulation Shares (Inception
26-Feb-2016) (4.46%) 6.38%
Administrative EUR (Hedged) Class Accumulation Shares (Inception
09-Aug-2013) (4.50%) 4.49%
Class E EUR (Hedged) Accumulation Shares (Inception 28-Oct-2013)
(4.68%) 3.64%
Class E EUR (Hedged) Income Shares (Inception 30-Oct-2015)
(4.67%) 2.20%
Class G Institutional EUR (Hedged) Income Shares (Inception
22-Apr-2016) (4.25%) 4.72%
Class R EUR (Hedged) Income Shares (Inception 18-Jun-2014)
(4.35%) 2.67%
Class T EUR (Hedged) Accumulation Shares (Inception 30-Sep-2014)
(4.89%) 2.30%
3 Month Euribor (0.16%) (0.08%)2
Classes denominated in GBP
Institutional GBP (Hedged) Class Accumulation Shares (Inception
09-Aug-2013) (3.82%) 5.66%
Institutional GBP (Hedged) Class Income Shares (Inception
31-Jul-2013) (3.82%) 5.81%
Class R GBP (Hedged) Income Shares (Inception 18-Jun-2014)
(3.93%) 3.35%
3 Month GBP LIBOR Index 0.31% 0.51%2
Investment Objective and Strategy Overview
PIMCO Capital Securities Fund seeks to providefocused exposure
to attractively priced CapitalSecurities (as defined in the
Prospectus) togetherwith maximum total return, consistent
withpreservation of capital and prudent investmentmanagement, by
investing in an activelymanaged portfolio of Fixed Income
Instruments(as defined in the Prospectus) and othersecurities of
which at least 80% will be investedin Capital Securities in
accordance with thepolicies set out in the Fund’s Prospectus.
Fund Insights
The following affected performance during thereporting
period:
» Buy protection in single-name and indexCDSs contributed to
performance, asspreads widened.
» Long exposure to Additional Tier 1 bondsdetracted from
performance, amid widerspreads and a risk-off market sentiment.
» Long exposure to banks’ senior debtdetracted from performance,
as rates movedhigher and spreads widened.
» Tactical exposure to banks’ equities, whichreturned
negatively, given the risk-off marketsentiment, detracted from
performance.
Semiannual Report 30 June 2018 7
-
PIMCO Capital Securities Fund (Cont.)
Total Return Net of Fees and Expenses for the Period Ended 30
June 20181 (Cont.)
6 Months ClassInception
Classes denominated in HKD
Class M Retail HKD (Unhedged) Income Shares (Inception
28-Jul-2017) (3.10%) (0.09%)
3 Month HIBOR Index 0.63% 0.96%
Classes denominated in SEK
Administrative SEK (Hedged) Class Accumulation Shares (Inception
13-Feb-2015) (4.64%) 2.44%
3 Month STIBOR Index (0.22%) (0.41%)
Classes denominated in SGD
Institutional SGD (Hedged) Class Income II Shares (Inception
30-Oct-2015) (3.32%) 5.02%
Investor SGD (Hedged) Class Income Shares (Inception
23-May-2018) — (1.60%)
Class M Retail SGD (Hedged) Income II Shares (Inception
23-Dec-2013) (3.83%) 4.48%
3 Month SGD LIBOR Index 0.72% 0.98%2
1 Annualised performance for periods of at least one year,
otherwise cumulative.2 Benchmark inception performance is
calculated from the inception date of the oldest share class.
8 PIMCO FUNDS: GLOBAL INVESTORS SERIES PLC
-
Commodity Real Return Fund
Total Return Net of Fees and Expenses for the Period Ended 30
June 20181
6 Months ClassInception
Classes denominated in USD
Institutional Class Accumulation Shares (Inception 31-Aug-2006)
(0.30%) (3.29%)
Investor Class Accumulation Shares (Inception 11-Aug-2011)
(0.51%) (7.40%)
Class E Accumulation Shares (Inception 21-Sep-2007) (0.88%)
(5.03%)
Class E Income Shares (Inception 31-Oct-2006) (1.02%)
(4.09%)
Bloomberg Commodity Index Total Return 0.00% (4.67%)2
Classes denominated in EUR
Institutional EUR (Hedged) Class Accumulation Shares (Inception
08-Jun-2010) (1.63%) (3.93%)
Class E EUR (Hedged) Accumulation Shares (Inception 07-Mar-2012)
(2.20%) (8.34%)
Class G Institutional EUR (Hedged) Income (Inception
20-Mar-2018) — 0.50%
Bloomberg Commodity Index Total Return (EUR Hedged) (2.13%)
(5.47%)2
Classes denominated in GBP
Institutional GBP (Hedged) Class Accumulation Shares (Inception
01-Mar-2017) (1.20%) (0.75%)
Bloomberg Commodity Index Total Return (GBP Hedged) (0.85%)
(0.81%)
1 Annualised performance for periods of at least one year,
otherwise cumulative.2 Benchmark inception performance is
calculated from the inception date of the oldest share class.
Investment Objective and Strategy Overview
Commodity Real Return Fund seeks to maximisetotal return
consistent with prudent investmentmanagement by investing in
derivativeinstruments (which may be listed or OTC),including swap
agreements, futures, options onfutures and structured notes and
commodityindex-linked notes, which enable it to gainexposures to
any of the indices and sub-indicesreferencing commodities
(including but notlimited to any index within the
BloombergCommodity family of indices) which meet withthe
requirements of and have, where necessary,been cleared by the
Central Bank of Ireland.Details of any indices utilised by the Fund
andthe types of commodities they reference will beavailable from
the Investment Advisors uponrequest. These instruments will provide
exposureto the investment returns of the commoditiesmarkets without
investing directly in physicalcommodities, and will be backed by an
activelymanaged portfolio of global Fixed IncomeInstruments (as
defined in the Prospectus). TheFund may also invest in common and
preferredstocks as well as convertible securities of issuersin
commodity-related industries.
Fund Insights
The following affected performance during thereporting
period:
» Exposure to Commodities detracted fromabsolute performance; as
Commodities, asmeasured by the Bloomberg CommodityIndex, posted
negative returns over thereporting period.
» Exposure to US and Italian real durationdetracted from
absolute performance, as realyields in these countries moved
higher.
» An underweight to US nominal durationbenefited relative
performance, as USnominal yields moved higher.
» Increased exposure to external EmergingMarket debt in the
latter half of the reportingperiod detracted from relative
performance,as these securities posted negative returnsduring that
time period.
» Exposure to residential mortgage-backedsecurities (RMBS)
detracted from relativeperformance, as these securities
postednegative returns.
» Overweight exposure to the Argentine Pesodetracted from
relative performance, as thecurrency depreciated.
Semiannual Report 30 June 2018 9
-
PIMCO Credit Absolute Return Fund
Total Return Net of Fees and Expenses for the Period Ended 30
June 20181
6 Months ClassInception
Classes denominated in USD
Institutional Class Accumulation Shares (Inception 14-Oct-2011)
(0.55%) 3.49%
Investor Class Accumulation Shares (Inception 01-Mar-2017)
(0.86%) 3.06%
Investor Class Income Shares (Inception 01-Mar-2017) (0.80%)
3.09%
Class E Accumulation Shares (Inception 21-Dec-2012) (1.10%)
1.44%
3 Month USD LIBOR Index 1.00% 0.63%2
Classes denominated in CHF
Institutional CHF (Hedged) Class Accumulation Shares (Inception
17-Dec-2012) (2.13%) 0.99%
3 Month USD LIBOR (Hedged to CHF) (0.47%) (0.77%)
Classes denominated in EUR
Institutional EUR (Hedged) Class Accumulation Shares (Inception
14-Oct-2011) (1.97%) 2.68%
Institutional EUR (Hedged) Class Income II Shares (Inception
01-Oct-2013) (1.90%) 1.71%
Class E EUR (Hedged) Accumulation Shares (Inception 21-Dec-2012)
(2.37%) 0.52%
Class G Institutional EUR (Hedged) Income Shares (Inception
28-Feb-2014) (1.90%) 1.30%
Class T EUR (Hedged) Accumulation Shares (Inception 30-Sep-2014)
(2.44%) 0.00%
3 Month Euribor (0.16%) 0.12%2
1 Annualised performance for periods of at least one year,
otherwise cumulative.2 Benchmark inception performance is
calculated from the inception date of the oldest share class.
Investment Objective and Strategy Overview
PIMCO Credit Absolute Return Fund seeks toprovide a positive
total return across a variety ofmarket environments, consistent
withpreservation of capital and prudent investmentmanagement, by
investing at least 80% of itsnet assets in a diversified portfolio
of FixedIncome Instruments (as defined in theProspectus). The Fund
seeks a positive totalreturn rather than a return which is greater
thana particular benchmark and aims to generateabsolute returns
irrespective of whether marketsare trending up or down.
Fund Insights
The following affected performance during thereporting
period:
» Exposure to US non-agency mortgagescontributed to performance,
as thesector rallied.
» Exposure to HY finance companiescontributed to performance, as
the sectorposted positive excess returns.
» Exposure to HY Healthcare contributed toperformance, as the
sector posted positiveexcess returns.
» Exposure to US duration detracted fromperformance, as rates
increased.
» Long exposure to EM external andlocal debt, which sold off,
detractedfrom performance.
» Long exposure to the ARS detracted fromperformance, as it
depreciated versusthe USD.
10 PIMCO FUNDS: GLOBAL INVESTORS SERIES PLC
-
Diversified Income Fund
Total Return Net of Fees and Expenses for the Period Ended 30
June 20181
6 Months ClassInception
Classes denominated in USD
Institutional Class Accumulation Shares (Inception 30-Jun-2005)
(2.12%) 6.48%
Institutional Class Income Shares (Inception 08-Sep-2008)
(2.09%) 6.92%
Investor Class Accumulation Shares (Inception 30-Apr-2013)
(2.27%) 3.00%
Investor Class Income Shares (Inception 30-Apr-2013) (2.25%)
2.98%
Administrative Class Income Shares (Inception 21-Jul-2011)
(2.34%) 4.57%
Class E Accumulation Shares (Inception 11-Sep-2006) (2.55%)
5.58%
Class E Income Shares (Inception 31-Jul-2006) (2.50%) 5.68%
Class H Institutional Accumulation Shares (Inception
08-Jun-2011) (2.22%) 4.88%
Class M Retail Income Shares (Inception 30-Nov-2010) (2.48%)
4.49%
Class M Retail Income II Shares (Inception 23-Dec-2013) (2.53%)
3.69%
Class R Income Shares (Inception 30-Nov-2012) (2.21%) 3.61%
Class T Accumulation Shares (Inception 16-Oct-2014) (2.79%)
2.96%
Class T Income Shares (Inception 16-Oct-2014) (2.75%) 2.97%
1/3 each-Bloomberg Barclays Global Aggregate Credit ex Emerging
Markets, USD Hedged;ICE BofA Merrill Lynch BB-B Rated Developed
Markets High Yield Constrained Index, USDHedged; and JPMorgan EMBI
Global, USD Hedged3 (2.38%) 6.08%2
Classes denominated in AUD
Class M Retail AUD (Hedged) Income Shares (Inception
19-Dec-2012) (2.62%) 4.34%
1/3 each-Bloomberg Barclays Global Aggregate Credit ex Emerging
Markets, AUD Hedged;ICE BofA Merrill Lynch BB-B Rated Developed
Markets High Yield Constrained Index, AUDHedged; and JPMorgan EMBI
Global, AUD Hedged3 (2.47%) 5.09%
Classes denominated in CHF
Institutional CHF (Hedged) Class Accumulation Shares (Inception
24-Jun-2011) (3.58%) 3.74%
Institutional CHF (Hedged) Class Income Shares (Inception
31-Aug-2012) (3.49%) 2.75%
1/3 each-Bloomberg Barclays Global Aggregate Credit ex Emerging
Markets, CHF Hedged;ICE BofA Merrill Lynch BB-B Rated Developed
Markets High Yield Constrained Index, CHFHedged; and JPMorgan EMBI
Global, CHF Hedged3 (3.88%) 3.66%2
Classes denominated in EUR
Institutional EUR (Hedged) Class Accumulation Shares (Inception
14-Feb-2007) (3.34%) 5.81%
Institutional EUR (Hedged) Class Income Shares (Inception
17-Oct-2007) (3.37%) 5.94%
Investor EUR (Hedged) Class Accumulation Shares (Inception
05-Jul-2007) (3.58%) 5.73%
Investor EUR (Hedged) Class Income Shares (Inception
15-Feb-2013) (3.55%) 2.29%
Administrative EUR (Hedged) Class Accumulation Shares (Inception
20-Jul-2007) (3.64%) 5.58%
Class E EUR (Hedged) Accumulation Shares (Inception 03-Jul-2007)
(3.84%) 5.19%
Class E EUR (Hedged) Income Shares (Inception 16-Oct-2009)
(3.84%) 4.77%
Class G Institutional EUR (Hedged) Income Shares (Inception
28-Feb-2014) (3.41%) 3.02%
Class G Retail EUR (Hedged) Income Shares (Inception
30-Mar-2012) (3.76%) 2.97%
Class T EUR (Hedged) Accumulation Shares (Inception 30-Sep-2014)
(4.01%) 1.41%
Class T EUR (Hedged) Income Shares (Inception 30-Sep-2014)
(3.94%) 1.42%
1/3 each-Bloomberg Barclays Global Aggregate Credit ex Emerging
Markets, EUR Hedged;ICE BofA Merrill Lynch BB-B Rated Developed
Markets High Yield Constrained Index, EURHedged; and JPMorgan EMBI
Global, EUR Hedged3 (3.69%) 5.09%2
Classes denominated in GBP
Institutional GBP (Hedged) Class Accumulation Shares (Inception
16-May-2006) (2.93%) 6.63%
Institutional GBP (Hedged) Class Income Shares (Inception
14-Feb-2006) (2.86%) 6.51%
Administrative GBP (Hedged) Class Income Shares (Inception
21-Jul-2011) (3.13%) 4.30%
1/3 each-Bloomberg Barclays Global Aggregate Credit ex Emerging
Markets, GBP Hedged;ICE BofA Merrill Lynch BB-B Rated Developed
Markets High Yield Constrained Index, GBPHedged; and JPMorgan EMBI
Global, GBP Hedged3 (3.22%) 5.90%2
Investment Objective and Strategy Overview
Diversified Income Fund seeks to maximise totalreturn,
consistent with prudent investmentmanagement by investing at least
two-thirds ofits assets in a diversified portfolio of FixedIncome
Instruments (as defined in theProspectus) of varying
maturities.
Fund Insights
The following affected performance during thereporting
period:
» An underweight to EM external debt, whichsold off, contributed
to performance.
» Exposure to US non-agency mortgagescontributed to performance,
as thesector rallied.
» Curve positioning in the US contributed toperformance,
particularly an underweight tothe long end, as rates increased.
» Long exposure to EM currencies detractedfrom performance, as
they sold off versus theUS Dollar.
» Long exposure to Additional Tier 1 bonds,which underperformed
the broader market,detracted from performance.
Semiannual Report 30 June 2018 11
-
Diversified Income Fund (Cont.)
Total Return Net of Fees and Expenses for the Period Ended 30
June 20181 (Cont.)
6 Months ClassInception
Classes denominated in SEK
Institutional SEK (Hedged) Class Accumulation Shares (Inception
31-Mar-2006) (3.45%) 6.10%
1/3 each-Bloomberg Barclays Global Aggregate Credit ex Emerging
Markets, SEK Hedged;ICE BofA Merrill Lynch BB-B Rated Developed
Markets High Yield Constrained Index, SEKHedged; and JPMorgan EMBI
Global, SEK Hedged3 (3.77%) 5.41%
1 Annualised performance for periods of at least one year,
otherwise cumulative.2 Benchmark inception performance is
calculated from the inception date of the oldest share class.3
Benchmark Performance represents: Inception to November 9, 2015 1/3
each — Bloomberg Barclays Global Aggregate Credit
Component USD Hdgd; ICE BofAML Global High Yield BB-B Rated
Constrained USD Hdgd; JPMorgan EMBI Global. November 10,2015
onwards 1/3 each — Bloomberg Barclays Global Aggregate Credit ex
Emerging Markets, USD Hedged; ICE BofAML BB-BRated Developed
Markets High Yield Constrained Index, USD Hedged; and JPMorgan EMBI
Global, USD Hedged.
12 PIMCO FUNDS: GLOBAL INVESTORS SERIES PLC
-
Diversified Income Duration Hedged Fund
Total Return Net of Fees and Expenses for the Period Ended 30
June 20181
6 Months ClassInception
Classes denominated in USD
Institutional Class Accumulation Shares (Inception 31-May-2011)
(0.53%) 4.00%
Institutional Class Income Shares (Inception 30-Oct-2015)
(0.56%) 5.88%
Investor Class Accumulation Shares (Inception 18-Feb-2014)
(0.71%) 2.57%
Investor Class Income Shares (Inception 18-Feb-2014) (0.78%)
2.56%
Class E Accumulation Shares (Inception 16-Aug-2013) (0.97%)
2.33%
Class E Income Shares (Inception 31-May-2011) (0.94%) 3.11%
Class R Income Shares (Inception 30-Nov-2012) (0.67%) 2.95%
Class T Accumulation Shares (Inception 16-Oct-2014) (1.18%)
2.33%
Equally weighted blend of three indices, at constant 0.25 year
duration, as calculated byPIMCO: Bloomberg Barclays Global
Aggregate Credit ex Emerging Markets, USD Hedged;ICE BofA Merrill
Lynch BB-B Rated Developed Markets High Yield Constrained Index,
USDHedged; and JPMorgan EMBI Global, USD Hedged3 (0.43%) 3.46%2
Classes denominated in EUR
Institutional EUR (Hedged) Class Accumulation Shares (Inception
16-Aug-2011) (1.84%) 3.67%
Institutional EUR (Hedged) Class Income II Shares (Inception
01-Oct-2013) (1.82%) 2.12%
Class E EUR (Hedged) Accumulation Shares (Inception 11-Aug-2011)
(2.24%) 2.94%
Class E EUR (Hedged) Income Shares (Inception 07-May-2013)
(2.28%) 0.66%
Blend of the following three indices at constant .25 year
duration: 1/3 each-BloombergBarclays Global Aggregate Credit ex
Emerging Markets, EUR Hedged; ICE BofA MerrillLynch BB-B Rated
Developed Markets High Yield Constrained Index, EUR Hedged;
andJPMorgan EMBI Global, EUR Hedged3 (1.80%) 3.41%2
Classes denominated in GBP
Institutional GBP (Hedged) Class Accumulation Shares (Inception
23-Aug-2011) (1.39%) 4.46%
Institutional GBP (Hedged) Class Income Shares (Inception
22-Jan-2013) (1.39%) 2.44%
Blend of the following three indices at constant .25 year
duration: 1/3 each-BloombergBarclays Global Aggregate Credit ex
Emerging Markets, GBP Hedged; ICE BofA MerrillLynch BB-B Rated
Developed Markets High Yield Constrained Index, GBP Hedged;
andJPMorgan EMBI Global, GBP Hedged3 (1.33%) 3.99%2
1 Annualised performance for periods of at least one year,
otherwise cumulative.2 Benchmark inception performance is
calculated from the inception date of the oldest share class.3
Benchmark performance for the Diversified Income Duration Hedged
Fund represents the following: Inception to 9 November
2015 — Bogey 4309 (Blend of the following three indices at
constant. 25 year duration: 1/3 each — Bloomberg BarclaysGlobal
Aggregate Credit USD Hdgd; ICE BofAML High Yield BB-B Rated
Developed Markets Constrained USD Hdgd;JPMorgan EMBI Global. 10
November 2015 onwards: blend of the following three indices at
constant. 25 year duration:1/3 each — Bloomberg Barclays Global
Aggregate Credit ex Emerging Markets, USD Hedged; ICE BofAML BB-B
RatedDeveloped Markets High Yield Constrained Index, USD Hedged;
and JPMorgan EMBI Global, USD Hedged).
Investment Objective and Strategy Overview
Diversified Income Duration Hedged Fund seeksto maximise current
yield, consistent withprudent investment management by investing
atleast 80% of its net assets in a diversifiedportfolio of variable
and floating-rate FixedIncome Instruments (as defined in
theProspectus), Fixed Income Instruments with aduration of less
than or equal to one year, andfixed rate Fixed Income
Instruments.
Fund Insights
The following affected performance during thereporting
period:
» An underweight to EM external debt, whichsold off, contributed
to performance.
» Exposure to US non-agency mortgagescontributed to performance,
as thesector rallied.
» Overweight exposure to high yieldHealthcare contributed to
performance, asthe sector outperformed.
» Long exposure to EM currencies detractedfrom performance, as
they sold off versusthe US Dollar.
» Long exposure to Additional Tier 1 bonds,which underperformed
the broader market,detracted from performance.
Semiannual Report 30 June 2018 13
-
Dynamic Multi-Asset Fund
Total Return Net of Fees and Expenses for the Period Ended 30
June 20181
6 Months ClassInception
Classes denominated in EUR
Institutional Class Accumulation Shares (Inception 25-Feb-2016)
(1.40%) 5.27%
Institutional Class Income II Shares (Inception 25-Feb-2016)
(1.27%) 5.31%
Class E Accumulation Shares (Inception 25-Feb-2016) (1.87%)
4.15%
Class E Income Shares (Inception 08-Dec-2017) (1.81%)
(2.40%)
Class G Institutional Income Shares (Inception 26-Apr-2017)
(1.26%) 1.44%
Class T Accumulation Shares (Inception 20-Oct-2016) (1.99%)
1.99%
1 Month Euribor Rate Index (0.19%) (0.36%)2
Classes denominated in CHF
Institutional CHF (Hedged) Class Accumulation Shares (Inception
14-Mar-2018) — (1.00%)
1 Month CHF LIBOR Index — (0.23%)
Classes denominated in GBP
Institutional GBP (Hedged) Class Accumulation Shares (Inception
25-Feb-2016) (0.86%) 6.22%
1 Month GBP LIBOR Index 0.25% 0.38%
Classes denominated in USD
Institutional USD (Hedged) Class Accumulation Shares (Inception
25-Feb-2016) 0.00% 7.39%
Class E USD (Hedged) Accumulation Shares (Inception 15-Mar-2017)
(0.57%) 3.39%
Class E USD (Hedged) Income Shares (Inception 15-Mar-2017)
(0.48%) 3.46%
1 Month USD LIBOR Index 0.88% 1.01%2
1 Annualised performance for periods of at least one year,
otherwise cumulative.2 Benchmark inception performance is
calculated from the inception date of the oldest share class.
Investment Objective and Strategy Overview
Dynamic Multi-Asset Fund seeks to maximisetotal return,
consistent with preservation ofcapital and prudent investment
management, bytaking exposure to a wide range of asset classes,such
as Equity Securities (as defined in theProspectus) and
equity-related securities, FixedIncome Instruments (as defined in
theProspectus) and currencies as well ascommodity-related
instruments and propertyrelated instruments (though not
directcommodity and property investments) which areprovided for
under the investment policy of theFund as outlined in the
Prospectus.
Fund Insights
The following affected performance during thereporting
period:
» Long exposure to select emerging marketcurrencies,
particularly the Argentine Peso,Russian Ruble and Brazilian Real,
detractedfrom performance, as these depreciatedagainst the
Euro.
» Exposure to US duration detracted fromperformance, as US
Treasury yields increased.
» Long exposure to Japanese banks detractedfrom performance, as
these lost in value.
» Short European equity options exposureadded to returns, as
prices declined throughthe period.
» Long German duration added to returns, asyields fell.
14 PIMCO FUNDS: GLOBAL INVESTORS SERIES PLC
-
Emerging Asia Bond Fund
Total Return Net of Fees and Expenses for the Period Ended 30
June 20181
6 Months ClassInception
Classes denominated in USD
Institutional Class Accumulation Shares (Inception 03-Jun-2011)
(2.66%) 0.85%
Class E Income Shares (Inception 01-Jun-2010) (2.99%) 3.15%
JPMorgan Asia Credit Index3 (2.55%) 4.11%2
Classes denominated in EUR
Institutional EUR (Unhedged) Class Accumulation Shares
(Inception 01-Oct-2010) 0.15% 4.14%
Class E EUR (Unhedged) Accumulation Shares (Inception
03-Jun-2011) (0.32%) 3.19%
JPMorgan Asia Credit Index (EUR Unhedged)3 0.23% 4.68%2
Classes denominated in HKD
Class M Retail HKD (Unhedged) Income Shares (Inception
01-Mar-2011) (2.76%) 0.94%
JPMorgan Asia Credit Index (HKD Unhedged)3 (2.15%) 2.43%
1 Annualised performance for periods of at least one year,
otherwise cumulative.2 Benchmark inception performance is
calculated from the inception date of the oldest share class.3
Benchmark performance for the Emerging Asia Bond Fund represents:
Inception to 31 May 2016 [90% JPMorgan Asia credit
Index (JACI) + 10% 1 month USD Libor] * [JPMorgan Emerging Local
Markets Index (ELMI+)] / [3 month USD Libor]. 1 June2016 and
onwards JPMorgan Asia Credit Index.
Investment Objective and Strategy Overview
Emerging Asia Bond Fund seeks to maximisetotal return,
consistent with prudent investmentmanagement. The Fund invests in a
combinationof Fixed Income Instruments (as defined in
theProspectus) of issuers that are economically tiedto Asia ex-
Japan countries with emergingsecurities markets, related
derivatives (as furtherset out in the Prospectus) on such
securities andemerging market currencies. Fixed IncomeSecurities
(as defined in the Prospectus)purchased by the Fund will be rated
at least Caaby Moody’s or CCC by S&P or equivalently ratedby
Fitch (or if unrated, determined by theInvestment Advisors to be of
comparable quality)with the exception of mortgage-backedsecurities
for which there is no minimum creditrating requirement.
Fund Insights
The following affected performance during thereporting
period:
» Positioning in Chinese external corporatedebt contributed to
performance.
» An underweight to Hong Kong externalcorporate debt contributed
to performance.
» An overweight to Indian external corporatedebt and Indian
external quasi-sovereigndebt detracted from performance.
» An overweight to Chinese external quasi-sovereign debt
detracted from performance.
Semiannual Report 30 June 2018 15
-
Emerging Local Bond Fund
Total Return Net of Fees and Expenses for the Period Ended 30
June 20181
6 Months ClassInception
Classes denominated in USD
Institutional Class Accumulation Shares (Inception 11-Dec-2007)
(6.85%) 2.04%
Institutional Class Income Shares (Inception 18-Apr-2008)
(6.82%) 1.73%
Investor Class Accumulation Shares (Inception 18-Aug-2010)
(7.07%) (0.69%)
Class E Accumulation Shares (Inception 19-Nov-2008) (7.33%)
3.69%
Class E Income Shares (Inception 08-Jul-2010) (7.31%)
(0.75%)
Class Z Income Shares (Inception 18-Nov-2008) (6.37%) 5.52%
JPMorgan Government Bond Index-Emerging Markets Global
Diversified Index (Unhedged) (6.44%) 2.60%2
Classes denominated in CHF
Institutional CHF (Unhedged) Class Accumulation Shares
(Inception 19-Oct-2012) (5.14%) (1.76%)
Investor CHF (Unhedged) Class Accumulation Shares (Inception
02-Mar-2011) (5.17%) (0.12%)
JPMorgan Government Bond Index-Emerging Markets Global
Diversified Index(CHF Unhedged) (4.67%) 0.87%2
Classes denominated in EUR
Institutional EUR (Unhedged) Class Accumulation Shares
(Inception 16-Apr-2010) (4.18%) 1.92%
Institutional EUR (Unhedged) Class Income Shares (Inception
23-Jun-2010) (4.18%) 1.01%
Investor EUR (Unhedged) Class Accumulation Shares (Inception
02-Mar-2011) (4.37%) 1.23%
Class E EUR (Unhedged) Accumulation Shares (Inception
02-Jul-2009) (4.66%) 3.21%
Class G Institutional EUR (Unhedged) Income Shares (Inception
28-Feb-2014) (4.23%) 2.27%
Class G Retail EUR (Unhedged) Income Shares (Inception
14-Dec-2010) (4.66%) 0.17%
Class T EUR (Unhedged) Accumulation Shares (Inception
03-Jan-2017) (4.88%) (4.35%)
JPMorgan Government Bond Index-Emerging Markets Global
Diversified Index(EUR Unhedged) (3.78%) 4.86%2
Classes denominated in GBP
Institutional GBP (Unhedged) Class Accumulation Shares
(Inception 27-Jun-2008) (4.59%) 6.34%
JPMorgan Government Bond Index-Emerging Markets Global
Diversified Index(GBP Unhedged) (4.14%) 6.92%
1 Annualised performance for periods of at least one year,
otherwise cumulative.2 Benchmark inception performance is
calculated from the inception date of the oldest share class.
Investment Objective and Strategy Overview
Emerging Local Bond Fund seeks to maximisetotal return,
consistent with prudent investmentmanagement. The Fund will
normally invest atleast 80% of its assets in Fixed
IncomeInstruments (as defined in the Prospectus)denominated in
currencies of countries withemerging securities markets, which may
berepresented by forwards or derivatives such asoptions, futures
contracts, or swap agreements.
Fund Insights
The following affected performance during thereporting
period:
» An underweight to Hungarian local durationand the Hungarian
Forint contributed torelative performance, as local yields rose,and
the currency depreciated against theUS Dollar.
» Off-benchmark exposure to short-termEgyptian Pound–denominated
Treasury billsdelivered positive total return, driven by highcarry
in H1 2018.
» An overweight to the Argentine Pesodetracted from relative
performance as thecurrency depreciated against the US Dollar.
» An overweight to Indonesian local durationdetracted from
relative performance, as localyields rose in H1 2018.
» An overweight to the Turkish Lira detractedfrom relative
performance, as the currencydepreciated against the US Dollar.
16 PIMCO FUNDS: GLOBAL INVESTORS SERIES PLC
-
Emerging Markets 2018 Fund
Total Return Net of Fees and Expenses for the Period Ended 30
June 20181
6 Months ClassInception
Classes denominated in USD
Institutional Class Accumulation Shares (Inception 31-Oct-2014)
0.87% 4.14%
Institutional Class Income Shares (Inception 09-Dec-2014) 0.98%
4.79%
Class E Accumulation Shares (Inception 31-Oct-2014) 0.54%
3.29%
Classes denominated in EUR
Institutional EUR (Hedged) Class Accumulation Shares (Inception
31-Oct-2014) (0.54%) 2.66%
Administrative EUR (Hedged) Class Accumulation Shares (Inception
31-Oct-2014) (0.73%) 2.15%
Class E EUR (Hedged) Accumulation Shares (Inception 31-Oct-2014)
(0.83%) 1.84%
Class G Retail EUR (Hedged) Income Shares (Inception
31-Oct-2014) (0.82%) 1.84%
Classes denominated in GBP
Class R GBP (Hedged) Accumulation Shares (Inception 31-Oct-2014)
0.09% 3.29%
1 Annualised performance for periods of at least one year,
otherwise cumulative.
Investment Objective and Strategy Overview
Emerging Markets 2018 Fund seeks maximumtotal return, consistent
with prudent investmentmanagement and the Fund Maturity Date
(asdefined in the Fund’s Prospectus as in or around30 November
2018), by investing under normalcircumstances at least 80% of its
net assets inFixed Income Instruments (as defined in theProspectus)
with varying maturities and ofissuers that are economically tied to
emergingmarket countries issued by governments, theiragencies or
instrumentalities and corporations.Such instruments may be
denominated innon-US currencies, including currencies ofemerging
markets. The Investment Advisors mayachieve the desired exposure by
directinvestment in Fixed Income Securities (as definedin the
Prospectus) and/or by investing inderivatives as further outlined
in the Prospectus.The Fund may also invest in securities not tied
toemerging market countries. During the twelvemonth period prior to
the Fund Maturity Date,the Investment Advisors may determine at
itsdiscretion that it is not in the best interests ofthe Fund to
acquire Fixed Income Instrumentstied to emerging market countries
(e.g. wheremarket conditions are unfavourable). In
suchcircumstances and during the final twelve monthperiod only, the
Investment Advisors may seek toinvest in Fixed Income Instruments
not tied toemerging market countries and shall not besubject to the
abovementioned 80% limit.However, any Fixed Income
Instrumentspurchased during this period shall not have amaturity
beyond that of the Fund Maturity Date.
Fund Insights
The following affected performance during thereporting
period:
» Allocation to short-term Brazilian quasi-sovereign and
corporate bonds contributedto performance, as they recorded
positiveabsolute performance in H1 2018 driven bytheir high
carry.
» Allocation to short-term Russian quasi-sovereign bonds
contributed to performance,as they recorded positive
absoluteperformance in H1 2018 driven by theirhigh carry.
» Allocation to short-term Turkish quasi-sovereign and corporate
bonds contributedto performance, as they recorded positiveabsolute
performance in H1 2018 driven bytheir high carry.
» An upward move of the US yield curvedetracted from absolute
performance, as thepick-up in short-term US yields had anegative
effect on EM external bonds withsimilar maturity.
Semiannual Report 30 June 2018 17
-
Emerging Markets Bond Fund
Total Return Net of Fees and Expenses for the Period Ended 30
June 20181
6 Months ClassInception
Classes denominated in USD
Institutional Class Accumulation Shares (Inception 31-Jul-2001)
(4.62%) 9.27%
Institutional Class Income Shares (Inception 13-Dec-2001)
(4.63%) 8.50%
Investor Class Accumulation Shares (Inception 25-Apr-2002)
(4.79%) 7.68%
Investor Class Income Shares (Inception 18-Apr-2002) (4.81%)
7.64%
Administrative Class Accumulation Shares (Inception 29-May-2003)
(4.84%) 6.43%
Class E Accumulation Shares (Inception 31-Mar-2006) (5.05%)
5.10%
Class E Income Shares (Inception 28-Oct-2005) (5.12%) 5.26%
Class H Institutional Accumulation Shares (Inception
17-Oct-2002) (4.70%) 8.85%
Class M Retail Income Shares (Inception 30-Nov-2010) (5.09%)
3.73%
Class M Retail Income II Shares (Inception 23-Dec-2013) (4.98%)
3.08%
Class Z Income Shares (Inception 18-Nov-2008) (4.24%) 9.58%
JPMorgan Emerging Markets Bond Index (EMBI) Global (5.23%)
8.36%2
Classes denominated in AUD
Class M Retail AUD (Hedged) Income Shares (Inception
19-Dec-2012) (5.11%) 2.65%
JPMorgan EMBI Global (AUD Hedged) (5.38%) 3.76%
Classes denominated in CHF
Institutional CHF (Hedged) Class Income Shares (Inception
16-Dec-2005) (6.05%) 4.36%
JPMorgan EMBI Global (CHF Hedged) (6.72%) 4.66%
Classes denominated in EUR
Institutional EUR (Hedged) Class Accumulation Shares (Inception
17-Dec-2002) (5.91%) 7.50%
Institutional EUR (Hedged) Class Income Shares (Inception
20-Dec-2010) (5.93%) 3.99%
Investor EUR (Hedged) Class Accumulation Shares (Inception
04-Aug-2009) (6.08%) 5.15%
Class E EUR (Hedged) Accumulation Shares (Inception 31-Mar-2006)
(6.35%) 4.19%
Class G Institutional EUR (Hedged) Income Shares (Inception
26-Apr-2017) (5.91%) (2.77%)
Class T EUR (Hedged) Accumulation Shares (Inception 03-Jan-2017)
(6.57%) (0.34%)
JPMorgan EMBI Global (EUR Hedged) (6.55%) 7.40%2
Classes denominated in EUR (Unhedged)
Institutional EUR (Unhedged) Class Accumulation Shares
(Inception 9-Feb-2018) — 2.10%
JPMorgan EMBI Global (EUR Unhedged) — 2.15%2
Classes denominated in GBP
Institutional GBP (Hedged) Class Accumulation Shares (Inception
05- Feb-2004) (5.46%) 6.89%
Institutional GBP (Hedged) Class Income Shares (Inception
30-Dec-2005) (5.48%) 5.76%
JPMorgan EMBI Global (GBP Hedged) (6.12%) 7.25%2
Classes denominated in SGD
Class E SGD (Hedged) Accumulation Shares (Inception 15-Feb-2007)
(5.49%) 4.14%
JPMorgan EMBI Global (SGD Hedged) (5.61%) 5.67%
1 Annualised performance for periods of at least one year,
otherwise cumulative.2 Benchmark inception performance is
calculated from the inception date of the oldest share class.
Investment Objective and Strategy Overview
Emerging Markets Bond Fund seeks to maximisetotal return,
consistent with prudent investmentmanagement by investing at least
80% of itsassets in Fixed Income Instruments (as defined inthe
Prospectus) of issuers that economically aretied to countries with
emerging securitiesmarkets. The Fund is actively managed tomaximise
total return potential.
Fund Insights
The following affected performance during thereporting
period:
» Underweight to US duration contributed torelative performance,
as US Treasuryyields rose.
» Underweight to Lebanese sovereign debt,which recorded negative
total return in H12018, was a positive contributor torelative
performance.
» Underweight to Philippine sovereign debt,which recorded
negative total return in H12018, was a positive contributor
torelative performance.
» Overweight to Argentine sovereign debt,which recorded negative
total return in H12018, was a detractor fromrelative
performance.
» Overweight to Venezuelan sovereign debt,which recorded
negative total return in H12018, was a detractor fromrelative
performance.
18 PIMCO FUNDS: GLOBAL INVESTORS SERIES PLC
-
Emerging Markets Corporate Bond Fund
Total Return Net of Fees and Expenses for the Period Ended 30
June 20181
6 Months ClassInception
Classes denominated in USD
Institutional Class Accumulation Shares (Inception 12-Nov-2009)
(2.67%) 4.79%
Administrative Class Income Shares (Inception 16-Aug-2012)
(3.00%) 2.38%
Class E Accumulation Shares (Inception 27-Feb-2012) (3.12%)
2.63%
Class Z Income Shares (Inception 03-Dec-2009) (2.14%) 5.91%
JPMorgan Corporate Emerging Markets Bond Index Diversified
(CEMBI) (3.06%) 6.14%2
Classes denominated in CHF
Class E CHF (Hedged) Accumulation Shares (Inception 25-May-2012)
(4.59%) 1.30%
JPMorgan Corporate Emerging Markets Bond Diversified Index (CHF
Hedged) (4.55%) 3.51%
Classes denominated in EUR
Institutional EUR (Hedged) Class Accumulation Shares (Inception
19-Feb-2010) (3.98%) 3.88%
Class E EUR (Hedged) Accumulation Shares (Inception 02-Mar-2010)
(4.41%) 2.77%
JPMorgan Corporate Emerging Markets Bond Diversified Index (EUR
Hedged) (4.36%) 5.16%2
Classes denominated in GBP
Institutional GBP (Hedged) Class Income Shares (Inception
16-Jun-2011) (3.44%) 3.16%
JPMorgan Corporate Emerging Markets Bond Diversified Index (GBP
Hedged) (3.90%) 4.68%
1 Annualised performance for periods of at least one year,
otherwise cumulative.2 Benchmark inception performance is
calculated from the inception date of the oldest share class.
Investment Objective and Strategy Overview
Emerging Markets Corporate Bond Fund seeksmaximum total return,
consistent withpreservation of capital and prudent
investmentmanagement, by investing under normalcircumstances at
least 80% of its assets in anactively managed diversified portfolio
consistingof Fixed Income Instruments (as defined in theProspectus)
that are economically tied toemerging market countries including
FixedIncome Instruments that are issued by corporateissuers that
are economically tied to emergingmarket countries.
Fund Insights
The following affected performance during thereporting
period:
» Underweight to US duration contributed torelative performance,
as US Treasuryyields rose.
» Overweight to selected Brazilian corporatedebt, which recorded
positive total return inH1 2018, was a positive contributor
torelative performance.
» Underweight to Russian quasi-sovereigndebt, which recorded
negative total return inH1 2018, was a positive contributor
torelative performance.
» Overweight to Nigerian corporate debt,which recorded negative
total return in H12018, was a detractor fromrelative
performance.
» Overweight to Argentine corporate debt andexposure to
Argentine sovereign debt, bothof which recorded negative total
return in H12018, were detractors fromrelative performance.
Semiannual Report 30 June 2018 19
-
Emerging Markets Short-Term Local Currency Fund
Total Return Net of Fees and Expenses for the Period Ended 30
June 20181
6 Months ClassInception
Classes denominated in USD
Institutional Class Accumulation Shares (Inception 29-Sep-2006)
(3.82%) 2.48%
Class E Accumulation Shares (Inception 19-Nov-2008) (4.23%)
1.87%
Class E Income Shares (Inception 31-Oct-2006) (4.24%) 1.40%
JPMorgan Emerging Local Markets Index Plus (Unhedged) (3.41%)
2.54%2
Classes denominated in EUR
Institutional EUR (Unhedged) Class Accumulation Shares
(Inception 20-Jan-2010) (1.08%) 2.95%
Class E EUR (Unhedged) Accumulation Shares (Inception
02-Jul-2009) (1.56%) 2.62%
JPMorgan Emerging Local Markets Index Plus (EUR Unhedged)
(0.65%) 3.62%2
1 Annualised performance for periods of at least one year,
otherwise cumulative.2 Benchmark inception performance is
calculated from the inception date of the oldest share class.
Investment Objective and Strategy Overview
Emerging Markets Short-Term Local CurrencyFund seeks maximum
total return, consistentwith preservation of capital and
prudentinvestment management, by investing at least80% of its
assets in currencies of, or in FixedIncome Instruments (as defined
in theProspectus) denominated in currencies of,emerging markets.
The Investment Advisors havebroad discretion to identify countries
that theyconsiders to qualify as emerging markets. TheInvestment
Advisors will select the Fund’scountry and currency composition
based on theirevaluation of relative interest rates,
inflationrates, exchange rates, monetary and fiscalpolicies, trade
and current account balances, andother specific factors the
Investment Advisorsbelieve to be relevant. The Fund is likely
toconcentrate its investments in Asia, Africa, theMiddle East,
Latin America and the emergingcountries of Europe. The Fund may
invest ininstruments whose return is based on the returnof an
emerging market security such as aderivative instrument, rather
than investingdirectly in emerging market securities. Theaverage
portfolio duration of this Fund variesbased on the Investment
Advisors’ forecast forinterest rates and, under normal
marketconditions, is not expected to exceed two years.The Fund may
invest all of its assets in high yieldsecurities, subject to a
maximum of 15% of itsassets in securities rated lower than B
byMoody’s or S&P or equivalently rated by Fitch(or, if unrated,
determined by the InvestmentAdvisors to be of comparable
quality).
Fund Insights
The following affected performance during thereporting
period:
» An underweight to the Hungarian Forintcontributed to relative
performance, as thecurrency depreciated against the US Dollar.
» Off-benchmark exposure to the EgyptianPound, though short-term
Treasury billsdelivered positive total return, driven by highcarry
in H1 2018.
» An overweight to the Argentine Pesodetracted from relative
performance, as thecurrency depreciated against the US Dollar.
» An overweight to the Turkish Lira detractedfrom relative
performance, as the currencydepreciated against the US Dollar.
» An overweight to the Polish Zloty detractedfrom relative
performance, as the currencydepreciated against the US Dollar.
20 PIMCO FUNDS: GLOBAL INVESTORS SERIES PLC
-
Euro Bond Fund
Total Return Net of Fees and Expenses for the Period Ended 30
June 20181
6 Months ClassInception
Classes denominated in EUR
Institutional Class Accumulation Shares (Inception 31-Dec-1998)
0.58% 4.65%
Institutional Class Income Shares (Inception 07-Jan-2003) 0.62%
4.53%
Investor Class Accumulation Shares (Inception 08-May-2002) 0.44%
4.50%
Investor Class Income Shares (Inception 29-Apr-2002) 0.39%
4.47%
Administrative Class Accumulation Shares (Inception 07-Jun-2001)
0.36% 4.33%
Class E Accumulation Shares (Inception 31-Mar-2006) 0.14%
3.38%
Class E Income Shares (Inception 10-Oct-2005) 0.09% 3.03%
Class G Institutional Income Shares (Inception 28-Feb-2014)
0.63% 3.88%
Class T Accumulation Shares (Inception 30-Sep-2014) 0.00%
1.41%
FTSE Euro Broad Investment-Grade Index 0.30% 4.41%2
Classes denominated in CHF
Institutional CHF (Hedged) Class Accumulation Shares (Inception
30-Jun-2006) 0.42% 3.47%
FTSE Euro Broad Investment-Grade (CHF Hedged) Index 0.14%
3.50%
1 Annualised performance for periods of at least one year,
otherwise cumulative.2 Benchmark inception performance is
calculated from the inception date of the oldest share class.
Investment Objective and Strategy Overview
Euro Bond Fund seeks to maximise total return,consistent with
preservation of capital andprudent investment management. The
Fundseeks to achieve its investment objective byinvesting at least
two-thirds of its assets in adiversified portfolio of
Euro-denominated FixedIncome Instruments (as defined in
theProspectus) of varying maturities.
Fund Insights
The following affected performance during thereporting
period:
» An overweight to German durationcontributed to relative
performance, asyields fell.
» An underweight to Italian durationcontributed to relative
performance, asyields rose.
» Exposure to non-agency mortgage-backedsecurities contributed
to relativeperformance, as total returns on thesesecurities were
positive.
» An underweight to investment grade creditspread risk
contributed to relativeperformance, as spreads widened.
» Exposure to US duration detracted fromrelative performance, as
yields rose.
» Short exposure to the US Dollar detractedfrom relative
performance, as the currencyappreciated versus the Euro.
Semiannual Report 30 June 2018 21
-
Euro Credit Fund
Total Return Net of Fees and Expenses for the Period Ended 30
June 20181
6 Months ClassInception
Classes denominated in EUR
Institutional Class Accumulation Shares (Inception 31-Jan-2008)
0.19% 4.60%
Institutional Class Income II Shares (Inception 01-Oct-2013)
0.15% 3.93%
Class E Accumulation Shares (Inception 25-May-2010) (0.38%)
3.38%
Bloomberg Barclays Euro-Aggregate Credit Index (0.53%)
4.30%2
1 Annualised performance for periods of at least one year,
otherwise cumulative.2 Benchmark inception performance is
calculated from the inception date of the oldest share class.
Investment Objective and Strategy Overview
Euro Credit Fund seeks to maximise total return,consistent with
preservation of capital andprudent investment management. The
Fundinvests at least two-thirds of its assets in adiversified
portfolio of Euro-denominated FixedIncome Instruments (as defined
in theProspectus) of varying maturities, which may berepresented by
direct or indirect holdings incredit-related Fixed Income
Securities (as definedin the Prospectus) or derivative instruments
suchas options, futures swaps or creditdefault swaps.
Fund Insights
The following affected performance during thereporting
period:
» Overweight exposure to core Europeanduration contributed to
performance, asGerman rates fell over the period.
» An underweight exposure to Insurancecontributed to
performance, as the sectorunderperformed the broader market.
» Underweight exposure to External EM debt,which underperformed,
contributedto performance.
» Exposure to USD duration detracted fromperformance, as rates
increased overthe period.
» Short dollar bias detracted fromperformance, as the USD
appreciated versusthe EUR.
22 PIMCO FUNDS: GLOBAL INVESTORS SERIES PLC
-
Euro Income Bond Fund
Total Return Net of Fees and Expenses for the Period Ended 30
June 20181
6 Months ClassInception
Classes denominated in EUR
Institutional Class Accumulation Shares (Inception 28-Feb-2011)
(0.82%) 5.25%
Institutional Class Income Shares (Inception 28-Feb-2011)
(0.79%) 5.25%
Investor Class Income Shares (Inception 29-May-2012) (0.99%)
5.24%
Class E Accumulation Shares (Inception 28-Feb-2011) (1.31%)
4.29%
Class E Income Shares (Inception 28-Feb-2011) (1.32%) 4.29%
Class T Accumulation Shares (Inception 30-Sep-2014) (1.48%)
1.75%
Class T Income Shares (Inception 30-Sep-2014) (1.50%) 1.75%
Bloomberg Barclays Euro Aggregate 1-10 Year Bond Index (0.11%)
3.60%2
Classes denominated in USD
Institutional USD (Hedged) Class Accumulation Shares (Inception
16-Feb-2018) — 0.40%
Bloomberg Barclays Euro Aggregate 1-10 Year Bond Index (USD
Hedged) — 1.47%
1 Annualised performance for periods of at least one year,
otherwise cumulative.2 Benchmark inception performance is
calculated from the inception date of the oldest share class.
Investment Objective and Strategy Overview
Euro Income Bond Fund seeks to maximisecurrent income,
consistent with prudentinvestment management. Long-term
capitalappreciation is a secondary objective. The Fundinvests at
least two-thirds of its assets in adiversified portfolio of
Euro-denominated bondsand other Fixed Income Instruments (as
definedin the Prospectus) of varying maturities. TheFund will seek
to maintain a high level ofdividend income by investing in a broad
array offixed income sectors which in the InvestmentAdvisor’s view
typically generate elevated levelsof income.
Fund Insights
The following affected performance during thereporting
period:
» Exposure to European duration contributedto positive
performance, as yields fell.
» Exposure to non-agency mortgage-backedsecurities (MBS)
contributed to absoluteperformance, as total returns on
thesesecurities were positive.
» Short exposure to UK duration contributed toabsolute
performance, as yields rose.
» Exposure to investment grade financialsdetracted from absolute
performance, asthese securities posted negativeexcess returns.
» Exposure to high yield corporates detractedfrom absolute
performance, as thesesecurities posted negative excess returns.
» Exposure to hard currency EM sovereign debtdetracted from
absolute performance, asspreads widened.
Semiannual Report 30 June 2018 23
-
Euro Long Average Duration Fund
Total Return Net of Fees and Expenses for the Period Ended 30
June 20181
6 Months ClassInception
Classes denominated in EUR
Institutional Class Accumulation Shares (Inception 21-Apr-2006)
3.79% 7.87%
Bloomberg Barclays Euro Government (Germany, France,
Netherlands) over 15 years Index2 4.46% 6.54%
1 Annualised performance for periods of at least one year,
otherwise cumulative.2 Benchmark Performance for the Euro Long
Average Duration Fund represents the following: 21 April 2006 to 31
March
2011 — (FTSE Citigroup Euro Broad Investment-Grade (EuroBIG)
Bond > 15 Years Index); 31 March 2011 to 31 January2012 — (FTSE
Citigroup Euro Broad Investment-Grade (EuroBIG) Bond AAA rated >
15 Years Index); 31 January 2012onwards — (Bloomberg Barclays Euro
Government (Germany, France, Netherlands) over 15 years Index).
Investment Objective and Strategy Overview
Euro Long Average Duration Fund seeks tomaximise total return,
consistent withpreservation of capital and prudent
investmentmanagement. The Fund seeks to achieve itsinvestment
objective by investing at leasttwo-thirds of its assets in a
diversified portfolioof Euro-denominated Fixed Income
Instruments(as defined in the Prospectus). Under normalmarket
conditions, at least two-thirds of theduration of the Fund will
derive from exposure toEuro-denominated government
and/orgovernment-related Fixed Income Instruments.
Fund Insights
The following affected performance during thereporting
period:
» Overweight exposure to US durationdetracted from relative
performance, asyields rose over all maturities.
» Allocations to select corporate bonds,particularly in the
Industrials sector,detracted from performance, as spreads forthis
sector widened over the first half ofthe year.
» Short exposure to the US dollar versus abasket of EM
currencies detracted fromperformance, as the US dollar
appreciated.
» An underweight to Italian durationcontributed to relative
performance, asyields fell.
24 PIMCO FUNDS: GLOBAL INVESTORS SERIES PLC
-
Euro Low Duration Fund
Total Return Net of Fees and Expenses for the Period Ended 30
June 20181
6 Months ClassInception
Classes denominated in EUR
Institutional Class Accumulation Shares (Inception 05-Jul-2011)
(0.61%) 1.88%
Class E Accumulation Shares (Inception 25-Mar-2013) (0.99%)
0.08%
Bloomberg Barclays Euro Aggregate ex Treasury 1-3 Year Index2
(0.04%) 1.71%3
1 Annualised performance for periods of at least one year,
otherwise cumulative.2 Benchmark Performance for the Euro Low
Duration Fund represents the following: June 30 2011 to September
30 2012 —
(PIMCO European Advantage Government 1-3 Year Bond Index);
September 30 2012 onwards — (Bloomberg Barclays EuroAggregate ex
Treasury 1-3 Year Index). Since inception benchmark return
calculated since June 30 2011.
3 Benchmark inception performance is calculated from the
inception date of the oldest share class.
Investment Objective and Strategy Overview
Euro Low Duration Fund seeks to maximise totalreturn, consistent
with preservation of capitaland prudent investment management. The
Fundseeks to achieve its investment objective byinvesting at least
two-thirds of its assets in adiversified portfolio of
Euro-denominated FixedIncome Instruments (as defined in
theProspectus) of varying maturities. The averageportfolio duration
of the Fund will normally varywithin two years (plus or minus) of
the durationof the Bloomberg Barclays Euro Aggregateex-Treasury 1-3
Year Index.
Fund Insights
The following affected performance during thereporting
period:
» Long exposure to select Swedish coveredbonds was positive for
relative performance,as these securities generated positivetotal
returns.
» Long exposure to select government-relatedsecurities was
positive for relativeperformance, as these securities
generatedpositive total returns.
» Long exposure to MXN was positive forrelative performance,
thanks to the positivecarry and appreciation relative to EUR.
» Exposure to short-maturity Italiangovernment bonds was
negative for relativeperformance, as yields sold off.
» Underweight to the long end of the Japaneseyield curve
detracted from relativeperformance, as yields rallied.
» Long exposure to select EM currencies,including RUB and TRY,
detracted fromrelative performance, as these currenciesdepreciated
relative to EUR.
Semiannual Report 30 June 2018 25
-
Euro Short-Term Fund
Total Return Net of Fees and Expenses for the Period Ended 30
June 20181
6 Months ClassInception
Classes denominated in EUR
Institutional Class Accumulation Shares (Inception 31-Jan-2006)
(0.82%) 1.56%
Institutional Class Income II Shares (Inception 06-May-2016)
(0.87%) (0.51%)
Class E Accumulation Shares (Inception 31-Mar-2006) (1.25%)
0.79%
1 Month Euribor Rate Index (0.19%) 1.09%2
1 Annualised performance for periods of at least one year,
otherwise cumulative.2 Benchmark inception performance is
calculated from the inception date of the oldest share class.
Investment Objective and Strategy Overview
Euro Short-Term Fund seeks maximum currentincome consistent with
the preservation ofcapital and daily liquidity. The Fund seeks
toachieve its investment objective by investing atleast two-thirds
of its assets in a diversifiedportfolio of Euro-denominated Fixed
IncomeInstruments (as defined in the Prospectus) withvarying
maturities although the average portfolioduration is not expected
to exceed one and ahalf years.
Fund Insights
The following affected performance during thereporting
period:
» Long exposure to select Swedish coveredbonds was positive for
absoluteperformance, as these securities generatedpositive total
returns.
» Long exposure to MXN was positive forabsolute performance,
thanks to thepositive carry.
» Long exposure to NOK was positive forabsolute performance, as
the currencyappreciated relative to EUR.
» Long exposure to Italian duration detractedfrom absolute
performance, as yieldssold off.
» Long exposure to European durationdetracted from absolute
performance due tonegative short-dated yields in the Eurozone.
» Long exposure to select EM currencies,including RUB and TRY,
detracted fromabsolute performance as these currenciesdepreciated
relative to EUR.
26 PIMCO FUNDS: GLOBAL INVESTORS SERIES PLC
-
Global Advantage Fund
Total Return Net of Fees and Expenses for the Period Ended 30
June 20181
6 Months ClassInception
Classes denominated in USD
Institutional Class Accumulation Shares (Inception 09-Jun-2009)
(2.10%) 3.40%
Class E Accumulation Shares (Inception 10-Dec-2010) (2.61%)
1.07%
Class E Income Shares (Inception 10-Dec-2010) (2.54%) 1.07%
PIMCO Global Advantage Bond Index (GLADI) (London Close) (2.44%)
2.82%2
Classes denominated in CHF
Institutional CHF (Partially Hedged) Class Income Shares
(Inception 02-Aug-2011) (1.41%) 2.59%
PIMCO Global Advantage Bond Index (GLADI) (CHF, Partially
Hedged) (London Close) (1.86%) 1.97%
Classes denominated in DKK
Institutional DKK (Partially Hedged) Class Accumulation Shares
(Inception 22-Mar-2013) (1.18%) 1.59%
PIMCO Global Advantage Bond Index (GLADI) (DKK, Partially
Hedged) (London Close) (1.53%) 0.88%
Classes denominated in EUR
Institutional EUR (Partially Hedged) Class Accumulation Shares
(Inception 24-May-2010) (1.16%) 3.12%
Class E EUR (Partially Hedged) Accumulation Shares (Inception
06-May-2010) (1.66%) 2.10%
PIMCO Global Advantage Bond Index (GLADI) (EUR, Partially
Hedged) (London Close) (1.51%) 2.63%2
Classes denominated in GBP
Institutional GBP (Partially Hedged) Class Accumulation Shares
(Inception 11-Jul-2012) (0.83%) 2.97%
PIMCO Global Advantage Bond Index (GLADI) (GBP, Partially
Hedged) (London Close) (1.20%) 2.44%
Classes denominated in NOK
Institutional NOK (Partially Hedged) Class Accumulation Shares
(Inception 05-Mar-2012) (1.31%) 4.46%
PIMCO Global Advantage Bond Index (GLADI) (NOK, Partially
Hedged) (London Close) (1.63%) 3.90%
1 Annualised performance for periods of at least one year,
otherwise cumulative.2 Benchmark inception performance is
calculated from the inception date of the oldest share class.
Investment Objective and Strategy Overview
Global Advantage Fund seeks to achievemaximum long-term return,
consistent with thepreservation of capital and prudent
investmentmanagement, by investing 80% of its assets in
adiversified portfolio of Fixed Income Instruments(as defined in
the Prospectus) that areeconomically tied to at least three
countries (oneof which may be the United States).
Fund Insights
The following affected performance during thereporting
period:
» US interest rate strategies contributed torelative
performance, primarily due to carryand instrument selection.
» An underweight to Italian durationcontributed to relative
performance, asyields rose.
» An underweight to investment grade creditspread risk
contributed to relativeperformance, as spreads widened.
» Exposure to non-agency mortgage-backedsecurities (MBS)
contributed to relativeperformance, as total returns on
thesesecurities were positive.
» Long exposure to a basket of high carryemerging market
currencies (ARS, TRY, RUB)detracted from relative performance,
asthese currencies depreciated versus theUS Dollar.
» Exposure to hard currency EM sovereign debtdetracted from
relative performance, asspreads widened.
» An underweight to Japanese durationdetracted from relative
performance, asyields fell.
Semiannual Report 30 June 2018 27
-
Global Advantage Real Return Fund
Total Return Net of Fees and Expenses for the Period Ended 30
June 20181
6 Months ClassInception
Classes denominated in USD
Institutional Class Accumulation Shares (Inception 29-Jul-2011)
(4.30%) (1.31%)
Class E Accumulation Shares (Inception 21-Dec-2012) (4.67%)
(3.61%)
Class Z Income Shares (Inception 08-Nov-2012) (3.92%)
(1.74%)
PIMCO Global Advantage Inflation-Linked Bond Index (USD
Unhedged) (3.61%) (0.72%)2
Classes denominated in CHF
Institutional CHF (Partially Hedged) Class Accumulation Shares
(Inception 27-Mar-2012) (3.14%) (0.22%)
PIMCO Global Advantage Inflation-Linked Bond Index (CHF Partial
Hedged) (2.56%) 0.30%
Classes denominated in EUR
Institutional EUR (Partially Hedged) Class Accumulation Shares
(Inception 29-Jul-2011) (2.75%) 0.85%
Institutional EUR (Partially Hedged) Class Income Shares
(Inception 05-Mar-2013) (2.72%) (1.42%)
Class E EUR (Partially Hedged) Accumulation Shares (Inception
21-Dec-2012) (3.13%) (1.93%)
Class G Institutional EUR (Partially Hedged) Income Shares
(Inception 28-Feb-2014) (2.70%) 0.77%
PIMCO Global Advantage Inflation-Linked Bond Index (EUR Partial
Hedged) (2.09%) 1.47%2
Classes denominated in GBP
Institutional GBP (Partially Hedged) Class Income Shares
(Inception 15-Feb-2012) (2.53%) 0.90%
PIMCO Global Advantage Inflation-Linked Bond Index (GBP Partial
Hedged) (1.97%) 1.49%
1 Annualised performance for periods of at least one year,
otherwise cumulative.2 Benchmark inception performance is
calculated from the inception date of the oldest share class.
Investment Objective and Strategy Overview
Global Advantage Real Return Fund seeks tomaximise real return,
consistent withpreservation of real capital and prudentinvestment
management, by investing at least70% of its net assets in global,
developed andemerging market, local currency inflation-indexed
Fixed Income Instruments (as defined inthe Prospectus).
Fund Insights
The following affected performance during thereporting
period:
» An underweight to the long-end of theBrazilian real yield
curve benefited relativeperformance, as respective real yieldsmoved
higher.
» An underweight to US nominal durationbenefited relative
performance, as yieldsmoved higher.
» Positioning within the UK nominal yieldcurve, notably
underweight to the 10-yearportion in January, benefited
relativeperformance, as the UK 10-year nominalyield rose.
» An overweight to Brazilian nominal durationdetracted from
relative performance, asBrazilian nominal yields broadlymoved
higher.
» An overweight to US real duration detractedfrom relative
performance, as US real yieldsmoved higher.
» An overweight to Italian ILBs detracted fromrelative
performance, as Italian real yields,broadly, moved higher.
28 PIMCO FUNDS: GLOBAL INVESTORS SERIES PLC
-
Global Bond ESG Fund
Total Return Net of Fees and Expenses for the Period Ended 30
June 20181
6 Months ClassInception
Classes denominated in USD
Institutional Class Accumulation Shares (Inception 12-Jan-2017)
0.00% 2.58%
Class E Income Shares (Inception 12-Jan-2017) (0.46%) 1.70%
Bloomberg Barclays Global Aggregate (USD Hedged) Index 0.07%
2.01%
Classes denominated in AUD
Class Z AUD (Hedged) Income Shares (Inception 12-Jan-2017) 0.26%
3.53%
Bloomberg Barclays Global Aggregate Index (AUD Hedged) 0.06%
2.42%
Classes denominated in CHF
Institutional CHF (Hedged) Class Accumulation Shares (Inception
12-Jan-2017) (1.48%) 0.00%
Bloomberg Barclays Global Aggregate (CHF Hedged) Index (1.42%)
(0.63%)
Classes denominated in EUR
Institutional EUR (Hedged) Class Accumulation Shares (Inception
12-Jan-2017) (1.18%) 0.48%
Institutional EUR (Hedged) Class Income Shares (Inception
12-Jan-2017) (1.22%) 0.41%
Class E EUR (Hedged) Accumulation Shares (Inception 09-Feb-2017)
(1.68%) (0.29%)
Bloomberg Barclays Global Aggregate (EUR Hedged) Index (1.21%)
(0.16%)2
Classes denominated in GBP
Institutional GBP (Hedged) Class Income Shares (Inception
12-Jan-2017) (0.71%) 1.33%
Bloomberg Barclays Global Aggregate (GBP Hedged) Index (0.71%)
0.75%
Classes denominated in NOK
Institutional NOK (Hedged) Class Accumulation Shares (Inception
12-Jan-2017) (0.58%) 1.77%
Bloomberg Barclays Global Aggregate (NOK Hedged) Index (0.51%)
1.15%
Classes denominated in NZD
Institutional NZD (Hedged) Class Income Shares (Inception
05-Apr-2017) 0.09% 2.86%
Bloomberg Barclays Global Aggregate (NZD Hedged) Index 0.21%
2.57%
1 Annualised performance for periods of at least one year,
otherwise cumulative.2 Benchmark inception performance is
calculated from the inception date of the oldest share class.
Investment Objective and Strategy Overview
Global Bond ESG Fund seeks to maximise totalreturn, consistent
with preservation of capitaland prudent investment management
byinvesting at least two-thirds of its assets in adiversified
portfolio of Fixed Income Instruments(as defined in the Prospectus)
denominated inmajor world currencies.
Fund Insights
The following affected performance during thereporting
period:
» An underweight to Italian duration waspositive for relative
performance, asyields rose.
» An underweight to UK duration was positivefor relative
performance, as yields sold off.
» Exposure to non-agency mortgage-backedsecurities (MBS)
contributed to relativeperformance, as total returns on
thesesecurities were positive.
» An underweight to investment grade creditspread risk
contributed to relativeperformance, as spreads widened.
» Long exposure to a basket of EmergingMarket currencies (ARS,
CNH, TRY, RUB)detracted from relative performance, asthese
currencies depreciated versus the USD.
» An underweight to the long end of theJapanese yield curve
detracted from relativeperformance, as yields rallied.
» Exposure to high-yie