Analyst Report
Morningstar's Take

by Eric Jacobson

Pimco GIS Diversified Income combines broad resources and a proven process to invest in credit globally. Its lowest-priced share classes earn a Morningstar Analyst Rating of Gold, while the others are rated Silver or Bronze.The strategy uses a custom benchmark that comprises roughly a third each in investment-grade corporates, high-yield corporates, and emerging-markets debt across the globe. That gives the bogy more emerging-markets and global credit exposure than the average multisector bond Morningstar Category offering, which has the potential to make this strategy a bit more aggressive than many peers.As such, the portfolio tends to have a more credit-sensitive profile than its typical rival, even when stacked defensively versus its bogy. So, even though the strategy was less aggressive than its benchmark during 2019's rally and trailed it modestly for the year, it still bested most of its category peers. Similarly, while comparatively cautious versus its benchmark going into the coronavirus-driven sell-off, the strategy fell behind its category’s average during that stretch but bounced back well thereafter, ending 2020 above its benchmark and the median return of unique category peers. Despite the sell-off, comanager Sonali Pier and Pimco remained cautious thereafter given uncertainty on the duration of the pandemic and the success of efforts to contain it. But while they were circumspect overall, the portfolio’s credit-market sensitivity was modestly higher than its benchmark’s at the end of April 2021 for the first time in a couple of years.That caution is crucial for a strategy with so many moving parts. Few firms can compete with Pimco’s resources, and this strategy benefits from comanagers Eve Tournier, CIO Dan Ivascyn, and Alfred Murata; the latter two manage Pimco Income PIMIX and are past Morningstar Fund Managers of the Year. The strategy’s overall performance has been strong, too, with returns in the category's best quartile and average volatility over their tenure.

Morningstar Analyst Rating™
To find out how Morningstar rates a fund click here.
Morningstar Pillars
A mix of people designed to take advantage of Pimco's global capabilities.
ParentAbove Average
Pimco's investment culture is robust.
A more fitting name might be diversified global credit.
An impressive record.
Morningstar Analyst RatingMorningstar evaluates funds based on five key pillars, which it's analysts believe lead to funds that are most likely to outperform over the long term on a risk-adjusted basis.
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A fim de prover consistência para todos os relatórios fornecidos por diferentes Asset Managers, os data points calculados apresentados são gerados usando uma metodologia de cálculo proprietária da Morningstar, que pode ser conferida com mais detalhes em(https://www.morningstar.com/research/signature)