Docstoc

pimco bond fund

Document Sample
pimco bond fund Powered By Docstoc
					PIMCO Bond Fund Protected Power Note
Newsletter - November 2005



Product Stucture

      The PIMCO Bond Fund Protected Power Note (Power Note) is a 2.5 year, 100%
      Principal Protected Note linked to the performance of the PIMCO Bond Fund Basket.
      The initial basket is placed under an Index which comprises:
                                                                                                                                   PIMCO EMERGING MARKET BOND FUND
                                                                                                                        20.8
                                                                                                                        20.6
         Equity Component; and




                                                                                               Net Asset Value (USD)
                                                                                                                        20.4
         Cash Component                                                                                                 20.2
                                                                                                                          20
                                                                                                                        19.8
                                                                                                                        19.6
      On Trade Date, the Equity Component will be 100% invested in the below PIMCO                                      19.4
      Bond Fund Basket, which consists of the following Funds:




                                                                                                                                   23/9/2005




                                                                                                                                                                                   11/10/2005
                                                                                                                                                                                                14/10/2005
                                                                                                                                                                                                             19/10/2005
                                                                                                                                                                                                                          24/10/2005
                                                                                                                                                                                                                                       27/10/2005
                                                                                                                                               28/9/2005


                                                                                                                                                                       6/10/2005




                                                                                                                                                                                                                                                                            10/11/2005
                                                                                                                                                           3/10/2005




                                                                                                                                                                                                                                                                                         15/11/2005
                                                                                                                                                                                                                                                                                                      18/11/2005
                                                                                                                                                                                                                                                    2/11/2005




                                                                                                                                                                                                                                                                                                                   23/11/2005
                                                                                                                                                                                                                                                                7/11/2005
                                                                                                                                      Source: Bloomberg
                                                                                                                                      Date: Nov 2005
       Fund Name                           ISIN Code     Initial Allocation   Bloomberg Code

       PIMCO Emerging Markets Bond “HR”   IE0032314217          1/3            PIMEHRA ID
                                                                                                                                                       PIMCO HIGH YIELD BOND FUND
                                                                                                                        14.45
       PIMCO High Yield Bond “HR”         IE0032313680          1/3            PIMHHRA ID                                14.4




                                                                                                Net Asset Value (USD)
                                                                                                                        14.35
       PIMCO Total Return Bond “HR”       IE0032313466          1/3            PIMTHRA ID                                14.3
                                                                                                                        14.25
                                                                                                                         14.2
                                                                                                                        14.15
                                                                                                                         14.1
      Brief introduction of the 3 PIMCO Bond funds:                                                                     14.05
                                                                                                                           14




                                                                                                                                   23/9/2005




                                                                                                                                                                                   11/10/2005
                                                                                                                                                                                                14/10/2005
                                                                                                                                                                                                             19/10/2005
                                                                                                                                                                                                                          24/10/2005
                                                                                                                                               28/9/2005
                                                                                                                                                           3/10/2005




                                                                                                                                                                                                                                       27/10/2005




                                                                                                                                                                                                                                                                            10/11/2005
                                                                                                                                                                                                                                                                                         15/11/2005
                                                                                                                                                                                                                                                                                                      18/11/2005
                                                                                                                                                                                                                                                                                                                   23/11/2005
                                                                                                                                                                       6/10/2005




                                                                                                                                                                                                                                                    2/11/2005
                                                                                                                                                                                                                                                                7/11/2005
PIMCO Emerging Markets Bond Fund                                                                                                      Source: Bloomberg
                                                                                                                                      Date: Nov 2005
      Portfolio Structure
                                                                                                                                               PIMCO TOTAL RETURN BOND FUND
         The Fund focuses on fixed income securities of issuers that are economically                                   15.8
                                                                                                                        15.7
         tied to countries with emerging securities markets.
                                                                                                Net Asset Value (USD)




                                                                                                                        15.6

         The Fund’s average duration (sensitivity to interest rates) will vary based on the                             15.5
                                                                                                                        15.4
         Investment Adviser’s forecast for interest rates and, under normal market                                      15.3
                                                                                                                        15.2
         conditions, is not expected to exceed eight years.                                                             15.1
         The Fund will select the country and currency composition based on its evaluation
                                                                                                                                   23/9/2005




                                                                                                                                                                                   11/10/2005
                                                                                                                                                                                                14/10/2005
                                                                                                                                                                                                             19/10/2005
                                                                                                                                                                                                                          24/10/2005
                                                                                                                                               28/9/2005




                                                                                                                                                                                                                                                                            10/11/2005
                                                                                                                                                           3/10/2005




                                                                                                                                                                                                                                       27/10/2005




                                                                                                                                                                                                                                                                                         15/11/2005
                                                                                                                                                                                                                                                                                                      18/11/2005
                                                                                                                                                                                                                                                                                                                   23/11/2005
                                                                                                                                                                       6/10/2005




                                                                                                                                                                                                                                                    2/11/2005
                                                                                                                                                                                                                                                                7/11/2005




         of relative interest rates, inflation rates, exchange rates, monetary and fiscal
         policies, trade and current account balances, and any other specific factors the                                             Source: Bloomberg
         Investment Adviser believes to be relevant.                                                                                  Date: Nov 2005




PIMCO High Yield Bond Fund
                                                                                                                                Note: Past performance is in no way indicative
      Portfolio Structure                                                                                                             of the future performance of the product.


         The Fund focuses on higher yielding, intermediate maturity, fixed income
         securities.
         The Fund maintains an average duration (sensitivity to interest rates) ranging
         between two and six years, based on the Investment Adviser’s forecast for interest
         rates.
         Investments are made primarily in corporate fixed income securities, but can
         include U.S. government securities, mortgage and other asset-backed securities,
         euro-denominated and U.S. dollar-denominated securities of non-U.S. issuers,
         and money market instruments.
PIMCO Total Return Bond Fund
      Portfolio Structure

           The Fund focuses on intermediate maturity, fixed income securities.
           The Fund maintains an average duration (sensitivity to interest rates) ranging between three and six years, based on the
           Investment Adviser’s forecast for interest rates.
           Investments are made in fixed income securities and can include U.S. government and corporate bond securities, mortgage
           and other asset-backed securities, U.S.dollar and non-U.S. dollar-denominated securities of non-U.S. issuers and money
           market instruments.

Power Note Product Performance
      The note was at a high of 100.60% and is currently trading at mid price of 98.35% (as shown in the graph below) with bid/offer at
      97.35%/99.35%. The graph below shows the price behavior of the Note since launch.


              98.50

              98.40

              98.30

              98.20

              98.10

              98.00

              97.90

              97.80

              97.70
                             03.11.05     09.11.05     15.11.05      21.11.05    25.11.05


            Source: www.abnamromarkets.com       Date: 30 Nov 2005



      The basket on the whole, is doing better this month with strength from the Emerging Market Bond Fund, which is up almost 1%.
      The remaining two funds are still down by approximately 0.50%. There is still pressure from the increasing interest rates environment
      on the bond funds in general. With respect to the note, US interest rates are still on the rising trend, which in turn has held the
      note price steady over the past month. This has offset the slight overall gain in the basket of bond funds.


Disclaimer
      This document is not an expression of an offer to sell nor of a solicitation of an offer to enter into a transaction and all expressions of opinion used herein are subject to change
      without notice. The terms set forth herein are intended for discussion purposes only and are subject to the final expression of the terms of the transaction, if the transaction takes
      place. The final terms of the transaction will be set forth in the final terms sheet, in any applicable agreement and/or confirmation. Further, although some of the information
      provided herein may have been obtained from various published and unpublished sources considered to be reliable, neither BNP Paribas nor any of its affiliates make any
      representation as to its accuracy or completeness. The contents of this document are confidential and intended solely for the use of BNP Paribas and the person to whom this
      document has been delivered. In the absence of any provision to the contrary, investment in the product described herein is not guaranteed by BNP Paribas or its affiliates and is
      subject to investment risks, including possible loss of the principal invested. Such investment may also be restricted by law in certain jurisdictions. Prior to making any investment
      decision, investors should fully understand the financial risks and merits, as well as the legal, tax and accounting implications, with the help of their personal advisors if necessary,
      and make their own determination on the suitability of such decision. BNP Paribas will not assume any responsibility for the financial consequences of the client trading in the
      financial transactions described in this document.
      While we consider the information herein reliable and ABN AMRO Bank N.V. make no representation as to its accuracy or completeness. The information and opinions contained in
      the document are for information purposes only. Past results do not guarantee and are not indicative of future performance. This document contains promotional material, is issued
      for the purpose for promotion, and should not be construed as a solicitation or offer, legal, tax or other advise, or recommendation to engage in any transaction.
      ABN AMRO Bank N.V. or any of its associates may have a long or short position, purchase or sell on an agency or principal basis, make a market in or engage in other transactions,
      provide investment banking, commercial banking, credit or other services with the issuer of any security or financial instrument underlying the derivative product entered with you.
      Prospective investors should understand the risks involving these products and should reach an investment decision only after careful consideration, with their advisers, of the
      suitability of investing in these products in light of their particular investment considerations.
      This message which is subject to change without notice is provided for informational purposes and should not be construed as a solicitation or offer to buy or sell any securities or
      related financial instruments. While ABN AMRO makes reasonable efforts to obtain information from sources, which it believes to be reliable, ABN AMRO makes no representation
      or warranty of any kind, either express or implied as to the accuracy, reliability, up-to-dateness or completeness of the information contained herein. Nothing herein constitutes an
      investment, legal, tax or other advice nor is it to be relied on in any investment or decision. Certain services and products are subject to legal restrictions and therefore may not be
      available for residents of certain countries.
      You should obtain relevant and specific professional advice before making any investment decision. The past performance is not necessarily a guide to the future result of an
      investment. The value of investments may go up or down due to various factors including but not limited to changes in rates of foreign exchange and investors may not get back the
      amount invested. ABN AMRO disclaims any responsibility and liability whatsoever in this respect.. The Notes/Certificates do not represent shares in an investment fund and are
      therefore not subject to the supervision of the Swiss Federal Banking Commission (Eidgenossische Bankenkommission). Hence, investors in the Notes are not eligible for the
      specific investor protection under the Swiss Federal Law on Investment Funds.