- For Income+ Preserve, the yield to maturity will improve from 6.4% to 6.6%,and the distribution yield will increase from 3.9% p.a. to 4.4% p.a, back to our target rangel of 4.0 – 4.5% p.a.
- ForIncome+ Enhance, the yield to maturity will remain at 7.2%, with
Dear Client,
We recommend the following portfolio optimization for your Income+ portfolios, aligned with PIMCO’s asset allocation guidance.
Why We Carry Out the Portfolio Optimisation
This portfolio optimisation exercise aims to address the decline in the distribution yield for Income+ Preserve, which has fallen below our target range of 4.0% to 4.5%. The adjustments will help bring the distribution yield back to the desired level.
The updated target allocations incorporate PIMCO’s latest outlook based on current market conditions. We anticipate these changes will enhance the resilience of your portfolios and improve the diversification of income sources.
Impact on Your Portfolios
After the recommended portfolio changes, you will see these improvements for your portfolios:
