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PIMCO Global Advantage Strategy Bd A PGSAX Sustainability

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Sustainability Analysis

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Sustainability Summary

PIMCO Global Advantage Strategy Bd Fund has several promising attributes that may appeal to sustainability-focused investors.

The ESG risk of PIMCO Global Advantage Strategy Bd Fund's holdings is comparable to its peers in the Global Fixed Income category, thus earning an average Morningstar Sustainability Rating of 3 globes. Funds in the same category rated 4 or 5 globes tend to hold securities less exposed to ESG risk. ESG risk measures the degree to which material environmental, social, and governance issues, such as climate change, biodiversity, human capital, as well as bribery and corruption, could affect valuations. ESG risk differs from impact, which is about driving positive environmental and social outcomes for society’s benefit.

One key area of strength for PIMCO Global Advantage Strategy Bd Fund is its low Morningstar Portfolio Carbon Risk Score of 2.95 and very low fossil fuel exposure over the past 12 months, which earns it the Morningstar Low Carbon Designation. Thus, the companies held in the portfolio are in general alignment with the transition to a low-carbon economy.

One potential issue for a sustainability-focused investor is that PIMCO Global Advantage Strategy Bd Fund doesn’t have an ESG-focused mandate. Funds with an ESG-focused mandate are more likely to align with the expectations of an investor who cares about sustainability issues.

The fund has a modest level of exposure (5.56%) to companies with high or severe controversies. Companies with controversies are involved in incidents such as corruption, employee abuses, and that pose some degree of business risks to the company. Severe and high controversies can have significant financial repercussions, ranging from legal penalties to consumer boycotts. In addition, they controversies can damage the reputation of both companies themselves and their shareholders.

ESG Commitment Level Asset Manager