Why are there occurrences of poorer returns for Mari Invest Income in March 2026?

Why are there occurrences of poorer returns for Mari Invest Income in March 2026?

You may refer here for reasons why there might be a negative Total Return.

Under Mari Invest Income, we distribute the PIMCO GIS Income Fund Admin SGD Hedged - Inc. The primary investment objective of the Fund is to seek high current income, consistent with prudent investment management. Long-term capital appreciation is a secondary objective.

The Fund offered through Mari Invest Income is not immune to market fluctuations and similar to all other investments, its Unit Price may increase, decrease, or remain the same over time. As such, a decline in the Unit Price of the Fund may result in negative Total Return.

Unit Price movement and Payout Rate contribute to Total Return. Therefore, a decline in the Unit Price of the Fund may, at times, result in the Total Return being lower than the Payout Rate.

Market Overview (as of 19 March 2026)

PIMCO Insights: Watch a short video on PIMCO’s perspectives on the Middle East conflict here and a podcast here on the potential implications for the economy and monetary policy.

Recent geopolitical tensions have increased uncertainty in global markets. The ongoing military conflict in Iran and the Middle East has pushed oil prices higher, as investors worry about potential disruptions to the global flow of oil and natural gas. So far, the market reaction appears focused on higher inflation risks, since energy costs affect transport, utilities and everyday goods.

Developed market government bond yields have moved higher in response to inflation concerns. Month-to-date as of 19 March 2026, the US 10 Year Treasury yield rose by 0.31%; yields for 10 Year government bonds in Germany and the UK increased by 0.32% and 0.61% respectively. Bond prices have an inverse relationship with interest rates: when interest rates rise, bond prices fall. The rise in yields has led to a broad decline in bond markets, with US bonds (represented by the Bloomberg US Aggregate Index) falling 1.6% and global bonds (represented by the Bloomberg Global Aggregate Index) down 1.6%.

Equity markets are also experiencing a pullback, as investors are in risk-off mode and remain sceptical that near term political efforts will lead to a swift resolution of the conflict. Month-to-date as of 19 March 2026, the S&P 500 Index is down 3.9% and the MSCI Europe Index has declined 7.7%.

^{As of 19 March 2026. Source: Bloomberg.}

^{bps stands for basis points. 1bp = 0.01%.}

^{Past performance is not a guarantee or reliable indicator of future results.}

^{As of 19 March 2026. Source: Bloomberg.}

^{Past performance is not a guarantee or reliable indicator of future results. It is not possible to invest directly in an unmanaged index.}

PIMCO GIS Income Fund Performance Update (as of 19 March 2026)

Against this backdrop, the recent pullback in PIMCO GIS Income Fund’s performance reflects short-term market volatility due the rise in global bond interest rates, rather than any weakening in credit quality or direct exposure to the conflict. Bond prices move inversely to interest rates, meaning that as interest rates rise, bond prices typically fall, which created short‑term pressure on the Fund’s unit price.

How has PIMCO GIS Income Fund performed in past crises?

As the PIMCO GIS Income Fund Admin SGD Hedged - Inc has a long-standing track record since 2012, the Fund has successfully navigated historical periods of market volatility through an active investment approach to global fixed income markets. The Fund’s flexible and high quality focus has allowed the strategy to be resilient through uncertain market conditions, and also take advantage of opportunities following such periods of market shocks.

Below, we detail 5 market events, where the Fund’s performance exhibited negative returns, and the performance 6/12 months after.

Note: “Drawdown” denotes the Fund’s worst performance, based on the largest decline of the investment.

^{As of 28 February 2026, Source: PIMCO. Past performance is not a guarantee or reliable indicator of future results.}

^{Drawdown Dates include: 2013 Taper Tantrum - start: 4/30/2013, trough: 6/30/2013; 2015 Energy Sell-off - start: 5/31/2015; trough: 9/30/2015; 2020 Covid-19 - start: 1/31/2020, trough: 3/31/2020; 2022 Rising Rates - start: 8/31/2021, trough: 9/30/2022. 2025 Liberation Day Tariffs – start: 4/2/2025, trough: 4/30/2025}

You may also refer here for how to check the worst past fund performance within past 1-Year.

What lies ahead for PIMCO GIS Income Fund?

While not immune to short-term volatility, PIMCO GIS Income Fund’s Yield-To-Maturity¹ of 6.1% (as of 28 Feb 2026) acts as a substantial cushion against an increase in interest rates to protect against drawdowns.

The Fund maintains a high-quality AA- rated² portfolio which is diversified globally, across different fixed income sectors. This high-quality focus is expected to be resilient if economic weakness starts to materialize. The portfolio of >7,000 holdings help to reduce concentration risk.

The Fund adopts an active and flexible investment approach with a focus on quality, diversification and liquidity. The heightened volatility in markets today presents an opportunity for the Fund to capitalize on short-term over-reactions. While market conditions remain highly fluid, the inflationary shock from the Middle East conflict is more likely to be temporary, rather than structural. Today’s environment appears to be very different from the Russia/Ukraine conflict in 2022. Unlike previous years, where inflation pressures were more structural, the current situation could reverse quickly through more energy production, lower energy demand, or a swifter resolution to the conflict.

Based on information provided by PIMCO, as of 19 March 2026.

Payouts are not guaranteed and will be reviewed periodically by the fund manager. Historical payouts are not indicative of future payouts. Payouts may be made out of either income and/or capital of the fund. Historical performance of the fund or the fund manager is not indicative of future performance of the fund or the fund manager. Returns may vary and are not guaranteed.

¹PIMCO calculates a Fund's Estimated Yield to Maturity by averaging the yield to maturity of each security held in the Fund on a market weighted basis. PIMCO sources each security's yield to maturity from PIMCO's Portfolio Analytics database. When not available in PIMCO's Portfolio Analytics database, PIMCO sources the security's yield to maturity from Bloomberg. When not available in either database, PIMCO will assign a yield to maturity for that security from a PIMCO matrix based on prior data. The source data used in such circumstances is a static metric and PIMCO makes no representation as to the accuracy of the data for the purposes of calculating the Estimated Yield to Maturity. The Estimated Yield to Maturity is provided for illustrative purposes only and should not be relied upon as a primary basis for an investment decision and should not be interpreted as a guarantee or prediction of future performance of the Fund or the likely returns of any investment.

²Average Credit Quality (ACQ) is calculated by PIMCO using an internal proprietary calculation methodology and ranges from AAA (highest) to D (lowest); the portfolio contained herein is not reflective of individual ratings by an independent rating agency. ACQ is a market-weighted average of the credit ratings of the credit instruments and holdings which create bilateral counterparty risk, excluding equities and certain other instruments. In calculating the ACQ of a portfolio, PIMCO generally uses the highest of the ratings of S&P, Moody’s or Fitch assigned to each issuer held by the portfolio. If an issue or issuer is unrated, it is generally assigned a rating by PIMCO. A significant portion of a portfolio’s ACQ may be derived from ratings assigned by PIMCO. ACQ is calculated on a daily basis for each portfolio and will change over time as the ratings for individual securities held in the portfolio change or as instruments are added and removed from the portfolio. In general, instruments are weighted at their market value. Certain derivatives, such as credit default swaps, are weighted at “bond equivalent value,” which is the notional amount of the instrument adjusted by the current gain or loss on the position. Certain unrated instruments are not assigned a rating by PIMCO (such as OTC Credit Spreads, Money Market futures, Equity futures, and common stock) and are excluded from the ACQ calculation. This could lead to an under- estimation and under-statement of the credit risk of a portfolio. The portfolio itself has not been individually rated by an independent rating agency. The credit quality of a particular security or group of securities does not ensure the quality, stability or safety of the entire portfolio. PIMCO-assigned ratings used in the calculation may not be representative of PIMCO’s current views should the security review have occurred on a date other than the date that this calculation was generated, which will generally be the case, or should an event that could affect a credit rating have occurred.