PIMCO Global Income Opportunities Fund (PGI.UN.TO) WACC Analysis

As of May 22, 2025, PIMCO Global Income Opportunities Fund (PGI.UN.TO) carries a Weighted Average Cost of Capital (WACC) of 6.7%. WACC reflects the blended rate PIMCO Global Income Opportunities Fund must pay to both equity and debt holders.

Within that, the cost of equity is 7.2%, the cost of debt is 4.4%, and the effective tax rate is 25.9%.

Breakdown of WACC Components

• Long-term bond rate: 3.2% – 3.7%
• Equity market risk premium: 5.1% – 6.1%
• Adjusted beta: 0.79 – 0.8
• Additional risk adjustment: 0.0% – 0.5%
• Debt-to-equity ratio: 0.45

What It Means for Investors

With a selected WACC of 6.7%, PIMCO Global Income Opportunities Fund must ensure any new investment returns exceed this threshold to generate shareholder value. This level reflects an attractive low cost of capital.