Investors should consider the investment objectives, risks, charges and expenses of the funds carefully before investing. This and other information are contained in the fund’s prospectus and summary prospectus, if available, which may be obtained by contacting your investment professional or PIMCO representative. Click here for a complete list of the PIMCO Funds prospectuses and summary prospectuses. Please read them carefully before you invest or send money.
A word about risk:
Investing in the bond market is subject to risks, including market, interest rate, issuer, credit, inflation risk, and liquidity risk. The value of most bonds and bond strategies are impacted by changes in interest rates. Bonds and bond strategies with longer durations tend to be more sensitive and volatile than those with shorter durations; bond prices generally fall as interest rates rise, and the current low interest rate environment increases this risk. Current reductions in bond counterparty capacity may contribute to decreased market liquidity and increased price volatility. Bond investments may be worth more or less than the original cost when redeemed. Investing in foreign denominated and/or domiciled securities may involve heightened risk due to currency fluctuations, and economic and political risks, which may be enhanced in emerging markets. Mortgage- and asset-backed securities may be sensitive to changes in interest rates, subject to early repayment risk, and their value may fluctuate in response to the market's perception of issuer creditworthiness; while generally supported by some form of government or private guarantee, there is no assurance that private guarantors will meet their obligations. High-yield, lower-rated, securities involve greater risk than higher-rated securities; portfolios that invest in them may be subject to greater levels of credit and liquidity risk than portfolios that do not. Equities may decline in value due to both real and perceived general market, economic, and industry conditions. Derivatives may involve certain costs and risks, such as liquidity, interest rate, market, credit, management and the risk that a position could not be closed when most advantageous. Investing in derivatives could lose more than the amount invested. Diversification does not ensure against loss. Investors should consult their investment professional prior to making an investment decision.
Chart 1: Barclays Global Aggregate Treasury ex U.S. Index, S&P 500 Dividend Yield, Barclays CMBS 2.0 AAA 8.5+ Yr Index, JPMorgan CLOIE AAA CLO 2.0 Index, Barclays U.S. Credit Index, JPMorgan Leveraged Loan BB/B Index, Barclays U.S. HY ex-Energy and Metals/Mining Index. Chart 2: BofA ML CMBS 10yr AAA, BofA ML CLO 2.0 AAA, BofA ML LCF Subprime, Barclays US Credit, JPMorgan Leveraged Loan, Barclays US HY ex energy and metals & mining.
Barclays U.S. Aggregate Index represents securities that are SEC-registered, taxable and dollar denominated. The index covers the U.S. investment grade fixed rate bond market, with index components for government and corporate securities, mortgage pass-through securities and asset-backed securities. These major sectors are subdivided into more specific indexes that are calculated and reported on a regular basis. The Barclays Municipal Bond Index is a rules-based, market-value-weighted index engineered for the long-term tax-exempt bond market. They must have an outstanding par value of at least $7 million and must be issued as part of a transaction of at least $75 million. The Barclays High Yield Municipal Bond Index is a rules-based, market-value-weighted index that measures the non-investment grade and non-rated U.S. tax-exempt bond market. Bonds must have an outstanding par value of at least $3 million and must be issued as part of a transaction of at least $20 million. The Barclays U.S. Corporate High-Yield Index covers the USD-denominated, non-investment grade, fixed-rate, taxable corporate bond market. Securities are classified as high yield if the middle rating of Moody’s, Fitch and S&P is Ba1/BB+/BB+ or below. The index excludes Emerging Markets debt. Barclays U.S. Credit Index is an unmanaged index comprised of publicly issued U.S. corporate and specified non-U.S. debentures and secured notes that meet the specified maturity, liquidity and quality requirements. To qualify, bonds must be SEC-registered. The Barclays U.S. Treasury Index is a measure of the public obligations of the U.S. Treasury. The Russell 2000 Index is an unmanaged index generally representative of the 2,000 smallest companies in the Russell 3000 Index, which represents approximately 10% of the total market capitalization of the Russell 3000 Index. The S&P 500 Index is an unmanaged market index generally considered representative of the stock market as a whole. The index focuses on the Large-Cap segment of the U.S. equities market. It is not possible to invest directly in an unmanaged index.
Past performance is not a guarantee or a reliable indicator of future results. Morningstar ratings are only shown for those funds that have achieved a 4 or 5 star rating. Ratings for other share classes are either lower or not available. The minimum initial investment for the Institutional class shares is $1 million; however, it may be modified for certain financial intermediaries who submit trades on behalf of eligible investors. Morningstar Rating as of 30 September 2016 for the Institutional Class shares; other classes may have different performance characteristics. For funds with at least a 3-yr. history, Morningstar calculates a Morningstar Rating based on a risk-adjusted return measure that accounts for variation in a fund's monthly performance (including the effects of sales charges, loads and redemption fees) with an emphasis on downward variations and consistent performance. The top 10% of funds in each category receive 5 stars, the next 22.5% receive 4 stars, the next 35% receive 3 stars, the next 22.5% receive 2 stars and the bottom 10% receive 1 star. The Overall Morningstar Rating is a weighted average of the performance figures for its 3-, 5- and 10-yr (if applicable) Morningstar Rating metrics. Morningstar, Inc.® 2016. All rights reserved. The information contained herein; (1) is proprietary to Morningstar and/or its affiliates; (2) may not be copied or distributed; (3) is not warranted to be accurate, complete or timely. Neither Morningstar nor its content providers are responsible for any damages or losses arising from any use of this information. Past performance is no guarantee of future results. Hollow stars represent a class of shares with inception dates that are different from the inception date of the fund. For the period prior to the inception date of these shares, performance information is based on the performance of the fund's Institutional Class shares, adjusted to reflect the actual distribution and/or service (12b-1) fees and other expenses paid by the newer share class.
PIMCO Investment Grade Corporate Bond Fund (PIGIX): Overall rating for the Corporate Bond category: Fund ratings are out of 5 stars: Overall 5 Stars (171 funds rated); 3 Yrs. 4 Stars (171 funds rated); 5 Yrs. 5 Stars (146 funds rated); 10 Yrs. 5 Stars (93 funds rated). PIMCO Long-Term Credit Fund (PTCIX): Overall rating for the Long-Term Bond category: Fund ratings are out of 5 stars: Overall 4 Stars (16 funds rated); 3 Yrs. 5 Stars (16 funds rated); 5 Yrs. 4 Stars (13 funds rated). PIMCO High Yield Spectrum Fund (PHSIX): Overall rating for the High Yield Bond category: Fund ratings are out of 5 stars: Overall 5 Stars (659 funds rated); 3 Yrs. 4 Stars (659 funds rated); 5 Yrs. 5 Stars (524 funds rated). PIMCO High Yield Fund (PHIYX): Overall rating for the High Yield Bond category: Fund ratings are out of 5 stars: Overall 4 Stars (659 funds rated); 3 Yrs. 4 Stars (659 funds rated); 5 Yrs. 4 Stars (524 funds rated); 10 Yrs. 4 Stars (368 funds rated). PIMCO Diversified Income Fund (PDIIX): Overall rating for the Multisector Bond category: Fund ratings are out of 5 stars: Overall 4 Stars (254 funds rated); 3 Yrs. 4 Stars (254 funds rated); 5 Yrs. 4 Stars (201 funds rated); 10 Yrs. 4 Stars (105 funds rated). PIMCO Credit Absolute Return Fund (PCARX): Overall rating for the Long-Short Credit category Fund ratings are out of 5 stars: Overall 4 Stars (31 funds rated); 3 Yrs. 4 Stars (31 funds rated); 5 Yrs. 4 Stars (22 funds rated).
This material has been distributed for informational purposes only and should not be considered as investment advice or a recommendation of any particular security, strategy or investment product. No part of this material may be reproduced in any form, or referred to in any other publication, without express written permission. PIMCO is a trademark of Allianz Asset Management of America L.P. in the United States and throughout the world. PIMCO Investments LLC, distributor, 1633 Broadway, New York, NY 10019, is a company of PIMCO. ©2016, PIMCO