Top DC Investment Ideas


These strategies – all rated highly by Morningstar, Retirement Plan Advisory Group and others – may help plan sponsors build best-in-class retirement-plan menus.

PIMCO Fund
Overall Morningstar Rating
Morningstar Category
% of Peer Group Beaten
Gross Expense Ratio
Morningstar Fee Level
RPAG Score

(956 funds)

Intermediate-Term Bond

3 Yr - 36% (956 funds)
5 Yr - 80% (844 funds)
10 Yr - 95% (602 funds)

0.47%

Below Average

8

(254 funds)

Multisector Bond

3 Yr - 95% (254 funds)
5 Yr - 99% (201 funds)
10 Yr - N/A

0.45%

Low

8

(1,392 funds)

Large Blend

3 Yr - 74% (1,392 funds)
5 Yr - 98% (1,206 funds)
10 Yr - 99% (895 funds)

0.64%

Below Average

8

(655 funds)

Small Blend

3 Yr - 68% (655 funds)
5 Yr - 98% (570 funds)
10 Yr - 100% (387 funds)

0.73%

Low

9

(715 funds)

Foreign Large Blend

3 Yr - 97% (715 funds)
5 Yr - 98% (634 funds)
10 Yr - 97% (382 funds)

0.76%

Below Average

8

(341 funds)

World Bond

3 Yr - 99% (341 funds)
5 Yr - 98% (255 funds)
10 Yr - 100% (152 funds)

0.51%

Low

7

(208 funds)

Inflation-Protected Bond

3 Yr - 76% (208 funds)
5 Yr - 95% (181 funds)
10 Yr - 97% (114 funds)

0.58%

Average

9

(289 funds)

Tactical Allocation

3 Yr - 40% (289 funds)
5 Yr - 40% (194 funds)
10 Yr - 92% (81 funds)

1.08%

Low

5

Disclosures

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 or by visiting www.pimco.com. 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. Equities may decline in value due to both real and perceived general market, economic and industry conditions. 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. In managing certain strategys' investments in fixed income instruments, PIMCO utilizes an absolute return approach; the absolute return approach does not apply to the equity index replicating component of the strategy. Absolute return portfolios may not fully participate in strong positive market rallies. 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.

RPAG ScorecardSM System Methodology: The ScorecardSSM System methodology incorporates both quantitative and qualitative factors in evaluating fund managers and their investment strategies. The ScorecardSM System is built around pass/fail criteria, on a scale of 0 to 10 (with 10 being the best) and has the ability to measure Active, Passive and Asset Allocation investing strategies. Active and Asset Allocation strategies are evaluated over a five-year time period, and passive strategies are evaluated over a three-year time period. Eighty percent of the fund's score is quantitative (made up of eight unique factors), incorporating modern portfolio theory statistics, quadratic optimization analysis and peer group rankings (among a few of the quantitative factors). The other 20% of the score is qualitative, taking into account things such as manager tenure, the fund's expense ratio relative to the average fund expense ratio in that asset class category and the fund's strength of statistics (statistical significance). Other criteria that may be considered in qualitative score includes the viability of the firm managing the assets, management or personnel issues at the firm, and/or whether there has been a change in direction of the fund's stated investment strategy.

Morningstar Rating as of 30 September 2016 for the Total Return Fund Institutional Class Shares; other classes may have different performance characteristics. Fund ratings are out of 5 Stars: Overall 4 Stars (956 funds rated); 3 Yrs. 3 Stars (956 funds rated); 5 Yrs. 4 Stars (844 funds rated); 10 Yrs. 5 Stars (602 funds rated)

Morningstar Rating as of 30 September 2016 for the Income Fund Institutional Class Shares; other classes may have different performance characteristics. Fund ratings are out of 5 Stars: Overall 5 Stars (254 funds rated); 3 Yrs. 5 Stars (254 funds rated); 5 Yrs. 5 Stars (201 funds rated); 10 Yrs. (N/A)

Morningstar Rating as of 30 September 2016 for the StocksPLUS Absolute Return Fund Institutional Class Shares; other classes may have different performance characteristics. Fund ratings are out of 5 Stars: Overall 5 Stars (1,392 funds rated); 3 Yrs. 4 Stars (1,392 funds rated); 5 Yrs. 5 Stars (1,210 funds rated); 10 Yrs. 5 Stars (911 funds rated)

Morningstar Rating as of 30 September 2016 for the StocksPLUS Small Fund Institutional Class Shares; other classes may have different performance characteristics. Fund ratings are out of 5 Stars: Overall 5 Stars (655 funds rated); 3 Yrs. 3 Stars (655 funds rated); 5 Yrs. 5 Stars (570funds rated); 10 Yrs. 5 Stars (387 funds rated)

Morningstar Rating as of 30 September 2016 for the StocksPLUS International Fund (U.S. Dollar- Hedged) Institutional Class Shares; other classes may have different performance characteristics. Fund ratings are out of 5 Stars: Overall 5 Stars (715 funds rated); 3 Yrs. 5 Stars (715 funds rated); 5 Yrs. 5 Stars (634 funds rated); 10 Yrs. 5 Stars (382 funds rated)

Morningstar Rating as of 30 September 2016 for the Foreign Bond Fund (U.S. Dollar-Hedged) Institutional Class Shares; other classes may have different performance characteristics. Fund ratings are out of 5 Stars: Overall 5 Stars (341 funds rated); 3 Yrs. 5 Stars (341 funds rated); 5 Yrs. 5 Stars (255 funds rated); 10 Yrs. 5 Stars (152 funds rated)

Morningstar Rating as of 30 September 2016 for the Real Return Fund Institutional Class Shares; other classes may have different performance characteristics. Fund ratings are out of 5 Stars: Overall 5 Stars (208 funds rated); 3 Yrs. 4 Stars (208 funds rated); 5 Yrs. 4 Stars (181 funds rated); 10 Yrs. 5 Stars (114 funds rated)

Morningstar Rating as of 30 September 2016 for the All Asset Fund Institutional Class Shares; other classes may have different performance characteristics. Fund ratings are out of 5 Stars: Overall 3 Stars (289 funds rated); 3 Yrs. 3 Stars; (289 funds rated); 5 Yrs. 3 Stars (194 funds rated); 10 Yrs. 4 Stars (81 funds rated)

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.® 2015. 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.

Past rankings are no guarantee of future rankings. The Morningstar Rankings are calculated by Morningstar and are based on the total return performance, with distributions reinvested and operating expenses deducted. Morningstar does not take into account sales charges.

This 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. Information contained herein has been obtained from sources believed to be reliable, but not guaranteed. 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.

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