Top DC Investment Ideas


As you work with plan sponsors to help build best-in-class menus for their retirement plans, consider these PIMCO strategies which are highly rated among multiple scoring systems including Morningstar and Retirement Plan Advisory Group (RPAG). They rank at the top of their respective peer groups and many are also competitively priced.

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

(530 funds)

Intermediate Core-Plus Bond

1 Yr - 93%
(51 / 606 funds)
3 Yr - 92%
(46 / 530 funds)
5 Yr - 86%
(48 / 442 funds)
10 Yr - 68%
(96 / 331 funds)

0.71%

0.46%

High

7

Income Fund
PIMIX

(271 funds)

Multisector Bond

1 Yr - 58%
(128 / 316 funds)
3 Yr - 82%
(40 / 271 funds)
5 Yr - 95%
(9 / 226 funds)
10 Yr- 99%
(1 / 128 funds)

1.051%

0.50%

High

9

(1,214 funds)

Large Blend

1 Yr - 33%
(940 / 1,372 funds)
3 Yr - 48%
(603 / 1,214 funds)
5 Yr - 61%
(362 / 1,048 funds)
10 Yr - 99%
(6 / 800 funds)

0.73%

0.64%

Average

7

(628 funds)

Small Blend

1 Yr - 33%
(460 / 690 funds)
3 Yr - 55%
(287 / 628 funds)
5 Yr - 65%
(175 / 501 funds)
10 Yr - 98%
(8 / 362 funds)

0.83%

0.69%

Below Average

7

(638 funds)

Foreign Large Blend

1 Yr - 57%
(327 / 743 funds)
3 Yr - 77%
(131 / 638 funds)
5 Yr - 86%
(53 / 503 funds)
10 Yr - 98%
(3 / 369 funds)

0.87%

0.75%

Average

9

(74 funds)

World Bond-USD Hedged

1 Yr - 38%
(57 / 106 funds)
3 Yr - 79%
(18 / 74 funds)
5 Yr - 89%
(8 / 58 funds)
10 Yr - 99%
(1 / 37 funds)

0.55%

0.50%

Below Average

5

(196 funds)

Inflation-Protected Bond

1 Yr - 65%
(60 / 218 funds)
3 Yr - 68%
(45 / 196 funds)
5 Yr - 67%
(38 / 173 funds)
10 Yr - 81%
(11 / 115 funds)

0.98%

0.45%

High

9

(209 funds)

Target-Date 2030

1 Yr - 79%
(49 / 244 funds)
3 Yr - 82%
(33 / 209 funds)
5 Yr - 78%
(32 / 167 funds)
10 Yr - -

0.38%

0.27%

Below Average

-

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. Encourage your clients to read them carefully.

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.

Past rankings are no guarantee of future rankings. Fund rankings are provided below next to their respective tickers and star ratings. Morningstar Ranking for each fund’s respective category as of 31 March 2019 for the Institutional Class Shares; other classes may have different performance characteristics. 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.

Morningstar Star Rating as of 30 June 2019 for Institutional Class Shares; other classes may have different performance characteristics. Fund ratings are out of 5 stars. Funds were rated against the following numbers of funds in their respective categories over the following time periods:

PTTRX: Overall 3 Stars (178 out of 539 funds rated); 1 Yr. (282 out of 623 funds rated): 3 Yrs. 3 Stars (178 out of 539 funds rated); 5 Yrs. 3 Stars (173 out 453 funds rated); 10 Yrs. 3 Stars (179 out of 332 funds rated)

PIMIX: Overall 5 Stars (31 out of 303 funds rated); 1 Yr. (126 out of 342 funds rated): 3 Yrs. 5 Stars (31 out of 291 funds rated); 5 Yrs. 5 Stars (2 out 225 funds rated); 10 Yrs. 5 Stars (2 out of 131 funds rated)

PSPTX: Overall 5 Stars (44 out of 1,205 funds rated); 1 Yr. (548 out of 1,408funds rated): 3 Yrs. 5 Stars (44 out of 1,205 funds rated); 5 Yrs. 5 Stars (96 out 1,066 funds rated); 10 Yrs. 5 Stars (2 out of 134 funds rated)

PSCSX: Overall 5 Stars (16 out of 633 funds rated); 1 Yr. (401 out of 733 funds rated); 3 Yrs. 5 Stars (16 out of 633 funds rated); 5 Yrs. 5 Stars (77 out of 516 funds rated); 10 Yrs. 5 Stars (1 out of 375 funds rated)

PISIX: Overall 5 Stars (2 out of 644 funds rated); 1 Yr. (44 out of 737 funds rated): 3 Yrs. 5 Stars (2 out of 644 funds rated); 5 Yrs. 5 Stars (7 out 514 funds rated); 10 Yrs. 5 Stars (1 out of 384 funds rated)

PFORX: Overall 5 Stars (2 out of 611 funds rated); 1 Yr. (30 out of 722 funds rated): 3 Yrs. 5 Stars (2 out of 611 funds rated); 5 Yrs. 5 Stars (1 out 488 funds rated); 10 Yrs. 5 Stars (1 out of 362 funds rated)

PRRIX: Overall 4 Stars (35 out of 193 funds rated); 1 Yr. (59 out of 223 funds rated): 3 Yrs. 4 Stars (35 out of 193 funds rated); 5 Yrs. 4 Stars (39 out 165 funds rated); 10 Yrs. 5 Stars (4 out of 101 funds rated)

PBPNX: Overall 3 Stars (84 out of 194 funds rated); 1 Yr. (30 out of 234 funds rated): 3 Yrs. 3 Stars (84 out of 194 funds rated);

The Morningstar RatingTM for funds, or “star rating”, is calculated for managed products (including mutual funds, variable annuity and variable life subaccounts, exchange-traded funds, closed-end funds, and separate accounts) with at least a three-year history. Exchange-traded funds and open-ended mutual funds are considered a single population for comparative purposes. It is calculated based on a Morningstar Risk-Adjusted Return measure that accounts for variation in a managed product’s monthly excess performance, placing more emphasis on downward variations and rewarding consistent performance. The top 10% of products in each product 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 for a managed product is derived from a weighted average of the performance figures associated with its three-, five-, and 10-year (if applicable) Morningstar Rating metrics. The weights are: 100% three-year rating for 36-59 months of total returns, 60% five-year rating/40% three-year rating for 60-119 months of total returns, and 50% 10-year rating/30% five-year rating/20% three-year rating for 120 or more months of total returns. While the 10-year overall star rating formula seems to give the most weight to the 10-year period, the most recent three-year period actually has the greatest impact because it is included in all three rating periods. ® 2018 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.

PIMCO Investments LLC, distributor, 1633 Broadway, New York 10019, is a company of PIMCO. © 2019 PIMCO

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