Credit Strategies

Morningstar ratings are as of 10/31/2017 and based on risk-adjusted returns

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No Shortcuts in Credit Research

Christian Stracke, Global Head of Credit Research, offers an inside look at PIMCO’s intensive credit research process and how it led the firm to invest in pipeline companies as oil reached its 2016 low.

PIMCO Credit Credentials

PIMCO offers investors a unique investment approach, global credit resources, and expertise.

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Bonds Are Different

Access our thought leadership, investor resources and educational materials on why active management may make sense for bonds.

Contact Your PIMCO Representative

Financial Advisors
Wirehouse: 800-628-1237
Independent: 800-880-8684

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800-880-8684

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888.877.4626

If you are an individual investor, please contact your financial advisor to see how you can invest in PIMCO investments

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. 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.

The Barclays U.S. Corporate High-Yield Index the 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. The Barclays Global Aggregate (USD Hedged) Index provides a broad-based measure of the global investment-grade fixed income markets. The three major components of this index are the U.S. Aggregate, the Pan-European Aggregate, and the Asian-Pacific Aggregate Indices. The Barclays Commercial Mortgage-Backed Securities Index is an unmanaged index comprised of the CMBS Investment-Grade Index, CMBS High-Yield Index, CMBS Interest-Only Index, and Commercial Conduit Whole Loan Index (all bond classes and interest-only classes). 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. It is not possible to invest directly in an unmanaged index.

Morningstar Rating™ as of 31 October 2017 for the institutional share class; other classes may have different performance characteristics. The PIMCO Investment Grade Corporate Bond Fund was rated against the following numbers of Corporate Bond funds over the following time periods: Overall 5 Stars (175 funds rated); 3 Yrs. 5 Stars (175 funds rated); 5 Yrs. 5 Stars (145 funds rated); 10 Yrs. 5 Stars (85 funds rated). The PIMCO Long-Term Credit Fund was rated against the following numbers of Long-Term Bond funds over the following time periods: Overall 5 Stars (19 funds rated); 3 Yrs. 5 Stars (19 funds rated); 5 Yrs. 5 Stars (19 funds rated). The High Yield Spectrum Fund was rated against the following numbers of High Yield Bond funds over the following time periods: Overall 5 Stars (609 funds rated); 3 Yrs. 5 Stars (609 funds rated); 5 Yrs. 5 Stars (489 funds rated). The PIMCO High Yield Fund was rated against the following numbers of High Yield Bond funds over the following time periods: Overall 4 Stars (609 funds rated); 3 Yrs. 4 Stars (609 funds rated); 5 Yrs. 4 Stars (489 funds rated); 10 Yrs. 4 Stars (320 funds rated). The PIMCO Diversified Income Fund was rated against the following numbers of Multisector Bond funds over the following time periods: Overall 5 Stars (243 funds rated); 3 Yrs. 5 Stars (243 funds rated); 5 Yrs. 4 Stars (193 funds rated); 10 Yrs. 5 Stars (107 funds rated). The PIMCO Credit Absolute Return Fund was rated against the following numbers of Long-Short Credit funds over the following time periods: Overall 5 Stars (38 funds rated); 3 Yrs. 5 Stars (38 funds rated); 5 Yrs. 5 Stars (21 funds rated). Past performance is no guarantee of future results. .The Morningstar Rating™ 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. Morningstar, Inc.® 2017. All rights reserved. The information contained herein: (1) is proprietary to Morningstar (2) may not be copied or distributed and (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.

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

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