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.
The performance figures presented reflect the total return performance unless otherwise noted for the Institutional Class shares (after fees) and reflect changes in share price and reinvestment of dividend and capital gain distributions. All periods longer than one year are annualized. The minimum initial investment for Institutional class shares is $1 million.
Investments made by a Fund and the results achieved by a Fund are not expected to be the same as those made by any other PIMCO-advised Fund, including those with a similar name, investment objective or policies. A new or smaller Fund’s performance may not represent how the Fund is expected to or may perform in the long-term. New Funds have limited operating histories for investors to evaluate and new and smaller Funds may not attract sufficient assets to achieve investment and trading efficiencies. A Fund may be forced to sell a comparatively large portion of its portfolio to meet significant shareholder redemptions for cash, or hold a comparatively large portion of its portfolio in cash due to significant share purchases for cash, in each case when the Fund otherwise would not seek to do so, which may adversely affect performance.
Differences in the Fund’s performance versus the index and related attribution information with respect to particular categories of securities or individual positions may be attributable, in part, to differences in the pricing methodologies used by the Fund and the index.
There is no assurance that any fund, including any fund that has experienced high or unusual performance for one or more periods, will experience similar levels of performance in the future. High performance is defined as a significant increase in either 1) a fund’s total return in excess of that of the fund’s benchmark between reporting periods or 2) a fund’s total return in excess of the fund’s historical returns between reporting periods. Unusual performance is defined as a significant change in a fund’s performance as compared to one or more previous reporting periods.
Different fund types (e.g. ETFs, open-ended investment companies) and fund share classes are subject to different fees and expenses (which may affect performance). They may also have different minimum investment requirements and be entitled to different services.
Exchange Traded Funds (“ETF”) are afforded certain exemptions from the Investment Company Act. The exemptions allow, among other things, for individual shares to trade on the secondary market. Individual shares cannot be directly purchased from or redeemed by the ETF. Purchases and redemptions directly with ETFs are only accomplished through creation unit aggregations or “baskets” of shares. Shares of an ETF, traded on the secondary market, are bought and sold at market price (not NAV). Brokerage commissions will reduce returns. Investment policies, management fees and other information can be found in the individual ETF’s prospectus. Buying or selling ETF shares on an exchange may require the payment of fees, such as brokerage commissions, and other fees to financial intermediaries. In addition, an investor may incur costs attributed to the difference between the highest price a buyer is willing to pay to purchase shares of the Fund (bid) and the lowest price a seller is willing to accept for shares of the Fund (ask) when buying or selling shares in the secondary market (the bid-ask spread). Due to the costs inherent in buying or selling Fund shares, frequent trading may detract significantly from investment returns. Investment in Fund shares may not be advisable for investors who expect to engage in frequent trading. Premium/Discount is the difference between the market price and NAV expressed as a percentage of NAV. Current holdings are subject to risk. Holdings are subject to change at any time. An investment in an ETF involves risk, including the loss of principal. Investment return, price, yield and Net Asset Value (NAV) will fluctuate with changes in market conditions. Investments may be worth more or less than the original cost when redeemed. Index ETFs uses an indexing approach and may be affected by a general decline in market segments or asset classes relating to its Underlying Index. The Fund invests in securities and instruments included in, or representative of, its Underlying Index regardless of the investment merits of the Underlying Index.
Interval funds are an unlisted closed-end fund. Limited liquidity is provided to shareholders only through the fund’s quarterly offers to repurchase between 5% to 25% of its outstanding shares at net asset value (subject to applicable law and approval of the Board of Trustees, the Fund currently expects to offer to repurchase 5% of outstanding shares per quarter). Although interval funds provide limited liquidity to investors by offering to repurchase a limited amount of shares on a periodic basis, investors should consider shares of the Fund to be an illiquid investment. An investment in an interval fund is not appropriate for all investors. Unlike typical closed-end funds, an interval fund’s shares are not typically listed on a stock exchange. Although interval funds provide limited liquidity to investors by offering to repurchase a limited amount of shares on a periodic basis, investors should consider shares of the Fund to be an illiquid investment. Investments in interval funds are therefore subject to liquidity risk as an investor may not be able to sell the shares at an advantageous time or price. There is also no secondary market for the Fund’s shares and none is expected to develop. There is no guarantee that an investor will be able to tender all or any of their requested Fund shares in a periodic repurchase offer. An investment in the Fund is speculative involving a high degree of risk, including the risk of a substantial loss of investment.
Closed-end funds, unlike open-end funds, are not continuously offered. After the initial public offering, shares are sold on the open market through a stock exchange. Closed-end funds may be leveraged and carry various risks depending upon the underlying assets owned by a fund. Investment policies, management fees and other matters of interest to prospective investors may be found in each closed-end fund annual and semi-annual report. For additional information, please contact your investment professional.
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 low interest rate environments increase this risk. 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. 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. Inflation-linked bonds (ILBs) issued by a government are fixed-income securities whose principal value is periodically adjusted according to the rate of inflation; ILBs decline in value when real interest rates rise. Certain U.S. Government securities are backed by the full faith of the government, obligations of U.S. Government agencies and authorities are supported by varying degrees but are generally not backed by the full faith of the U.S. Government; portfolios that invest in such securities are not guaranteed and will fluctuate in value. 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. 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 and commodity-linked 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. Commodity-linked derivative instruments may involve additional costs and risks such as changes in commodity index volatility or factors affecting a particular industry or commodity, such as drought, floods, weather, livestock disease, embargoes, tariffs and international economic, political and regulatory developments. Investing in derivatives could lose more than the amount invested. Diversification does not ensure against loss.
Please refer to the Fund’s prospectus for a complete overview of the primary risks associated with the Fund.
There is no guarantee that these investment strategies will work under all market conditions or are appropriate for all investors and each investor should evaluate their ability to invest long-term, especially during periods of downturn in the market.
Morningstar Rating™ as of 31 March 2024 for the institutional share class; other classes may have different performance characteristics. A rating is not a recommendation to buy, sell or hold a fund.
The Credit Opportunities Bond Fund was rated against the following numbers of Nontraditional Bond funds over the following time periods: Overall 4 Stars (278 funds rated); 3 Yrs. 4 Stars (278 funds rated); 5 Yrs. 4 Stars (250 funds rated); 10 Yrs. 4 Stars (161 funds rated).
The Diversified Income Fund was rated against the following numbers of Multisector Bond funds over the following time periods: Overall 3 Stars (315 funds rated); 3 Yrs. 2 Stars (315 funds rated); 5 Yrs. 2 Stars (265 funds rated); 10 Yrs. 4 Stars (171 funds rated).
The High Yield Fund was rated against the following numbers of High Yield Bond funds over the following time periods: Overall 4 Stars (606 funds rated); 3 Yrs. 3 Stars (606 funds rated); 5 Yrs. 3 Stars (575 funds rated); 10 Yrs. 4 Stars (432 funds rated).
The High Yield Spectrum Fund was rated against the following numbers of High Yield Bond funds over the following time periods: Overall 4 Stars (607 funds rated); 3 Yrs. 4 Stars (607 funds rated); 5 Yrs. 4 Stars (575 funds rated); 10 Yrs. 4 Stars (432 funds rated).
The Investment Grade Credit Bond Fund was rated against the following numbers of Corporate Bond funds over the following time periods: Overall 4 Stars (178 funds rated); 3 Yrs. 3 Stars (178 funds rated); 5 Yrs. 2 Stars (163 funds rated); 10 Yrs. 5 Stars (100 funds rated).
The Long-Term Credit Bond Fund was rated against the following numbers of Long-Term Bond funds over the following time periods: Overall 4 Stars (33 funds rated); 3 Yrs. 3 Stars (33 funds rated); 5 Yrs. 3 Stars (32 funds rated); 10 Yrs. 4 Stars (25 funds rated).
The Preferred and Capital Securities Fund was rated against the following numbers of Preferred Stock funds over the following time periods: Overall 4 Stars (65 funds rated); 3 Yrs. 3 Stars (65 funds rated); 5 Yrs. 4 Stars (59 funds rated).
The 0-5 Year High Yield Corporate Bond Index Exchange-Traded Fund was rated against the following numbers of High Yield Bond funds over the following time periods: Overall 3 Stars (606 funds rated); 3 Yrs. 4 Stars (606 funds rated); 5 Yrs. 3 Stars (575 funds rated); 10 Yrs. 3 Stars (432 funds rated).
The Investment Grade Corporate Bond Index Exchange-Traded Fund was rated against the following numbers of Corporate Bond funds over the following time periods: Overall 4 Stars (178 funds rated); 3 Yrs. 3 Stars (178 funds rated); 5 Yrs. 4 Stars (163 funds rated); 10 Yrs. 4 Stars (100 funds rated).
The Corporate & Income Opportunity Fund was rated against the following numbers of Multisector Bond funds over the following time periods: Overall 5 Stars (20 funds rated); 3 Yrs. 5 Stars (20 funds rated); 5 Yrs. 5 Stars (19 funds rated); 10 Yrs. 5 Stars (19 funds rated).
The Corporate & Income Strategy Fund was rated against the following numbers of Multisector Bond funds over the following time periods: Overall 4 Stars (20 funds rated); 3 Yrs. 4 Stars (20 funds rated); 5 Yrs. 4 Stars (19 funds rated); 10 Yrs. 4 Stars (19 funds rated).
The High Income Fund was rated against the following numbers of Multisector Bond funds over the following time periods: Overall 4 Stars (20 funds rated); 3 Yrs. 4 Stars (20 funds rated); 5 Yrs. 4 Stars (19 funds rated); 10 Yrs. 4 Stars (19 funds rated).
The Income Strategy Fund was rated against the following numbers of Multisector Bond funds over the following time periods: Overall 4 Stars (20 funds rated); 3 Yrs. 4 Stars (20 funds rated); 5 Yrs. 4 Stars (19 funds rated); 10 Yrs. 3 Stars (19 funds rated).
The Income Strategy Fund II was rated against the following numbers of Multisector Bond funds over the following time periods: Overall 4 Stars (20 funds rated); 3 Yrs. 3 Stars (20 funds rated); 5 Yrs. 3 Stars (19 funds rated); 10 Yrs. 4 Stars (19 funds rated).
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.® 2024. 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.
© 2024 Morningstar, Inc. 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.
PIMCO as a general matter provides services to qualified institutions, financial intermediaries and institutional investors. Individual investors should contact their own financial professional to determine the most appropriate investment options for their financial situation. This material contains the current opinions of the manager and such opinions are subject to change without notice. This material has been distributed for informational purposes only. 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 LLC in the United States and throughout the world.
PIMCO Investments LLC, distributor, 1633 Broadway, New York, NY 10019, is a company of PIMCO.
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