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

(852 funds)

Intermediate-Term Bond

1 Yr - 90%
(84 / 985 funds)
3 Yr - 85%
(118 / 852 funds)
5 Yr - 68%
(254 / 773 funds)
110 Yr - 95%
(22 / 546 funds)

0.51%

Below Average

8

(246 funds)

Multisector Bond

1 Yr - 95%
(16 / 325 funds)
3 Yr - 94%
(11 / 246 funds)
5 Yr - 100%
(1 / 197 funds)
10 Yr- 99%
(2 / 111 funds)

0.53%

Low

8

(1,218 funds)

Large Blend

1 Yr - 92%
(101 / 1,396 funds)
3 Yr - 90%
(84 / 1,218 funds)
5 Yr - 87%
(141 / 1,083 funds)
10 Yr - 99%
(4 / 799 funds)

0.68%

Below Average

8

(653 funds)

Small Blend

1 Yr - 96%
(27 / 794 funds)
3 Yr - 90%
(52 / 653 funds)
5 Yr - 85%
(67 / 554 funds)
10 Yr - 100%
(1 / 393 funds)

0.74%

Low

9

(598 funds)

Foreign Large Blend

1 Yr - 97%
(21 / 736 funds)
3 Yr - 96%
(22 / 598 funds)
5 Yr - 99%
(3 / 533 funds)
10 Yr - 99%
(3 / 344 funds)

0.81%

Below Average

7

(285 funds)

World Bond

1 Yr - 53%
(139 / 315 funds)
3 Yr - 97%
(6 / 285 funds)
5 Yr - 98%
(4 / 251 funds)
10 Yr - 100%
(1 / 128 funds)

0.55%

Low

7

(198 funds)

Inflation-Protected Bond

1 Yr - 72%
(72 / 232 funds)
3 Yr - 66%
(57 / 198 funds)
5 Yr - 63%
(49 / 171funds)
10 Yr - 95%
(4 / 114 funds)

0.64%

Average

7

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.

Morningstar Star Rating as of 30 September 2017 for Institutional Class Shares; other classes may have different performance characteristics. Fund ratings are out of 5 Stars.
PTTRX: Overall 4 Stars (118 out of 852 funds rated); 1 Yr. (84 out of 985 funds rated): 3 Yrs. 4 Stars (118 out of 852 funds rated); 5 Yrs. 3 Stars (254 out 773 funds rated); 10 Yrs. 5 Stars (22 out of 546 funds rated)
PIMIX: Overall 5 Stars (11 out of 246 funds rated); 1 Yr. (16 out of 325 funds rated): 3 Yrs. 5 Stars (11 out of 246 funds rated); 5 Yrs. 5 Stars (1 out 197 funds rated); 10 Yrs. 5 Stars (2 out of 111 funds rated)
PSPTX: Overall 5 Stars (84 out of 1,218 funds rated); 1 Yr. (101 out of 1,396 funds rated): 3 Yrs. 4 Stars (84 out of 1,218 funds rated); 5 Yrs. 4 Stars (141 out 1,083 funds rated); 10 Yrs. 5 Stars (4 out of 799 funds rated)
PSCSX: Overall 5 Stars (52 out of 653 funds rated); 1 Yr. (27 out of 794 funds rated); 3 Yrs. 4 Stars (52 out of 653 funds rated); 5 Yrs. 4 Stars (67 out of 554 funds rated); 10 Yrs. 5 Stars (1 out of 393 funds rated)
PISIX: Overall 5 Stars (22 out of 598 funds rated); 1 Yr. (21 out of 736 funds rated): 3 Yrs. 5 Stars (22 out of 598 funds rated); 5 Yrs. 5 Stars (3 out 533 funds rated); 10 Yrs. 5 Stars (3 out of 344 funds rated)
PFORX: Overall 5 Stars (6 out of 285 funds rated); 1 Yr. (139 out of 315 funds rated): 3 Yrs. 5 Stars (6 out of 285 funds rated); 5 Yrs. 5 Stars (4 out 251 funds rated); 10 Yrs. 5 Stars (1 out of 128 funds rated)
PRRIX: Overall 4 Stars (57 out of 198 funds rated); 1 Yr. (72 out of 232 funds rated): 3 Yrs. 3 Stars (57 out of 198 funds rated); 5 Yrs. 3 Stars (49 out 171 funds rated); 10 Yrs. 5 Stars (4 out of 114 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. 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 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.

PIMCO Investments LLC, distributor, 1633 Broadway, New York 10019, is a company of PIMCO. © 2017 PIMCO

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