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

(902 funds)

Intermediate-Term Bond

1 Yr - 28%
(699/ 1,039 funds)
3 Yr - 75%
(216 / 902 funds)
5 Yr - 59%
(321 / 796 funds)
10 Yr - 84%
(80 / 577 funds)

0.55%

Above Average

9

Income Fund
PIMIX

(278 funds)

Multisector Bond

1 Yr - 58%
(118 / 319 funds)
3 Yr - 89%
(38 / 278 funds)
5 Yr - 97%
(5 / 215 funds)
10 Yr- 100%
(1 / 132 funds)

0.74%

Average

8

(1,196 funds)

Large Blend

1 Yr - 76%
(286 / 1,383 funds)
3 Yr - 98%
(14 / 1,196 funds)
5 Yr - 95%
(41 / 1,058 funds)
10 Yr - 99%
(2 / 794 funds)

0.71%

Average

9

(652 funds)

Small Blend

1 Yr - 63%
(213 / 778 funds)
3 Yr - 98%
(12 / 652 funds)
5 Yr - 91%
(46 / 539 funds)
10 Yr - 100%
(1 / 388 funds)

0.79%

Low

10

(655 funds)

Foreign Large Blend

1 Yr - 98%
(12 / 783 funds)
3 Yr - 98%
(6 / 655 funds)
5 Yr - 99%
(4 / 535 funds)
10 Yr - 100%
(1 / 379 funds)

0.84%

Average

7

(261 funds)

World Bond

1 Yr - 100%
(1 / 310 funds)
3 Yr - 92%
(14 / 261 funds)
5 Yr - 100%
(1 / 246 funds)
10 Yr - 99%
(2 / 137 funds)

0.56%

Low

8

(207 funds)

Inflation-Protected Bond

1 Yr - 37%
(122 / 236 funds)
3 Yr - 80%
(48 / 207 funds)
5 Yr - 76%
(33 / 174 funds)
10 Yr - 95%
(4 / 107 funds)

0.88%

High

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.

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 30 September 2018 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 September 2018 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 4 Stars (216 out of 902 funds rated); 1 Yr. (699 out of 1,039 funds rated): 3 Yrs. 4 Stars (216 out of 902 funds rated); 5 Yrs. 3 Stars (321 out 796 funds rated); 10 Yrs. 4 Stars (80 out of 577 funds rated)

PIMIX: Overall 5 Stars (38 out of 278 funds rated); 1 Yr. (118 out of 319 funds rated): 3 Yrs. 5 Stars (38 out of 278 funds rated); 5 Yrs. 5 Stars (5 out 215 funds rated); 10 Yrs. 5 Stars (1 out of 132 funds rated)

PSPTX: Overall 5 Stars (14 out of 1,196 funds rated); 1 Yr. (286 out of 1,383 funds rated): 3 Yrs. 5 Stars (14 out of 1,196 funds rated); 5 Yrs. 5 Stars (41 out 1,058 funds rated); 10 Yrs. 5 Stars (2 out of 794 funds rated)

PSCSX: Overall 5 Stars (12 out of 652 funds rated); 1 Yr. (213 out of 778 funds rated); 3 Yrs. 5 Stars (12 out of 652 funds rated); 5 Yrs. 4 Stars (46 out of 539 funds rated); 10 Yrs. 5 Stars (1 out of 388 funds rated)

PISIX: Overall 5 Stars (6 out of 655 funds rated); 1 Yr. (12 out of 783 funds rated): 3 Yrs. 5 Stars (6 out of 655 funds rated); 5 Yrs. 5 Stars (4 out 535 funds rated); 10 Yrs. 5 Stars (1 out of 379 funds rated)

PFORX: Overall 5 Stars (14 out of 261 funds rated); 1 Yr. (1 out of 310 funds rated): 3 Yrs. 5 Stars (14 out of 261 funds rated); 5 Yrs. 5 Stars (1 out 246 funds rated); 10 Yrs. 5 Stars (2 out of 137 funds rated)

PRRIX: Overall 5 Stars (48 out of 207 funds rated); 1 Yr. (122 out of 236 funds rated): 3 Yrs. 4 Stars (48 out of 207 funds rated); 5 Yrs. 4 Stars (33 out 174 funds rated); 10 Yrs. 5 Stars (4 out of 107 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. © 2018 PIMCO

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