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

(851 funds)

Intermediate-Term Bond

1 Yr - 71%
(284 / 972 funds)
3 Yr - 72%
(239 / 851 funds)
5 Yr - 72%
(210 / 750 funds)
110 Yr - 96%
(19 / 538 funds)

0.47%

Below Average

8

(227 funds)

Multisector Bond

1 Yr - 80%
(63 / 315 funds)
3 Yr - 97%
(7 / 227 funds)
5 Yr - 100%
(1 / 174 funds)
10 Yr- 98%
(2 / 95 funds)

0.45%

Low

8

(1,248 funds)

Large Blend

1 Yr - 95%
(63 / 1,404 funds)
3 Yr - 96%
(40 / 1,248 funds)
5 Yr - 98%
(14 / 1,113 funds)
10 Yr - 99%
(5 / 822 funds)

0.65%

Below Average

8

(625 funds)

Small Blend

1 Yr - 99%
(8 / 757 funds)
3 Yr - 82%
(112 / 625 funds)
5 Yr - 97%
(13 / 537 funds)
10 Yr - 100%
(1 / 377funds)

0.73%

Low

9

(586 funds)

Foreign Large Blend

1 Yr - 100%
(1 / 735 funds)
3 Yr - 99%
(2 / 586 funds)
5 Yr - 100%
(1 / 525 funds)
10 Yr - 99%
(2 / 327 funds)

0.76%

Below Average

7

(312 funds)

World Bond

1 Yr - 75%
(83 / 334 funds)
3 Yr - 99%
(2 / 312 funds)
5 Yr - 99%
(3 / 247 funds)
10 Yr - 98%
(3 / 128 funds)

0.51%

Low

7

(195 funds)

Inflation-Protected Bond

1 Yr - 79%
(49 / 237 funds)
3 Yr - 81%
(38 / 195 funds)
5 Yr - 90%
(16 / 165 funds)
10 Yr - 97%
(4 / 108 funds)

0.58%

Average

9

(247 funds)

Tactical Allocation

1 Yr - 89%
(34 / 310 funds)
3 Yr - 47%
(131 / 247 funds)
5 Yr - 42%
(100 / 170 funds)
10 Yr - 96%
(3 / 66 funds)

1.08%

Low

5

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 31 March 2017 for Institutional Class Shares; other classes may have different performance characteristics. Fund ratings are out of 5 Stars.
PTTRX: Overall 5 Stars (239 out of 851 funds rated); 1 Yr. (284 out of 972 funds rated): 3 Yrs. 4 Stars (239 out of 851 funds rated); 5 Yrs. 4 Stars (210 out 750 funds rated); 10 Yrs. 5
Stars (19 out of 538 funds rated)
PIMIX: Overall 5 Stars (7 out of 227 funds rated); 1 Yr. (63 out of 315 funds rated): 3 Yrs. 5 Stars (7 out of 227 funds rated); 5 Yrs. 5 Stars (1 out 174 funds rated); 10 Yrs. 5 Stars (2 out of 95 funds rated)
PSPTX: Overall 5 Stars (40 out of 1,248 funds rated); 1 Yr. (63 out of 1,404 funds rated): 3 Yrs. 4 Stars (40 out of 1,248 funds rated); 5 Yrs. 5 Stars (14 out 1,113 funds rated); 10 Yrs. 5
Stars (5 out of 822 funds rated)
PSCSX: Overall 5 Stars (112 out of 625 funds rated); 1 Yr. (8 out of 757 funds rated); 3 Yrs. 3 Stars (112 out of 625 funds rated); 5 Yrs. 5 Stars (13 out of 537 funds rated); 10 Yrs. 5
Stars (1 out of 377 funds rated)
PISIX: Overall 5 Stars (2 out of 586 funds rated); 1 Yr. (1 out of 735 funds rated): 3 Yrs. 5 Stars (2 out of 586 funds rated); 5 Yrs. 5 Stars (1 out 525 funds rated); 10 Yrs. 5 Stars (2 out of
327 funds rated)
PFORX: Overall 5 Stars (2 out of 312 funds rated); 1 Yr. (83 out of 334 funds rated): 3 Yrs. 5 Stars (2 out of 312 funds rated); 5 Yrs. 5 Stars (3 out 247 funds rated); 10 Yrs. 5 Stars (3 out of 128 funds rated)
PRRIX: Overall 5 Stars (38 out of 195 funds rated); 1 Yr. (49 out of 237 funds rated): 3 Yrs. 4 Stars (38 out of 195 funds rated); 5 Yrs. 5 Stars (16 out 165 funds rated); 10 Yrs. 5 Stars (4 out of 108 funds rated)
PAAIX: Overall 4 Stars (131 out of 247 funds rated); 1 Yr. (34 out of 310 funds rated); 3 Yrs. 3 Yrs. (131 out of 247 funds rated); 5 Yrs. 3 Yrs. (100 out of 170 funds rated); 10 Yrs. 4 Stars
(3 out of 66 funds rated)

For funds with at least a 3-yr history, Morningstar calculates a Morningstar Rating based on a risk-adjusted return measure that accounts for variation in a fund’s monthly performance (including the effects of sales charges, loads and redemption fees) with an emphasis on downward variations and consistent performance. The top 10% of funds in each 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 is a weighted average of the performance figures for its 3-, 5- and 10-yr (if applicable) Morningstar Rating metrics. Morningstar, Inc.® 2015. 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.

Past rankings are no guarantee of future rankings. 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.

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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