in-page

PIMCO Flexible Credit Income Fund

Seeking attractive risk-adjusted returns and current income from a private and public opportunity set

Ability to dynamically invest across global public and private credit markets

Ability to invest in less liquid assets across an expanded opportunity set

A focus on alternative credit investments to potentially enhance risk-adjusted returns

Why invest in PIMCO Flexible Credit Income Fund today?

With low returns expected across traditional asset classes, PIMCO Flexible Credit Income Fund can dynamically invest across global public and private and credit markets, including those that are less liquid, which may help enhance return potential.

Broad exposure to private and public markets

Broad exposure to private and public markets
Interval fund basics

What is an interval fund?

An interval fund is an investment vehicle that does not allow investors to withdraw funds on a daily basis but periodically offers to repurchase a limited percentage of outstanding shares, as defined in its prospectus, from its shareholders. This gives portfolio managers more freedom to invest in less liquid and more complex assets that may have higher return potential.

Download PDF
Portfolio fit

How can PIMCO Flexible Credit Income Fund complement your portfolio?

There are several potential ways the fund can add value to an investor’s portfolio:

  • A tool to enhance fixed income return potential by broadening the opportunity set in credit markets.
  • An alternative to equity exposure to help lower equity-related volatility.
  • An alternative credit exposure that provides access to what is believed to be PIMCO’s best ideas across credit market sectors, capital structures and liquidity spectrums.
Where might the PIMCO Flexible Credit Income Fund fit in a portfolio?

Investing in PIMCO Flexible Credit Income Fund

Available share classes

Flexible Investment Options

PFLEX

CUSIP: 72202M106

Share Class: Institutional Shares

3.92%

Gross Expense Ratio

3.91%

Net Expense Ratio

The Net Expense Ratio reflects a contractual fee waiver and/or expense reduction, which is in place through 11/01/2020 and renews automatically for a full year unless terminated by PIMCO in accordance with the terms of the agreement. See the Fund's prospectus for more information.

PFFLX

CUSIP: 72202M205

Share Class: A Shares

4.67%

Gross Expense Ratio

4.66%

Net Expense Ratio

The Net Expense Ratio reflects a contractual fee waiver and/or expense reduction, which is in place through 11/01/2020 and renews automatically for a full year unless terminated by PIMCO in accordance with the terms of the agreement. See the Fund's prospectus for more information.

Management team

Highly experienced management team and award-winning portfolio managers

Alfred Murata

Alfred Murata

Managing Director

Multi-Sector/Mortgage Credit

Morningstar Fixed-Income Fund Manager of the Year (2013)

Morningstar Fixed-Income Fund Manager of the Year (2013)

Read bio
Dan Ivascyn

Dan Ivascyn

Managing Director

Group CIO

Morningstar Fixed-Income Fund Manager of the Year (2013)

Morningstar Fixed-Income Fund Manager of the Year (2013)

Read bio
Mark Kiesel

Mark Kiesel

Managing Director

CIO, Corporate Credit

Morningstar Fixed-Income Fund Manager of the Year (2012)

Morningstar Fixed-Income Fund Manager of the Year (2012)

Read bio
Christian Stracke

Christian Stracke

Managing Director

Opportunistic Credit / Head of Credit Research

Read bio
Marc Seidner

Marc Seidner

Managing Director

CIO, Non-Traditional Strategies

Read bio
Eve Tournier

Eve Tournier

Managing Director

Multi-Sector Credit

Read bio

$1,493 MM

Total net fund assets (as of 9/30/2020)

65

Dedicated credit analysts

Performance history

A Diversified Approach to Income Generation

The fund has delivered strong risk-adjusted returns with relatively low correlations to traditional market indices.

PFLEXPFFLX (NAV)PFFLX (MOP)US AggUS IG CorpUS HY CorpS&P 500US Mtg REITsUS BDCs
Since PFLEX Inception Return (ann)4.8%4.0%*3.2%*5.0%6.4%4.6%12.5%-5.6%-3.6%
12-month return-1.4%-2.2%-5.1%7.0%7.9%3.3%15.1%-32.5%-19.7%
Volatility11.8%--3.2%6.3%8.4%16.2%34.3%27.7%
Correlation to PFLEX---0.110.670.870.600.900.81

As of 30 September 2020 unless stated otherwise. Data shown is for Institutional and A class shares. Performance shown in the table above is since Fund inception: 22 February 2017, net of fees. Volatility (standard deviation), and correlation are calculated based on monthly total returns net of fees. US Agg: Bloomberg Barclays U.S. Aggregate Index; US HY Corp: Bloomberg Barclays U.S. High Yield Bond Index; US IG Corp: Bloomberg Barclays U.S. Corporate Bond Index; US Mtg REITs: Dow Jones U.S. Mortgage REIT Index; US BDCs: S&P BDC Total Return Index.

Performance quoted represents past performance, which is not a guarantee or a reliable indicator of future results. Investment return and principal value of an investment will fluctuate. Shares may be worth more or less than original cost when redeemed. Current performance may be lower or higher than performance shown. For performance current to the most recent month-end, visit www.pimco.com or call (888) 87-PIMCO.

*Class A common shares launched on 30 November 2018, which is later than the inception date of the fund. For all periods prior to the launch of the Class A shares, performance information shown is that of the Fund’s Institutional Class shares, adjusted to reflect the distribution and/or servicing fees and other expenses paid by the Class A shares.

Performance figures reflect the total return performance after fees and expenses, and reflect changes in share price and reinvestment of dividends and capital gains distributions on the payable date. The maximum offering price (MOP) returns take into account the 3.00% maximum initial sales charge. Institutional class shares do not have a sales charge.

5 Key Questions Answered

Learn More About PIMCO Flexible Credit Income Fund

Talk with our team today.

Disclosures

Investors should consider the investment objectives, risks, charges and expenses of the fund carefully before investing. This and other information are contained in the fund’s prospectus, which may be obtained by contacting your investment professional or PIMCO representative or by visiting www.pimco.com. Please read the prospectus carefully before you invest or send money.

The fund is an unlisted closed-end “interval 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). There is no secondary market for the fund’s shares and none is expected to develop. Investors should consider shares of the fund to be an illiquid investment.

Past performance is not a guarantee or a reliable indicator of future results. The performance figures presented reflect changes in share price and reinvestment of dividend and capital gain distributions.

Investments made by the Fund and the results achieved by the 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.

It is important to note that differences exist between the Fund’s daily internal accounting records, the fund’s financial statements prepared in accordance with U.S. GAAP, and recordkeeping practices under income tax regulations. It is possible that the Fund may not issue a Section 19 Notice in situations where the Fund’s financial statements prepared later and in accordance with U.S. GAAP or the final tax character of those distributions might later report that the sources of those distributions included capital gains and/or a return of capital. Please see the fund’s most recent shareholder report for more details.

The Fund’s distribution rate may be affected by numerous factors, including, but not limited to, changes in realized and projected market returns, Fund performance, and other factors. There can be no assurance that a change in market conditions or other factors will not result in a change in the Fund distribution rate at a future time. Distribution rates are not performance. The distribution rate is calculated by annualizing the most recent distribution per share and dividing by the NAV as of the reported date. Distributions may be comprised of ordinary income, net capital gains, and/or a return of capital (ROC) of your investment in the fund. Because a distribution may include a ROC, the distribution rate should not be confused with yield. Please refer to the most recent Section 19 Notice, if applicable, for additional information regarding the composition of distributions. Final determination of a distribution’s tax character will be made on Form 1099 DIV sent to shareholders each January.

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.

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-related assets and other asset-backed instruments 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. Bank loans are often less liquid than other types of debt instruments and general market and financial conditions may affect the prepayment of bank loans, as such the prepayments cannot be predicted with accuracy. There is no assurance that the liquidation of any collateral from a secured bank loan would satisfy the borrower’s obligation, or that such collateral could be liquidated.

Investments in distressed loans and bankrupt companies are speculative and the repayment of default obligations contains significant uncertainties. The value of real estate and portfolios that invest in real estate may fluctuate due to: losses from casualty or condemnation, changes in local and general economic conditions, supply and demand, interest rates, property tax rates, regulatory limitations on rents, zoning laws, and operating expenses. Structured products such as collateralized debt obligations are also highly complex instruments, typically involving a high degree of risk; use of these instruments may involve derivative instruments that could lose more than the principal amount invested. 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. The use of leverage may cause a portfolio to liquidate positions when it may not be advantageous to do so to satisfy its obligations or to meet segregation requirements. Leverage, including borrowing, may cause a portfolio to be more volatile than if the portfolio had not been leveraged. An investment in an interval fund is not suitable 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.

There is no guarantee that these investment strategies will work under all market conditions or are suitable for all investors and each investor should evaluate their ability to invest for a long-term especially during periods of downturn in the market. Investors should consult their investment professional prior to making an investment decision. An investment in the Fund is speculative involving a high degree of risk, including the risk of a substantial loss of investment. Investors should consult their investment professional prior to making an investment decision.

PIMCO as a general matter provides services to qualified institutions, financial intermediaries and institutional investors. Individual investors should contact their ownfinancial professional to determine the most appropriate investment options for their financial situation. This material contains the current opinions of the manager andsuch opinions are subject to change without notice. This material has been distributed for informational purposes only and should not be considered as investmentadvice or a recommendation of any particular security, strategy or investment product. Information contained herein has been obtained from sources believed to bereliable, 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. PIMCOis a trademark of Allianz Asset Management of America L.P. in the United States and throughout the world. ©2020, PIMCO

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

CMR2020-0813-1300268

PIMCO