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 or by visiting
www.pimco.com. Please read them carefully before you invest or send
money.
Past performance is not a guarantee or a reliable indicator of future
results.
The performance figures presented reflect the total return performance 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;
however, it may be modified for certain financial intermediaries who submit
trades on behalf of eligible investors.
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.
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 and/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.
Although the Fund may seek to maintain stable distributions, the Fund’s
distribution rates may be affected by numerous factors, including but not
limited to changes in realized and projected market returns, fluctuations
in market interest rates, 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’s distribution rate or that the rate will be
sustainable in the future.
For instance, during periods of low or declining interest rates, the Fund’s
distributable income and dividend levels may decline for many reasons. For
example, the Fund may have to deploy uninvested assets (whether from
purchases of Fund shares, proceeds from matured, traded or called debt
obligations or other sources) in new, lower yielding instruments.
Additionally, payments from certain instruments that may be held by the
Fund (such as variable and floating rate securities) may be negatively
impacted by declining interest rates, which may also lead to a decline in
the Fund’s distributable income and dividend levels.
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 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. 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 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. Diversification does not ensure against loss.
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 long-term, especially during
periods of downturn in the market. Investors should consult their
investment professional prior to making an investment decision.
The Morningstar Fixed Income Fund Manager of the Year (U.S.) award is based
on the strength of the manager, performance, strategy and firm's
stewardship.
The Lipper Fund Awards 2018 recognized PIMCO Income Fund (Institutional
Share Class) for the 5 and 10 year performance out of 61 and 40 funds,
respectively under the Multi-Sector Income Funds Classification. The
calculation periods extend over 36, 60, and 120 months. The highest Lipper
Leader for Consistent Return (Effective Return) value within each eligible
classification determines the fund classification winner over three, five,
or 10 years. For a detailed explanation, please review the Lipper Leaders
methodology document on lipperalpha.financial.thomsonreuters.com/lipper.
Barclays U.S. Aggregate Index
represents securities that are SEC-registered, taxable, and dollar
denominated. The index covers the U.S. investment grade fixed rate bond
market, with index components for government and corporate securities,
mortgage pass-through securities, and asset-backed securities. These major
sectors are subdivided into more specific indices that are calculated and
reported on a regular basis. The Bloomberg Barclays Global Aggregate (USD Unhedged) Index
provides a broad-based measure of the global investment-grade fixed income
markets. The three major components of this index are the U.S. Aggregate,
the Pan-European Aggregate, and the Asian-Pacific Aggregate Indices. The
index also includes Eurodollar and Euro-Yen corporate bonds, Canadian
Government securities, and USD investment grade 144A securities. It is not
possible to invest directly in an unmanaged index.
This material contains the opinions of the manager and such opinions are
subject to change without notice. This material 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. ©2018, PIMCO.
PIMCO Investments LLC, distributor, 1633 Broadway, New York, NY, 10019 is a company of PIMCO.
Investment Products
Not FDIC Insured | May Lose Value | Not Bank Guaranteed
CMR2018-0731-347157