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.
The terms “cheap” and “rich” as used herein generally refer to a security
or asset class that is deemed to be substantially under- or overpriced
compared to both its historical average as well as to the investment
manager’s future expectations. There is no guarantee of future results or
that a security’s valuation will ensure a profit or protect against a loss.
Return assumptions are for illustrative purposes only and are not a
prediction or a projection of return. Return assumption is an estimate of
what investments may earn on average over the long term. Actual returns may
be higher or lower than those shown and may vary substantially over shorter
time periods.
Past performance is not a guarantee or a reliable indicator of future
results.
The performance figures presented reflect the total return performance for
the institutional Class shares (after fees) 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.
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:
The fund invests in other PIMCO funds and performance is
subject to underlying investment weightings which will vary. 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. Commodities contain heightened risk including market,
political, regulatory, and natural conditions, and may not be suitable for
all investors. 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.
Investing in securities of smaller companies tends to be
more volatile and less liquid than securities of larger companies . Inflation-linked bonds (ILBs) issued by a government are
fixed-income securities whose principal value is periodically adjusted
according to the rate of inflation; ILBs decline in value when real
interest rates rise. Equities may decline in value due to
both real and perceived general market, economic, and industry conditions. Derivatives and commodity-linked 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. Commodity-linked derivative instruments may involve
additional costs and risks such as changes in commodity index volatility or
factors affecting a particular industry or commodity, such as drought,
floods, weather, livestock disease, embargoes, tariffs and international
economic, political and regulatory developments. Investing in derivatives
could lose more than the amount invested. The cost of investing in the Fund will generally be higher
than the cost of investing in a fund that invests directly in individual
stocks and bonds. 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 correlation of various indexes or securities against one another or
against inflation is based upon data over a certain time period. These
correlations may vary substantially in the future or over different time
periods that can result in greater volatility.
The Bloomberg Barclays U.S. TIPS: 1-10 Year Index is an
unmanaged index market comprised of U.S. Treasury Inflation Protected
securities having a maturity of at least 1 year and less than 10 years. The CPI + 500 Basis Points benchmark is
created by adding 5% to the annual percentage change in the Consumer Price
Index (“CPI”). This index reflects non-seasonably adjusted returns. The
Consumer Price Index is an unmanaged index representing the rate of
inflation of the U.S. consumer prices as determined by the U.S. Department
of Labor Statistics. There can be no guarantee that the CPI or other
indexes will reflect the exact level of inflation at any given time. 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. ©2017, PIMCO.