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CommoditiesPLUS® Strategy Fund

PCLAX

Updated December 11, 2019

Objective

Seeks total return which exceeds that of its benchmark, consistent with prudent investment management

Primary Portfolio

Commodity-linked derivative instruments backed by an actively managed, low volatility portfolio of fixed income instruments.

Greg Sharenow
Nicholas Johnson

Overview

Fund Overview

Diversification and inflation-hedging potential

Harnessing two of PIMCO’s core strengths – commodity-linked investing and active fixed income management – the fund provides access to broad commodity market returns, with enhanced return potential from actively managed bonds collateral.

Why Invest In This Fund

Enhanced index strategy

The fund captures the performance potential of commodities through derivative exposure to the Credit Suisse Commodity Benchmark, a broad-based index. The fund collateralizes its commodity exposure with a portfolio of high quality, short term bonds that serve as an additional source of return.

Inflation-hedging, diversification potential

Commodities have had a positive correlation with inflation, typically appreciating when inflation spikes; they also have had low or negative correlation with stocks and bonds, which can enhance portfolio diversification. It should be noted, however, that commodities may be volatile and that diversification doesn’t protect against loss.

Combined expertise

The fund capitalizes on PIMCO’s experience in commodity-linked derivatives and active fixed income management. The management team looks to add value by avoiding the inefficiencies of passive commodity indexing, seeking out the potential for additional excess return opportunities within commodity markets and actively managing the collateral portfolio.

Our Expertise

The strategy is managed by veteran real return investors Nicholas Johnson and Greg Sharenow. A leading global commodities manager, PIMCO launched its first enhanced index strategy two decades ago and its first commodity-linked strategy in 2002.

PRIMARY BENCHMARK

Credit Suisse Commodity Benchmark

PRIMARY BENCHMARK DESCRIPTION

The Credit Suisse Commodity Benchmark is an unmanaged index composed of futures contracts on a number of physical commodities. The objective of the benchmark is to gain exposure to the broad commodity universe while maintaining sufficient liquidity. Commodities were chosen based on world production levels, sufficient open interest, and volume of trading. The index is designed to be a highly liquid and diversified benchmark for commodities as an asset class. It is not possible to directly invest into an unmanaged index.

DIVIDEND FREQUENCY

Quarterly

SHARE CLASS INCEPTION

05/28/2010

CUSIP

72201P159

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Managers

Greg E. Sharenow

Portfolio Manager, Real Assets

View Profile

Nicholas J. Johnson

Porfolio Manager, Commodities

View Profile

Yields & Distributions

Historical Prices & Distributions

Distribution Yield (At Nav) 1 as of 09/30/2019 7.48%
1 - Day Distribution Yield as of 12/11/2019 -
30-Day SEC Yield as of 11/30/2019 0.68%
Latest Dividend Distribution ($ Share)2 as of 09/12/2019 $0.04138
Dividend Distribution (YTD) 3 as of 09/12/2019 $0.09994
Yields & Distributions Footnotes & Disclosures

disclosures

1The distribution yield for monthly paying Funds is calculated by annualizing actual dividends distributed for the monthly period ended on the date shown and dividing by the net asset value on the last business day for the same period. The distribution yield for quarterly paying Funds is calculated by taking the average of the prior four quarterly distribution yields. The quarterly distribution yields are calculated by annualizing actual dividends distributed for the quarterly period ended on the most recent quarterly distribution date and dividing by the net asset value for the same date. The distribution yield for annual paying Funds is calculated by taking the annual distribution divided by the Fund’s net asset value on ex-date. The yield is annualized if the Fund incepted less than a year ago. The yield does not include long- or short-term capital gains distributions.
2Data does not include special cash dividends.
3Data is based on distributions since the most recent calendar year end and does not include special cash dividends.
The 30 day SEC Yield is computed under an SEC standardized formula based on net income earned over the past 30 days.

Fees & Expenses

Effective as of 07/31/2019
Gross Expense Ratio 1.46%
Net Expense Ratio 1.26%
The Net Expense Ratio reflects a contractual fee waiver related to the Fund's subsidiary that will not terminate so long as PIMCO's advisory contract with the Fund's subsidiary is in place.
Adjusted Expense Ratio 1.19%
The Adjusted Expense Ratio is the same as the Net Expense Ratio, but also excludes certain investment expenses, such as interest expense from borrowings and repurchase agreements and dividend expense from investments on short sales, incurred directly by the Fund or indirectly through the Fund’s investments in underlying PIMCO Funds (if applicable), none of which are paid to PIMCO.

Front End Sales Charge Schedule

Sales Range (USD) Sales Charge %
Under $50,000 5.50%
$50,000 but under $100,000 4.50%
$100,000 but under $250,000 3.50%
$250,000 but under $500,000 2.50%
$500,000 but under $1 million 2.00%
$1 million+* 0.00%

Prices & Performance

Morningstar® Hypothetical Tool

Daily Statistics

All data as of 12/11/2019

NAV $5.22 One Day Return -0.57%
Daily Change $-0.03 Daily YTD Return 14.73%

All data as of

  • Daily
  • Month End
  • Quarter End

All data as of

  • Daily
  • Month End
  • Quarter End

Click here to view the Price and Performance for all Mutual Funds

Performance quoted represents past performance and is not a guarantee or a reliable indicator of future results. Investment return and the 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 average annual returns shown. The maximum offering price (MOP) returns take into account the Class A maximum initial sales charge of 5.50% .

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.

Calendar Year Returns %

All data as of

Growth of $10,000 (hypothetical)

Morningstar and Lipper

Prices & Performance Footnotes & Disclosures

disclosures

Performance figures presented reflect the total return performance after fees and reflect changes in share price and reinvestment of dividend and capital gain distributions on the payable date. All periods longer than one year are annualized.
Daily YTD return is from the most recent calendar year end.
Growth of $10,000 is calculated at NAV and assumes that all dividend and capital gain distributions were reinvested. It does not take into account sales charges or the effect of taxes. Results are not indicative of future performance.
A rating is not a recommendation to buy, sell or hold a fund. © 2019 Morningstar, Inc. All Rights Reserved. The information contained herein: (1) is proprietary to Morningstar; (2) may not be copied or distributed; and (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 performance is not a guarantee or a reliable indicator of future results.
Morningstar Rating™ 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. Morningstar, Inc.® 2017. All rights reserved. The information contained herein: (1) is proprietary to Morningstar (2) may not be copied or distributed and (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.
The Lipper Category returns and rankings are calculated by Lipper Inc., a Reuters Company, which is a nationally recognized organization that compares the performance of mutual funds with similar investment objectives. The Category returns represent the average performance of included funds, while rankings compare an individual fund's returns to those of the other funds in its category. Both are based on total return performance, with capital gains and dividends reinvested, with annual operating expenses deducted, but without including front- or back-end sales charges. Rankings begin with the actual share class inception. Rankings are relative to a peer group and do not necessarily mean that the fund had high total returns.

Portfolio Composition

All data as of unless otherwise stated

Commodity Exposure MV% Index

Energy 53.48
Livestock