CommodityRealReturn Strategy Fund®

PCRRX

Updated August 05, 2020

Objective

Seeks maximum real return, consistent with prudent investment management

Primary Portfolio

Commodity Index-linked derivative instruments backed by a portfolio of inflation-indexed bonds and other fixed income securities

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Overview

Fund Overview

Bolster inflation-fighting potential

Harnessing PIMCO’s innovative Double Real® approach, the fund allows investors to access broad commodity market returns, with enhanced return potential from Treasury Inflation-Protected Securities (TIPS) collateral.

Why Invest In This Fund

A Double Real index strategy

The fund seeks to capture the performance potential of commodities through derivative exposure to the broad-based Bloomberg Commodity Index. The fund collateralizes this exposure with a portfolio of TIPS that is designed to serve as an additional source of return and inflation hedge.

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 that commodities may be volatile and that diversification doesn’t protect against loss.

Combined expertise

The fund seeks to capitalize on PIMCO’s long-standing experience in commodity-linked derivatives and TIPS. The management team looks to add value by avoiding the inefficiencies of passive commodity indexing, seeking out additional excess return opportunities within commodity markets and actively managing the collateral portfolio.

Our Expertise

The strategy is managed by three veteran investors Nicholas Johnson, Greg Sharenow and Steve Rodosky, who are backed by the full spectrum of PIMCO’s global resources. A leading global commodities manager, PIMCO launched its first enhanced index strategy two