Dynamic Bond Fund

PFIUX

Updated July 02, 2020

Objective

Seeks maximum long-term return, consistent with preservation of capital and prudent investment management

Primary Portfolio

The average portfolio duration of this Fund will normally vary from (negative) 3 years to positive 8 years.

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Overview

Fund Overview

A flexible bond strategy that taps the global fixed income universe

PIMCO Dynamic Bond Fund offers investors flexibility and potential for enhanced portfolio resiliency in the face of challenging market environments. With the ability to go where the opportunities are across the global bond universe, untethered by traditional, interest rate-dominated benchmarks, the fund seeks to take advantage of market dislocations – while remaining focused on prudent risk management.

Why Invest In This Fund

A complement to core bonds – and a comprehensive fixed income solution

The fund has the potential to be more defensive than core bonds when rates rise while also maintaining the long-term benefits of the asset class like modest volatility, liquidity and reduced sensitivity to equities.

Lower correlation to traditional equities and bonds

By combining rigorous top-down and bottom-up research, the fund is able to focus on finding what PIMCO believes are the best ideas across global rates, spreads, and currencies, and rely less on single risk factors, such as credit, in seeking to generate attractive returns – offering diversified, global exposure across all fixed income opportunities.

Access to one of the world’s premier fixed income managers

Working closely together, the fund’s veteran portfolio management team and PIMCO’s risk managers draw on our industry-leading expertise, time-tested investment process and global resources to drive attractive return potential and diversify risk.

Our Expertise

The fund’s expert portfolio management team – Marc Seidner is CIO of Non-traditional Strategies, Mohsen Fahmi is a managing director with 30+ years of investment experience, and Dan Ivascyn is PIMCO’s Group CIO - is supported by the full spectrum of PIMCO’s global resources and our four decades of active bond management experience.

PRIMARY BENCHMARK

3 Month USD LIBOR

PRIMARY BENCHMARK DESCRIPTION

The 3 Month USD LIBOR (London Interbank Offered Rate) is an average interest rate, determined by the ICE Benchmark Administration, that banks charge one another for the use of short-term money (3 months) in England's Eurodollar market. It is not possible to invest in an unmanaged index.

DIVIDEND FREQUENCY

Monthly with Daily Accrual

SHARE CLASS INCEPTION

06/30/2008

CUSIP

72201M487

RELATED

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With more bonds trading at negative yields globally, benchmark-agnostic strategies look compelling.

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In unsettled markets, flexible solutions may help investors capture opportunity and mitigate risk.

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Managers

Marc P. Seidner

CIO Non-traditional Strategies

View Profile for Marc P. Seidner

Mohsen Fahmi

Portfolio Manager, Global Fixed Income

View Profile for Mohsen Fahmi

Daniel J. Ivascyn

Group Chief Investment Officer

View Profile for Daniel J. Ivascyn

Yields & Distributions

Historical Prices & Distributions

Distribution Yield (At Nav) 1 as of 05/31/2020 2.20%
1 - Day Distribution Yield as of 07/02/2020 -
30-Day SEC Yield as of 05/31/2020 2.63%
Latest Dividend Distribution ($ Share)2 as of 06/30/2020 $0.014287860
Dividend Distribution (YTD) 3 as of 06/30/2020 $0.138515890

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 1.01%
Adjusted Expense Ratio 0.81%
The Adjusted Expense Ratio 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.

Prices & Performance

locked

Daily Statistics

All data as of 07/02/2020

NAV $10.59 One Day Return 0.11%
Daily Change $0.01 Daily YTD Return 1.08%

All data as of

All data as of

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. Performance quoted does not reflect any sales charges, if applicable, and performance would be lower if it did.

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

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.
Total return performance does not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. 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.
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

Maturity %

0-1 yrs 20.84
1-3 yrs 39.01
3-5 yrs 28.71
5-10 yrs 22.48
10-20 yrs 2.84
20+ yrs -13.88
Effective Maturity (yrs) -0.32

Duration in Years

Effective Duration (yrs) 1.02

Risk Characteristics
(Trailing 3 Years)

Standard Deviation 3.75
Sharpe Ratio4 0.28
Information Ratio5 0.20
Tracking Error6 3.82

Sector Allocation
Market Value %

US Government Related7 -2.17
Securitized8 67.16
Invest. Grade Credit 18.87
High Yield Credit -0.66
Non-USD Developed -1.38
Emerging Markets9 6.08
Other10 3.52
Net Other Short Duration Instruments11 8.58

disclosures

4The Sharpe Ratio measures the risk-adjusted performance. The risk-free rate is subtracted from the rate of return for a portfolio and the result is divided by the standard deviation of the risk-free rate subtracted from the portfolio returns.
5The information ratio is defined as the portfolio's excess return per unit of risk, or tracking error. For example, an information ratio of 1 means that a portfolio manager generates 100 basis points, or one percent of excess return for every 100 basis points of