GNMA and Government Securities Fund

PAGNX

Updated October 18, 2019

Objective

Seeks maximum total return, consistent with preservation of capital and prudent investment management

Primary Portfolio

Short to intermediate maturity mortgage-related fixed income securities (1-7 yr. avg. duration)

Overview

Fund Overview

Focused on government-guaranteed GNMA securities

This fund invests at least 80% of its assets in GNMA securities, part of the large and highly liquid mortgage-backed securities market, giving it high credit quality and attractive total return potential.

Why Invest In This Fund

A core investment

With its high average credit quality, this fund can make a solid addition to nearly any investor’s bond portfolio. PIMCO’s value oriented, risk conscious approach seeks to deliver consistent excess returns that are uncorrelated to traditional equity and bond markets.

Attractive return potential vs. Treasuries

GNMA securities are backed by the same full faith and credit guarantee offered by U.S. Treasury securities, yet typically provide higher yields to compensate for prepayment risk – the risk that mortgage borrowers can pay off their mortgages at any time.

Over 30 years of mortgage experience

Building on PIMCO’s experience in the mortgage sector and time-tested investment process, the fund’s managers seek to generate excess returns over time by using relative value trading strategies to exploit inefficiencies in the mortgage market.

Our Expertise

The fund is managed by Daniel Hyman and Michael Cudzil, mortgage specialists who both have over a decade of experience in the sector. The team draws on PIMCO’s robust mortgage research capabilities, which help identify security-specific risks as well as the effect of mortgage performance on other sectors and the broader economy.

PRIMARY BENCHMARK

Bloomberg Barclays GNMA Index

PRIMARY BENCHMARK DESCRIPTION

Bloomberg Barclays GNMA Index is an unmanaged index covering mortgage-backed pass-through securities of the Government National Mortgage Association (GNMA).

DIVIDEND FREQUENCY

Monthly with Daily Accrual

SHARE CLASS INCEPTION

11/30/2000

CUSIP

693391476

RELATED

The Fed has another lever to pull to ease monetary policy, one that could increase savings rates and create more disposable income.

Read More

Even as the probability of a recession in the near-term remains low, we believe investors should look to sectors that are likely to be resilient in periods of higher volatility.

Read More

In our view, a combination of positive macroeconomic factors is likely to keep prepayment speeds higher than the market projects.

Read More

Managers

Mike Cudzil

Portfolio Manager, Liability-Driven Investment

View Profile

Daniel H. Hyman

Head of Agency MBS Portfolio Management

View Profile

Yields & Distributions

Historical Prices & Distributions

Distribution Yield (At Nav) 1 as of 09/30/2019 2.82%
1 - Day Distribution Yield as of 10/18/2019 -
30-Day SEC Yield as of 09/30/2019 2.13%
Latest Dividend Distribution ($ Share)2 as of 09/30/2019 $0.024077640
Dividend Distribution (YTD) 3 as of 09/30/2019 $0.235287670
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 1.11%
Adjusted Expense Ratio 0.90%
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.

Front End Sales Charge Schedule

Sales Range (USD) Sales Charge %
Under $100,000 3.75%
$100,000 but under $250,000 3.25%
$250,000 but under $500,000 2.25%
$500,000 but under $1 million 1.75%
$1 million+* 0.00%

Prices & Performance

Daily Statistics

All data as of 10/18/2019

NAV $11.11 One Day Return 0.02%
Daily Change $0.00 Daily YTD Return 5.44%
Click here to view Historical Prices
  • Average Annual Returns
  • Cumulative Returns

All data as of

  • Daily
  • Month End
  • Quarter End

All data as of

  • Daily
  • Month End
  • Quarter End
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 3.75% .

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

  • Morningstar Ratings
  • Lipper Rankings
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.
The inception date provided is for the Fund’s oldest share class, the Institutional Class. The returns presented are for Class A shares, which were first offered in 5/01. Returns measure performance from the inception of the oldest share class to the present, so some returns predate the inception of Class A. Those returns are calculated by adjusting the Institutional returns to reflect the A shares' different charges and expenses. Total return performance does not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares.
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 2.02
1-3 yrs 65.82