GNMA and Government Securities Fund

PANNX

Updated June 19, 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

01/31/2019

CUSIP

72202G349

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Managers

Mike Cudzil

Portfolio Manager, Liability-Driven Investment

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Daniel H. Hyman

Head of Agency MBS Portfolio Management

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Yields & Distributions

Historical Prices & Distributions

Distribution Yield (At Nav) 1 as of 05/31/2019 2.97%
1 - Day Distribution Yield as of 06/19/2019 -
30-Day SEC Yield as of 05/31/2019 2.76%
Latest Dividend Distribution ($ Share)2 as of 05/31/2019 $0.029501510
Dividend Distribution (YTD) 3 as of 05/31/2019 $0.117052840
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 01/31/2019
Total Expense Ratio 0.73%
Net Expense Ratio 0.68%
The Net Expense Ratio excluding interest expense is 0.65%. Interest expense can result from portfolio investment transactions and is not paid to PIMCO.
The Net Expense Ratio reflects a contractual supervisory and administrative fee waiver and/or expense reduction in place through 07/31/2019.

Portfolio Composition

All data as of unless otherwise stated

Maturity %

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0-1 yrs 0.81
1-3 yrs 68.23
3-5 yrs 32.58
5-10 yrs 0.97