High Yield Fund

PHIYX

Updated September 18, 2018

Objective

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

Primary Portfolio

High yield bonds (2-6 yr. avg. duration)

Overview

Fund Overview

A risk-focused approach to high yield investing

By concentrating on higher credit qualities within the non-investment-grade bond universe and avoiding the riskier, more speculative lower tiers, PIMCO High Yield Fund is designed to provide an attractive risk/reward tradeoff for high yield investors.

Why Invest In This Fund

Enhanced income potential

High yield bonds are issued by corporations that lack the long-term earnings or corporate growth to earn an investment grade rating from credit rating agencies. To compensate for this additional risk, high yield bonds offer significantly higher income potential than other types of fixed income securities.

Attractive risk/reward tradeoff

Credit qualities and their contributing underlying factors can vary dramatically within the non-investment-grade bond market. Focusing on the middle and upper echelons of credit ratings, PIMCO High Yield Fund takes a more conservative approach to high yield investing.

Fundamentals remain strong

Default rates for high yield bonds have fallen sharply since 2009, remaining well below their long-term historical average. This, along with improving balance sheets and higher recovery rates when defaults do occur, should continue to bode well for corporate fundamentals.

Our Expertise

PIMCO High Yield Fund is managed by Andrew Jessop, a high yield expert with 20+ years of investing experience, and Hozef Arif, a seasoned investor with 11 years of experience. The team is supported by PIMCO’s time-tested investment process, global macroeconomic forecasts, proprietary risk-management techniques, and detailed analysis of each security represented in the fund.

PRIMARY BENCHMARK

ICE BofAML U.S. High Yield, BB-B Rated, Constrained Index

PRIMARY BENCHMARK DESCRIPTION

ICE BofAML U.S. High Yield, BB-B Rated, Constrained Index tracks the performance of BB-B Rated U.S. Dollar-denominated corporate bonds publicly issued in the U.S. domestic market. Qualifying bonds are capitalization-weighted provided the total allocation to an individual issuer (defined by Bloomberg tickers) does not exceed 2%. Issuers that exceed the limit are reduced to 2% and the face value of each of their bonds is adjusted on a pro-rata basis. Similarly, the face value of bonds of all other issuers that fall below the 2% cap are increased on a pro-rata basis. It is not possible to invest directly in an unmanaged index.

DIVIDEND FREQUENCY

Monthly with Daily Accrual

SHARE CLASS INCEPTION

12/15/1992

CUSIP

693390841

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Managers

Andrew R. Jessop

Portfolio Manager, High Yield

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Hozef Arif

Portfolio Manager, High Yield

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Yields & Distributions