High Yield Fund

PHIYX

Updated February 18, 2020

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 30 years of investing experience, and Sonali Pier, a seasoned investor with 16 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

RELATED

Dispersion in high yield credit has created potential pitfalls for passive investors and alpha opportunities for active credit pickers.

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Managers

Sonali Pier began managing the fund on 26 July 2019.

Andrew R. Jessop

Portfolio Manager, High Yield

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Sonali Pier

Portfolio Manager, Multi-Sector Credit

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Yields & Distributions

Historical Prices & Distributions

Distribution Yield (At Nav) 1 as of 01/31/2020 4.83%
1 - Day Distribution Yield as of 02/18/2020 -
30-Day SEC Yield as of 01/31/2020 3.53%
Latest Dividend Distribution ($ Share)2 as of 01/31/2020 $0.038084060
Dividend Distribution (YTD) 3 as of 01/31/2020 $0.038084060
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 0.59%
Adjusted Expense Ratio 0.55%
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

Daily Statistics

All data as of 02/18/2020

NAV $9.06 One Day Return -0.10%
Daily Change $-0.01 Daily YTD Return 0.87%

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.