Long-Term Real Return Fund

PRTPX

Updated June 24, 2019

Objective

Seeks maximum real return, consistent with prudent investment management

Primary Portfolio

Inflation-indexed bonds

Overview

Fund Overview

Help protect long-term purchasing power

Inflation often appears quickly and unexpectedly, making it important for long-term investors to be prepared in all market environments. The fund aims to help investors protect their purchasing power against the effects of inflation by seeking real (inflation-adjusted) returns primarily from Treasury Inflation-Protected Securities (TIPS).

Why Invest In This Fund

A high-quality inflation hedge

Active management has helped the fund deliver short- and long-term returns solidly ahead of inflation, while the portfolio’s investment-grade orientation has provided a smoother ride than other real return assets such as commodities and real estate.

Potential diversification benefits

While traditional asset classes such as stocks and bonds usually move inversely to inflation, TIPS tend to move in the same direction as inflation. Investing in assets with low correlations to one another, i.e., assets influenced by different factors, may help enhance a portfolio’s diversification, potentially lowering overall volatility. TIPS can decline in value if interest rates rise, and may be particularly sensitive if real interest rates rise rapidly.

PIMCO’s expertise

By drawing on the expertise of our global portfolio management team, the fund is able to take advantage of our macro inflation outlook and bottom-up research capabilities as it aims to deliver returns above a passive index.

Our Expertise

The strategy is managed by veteran investors Mihir Worah, CIO Real Return and Asset Allocation and head of the real return and multi-asset portfolio management teams, and Stephen Rodosky, managing director who focuses on U.S. long duration strategies. PIMCO, one of the largest U.S. investors in TIPS and other inflation-linked assets, launched the country’s first TIPS-focused mutual fund, the same day as the first TIPS auction.

PRIMARY BENCHMARK

Bloomberg Barclays U.S. Treasury Inflation Notes: 10+ Year Index

PRIMARY BENCHMARK DESCRIPTION

Bloomberg Barclays U.S. Treasury Inflation Notes: 10+ Year Index is an unmanaged market index comprised of U.S. Treasury Inflation Protected securities with maturities of over 10 years. It is not possible to invest directly in an unmanaged index.

DIVIDEND FREQUENCY

Monthly with Daily Accrual

SHARE CLASS INCEPTION

11/19/2010

CUSIP

72201W816

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Managers

Steve Rodosky began managing the fund on 9 January 2019.

Mihir P. Worah

CIO Asset Allocation and Real Return

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Steve A. Rodosky

Portfolio Manager, Real Return and Long Duration

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Yields & Distributions