RealEstateRealReturn Strategy Fund

PETPX

Updated April 18, 2019

Objective

Seeks maximum real return, consistent with prudent investment management

Primary Portfolio

Real estate-linked derivatives backed by a portfolio of inflation indexed and other fixed income securities

Overview

Fund Overview

Capture the inflation-hedging potential of real estate

Harnessing PIMCO’s innovative Double Real® approach, the fund seeks to capture the performance potential of a broad real estate investment trust (REIT) index backed by a collateral portfolio of Treasury Inflation-Protected Securities (TIPS).

Why Invest In This Fund

A Double Real inflation hedge

The fund seeks to capture the performance potential of real estate through derivative exposure to the broad-based Dow Jones U.S. Select Real Estate Investment Trust (REIT) Index. This exposure is collateralized with a portfolio of TIPS that provide additional return and inflation hedging potential.

Diversification potential

Real estate has a low correlation, or tendency not to move in lockstep, with stock and bond returns. This gives real estate the potential to enhance returns and lower risk in a diversified investment portfolio. Of course, diversification cannot guarantee a profit or protect against loss.

Combined expertise

The fund combines the benefits of real estate as an asset class with the industry leading experience of PIMCO as an active manager of real estate-linked derivatives and TIPS collateral.

Our Expertise

The strategy is managed by veteran real return investors Mihir Worah, CIO Real Return and Asset Allocation and head of the real return and multi-asset portfolio management teams, Nicholas Johnson and Jeremie Banet. PIMCO, a leading global manager in inflation-related assets, launched its first enhanced index strategy more than two decades ago and its first real estate-linked strategy in 2002

PRIMARY BENCHMARK

Dow Jones U.S. Select REIT Total Return Index

PRIMARY BENCHMARK DESCRIPTION

The Dow Jones U.S. Select Real Estate Investment Trust (REIT) Total Return Index is a subset of the Dow Jones Americas Select Real Estate Securities Index (RESI) and includes only REITs and REIT-like securities. The objective of the index is to measure the performance of publicly traded real estate securities. The indexes are designed to serve as proxies for direct real estate investment, in part by excluding companies whose performance may be driven by factors other than the value of real estate. It is not possible to invest directly in the index. Prior to April 1st, 2009, this index was named Dow Jones Wilshire REIT Total Return Index.

DIVIDEND FREQUENCY

Quarterly

SHARE CLASS INCEPTION

04/30/2008

CUSIP

72201M628

RELATED

Investors in UK inflation-linked bonds are facing two critical sources of structural uncertainty: Brexit-induced volatility and questions about the deeply entrenched (yet problematic) Retail Price Index (RPI).

Read More

Many investment portfolios that rely heavily on stock-bond diversification to manage risks may not be protected against inflation surprises. Real assets offer a solution.

Read More

Managers

Steve Rodosky began managing the fund on 9 January 2019.

Mihir P. Worah

CIO Asset Allocation and Real Return

View Profile

Nicholas J. Johnson

Porfolio Manager, Commodities

View Profile

Steve A. Rodosky

Portfolio Manager, Real Return and Long Duration

View Profile

Yields & Distributions

Historical Prices & Distributions

Distribution Yield (At Nav) 1 as of 03/31/2019 4.12%
1 - Day Distribution Yield as of 04/18/2019 -
30 - Day SEC Yield2 as of 03/31/2019 1.71%
30 - Day SEC Yield2 as of 04/18/2019 -
Latest Dividend Distribution ($ Share)3 as of 03/14/2019 $0.23525
Dividend Distribution (YTD) 4 as of 03/14/2019 $0.23525
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.
2The 30-Day SEC yield is an annualized yield based on the most recent 30 day period.
3Data does not include special cash dividends.
4Data is based on distributions since the most recent calendar year end and does not include special cash dividends.
The SEC yield is an annualized yield based on the most recent 30 day period. The fund’s yield quotation includes an adjustment to the principal value of the TIPS securities to reflect changes in the government’s official inflation rate, if any; changes in the government’s official inflation rate can cause the fund’s yield to vary substantially from one month to the next. At times, including during periods of deflation, the SEC yield calculation may result in a negative number. If the current 30-day SEC yield is denoted with a “‡,” we believe it is attributable to a rise in the inflation rate, and might not be repeated. Due to the consolidation of operations and permanence of the fund’s fee waivers, such waivers do not materially affect the fund’s SEC yield.
Unless stated, the Fund does not have an unsubsidized yield.

Fees & Expenses

Effective as of 07/30/2018
Total Expense Ratio 1.36%
The Net Expense Ratio excluding interest expense is 0.84%. Interest expense can result from portfolio investment transactions and is not paid to PIMCO.

Prices & Performance

Daily Statistics

All data as of 04/18/2019

NAV $8.63 One Day Return 1.05%
Daily Change $0.09 Daily YTD Return 16.03%
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. 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.

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.
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

Real Estate Sectors - MV%

Apartments 21.35
Office Property 13.16
Diversified 12.41
Health Care 9.51
Warehouse/Industry 8.98
Regional Malls 8.95
Storage 7.69