RealEstateRealReturn Strategy Fund

PNRNX

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

04/27/2018

CUSIP

72202E294

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Managers

Steve Rodosky began managing the fund on 9 January 2019.