Short-Term Fund

PSHAX

Updated December 10, 2019

Objective

Seeks maximum current income, consistent with preservation of capital and daily liquidity

Primary Portfolio

Short-term, investment grade bonds (average duration is less than or equal to 1 yr)

Overview

Fund Overview

Potential to outperform cash investments, with low volatility

By focusing on ultra-short, high quality fixed income securities, the fund offers higher income potential than traditional cash investments, with modest additional risk.

Why Invest In This Fund

Potential to provide a steady source of current income

Short-term bonds can function as an attractive option for investors looking to generate a higher level of income than savings accounts and CDs. However, short-term bond funds do not seek to maintain stable values and offer no guarantees.

Lower potential volatility

The fund’s ultra-short duration is more resistant to interest rate fluctuations than longer-term bonds, resulting in generally lower price volatility. In fact, the fund’s net asset value (NAV) has fluctuated only moderately since its 1987 inception. This low volatility is the result of the fund’s overall ultra-short duration.

A risk-focused approach

The fund’s total return approach means that it is designed to avoid sacrificing principal by simply reaching for the highest yields. In addition to employing sophisticated risk controls, the fund seeks to benefit from the firm’s efforts to identify major market risks early and position portfolios accordingly.

Our Expertise

The portfolio manager for PIMCO Short-Term Fund is Jerome Schneider, named Morningstar’s 2015 U.S. Fixed Income Fund Manager of the Year. Mr. Schneider is a Managing Director who started his investment career in 1996 and is responsible for supervising all of the firm’s short-term investment strategies.

PRIMARY BENCHMARK

FTSE 3-Month Treasury Bill Index

PRIMARY BENCHMARK DESCRIPTION

FTSE 3-Month Treasury Bill Index is an unmanaged index representing monthly return equivalents of yield averages of the last 3 month Treasury Bill issues. It is not possible to invest directly in an unmanaged index.

DIVIDEND FREQUENCY

Monthly with Daily Accrual

SHARE CLASS INCEPTION

01/20/1997

CUSIP

693391211

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Managers

Andrew Wittkop and Nathan Chiaverini began managing the fund on 1 April 2019.

Jerome M. Schneider

Head of Short-Term Portfolio Management

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Andrew T. Wittkop

Portfolio Manager, Treasuries, Agencies, Rates

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