Total Return ESG Fund

PTRSX

Updated November 28, 2022

Objective

Seeks maximum total return, consistent with preservation of capital and prudent investment management

Primary Portfolio

Intermediate-term fixed income securities with a concentration on socially conscious companies

|
in-page

Overview

Fund Overview

Anchor your portfolio with a solid, socially-conscious core

PIMCO’s Total Return family of funds has focused on maximizing total return potential while seeking capital preservation through prudent investment management. That emphasis has helped the fund deliver attractive returns through the ups and downs of bond market cycles since 1991. Total Return ESG, built on the Total Return foundation, uses environmental-, social-, and governance-related (ESG) criteria to choose securities that comprise the fund and to proactively engage with issuers to realize ESG-related objectives.

Why Invest In This Fund

Core bond fund with and an ESG focus

As a core bond holding, the fund aims to provide investors with maximum total return, consistent with preservation of capital by emphasizing higher quality, intermediate-term bonds and aims to avoid concentrated risk exposure by investing in a diversified portfolio of fixed income securities.

Investing for sustainability and impact factors

The fund focuses on the securities of issuers whose environment, social responsibility, and governance (ESG) business practices align with PIMCO’s ESG investment strategy. We use our own proprietary analysis of ESG issues and may also reference standards established by the UN. We also seek to actively engage with issuers with the goal of improving their ESG-related business practices.

Long-term track record

The fund has navigated varying market and interest rate environments since its inception in 1991 and benefits from PIMCO’s 50+ years of active fixed income management experience.

Our Expertise

Employing a time-tested investment process, PIMCO’s core bond portfolios seek diversification and help to provide resiliency when it’s needed most – during periods of equity drawdowns and market stress. The fund is supported by the full spectrum of PIMCO’s global resources and decades of active bond management experience.

DIVIDEND FREQUENCY

Monthly with Daily Accrual

SHARE CLASS INCEPTION

07/29/2022

CUSIP

72203G835

Managers

Mark R. Kiesel

CIO Global Credit

View Profile for Mark R. Kiesel

Qi Wang

CIO Portfolio Implementation

View Profile for Qi Wang

Mohit Mittal

Portfolio Manager, Multi-Sector

View Profile for Mohit Mittal

Jelle Brons

Portfolio Manager, Global Investment Grade Credit

View Profile for Jelle Brons

Fees & Expenses

Effective as of 08/01/2022
Gross Expense Ratio 0.71%
Net Expense Ratio 0.66%
The Net Expense Ratio reflects a contractual supervisory and administrative fee waiver and/or expense reduction in place through 07/31/2023.
Adjusted Expense Ratio 0.65%
The Adjusted Expense Ratio is the same as the Net Expense Ratio, but also 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.

Portfolio Composition

All data as of unless otherwise stated

Maturity %

0-1 yrs 9.51
1-3 yrs 15.71
3-5 yrs 13.53
5-10 yrs 32.71
10-20 yrs 26.02
20+ yrs 2.51
Effective Maturity (yrs) 7.30

Sector Allocation
Market Value %

US Government Related1 13.02
Securitized2 42.21
Invest. Grade Credit 23.79
High Yield Credit 1.66
Non-USD Developed 1.98
Emerging Markets3 4.65
Other4 3.15
Net Other Short Duration Instruments5 9.54

Duration in Years

Effective Duration (yrs) 5.32

disclosures

1May include nominal and inflation-protected Treasuries, Treasury futures and options, agencies, FDIC-guaranteed and government-guaranteed corporate securities, and interest rate swaps.
2The Securitized bucket will include Agency MBS, non-Agency MBS, CMBS, ABS, CDO, CLO, and Pooled Funds.
3Emerging markets instruments includes an emerging market security or other instrument economically tied to an emerging market country by country of risk with an effective duration less than one year and rated investment grade or higher or if unrated, determined to be similar quality by PIMCO. Emerging Markets includes the value of short duration emerging markets instruments previously reported in another category.
4May include municipals, convertibles, preferreds, and yankee bonds.
5Net Other Short Duration Instruments includes securities and other instruments (except those instruments tied to emerging markets by country of risk) with an effective duration less than one year and rated investment grade or higher or, if unrated, determined by PIMCO to be of comparable quality, commingled liquidity funds, uninvested cash, interest receivables, net unsettled trades, broker money, short duration derivatives and derivatives offsets. With respect to certain categories of short duration securities, the Adviser reserves the discretion to require a minimum credit rating higher than investment grade or take into account other pertinent factors for inclusion in this category. Derivatives Offsets includes offsets associated with investments in futures, swaps and other derivatives. Such offsets may be taken at the notional value of the derivative position.
Portfolio information in the charts is based on the fund's net assets. These percentages may differ from those used for the fund's compliance calculations, including the fund's prospectus, regulatory, and other investment limitations and policies, which may be based on total assets of the fund or other measurements, may include or exclude various categories of investments from those covered in the portfolio allocation categories shown in this report, and may be based on different classifications and measurements of the fund’s investments and other criteria.
References to specific sectors, securities or issuers are for illustrative purposes only. All holdings are subject to change daily. All share classes have the same portfolio but different expenses.
Duration is a measure of a portfolio’s price sensitivity expressed in years. Effective duration is the duration for a bond with an embedded option when the value is calculated to include the expected change in cash flow caused by the option as interest rates change.

Documents

See More

Please select one or more documents to take an action.

The highlighted items cannot be added to my contents.

The highlighted items cannot be ordered.

Please resubmit request to proceed.

Disclosures

Investors should consider the investment objectives, risks, charges and expenses of the funds carefully before investing. This and other information are contained in the fund’s prospectus and summary prospectus, if available, which may be obtained by contacting your investment professional or PIMCO representative.  Please read them carefully before you invest or send money.

PIMCO Total Return ESG Fund is a diversified portfolio of high-quality bonds that is actively managed to maximize return in a risk-controlled framework while focusing on environmental-, social-, and governance oriented (ESG) principles.[1] Please see the Fund’s prospectus for more detailed information related to its investment objectives, investment strategies and approach to ESG.

 

The Fund considers ESG factors to choose securities that comprise the fund and to proactively engage with issuers to realize ESG-objectives. Environmental (“E”) factors can include matters such as climate change, pollution, waste, and how an issuer protects and/or conserves natural resources. Social (“S”) factors can include how an issuer manages its relationships with individuals, such as its employees, shareholders, customers and its community. Governance (“G”) factors can include how an issuer operates, such as its leadership, pay and incentive structures, internal controls, and the rights of equity and debt holders

A word about risk:

Investing in the bond market is subject to risks, including market, interest rate, issuer, credit, inflation risk, and liquidity risk. The value of most bonds and bond strategies are impacted by changes in interest rates. Bonds and bond strategies with longer durations tend to be more sensitive and volatile than those with shorter durations; bond prices generally fall as interest rates rise, and low interest rate environments increase this risk. Reductions in bond counterparty capacity may contribute to decreased market liquidity and increased price volatility. Bond investments may be worth more or less than the original cost when redeemed. Investing in foreign denominated and/or domiciled securities may involve heightened risk due to currency fluctuations, and economic and political risks, which may be enhanced in emerging markets. Mortgage and asset-backed securities may be sensitive to changes in interest rates, subject to early repayment risk, and their value may fluctuate in response to the market’s perception of issuer creditworthiness; while generally supported by some form of government or private guarantee there is no assurance that private guarantors will meet their obligations. High-yield, lower-rated, securities involve greater risk than higher-rated securities; portfolios that invest in them may be subject to greater levels of credit and liquidity risk than portfolios that do not. Equities may decline in value due to both real and perceived general market, economic, and industry conditions. Derivatives may involve certain costs and risks such as liquidity, interest rate, market, credit, management and the risk that a position could not be closed when most advantageous. Investing in derivatives could lose more than the amount invested. Diversification does not ensure against loss. A Fund’s ESG investing strategy may select or exclude securities of certain issuers for reasons other than financial performance.  Such strategy carries the risk that the Fund’s performance will differ from similar funds that do not utilize an ESG investing strategy. For example, the application of this strategy could affect the Fund’s exposure to certain sectors or types of investments, which could negatively impact the Fund’s performance. ESG investing is qualitative and subjective by nature, and there is no guarantee that the factors utilized by PIMCO or any judgment exercised by PIMCO will reflect the opinions of any particular investor, and the factors utilized by PIMCO may differ from the factors that any particular investor considers relevant in evaluating an issuer’s ESG practices. In evaluating an issuer, PIMCO is dependent upon information and data obtained through voluntary or third-party reporting that may be incomplete, inaccurate or unavailable, or present conflicting information and data with respect to an issuer, which in each case could cause PIMCO to incorrectly assess an issuer’s business practices with respect to its ESG practices. Socially responsible norms differ by region, and an issuer’s ESG practices or PIMCO’s assessment of an issuer’s ESG practices may change over time. There is no standardized industry definition or certification for certain ESG categories, for example “green bonds”; as such, the inclusion of securities in these statistics involves PIMCO's subjectivity and discretion. There is no assurance that the ESG investing strategy or techniques employed will be successful. Past performance is not a guarantee or reliable indicator of future results. For risks related to a specific fund, please refer to the Fund's prospectus or summary prospectus if available.
PIMCO does not provide legal or tax advice. Please consult your tax and/or legal counsel for specific tax or legal questions and concerns.
PIMCO as a general matter provides services to qualified institutions, financial intermediaries and institutional investors. Individual investors should contact their own financial professional to determine the most appropriate investment options for their financial situation. This material contains the current opinions of the manager and such opinions are subject to change without notice. For Informational Purposes Only. Information contained herein has been obtained from sources believed to be reliable, but not guaranteed. No part of this material may be reproduced in any form, or referred to in any other publication, without express written permission. PIMCO is a trademark of Allianz Asset Management of America L.P. in the United States and throughout the world. ©2022, PIMCO
PIMCO Investments LLC, distributor, 1633 Broadway, New York, NY 10019, is a company of PIMCO.
CMR2022-0713-2289151