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Prospectus

Total Return Fund V

PPEIX

Updated December 04, 2023

Prospectus

Objective

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

Primary Portfolio

Intermediate-term, investment grade bonds

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Overview

Fund Overview

A socially-conscious core strategy

Fund that is focused on maximizing total return potential while seeking capital preservation through prudent investment management. PIMCO’s time-tested approach seeks attractive returns through various economic cycles. Total Return V, built on PIMCO’s Total Return investment process and philosophy, can exclude issuers generally misaligned with faith-based investing values*, while also using environmental-, social-, and governance-related (ESG) criteria to choose securities that comprise the fund. PIMCO may also proactively engage with issuers to encourage improved ESG practices.

Why Invest In This Fund

Quality, diversification, and flexibility in a core bond fund that has a values-based 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 values

The fund focuses on the securities of issuers whose business practices align with faith-based values and PIMCO’s ESG investment process. We use a proprietary assessment of material sustainability factors and may also reference standards established by the UN or MSCI Catholic Values Screening Methodology. PIMCO may also actively engage with issuers on material sustainability factors and related risks.

PRIMARY BENCHMARK

Bloomberg U.S. Aggregate Index

PRIMARY BENCHMARK DESCRIPTION

Bloomberg U.S. Aggregate Index represents securities that are SEC-registered, taxable, and dollar denominated. The index covers the U.S. investment grade fixed rate bond market, with index components for government and corporate securities, mortgage pass-through securities, and asset-backed securities. These major sectors are subdivided into more specific indices that are calculated and reported on a regular basis. It is not possible to invest directly in an unmanaged index.

DIVIDEND FREQUENCY

Monthly with Daily Accrual

SHARE CLASS INCEPTION

05/01/2023

CUSIP

72203G785

Managers

Mohit Mittal

Portfolio Manager, Multi-Sector

View Profile for Mohit Mittal

Qi Wang

CIO Portfolio Implementation

View Profile for Qi Wang

Jelle Brons

Portfolio Manager, Global and U.S. Investment Grade Credit

View Profile for Jelle Brons

Mark R. Kiesel

CIO Global Credit

View Profile for Mark R. Kiesel

Fees & Expenses

Effective as of 07/31/2023
Gross Expense Ratio 0.55%
Net Expense Ratio 0.50%
The Net Expense Ratio reflects a contractual fee waiver and/or expense reduction, which is in place through 07/31/2024 and renews automatically for a full year unless terminated by PIMCO in accordance with the terms of the agreement. See the Fund's prospectus for more information.

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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 intends to predominately rely upon, among other things, information provided by an independent third party to determine whether an issuer is known to be engaged in an activity, including research and screens employed for certain values-based or Catholic institutions such as the MSCI Catholic Values Screening Methodology and related research. PIMCO may also apply additional screens and exclusions. For example, where an issuer is not covered by a third-party, PIMCO may conduct additional reviews to determine whether an investment is consistent with the philosophy of those screens and/or exclusions. There can be no guarantee that the activities of the companies identified for investment (or exclusion) will align with the principles of a faith-based investor.


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


The fund incorporates healthcare-related exclusions, which include abortion providers, stem cell research, contraception manufacturers, adult entertainment providers, and recreational cannabis. 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.; the risk that fund shares could trade at prices other than the net asset value; and the risk that the manager's investment decisions might not produce the desired results. 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 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 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 LLC in the United States and throughout the world. ©2023, PIMCO
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