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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 or by visiting www.pimco.com/investments. Please read them carefully before you invest or send money.
PIMCO funds asset outperformance based on 31 October 2014 data for the 76 out of 93 funds held in the PIMCO Funds and PIMCO Equity Series Trusts with a three-year performance record at time of calculation. If other fund complexes were included performance data would vary. The three-year rolling period was selected to align with PIMCO’s cyclical outlook timeframe. Benchmark AUM outperformance is based on net of fees performance data. To calculate we segregated the funds’ AUM by share class then applied the actual fee structure per share class. The resulting net-of-fees performance was then compared to the Fund’s primary benchmark. If the net-of-fees account performance was greater than the benchmark performance for a given period, the assets in that Fund were included in the outperforming data. Benchmark outperformance indicates the performance of a Fund as compared to its benchmark. As such, it does not indicate that a Fund’s performance was positive during any given period. For example, if a Fund declined 3% during a given period, and its benchmark declined 4%, the Fund would have outperformed its benchmark, even though it lost value during the period. Certain absolute return oriented funds contained within the data may inflate the data either positively or negatively due to the low return/volatility characteristics of the primary benchmark. For example a Fund measured against 3-month USD Libor would be more likely to out- or underperform its benchmark. No measure of past performance should be understood to ensure that future performance will be positive, whether on a relative or absolute basis.
Net Assets information is based on net asset value accounting. As such, shareholder purchases and redemptions placed on a particular business day are not reflected in the net assets reported as of such business day and will instead generally be included in the net assets on the following business day. Estimated Monthly Net Cash Flows include shareholder purchase and redemption orders but exclude most cash dividends and dividend reinvestment. Unlike Net Assets information, which is based on net asset value accounting, Estimated Monthly Net Cash Flows are based on the business day when shareholder purchase and redemption orders are received. This information is unaudited and may be revised at a later date.
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 the current low interest rate environment increases this risk. Current 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. 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.
Barclays 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. Morningstar Intermediate-term bond funds have average durations that are greater than 3.5 years and less than six years. Most of the funds rotate among a variety of sectors in the bond market, based upon which appear to offer better values. Whatever types of bonds they hold, these funds are less sensitive to interest rates, and therefore less volatile, than funds that have longer durations. Data estimated by Morningstar as of 11/30/2014 for the intermediate-term bond category. It is not possible to invest directly in an index.
The performance figures presented reflect the total return performance and reflect changes in share price and reinvestment of dividend and capital gain distributions. All periods longer than one year are annualized.
The minimum initial investment for the Institutional class shares is $1 million; however, it may be modified for certain financial intermediaries who submit trades on behalf of eligible investors.
This material has been distributed for informational purposes only and should not be considered as investment advice or a recommendation of any particular security, strategy or investment product. Information contained herein has been obtained from sources believed to be reliable, but not guaranteed. PIMCO and YOUR GLOBAL INVESTMENT AUTHORITY are trademarks or registered trademarks of Allianz Asset Management of America L.P. and Pacific Investment Management Company LLC, respectively, in the United States and throughout the world. ©2014 PIMCO.
PIMCO Investments LLC, distributor, 1633 Broadway, New York, NY 10019, is a company of PIMCO.