Investors should consider the investment objectives, risks, charges and expenses of the funds carefully before investing. This and other information is 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 pimco.com or pimcoetfs.com. Please read them carefully before you invest or send money.
Past performance is not a guarantee or a reliable indicator of future results.
A word about risk : All investments contain risk and may lose value. 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 is 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. Equities may decline in value due to both real and perceived general market, economic and industry conditions. 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. Currency rates may fluctuate significantly over short periods of time and may reduce the returns of a portfolio. 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. Mortgage- and asset-backed securities may be sensitive to changes in interest rates, subject to early repayment risk, and while generally supported by a government, government-agency or private guarantor, there is no assurance that the guarantor will meet its obligations. Inflation-linked bonds (ILBs) issued by a government are fixed income securities whose principal value is periodically adjusted according to the rate of inflation; ILBs decline in value when real interest rates rise. Treasury Inflation-Protected Securities (TIPS) are ILBs issued by the U.S. government. Certain U.S. government securities are backed by the full faith of the government. Obligations of U.S. government agencies and authorities are supported by varying degrees but are generally not backed by the full faith of the U.S. government. Portfolios that invest in such securities are not guaranteed and will fluctuate in value. Income from municipal bonds may be subject to state and local taxes and at times the alternative minimum tax; a strategy concentrating in a single or limited number of states is subject to greater risk of adverse economic conditions and regulatory changes. Management risk is the risk that the investment techniques and risk analyses applied by PIMCO will not produce the desired results, and that certain policies or developments may affect the investment techniques available to PIMCO in connection with managing the strategy. 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.
For risks associated with a particular Fund, please refer to the Fund's prospectus.
There is no guarantee that these investment strategies will work under all market conditions or are suitable for all investors and each investor should evaluate their ability to invest long-term, especially during periods of downturn in the market. Investors should consult their investment professional prior to making an investment decision.
Buying or selling ETF shares on an exchange may require the payment of
brokerage commissions. Due to the costs inherent in buying or selling Fund
shares, frequent trading may detract significantly from investment returns.
Investment in Fund shares may not be advisable for investors who expect to
engage in frequent trading.
Different fund types (e.g. ETFs, open-ended investment companies) and fund
share classes are subject to different fees and expenses (which may affect
performance). They may also have different minimum investment requirements
and be entitled to different services.
Investing in the bond market is subject to certain risks including the risk
that fixed income securities will decline in value because of changes in
interest rates; 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.
Exchange Traded Funds (“ETF”) are afforded certain exemptions from the
Investment Company Act. The exemptions allow, among other things, for
individual shares to trade on the secondary market. Individual shares
cannot be directly purchased from or redeemed by the ETF. Purchases and
redemptions directly with ETFs are only accomplished through creation unit
aggregations or “baskets” of shares. Shares of an ETF are bought and sold
at market price (not NAV). Brokerage commissions will reduce returns.
Investment policies, management fees and other information can be found in
the individual ETF’s prospectus.
Current holdings are subject to risk. Holdings are subject to change at any
time. An investment in an ETF involves risk, including the loss of
principal. Investment return, price, yield and Net Asset Value (NAV) will
fluctuate with changes in market conditions. Investments may be worth more
or less than the original cost when redeemed.
ETF shares may be bought or sold throughout the day at their market price
on the exchange on which they are listed. However, there can be no
guarantee that an active trading market for PIMCO ETF shares will develop
or be maintained, or that their listing will continue or remain unchanged.
Premiums (when market price is above NAV) or discounts (when market price
is below NAV) reflect the differences (expressed as a percentage) between
the NAV and the Market Price of the Fund on a given day, generally at the
time the NAV is calculated. A discount or premium could be significant.
Data in chart format displaying the frequency distribution of discounts and
premiums of the Market Price against the NAV can be found for each Fund at www.pimcoetfs.com.
Correlation is a statistical measure of how two securities move in relation to each other. The correlation of various indexes or securities against one another or against inflation is based upon data over a certain time period. These correlations may vary substantially in the future or over different time periods that can result in greater volatility.
The credit quality of a particular security or group of securities does not ensure the stability or safety of an overall portfolio. The quality ratings of individual issues/issuers are provided to indicate the credit-worthiness of such issues/issuer and generally range from AAA, Aaa, or AAA (highest) to D, C, or D (lowest) for S&P, Moody’s, and Fitch respectively.
PIMCO does not provide legal or tax advice. Please consult your tax and/or legal counsel for specific tax or legal questions and concerns. The discussion herein is general in nature and is provided for informational purposes only. There is no guarantee as to its accuracy or completeness. Any tax statements contained herein are not intended or written to be used, and cannot be relied upon or used for the purpose of avoiding penalties imposed by the Internal Revenue Service or state and local tax authorities. Individuals should consult their own legal and tax counsel as to matters discussed herein and before entering into any estate planning, trust, investment, retirement, or insurance arrangement.
The Gross Domestic Product (GDP) is a measure of output from U.S. factories and related consumption in the United States. It does not include products made by U.S. companies in foreign markets. Standard deviation is a measure of the dispersion of a set of data from its mean. The more spread apart the data, the higher the deviation.
It is not possible to invest directly in an unmanaged index.
Forecasts, estimates and certain information contained herein are based upon proprietary research and should not be interpreted as investment advice, as an offer or solicitation, nor as the purchase or sale of any financial instrument. Forecasts and estimates have certain inherent limitations and, unlike an actual performance record, do not reflect actual trading, liquidity constraints, fees and/or other costs. In addition, references to future results should not be construed as an estimate or promise of results that a client portfolio may achieve. Statements concerning financial market trends or portfolio strategies are based on current market conditions, which will fluctuate. There is no guarantee that these investment strategies will work under all market conditions or are suitable for all investors, and each investor should evaluate his/her ability to invest for the long term, especially during periods of downturn in the market. Outlook and strategies are subject to change without notice.
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. 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. PIMCO Investments LLC, distributor, 1633 Broadway, New York, NY 10019, is a company of PIMCO. © 2019 PIMCO.