1 The following individuals received the US Morningstar Fixed-Income Fund Manager of the Year award: Jerome Schneider (2015); Dan Ivascyn and Alfred Murata (2013); Mark Kiesel (2012); The Morningstar Fixed Income Fund Manager of the Year award (US) is based on the strength of the manager, performance, strategy, and firm's stewardship, 2 PIMCO, 31 December 2018; 3 Brightscope, 31 December 2018; 4 Based on study of PIMCO DC AUM and data from P&I article dated October 2018.
Barron’s equity rankings are sub-components of the Barron’s Fund Family rankings. Barron’s Fund Family overall ranking for PIMCO: 1Yr. 2 out of 61; 5Yrs. 1 out of 54, and; 10 Yrs. 1 out of 53. Barron’s/Lipper ranking 2016 is based on after fees performance weighted by asset size, relative to the fund family’s other assets in its general classification. Performance of a fund family’s largest funds can materially affect a firm’s ranking. To be included in the ranking, a firm must have at least three funds in the general equity category, one world equity, one mixed equity (e.g., balanced or target-date fund), two taxable bonds, and one tax-exempt bond fund. Single-sector, country, and state-specific municipal-bond funds are not factored into the score; nor are Standard & Poor’s 500 index funds. Past rankings are no guarantee of future rankings.
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. Click here for a complete list of the PIMCO Funds prospectuses and summary prospectuses. Please read them carefully before you invest or send money.
A word about risk: The funds invest in other PIMCO and non-PIMCO funds and performance is subject to underlying investment weightings which will vary. The cost of investing in a fund that invests in other funds will generally be higher than the cost of investing in a fund that invests directly in individual stocks and bonds. 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. 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. 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. 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. Tail risk hedging may involve entering into financial derivatives that are expected to increase in value during the occurrence of tail events. Investing in a tail event instrument could lose all or a portion of its value even in a period of severe market stress. A tail event is unpredictable; therefore, investments in instruments tied to the occurrence of a tail event are speculative. Derivatives and commodity-linked 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. Commodity-linked derivative instruments may involve additional costs and risks such as changes in commodity index volatility or factors affecting a particular industry or commodity, such as drought, floods, weather, livestock disease, embargoes, tariffs and international economic, political and regulatory developments. Investing in derivatives could lose more than the amount invested. Diversification does not ensure against loss.
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.
Glide path is the asset allocation within a target-date strategy (also known as a lifecycle or target maturity strategy) that adjusts over time as the participant’s age increases and their time horizon to retirement shortens. The basis of the glide path is to reduce the portfolio risk as the participant’s time horizon decreases. Typically, younger participants with a longer time horizon to retirement have sufficient time to recover from market losses, their investment risk level is higher, and they are able to make larger contributions (depending on various factors such as salary, savings, account balance, etc.). Generally, older participants and eligible retirees have a shorter time horizon to retirement, and their investment risk level declines as preserving income wealth becomes more important.
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 their ability to invest for the long term, especially during periods of downturn in the market. Investors should consult their investment professional prior to making an investment decision.
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