CommodityRealReturn Strategy Fund

PCRIX

Updated September 29, 2016

Objective

Seeks maximum real return, consistent with prudent investment management

Primary Portfolio

Commodity Index-linked derivative instruments backed by a portfolio of inflation-indexed bonds and other fixed income securities

Overview

Important Fund Event: Reverse Split
On August 7, 2015, the fund performed a reverse share split. The reverse split reduced the number of shares owned and proportionately increased the price per share. The increased price per share is reflected in the “Daily Change” value as of 8/7/2015. For a helpful Q&A on the reverse share split, click here.

Fund Overview

Bolster inflation-fighting potential

Harnessing PIMCO’s innovative Double Real® approach, the fund allows investors to access broad commodity market returns, with enhanced return potential from Treasury Inflation-Protected Securities (TIPS) collateral.

Why Invest In This Fund

A Double Real index strategy

The fund seeks to capture the performance potential of commodities through derivative exposure to the broad-based Bloomberg Commodity Index. The fund collateralizes this exposure with a portfolio of TIPS that is designed to serve as an additional source of return and inflation hedge.

Inflation-hedging, diversification potential

Commodities have had a positive correlation with inflation, typically appreciating when inflation spikes; they also have had low or negative correlation with stocks and bonds, which can enhance portfolio diversification. It should be noted that commodities may be volatile and that diversification doesn’t protect against loss.

Combined expertise

The fund seeks to capitalize on PIMCO’s long-standing experience in commodity-linked derivatives and TIPS. The management team looks to add value by avoiding the inefficiencies of passive commodity indexing, seeking out additional excess return opportunities within commodity markets and actively managing the collateral portfolio.

Our Expertise

The strategy is managed by veteran real return investors Mihir Worah, CIO Real Return and Asset Allocation and head of the real return and multi-asset portfolio management teams, Nicholas Johnson and Jeremie Banet. A leading global commodities manager, PIMCO launched its first enhanced index strategy two decades ago and its first commodity-linked strategy in 2002.

PRIMARY BENCHMARK

Bloomberg Commodity Index Total Return

PRIMARY BENCHMARK DESCRIPTION

Bloomberg Commodity Index Total Return is an unmanaged index composed of futures contracts on 20 physical commodities. The index is designed to be a highly liquid and diversified benchmark for commodities as an asset class. It is not possible to invest directly in an unmanaged index.

DIVIDEND FREQUENCY

Quarterly

SHARE CLASS INCEPTION

06/28/2002

CUSIP

722005667

RELATED

Managers

Mihir P. Worah

CIO Asset Allocation and Real Return

View Profile

Jeremie Banet

Portfolio Manager, Real Return

View Profile

Nicholas J. Johnson

Porfolio Manager, Commodities

View Profile

Yields & Distributions

Historical Prices & Distributions

Distribution Yield (At Nav) as of 06/30/2016 4.04%
30 - Day SEC Yield as of 08/31/2016 4.17%
30 - Day SEC Yield as of 09/29/2016 -
Latest Dividend Distribution ($ Share) as of 09/15/2016 $0.03316
Dividend Distribution (YTD) as of 09/15/2016 $0.05297

Fees & Expenses

Total Annual Operating Expenses 1.08%
Net Operating Expenses 0.93%
Net Operating Expenses Ex-interest 0.74%

Prices & Performance

Important Fund Event: Reverse Split
On August 7, 2015, the fund performed a reverse share split. The reverse split reduced the number of shares owned and proportionately increased the price per share. The increased price per share is reflected in the “Daily Change” value as of 8/7/2015. For a helpful Q&A on the reverse share split, click here. Morningstar Hypo Tool

Daily Statistics

All data as of 09/29/2016

NAV $6.99 One Day Return 0.14%
Daily Change $0.01 Daily YTD Return 11.63%
Click here to view Historical Prices
  • Average Annual Returns
  • Cumulative Returns

All data as of

  • Daily
  • Month End
  • Quarter End

All data as of

  • Daily
  • Month End
  • Quarter End

Calendar Year Returns %

All data as of

Growth of $10,000 (hypothetical)

Morningstar and Lipper

  • Morningstar Ratings
  • Lipper Rankings

Portfolio Composition

All data as of unless otherwise stated

Maturity %

0-1 yrs 28.51
1-3 yrs 42.63
3-5 yrs 16.43
5-10 yrs 11.87
10-20 yrs -1.06
20+ yrs 1.63
Effective Maturity (yrs) 3.39

Duration in Years

Effective Duration (yrs) 2.94

Sector Allocation
Duration in Years

Inflation Linked Bonds
United States 3.87
United Kingdom 0.43
Europe 0.12
Canada 0.00
Other 0.18
Other Short Duration Instruments -0.03
Non Inflation Linked Bonds
US Government Related -0.83
Mortgage 0.10
Invest. Grade Credit 0.09
High Yield Credit 0.00
Non-U.S. Developed -0.80
Emerging Markets 0.04
EM Short Duration Instruments -0.02
Municipal 0.00
Other 0.00
Net Other Short Duration Instruments -0.22

Risk Characteristics
(Trailing 3 Years)

Standard Deviation 15.22
Sharpe Ratio -0.92
Information Ratio 0.04
Tracking Error 2.92

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