High Yield Fund

PHIYX

Updated Jul 27, 2015

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  • DAILY NAV
    $9.00
  • DAILY YTD RETURN
    1.60%
  • CLASS
    Fixed Income
  • FUND INCEPTION DATE
    12/15/1992
  • TOTAL NET ASSETS
    $9,933 MM
    (as of 06/30/2015)
  • TOTAL NET ASSETS
    $9,933 MM
    (as of 06/30/2015)
  • TICKER
    PHIYX
  • CLASS
    Fixed Income

Objective

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

Primary Portfolio

High yield bonds (2-6 yr. avg. duration)

Overview

Fund Overview

A risk-focused approach to high yield investing

By concentrating on higher credit qualities within the non-investment-grade bond universe and avoiding the riskier, more speculative lower tiers, PIMCO High Yield Fund is designed to provide an attractive risk/reward tradeoff for high yield investors.

Why Invest In This Fund

Enhanced income potential

High yield bonds are issued by corporations that lack the long-term earnings or corporate growth to earn an investment grade rating from credit rating agencies. To compensate for this additional risk, high yield bonds offer significantly higher income potential than other types of fixed income securities.

Attractive risk/reward tradeoff

Credit qualities and their contributing underlying factors can vary dramatically within the non-investment-grade bond market. Focusing on the middle and upper echelons of credit ratings, PIMCO High Yield Fund takes a more conservative approach to high yield investing.

Fundamentals remain strong

Default rates for high yield bonds have fallen sharply since 2009, remaining well below their long-term historical average. This, along with improving balance sheets and higher recovery rates when defaults do occur, should continue to bode well for corporate fundamentals.

Our Expertise

PIMCO High Yield Fund is managed by Andrew Jessop, a high yield expert with 20+ years of professional investing experience. Mr. Jessop and his team are supported by PIMCO’s time-tested investment process, global macroeconomic forecasts, proprietary risk-management techniques, and detailed analysis of each security represented in the fund.

PRIMARY BENCHMARK

BofA Merrill Lynch U.S. High Yield, BB-B Rated, Constrained Index

PRIMARY BENCHMARK DESCRIPTION

BofA Merrill Lynch U.S. High Yield, BB-B Rated, Constrained Index tracks the performance of BB-B Rated U.S. Dollar-denominated corporate bonds publicly issued in the U.S. domestic market. Qualifying bonds are capitalization-weighted provided the total allocation to an individual issuer (defined by Bloomberg tickers) does not exceed 2%. Issuers that exceed the limit are reduced to 2% and the face value of each of their bonds is adjusted on a pro-rata basis. Similarly, the face value of bonds of all other issuers that fall below the 2% cap are increased on a pro-rata basis. The index launched on 12/31/1996. The index performance shown prior to that date is calculated using the BofA Merrill Lynch U.S. High Yield, Cash Pay BB-B Rated Index, which was the Fund’s primary benchmark index from the Fund’s inception until 12/31/1996. It is not possible to invest directly in an unmanaged index.

DIVIDEND FREQUENCY

Monthly with Daily Accrual

SHARE CLASS INCEPTION

12/15/1992

CUSIP

693390841

Managers

Andrew R. Jessop

Portfolio Manager, High Yield

View Profile

Yields & Distributions

Historical Prices & Distributions

Distribution Yield (At NAV)1 as of 6/30/2015 5.69%
30 - Day SEC Yield2 as of 6/30/2015 4.81%
30 - Day SEC Yield2 as of 7/27/2015 -
Latest Dividend Distribution ($ Share)3 as of 6/30/2015 $0.042512466
Dividend Distribution (YTD)4 as of 6/30/2015 $0.252026246
Yields & Distributions Footnotes & Disclosures

disclosures

1The distribution yield for monthly paying Funds is calculated by annualizing actual dividends distributed for the monthly period ended on the date shown and dividing by the net asset value on the last business day for the same period. The distribution yield for quarterly paying Funds is calculated by taking the average of the prior four quarterly distribution yields. The quarterly distribution yields are calculated by annualizing actual dividends distributed for the quarterly period ended on the most recent quarterly distribution date and dividing by the net asset value for the same date. The distribution yield for annual paying Funds is calculated by taking the annual distribution divided by the Fund’s net asset value on ex-date. The yield is annualized if the Fund incepted less than a year ago. The yield does not include long- or short-term capital gains distributions.
2The 30-Day SEC yield is an annualized yield based on the most recent 30 day period.
3Data does not include special cash dividends.
4Data is based on distributions since the most recent calendar year end and does not include special cash dividends.

Fees & Expenses

Total Annual Operating Expenses 0.55%

Prices & Performance

Daily Statistics

All data as of 7/27/2015

NAV $9.00 One Day Return -0.43%
Daily Change $-0.04 Daily YTD Return 1.60%
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
Performance quoted represents past performance and is not a guarantee or a reliable indicator of future results. Investment return and the principal value of an investment will fluctuate. Shares may be worth more or less than original cost when redeemed. Current performance may be lower or higher than average annual returns shown. Performance quoted does not reflect any sales charges, if applicable, and performance would be lower if it did.

Calendar Year Returns %

All data as of

Growth of $10,000 (hypothetical)

Since inception 12/15/1992 to 6/30/2015 = $56,554

Morningstar and Lipper

  • Morningstar Ratings
  • Lipper Rankings
Prices & Performance Footnotes & Disclosures

disclosures

Performance figures presented reflect the total return performance after fees and reflect changes in share price and reinvestment of dividend and capital gain distributions on the payable date. All periods longer than one year are annualized.
Total return performance does not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. The minimum initial investment for Institutional class shares is $1 million; however, it may be modified for certain financial intermediaries who submit trades on behalf of eligible investors.

The index launched on 12/31/1996. The index performance shown prior to that date is calculated using the BofA Merrill Lunch U.S. High Yield, Cash Pay BB-B Rated Index, which was the Fund’s primary benchmark index from 12/31/1992 until 12/31/1996.
Daily YTD return is from the most recent calendar year end.
Growth of $10,000 is calculated at NAV and assumes that all dividend and capital gain distributions were reinvested. It does not take into account sales charges or the effect of taxes. Results are not indicative of future performance.
Past performance is not a guarantee or a reliable indicator of future results. For funds with at least a 3-yr history, Morningstar calculates a Morningstar Rating based on a risk-adjusted return measure that accounts for variation in a fund’s monthly performance (including the effects of sales charges, loads and redemption fees) with an emphasis on downward variations and consistent performance. The top 10% of funds in each category receive 5 stars, the next 22.5% receive 4 stars, the next 35% receive 3 stars, the next 22.5% receive 2 stars and the bottom 10% receive 1 star. The Overall Morningstar Rating is a weighted average of the performance figures for its 3-, 5- and 10-yr (if applicable) Morningstar Rating metrics. Morningstar, Inc.® 2015. All rights reserved. The information contained herein; (1) is proprietary to Morningstar and/or its affiliates; (2) may not be copied or distributed; (3) is not warranted to be accurate, complete or timely. Neither Morningstar nor its content providers are responsible for any damages or losses arising from any use of this information. Past performance is no guarantee of future results. Hollow stars represent a class of shares with inception dates that is different than the inception date of the fund. For the period prior to the inception date of these shares, performance information is based on the performance of the fund’s Institutional Class shares, adjusted to reflect the actual distribution and/or service (12b-1) fees and other expenses paid by the newer share class.
The Lipper Category returns and rankings are calculated by Lipper Inc., a Reuters Company, which is a nationally recognized organization that compares the performance of mutual funds with similar investment objectives. The Category returns represent the average performance of included funds, while rankings compare an individual fund's returns to those of the other funds in its category. Both are based on total return performance, with capital gains and dividends reinvested, with annual operating expenses deducted, but without including front- or back-end sales charges. Rankings begin with the actual share class inception. Rankings are relative to a peer group and do not necessarily mean that the fund had high total returns.

Portfolio Composition

All data as of unless otherwise stated

Maturity %

0-1 yrs 7.20
1-3 yrs 10.77
3-5 yrs 20.10
5-10 yrs 59.14
10-20 yrs 1.83
20+ yrs 0.97
Effective Maturity (yrs) 5.91

Duration in Years

Effective Duration (yrs) 4.07

Risk Characteristics
(Trailing 3 Years)

Standard Deviation 4.07
Sharpe Ratio 1.50
Information Ratio -0.81
Tracking Error5 0.57

Top Industry Sectors Market Value %

Healthcare 8.80
Wireless 6.43
Media Cable 6.40
Pharmaceuticals 5.05
Independent E&P 4.38
Technology 4.27
Banks 4.25
Chemicals 3.68
Electric Utility 3.65
Pipelines 3.38
Portfolio Composition Footnotes & Disclosures

disclosures

5Tracking error, a measure of risk, is defined as the standard deviation of the portfolio's excess return vs. the benchmark expressed in percent.
Portfolio information in the charts is based on the fund's net assets. These percentages may differ from those used for the fund's compliance calculations, including the fund's prospectus, regulatory, and other investment limitations and policies, which may be based on total assets of the fund or other measurements, may include or exclude various categories of investments from those covered in the portfolio allocation categories shown in this report, and may be based on different classifications and measurements of the fund’s investments and other criteria.
References to specific sectors, securities or issuers are for illustrative purposes only. All holdings are subject to change daily. All share classes have the same portfolio but different expenses.
Duration is a measure of a portfolio’s price sensitivity expressed in years. Effective duration is the duration for a bond with an embedded option when the value is calculated to include the expected change in cash flow caused by the option as interest rates change.

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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.  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:

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. 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. Equities may decline in value due to both real and perceived general market, economic, and industry conditions. 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.
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. No part of this material may be reproduced in any form, or referred to in any other publication, without express written permission.
PIMCO Investments LLC, distributor, 1633 Broadway, New York, NY 10019, is a company of PIMCO.