Mortgage-Backed Securities Fund

PTRIX

Updated Jul 27, 2015

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  • DAILY NAV
    $10.50
  • DAILY YTD RETURN
    1.13%
  • CLASS
    Fixed Income
  • FUND INCEPTION DATE
    07/31/1997
  • TOTAL NET ASSETS
    $190 MM
    (as of 06/30/2015)
  • TOTAL NET ASSETS
    $190 MM
    (as of 06/30/2015)
  • TICKER
    PTRIX
  • CLASS
    Fixed Income

Objective

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

Primary Portfolio

Intermediate-term mortgage-related securities (1-7 yr. avg. duration)

Overview

Fund Overview

A high-quality core bond investment

PIMCO Mortgage-Backed Securities Fund offers attractive, actively managed risk-adjusted return potential from mortgage-backed securities (MBS) – one of the largest and most liquid fixed income sectors.

Why Invest In This Fund

A solid core holding

With its high quality, intermediate-term portfolio, this fund can be a fundamental part of most any bond allocation. Because MBS have a low correlation (tendency to move in lockstep) with stocks, they may also provide important diversification benefits. Diversification does not protect against loss.

Attractive return potential vs. Treasuries

Agency MBS offer high credit quality and similar levels of interest rate risk to U.S. Treasuries and U.S. agency debentures. At the same time, they typically yield more than Treasuries and are prone to mispricing, which can create return-enhancing opportunities.

30 years of mortgage experience

The fund benefits from PIMCO’s long experience in the mortgage sector and proven investment process. Its managers seek to add value through numerous strategies, including relative value trading and interest rate strategies and the use of proprietary analytics to uncover undervalued securities and manage risk.

Our Expertise

The fund is managed by Michael Cudzil and Daniel Hyman, mortgage specialists who both have over a decade of experience in the sector. The team draws on PIMCO’s robust mortgage research capabilities, which help identify security-specific risks as well as the effect of mortgage performance on other sectors and the broader economy.

PRIMARY BENCHMARK

Barclays U.S. MBS Fixed Rate Index

PRIMARY BENCHMARK DESCRIPTION

Barclays U.S. MBS Fixed Rate Index covers the mortgage-backed pass-through securities of Ginnie Mae (GNMA), Fannie Mae (FNMA), and Freddie Mac (FHLMC). The MBS Index is formed by grouping the universe of over 600,000 individual fixed rate MBS pools into approximately 3,500 generic aggregates. It is not possible to invest directly in an unmanaged index.

DIVIDEND FREQUENCY

Monthly with Daily Accrual

SHARE CLASS INCEPTION

07/31/1997

CUSIP

693391500

Managers

Michael Cudzil

Co-Head of Agency Mortgage Portfolio Management

View Profile

Daniel H. Hyman

Co-Head of Agency Portfolio Management

View Profile

Yields & Distributions

Historical Prices & Distributions

Distribution Yield (At NAV)1 as of 6/30/2015 2.55%
30 - Day SEC Yield2 as of 6/30/2015 1.69%
30 - Day SEC Yield2 as of 7/27/2015 -
Latest Dividend Distribution ($ Share)3 as of 6/30/2015 $0.021872058
Dividend Distribution (YTD)4 as of 6/30/2015 $0.112237653
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 0.50%

Prices & Performance

Daily Statistics

All data as of 7/27/2015

NAV $10.50 One Day Return 0.10%
Daily Change $0.01 Daily YTD Return 1.13%
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 7/31/1997 to 6/30/2015 = $28,712

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.
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 6.21
1-3 yrs 37.02
3-5 yrs 24.29
5-10 yrs 32.95
10-20 yrs -1.93
20+ yrs 1.46
Effective Maturity (yrs) 4.12

Duration in Years

Effective Duration (yrs) 3.19

Risk Characteristics
(Trailing 3 Years)

Standard Deviation 2.36
Sharpe Ratio 1.07
Information Ratio 0.87
Tracking Error5 0.73

Sector Allocation
Market Value %

GNMA MBS 28.95
FNMA MBS 35.26
FHLMC MBS 35.82
Non-Agency MBS 5.23
Home Equity ABS 0.52
CMBS 0.77
Other MBS -0.24
US Government Related6 -11.26
Other7 1.58
Net Other Short Duration Instruments8 3.39
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.
6May include nominal and inflation-protected Treasuries, Treasury futures and options, agencies, FDIC-guaranteed and government-guaranteed corporate securities, and interest rate swaps.
7May include municipals, convertibles, preferreds, and yankee bonds.
8Net Other Short Duration Instruments includes securities and other instruments (except instruments tied to emerging markets by country of risk) with an effective duration less than one year and rated investment grade or higher or, if unrated, determined by PIMCO to be of comparable quality, commingled liquidity funds, uninvested cash, interest receivables, net unsettled trades, broker money, short duration derivatives (for example Eurodollar futures) and derivatives offsets. With respect to certain categories of short duration securities, the Adviser reserves the discretion to require a minimum credit rating higher than investment grade for inclusion in this category. Derivatives Offsets includes offsets associated with investments in futures, swaps and other derivatives. Such offsets may be taken at the notional value of the derivative position which in certain instances may exceed the actual amount owed on such positions.
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:

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.