Press Release

PIMCO Launches PIMCO Capital Securities and Financials Fund

 

New fund invests in high yielding bank subordinated debt and equity-like securities

   

NEWPORT BEACH, CALIFORNIA (May 7, 2015) - PIMCO, a leading global investment management firm, has launched the PIMCO Capital Securities and Financials Fund, which aims to deliver attractive yields relative to traditional fixed income by investing in capital securities, including subordinated bonds, preferred shares and contingent capital instruments issued by financial institutions globally. Philippe Bodereau, Managing Director and Portfolio Manager based in London, and Yuri Garbuzov, Executive Vice President and Portfolio Manager based in Newport Beach, will manage the fund.

The fund follows the successful launch of a similar European fund that has raised over $5 billion. The strategy focuses on bottom-up security selection across banks’ capital structures and around the globe, helped by a dedicated team of 8 bank and financial credit research analysts and 10 specialist portfolio managers. The strategy also relies on PIMCO’s time-tested macro analysis to identify regional investment opportunities and manage downside risks.

PIMCO believes there are compelling opportunities in bank securities that sit lower in the capital structure due to the multi-year deleveraging in the U.S. and European banking sectors and the stricter capital requirements imposed by regulators on large global financial institutions.

“The banking sector’s strong and improving credit fundamentals and the compelling absolute and relative valuations of bank hybrids should result in attractive long-term total returns for our clients,” says Bodereau. “This strategy offers potentially higher risk-adjusted returns than equities and high-yield debt by capitalizing on opportunities created by relative value dislocations in the U.S. and in Europe.”

Institutional shares of the PIMCO Capital Securities and Financials Fund trade under the ticker symbol PFINX. Additional shares include “P” shares (PFPNX), “A” shares (PFANX), “D” shares (PFDNX) and “C” shares (PFCNX).

Media Contacts

Michael Reid
Global Head of Corporate Communications – New York
212.739.3253
michael.reid@pimco.com

Agnes Crane
U.S. Corporate Communications – New York
212.739.4212
agnes.crane@pimco.com

Jennifer Spivey
U.S. Corporate Communications – Newport Beach
949.720.6374
jennifer.spivey@pimco.com

Jochen Haegele
EMEA Corporate Communications – Munich
+49.89.26209.6237
jochen.haegele@pimco.com

Laura Batty
U.K. and EMEA Corporate Communications – London
+44.20.3640.1414
laura.batty@pimco.com

Millie Dravers
Australia Corporate Communications – Sydney
+612.9290.9577
millie.dravers@pimco.com

Donna Chan
Asia ex-Japan Corporate Communications – Hong Kong
+852 3650 7752
donna.chan@pimco.com

Disclosures

About PIMCO
PIMCO is a leading global investment management firm, with offices in 12 countries throughout North America, Europe and Asia. Founded in 1971, PIMCO offers a wide range of innovative solutions to help millions of investors worldwide meet their needs. Our goal is to provide attractive returns while maintaining a strong culture of risk management and long-term discipline. PIMCO is owned by Allianz S.E., a leading global diversified financial services provider.

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 or by visiting www.pimco.com/investments. 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. Bank loans are often less liquid than other types of debt instruments and general market and financial conditions may affect the prepayment of bank loans, as such the prepayments cannot be predicted with accuracy. There is no assurance that the liquidation of any collateral from a secured bank loan would satisfy the borrower's obligation, or that such collateral could be liquidated. 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. Investments in illiquid securities may reduce the returns of a portfolio because it may be not be able to sell the securities at an advantageous time or price. 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. 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 and YOUR GLOBAL INVESTMENT AUTHORITY are trademarks or registered trademarks of Allianz Asset Management of America L.P. and Pacific Investment Management Company LLC, respectively, in the United States and throughout the world. PIMCO Investments LLC, distributor, 1633 Broadway, New York, NY, 10019 is a company of PIMCO. ©2015 PIMCO.