PIMCO CommodityRealReturn Strategy Fund A (PCRAX)

All data as of 05/31/13, unless otherwise indicated.
PIMCO
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
At a Glance
SymbolPCRAX
CUSIP Number 722005584
Total Fund Assets (in millions) $18,472.3
Share Class Inception Date 11/29/2002
Dividend Frequency Quarterly
Maximum Sales Charge 5.50%
Net Operating Expenses 1.19 %
Total Annual Operating Expenses 1.35 %

Daily Price
NAV Day Return
$5.92 $0.01 0.17%
YTD Return
-9.16%
As of 06/18/13

Historical Prices

06/13/13

$5.89

06/14/13

$5.91

06/17/13

$5.91
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. Click Performance tab for performance current to the most recent month-end.
Breakpoints
Sales Range (USD)Fee %
Under $50,000 5.50%
$50,000 but under $100,000 4.50%
$100,000 but under $250,000 3.50%
$250,000 but under $500,000 2.50%
$500,000 but under $1 million 2.00%
$1 million but under $2,000,001 0.00%*
$2,000,001 but under $5,000,001 0.00%*
$5,000,001+ 0.00%*
Fund Overview
Capturing the diversification and inflation-hedging potential of commodities

The fund seeks to capture the performance potential of a commodities index backed with a portfolio of Treasury Inflation-Protected Securities (TIPS), offering broad participation in the return of commodities while harnessing PIMCO’s innovative Double RealTM approach.


Why Invest In This Fund
A Double RealTM inflation-hedging strategy

Combining the benefits of commodities with the experience of PIMCO as an active manager of commodities and fixed income collateral, the fund seeks to outperform the Dow Jones-UBS Commodity Total Return Index by actively managing both the commodities exposure and the underlying TIPS collateral portfolio. TIPS may decline in value if interest rates rise, and may be particularly sensitive if real interest rates rise rapidly.


A carefully chosen index

The fund offers exposure to the performance potential of the Dow Jones-UBS Commodity Total Return Index, which provides broad diversification across commodities. The index also offers an annual rebalancing feature, which relies on clearly defined rules to ensure that no single commodity or sector dominates the index, which may help enhance returns and reduce volatility.


The diversification potential of commodities

Because commodities are “real” assets like oil, metal or grain, they are sensitive to different economic factors and tend to perform differently, as evidenced by their low or negative correlation (tendency to move in tandem) with stocks and bonds. Adding commodities to a balanced portfolio may enhance overall diversification. Of course, diversification does not guarantee a profit or protect against loss.

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Managers

Mihir P. Worah

Mr. Worah is a managing director in the Newport Beach office, a portfolio manager, and head of the real return portfolio management team. He was previously a member of the analytics team and worked on real and nominal term structure modeling and options pricing. Prior to joining PIMCO in 2001, he was a postdoctoral research associate at the University of California, Berkeley, and the Stanford Linear Accelerator Center, where he built models to explain the difference between matter and anti-matter. In 2012 he co-authored “Intelligent Commodity Indexing,” published by McGraw-Hill. He has 12 years of investment experience and holds a Ph.D. in theoretical physics from the University of Chicago.

*A CDSC may apply for shares redeemed within 18 months of purchase.
 
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 financial advisor 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:
Commodities contain heightened risk including market, political, regulatory, and natural conditions, and may not be suitable for all investors. The fund will seek exposure to commodities through commodity-linked derivatives and through the PIMCO Cayman Commodity Fund I Ltd., a wholly-owned subsidiary of the Fund organized under the laws of the Cayman Islands (the "Subsidiary"). The Subsidiary is advised by PIMCO, and has the same investment objective as the Fund. The Subsidiary (unlike the Fund) may invest without limitation in commodity-linked swap agreements and other commodity-linked derivative instruments. Investing in the bond market is subject to certain risks including market, interest-rate, issuer, credit, and inflation risk; investments may be worth more or less than the original cost when redeemed. 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. 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. Certain U.S. Government securities are backed by the full faith of the government, obligations of U.S. Government agencies and authorities are supported by varying degrees but are generally not backed by the full faith of the U.S. Government; portfolios that invest in such securities are not guaranteed and will fluctuate in value. 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. 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. Equities may decline in value due to both real and perceived general market, economic, and industry conditions. 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. The Fund is non-diversified, which means that it may invest its assets in a smaller number of issuers than a diversified fund.

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Quarterly Schedule of Portfolio Holdings, Form N-Q »

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.® 2011. 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.


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