PIMCO Fundamental Advantage Absolute Return Strategy Fund A (PTFAX)

All data as of 04/30/13, unless otherwise indicated.
PIMCO

PIMCO
Prior to March 22, 2013, the PIMCO Fundamental Advantage Absolute Return Strategy Fund was named PIMCO Fundamental Advantage Total Return Strategy Fund.

Objective
Seeks maximum total return, consistent with prudent investment management
Primary Portfolio
Derivatives providing long exposure to Enhanced RAFI 1000 hedged by short exposure to the S&P 500 Index, backed by an actively managed portfolio of fixed income securities with an absolute return orientation
At a Glance
SymbolPTFAX
CUSIP Number 72201M164
Total Fund Assets (in millions) $3,412.0
Share Class Inception Date 07/31/2008
Dividend Frequency Quarterly
Maximum Sales Charge 3.75%
Net Operating Expenses 1.29 %
Total Annual Operating Expenses 1.31 %

Daily Price
NAV Day Return
$4.43 $0.000.00%
YTD Return
3.67%
As of 05/17/13

Historical Prices

05/14/13

$4.43

05/15/13

$4.43

05/16/13

$4.43
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 $100,000 3.75%
$100,000 but under $250,000 3.25%
$250,000 but under $500,000 2.25%
$500,000 but under $1 million 1.75%
$1 million but under $2,000,001 0.00%*
$2,000,001+ 0.00%*
Fund Overview
A unique strategy for consistent return potential through changing market conditions

Striving to provide diversification with some cushioning during stock bear markets, PIMCO Fundamental Advantage Absolute Return Strategy Fund seeks positive performance in a variety of market environments with moderate volatility.


Why Invest In This Fund
An equity market-neutral strategy

PIMCO Fundamental Advantage Absolute Return Strategy Fund uses a market neutral approach that seeks incremental return while minimizing stock market sensitivity. Potential outperformance is captured through a long position in derivatives linked to the Enhanced Research Affiliates Fundamental 1000 Index (Enhanced RAFI®) and a passive short position in derivatives linked to the S&P 500 Index.


An actively managed fixed income portfolio

The remainder of the fund’s assets are invested in an actively managed fixed income portfolio with an absolute return orientation. Absolute return portfolios may not necessarily fully participate in strong, positive, market rallies. These two independent sources of return may provide some cushioning against the volatility of a stock-based portfolio.


Time-tested management experience

PIMCO has pioneered a number of market innovations, including fundamentals-based equity investing and enhanced index strategies. The fund benefits from our expertise in these, as well as from our time tested, top-down/bottom-up investment process.

View All Fund Literature

Managers

Bill Gross, CFA

Mr. Gross is a founder, managing director and co-CIO of PIMCO based in the Newport Beach office. He has been with PIMCO since he co-founded the firm in 1971 and oversees the management of more than $1.9 trillion of securities. He is the author of numerous articles on the bond market, as well as the book, "Everything You’ve Heard About Investing is Wrong," published in 1997. Among the awards he has received, Morningstar named Mr. Gross and his investment team Fixed Income Manager of the Decade for 2000-2009 and Fixed Income Manager of the Year for 1998, 2000, and 2007 (the first three-time recipient). He received the Bond Market Association’s Distinguished Service Award in 2000 and became the first portfolio manager inducted into the Fixed Income Analysts Society's hall of fame in 1996. Mr. Gross is a seven-time Barron's Roundtable panelist (2005-2011), appearing in the annual issue featuring the industry's top investment experts, and he received the Money Management Lifetime Achievement Award from Institutional Investor magazine in 2011. In a survey conducted by Pensions and Investments magazine in 1993, he was recognized by his peers as the most influential authority on the bond market in the U.S. He has 43 years of investment experience and holds an MBA from the Anderson School of Management at the University of California, Los Angeles. He received his undergraduate degree from Duke University.

*A CDSC may apply for shares redeemed within 18 months of purchase.
 
A word about risk: In managing the strategy’s investments in Fixed Income Instruments, PIMCO utilizes an absolute return approach; the absolute return approach does not apply to the equity index replicating component of the strategy. 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. 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. 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. 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. Entering into short sales includes the potential for loss of more money than the actual cost of the investment, and the risk that the third party to the short sale may fail to honor its contract terms, causing a loss to the portfolio. 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.

The Morningstar Fund Manager of the Decade award is based on risk-adjusted results over the past 10 years (2000-2009), and other considerations, including the strength of the manager, strategy, and stewardship. The Morningstar Fixed Income Fund Manager of the Year award (1998, 2000, 2007) is based on the strength of the manager, performance, strategy, and firm's stewardship. The Bond Market Associate Distinguished Service (2000) award recognizes the accomplishments of individuals who have had a significant impact on the bond market through their service as public officials as or as members of the private sector. The Money Management Lifetime Achievement award (2011) is based on market intelligence, performance data and risk management information received from the industry following a public call for nominations. The winner was selected by the editors of the magazine based on the results of a survey of U.S. institutional investors.

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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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