PIMCO Mortgage-Backed Securities Fund INSTL (PTRIX)

All data as of 05/31/13, unless otherwise indicated.
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)
At a Glance
SymbolPTRIX
CUSIP Number 693391500
Total Fund Assets (in millions) $466.2
Share Class Inception Date 07/31/1997
Dividend Frequency Accrues Daily; Distributes Monthly
Maximum Sales Charge -
Net Operating Expenses 0.5 %
Total Annual Operating Expenses 0.5 %

Daily Price
NAV Day Return
$10.44 $0.00 0.01%
YTD Return
-0.74%
As of 06/18/13

Historical Prices

06/13/13

$10.44

06/14/13

$10.45

06/17/13

$10.44
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.
Fund Overview
Focused on the high quality and total return potential of the MBS market

Mortgage-backed securities (MBS) are one of the largest and most liquid sectors of the global bond market. PIMCO Mortgage-Backed Securities Fund offers attractive, actively managed risk-adjusted return potential from this high quality universe, investing at least 80% of its assets in Fannie Mae, Freddie Mac and Ginnie Mae securities.


Why Invest In This Fund
A core investment

With its high average credit quality and intermediate duration, this fund can make a solid addition to nearly any investor’s bond portfolio. Because mortgage-backed securities have a low correlation (the tendency to move in lockstep) to equities, they can also provide important diversification benefits to investors. Of course, diversification does not guarantee a profit or protect against losses.


Attractive return potential with Treasury-like risk

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


Over 30 years of mortgage experience

Building on PIMCO’s long experience in the mortgage sector and time-tested investment process, the fund manager seeks to add value by employing relative value trading and interest rate strategies, exploiting various areas of the mortgage market to add diversification, and by utilizing advanced proprietary analytics to uncover undervalued securities and manage portfolio risk.

View All Fund Literature

Managers

Michael Cudzil

Mr. Cudzil is an executive vice president, portfolio manager and mortgage specialist in the Newport Beach office. Prior to joining PIMCO in 2012, he worked as a managing director and head of pass-through trading at Nomura. Mr. Cudzil previously held similar roles at Bank of America and Lehman Brothers, as well as a senior trading position at Salomon Brothers. He has 15 years of investment experience and holds a bachelor's degree in political science from the University of Pennsylvania.

Daniel H. Hyman

Mr. Hyman is an executive vice president in the Newport Beach office and a portfolio manager focusing on mortgage-backed securities and derivatives. Prior to joining PIMCO in 2008, Mr. Hyman was a vice president at Credit Suisse where he traded Agency pass-throughs. He has 10 years of investment experience and holds an undergraduate degree from Lehigh University.

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:
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. 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.

Annual Report of Proxy Voting Records, Form N-PX »
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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