PIMCO Real Return Fund A (PRTNX)

All data as of 04/30/13, unless otherwise indicated.
PIMCO
Objective
Seeks maximum real return, consistent with preservation of real capital and prudent investment management
Primary Portfolio
Inflation-indexed bonds
At a Glance
SymbolPRTNX
CUSIP Number 693391120
Total Fund Assets (in millions) $24,441.7
Share Class Inception Date 01/29/1997
Dividend Frequency Accrues Daily; Distributes Monthly
Maximum Sales Charge 3.75%
Net Operating Expenses 0.85 %
Total Annual Operating Expenses 0.87 %

Daily Price
NAV Day Return
$12.04 -$0.01 -0.08%
YTD Return
-1.59%
As of 05/20/13

Historical Prices

05/15/13

$12.09

05/16/13

$12.11

05/17/13

$12.05
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 high quality tool to help investors protect long-term purchasing power

Inflation often appears quickly and unexpectedly, making it important for long-term investors to be prepared in all market environments. PIMCO Real Return Fund aims to help investors protect their purchasing power against the effects of inflation by seeking real (inflation-adjusted) returns primarily from Treasury Inflation-Protected Securities (TIPS).


Why Invest In This Fund
A high-quality inflation hedge

Because inflation can seriously erode purchasing power over time, inflation-hedging assets such as TIPS should have a place in an investment plan. Active management has helped the fund deliver short- and long-term returns solidly ahead of inflation, while the portfolio’s high quality orientation has provided a smoother ride than other real return assets such as commodities and real estate.


Potential diversification benefits

While traditional asset classes, such as stocks and bonds, usually move inversely to inflation, TIPS tend to move in the same direction as inflation. Investing in assets with low correlations, i.e., influenced by different factors, can enhance a portfolio’s diversification, potentially lowering overall volatility. Like bond investments in general, TIPS can decline in value if interest rates rise, and may be particularly sensitive if real interest rates rise rapidly.


PIMCO’s real return management expertise

The fund was launched the same day as the first TIPS auction and was the first to focus primarily on TIPS. Today, PIMCO remains one of the largest U.S. investors in TIPS and other inflation-linked assets. By drawing on the expertise of our global real return team, the fund is able to take advantage of our macro inflation outlook and bottom-up research capabilities.

View All Fund Literature

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:
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. Treasury Inflation-Protected Securities (TIPS) are ILBs issued by the U.S. Government. 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. 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. The Fund is non-diversified, which means that it may concentrate its assets in a smaller number of issuers than a diversified fund. The value of most bond funds and fixed income securities are impacted by changes in interest rates. Bonds and bond funds with longer durations tend to be more sensitive and more volatile than securities with shorter durations; bond prices generally fall as interest rates rise. The fund’s yield quotation includes an adjustment to the principal value of the TIPS securities to reflect changes in the government’s official inflation rate, if any; changes in the government’s official inflation rate can cause the fund’s yield to vary substantially from one month to the next. At times, including during periods of deflation, the SEC yield calculation may result in a negative number. An exceptionally high SEC yield may be attributable to a rise in the inflation rate, which might not be repeated.

In an environment where interest rates may trend upward, rising rates will negatively impact most bond funds, and fixed income securities held by a fund are likely to decrease in value. Bond funds and individual bonds with a longer duration (a measure of the expected life of a security) tend to be more sensitive to changes in interest rates, usually making them more volatile than securities with shorter durations.

The credit quality of the investment in the portfolio does not apply to the stability or safety of the fund. Duration is a measure of the fund price's sensitivity expressed in years. Treasury Inflation Protected Securities (TIPS) are guaranteed by the US government; shares of the Fund, however, are not. Treasury securities, if held to maturity, offer a fixed rate of return and fixed principal value. The Consumer Price Index (CPI) is an unmanaged index representing the rate of inflation in U.S. consumer prices as determined by the U.S. Department of Labor Statistics. There can be no guarantee that the CPI or other indexes will reflect the exact level of inflation at any given time.

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.


CLICK TO VIEW OUR BUSINESS CONTINUITY PLAN, PROXY VOTING POLICIES AND PROCEDURES, OR OUR PRIVACY POLICY.

PIMCO