PIMCO RealEstateRealReturn Strategy Fund INSTL (PRRSX)

All data as of 04/30/13, unless otherwise indicated.
PIMCO
Objective
Seeks maximum real return consistent with prudent investment management
Primary Portfolio
Real estate-linked derivatives backed by a portfolio of inflation indexed and other fixed income securities
At a Glance
SymbolPRRSX
CUSIP Number 72200Q257
Total Fund Assets (in millions) $2,314.3
Share Class Inception Date 10/30/2003
Dividend Frequency Quarterly
Maximum Sales Charge -
Net Operating Expenses 0.74 %
Total Annual Operating Expenses 0.78 %

Daily Price
NAV Day Return
$5.36 $0.000.00%
YTD Return
9.97%
As of 05/24/13

Historical Prices

05/21/13

$5.67

05/22/13

$5.45

05/23/13

$5.36
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
Capture the diversification and inflation-hedging potential of real estate

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


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

Combining the benefits of REITs with PIMCO’s experience as an active manager of fixed income collateral, the fund seeks to outperform the Dow Jones U.S. Select REIT Total Return Index by actively managing an underlying TIPS collateral portfolio. TIPS may decline in value if interest rates rise, and may be particularly sensitive if real interest rates rise rapidly.


Diversification potential of real estate

Real estate is explicitly linked to inflation through rising residential and commercial property prices. Yet it has a low correlation, or tendency to move in lockstep, with stock and bond returns. This gives real estate the potential to enhance returns and lower risk in a diversified investment portfolio. Of course, diversification cannot guarantee a profit or protect against loss.


PIMCO’s real return investment experience

PIMCO is currently one of the largest investors in inflation-related assets like inflation-linked bonds, commodities and real estate. In addition, we have extensive experience managing both index-linked securities and the collateral backing this exposure, having first employed our enhanced-index investment approach in 1986.

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.

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.

Double Real refers to a strategy that looks to provide exposure to two asset classes (real estate and TIPS) that have historically had a positive correlation to inflation.

A word about risk:
REITs are subject to risk, such as poor performance by the manager, adverse changes to tax laws or failure to qualify for tax-free pass-through of income. Inflationlinked 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. 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. 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.

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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