PIMCO Convertible Fund INSTL (PFCIX)

PIMCO
Objective
The Fund seeks maximum total return, consistent with prudent investment management.
Primary Portfolio
Convertible Securities
At a Glance
SymbolPFCIX
CUSIP Number 693391831
Total Fund Assets (in millions) $214.3
Share Class Inception Date 03/31/1999
Dividend Frequency Quarterly
Maximum Sales Charge -
Net Operating Expenses 0.65 %

Daily Price

NAV Day Return
$11.92 -$0.15 -1.24%
YTD Return
1.19%
As of 04/17/15

Historical Prices

04/14/15

$12.05

04/15/15

$12.09

04/16/15

$12.07

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
Actively managed exposure to a unique asset class

Convertible bonds may provide investors with a risk profile similar to corporate bonds, with the potential for stock-like returns. The fund seeks attractive total return from a broad portfolio of higher-quality convertibles.


Why Invest In This Fund
Unique characteristics

Like fixed income securities, convertibles have a maturity date, principal repayment at maturity, a fixed coupon payment and credit rating. They also have the option to convert into the stock of the underlying company. The stock-like traits provide upside potential, while the bond "floor" helps limit downside risk.


Diversification benefits

Convertibles tend to have low correlations to both stocks and bonds, which can help improve overall portfolio diversification. (Correlation is the tendency for asset classes to move in lockstep.) Of course, diversification does not assure a profit or protect against loss, but it can facilitate better risk-adjusted returns.


Expert convertibles management

PIMCO has been investing in convertibles since 1989. In managing these securities, we draw on our extensive company and credit research capabilities, as well as our unmatched resources dedicated to analyzing and modeling interest rate risk, volatility and embedded options.


Our Expertise

The fund benefits from PIMCO’s investment process, which combines our global top-down macro views with proprietary bottom-up analysis of credit quality and market factors by our global credit analysts. PIMCO’s investment team has the experience, depth and diversity to actively manage a broad and diversified opportunity set.

Managers

Jonathan L. Horne

Mr. Horne is a managing director and portfolio manager in the Newport Beach office, focusing on credit absolute return investing and relative value across corporate debt markets. He previously served on the interest rate derivatives desk, where he specialized in interest rate swaps and swaptions. Prior to joining PIMCO in 2006, he worked for a multi-strategy hedge fund controlled by the Bass family of Ft. Worth, Texas, where he focused on risk management and options trading. He has 11 years of investment experience and holds an MBA from the Wharton School of the University of Pennsylvania and undergraduate degrees in economics and philosophy from Vanderbilt 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 investment professional 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. 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. Investing in securities of smaller companies tends to be more volatile and less liquid than securities of larger companies. 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. The Fund may have to convert securities before it would otherwise choose to, which may have an adverse effect on the Fund’s ability to achieve its investment objective. Diversification does not ensure against loss.

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.® 2015. 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.


Please note that this fund will be liquidated on or about 1 May 2015.

PIMCO