PIMCO Mortgage-Backed Securities Fund INSTL (PTRIX)

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) $190.3
Share Class Inception Date 07/31/1997
Dividend Frequency Accrues Daily; Distributes Monthly
Maximum Sales Charge -
Net Operating Expenses 0.5 %

Daily Price

NAV Day Return
$10.45 $0.02 0.22%
YTD Return
0.53%
As of 07/02/15

Historical Prices

06/29/15

$10.46

06/30/15

$10.45

07/01/15

$10.43

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.
Fund Overview
A high-quality core bond investment

PIMCO Mortgage-Backed Securities Fund offers attractive, actively managed risk-adjusted return potential from mortgage-backed securities (MBS) – one of the largest and most liquid fixed income sectors.


Why Invest In This Fund
A solid core holding

With its high quality, intermediate-term portfolio, this fund can be a fundamental part of most any bond allocation. Because MBS have a low correlation (tendency to move in lockstep) with stocks, they may also provide important diversification benefits. Diversification does not protect against loss.


Attractive return potential vs. Treasuries

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


30 years of mortgage experience

The fund benefits from PIMCO’s long experience in the mortgage sector and proven investment process. Its managers seek to add value through numerous strategies, including relative value trading and interest rate strategies and the use of proprietary analytics to uncover undervalued securities and manage risk.


Our Expertise

The fund is managed by Michael Cudzil and Daniel Hyman, mortgage specialists who both have over a decade of experience in the sector. The team draws on PIMCO’s robust mortgage research capabilities, which help identify security-specific risks as well as the effect of mortgage performance on other sectors and the broader economy.

Managers

Michael Cudzil

Mr. Cudzil is an executive vice president and co-head of the agency mortgage portfolio management team in the Newport Beach office. He manages agency mortgage-backed securities strategies and total return bond portfolios. Mr. Cudzil is the current chair for the Americas Portfolio Committee as well as a member of the New Product Review Committee. 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 17 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 and co-head of the agency mortgage portfolio management team in the Newport Beach office. He is the lead portfolio manager on PIMCO's Ginnie Mae and Mortgage Opportunities Strategies. Prior to joining PIMCO in 2008, Mr. Hyman was a vice president at Credit Suisse where he traded agency pass-throughs. He has 11 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 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. 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.

Past performance is not a guarantee or a reliable indicator of future results. Morningstar Rating as of 31 May 2015 for the Institutional Class Shares; other classes may have different performance characteristics. Fund ratings are out of 5 Stars: Overall 5 Stars (152 funds rated); 3 Yrs. 5 Stars (152 funds rated); 5 Yrs. 4 Stars (133 funds rated); 10 Yrs. 5 Stars (91 funds rated). 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.


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