PIMCO RealEstateRealReturn Strategy Fund D (PETDX)

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
SymbolPETDX
CUSIP Number 72200Q265
Total Fund Assets (in millions) $2,042.9
Share Class Inception Date 10/30/2003
Dividend Frequency Quarterly
Maximum Sales Charge -
Net Operating Expenses 1.14 %

Daily Price

NAV Day Return
$3.46 $0.02 0.58%
YTD Return
-1.90%
As of 07/02/15

Historical Prices

06/29/15

$3.38

06/30/15

$3.38

07/01/15

$3.44

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
Capture the inflation-hedging potential of real estate

Harnessing PIMCO’s innovative Double Real® approach, 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).


Why Invest In This Fund
A Double Real® inflation hedge

The fund seeks to outperform the Dow Jones U.S. Select REIT Total Return Index by actively managing the 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

Real estate has a low correlation, or tendency not 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.


Combined expertise

The fund combines the benefits of real estate as an asset class with the industry leading experience of PIMCO as an active manager of real estate-linked derivatives and TIPS collateral.


Our Expertise

The strategy is managed by veteran real return investors Mihir Worah, CIO Real Return and Asset Allocation and head of the real return and multi-asset portfolio management teams, Nicholas Johnson and Jeremie Banet. PIMCO, a leading global manager in inflation-related assets, launched its first enhanced index strategy more than two decades ago and its first real estate-linked strategy in 2002.

Managers

Mihir P. Worah

Mr. Worah is CIO Asset Allocation and Real Return and a managing director in the Newport Beach office. He is a member of the Investment Committee and the Executive Committee, and oversees portfolio management for the U.S. He is a generalist portfolio manager who manages a variety of fixed income, commodity and multi-asset portfolios. 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 14 years of investment experience and holds a Ph.D. in theoretical physics from the University of Chicago

Jeremie Banet

Mr. Banet is an executive vice president in the Newport Beach office and a portfolio manager on the real return team. Prior to joining PIMCO in 2011, he traded inflation-linked investments at Nomura Fixed Income. Prior to that, he was with BNP Paribas, most recently as head of U.S. inflation trading. He has 14 years of investment and financial services experience and holds a master's degree in applied economics and an undergraduate degree from Paris IX Dauphine University.

Nicholas J. Johnson

Mr. Johnson is an executive vice president in the Newport Beach office and a portfolio manager focusing on commodities and multi-asset portfolios. He joined PIMCO in 2004 and managed the portfolio analyst group prior to joining the portfolio management team in 2007. He specializes in structural risk premiums as well as overall portfolio construction. In 2012 he co-authored “Intelligent Commodity Indexing,” published by McGraw-Hill. Prior to joining PIMCO in 2004, he worked at NASA's Jet Propulsion Laboratory, developing Mars missions and new methods of autonomous navigation. He has 10 years of investment experience and holds a master’s degree in financial mathematics from the University of Chicago and an undergraduate degree from California Polytechnic State University.

Jeremie Banet and Nicholas J. Johnson began managing the fund on 2 January 2015.

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.

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:
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. 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. Sovereign securities are generally backed by the issuing government, obligations of U.S. Government agencies and authorities are supported by varying degrees but are generally not backed by the full faith of the U.S. Government; portfolios that invest in such securities are not guaranteed and will fluctuate in value. 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. 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. 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. 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. 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.

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.