PIMCO StocksPLUS Short Fund INSTL (PSTIX)

Prior to 15 April 2015, the PIMCO StocksPLUS Short Fund was named PIMCO StocksPLUS AR Short Strategy Fund.

PIMCO
Objective
Seeks total return through the implementation of short investment positions on the S&P 500
Primary Portfolio
Short S&P 500 Index derivatives backed by an actively managed portfolio of fixed income securities with an absolute return orientation
At a Glance
SymbolPSTIX
CUSIP Number 693390486
Total Fund Assets (in millions) $3,435.9
Share Class Inception Date 07/23/2003
Dividend Frequency Quarterly
Maximum Sales Charge -
Net Operating Expenses 0.64 %

Daily Price

NAV Day Return
$2.29 $0.000.00%
YTD Return
-3.51%
As of 05/28/15

Historical Prices

05/22/15

$2.29

05/26/15

$2.31

05/27/15

$2.29

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
Efficient inverse exposure to the S&P 500 Index

The Lipper-Award-winning strategy provides passive short exposure to the S&P 500 Index plus an additional, complementary source of alpha potential.


Why Invest In This Fund
An efficient approach to gain short exposure

For investors seeking to hedge against a potential downturn in stocks, the fund invests in short index positions to gain daily inverse exposure to the S&P 500 Index. The fund may benefit when the index is declining, but may not perform as well when rising. The fund does not replicate the inverse performance of the S&P 500 Index. See "A word about risk."


Increased return potential

As the fund gains daily inverse to the S&P 500 Index using equity-linked instruments at a money market-based cost, the goal of the absolute return bond alpha strategy is to outperform this cost thereby allowing the fund to provide the returns of the S&P 500 "PLUS" additional alpha and diversification potential. Absolute return portfolios may not necessarily fully participate in positive market rallies or negative market declines


Award winning performance

PIMCO has been recognized multiple times by Lipper as Best Group Large Equity for the consistently strong risk-adjusted performance of our StocksPLUS strategies.


Our Expertise

PIMCO helped pioneer the innovative StocksPLUS strategy in 1986 – the same award-winning approach used across our “PLUS” portfolios. Our “PLUS” strategies capitalize on the depth and breadth of PIMCO’s global resources and investment expertise. Today, we manage “PLUS” portfolios across a range of objectives.

Managers

Mohsen Fahmi

Mr. Fahmi is a managing director and generalist portfolio manager in the Newport Beach office, focusing on global fixed income assets. Prior to joining PIMCO in 2014, he was with Moore Capital Management, most recently as a senior portfolio manager and previously as chief operating officer. In London earlier in his career, he was co-head of bond and currency proprietary trading at Tokai Bank Europe, head of leveraged investment at Salomon Brothers and executive director of proprietary trading at Goldman Sachs. Prior to this, he was a proprietary trader for J.P. Morgan in both New York and London, and he also spent seven years as an investment officer at the World Bank in Washington, DC. He has 30 years of investment experience and holds an MBA from Stanford University. He received a master's degree in civil engineering from the Ohio State University and an undergraduate degree from Ain Shams University, Cairo.

Sudi N. Mariappa

Mr. Mariappa is a managing director and generalist portfolio manager in the Newport Beach office. He rejoined PIMCO in 2014 from GLG, a London-based hedge fund, where he was a managing director, developing and managing fixed income funds. Previously at PIMCO, Mr. Mariappa was a managing director and head of global portfolio management. He also served as a senior advisor to PIMCO’s portfolio management group from 2009-2011. Prior to joining PIMCO in 2000, he was a managing director for Merrill Lynch in Tokyo, overseeing Japanese government bond and swap derivative trading. He has 27 years of investment experience and holds an MBA, as well as a bachelor's degree in chemical engineering, from Cornell 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: The Fund attempts to gain exposures that may vary inversely with the performance of the Fund’s benchmark (the S&P 500 Index) on a daily basis, such that the Fund will generally benefit when the benchmark is declining in value and will generally not perform well when the benchmark is rising, a result that is different from traditional mutual funds. It is possible for the Fund to experience a negative return when the benchmark is declining and vice versa. However, the Fund is not designed or expected to produce returns which replicate the inverse of the performance of the benchmark, and the degree of variation could be substantial, particularly over longer periods. This is due to factors relating to inverse correlation and compounding risk, including the effects of compounding on the performance of the Fund’s derivatives short positions for periods greater than one day, as well as the results of PIMCO’s active management of the Fund (including income and gains or losses from fixed income instruments and variations in the Fund’s level of short exposure), the impact of Fund fees and expenses, and the fact that derivatives positions in general may not correlate exactly with the benchmark. In managing the strategy’s investments in Fixed Income Instruments, PIMCO utilizes an absolute return approach; the absolute return approach does not apply to the equity index replicating component of the strategy. 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. 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. The Fund is non-diversified, which means that it may invest its assets in a smaller number of issuers than a diversified fund.

Entering into short sales includes the potential for loss of more money than the actual cost of the investment, and the risk that the third party to the short sale may fail to honor its contract terms, causing a loss to the portfolio. 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.

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.

PIMCO