PIMCO CommoditiesPLUS Strategy Fund INSTL (PCLIX)

PIMCO
Objective
The Fund seeks total return which exceeds that of the Credit Suisse Commodity Benchmark consistent with prudent investment management.
Primary Portfolio
Commodity-linked derivative instruments backed by an actively managed, low volatility portfolio of fixed income instruments.
At a Glance
SymbolPCLIX
CUSIP Number 72201P175
Total Fund Assets (in millions) $4,085.5
Share Class Inception Date 5/28/2010
Dividend Frequency Quarterly
Maximum Sales Charge -
Net Operating Expenses 0.74 %

Daily Price

NAV Day Return
$7.80 $0.02 0.26%
YTD Return
1.56%
As of 04/24/15

Historical Prices

04/21/15

$7.64

04/22/15

$7.65

04/23/15

$7.78

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
Diversification and inflation-hedging potential

Harnessing two of PIMCO’s strengths, the fund offers investors broad participation in commodity-linked investing, with enhanced return potential from actively managed bonds.


Why Invest In This Fund
Enhanced index strategy

The fund captures the performance potential of commodities through derivative exposure to the Credit Suisse Commodity Benchmark, a broad-based index. The fund collateralizes its commodity exposure with a portfolio of high quality, short term bonds that serve as an additional source of return.


Inflation-hedging, diversification potential

Commodities have had a positive correlation with inflation, typically appreciating when inflation spikes; they also have had low or negative correlation with stocks and bonds, which can enhance portfolio diversification. It should be noted, however, that commodities may be volatile and that diversification doesn’t protect against loss.


Combined expertise

The fund maximizes PIMCO’s active management experience in commodity-linked portfolios and fixed income collateral. The management team looks to add value by avoiding the inefficiencies of passive commodity indexing and seeking out additional outperformance opportunities within commodity markets, while enhancing the return potential of the collateral portfolio.


Our Expertise

The strategy is managed by veteran real return investors Nicholas Johnson and Greg Sharenow. A leading global commodities manager, PIMCO launched its first enhanced index strategy two decades ago and its first commodity-linked strategy in 2002.

Managers

Greg E. Sharenow

Mr. Sharenow is an executive vice president in the Newport Beach office and a portfolio manager focusing on real assets. Prior to joining PIMCO in 2011, he was an energy trader at Hess Energy Trading, Goldman Sachs, and DE Shaw. Mr. Sharenow was previously senior energy economist at Goldman Sachs. He has 15 years of investment and financial services experience and holds bachelor's degrees in mathematical methods in the social sciences and in economics from Northwestern 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.

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.

Greg E. Sharenow began managing the fund on 2 January 2015.

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. The fund will seek exposure to commodities through commodity-linked derivatives and through the PIMCO Cayman Commodity Fund III Ltd., a wholly-owned subsidiary of the Fund organized under the laws of the Cayman Islands (the “Subsidiary”). The Subsidiary is advised by PIMCO, and has the same investment objective as the Fund. The Subsidiary (unlike the Fund) may invest without limitation in commodity-linked swap agreements and other commodity-linked derivative instruments. 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. 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. Equities may decline in value due to both real and perceived general market, economic, and industry conditions. Derivatives and commodity-linked 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. Commodity-linked derivative instruments may involve additional costs and risks such as changes in commodity index volatility or factors affecting a particular industry or commodity, such as drought, floods, weather, livestock disease, embargoes, tariffs and international economic, political and regulatory developments. 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.

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.


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