PIMCO Mortgage Opportunities Fund INSTL (PMZIX)

PIMCO
Objective
The Fund seeks maximum long-term return, consistent with prudent investment management.
Primary Portfolio
Mortgage-related assets, including Agency residential and commercial mortgage-backed securities (MBS) and private label residential and commercial MBS.
At a Glance
SymbolPMZIX
CUSIP Number 72201U638
Total Fund Assets (in millions) $1,303.0
Share Class Inception Date 10/22/2012
Dividend Frequency Accrues Daily; Distributes Monthly
Maximum Sales Charge -
Net Operating Expenses 0.6 %

Daily Price

NAV Day Return
$11.16 -$0.01 -0.08%
YTD Return
1.73%
As of 05/05/15

Historical Prices

04/30/15

$11.17

05/01/15

$11.17

05/04/15

$11.17

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
An unconstrained approach to the mortgage market

This fund seeks to generate consistent, absolute returns across full market cycles by investing in a broad array of mortgage-related securities, though it may not fully participate in strong (positive) market rallies.


Why Invest In This Fund
Flexibility to pursue the most attractive opportunities

Untethered to a traditional benchmark, the fund has the ability to tactically allocate across various subsectors of the global mortgage-backed securities (MBS) market, including U.S. and European, residential and commercial and Agency and private label MBS.


Targeting long-term absolute returns

Seeking attractive absolute returns across full market cycles, the fund’s flexibility and wide duration band (-1 to 8 years) allows for active management of its exposure to a variety of risk factors, including interest-rate risk and credit risk.


PIMCO’s deep resources

PIMCO has been investing in the mortgage-backed securities market for over thirty years and is one of the largest, most sophisticated investors in this space. With one of the deepest mortgage investment teams in the industry, PIMCO’s sector-specific specialists cover the entire spectrum of mortgage-related assets.


Our Expertise

Each of the fund’s three portfolio managers brings unique skills and expertise to the portfolio. Daniel Hyman is an executive vice president concentrating on Agency mortgage-backed securities; Alfred Murata is a manager director who serves on our mortgage credit team; and Joshua Anderson is a managing director focusing on global structured credit investments.

Managers

Joshua Anderson, CFA

Mr. Anderson is a managing director and portfolio manager in the London office, where he leads the European structured product group. He also oversees global structured credit investments. Previously, he was a structured product portfolio manager in the Newport Beach office. Prior to joining PIMCO in 2003, he was an analyst at Merrill Lynch covering both the residential ABS and collateralized debt obligation sectors and was ranked as one of the top analysts by Institutional Investor magazine. He was previously a portfolio manager at Merrill Lynch Investment Managers. He has 20 years of investment experience and holds an MBA from the State University of New York, Buffalo.

Alfred T. Murata

Mr. Murata is a managing director and portfolio manager in the Newport Beach office on the mortgage credit team. Morningstar named him Fixed-Income Fund Manager of the Year (U.S.) for 2013. Prior to joining PIMCO in 2001, he researched and implemented exotic equity and interest rate derivatives at Nikko Financial Technologies. He has 14 years of investment experience and holds a Ph.D. in engineering-economic systems and operations research from Stanford University. He also earned a J.D. from Stanford Law School and is a member of the State Bar of California.

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. 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.

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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