PIMCO TRENDS Managed Futures Strategy Fund INSTL (PQTIX)


PIMCO
Objective
Seeks positive, risk-adjusted returns consistent with prudent investment management
Primary Portfolio
Futures contracts and other derivatives providing exposure to pricing trends in the global financial and commodity markets
At a Glance
SymbolPQTIX
CUSIP Number 72201U455
Total Fund Assets (in millions) $474.0
Share Class Inception Date 12/31/2013
Dividend Frequency Quarterly
Maximum Sales Charge -
Net Operating Expenses 1.15 %

Daily Price

NAV Day Return
$10.43 -$0.1 -0.95%
YTD Return
-4.49%
As of 05/26/15

Historical Prices

05/20/15

$10.59

05/21/15

$10.61

05/22/15

$10.53

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
Capturing momentum for both return and diversification potential

The fund seeks to capture momentum across major asset classes, including equities, interest rates, commodities and currencies. It follows a disciplined trading approach informed by PIMCO’s proprietary quantitative analytics and market knowledge and draws on our global trading platform and active fixed income management to add additional sources of value.


Why Invest In This Fund
A liquid alternative investment strategy

An allocation to PIMCO’s liquid alternative strategies offers investors potential for attractive returns that may exhibit a low-to-negative correlation to traditional asset classes such as core equities and bonds, and may be beneficial as part of a diversified portfolio.


Diversification and left-tail management

Historically, managed futures have generated attractive positive returns while displaying a low-to-negative correlation with risk assets, and have had their largest returns during equity market selloffs. The fund seeks to efficiently capture these returns in a liquid, accessible format, which may enhance portfolio diversification and help mitigate portfolio risk.


Performance potential through changing markets

Because the fund can take long and short positions across a wide variety of asset classes, it has the potential to generate positive returns in any market environment. In addition to the fund’s sophisticated quantitative approach, investment decisions are influenced by PIMCO’s rigorous investment process with additional return potential coming from the actively managed collateral portfolio.


Our Expertise

The experienced management team is led by Vineer Bhansali – managing director and head of PIMCO’s quantitative investment portfolios and includes Matthew Dorsten, senior vice president, who focuses on quantitative strategies and passive replication and Graham Rennison, senior vice president, who focuses on multi-asset class systematic strategies.

Managers

Vineer Bhansali

Dr. Bhansali is a managing director and portfolio manager in the Newport Beach office. He currently oversees PIMCO's quantitative investment portfolios. From 2000, he also headed PIMCO's firmwide analytics department. Prior to joining PIMCO in 2000, he was a proprietary trader in the fixed income trading group at Credit Suisse First Boston and in the fixed income arbitrage group at Salomon Brothers in New York. Previously, he was head of the exotic and hybrid options trading desk at Citibank in New York. He is the author of numerous scientific and financial papers and of the books "Bond Portfolio Investing and Risk Management," "Pricing and Managing Exotic and Hybrid Options," "Fixed Income Finance: A Quantitative Approach" and the most recent book, "Tail Risk Hedging". He has 24 years of investment experience and holds a Ph.D. in theoretical particle physics from Harvard University. He has a master's degree in physics and an undergraduate degree from the California Institute of Technology.

Matthew P. Dorsten

Mr. Dorsten is a senior vice president in the quantitative portfolio group in the Newport Beach office, focusing on quantitative strategy and passive replication. He was previously a member of the financial engineering group working on mortgage-backed securities and event-linked bonds. Prior to joining PIMCO in 2006, he received his Ph.D. in theoretical particle physics from the California Institute of Technology, where he was a National Science Foundation Graduate Research Fellow. He has seven years of investment experience and holds undergraduate degrees in mathematics and physics from Ohio State University.

Graham A. Rennison

Mr. Rennison is a senior vice president in the quantitative portfolio management group in the Newport Beach office, focusing on multi-asset-class systematic strategies. He was previously a member of the client analytics group, advising clients on strategic asset allocation. Prior to joining PIMCO in 2011, Mr. Rennison was a director and head of systematic strategies research at Barclays Capital in New York. Prior to this, he spent three years at Barclays Capital in London and five years at Lehman Brothers in New York and London, researching and publishing widely on quantitative strategies in the credit markets. In 2008, Mr. Rennison was named one of Institutional Investor magazine's "20 Rising Stars of Fixed Income". He has 12 years of investment experience and holds master's and undergraduate degrees in mathematics from Cambridge University, England.

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:  Managed futures contain heightened risk, including wide price fluctuations and may not be suitable for all investors. 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. 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. Commodities contain heightened risk, including market, political, regulatory and natural conditions, and may not be suitable for all investors. 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. The strategy may utilize quantitative models as part of implementing its investment strategies. The models evaluate securities or securities markets based on certain assumptions concerning the interplay of market factors. Models used may not adequately take into account certain factors, may not perform as intended, and may result in a decline in the value of your investment, which could be substantial. 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 value of most bond strategies and fixed income securities are impacted by changes in interest rates. Bonds and bond strategies with longer durations tend to be more sensitive and more volatile than securities with shorter durations; bond prices generally fall as interest rates rise.

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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