Just as PIMCO’s own bond managers leverage the Secular Outlook to guide their investment decisions, so too can investors take advantage of PIMCO’s long-range forecast with products that may address the investment conclusions and implications of the firm’s 2008 Secular Forum.
Focusing on high-quality, intermediate-term bonds, the Fund can be an important core bond holding.
The Secular Outlook is integral to PIMCO Total Return Fund’s investment process and creates the framework for all of its investment decisions. This has helped the Fund’s manager, Bill Gross, and PIMCO earn Morningstar’s Fixed-Income Manager of the Year award an unprecedented three times.
Invests in a focused group of PIMCO mutual funds, providing access to a variety of investments across both traditional and alternative asset classes. The Fund offers potential inflation protection and diversification by emphasizing strategies that focus on long-term “real” or inflation-adjusted returns. Given PIMCO’s secular concerns about continuing inflationary pressure, exposure to inflation-hedging assets could be a sound strategy.
Offers access to a rapidly growing segment of the emerging market bond sector—developing countries that issue debt in their own currency. With PIMCO anticipating developing economies to continue as the world’s main engine of growth—and with their currencies likely to carry the bulk of appreciation versus the U.S. dollar—now may be a good time to consider this sector.
Investors should consider the investment objectives, risks, charges and expenses of any mutual fund carefully before investing. This and other information is contained in the fund´s prospectus, which may be obtained by contacting your financial advisor. Click here for a complete list of the PIMCO Funds prospectuses. Please read the prospectus carefully before you invest or send money.
Investment Products: NOT FDIC INSURED / MAY LOSE VALUE / NOT BANK GUARANTEED
Past performance is no guarantee of future results. The Funds will normally invest their assets in a diversified portfolio of fixed-income securities. The Funds may invest in non- U.S. securities and may invest a portion of their assets in high-yield securities. Investing in non-U.S. securities may entail risk due to foreign economic and political developments; this risk may be enhanced when investing in emerging markets. The value of some mortgage-related or asset-backed securities may be particularly sensitive to interest rate changes, and there is no assurance that private insurers of the underlying mortgages or assets will meet their obligations. High-yield bonds typically have a lower credit rating than other bonds. Lower rated bonds generally involve a greater risk to principal than higher rated bonds. When interest rates rise, the value of fixed-income securities generally declines. Some of the Funds may invest in inflation-indexed bonds issued by the U.S. Government, known as TIPS, which are fixed-income securities whose principal value is periodically adjusted according to the rate of inflation, which will affect the interest payable on them. Repayment upon maturity of the adjusted principal value is guaranteed by the U.S. Government. Neither the current market value of inflation-indexed bonds nor the share value of a fund that invests in them is guaranteed, and either or both may fluctuate. The Funds may use derivative instruments for hedging purposes or as part of their investment strategy. Use of these instruments may involve certain costs and risks such as liquidity risk, interest rate risk, market risk, credit risk, management risk and the risk that a fund could not close out a position when it would be most advantageous to do so. Portfolios investing in derivatives could lose more than the principal amount invested in those instruments. Although the All Asset Fund normally invests in a number of different underlying funds, it will be particularly sensitive to the risks associated with the individual fund(s) and any investments in which that Fund concentrates. The cost of investing in the All Asset Fund will generally be higher than the cost of investing in a mutual fund that invests directly in individual stocks and bonds.
A note about risk: Commodities are volatile investments and should form only a small part of a diversified portfolio. Commodities may not be suitable for all investors. The use of derivative instruments may add additional risk. Consult your financial advisor to help you determine whether an investment in commodities is right for you.
Forecasting future economic and political trends is inherently imprecise because the behavior of markets is unpredictable. While at certain times the Secular Forum has anticipated certain trends, at other times it may not have done so.
The Morningstar Fixed-Income Fund Manager of the Year award winners are chosen based upon Morningstar's own research and in-depth evaluation by its senior editorial staff. Morningstar named Bill Gross and the PIMCO Bond Team as Manager of the Year for fixed-income for 1998, 2000 and 2007.
This is not an offer or solicitation for the purchase or sale of any financial instrument. It is presented only to provide information on investment strategies and opportunities. The material contains the current opinions of PIMCO and non-PIMCO personnel, which are subject to change without notice. Statements concerning financial market trends are based on current market conditions, which will fluctuate. References to specific securities and issuers are for illustrative purposes only and are not intended to be, and should not be interpreted as, recommendations to purchase or sell such securities.
The PIMCO Funds and Allianz Funds are distributed by Allianz Global Investors Distributors LLC, 1345 Avenue of the Americas, New York, NY 10105-4800. www.allianzinvestors.com © 2009
CLICK TO VIEW OUR BUSINESS CONTINUITY PLAN, PROXY POLICIES & VOTING RECORDS, OR OUR PRIVACY POLICY