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PIMCO FUNDS PROFILE 
All data as of 10.31.09, unless otherwise indicated. 
PIMCO All Asset All Authority Fund A (PAUAX)
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About this Fund Performance Portfolio Review & Outlook Literature
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Fund Overview
Highlights
  • A portfolio that invests in a focused group of PIMCO mutual funds, rather than in individual securities, providing access to a variety of investments across both traditional and alternative asset classes.
  • The Fund's broad opportunity set includes the potential to short the U.S. stock market, as well as long positions in international equity markets. The Fund may also use leverage to potentially enhance returns.
  • Access to the investment expertise of PIMCO and Rob Arnott, Chairman of Research Affiliates L.L.C. and an expert on tactical asset allocation.
  • Focus on long-term growth of purchasing power, seeking to outperform it's secondary benchmark of CPI + 6.5%.
Portfolio Construction

PIMCO All Asset All Authority Fund's portfolio invests in an expanded group of PIMCO mutual funds, rather than in individual securities, providing access to a variety of investments across both traditional and alternative asset classes. These underlying funds cover the full spectrum of traditional sectors of the stock and bond markets, as well as other asset classes, such as Treasury Inflation Protected Securities (TIPS), commodities, and real estate. Using a dynamic asset allocation strategy, as well as the potential use of leverage to attempt to enhance returns, the Fund’s manager seeks to identify those asset classes and sectors that offer the most value at a particular point in the economic/market cycle. In keeping with PIMCO's dedication to risk management, the Fund contains internal guidelines to optimize risk controls, including:

  • No more than 50% invested in any single underlying PIMCO Fund.
  • No more than 20% invested in PIMCO StocksPLUS Short Strategy Fund.
  • No more than 50% invested in PIMCO Funds that track U.S. equity indexes.
  • No more than 331/3 % invested in PIMCO Funds that track non-U.S. equity indexes.
  • No more than 662/3 % invested in U.S. and non-U.S. equity funds combined.
  • No more than 75% invested in PIMCO Real Return Strategy Funds.

 

 

Why Invest in this Fund?

  • The Fund emphasizes strategies that focus on long-term "real" or inflation-adjusted returns.
  • PIMCO believes that we have entered into a period where moderate returns from both traditional stocks and bonds are likely.
  • The Fund's strategy hinges on the fact that in any given market environment, there are undervalued asset classes/sectors that are poised to outperform.
  • Active allocation between asset classes/sectors is an important strategy in an environment where no single area is likely to continually dominate returns.

 

 

The Fund's Role in an Investor's Portfolio

  • Complement to core stock and bond holdings.
  • Employing tactical asset allocation.
  • Can offer some protection against inflation given its secondary benchmark of CPI plus 6.5% over a strategic time frame.
  • Exposure to non-traditional asset classes, such as TIPS, commodities, and emerging market debt
  • Cost-effective, liquid "alternative" investment.
Investment Process

In determining the Fund’s allocations to the underlying PIMCO Funds, the sub-advisor relies on a number of essential building blocks, including: the long-term return potential of each asset class/sector, equity and bond risk premiums, potential value-added of the underlying PIMCO Funds, and proprietary active asset allocation models. In addition, key personnel from PIMCO and Research Affiliates regularly engage in substantive dialogue, formulating strategy that is then incorporated into the final allocation decisions. The above asset allocation criteria are monitored on an ongoing basis and, when strategically appropriate, the allocations are readjusted accordingly.
At A Glance
Symbol Lookup
 
Symbol
CUSIP
A Shares
PAUAX
72200Q232
Objective
Seeks maximum real return, consistent with preservation of real capital and prudent investment management

Primary Portfolio
Underlying PIMCO Funds

Total Fund Assets (in millions)
$2,638.9

Inception Date
Oct 31, 2003

Dividend Frequency
Quarterly

Maximum Sales Charge
3.75%

Net Expense Ratio
2.140%

Gross Expense Ratio
-

> Share Class Pricing

Manager
Robert D. Arnott

Robert Arnott established Research Affiliates, L.L.C in 2002. He joined forces with PIMCO as a subadvisor to offer a global asset allocation product to make active use of liquid alternative markets.

Management Firm
Pacific Investment Management Company LLC (PIMCO)

Newport Beach, California

Led by Founder and Co-Chief Investment Officer Bill Gross, PIMCO is widely recognized as one of the premier bond managers in the world. PIMCO applies this expertise to a range of core and specialized investment portfolios.



> Management Commentary

Investors should consider the investment objectives, risks, charges and expenses of this Fund carefully before investing. This and other information is contained in the Fund´s prospectus and summary prospectus, if available, which may be obtained by contacting your financial advisor, or by calling 888-877-4626. Click here for the Fund´s prospectus or summary prospectus. Please read them carefully before you invest or send money.

Past performance is no guarantee of future results. This commentary 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 the author, 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.

 

Standard deviation is an absolute measure of volatility measuring dispersion about an average which, for a mutual fund, depicts how widely the returns varied over a certain period of time. The Consumer Price Index (CPI) is an unmanaged index representing the rate of inflation in U.S. consumer prices as determined by the U.S. Department of Labor Statistics. There can be no guarantee that the CPI or other indexes will reflect the exact level of inflation at any given time. Diversification does not ensure against loss. Alpha measures a portfolio's risk-adjusted performance, which is the difference between a portfolio's actual and expected returns, given the level of market risk as measured by beta. In an environment where interest rates may trend upward, rising rates will negatively impact most bond funds, and fixed income securities held by a fund are likely to decrease in value. Bond funds and individual bonds with a longer duration (a measure of the expected life of a security) tend to be more sensitive to changes in interest rates, usually making them more volatile than securities with shorter durations.

 

The cost of investing in the All Asset All Authority Fund will generally be higher than the cost of investing in a fund that invests directly in individual stocks and bonds. The Fund's net asset value (NAV) will fluctuate in response to changes in the NAV of the underlying PIMCO Funds in which it invests. Although the Fund normally invests in a number of different underlying Funds, it will be particularly sensitive to the risks associated with that particular Fund and any investments in which that Fund concentrates. The Fund's allocation among the underlying Funds will vary, and the investment may be subject to various risks at different times and to different degrees.

Investments in non-U.S. securities may entail greater risk due to non-U.S. economic and political developments, which may be enhanced when investing in emerging markets. The underlying funds may use derivative instruments for hedging purposes or as part of its 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. 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. Investments in mortgage-related securities may be sensitive to interest rates. When interest rates rise the value of the security generally declines. There is no assurance that private guarantors or insurers will meet their obligations. Investments in commodity-linked derivative instruments may subject the Fund to greater volatility than investments in traditional securities. The value of commodity-linked derivative instruments may be affected by changes in overall market movements, changes in interest rates, and other factors such as weather, disease, embargoes, and international economic and political developments. Investments in real estate-linked derivative instruments may subject the Fund to greater volatility and economic, regulatory, and liquidity risk.

 

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 , 1-888-877-4626.

Investment Products: NOT FDIC INSURED | MAY LOSE VALUE | NOT BANK GUARANTEED

 

Click here to view the Fund's current sector weightings.

All holdings are subject to change.

 

Click here to view the Fund's current standardized performance.
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