Allianz Global Investors
Our Managers Commentary News & Media
Mutual Funds
Fund Family Overview
Price & Performance
Literature & Forms
Services
Prospectuses & Shareholder Reports
Related Products
> Closed-End Funds
> 529 Plans

PIMCO FUNDS PROFILE 
All data as of 06.30.10, unless otherwise indicated. 
PIMCO Short-Term Fund D (PSHDX)
 Print
About this Fund Performance Portfolio Review & Outlook Literature
Change Class  
Fund Overview
Summary

Potential to outperform cash investments with moderate volatility

By focusing on ultra-short, high-quality fixed-income securities, PIMCO Short-Term Fund offers higher income potential than traditional cash investments—with modest additional risk. The Fund also has a history of lower volatility, making it a sensible long-term capital preservation vehicle.
Why Invest in this Fund

Potential to provide a steady source of current income

Short-term bonds can function as an attractive option for investors who are looking for a higher level of income than savings accounts and CDs typically provide. However, unlike those investments shortterm bond funds do not seek to maintain stable values and offer no guarantees.

 

Lower potential volatility than longer-term bond funds

The Fund generally offers lower price volatility than longer-term bond funds. In fact, the Fund’s net asset value (NAV) has fluctuated moderately since its 1987 inception. This low volatility is the result of the Fund’s overall ultra-short duration (The shorter the duration, the more resistant a bond or bond fund is to interest rate fluctuations.)

 

Expert management

The portfolio manager for PIMCO Short-Term Fund is Paul McCulley, a PIMCO managing director with more than 25 years of investment experience and responsibility for supervising all of the firm’s short-term investment strategies.
Investment Process

The top-down investment process begins with our annual secular forum where we develop a three- to five-year outlook for the global economy and interest rates. This helps set the basic portfolio parameters, including duration, yield-curve positioning, sector weightings, credit quality breakdown and, finally, individual issue selection. The Fund employs many value-added strategies geared to enhance yield. First, when appropriate, duration extension allows the manager to capture the term premium offered by a positively sloped yield curve. Second, the Fund may take small steps away from AAA credit quality to add value. Third, our ability to invest in an expanded set of instruments offers opportunities. Fourth, careful management of transactional liquidity allows the manager to take advantage of slightly larger bid-ask spreads. We may at times use futures to replicate bond positions.** This strategy can offer the opportunity to outperform physical bond securities due to the relative pricing of the futures contracts and PIMCO's active management of the collateral backing the futures.
At A Glance
Symbol Lookup
 
Symbol
CUSIP
D Shares
PSHDX
693391690
Objective
Seeks maximum current income, consistent with preservation of capital and daily liquidity

Primary Portfolio
Short-term, investment grade bonds (average duration is less than or equal to 1 yr)

Total Fund Assets (in millions)
$11,402.1

Inception Date
Oct 7, 1987

Dividend Frequency
Monthly

Net Expense Ratio
-

Gross Expense Ratio
0.800%

> Share Class Pricing

Manager
Paul McCulley


 Paul McCulley is Managing Director and is responsible for supervising all short-term investment strategies at PIMCO.

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.

 

For PIMCO's current AUM, please visit the Our Managers section.

 

The credit quality of the investment in the portfolio does not apply to the stability or safety of the fund. Duration is a measure of the fund's price sensitivity expressed in years. Savings accounts and CDs are guaranteed as to repayment of principal and interest by an agency of the US government. 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.

 

However, the investment return and principal value of bonds and bond funds will fluctuate. Money market funds are not insured or guaranteed by the FDIC or any other government agency. Although money market funds seek to preserve the value of your investment at $1.00 per share, it is possible to lose money by investing in them.

 

The Fund may invest up to 5% in foreign securities, 10% in high-yield securities, and in mortgage related securities. Investing in foreign securities may entail risk due to foreign economic and political developments; this risk may be enhanced when investing in emerging markets. 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. This Fund 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 in those instruments.

 

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.
CLICK TO VIEW OUR BUSINESS CONTINUITY PLAN, PROXY POLICIES & VOTING RECORDS, OR OUR PRIVACY POLICY.
About Us         Careers         Contact Us         Help

Advisor Login