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PIMCO FUNDS PROFILE 
All data as of 02.28.10, unless otherwise indicated. 
PIMCO Short-Term Fund Inst (PTSHX)
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About this Fund Performance Portfolio Review & Outlook Literature
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Fund Overview
Highlights
  • Invests in ultra-short, high quality fixed-income securities, which offer a steady income stream, usually at rates higher than CDs or savings accounts, albeit with some additional risk.
  • Generally offers rates higher than CDs or savings accounts can provide, albeit with some additional risk, as savings accounts and CDs are insured up to $250,000 by the FDIC, whereas Fund shares are not.
  • High quality cash management alternative.
  • Managed by Paul McCulley, PIMCO's short-term bond specialist, who oversees short-term assets at PIMCO.

 
Why Invest in this Fund

Current Income
In general, short-term bonds can be an attractive option for investors who are looking for higher income than savings accounts and CDs can provide. Of course, in exchange for this income potential, short-term bonds expose an investor to some additional risk. And, unlike CDs and savings accounts, these bonds are not guaranteed for repayment of principal and interest.

Minimal Volatility
Short-term bonds are considered more stable than longer-term, higher-yielding bonds, but less stable than lower yielding savings accounts and CDs.

Expert Management
As measured by assets under management, PIMCO is one of the largest investment advisors in the country. Among PIMCO's clients are more than half of the 100 largest U.S. corporations. PIMCO's Paul McCulley is the portfolio manager for the Fund. Mr. McCulley is a monetary policy specialist and began his investment career in 1983.
Investment Process

The top-down investment process begins with our annual secular forum where we develop a 3- to 5-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.

 

 

** Futures may also be used to manage the Fund portfolio's overall duration and sector exposure.
At A Glance
Symbol Lookup
 
Symbol
CUSIP
Inst Shares
PTSHX
693390601
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)
$10,589.4

Inception Date
Oct 7, 1987

Dividend Frequency
Monthly

Net Expense Ratio
0.500%

Gross Expense Ratio
-

> 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.
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