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PIMCO FUNDS PROFILE 
All data as of 07.31.08, unless otherwise indicated. 
PIMCO Mortgage-Backed Securities Fund Inst (PTRIX)
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About this Fund Performance Portfolio Review & Outlook Literature
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Fund Overview
Highlights
  • Invests in mortgage-backed securities, a unique sector of the bond market that offers a blend potential for low risk and solid returns.
  • Managed by Scott Simon-a recognized mortgage debt specialist.
Why Invest in this Fund

Treasury-Like Risk
Most mortgage-backed securities are issued and/or insured by government agencies or government-sponsored enterprises. Many also offer high credit quality.

Greater Return Potential
Mortgage-backed securities tend to yield more than comparable Treasuries do. That extra yield compensates investors for prepayment risk, which can shorten the bonds' average lives.

Expert Management
Because of their complexity and high investment cost, mortgage securities may be best bought through a mutual fund managed by a seasoned professional. PIMCO is currently the largest manager in the sizeable mortgage-backed securities market. PIMCO's mortgage specialist Scott Simon manages the Fund. Mr. Simon began his investment career in 1983 and enjoys industry-wide recognition for his expertise.

A Foundation Investment
With its high average credit quality and intermediate duration, PIMCO Mortgage-Backed Securities Fund makes a solid addition to virtually any investor's bond portfolio. In particular, the Fund can be an excellent complement to stock investments, since mortgage securities have a low correlation with the equity markets.
Investment Process

The top-down investment process begins with PIMCO's annual secular forum at which the firm develops 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 manager seeks to add value in a number of ways. First, interest rate strategies are employed to take advantage of the changing shape of the mortgage yield curve and overall level of volatility in the marketplace. Next, many areas of the mortgage market are exploited to add diversification and spread risk. Lastly, PIMCO's advanced proprietary analytics are critical to uncovering undervalued securities and managing portfolio risk under a variety of interest rate and prepayment scenarios.

 

 
At A Glance
Symbol Lookup
 
Symbol
CUSIP
Inst Shares
PTRIX
693391500
Objective
Seeks maximum total return, consistent with preservation of capital and prudent investment management

Primary Portfolio
Intermediate-term mortgage-related securities (1-7 yr. avg. duration)

Total Fund Assets (in millions)
$838.8

Inception Date
Jul 31, 1997

Dividend Frequency
Monthly

Expense Ratio *
1.200%

> Share Class Pricing

Manager
W. Scott Simon


 Scott Simon is a Managing Director, a senior member of PIMCO's portfolio management and investment strategy groups, and head of PIMCO's mortgage and ABS team.

Management Firm
Pacific Investment Management Company LLC (PIMCO)

Newport Beach, California

Led by Founder and 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, which may be obtained by contacting your financial advisor, or by calling 888-877-4626. Click here for the Fund´s prospectus. Please read this prospectus carefully before you invest or send money.

*Expense Ratio reflects any contractual expense reductions currently in place for this fund.

 

Past performance is no guarantee of future results. 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 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.

 

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. Government bonds and Treasury bills are guaranteed by the U.S. government and, if held to maturity, offer a fixed rate of return and fixed principal value. 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.

 

This Fund may invest at least 80% of its assets in a diversified portfolio of mortgage-related fixed-income instruments, which may entail greater risk than a fully diversified fund. The Fund may also invest in foreign securities, which may entail greater risk due to foreign economic and political developments. 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.
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