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PIMCO FUNDS PROFILE 
All data as of 07.31.08, unless otherwise indicated. 
PIMCO Total Return Fund Inst (PTTRX)
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About this Fund Performance Portfolio Review & Outlook Literature
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Fund Overview
Highlights
  • Managed by PIMCO founder and Chief Investment Officer, Bill Gross.
  • Employs a variety of value-added strategies to increase total return potential and help reduce portfolio risk.
  • The largest bond fund in the country and the only bond fund among the country's five largest mutual funds.**
Why Invest in this Fund

A Core Holding
Investment professionals recommend building a portfolio diversified with stocks and bonds to help achieve your long-term financial goals. Regardless of whether that diversification strategy leads you to invest in two mutual funds or twelve, PIMCO Total Return Fund can be the foundation of your portfolio's bond holdings. The Fund invests primarily in an intermediate-term portfolio of investment grade securities - a combination that offers investors an attractive risk/reward profile.

Proven Investment Process
PIMCO Total Return Fund is different from most other bond funds because it focuses on income and capital appreciation, rather than income alone. In fact, since inception, the Fund has realized over 20% of its total return from capital appreciation. This total return approach is backed by active portfolio management within a long-term framework.

Expert Management
As measured by assets under management, PIMCO is one of the largest investment advisors in the country. Among PIMCO's clients are many of the 100 largest U.S. corporations. PIMCO founder Bill Gross manages the Fund. Mr. Gross is widely acknowledged as one of the country's premier bond managers. In fact, Morningstar has named Bill Gross and his fixed-income team as their "Fixed-Income Manager of the Year" an unprecendented three times, in 1998, 2000 and 2007.
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. Quarterly meetings are then held to discuss how the outlook applies to upcoming 3- to 12-month periods and to forecast specific influencing factors, including interest rate volatility, yield curve movements and credit trends. Taken together, these sessions set the basic portfolio parameters, including duration, yield-curve positioning, sector weightings and credit quality. Bottom-up strategies, including credit analysis, quantitative research and individual issue selection, are then meshed with the top-down strategies to add value. 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
PTTRX
693390700
Objective
Seeks maximum total return, consistent with preservation of capital and prudent investment management

Primary Portfolio
Intermediate-term, investment grade bonds.

Total Fund Assets (in millions)
$129,561.3

Inception Date
May 11, 1987

Dividend Frequency
Monthly

Expense Ratio *
0.490%

> Share Class Pricing

Manager
William Gross


 Bill Gross, CFA, is a founder and Managing Director of PIMCO. He began his investment career in 1969 and is widely regarded as the world's foremost fixed income authority.

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.

 

**As of 11/30/07 according to SimFunds.

 

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. 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 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 both 1998 and 2000.

 

This Fund invests at least 65% of its assets in a diversified portfolio of fixed-income securities, up to 20% in foreign securities, and 10% in high-yield 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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