7
Morningstar FundInvestor
December
2013
Morningstar Analyst Rating
11-26-13
Œ
Morningstar Pillars
Process
Performance
People
Parent
Price
Positive
Positive
Positive
Positive
Positive
Morningstar Analyst Rating
Morningstar evaluates mutual funds based on five key pillars, which
its analysts believe lead to funds that are more likely to outperform
over the long term on a risk-adjusted basis.
Analyst Rating Spectrum
Œ „ ´ˇ ¨
Pillar Spectrum
Positive
§
Negative
¶
Neutral
NAV
10.88
11.24
10.87
10.85
10.80
10.14
10.69
10.38
10.50
10.67
10.71
10.67
Total Return %
-0.97
10.36
4.16
8.83
13.83
4.82
9.07
3.99
2.89
5.14
5.56
10.20
+/-BC Agg Bnd
0.50
6.15
-3.68
2.29
7.90
-0.42
2.10
-0.34
0.46
0.80
1.46
-0.06
+/-BC Agg Bnd
0.50
6.15
-3.68
2.29
7.90
-0.42
2.10
-0.34
0.46
0.80
1.46
-0.06
Income Return %
2.26
4.47
4.00
3.33
6.01
5.25
5.26
4.76
3.73
2.43
3.48
4.68
Capital Return %
-3.23
5.89
0.16
5.50
7.82
-0.43
3.81
-0.77
-0.84
2.71
2.08
5.52
Total Rtn % Rank Cat
41
12
87
26
46
11
1
47
5
12
29
11
Income $
0.25
0.47
0.43
0.35
0.59
0.55
0.53
0.49
0.39
0.26
0.37
0.48
Capital Gains $
0.00
0.27
0.00
0.54
0.11
0.49
0.07
0.04
0.08
0.33
0.18
0.35
Expense Ratio %
0.46
0.46
0.46
0.46
0.45
0.43
0.43
0.43
0.43
0.43
0.43
0.43
Income Ratio %
2.54
3.11
2.92
4.07
5.37
5.15
4.82
4.09
2.41
2.73
4.17
5.16
Turnover Rate %
380
584
430
402
300
226
257
325
470
.
234
445
Net Assets $mil
154,660
175,137
144,429
138,794
115,919
80,240
69,945
60,280
54,598
45,790
42,077
39,854
Performance
11-30-13
1st Qtr
2nd Qtr
3rd Qtr
4th Qtr
Total
2009
2010
2011
2012
2013
1.49 4.73
6.04 0.99 13.83
2.97 2.75
3.82 -0.92
8.83
1.11 1.86
-1.06 2.22
4.16
2.88 2.79
3.15 1.17 10.36
0.60 -3.60
1.17
. .
Trailing
Total
+/- BC
+/- BC %Rank Growth of
Return% Agg Bnd Agg Bnd
Cat
$10,000
3 Mo
6 Mo
1 Yr
3 Yr Avg
5 Yr Avg
10 Yr Avg
15 Yr Avg
2.72 1.34
1.34
5 10,272
-0.57 -0.01
-0.01
42 9,943
-0.73 0.88
0.88
35 9,927
4.23 1.14
1.14
24 11,323
7.93 2.60
2.60
31 14,646
6.26 1.55
1.55
4 18,353
6.57 1.27
1.27
4 25,973
Tax Analysis
Tax-Adj Rtn% %Rank Cat Tax-Cost Rat %Rank Cat
3 Yr (estimated)
5 Yr (estimated)
10 Yr (estimated)
2.20
39
1.95
94
5.65
42
2.11
95
4.19
5
1.95
96
Potential Capital Gain Exposure: 2% of assets
Rating and Risk
Time Load-Adj
Morningstar
Morningstar
Morningstar
Period Return % Rtn vs Cat
Risk vs Cat
Risk-Adj Rating
1 Yr
-0.73
3 Yr
4.23
+Avg
High
5 Yr
7.93
+Avg
+Avg
10 Yr
6.26
High
Avg
Incept
8.01
Other Measures
Standard Index
Best Fit Index
BC Agg Bnd
BC US Credit
Alpha
1.2
0.5
Beta
0.97
0.77
R-Squared
50
75
Standard Deviation
3.85
Mean
4.23
Sharpe Ratio
1.08
Morningstar’s Take
by Eric Jacobson 11-26-13
It’s important for investors to know what PIMCO Total
Return will and will not be.
In institutional lingo, this is a "core-plus" offering. It
keeps its rate sensitivity in a range around its
benchmark, the Barclays U.S. Aggregate, invests in the
same sectors as the index, and can add some
out-of-benchmark bonds. That gives the fund a broad
palette. Manager Bill Gross has historically made large
bets using the fund’s benchmark sectors (in particular
with agency mortgages), has peppered in
nonbenchmark holdings such as emerging-markets and
nonagency mortgage debt, and has long used
interest-rate bets to try and improve returns.
For all of its freedom, though, the fund keeps its
duration at plus or minus two years around the
Barclays Aggregate’s. It’s also limited to 10% in high
yield and 15% in emerging markets. The duration issue
is especially notable as many investors have been
recoiling from interest-rate risk of late. The fund made
its own headlines thanks to more than $30 billion in
outflows during the second and third quarters of 2013,
and the trend has left the broader intermediate-term
bond category with more than $70 billion in estimated
net outflows; about the same amount flowed into the
more interest-rate resistant bank-loan and
nontraditional bond groups.
The fund’s interest-rate limitations have been less
of a problem lately than the direction and magnitude
of its bets--the fund was caught short in late 2011 and
long during the summer of 2013--but as flows suggest,
and Gross believes, many investors want to give more
flexibility to their managers to slash their durations.
Neither he nor PIMCO see changing this portfolio’s
rules as the right solution, though. Gross believes he
has enough tools here to remain competitive, and is
especially concerned about keeping the fund intact for
shareholders who still prefer a corelike offering.
For investors of that mind, Gross’ long-term record
and massive PIMCO resources remain compelling. But
for those who want to give their managers much more
freedom--along with more freedom to fail--this isn’t
the place to be.
Address:
PIMCO Investments LLC distributor
New York, NY 10019
888-877-4626
Web Address:
Inception:
05-11-87
Advisor:
Pacific Investment Management Co LLC
Subadvisor:
None
NTF Plans:
N/A
Minimum Purchase:
$1000000
Add: $0 IRA: $0
Min Auto Inv Plan:
$0
Add:
.
Sales Fees:
No-load
Management Fee:
0.25%, 0.21%A
Actual Fees:
Mgt:0.46% Dist:
.
Expense Projections:
3Yr:$148
5Yr:$258 10Yr:$579
Income Distribution:
Monthly
Data through November 30, 2013
PIMCO Total Return Instl
Ticker Status Yield SEC Yield Total Assets Mstar Category
PTTRX Open 3.5% 2.02% $244,095 mil
Intermediate-Term Bond
66
27
16
26
16
65
22
7
43
2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 11-13
Historical Profile
Return
Risk
Rating
High
Above Avg
Highest
Investment Style
Fixed Income
Income Rtn %Rank Cat
Manager Change
Partial Manager Change
Growth of $10,000
Investment Values of
Fund
Investment Values of
BC Agg Bnd
Performance Quartile
(within Category)
History
10.0
12.0
14.0
16.4
18.8
20.8
Portfolio Analysis
06-30-13
Date of
Amount
Value % Net
Total Fixed-Income:19273
Maturity
$000
$000 Assets
Fin Fut Euro$ Cme 06/15/
06-16-15
. .
15.35
Irs Usd 3mls/1.50000s 03
03-18-16
. .
13.39
Fin Fut Euro$ Cme 12/14/
12-15-15
. .
9.80
Pimco Fds
02-14-14 1,607,377
.
5.99
Fin Fut Us 10yr Cbt 09/1
09-20-13
8,218,715 3.07
Fin Fut Euro$ Cme 09/14/
09-15-15
.
7,487,850 2.79
Fin Fut Euro$ Cme 03/14/
03-15-16
.
7,127,194 2.66
FNMA
07-15-43 6,746,300 7,030,118 2.62
US Treasury Note 2%
02-15-23 6,010,001 5,784,626 2.16
US Treasury Note
07-15-21 4,903,834 5,067,613 1.89
Fin Fut Euro$ Cme 03/16/
03-17-15
4,776,764 1.78
Brazil(Fed Rep Of) 10%
01-01-17 9,977 4,641,550 1.73
US Treasury Note 0.75%
02-28-18 4,731,001 4,615,497 1.72
FNMA
08-12-43 4,417,101 4,593,266 1.71
Ois Usd Fedl01/1.0 10/15
10-15-17 4,473,201 4,404,102 1.64
US Treasury Note 1.75%
05-15-23 4,502,601 4,217,319 1.57
US Treasury Note 0.75%
03-31-18 4,163,500 4,052,742 1.51
US Treasury Note 1%
11-30-19 4,241,380 4,041,572 1.51
US Treasury Note 1.625%
11-15-22 4,328,251 4,040,997 1.51
US Treasury Bond 2.5%
01-15-29 3,026,844 3,739,571 1.40
Current Investment Style
1
1
Avg Eff Duration
5.8 Yrs
Avg Eff Maturity
6.5 Yrs
Avg Credit Quality
.
Avg Wtd Coupon
3.27%
Avg Wtd Price
60.20% of par
figure provided
by fund
Duration
Ltd Mod Ext
Quality
High
Med Low
Special Securities
Restricted/Illiquid Secs
7
Exotic Mortgage-Backed
0
Emerging-Markets Secs
3
Options/Futures/Warrants Yes
Credit Analysis
% bonds 06-30-13
AAA
.
AA
.
A
.
BBB
.
BB
.
B
.
Below B
.
NR/NA
.
Sector Breakdown
% of assets
US Treasury
14
Non US Government
8
Government Related
4
Corporate
7
Agency MBS Pass-Through 18
Agency MBS ARM
0
Agency MBS CMO
0
Non-Agency Residential MBS 2
Commercial MBS
1
Asset-Backed
1
Municipal
2
Cash & Equivalents
38
Other
0
Composition - Net
Cash -52.2
Bonds 149.7
Stocks 0.0
Other
2.5
Coupon Range
% of Bonds Rel Cat
1.00=Category Average
0% PIK
18.0 6.4
0% to 6%
76.2 0.9
6% to 8%
3.3 0.3
8% to 10%
2.0 0.6
More than 10%
0.6 0.9
©
2013Morningstar, Inc.All rights reserved.The informationherein is not represented orwarranted to be accurate, correct, complete or
timely. Pastperformance is no guarantee of future results.Accessupdated reportsat
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