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Morningstar FundInvestor
May
2015
Morningstar Analyst Rating
04-22-15
´
Morningstar Pillars
Process
Performance
People
Parent
Price
¶
Positive
Positive
Positive
Neutral
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 „ ´x ¨
Pillar Spectrum
Positive
§
Negative
¶
Neutral
NAV
10.77
10.66
10.69
11.24
10.87
10.85
10.80
10.14
10.69
10.38
10.50
10.67
Total Return %
1.62
4.69
-1.92
10.36
4.16
8.83
13.83
4.82
9.07
3.99
2.89
5.14
+/-BC Agg Bnd
0.38
-1.28
0.10
6.15
-3.68
2.29
7.90
-0.42
2.10
-0.34
0.46
0.80
+/-BC Agg Bnd
0.38
-1.28
0.10
6.15
-3.68
2.29
7.90
-0.42
2.10
-0.34
0.46
0.80
Income Return %
0.59
4.23
2.39
4.47
4.00
3.33
6.01
5.25
5.26
4.76
3.73
2.43
Capital Return %
1.03
0.46
-4.31
5.89
0.16
5.50
7.82
-0.43
3.81
-0.77
-0.84
2.71
Total Rtn % Rank Cat
22
71
60
12
87
26
46
11
1
47
5
12
Income $
0.06
0.44
0.27
0.47
0.43
0.35
0.59
0.55
0.53
0.49
0.39
0.26
Capital Gains $
0.00
0.08
0.07
0.27
0.00
0.54
0.11
0.49
0.07
0.04
0.08
0.33
Expense Ratio %
.
0.46
0.46
0.46
0.46
0.46
0.45
0.43
0.43
0.43
0.43
0.43
Income Ratio %
.
2.10
2.54
3.11
2.92
4.07
5.37
5.15
4.82
4.09
2.41
2.73
Turnover Rate %
.
227
227
584
430
402
300
226
257
325
470
273
Net Assets $mil
68,941
85,898
150,959
175,137
144,429
138,794
115,919
80,240
69,945
60,280
54,598
45,790
Performance
04-30-15
1st Qtr
2nd Qtr
3rd Qtr
4th Qtr
Total
2011
2012
2013
2014
2015
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 -0.03 -1.92
1.30 2.37
-0.36 1.32
4.69
2.22
. . . .
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
-0.99 -0.15
-0.15
90 9,901
2.14 0.08
0.08
18 10,214
4.26 -0.20
-0.20
33 10,426
3.33 0.73
0.73
35 11,033
4.64 0.52
0.52
35 12,546
6.03 1.28
1.28
5 17,959
6.79 1.14
1.14
4 26,789
Tax Analysis
Tax-Adj Rtn% %Rank Cat Tax-Cost Rat %Rank Cat
3 Yr (estimated)
5 Yr (estimated)
10 Yr (estimated)
1.58
50
1.69
94
2.77
54
1.78
93
3.97
9
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
4.26
3 Yr
3.33
+Avg
High
5 Yr
4.64
Avg
High
10 Yr
6.03
High
+Avg
Incept
7.79
Other Measures
Standard Index
Best Fit Index
BC Agg Bnd
BC Agg Bnd
Alpha
0.2
0.3
Beta
1.20
1.20
R-Squared
88
88
Standard Deviation
3.67
Mean
3.33
Sharpe Ratio
0.90
Morningstar’s Take
by Sarah Bush 04-22-15
Nearly seven months out from Bill Gross’ abrupt
departure from PIMCO, there are signs of progress at
the firm and its flagship fund PIMCO Total Return. The
new three-manager investment team of PIMCO
veterans Scott Mather, Mark Kiesel, and Mihir Worah
is off to strong start, with Mather responsible for final
decision-making. That said, we are maintaining its
Morningstar Analyst Rating of Bronze to reflect risks
associated with ongoing outflows and because it will
take some time to see how the three new portfolio
managers, all strongly opinionated and talented
investors, coalesce as a team.
One of the fears following Gross’ departure was
that the firm would see an exodus of top investment
talent. However, despite a handful of departures
(notably, Saumil Parikh and Paul McCulley), PIMCO’s
senior investment ranks have been otherwise stable.
Meanwhile, several high-profile new and returning
hires have bolstered the ranks of the firm’s investment
committee and the macroeconomic team backing its
efforts. These additions, together with efforts made
since early 2014 to broaden this group’s makeup and
to increase debate and discussion, are encouraging.
The smooth functioning of the committee, which
includes all three portfolio managers, is key to this
fund’s success.
Redemptions remain a worry, even though they
slowed some in March and PIMCO’s senior
management team has indicated that they expect
them to taper further in upcoming months. Flows have
not yet taken a significant toll on returns--over the
trailing six months through March 2015, the fund’s
3.6% gain tops that of the Barclays U.S. Aggregate
Bond Index and roughly 90% of its peers thanks in part
to astute currency positioning--but they could still
pose a problem should performance weaken or should
the bond markets hit a period of turbulence.
These risks notwithstanding, PIMCO’s depth of
investment talent continues to inspire confidence in
this fund’s ability to reassert itself as a topnotch
choice for bond investors.
Address:
PIMCO Investments LLC distributor
New York, NY 10019
888-877-4626
Web Address:
https://investments.pimco.comInception:
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 April 30, 2015
PIMCO Total Return Instl
Ticker Status Yield SEC Yield Total Assets Mstar Category
PTTRX Open 4.0% 1.46% $117,398 mil
Intermediate-Term Bond
17
27
16
67
23
7
51
5
70
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 04-15
Historical Profile
Return
Risk
Rating
Above Avg
High
Above Avg
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
18.4
Portfolio Analysis
12-31-14
Date of
Amount
Value % Net
Total Fixed-Income:8364
Maturity
$000
$000 Assets
10 Year US Treasury Note
03-27-15
. .
25.21
Pimco Fds
06-08-15 2,518,712
.
17.41
30 Year US Treasury Bond
03-20-15
. .
13.13
Ois Usd Fedl01/0.08875 1
02-27-15 9,445,800 9,445,085 6.59
Long Term Euro BTP Futur
03-06-15 3,461,100 5,679,071 3.96
FNMA 4.5% TBA
01-14-45 5,037,501 5,468,837 3.81
US Treasury Bond 3.125%
08-15-44 4,984,451 5,367,241 3.74
FNMA 4% TBA
01-14-45 4,419,001 4,716,541 3.29
Ois Usd Fedl01/1.0 10/15
10-15-17 4,473,201 4,443,198 3.10
Irs Usd 4.000 06/19/19-5
06-19-24 3,800,000 3,994,149 2.79
US Treasury TIP 2.375%
01-15-27 3,119,575 3,738,371 2.61
US Treasury TIP 2.5%
01-15-29 2,735,809 3,401,166 2.37
US Treasury TIP 2%
01-15-26 2,648,164 3,038,769 2.12
US Treasury TIP 1.75%
01-15-28 2,659,708 3,015,237 2.10
US Treasury TIP
01-15-25 2,509,267 2,949,957 2.06
US Treasury TIP 0.125%
01-15-22 2,403,084 2,340,378 1.63
US Treasury Bond 3%
11-15-44 2,184,700 2,296,665 1.60
Fed Natl Mort Assc 3.5%
01-15-29 2,047,000 2,162,623 1.51
Irs Usd 4.500 06/19/19-5
06-19-24 1,850,000 1,984,973 1.38
Zcs Brl R 11.47 08/15/13
01-02-17 6,117,201 1,878,536 1.31
Current Investment Style
1
1
Avg Eff Duration
4.9 Yrs
Avg Eff Maturity
10.5 Yrs
Avg Credit Quality
.
Avg Wtd Coupon
4.19%
Avg Wtd Price
67.02% of par
figure provided
by fund
Duration
Ltd Mod Ext
Quality
High
Med Low
Special Securities
Restricted/Illiquid Secs
9
Exotic Mortgage-Backed
0
Emerging-Markets Secs
2
Options/Futures/Warrants
No
Credit Analysis
% bonds 12-31-14
AAA
.
AA
.
A
.
BBB
.
BB
.
B
.
Below B
.
NR/NA
.
Sector Breakdown
% of assets
US Treasury
3
Non US Government
37
Government Related
5
Corporate
8
Agency MBS Pass-Through
6
Agency MBS ARM
0
Agency MBS CMO
0
Non-Agency Residential MBS 3
Commercial MBS
1
Asset-Backed
1
Municipal
3
Cash & Equivalents
26
Other
0
Composition - Net
Cash 46.7
Bonds 46.3
Stocks 0.0
Other
7.1
Coupon Range
% of Bonds Rel Cat
1.00=Category Average
0% PIK
0.2 0.1
0% to 6%
89.5 1.1
6% to 8%
7.1 0.6
8% to 10%
1.0 0.3
More than 10%
2.2 3.7
©
2015Morningstar, Inc.All rights reserved. The information herein isnot representedorwarranted to be accurate, correct, complete or
timely.Past performance isnoguaranteeof future results.Accessupdated reports at
Toorder reprints, call 312-696-6100.
mfb.morningstar.com.
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