(PUB) Investing 2016

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Data through September 30, 2016 FINRA members: For internal or institutional use only.
PIMCO High Yield D Ticker
PHYDX
Yield
5.0%
SEC Yield
4.74%
Total Assets
$10,733 mil
Mstar Category
High Yield Bond
Benchmark 1: BofAML US HY Master II TR USD
Benchmark 2: Barclays US Agg Bond TR USD
Morningstar Analyst Rating 09-29-16
„
Morningstar Pillars
Process ∞ Positive
Performance ∞ Positive
People ∞ Positive
Parent ¶ Neutral
Price ∞ 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 „ ´ ‰ Á
Pillar Spectrum
∞ Positive § Negative ¶ Neutral
10.0
12.5
15.0
17.5
20.0
22.5
Historical Profile
Return
Risk
Rating
Average
Average
QQQ
Neutral
6 6 Investment Style
Fixed Income
Growth of $10,000
Investment Values of
Fund
Investment Values of
Benchmark 1
) & * ( ( * ( ) & * ( Performance Quartile
(within Category)
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 09-16 History
9.89 9.54 6.69 8.80 9.30 8.98 9.64 9.61 9.14 8.26 8.83 NAV
9.00 3.32 -23.98 43.56 13.84 3.64 14.15 5.40 2.95 -2.20 11.12 Total Return %
-2.77 1.12 2.41 -13.96 -1.35 -0.75 -1.43 -2.02 0.45 2.45 -4.20 +/- Bmark 1
4.67 -3.65 -29.22 37.63 7.30 -4.20 9.94 7.43 -3.02 -2.75 5.32 +/- Bmark 2
7.06 6.93 7.26 10.54 7.96 7.14 6.64 5.71 6.06 5.36 4.07 Income Return %
1.94 -3.61 -31.24 33.01 5.88 -3.50 7.51 -0.31 -3.11 -7.55 7.05 Capital Return %
76 11 41 65 55 44 62 78 16 28 62 Total Rtn % Rank Cat
0.67 0.66 0.67 0.68 0.68 0.64 0.58 0.54 0.56 0.48 0.33 Income $
0.01 0.01 0.00 0.00 0.00 0.01 0.00 0.00 0.19 0.22 0.00 Capital Gains $
0.90 0.90 0.91 0.91 0.91 0.90 0.90 0.90 0.90 0.91 0.90 Expense Ratio %
6.83 6.64 6.73 8.22 8.41 6.95 6.46 5.47 5.35 5.13 5.13 Income Ratio %
105 75 187 354 129 36 50 39 25 39 32 Turnover Rate %
427 374 458 657 788 704 779 649 396 318 . Net Assets $mil
Performance 09-30-16
1st Qtr 2nd Qtr 3rd Qtr 4th Qtr Total
2012 5.02 1.37 4.00 3.10 14.15
2013 2.14 -1.63 1.96 2.88 5.40
2014 2.62 1.77 -1.75 0.33 2.95
2015 2.38 -0.35 -3.58 -0.58 -2.20
2016 2.63 3.23 4.88 — —
Trailing Total
Return%
+/- Bmark
1
+/- Bmark
2
%Rank
Cat
Growth of
$10,000
3 Mo 4.88 -0.61 4.42 47 10,488
6 Mo 8.27 -3.42 5.59 68 10,827
1 Yr 10.47 -2.35 5.28 27 11,047
3 Yr Avg 4.80 -0.47 0.78 22 11,511
5 Yr Avg 7.41 -0.83 4.33 40 14,299
10 Yr Avg 6.38 -1.21 1.59 41 18,555
15 Yr Avg 7.11 -1.35 2.31 57 28,009
Tax Analysis Tax Adj Rtn% %Rank Cat Tax-Cost Rat %Rank Cat
3 Yr (estimated) 1.97 22 2.70 67
5 Yr (estimated) 4.70 36 2.53 56
10 Yr (estimated) 3.65 39 2.57 45
Potential Capital Gain Exposure: 0% of assets
Rating and Risk
Time
Period
Load-Adj
Return %
Morningstar
Rtn vs Cat
Morningstar
Risk vs Cat
Morningstar
Risk-Adj Rating
1 Yr 10.47
3 Yr 4.80 +Avg Avg QQQQ
5 Yr 7.41 Avg Avg QQQ
10 Yr 6.38 Avg Avg QQQ
Incept 6.01
Other Measures Standard Index Best Fit Index
Alpha 2.6 0.4
Beta 0.54 0.83
R-Squared 7 92
Standard Deviation 5.31
Mean 4.80
Sharpe Ratio 0.89
Portfolio Analysis 06-30-16
Total Fixed Income: 782
Date of
Maturity Amount 000
Value
$000
%
Assets
Cdx Hy25 5y Ice 12-20-20 183,150 190,736 1.89
Renaissance Acquisition 08-15-21 80,000 73,000 0.72
Crimson Merger Sub / Or 05-15-22 83,000 68,683 0.68
Lloyds Bkg Grp Cv FRN — 60,150 58,947 0.58
Cdx Hy23 5y Ice 12-20-19 48,500 51,607 0.51
Hca 7.5% 02-15-22 40,750 46,435 0.46
Argos Merger Sub 144A 7 03-15-23 40,900 42,229 0.42
Hd Sply 7.5% 07-15-20 40,000 41,996 0.42
Numericable Grp Sa 144A 05-15-22 43,000 41,979 0.42
Cdx Hy26 5y Ice 06-20-21 40,000 41,285 0.41
Mgm Resorts Intl 6.625% 12-15-21 36,675 40,067 0.40
Numericable Grp Sa 144A 05-15-24 42,550 40,848 0.40
Altice Sa 144A 7.75% 05-15-22 38,000 38,523 0.38
First Data Corp New 144 01-15-24 37,000 37,231 0.37
Univision Comms 144A 5. 02-15-25 37,250 36,971 0.37
Aercap Ireland Cap Limi 05-15-21 35,000 35,945 0.36
Sabine Pass Liquefactio 05-15-24 36,000 35,910 0.36
Gates Global 144A 6% 07-15-22 40,000 35,200 0.35
Hca 5.25% 06-15-26 34,000 35,381 0.35
Cco Hldgs Llc / Cco Hld 04-01-24 32,400 33,696 0.33
Current Investment Style
Quality High Med Low
Duration
Ltd Mod Ext
1 figure provided by
fund
Avg Eff Duration1 3.6 Yrs
Avg Eff Maturity 5.5 Yrs
Avg Credit Quality —
Avg Wtd Coupon 6.15%
Avg Wtd Price 98.74% of par
Coupon Range % of Bonds
0% PIK 0.0
0% to 4% 3.2
4% to 6% 49.8
6% to 8% 39.3
8% to 10% 6.0
More than 10% 1.7
Credit Analysis % bonds
AAA — BB —
AA — B —
A — Below B —
BBB — Not Rated —
Sector Breakdown % Assets
Government 0
Government Related 0
Corporate 87
Agency MBS 0
Non-Agency Residential MBS 0
Commercial MBS 0
Covered Bond 0
Asset Backed 0
Municipal 0
Cash & Equivalents 10
Other 3
Composition - Net
Cash 5.9 Bonds 92.1
Stocks 0.0 Other 2.1
Special Securities
Restricted/Illiquid Secs 43
Emerging-Markets Secs 0
Options/Futures/Warrants 0
Morningstar's Take by Sumit Desai, CFA 09-29-16
PIMCO High Yield has largely performed as expected
through various market environments. Its deft navigation
of the recent energy-sector troubles, along with a deep
team and inexpensive price tag, support the fund’s
upgrade to a Morningstar Analyst Rating of Silver.
Since taking over in January 2010, lead manager
Andrew Jessop has made this fund a straightforward
high-yield offering. The fund uses the Bank of America
Merrill Lynch U.S. High Yield BB-B Rated Constrained
Index as its benchmark, which excludes bonds rated CCC
or lower. Other broad-based high-yield bond indexes, like
the BofAML U.S. High Yield Master II Index, tend to carry
a nearly 15% allocation to CCC rated bonds.
The fund’s higher-quality approach should minimize
volatility over a full credit cycle relative to its high-yield
bond peers that tend to take on more credit risk, but could
lag during risk-on rallies. For example, the fund fell into
the bottom half of the high-yield bond Morningstar
Category in 2012 and 2013 when the CCC bonds it avoids
rallied. On the other hand, Jessop and team were early
to spot troubles in the energy and commodities sectors;
its move to avoid these sectors and lower-rated bonds in
general put the fund in the top quintile of its category
during the sell-off in 2014 and 2015. Since Jessop took
overmanagementof the fundonJan.10,2010, the fund’s
7.2% annualized return through Aug. 31, 2016, was in the
top third of the high-yield category on both an absolute
and risk-adjusted basis (as measured by its Sharpe ratio).
PIMCO boosted the management team of this fund
with the recent addition of Hozef Arif as comanager in
July 2016. Arif joined PIMCO in 2008 and has worked on
the firm’s high-yield bond team for several years, first as
a dedicated trader and then in a portfolio management
capacity. Jessop and Arif are supported by a deep team
of more than 50 credit analysts, supporting the fund’s
Positive People rating.
The 0.55% charge on the fund's Institutional shares
is one of the cheapest in the category.
Address: PIMCO Investments LLC distributor Minimum Purchase: $1000 Add: $50 IRA: —
New York NY 10019 Min Auto Inv Plan: — Add: —
888-877-4626 Sales Fees: No-load
Web Address: Management Fee: 0.25%, 0.40%A
Inception: 04-08-98 Actual Fees: Mgt:0.65% Dist:0.25%
Advisor: Pacific Investment Management Co LLC Expense Projections: 3Yr:$290 5Yr:$504 10Yr:$1120
Subadvisor: None Income Distribution: Monthly
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