(PUB) Investing 2016

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5 Morningstar FundInvestor February 2016
Data through January 31, 2016 FINRA members: For internal or institutional use only.
PIMCO Foreign Bond (USD-Hedged) D Ticker
PFODX
Yield
6.7%
SEC Yield
1.11%
Total Assets
$7,653 mil
Mstar Category
World Bond
Benchmark 1: Citi WGBI NonUSD USD
Benchmark 2: Barclays US Agg Bond TR USD
Morningstar Analyst Rating 01-08-16
´
Morningstar Pillars
Process ∞ Positive
Performance ¶ Neutral
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
12.0
14.0
16.0
18.0
Historical Profile
Return
Risk
Rating
High
Below Avg
QQQQQ
Highest
8 8 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 01-16 History
10.18 10.22 9.08 10.00 10.43 10.58 10.79 10.52 10.77 9.91 10.01 NAV
2.48 3.51 -2.83 18.54 8.75 6.35 10.74 0.50 10.71 0.00 1.05 Total Return %
-4.46 -7.94 -12.93 14.15 3.54 1.18 9.24 5.06 13.39 5.54 0.05 +/- Bmark 1
-1.85 -3.45 -8.07 12.61 2.21 -1.49 6.53 2.52 4.75 -0.55 -0.33 +/- Bmark 2
2.81 3.08 3.47 4.03 2.32 3.81 4.39 1.85 7.97 6.56 0.04 Income Return %
-0.33 0.43 -6.29 14.51 6.43 2.54 6.35 -1.36 2.74 -6.56 1.01 Capital Return %
87 86 65 22 19 14 18 16 2 10 7 Total Rtn % Rank Cat
0.29 0.31 0.35 0.36 0.23 0.39 0.45 0.20 0.82 0.69 0.00 Income $
0.21 0.00 0.49 0.37 0.21 0.11 0.46 0.12 0.04 0.17 0.00 Capital Gains $
0.95 0.95 1.27 1.13 0.92 0.90 0.90 0.93 0.92 0.92 . Expense Ratio %
2.95 3.11 3.42 4.27 3.96 2.40 2.47 2.37 2.27 1.83 . Income Ratio %
571 653 969 779 411 236 355 383 175 317 . Turnover Rate %
220 135 125 159 307 310 386 450 734 1,058 . Net Assets $mil
Performance 01-31-16
1st Qtr 2nd Qtr 3rd Qtr 4th Qtr Total
2011 0.09 1.12 2.72 2.29 6.35
2012 2.15 1.49 4.94 1.78 10.74
2013 1.43 -3.11 0.96 1.28 0.50
2014 2.43 2.15 2.51 3.21 10.71
2015 2.47 -4.09 1.19 0.56 0.00
Trailing Total
Return%
+/- Bmark
1
+/- Bmark
2
%Rank
Cat
Growth of
$10,000
3 Mo 0.83 1.34 0.05 4 10,083
6 Mo 1.01 0.02 -0.32 7 10,101
1 Yr -0.90 2.19 -0.74 14 9,910
3 Yr Avg 4.00 7.48 1.85 2 11,248
5 Yr Avg 5.80 6.90 2.29 2 13,255
10 Yr Avg 5.84 2.87 1.18 6 17,641
15 Yr Avg 5.78 1.25 0.89 20 23,241
Tax Analysis Tax Adj Rtn% %Rank Cat Tax-Cost Rat %Rank Cat
3 Yr (estimated) 1.24 3 2.66 98
5 Yr (estimated) 3.19 3 2.47 97
10 Yr (estimated) 3.55 8 2.16 95
Potential Capital Gain Exposure: -8% of assets
Rating and Risk
Time
Period
Load-Adj
Return %
Morningstar
Rtn vs Cat
Morningstar
Risk vs Cat
Morningstar
Risk-Adj Rating
1 Yr -0.90
3 Yr 4.00 High -Avg QQQQQ
5 Yr 5.80 High -Avg QQQQQ
10 Yr 5.84 High -Avg QQQQQ
Incept 5.80
Other Measures Standard Index Best Fit Index
Alpha 2.0 2.7
Beta 0.91 0.33
R-Squared 61 70
Standard Deviation 3.43
Mean 4.00
Sharpe Ratio 1.15
Portfolio Analysis 09-30-15
Total Fixed Income: 719
Date of
Maturity Amount 000
Value
$000
%
Assets
Irs Usd 1.30000 05/06/16- 05-06-17 3,617,950 -3,635,944 45.50
10 Year US Treasury Note 12-21-15 1,627,300 2,094,894 26.21
Irs Usd 1.50000 12/16/15- 12-16-17 1,218,200 -1,233,627 15.44
Irs Usd 2.25000 12/16/15- 12-16-22 1,096,300 -1,131,015 14.15
Irs Jpy 0.15000 03/22/16- 03-22-18 119,300,000 996,866 12.47
Euro BOBL Future Dec15 12-08-15 611,800 881,105 11.03
Irs Usd 2.50000 12/16/15- 12-16-25 662,000 -688,646 8.62
Fed Natl Mort Assc 4.5% 10-15-43 492,900 -534,388 6.69
Irs Eur 0.49300 03/16/16- 03-16-21 428,900 479,939 6.01
Euro OAT Future Dec15 12-08-15 280,100 474,057 5.93
Irs Gbp 1.75000 09/16/16- 09-16-18 286,500 -437,992 5.48
Japanese Govt Bond (20y) 09-20-32 45,930,000 432,156 5.41
Japanese Govt Bond (20y) 09-20-34 48,320,000 427,479 5.35
US Treasury Note 01-15-25 365,738 350,899 4.39
Irs Gbp 1.75000 03/16/16- 03-16-21 222,700 340,705 4.26
Irs Eur 1.00000 03/16/16- 03-16-26 284,200 315,593 3.95
Mini 10 Year Japanese Gov 12-11-15 25,100,000 310,509 3.89
Japanese Govt Bond (30y) 09-20-44 33,460,000 300,996 3.77
Italian Btp Bond 08-01-23 209,900 291,010 3.64
Japanese Govt Bond (20y) 03-20-33 31,230,000 288,740 3.61
Current Investment Style
Quality High Med Low
Duration
Ltd Mod Ext
1 figure provided by
fund
Avg Eff Duration1 8.5 Yrs
Avg Eff Maturity 11.7 Yrs
Avg Credit Quality —
Avg Wtd Coupon 3.51%
Avg Wtd Price —
Coupon Range % of Bonds
0% PIK 0.3
0% to 4% 53.1
4% to 6% 43.6
6% to 8% 1.6
8% to 10% 1.1
More than 10% 0.4
Credit Analysis % bonds
AAA — BB —
AA — B —
A — Below B —
BBB — Not Rated —
Sector Breakdown % Assets
Government 20
Government Related 27
Corporate 3
Agency MBS 0
Non-Agency Residential MBS 1
Commercial MBS 1
Covered Bond 0
Asset Backed 2
Municipal 0
Cash & Equivalents 43
Other 3
Composition - Net
Cash 34.1 Bonds 55.6
Stocks 0.3 Other 10.0
Special Securities
Restricted/Illiquid Secs 7
Emerging-Markets Secs 0
Options/Futures/Warrants 0
Morningstar's Take by Karin Anderson 01-08-16
PIMCO Foreign Bond (USD-Hedged), steered by Andrew
Balls since September 2014, uses the same flexible and
diversified approach that predecessor Scott Mather plied
successfully for several years. While this management
change is relatively recent, Balls has a good deal of
experience running global and European mandates, and
the significant analytical resources and sound process
backing this fund remain intact. The fund also gets a
perennial edge on the competition from its low fees. The
fund retains its Morningstar Analyst Rating of Bronze.
When Balls took over, two new comanagers, both
longtime members of PIMCO’s global fixed-income team,
were added to this fund: Sachin Gupta, a credit and
interest-rate derivatives specialist, and Lorenzo Pagani,
who heads up the European government bond and rates
team.Ballshassuccessfully run the firm'sEuropean fixed-
income strategies since 2008, and remains in charge
there, and since 2011 he's been on the management
team of PIMCO Global Advantage Strategy, a world-bond
Morningstar Category offering, although it has struggled
in recent years because of its heavier focus on emerging-
markets debt and currencies.
In November 2015 the fund’s benchmark was
switched from the U.S. dollar-hedged, government-only
JPMorgan GBI Global ex-US Index to the U.S. dollar-
hedged Barclays Global Aggregate ex-US, a sensible
move given that the fund invests across government,
corporate, and securitized debt. The Barclays index also
containsa roughly15%stake inemerging-marketsbonds,
though this fund typically owns more (23% of assets as
of November 2015 and down from roughly 40% of assets
the previous year).
The lion’s share of the fund is typically devoted to
government debt from the eurozone and Japan, though
its regional weights can shift significantly over short
periods. For instance, Balls has made some notable
moves with the fund’s Japan stake, which recently
clocked in at 37% of assets (up from 20% a year earlier)
as he finds longer-dated Japanese government and
agency debt more attractive than similar European
issues.
Address: PIMCO Investments LLC distributor Minimum Purchase: $1000 Add: $50 IRA: —
New York NY 10019 Min Auto Inv Plan: $250 Add: $50
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:$293 5Yr:$509 10Yr:$1131
Subadvisor: None Income Distribution: Monthly
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