(PUB) Investing 2016
5
February 2016
Morningstar FundInvestor
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 ´
Investment Style Fixed Income
Historical Profile Return Risk Rating High Below Avg QQQQQ Highest
8 8
18.0
Growth of $10,000
16.0
Investment Values of Fund Investment Values of Benchmark 1
14.0
Morningstar Pillars Process
∞ Positive ¶ Neutral ∞ Positive ¶ Neutral ∞ Positive
12.0
Performance
People Parent
10.0
Performance Quartile (within Category)
) ) ( & & & & & & & & 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 01-16 10.18 10.22 9.08 10.00 10.43 10.58 10.79 10.52 10.77 9.91 10.01 2.48 3.51 -2.83 18.54 8.75 6.35 10.74 0.50 10.71 0.00 1.05 -4.46 -7.94 -12.93 14.15 3.54 1.18 9.24 5.06 13.39 5.54 0.05 -1.85 -3.45 -8.07 12.61 2.21 -1.49 6.53 2.52 4.75 -0.55 -0.33 2.81 3.08 3.47 4.03 2.32 3.81 4.39 1.85 7.97 6.56 0.04 -0.33 0.43 -6.29 14.51 6.43 2.54 6.35 -1.36 2.74 -6.56 1.01 0.29 0.31 0.35 0.36 0.23 0.39 0.45 0.20 0.82 0.69 0.00 0.21 0.00 0.49 0.37 0.21 0.11 0.46 0.12 0.04 0.17 0.00 0.95 0.95 1.27 1.13 0.92 0.90 0.90 0.93 0.92 0.92 . 2.95 3.11 3.42 4.27 3.96 2.40 2.47 2.37 2.27 1.83 . 87 86 65 22 19 14 18 16 2 10 7
Price
History
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
NAV
Total Return % +/- Bmark 1 +/- Bmark 2 Income Return % Capital Return % Capital Gains $ Expense Ratio % Income Ratio % Turnover Rate % Net Assets $mil Total Rtn % Rank Cat Income $
Pillar Spectrum ∞ Positive
§ Negative
¶ Neutral
Performance 01-31-16 1st Qtr 2nd Qtr
3rd Qtr
4th Qtr
Total
2011 2012 2013 2014 2015
0.09 1.12 2.72 2.29 6.35 2.15 1.49 4.94 1.78 10.74 1.43 -3.11 0.96 1.28 0.50 2.43 2.15 2.51 3.21 10.71 2.47 -4.09 1.19 0.56 0.00
. .
571 220
653 135
969 125
779 159
411 307
236 310
355 386
383 450
175
317
734 1,058
Rating and Risk Time Period Load-Adj Return %
Portfolio Analysis 09-30-15
Date of Maturity
Value $000
% Assets
Morningstar Rtn vs Cat
Morningstar Risk vs Cat
Morningstar Risk-Adj Rating
Total Fixed Income: 719 Irs Usd 1.30000 05/06/16-
Amount 000
Trailing
Total Return%
+/- Bmark 1
+/- Bmark 2
%Rank Cat
Growth of $10,000
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
1 Yr 3 Yr 5 Yr
-0.90 4.00 5.80 5.84 5.80
3 Mo 6 Mo
0.83 1.34 0.05 1.01 0.02 -0.32 -0.90 2.19 -0.74 4.00 7.48 1.85 5.80 6.90 2.29 5.84 2.87 1.18 5.78 1.25 0.89
4 10,083 7 10,101 14 9,910 2 11,248 2 13,255 6 17,641 20 23,241
-Avg QQQQQ -Avg QQQQQ -Avg QQQQQ
High High High
1 Yr
10 Yr Incept
3 Yr Avg 5 Yr Avg 10 Yr Avg 15 Yr Avg
Other Measures
Standard Index
Best Fit Index
Alpha
2.0
2.7
Beta
0.91
0.33
Tax Analysis
Tax Adj Rtn% %Rank Cat Tax-Cost Rat %Rank Cat
R-Squared
61
70
3 Yr (estimated) 5 Yr (estimated) 10 Yr (estimated)
1.24 3.19 3.55
3 3 8
2.66 2.47 2.16
98 97 95
Standard Deviation
3.43 4.00 1.15
Mean
Sharpe Ratio
Potential Capital Gain Exposure: -8% of assets
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.
Current Investment Style
Sector Breakdown
% Assets
Government
20 27
Duration Ltd Mod Ext
Government Related
Quality High Med Low
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
1 figure provided by fund
8.5 Yrs 11.7 Yrs
Avg Eff Duration 1 Avg Eff Maturity Avg Credit Quality Avg Wtd Coupon
—
3.51%
Avg Wtd Price
—
Composition - Net Cash
Coupon Range
% of Bonds
34.1 Bonds 0.3 Other
55.6 10.0
0% PIK
0.3
Stocks
0% to 4% 4% to 6% 6% to 8% 8% to 10%
53.1 43.6
Special Securities Restricted/Illiquid Secs Emerging-Markets Secs Options/Futures/Warrants
1.6 1.1 0.4
7 0 0
More than 10%
Address:
PIMCO Investments LLC distributor
Minimum Purchase: Min Auto Inv Plan:
$1000
Add: $50 IRA: —
New York NY 10019
$250
Add: $50
Credit Analysis
% bonds
888-877-4626
Sales Fees:
No-load
AAA
— BB — B
— —
Web Address:
https://www.pimco.com/
Management Fee:
0.25%, 0.40%A
AA
Inception:
04-08-98
Actual Fees:
Mgt:0.65% Dist:0.25%
A
— Below B — — Not Rated —
Advisor:
Pacific Investment Management Co LLC
Expense Projections: Income Distribution:
3Yr:$293 5Yr:$509 10Yr:$1131
BBB
Subadvisor:
None
Monthly
D
ß ® Mutual Funds
©2016Morningstar, Inc.All rights reserved. The information herein is not represented orwarranted to be accurate, complete or timely. Past performance is no guarantee of future results.Access updated reports at www.morningstar.com . To order reprints, email reprints@morningstar.com
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