NEWPORT BEACH, Calif., May 30, 2001 (PRIMEZONE) -- PIMCO announced today that its Real Return Bond Fund now has more than $1 billion in assets under management -- an increase of more than 66 percent since the beginning of 2001.
PIMCO's Real Return Bond Fund is among a small handful of mutual funds investing primarily in inflation-indexed bonds, designed to offer clients protection against the erosive power of inflation.
"Though positioned to protect retirees' long-term well being, recent flare-ups in energy prices have drawn increased attention to the fund," said John Brynjolfsson, PIMCO Executive Vice President and portfolio manager since inception of the Real Return Fund.
As of April 30, 2001, the Real Return Fund generated 13.88 percent for the one-year period and 9.78 percent for the three-year period, outperforming the Lipper Short-Term U.S. Government Fund Average for both periods. Performance for the most recent quarter-end, one-year and since inception were 5.29 percent, 14.44 percent and 8.09 percent, respectively.
"The Real Return Fund represents PIMCO fixed income innovation at its best," said Brent R. Harris, PIMCO Funds Chairman and PIMCO Managing Director. "Its focus on a new and important investment class and our demonstrated expertise in the area will serve our investors well."
Since the beginning of the year, investors have shared that sentiment, giving the Real Return Bond Fund a net cash flow of more than $350 million, making it the largest public U.S. TIPS fund in the country, according to Lipper data.
"Since its inception in early 1997, aided by PIMCO Funds' expanding remarketing and load fund distribution channels, the Real Return Fund has begun to achieve acceptance amongst U.S. investors," Harris said.
The Real Return Fund has been turning in an impressive performance since inception on January 29, 1997. Its annualized return, as of April 30, 2001, was 8.12 percent. The Lehman U.S. TIPS Index, a benchmark for such funds, was 6.43 percent for the same period. The Real Return Fund has an overall five-star rating from Morningstar and is rated number one of 71 peers in the Lipper Short-Term U.S. Government Fund category for the one-year period and also number one of 64 for the three-year period.
With more than $220 billion in fixed income assets under management, PIMCO is one of the world's leading fixed income fund management companies. Founded in 1971 and based in Newport Beach, Calif., the company is majority owned by Munich-based Allianz Group, a leading global insurance company with nearly $670 billion in assets and represented in 70 countries around the globe. In addition, PIMCO manages a family of 64 stock and bond mutual funds available to both retail and institutional investors.
Past performance is no guarantee of future results. Investment return and principal value will fluctuate so that Fund shares, when redeemed, may be worth more or less than their original cost. Returns are annualized and net of fees and other expenses for the Institutional Class shares and includes reinvestment of dividends, income and capital gains, if any. While inflation-indexed Treasuries are issued and guaranteed by the U.S. Government for timely payment of principal and interest, the shares of the Fund are not. The "largest public TIPS mutual fund" is based on total net assets by Lipper Analytical Services, Inc. Call or write for a current PIMCO Funds prospectus containing more complete information, including management fees and expenses. Please read it carefully before you invest or send money. PIMCO Funds Distributors LLC, member NASD, 2187 Atlantic Street, Stamford, CT 06902, (800) 927-4648.
Past rankings are no guarantee of future rankings. Morningstar proprietary ratings reflect historical risk-adjusted performance, are subject to change monthly and are calculated from the fund's 3-year average annual returns as of April 30, 2001. The ratings are inclusive of appropriate sales charge adjustment and a risk factor that reflects a fund's performance below three-month Treasury bill returns. Ratings are based on the institutional class shares. Other share classes may vary. The top 10% of the funds in an investment category receive five stars and the next 22.5% receive four-star ratings. There were 1,802 funds rated in the taxable bond category for the three-year period ended 4/30/01.
Based on the total returns for the one and three-year periods through 4/30/01, Lipper ranked the PIMCO Real Return Fund Institutional Class share number 1 of 71 and 1 of 64, respectively. Lipper rankings are based on changes in net asset value with dividends reinvested. Lipper calculations do not include sales loads charged by other funds, if they had, results may have been different. Past rankings are no guarantee of future rankings.
Except for the historical information and discussions contained herein, statements contained in this news release constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements may involve a number of risks, uncertainties and other factors that could cause actual results to differ materially, including the performance of financial markets, the investment performance of PIMCO's sponsored investment products and separately managed accounts, general economic conditions, future acquisitions, competitive conditions and government regulations, including changes in tax laws. Readers should carefully consider such factors. Further, such forward-looking statements speak only on the date at which such statements are made. PIMCO undertakes no obligation to update any forward-looking statements to reflect events or circumstances after the date of such statements.