PIMCO Global Core Asset Allocation Fund
Summary Prospectus
August 1,
2024
| Share Class: |
Inst |
I-2 |
A |
C |
| Ticker: |
PGAIX |
PGAPX |
PGMAX |
PGMCX |
Before you invest, you may want to review the Fund’s prospectus, which, as supplemented, contains more information about the Fund and its risks. You can find the Fund’s prospectus, reports to shareholders (once available) and other information about the Fund online at http://investments.pimco.com/prospectuses. You can also get this information at no cost by calling 888.87.PIMCO or by
sending an email request to piprocess@dstsystems.com. The Fund’s prospectus and Statement of Additional Information, both dated August 1, 2024, as supplemented, are incorporated by reference into this Summary Prospectus.
Investment Objective
The Fund seeks total return which exceeds that of a blend of 60% MSCI All
Country World Index/40% Bloomberg Global Aggregate Index (USD Hedged).
Fees and Expenses of the Fund
This table describes the fees and expenses that you may pay if you buy,
hold and sell shares of the Fund. You may pay other fees, such as brokerage commissions and other
fees to financial intermediaries, which are not reflected in the table and example below. You may
qualify for sales charge discounts if you and your family invest, or agree to invest in the
future, at least $100,000 in Class A shares of eligible funds offered by PIMCO Equity Series and PIMCO Funds. More information about these and other discounts is available in the “Classes of Shares” section on page 48 of the Fund’s prospectus, Appendix B to the Fund’s prospectus (Financial Firm-Specific Sales Charge Waivers and Discounts) or from your financial
professional.
Shareholder Fees (fees paid
directly from your investment):
| |
Inst
Class |
I-2 |
Class A |
Class C |
| Maximum Sales Charge (Load) Imposed on Purchases (as a
percentage of offering price) |
None |
None |
5.50% |
None |
| Maximum Deferred Sales Charge (Load) (as a percentage of
the lower of the original purchase price or redemption price)
|
None |
None |
1.00% |
1.00% |
Annual Fund Operating Expenses (expenses that you pay each year as a
percentage of the value of your investment):
| |
Inst
Class |
I-2 |
Class A |
Class C |
| Management Fees |
0.95% |
1.05% |
1.15% |
1.15% |
| Distribution and/or Service (12b-1) Fees |
N/A |
N/A |
0.25% |
1.00% |
| Other Expenses(1) |
0.16% |
0.16% |
0.16% |
0.16% |
| Acquired Fund Fees and Expenses(2) |
0.07% |
0.07% |
0.07% |
0.07% |
| Total Annual Fund Operating Expenses |
1.18% |
1.28% |
1.63% |
2.38% |
| Fee Waiver and/or Expense Reimbursement(3)(4)
|
(0.07%) |
(0.07%) |
(0.07%) |
(0.07%) |
| Total Annual Fund Operating Expenses After
Fee Waiver and/or Expense Reimbursement(5) |
1.11% |
1.21% |
1.56% |
2.31% |
1
“Other Expenses” include interest expense of 0.16%. Interest expense is
borne by the Fund separately from the management fees paid to PIMCO. Excluding interest expense of
the Fund, Total Annual Fund Operating Expenses After Fee Waiver and/or Expense
Reimbursement are 0.95%,
1.05%, 1.40% and 2.15% for Institutional Class, I-2, Class A and Class C shares, respectively.
2
Acquired Fund Fees and Expenses include the advisory fee and the supervisory and
administrative fee paid by PIMCO Cayman Commodity Fund II Ltd. (the “Subsidiary”).
3
PIMCO has contractually agreed to waive the Fund’s advisory fee and the
supervisory and administrative fee in an amount equal to the management fee and administrative
services fee, respectively, paid by the Subsidiary to PIMCO. The Subsidiary pays PIMCO a management
fee and an administrative services fee at the annual rate of 0.49% and 0.20%, respectively, of its net assets. This waiver may not be terminated by PIMCO and will remain in effect for as long as PIMCO’s contract with the Subsidiary is in place.
4
PIMCO has contractually agreed, through July 31, 2025, to waive, first, the advisory fee and, second, the supervisory and administrative fee it receives from the Fund in an amount equal to the expenses
attributable to the Management Fees of Underlying PIMCO Funds indirectly incurred by the Fund in connection with its investments in Underlying PIMCO Funds up to a maximum waived amount that is equal to the Fund's aggregate advisory fee and
supervisory and administrative fee. This waiver renews annually for a full year unless terminated by PIMCO upon at least 30 days’ notice prior to the end of the contract term.
5
Total Annual Fund Operating Expenses After Fee Waiver and/or Expense Reimbursement do not match the Ratio of Expenses to Average Net Assets of the Fund, as set forth in the
Financial Highlights table of the Fund’s prospectus, because the Ratio of Expenses to Average Net Assets reflects the operating expenses of the Fund and does not include Acquired Fund Fees and Expenses.
Example. The Example is intended to help you compare the cost of investing in Institutional Class, I-2, Class A or Class C shares of the Fund with the costs of investing in
other mutual funds. The Example assumes that you invest $10,000 in the noted class of shares for the time periods indicated, and then hold or redeem all your shares at the end of those periods. The Example also assumes that
your investment has a 5% return each year and that the Fund’s operating expenses remain the
same. Although your actual costs may be higher or lower, based on these assumptions your costs
would be:
If you redeem your shares at the end of
each period:
| |
1 Year |
3 Years |
5 Years |
10 Years |
| Institutional Class |
$113 |
$368 |
$642 |
$1,426 |
| I-2 |
$123 |
$399 |
$696 |
$1,539 |
| Class A |
$700 |
$1,029 |
$1,382 |
$2,371 |
| Class C |
$334 |
$736 |
$1,264 |
$2,525 |
If you do not redeem your shares:
| |
1 Year |
3 Years |
5 Years |
10 Years |
| Class A |
$700 |
$1,029 |
$1,382 |
$2,371 |
| Class C |
$234 |
$736 |
$1,264 |
$2,525 |
Portfolio Turnover
The Fund pays transaction costs when it buys and sells securities (or “turns over” its portfolio).
A higher portfolio turnover rate may indicate higher transaction costs and may result in higher taxes when Fund shares are held in a taxable account. These costs, which are not reflected in the Annual Fund Operating
Expenses or in the Example tables, affect the Fund’s performance. During the most recent fiscal year, the Fund’s portfolio turnover rate was 594% of the average value of its portfolio.
PIMCO Funds | Summary Prospectus
PIMCO Global Core Asset
Allocation Fund
Principal Investment
Strategies
The Fund is intended for investors who prefer to have their
asset allocation decisions made by professional investment managers. Pacific Investment
Management Company LLC (“PIMCO”) uses a three-step approach in seeking to achieve the Fund’s investment objective which consists of 1) developing a target asset allocation; 2) developing a series of relative value strategies
designed to add value beyond the target allocation; and 3) utilizing hedging techniques to manage risks. PIMCO evaluates these three steps and uses varying combinations of Acquired Funds and/or direct investments to
implement them within the Fund. The Fund may invest in Institutional Class or Class M shares of any
funds of the Trust and PIMCO Equity Series, an affiliated open-end investment company, except
funds of funds and PIMCO California Municipal Intermediate Value Fund, PIMCO California Municipal
Opportunistic Value Fund, PIMCO National Municipal Intermediate Value Fund and PIMCO National
Municipal Opportunistic Value Fund (“Underlying PIMCO Funds”), and may also invest in other affiliated funds, including funds of PIMCO ETF Trust, and unaffiliated funds (collectively, “Acquired
Funds”). The term “fund of funds” refers to mutual funds that pursue their investment objective by investing all or a significant portion of their assets in other funds.
The Fund seeks to achieve its investment objective by investing under normal circumstances in a combination of
affiliated and unaffiliated funds, which may or may not be registered under the Investment
Company Act of 1940, as amended (the “1940 Act”), Fixed Income Instruments, equity
securities, forwards and derivatives. “Fixed Income Instruments” include bonds, debt securities and other similar instruments issued by various U.S. and non-U.S. public- or private sector entities. The Fund will invest in
such funds, securities, instruments and other investments to the extent permitted under the 1940 Act, or any exemptive relief therefrom. The Fund may invest, without limitation, in any of the Underlying PIMCO Funds
(except the PIMCO CommoditiesPLUS® Strategy Fund, PIMCO CommodityRealReturn Strategy
Fund® and PIMCO Commodity Strategy Active Exchange-Traded Fund). To the extent the Fund invests in Underlying PIMCO Funds, PIMCO expects to select such Underlying PIMCO Funds without considering or canvassing the
universe of available unaffiliated Acquired Funds. The Fund will invest either directly or indirectly (through a fund) in instruments that are economically tied to at least three countries (one of which may be the United
States).
Asset
Allocations. The Fund seeks concurrent exposure to a broad spectrum of asset classes and other investments. The Fund will typically invest 20% to 80% of its net assets
in equity-related investments (including investment in common stock, preferred securities, equity
securities of real estate investment trusts and/or investment in the Domestic Equity-Related
Underlying PIMCO Funds, the International Equity-Related Underlying PIMCO Funds and the PIMCO
RealEstateRealReturn Strategy Fund, an Underlying PIMCO Fund and in other equity-related Acquired
Funds). For the purposes of the above limitation, equity positions will be calculated on a net basis, meaning if short equity-related positions are held, they will be netted against long positions. With respect to its
direct or indirect (through a fund)
investments in equity securities, there is no limitation on the market capitalization range of the issuers in
which the Fund may invest. The Fund may invest up to 25% of its total assets in commodity-related
investments (including exposure to commodity-related investments obtained through investment in
the PIMCO Cayman Commodity Fund II Ltd., a wholly-owned subsidiary of the Fund organized under the laws of the Cayman Islands (the “Subsidiary”), and investment in the PIMCO CommoditiesPLUS® Strategy
Fund, PIMCO CommodityRealReturn Strategy Fund® and PIMCO Commodity Strategy Active
Exchange-Traded Fund, Underlying PIMCO Funds). The Subsidiary is advised by PIMCO and primarily
invests in commodity-linked derivative instruments backed by a portfolio of Fixed Income Instruments. As discussed in greater detail elsewhere in this prospectus, the Subsidiary (unlike the Fund) may invest without
limitation in commodity-linked swap agreements and other commodity-linked derivative instruments. In order to comply with certain issuer diversification limits imposed by the Internal Revenue Code, the Fund may
invest up to 25% of its total assets in the Subsidiary. The Fund may invest, without limitation, in
securities denominated in foreign currencies and in U.S. dollar-denominated securities of foreign
issuers. The Fund may invest, without limitation, in high yield securities (“junk bonds”). The Fund may invest, without limitation, in securities and
instruments that are economically tied to emerging market countries. The Fund may purchase and sell
securities on a when-issued, delayed delivery or forward commitment basis and may engage in short
sales.
Asset Allocation Investment
Process. The Fund’s assets are not allocated according to a predetermined blend of shares of the Acquired Funds and/or direct investments in
securities, instruments and other investments. Instead, when making allocation decisions among the
Acquired Funds, securities, instruments and other investments, PIMCO considers various
qualitative and quantitative factors relating to the U.S. and non-U.S. economies, and securities and commodities markets. These factors include projected growth trends in the U.S. and non-U.S. economies, forecasts for interest rates
and the relationship between short- and long-term interest rates (yield curve), current and
projected trends in inflation, relative valuation levels in the equity, fixed income, commodity
and real estate markets and various segments within those markets, the outlook and projected growth of various industrial sectors, information relating to business cycles, borrowing needs and the cost of capital,
political trends, data relating to trade balances, and labor information. PIMCO uses these factors to help determine the Fund’s target asset allocation and to identify potentially attractive relative value and
risk hedging strategies. PIMCO has the flexibility to reallocate the Fund’s assets among any or all of the investment exposures represented by affiliated or unaffiliated funds, or invest directly in securities,
instruments and other investments, based on its ongoing analyses of the global economy and financial markets. While these analyses are performed daily, material shifts in investment exposures typically take place over longer
periods of time.
The first step of the investment process is to
determine the target asset allocation. When determining the target allocation for the strategy,
PIMCO may use proprietary quantitative models. The target allocations may include long, short, or
no positions in the underlying financial
2 Summary Prospectus | PIMCO Funds
Summary
Prospectus
markets and asset classes specified in the
models. The quantitative models are developed and maintained by PIMCO, and are subject to change
over time without notice in PIMCO’s discretion. PIMCO also retains discretion over the final target asset allocation and the implementation of the target asset allocation, which may include positions that are different from target
allocations determined by quantitative models. PIMCO then considers incorporating relative value
and risk hedging strategies. Relative value strategies may seek to improve the portfolio’s
risk-adjusted return potential. Risk hedging strategies may seek to reduce the Fund’s exposure to certain severe, unanticipated market events that could significantly detract from returns.
Once the target asset allocation, relative value strategies and risk hedging strategies have been determined, PIMCO then evaluates various combinations of affiliated or
unaffiliated funds, securities, instruments and other investments to obtain the desired exposures and invests accordingly. Additional information for these Underlying PIMCO Funds can be found in the Statement of
Additional Information and/or the Underlying PIMCO Funds’ prospectuses and financial reports.
Additional Underlying PIMCO Funds may be added or deleted in the future without shareholder
notification.
Principal Risks
It is possible to lose money on an investment in the Fund. The principal risks of investing in the Fund include risks from direct investments and/or indirect exposure through investment in Acquired Funds. The principal risks of investing in the Fund,
which could adversely affect its net asset value, yield and total return, are listed below.
The following risks are principal risks of investing in the Fund.
Allocation Risk: the risk that the Fund could lose money as a result of less than optimal or poor asset allocation decisions. The Fund could miss attractive investment opportunities
by underweighting markets that subsequently experience significant returns and could lose value by
overweighting markets that subsequently experience significant declines
Acquired Fund Risk: the risk that the Fund's performance is closely related to the risks associated with the securities and other
investments held by the Acquired Funds and that the ability of the Fund to achieve its investment
objective will depend upon the ability of the Acquired Funds to achieve their investment objectives. In addition, the Fund's performance will be reduced by the Fund's proportionate amount of the expenses of any Acquired Funds in which
it invests
Market Trading Risk: the risk that an active secondary trading market for shares of a Fund that is an exchange-traded fund does not continue once developed, that such Fund may not
continue to meet a listing exchange’s trading or listing requirements, or that such Fund’s shares trade at prices other than the Fund’s net asset value, particularly during times of market
stress
The following are principal risks of investing in the Fund
that include risks from direct investments and/or indirect exposure through investment in
Acquired Funds.
New Fund Risk: the risk that a new fund’s performance may not represent how the fund is expected to or may perform in
the long term. In addition, new funds have limited operating histories for investors to evaluate
and new funds may not attract sufficient assets to achieve investment and trading efficiencies
Small Fund Risk: the risk that a smaller fund may not achieve investment or trading efficiencies. Additionally, a smaller fund
may be more adversely affected by large purchases or redemptions of fund shares
Interest Rate Risk: the risk that fixed income securities will fluctuate in value because of a change in interest rates; a fund with a longer average portfolio duration will be more
sensitive to changes in interest rates than a fund with a shorter average portfolio duration
Call Risk: the risk that an issuer may exercise its right to redeem a fixed income security earlier than expected (a call). Issuers may call outstanding securities prior to their
maturity for a number of reasons (e.g., declining interest rates, changes in credit spreads and improvements in the issuer’s credit quality).
If an issuer calls a security that the Fund has invested in, the Fund may not recoup the full amount of its initial investment or may not realize the full anticipated earnings from the investment and may be
forced to reinvest in lower-yielding securities, securities with greater credit risks or securities with other, less favorable features
Credit Risk: the risk that the Fund could lose money if the issuer or guarantor of a fixed income security, or the
counterparty to a derivative contract, or the issuer or guarantor of collateral, is unable or unwilling, or is perceived (whether by market participants, rating agencies, pricing services or otherwise) as unable or
unwilling, to meet its financial obligations
High Yield Risk: the risk that high yield securities and unrated securities of similar credit quality (commonly known as
“junk bonds”) are subject to greater levels of credit, call and liquidity risks. High yield securities are considered primarily speculative with respect to the issuer’s continuing ability to make
principal and interest payments, and may be more volatile than higher-rated securities of similar maturity
Distressed Company Risk: the risk that securities of distressed companies may be subject to greater levels of market, issuer and liquidity risks. Distressed companies may be
engaged in restructurings or bankruptcy proceedings, which may cause the value of their securities
to fluctuate rapidly or unpredictably
Market Risk: the risk that the value of securities owned by the Fund may go up or down, sometimes rapidly or unpredictably,
due to factors affecting securities markets generally or particular industries
Issuer Risk: the risk that the value of a security may decline for a reason directly related to the issuer, such as
management performance, changes in financial condition or credit rating, financial leverage,
reputation or reduced demand for the issuer’s goods or services
Liquidity Risk: the risk that a particular investment may be difficult to purchase or sell and that the Fund may be unable to
sell illiquid
August 1, 2024 | SUMMARY PROSPECTUS 3
PIMCO Global Core Asset
Allocation Fund
investments at an advantageous time or
price or achieve its desired level of exposure to a certain sector. Liquidity risk may result from the lack of an active market, reduced number and capacity of traditional market participants to make a market in
fixed income securities, and may be magnified in a rising interest rate environment or other
circumstances where investor redemptions from fixed income funds may be higher than normal,
causing increased supply in the market due to selling activity
Derivatives Risk: the risk of investing in derivative instruments (such as forwards, futures, swaps and structured securities)
and other similar investments, including leverage, liquidity, interest rate, market, counterparty
(including credit), operational, legal and management risks, and valuation complexity. Changes in the value of a derivative or other similar investment may not correlate perfectly with, and may be more sensitive to market events than,
the underlying asset, rate or index, and the Fund could lose more than the initial amount invested.
Changes in the value of a derivative or other similar instrument may also create margin delivery
or settlement payment obligations for the Fund. The Fund’s use of derivatives or other similar investments may result in losses to the Fund, a reduction in the Fund’s returns and/or increased volatility.
Non-centrally-cleared over-the-counter (“OTC”) derivatives or other similar investments are also subject to the risk that a counterparty to the transaction will not fulfill its contractual obligations to the other party, as many of
the protections afforded to centrally-cleared derivative transactions might not be available for
non-centrally-cleared OTC derivatives or other similar investments. The primary credit risk on
derivatives or other similar investments that are exchange-traded or traded through a central clearing counterparty resides with the Fund's clearing broker or the clearinghouse. Changes in regulation relating to a registered
fund’s use of derivatives and related instruments could potentially limit or impact the Fund’s ability to invest in derivatives, limit the Fund’s ability to employ certain strategies that use derivatives or other
similar investments and/or adversely affect the value of derivatives or other similar investments and the Fund’s performance
Model Risk: the risk that the Fund’s investment models used in making investment allocation decisions may not
adequately take into account certain factors or may contain design flaws or faulty assumptions,
and may rely on incomplete or inaccurate data inputs, any of which may result in a decline in the value of an investment in the Fund
Commodity Risk: the risk that investing in commodity-linked derivative instruments and commodities indirectly through a
subsidiary, may subject the Fund to greater volatility than investments in traditional
securities. The value of commodity-linked derivative instruments or commodities may be affected
by changes in overall market movements, foreign currency exchange rates, commodity index volatility, changes in inflation, interest rates, or supply and demand factors affecting a particular industry or commodity market,
such as drought, floods, weather, livestock disease, pandemics and public health emergencies,
embargoes, taxation, war, terrorism, cyber hacking, economic and political developments,
environmental proceedings, tariffs, changes in
storage costs, availability of transportation systems, and international economic, political and regulatory
developments
Equity Risk: the risk that the value of equity or equity-related securities, such as common stocks and preferred securities, may decline due to general market conditions which
are not specifically related to a particular company or to factors affecting a particular industry or industries. Equity or equity-related securities generally have greater price volatility than fixed income
securities. In addition, preferred securities may be subject to greater credit risk or other risks, such as risks related to deferred and omitted distributions, limited voting rights, liquidity, interest rates,
regulatory changes and special redemption rights
Mortgage-Related and Other Asset-Backed Securities Risk: the risks of investing in mortgage-related and other asset-backed securities, including interest rate risk, extension risk, prepayment risk and credit risk. The Fund may invest in any
tranche of mortgage-related and other asset-backed securities, including junior and/or equity tranches (to the extent consistent with other of the Fund’s guidelines), which generally carry higher levels of the
foregoing risks
Foreign (Non-U.S.) Investment
Risk: the risk that investing in foreign (non-U.S.) securities may result in the Fund experiencing more rapid and extreme changes in value than
a fund that invests exclusively in securities of U.S. companies, due to smaller markets, differing
reporting, accounting and auditing standards, increased risk of delayed settlement of portfolio
transactions or loss of certificates of portfolio securities, and the risk of unfavorable foreign government actions, including nationalization, expropriation or confiscatory taxation, currency blockage, political changes,
diplomatic developments or the imposition of sanctions and other similar measures. Foreign securities may also be less liquid and more difficult to value than securities of U.S. issuers
Real Estate Risk: the risk that the Fund’s investments in real estate investment trusts (“REITs”) or real estate-linked derivative instruments will subject the Fund to
risks similar to those associated with direct ownership of real estate, including losses from casualty or condemnation, and changes in local and general economic conditions, supply and demand, interest rates, zoning
laws, regulatory limitations on rents, property taxes and operating expenses. The Fund’s investments in REITs or real estate-linked derivative instruments subject it to management and tax risks. In addition,
privately traded REITs subject the Fund to liquidity and valuation risk
Emerging Markets Risk: the risk of investing in emerging market securities, primarily increased foreign (non-U.S.) investment
risk
Sovereign Debt Risk: the risk that investments in fixed income instruments issued by sovereign entities may decline in value as a result of default or other adverse credit
event resulting from an issuer’s inability or unwillingness to make principal or interest payments in a timely fashion
Currency Risk: the risk that foreign (non-U.S.) currencies will change in value relative to the U.S. dollar and affect the
Fund’s investments in
4 Summary Prospectus | PIMCO Funds
Summary
Prospectus
foreign (non-U.S.) currencies or in
securities that trade in, and receive revenues in, or in derivatives that provide exposure to, foreign (non-U.S.) currencies
Smaller Company Risk: the risk that the value of securities issued by a smaller company may go up or down, sometimes rapidly and
unpredictably as compared to more widely held securities, due to narrow markets and limited
resources of smaller companies. The Fund’s investments in smaller companies subject it to greater levels of credit, market and issuer risk
Leveraging Risk: the risk that certain transactions of the Fund, such as reverse repurchase agreements, loans of portfolio
securities, and the use of when-issued, delayed delivery or forward commitment transactions, or
derivative instruments, may give rise to leverage, magnifying gains and losses and causing the Fund to be more volatile than if it had not been leveraged. This means that leverage entails a heightened risk of loss
Tax Risk: the risk that the tax treatment of swap agreements and other derivative instruments, such as commodity-linked derivative instruments, including commodity index-linked
notes, swap agreements, commodity options, futures, and options on futures, may be affected by future regulatory or legislative changes that could affect whether income from such investments is “qualifying
income” under Subchapter M of the Internal Revenue Code, or otherwise affect the character, timing and/or amount of the Fund’s taxable income or gains and distributions
Subsidiary Risk: the risk that, by investing in the Subsidiary, the Fund is indirectly exposed to the risks associated with the
Subsidiary’s investments. The Subsidiary is not registered under the 1940 Act and may
not be subject to all the investor protections of the 1940 Act. There is no guarantee that the investment objective of the Subsidiary will be achieved
Management Risk: the risk that the investment techniques and risk analyses applied by PIMCO including the use of
quantitative models or methods, will not produce the desired results and that actual or potential
conflicts of interest, legislative, regulatory, or tax restrictions, policies or developments may affect the investment techniques available to PIMCO and the individual portfolio managers in connection with managing the Fund and may cause PIMCO to
restrict or prohibit participation in certain investments. There is no guarantee that the
investment objective of the Fund will be achieved
Short Exposure Risk: the risk of entering into short sales or other short positions, including the potential loss of more money
than the actual cost of the investment, and the risk that the third party to the short sale or
other short position will not fulfill its contractual obligations, causing a loss to the Fund
Value Investing Risk: a value stock may decrease in price or may not increase in price as anticipated by PIMCO if it continues to be undervalued by the market or the factors that
the portfolio manager believes will cause the stock price to increase do not occur
Arbitrage Risk: the risk that securities purchased pursuant to an arbitrage strategy intended to take advantage of a perceived relationship between the value of two securities
may not perform as expected
Convertible Securities Risk: as convertible securities share both fixed income and equity characteristics, they are subject to risks to
which fixed income and equity investments are subject. These risks include equity risk, interest
rate risk and credit risk
Exchange-Traded Fund
Risk: the risk that an exchange-traded fund may not track the performance of the index it is designed to track, among other reasons, because of exchange
rules, market prices of shares of an exchange-traded fund may fluctuate rapidly and materially,
or shares of an exchange-traded fund may trade significantly above or below net asset value, any
of which may cause losses to the Fund invested in the exchange-traded fund
Tracking Error Risk: the risk that the portfolio of a Fund that seeks to track the investment results of an underlying index may
not closely track the underlying index for a number of reasons. The Fund incurs operating
expenses, which are not applicable to the underlying index, and the costs of buying and selling
securities, especially when rebalancing the Fund’s portfolio to reflect changes in the composition of the underlying index. Performance of the Fund and the underlying index may vary due to asset valuation differences and
differences between the Fund’s portfolio and the underlying index due to legal restrictions, cost or liquidity restraints. The risk that performance of the Fund and the underlying index may vary may be
heightened during periods of increased market volatility or other unusual market conditions. In
addition, a Fund’s use of a representative sampling approach may cause the Fund to be less
correlated to the return of the underlying index than if the Fund held all of the securities in the underlying index
Indexing Risk: the risk that an Underlying PIMCO Fund that seeks to track the investment results of an underlying index is negatively affected by general declines in the asset
classes represented by the underlying index
Collateralized Loan Obligations Risk: the risk that investing in collateralized loan obligations (“CLOs”) and other similarly structured
investments exposes the Fund to heightened credit risk, interest rate risk, liquidity risk,
market risk and prepayment and extension risk, as well as the risk of default on the underlying asset. In addition, investments in CLOs carry additional risks including, but not limited to: (i) the possibility that
distributions from collateral securities will not be adequate to make interest or other payments; (ii) the quality of the collateral may decline in value or default; (iii) risks related to the capability of the servicer of the
securitized assets; (iv) the risk that the Fund may invest in tranches of CLOs that are subordinate to other tranches; (v) the structure and complexity of the transaction and the legal documents may not be fully
understood at the time of investment and could lead to disputes with the issuer or among investors regarding the characterization of proceeds or unexpected investment results; and (vi) the CLO's manager may perform
poorly
August 1, 2024 | SUMMARY PROSPECTUS 5
PIMCO Global Core Asset
Allocation Fund
LIBOR Transition
Risk: the risk related to the discontinuation and replacement of the London Interbank Offered Rate (“LIBOR”). Certain instruments held by the Fund
rely or relied in some fashion upon LIBOR. Although the transition process away from LIBOR for most instruments has been completed, some LIBOR use is continuing and there are potential effects related to the transition
away from LIBOR or the continued use of LIBOR on the Fund, or on certain instruments in which the
Fund invests, which can be difficult to ascertain and could result in losses to the Fund
Please see “Description of Principal Risks” in the Fund's prospectus for a more detailed description of the risks of investing in the Fund. An investment in the Fund is not a deposit of a bank and is not insured or guaranteed by the Federal Deposit
Insurance Corporation or any other government agency.
Performance Information
The performance information shows summary performance information for the Fund in a bar chart and an Average
Annual Total Returns table. The information provides some indication of the risks of investing in the Fund by showing changes in its performance from year to year and by showing how the Fund’s average
annual returns compare with the returns of certain indexes. Absent any applicable fee waivers
and/or expense limitations, performance would have been lower. The bar chart shows performance of
the Fund’s Institutional Class shares. Performance in the Average Annual Total Returns
table reflects the impact of sales charges.The Fund’s past performance,
before and after taxes, is not necessarily an indication of how the Fund will perform in the future.
In addition to the Fund’s performance, the Average Annual Total Returns table includes performance of: (i) a broad-based securities market index (i.e., a regulatory index) and (ii)
two supplemental indexes. It is not possible to invest directly in an unmanaged index. Effective
July 24, 2024, the Fund’s regulatory index is the MSCI All Country World Index. The
Fund’s regulatory index is shown in connection with certain regulatory requirements to provide a broad measure of market performance. The MSCI All Country World Index is a free-float adjusted market capitalization weighted index
that is designed to measure the equity market performance of developed and emerging markets. The
MSCI All Country World Index consists of a group of country indexes comprising developed and
emerging market indexes. The supplemental index shown is the 60% MSCI All Country World Index (ACWI) and 40% Bloomberg Global Aggregate (USD Hedged) Index. The Bloomberg Global Aggregate (USD Hedged) Index provides a
broad-based measure of the global investment-grade fixed income markets. The three major
components of this index are the U.S. Aggregate, the Pan-European Aggregate, and the
Asian-Pacific Aggregate Indices. The index also includes Eurodollar and Euro-Yen corporate bonds, Canadian Government securities, and USD investment grade 144A securities.
Performance for the Fund is updated daily and quarterly and may be obtained as follows: daily and quarterly
updates on the net asset value and performance page at
https://www.pimco.com/en-us/product-finder.
| Best Quarter |
June 30, 2020 |
15.87% |
| Worst Quarter |
March 31, 2020 |
-15.18% |
| Year-to-Date |
June 30, 2024 |
7.17% |
Average Annual Total Returns (for periods ended 12/31/23)
| |
1 Year |
5 Years |
10 Years |
| Institutional Class Return Before Taxes |
12.73% |
6.58% |
5.33% |
| Institutional Class Return After Taxes on Distributions(1) |
11.88% |
4.99% |
4.25% |
| Institutional Class Return After Taxes on Distributions
and Sales of Fund Shares(1) |
7.50% |
4.39% |
3.72% |
| I-2 Return Before Taxes |
12.58% |
6.46% |
5.21% |
| Class A Return Before Taxes |
6.07% |
4.90% |
4.23% |
| Class C Return Before Taxes |
10.40% |
5.31% |
4.02% |
| MSCI All Country World Index (reflects no deductions
for fees, expenses or taxes) |
22.20% |
11.72% |
7.93% |
| Bloomberg Global Aggregate (USD Hedged)
Index (reflects no deductions for fees, expenses or
taxes) |
7.15% |
1.40% |
2.41% |
| 60% MSCI All Country World Index (ACWI) and 40%
Bloomberg Global Aggregate USD Hedged
Index (reflects no deductions for fees, expenses or
taxes) |
16.11% |
7.80% |
5.93% |
1
After-tax returns are calculated using the highest historical individual federal
marginal income tax rates and do not reflect the impact of state and local taxes. Actual after-tax
returns depend on an investor’s tax situation and may differ from those shown, and the
after-tax returns shown are not relevant to investors who hold their Fund shares through tax-deferred arrangements, such as 401(k) plans or individual retirement accounts. In some cases the return after taxes may exceed the return before taxes due to an assumed tax benefit from any losses on a sale of Fund shares at the end of the measurement period. After-tax returns are for Institutional Class shares only. After-tax returns for other classes will
vary.
Investment Adviser/Portfolio Managers
PIMCO serves as the investment adviser for the Fund. The Fund’s portfolio is jointly and primarily managed
by Erin Browne and Emmanuel Sharef. Ms. Browne is a Managing
Director of PIMCO and a senior portfolio manager in the Asset Allocation team
and has managed the Fund since January 2019. Dr. Sharef is an Executive Vice President of PIMCO and has managed the Fund since December 2019.
6 Summary Prospectus | PIMCO Funds
Summary
Prospectus
Purchase and Sale of Fund
Shares
Fund shares may be purchased or sold (redeemed) on any business
day (normally any day when the New York Stock Exchange (“NYSE”) is open). Generally,
purchase and redemption orders for Fund shares are processed at the net asset value next calculated after an order is received by the Fund.
Institutional Class and I-2
The minimum initial investment for Institutional Class and I-2 shares of the Fund is $1 million, except that
the minimum initial investment may be modified for certain financial firms that submit orders on behalf of their customers.
You may sell (redeem) all or part of your Institutional Class and I-2 shares of the Fund on any business day.
If you are the registered owner of the shares on the books of the Fund, depending on the elections
made on the Account Application, you may sell by:
■
Sending a written request by regular mail to:
PIMCO Funds
P.O. Box 219024, Kansas City, MO 64121-9024
or by overnight mail to:
PIMCO Funds c/o SS&C Global Investor and Distribution Solutions, Inc.
P.O. Box 219024, Kansas City, MO 64121-9024
or by overnight mail to:
PIMCO Funds c/o SS&C Global Investor and Distribution Solutions, Inc.
430 W 7th Street, STE 219024, Kansas City, MO 64105-1407
■
Calling us at 888.87.PIMCO and a Shareholder Services associate will assist you
■
Sending a fax to our Shareholder Services department at 1.816.421.2861
■
Sending an e-mail to piprocess@dstsystems.com
Class A
and Class C
The minimum initial investment for Class A and Class C
shares of the Fund is $1,000. The minimum subsequent investment for Class A and Class C shares is
$50. The minimum initial investment may be modified for certain financial firms that submit orders on behalf of their customers. You may purchase or sell (redeem) all or part of your Class A and Class C shares through a
broker-dealer, or other financial firm, or, if you are the registered owner of the shares on the books of the Fund, by regular mail to PIMCO Funds, P.O. Box 219294, Kansas City, MO 64121-9294 or overnight mail to PIMCO Funds, c/o
SS&C Global Investor and Distribution Solutions, Inc., 430 W. 7th Street, STE 219294, Kansas
City, MO 64105-1407. The Fund reserves the right to require payment by wire or U.S. Bank check in connection with accounts opened directly with the Fund by Account Application.
Tax Information
The Fund’s distributions are generally taxable to you as ordinary income, capital gains, or a
combination of the two, unless you are investing through a tax-deferred arrangement, such as a 401(k) plan or an individual retirement account, in which case distributions may be taxable upon withdrawal. Distributions paid
by the Fund that are
properly reported as “exempt interest dividends” normally will be exempt from federal income
taxes, but may not be exempt from the federal alternative minimum tax.
Payments to Broker-Dealers and Other Financial Firms
If you purchase shares of the Fund through a broker-dealer or other financial firm (such as a bank), the Fund
and/or its related companies (including PIMCO) may pay the financial firm for the sale of those shares of the Fund and/or related services. These payments may create a conflict of interest by influencing the
broker-dealer or other financial firm and your salesperson to recommend the Fund over another
investment. Ask your salesperson or visit your financial firm’s website for more
information.
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