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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-CSR
CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT
INVESTMENT COMPANIES
Investment Company Act file number: 811-22375
PIMCO Equity Series
(Exact name of registrant as specified in charter)
650 Newport Center Drive, Newport Beach, CA 92660
(Address of principal executive office)
Trent W. Walker
Treasurer (Principal Financial & Accounting Officer)
PIMCO Equity Series
650 Newport Center Drive, Newport Beach, CA 92660
(Name and address of agent for service)
Copies to:
Brenden C. Fox
Dechert LLP
1900 K Street, N.W.
Washington, D.C. 20006
Registrant’s telephone number, including area code: (888) 877-4626
Date of fiscal year end: June 30
Date of reporting period: June 30, 2015
Form N-CSR is to be used by management investment companies to file reports with the Commission not later than 10 days after the transmission to stockholders of any report that is required to be transmitted to stockholders under Rule 30e-1 under the Investment Company Act of 1940 (17 CFR 270.30e-1). The Commission may use the information provided on Form N-CSR in its regulatory, disclosure review, inspection, and policymaking roles.
A registrant is required to disclose the information specified by Form N-CSR, and the Commission will make this information public. A registrant is not required to respond to the collection of information contained in Form N-CSR unless the Form displays a currently valid Office of Management and Budget (“OMB”) control number. Please direct comments concerning the accuracy of the information collection burden estimate and any suggestions for reducing the burden to Secretary, Securities and Exchange Commission, 450 Fifth Street, NW, Washington, DC 20549-0609. The OMB has reviewed this collection of information under the clearance requirements of 44 U.S.C. § 3507.
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Item 1. | Reports to Shareholders. |
The following is a copy of the report transmitted to shareholders pursuant to Rule 30e-1 under the Investment Company Act of 1940, as amended (the “1940 Act”) (17 CFR 270.30e-1).
• | PIMCO Equity Series—Institutional, P, Administrative, D, A, C and R Classes |
• | PIMCO Equity Series RAE Fundamental Funds—Institutional, P, A and C Classes |
• | PIMCO Equity Series RealPathTM Blend Funds—Institutional, Administrative and A Classes |
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Your Global Investment Authority
PIMCO Equity Series®
Annual Report
June 30, 2015
PIMCO Balanced Income Fund
PIMCO Dividend and Income Builder Fund
PIMCO Emerging Multi-Asset Fund
PIMCO EqS® Emerging Markets Fund
PIMCO EqS® Long/Short Fund
PIMCO Global Dividend Fund
PIMCO International Dividend Fund
PIMCO U.S. Dividend Fund
PIMCO EqS Pathfinder Fund®
Share Classes
n | Institutional |
n | P |
n | Administrative |
n | D |
n | A |
n | C |
n | R |
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Fund | Fund Summary | Schedule of Investments | ||||||
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10 | 49 | |||||||
11 | 57 | |||||||
12 | 60 | |||||||
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17 | 77 |
* | Prior to December 31, 2014, the Fund’s name was PIMCO EqS® Dividend Fund. |
This material is authorized for use only when preceded or accompanied by the current PIMCO Equity Series prospectus. The Shareholder Reports for the other series of the PIMCO Equity Series are printed separately.
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Dear Shareholder,
Please find enclosed the Annual Report for the PIMCO Equity Series covering the twelve-month reporting period ended June 30, 2015. On the following pages are specific details about the investment performance of each fund and a discussion of the factors that most affected performance during the reporting period.
Highlights of the financial markets during our twelve-month reporting period include:
n | Investor concerns over the potential for global deflation gradually receded as oil prices rose during the latter part of the reporting period after significantly declining in 2014 and early 2015. In addition, the outlook for economic growth brightened, particularly for developed market economies led by continuing growth in the U.S. and improvement in Europe. Investors, however, were kept on edge by events in Greece, in which the debt crisis worsened sharply towards the latter part of the period and continues to be a concern outside of the reporting period as events remain fluid. Furthermore, Chinese equity markets experienced heightened volatility and data pointed to a slowing Chinese economy, prompting Chinese policymakers to lower interest rates. |
n | U.S. equities, as represented by the S&P 500 Index, returned 7.42% due to an improving economic outlook and stronger jobs growth. Internationally, equity markets experienced strong performance, notably in Europe and Japan, but currency moves in unhedged U.S. dollar terms created headwinds for returns as the MSCI EAFE Net Dividend Index (USD hedged) returned 11.19% while the MSCI EAFE Net Dividend Index (USD Unhedged) declined 4.22% over the reporting period. Japanese equities, as represented by the MSCI Japan Index, returned 31.24% over the same period. The sharp decline in oil prices in 2014 and early 2015 led to heightened equity market volatility over the reporting period. The debt crisis in Greece weighed on global equities late in the reporting period as Prime Minister Alexis Tsipras called for a referendum to be held regarding a bailout offered by its European creditors. Greece shut down its banking system ahead of the vote in order to prevent financial collapse. |
n | Emerging market (“EM”) equities, as represented by the MSCI Emerging Markets Index (Net Dividends in USD), declined 5.12% over the reporting period. Concerns over slower Chinese economic growth created headwinds for EM equities, as Chinese stocks briefly moved into bear market territory near the close of the reporting period despite efforts by the People’s Bank of China to offset the recent decline through additional interest rate cuts. In the latter part of 2014, Brazil was one of the worst performing equity markets as the country slipped back into recession and President Rousseff won her re-election campaign. The Brazilian real fell 17% in the first quarter of 2015 following nationwide protests against corruption, rising unemployment and weak economic growth, before rebounding in the second quarter of 2015, after the Brazilian central bank lowered the upper limit of its inflation target, sending signs of confidence to the market. These events, along with a strong U.S. dollar and lower commodity prices over the reporting period, were contributing factors in EM equity underperformance relative to developed market equities. |
n | Style-wise, growth equities outperformed value equities globally as the MSCI All Country World Growth Index (Net Dividends in USD) returned 4.86% and the MSCI All Country World Value Index (Net Dividends in USD) declined 3.41%. The healthcare and consumer discretionary sectors were the top performing equity sectors, while the energy and materials sectors were the worst performing equity sectors over the reporting period. |
n | U.S. Treasuries, as represented by the Barclays U.S. Treasury Index, returned 2.31% for the reporting period. Longer-maturity yields (i.e., seven to thirty year yields) declined, with prices therefore higher, while shorter-maturity yields (i.e., six month to five year yields) rose as investors anticipated some degree of monetary tightening by the Federal Reserve to occur later in 2015. The benchmark ten-year U.S. Treasury note yielded 2.35% at the end of the reporting period, down from 2.53% on June 30, 2014. The Barclays U.S. Aggregate Index, a widely used index of U.S. investment-grade bonds, returned 1.86% for the reporting period. |
2 | PIMCO EQUITY SERIES |
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If you have any questions regarding the PIMCO Equity Series, please contact your account manager or financial adviser, or call one of our shareholder associates at 888.87.PIMCO (888.877.4626). We also invite you to visit our website at www.pimco.com to learn more about our views and global thought leadership.
Thank you again for the trust you have placed in us. We value your commitment and will continue to work diligently to meet your broad investment needs.
![]() | Sincerely,
Brent R. Harris Chairman of the Board, PIMCO Equity Series
August 20, 2015
|
ANNUAL REPORT | JUNE 30, 2015 | 3 |
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Important Information About the Funds
We believe that equity funds have an important role to play in a well diversified investment portfolio. It is important to note, however, that equity funds are subject to notable risks. Among other things, equity and equity-related securities may decline in value due to both real and perceived general market, economic, and industry conditions.
The values of equity securities, such as common stocks and preferred stocks, have historically risen and fallen in periodic cycles and may decline due to general market conditions, which are not specifically related to a particular company, such as real or perceived adverse economic conditions, changes in the general outlook for corporate earnings, changes in interest or currency rates or adverse investor sentiment generally. Equity securities may also decline due to factors that affect a particular industry or industries, such as labor shortages, increased production costs and competitive conditions within an industry. In addition, the value of an equity security may decline for a number of reasons that directly relate to the issuer, such as management performance, financial leverage and reduced demand for the issuer’s goods or services, as well as the historical and prospective earnings of the issuer and the value of its assets. Different types of equity securities may react differently to these developments and a change in the financial condition of a single issuer may affect securities markets as a whole.
During a general downturn in the securities markets, multiple asset classes, including equity securities, may decline in value simultaneously. The market price of equity securities owned by a Fund may go up or down, sometimes rapidly or unpredictably. Equity securities generally have greater price volatility than fixed income securities and common stocks generally have the greatest appreciation and depreciation potential of all corporate securities. In addition, although the Federal Reserve (“Fed”) ended its bond-buying program in October 2014, the Fed indicated that it remains committed to accommodative monetary policy, which in the past has aided equity markets. As of the date of this report, Europe is one of the worst performing regions for equity markets, as deflationary concerns weighed on the values of equity securities.
The Funds may be subject to various risks as described in the Funds’ prospectus. Some of these risks may include, but are not limited to, the following: allocation risk, acquired fund risk, equity risk, dividend-oriented stocks risk, value investing risk, foreign (non-U.S.) investment risk, emerging markets risk, market risk, issuer risk, interest rate risk, call risk, credit risk, high yield and distressed company risk, cash holdings risk, currency risk, real estate risk, liquidity risk, leveraging risk, issuer non-diversification risk, management risk, small-cap and mid-cap company risk, arbitrage risk, derivatives risk, mortgage-related and other asset-backed securities risk, short sale risk, convertible securities risk, commodity risk, tax risk and subsidiary risk. A complete
description of these risks is contained in the Funds’ prospectus. The Funds may use derivative instruments for hedging purposes or as part of an investment strategy. Use of these instruments may involve certain costs and risks such as liquidity risk, interest rate risk, market risk, credit risk, leverage risk, management risk and the risk that a Fund may not be able to close out a position when it would be most advantageous to do so. Certain derivative transactions may have a leveraging effect on a Fund. For example, a small investment in a derivative instrument may have a significant impact on a Fund’s exposure to interest rates, currency exchange rates or other investments. As a result, a relatively small price movement in a derivative instrument may cause an immediate and substantial loss or gain, which translates into heightened volatility in the Funds. A Fund may engage in such transactions regardless of whether the Fund owns the asset, instrument or components of the index underlying the derivative instrument. A Fund may invest a significant portion of its assets in these types of instruments. If it does, the Fund’s investment exposure could far exceed the value of its portfolio securities and its investment performance could be primarily dependent upon securities it does not own. Investing in foreign (non-U.S.) securities may entail risk due to foreign (non-U.S.) economic and political developments; this risk may be increased when investing in emerging markets.
The value of an equity security of an issuer that has paid dividends in the past may decrease if the issuer reduces or eliminates future payments to its shareholders. If the dividends or distributions received by a Fund decrease, the Fund may have less income to distribute to the Fund’s shareholders. In addition, during certain market conditions, the equity securities of issuers that have paid regular dividends or distributions may not be widely available or may be highly concentrated in particular sectors of the market. A Fund may invest a significant portion of its assets in value stocks. Value stocks may perform differently from other types of stocks and the market as a whole. 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.
The geographical classification of foreign (non-U.S.) securities in this report are classified by the country of incorporation of a holding. In certain instances, a security’s country of incorporation may be different from its country of economic exposure.
The Funds (or Acquired Funds) may invest in securities and instruments that are economically tied to Russia. Investments in Russia are subject to political, economic, legal, market and currency risks, as well as the risk that further economic sanctions may be imposed by the United States and/or other countries. Such sanctions—which may impact companies in
4 | PIMCO EQUITY SERIES |
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many sectors, including energy, financial services and defense, among others—may negatively impact a Fund’s performance and/or ability to achieve its investment objective. For example, certain transactions may be prohibited and/or existing investments may become illiquid (e.g., in the event that transacting in certain existing investments is prohibited), which could cause a Fund to sell other portfolio holdings at a disadvantageous time or price in order to meet shareholder redemptions.
On each individual Fund Summary page in this Shareholder Report, the Average Annual Total Return table and Cumulative Returns chart measure performance assuming that any dividend and capital gain distributions were reinvested. Class A shares are subject to an initial sales charge. A Contingent Deferred Sales Charge (“CDSC”) may be imposed in certain circumstances on Class A shares that are purchased without an initial sales charge and then redeemed during the first 18 months after purchase. The Cumulative Returns chart reflects only Institutional Class performance. Performance for Class P, Administrative
Class, Class D, Class A, Class C and Class R shares, if applicable, are typically lower than Institutional Class performance due to the lower expenses paid by Institutional Class shares. Performance shown is net of fees and expenses. A Fund’s total annual operating expense ratios on each individual Fund summary page are as of the currently effective prospectus, as supplemented to date. The Cumulative Returns chart assumes the initial investment of $1,000,000 was made at the end of
the month that the Institutional Class of the relevant Fund commenced operations. The minimum initial investment amount for Institutional Class, Class P and Administrative Class shares is $1,000,000. The minimum initial investment amount for Class A, Class C and Class D shares is $1,000. There is no minimum initial investment for Class R shares. Each Fund measures its performance against a broad-based securities market index (“benchmark index”). The benchmark index does not take into account fees, expenses, or taxes. A Fund’s past performance, before and after taxes, is not necessarily an indication of how the Fund will perform in the future.
The following table discloses the inception dates of each Fund and its respective share classes:
Fund Name | Fund Inception | Institutional Class | Class P | Administrative Class | Class D | Class A | Class C | Class R | ||||||||||||||||||||||||||
PIMCO Balanced Income Fund | 03/31/14 | 03/31/14 | 03/31/14 | — | 03/31/14 | 03/31/14 | 03/31/14 | — | ||||||||||||||||||||||||||
PIMCO Dividend and Income Builder Fund | 12/14/11 | 12/14/11 | 12/14/11 | — | 12/14/11 | 12/14/11 | 12/14/11 | 12/14/11 | ||||||||||||||||||||||||||
PIMCO Emerging Multi-Asset Fund | 04/12/11 | 04/12/11 | 04/12/11 | 04/19/11 | 04/12/11 | 04/12/11 | 04/12/11 | 04/12/11 | ||||||||||||||||||||||||||
PIMCO EqS® Emerging Markets Fund | 03/22/11 | 03/22/11 | 03/22/11 | 04/19/11 | 03/22/11 | 03/22/11 | 03/22/11 | 03/22/11 | ||||||||||||||||||||||||||
PIMCO EqS® Long/Short Fund | 04/20/12 | 04/20/12 | 04/30/12 | — | 04/30/12 | 04/30/12 | 04/30/12 | — | ||||||||||||||||||||||||||
PIMCO Global Dividend Fund | 12/14/11 | 12/14/11 | 12/14/11 | — | 12/14/11 | 12/14/11 | 12/14/11 | 12/14/11 | ||||||||||||||||||||||||||
PIMCO International Dividend Fund | 12/15/14 | 12/15/14 | 12/15/14 | — | 12/15/14 | 12/15/14 | 12/15/14 | — | ||||||||||||||||||||||||||
PIMCO U.S. Dividend Fund | 12/15/14 | 12/15/14 | 12/15/14 | — | 12/15/14 | 12/15/14 | 12/15/14 | — | ||||||||||||||||||||||||||
PIMCO EqS Pathfinder Fund® | 04/14/10 | 04/14/10 | 04/14/10 | — | 04/14/10 | 04/14/10 | 04/14/10 | 04/14/10 |
For periods prior to the inception date of the Class P, Administrative Class, Class D, Class A, Class C and Class R shares (if applicable), performance information shown is based on the performance of the Fund’s Institutional Class shares. The prior Institutional Class performance has been adjusted to reflect the distribution and/or service fees and other expenses paid by the Class P, Administrative Class, Class D, Class A, Class C and Class R shares, respectively.
An investment in a Fund is not a bank deposit and is not guaranteed or insured by the Federal Deposit Insurance Corporation (“FDIC”) or any other government agency. It is possible to lose money on investments in a Fund.
PIMCO has adopted written proxy voting policies and procedures (“Proxy Policy”) as required by Rule 206(4)-6 under the Investment Advisers Act of 1940, as amended. The Proxy Policy has been adopted by PIMCO Equity Series as the policies and procedures that PIMCO will use when voting proxies on behalf of a Fund. A description of the
policies and procedures that PIMCO uses to vote proxies relating to portfolio securities of a Fund, and information about how the Fund voted proxies relating to portfolio securities held during the most recent twelve-month period ended June 30th, are available without charge, upon request, by calling the Trust at (888) 87-PIMCO, on the Fund’s website at www.pimco.com, and on the Securities and Exchange Commission’s (“SEC”) website at www.sec.gov.
PIMCO Equity Series files a complete schedule of each Fund’s portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-Q. A copy of a Fund’s Form N-Q is available on the SEC’s website at www.sec.gov and may be reviewed and copied at the SEC’s Public Reference Room in Washington, D.C. A Fund’s Form N-Q will also be available without charge, upon request, by calling the Trust at (888) 87-PIMCO and on the Fund’s website at www.pimco.com. Information on the operation of the Public Reference Room may be obtained by calling 1-800-SEC-0330.
ANNUAL REPORT | JUNE 30, 2015 | 5 |
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Important Information About the Funds (Cont.)
PIMCO Balanced Income Fund
Top 10 Holdings1
Colony Capital, Inc. | 2.4% | |||||
Vodafone Group PLC | 2.4% | |||||
Lloyds Banking Group PLC | 2.1% | |||||
HSBC Holdings PLC | 2.0% | |||||
Intesa Sanpaolo SpA | 1.9% | |||||
Imperial Tobacco Group PLC | 1.8% | |||||
PG&E Corp. | 1.7% | |||||
AT&T, Inc. | 1.5% | |||||
Ameren Corp. | 1.5% | |||||
Roche Holding AG | 1.5% |
Geographic Breakdown1
United States | 48.7% | |||||
United Kingdom | 10.2% | |||||
Australia | 3.3% | |||||
Brazil | 3.0% | |||||
Netherlands | 2.7% | |||||
Hong Kong | 2.7% | |||||
Italy | 2.4% | |||||
France | 2.0% | |||||
Switzerland | 1.5% | |||||
Bermuda | 1.5% | |||||
Other | 9.1% |
Sector Breakdown1
Financials | 17.7% | |||||
Asset-Backed Securities | 10.5% | |||||
Utilities | 9.7% | |||||
Industrials | 7.9% | |||||
Telecommunication Services | 7.2% | |||||
Mortgage-Backed Securities | 6.9% | |||||
Consumer Discretionary | 5.3% | |||||
Health Care | 5.1% | |||||
Information Technology | 3.8% | |||||
Consumer Staples | 3.5% | |||||
Banking & Finance | 2.0% | |||||
Sovereign Issues | 2.0% | |||||
Bank Loan Obligations | 1.7% | |||||
Materials | 1.6% | |||||
Other | 2.4% |
PIMCO Dividend and Income Builder Fund
Top 10 Holdings1
Vodafone Group PLC | 3.6% | |||||
Colony Capital, Inc. | 3.4% | |||||
Lloyds Banking Group PLC | 3.2% | |||||
HSBC Holdings PLC | 3.0% | |||||
Intesa Sanpaolo SpA | 2.7% | |||||
PG&E Corp. | 2.6% | |||||
Imperial Tobacco Group PLC | 2.6% | |||||
AT&T, Inc. | 2.4% | |||||
Ameren Corp. | 2.3% | |||||
Prudential Financial, Inc. | 2.2% |
Geographic Breakdown1
United States | 44.8% | |||||
United Kingdom | 14.0% | |||||
Australia | 5.0% | |||||
Hong Kong | 3.9% | |||||
Italy | 3.6% | |||||
Netherlands | 3.2% | |||||
France | 3.1% | |||||
Switzerland | 2.1% | |||||
Bermuda | 2.0% | |||||
South Africa | 1.9% | |||||
Canada | 1.7% | |||||
Germany | 1.7% | |||||
Brazil | 1.6% | |||||
Other | 7.9% |
Sector Breakdown1
Financials | 26.6% | |||||
Utilities | 14.5% | |||||
Telecommunication Services | 10.9% | |||||
Industrials | 7.9% | |||||
Consumer Discretionary | 7.8% | |||||
Health Care | 7.5% | |||||
Information Technology | 5.9% | |||||
Consumer Staples | 5.4% | |||||
Mortgage-Backed Securities | 3.0% | |||||
Materials | 2.2% | |||||
Energy | 1.9% | |||||
Asset-Backed Securities | 1.6% | |||||
Other | 1.1% |
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PIMCO Emerging Multi-Asset Fund
Top Holdings1
PIMCO Emerging Local Bond Fund | 46.7% | |||||
PIMCO Emerging Markets Bond Fund | 23.9% |
PIMCO EqS® Emerging Markets Fund
Top Holdings1
PIMCO Short-Term Floating NAV Portfolio III | 72.6% |
Geographic Breakdown1
United States | 72.6% |
Sector Breakdown1
Mutual Funds | 72.6% |
PIMCO EqS® Long/Short Fund
Top 10 Holdings1
Google, Inc. ‘C’ | 6.4% | |||||
Time Warner, Inc. | 5.9% | |||||
Laboratory Corp. of America Holdings | 5.7% | |||||
KAR Auction Services, Inc. | 5.6% | |||||
DST Systems, Inc. | 5.4% | |||||
HealthSouth Corp. | 5.1% | |||||
Bank of New York Mellon Corp. | 4.6% | |||||
Nielsen NV | 4.1% | |||||
Community Health Systems, Inc. | 3.6% | |||||
Select Income REIT | 3.3% |
Sector Breakdown1
Consumer Discretionary | 25.1% | |||||
Health Care | 20.2% | |||||
Financials | 14.5% | |||||
Information Technology | 11.8% | |||||
Materials | 2.9% | |||||
Industrials | 5.6% | |||||
Consumer Staples | 1.8% | |||||
Telecommunication Services | 1.9% | |||||
Other | 1.1% |
PIMCO Global Dividend Fund
Top 10 Holdings1
Lloyds Banking Group PLC | 3.1% | |||||
Vodafone Group PLC | 3.0% | |||||
AT&T, Inc. | 2.9% | |||||
Intesa Sanpaolo SpA | 2.9% | |||||
Colony Capital, Inc. | 2.8% | |||||
PG&E Corp. | 2.8% | |||||
JPMorgan Chase & Co. | 2.5% | |||||
Blackstone Group LP | 2.5% | |||||
Prudential Financial, Inc. | 2.5% | |||||
China Mobile Ltd. | 2.5% |
Geographic Breakdown1
United States | 44.3% | |||||
United Kingdom | 10.0% | |||||
France | 5.9% | |||||
Hong Kong | 4.4% | |||||
Japan | 4.1% | |||||
Italy | 3.9% | |||||
Netherlands | 3.6% | |||||
Brazil | 2.9% | |||||
Switzerland | 2.4% | |||||
Australia | 2.1% | |||||
Germany | 2.0% | |||||
Bermuda | 1.9% | |||||
Canada | 1.7% | |||||
Spain | 1.6% | |||||
Other | 5.9% |
Sector Breakdown1
Financials | 24.6% | |||||
Utilities | 14.4% | |||||
Telecommunication Services | 10.5% | |||||
Information Technology | 10.1% | |||||
Consumer Discretionary | 9.0% | |||||
Consumer Staples | 8.0% | |||||
Health Care | 7.0% | |||||
Industrials | 6.0% | |||||
Materials | 4.8% | |||||
Energy | 2.2% |
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Important Information About the Funds (Cont.)
PIMCO International Dividend Fund
Top 10 Holdings1
Lloyds Banking Group PLC | 4.1% | |||||
Vodafone Group PLC | 4.0% | |||||
Imperial Tobacco Group PLC | 4.0% | |||||
HSBC Holdings PLC | 4.0% | |||||
Intesa Sanpaolo SpA | 3.1% | |||||
Golar LNG Partners LP | 3.1% | |||||
Electricite de France S.A. | 3.0% | |||||
Li & Fung Ltd. | 2.9% | |||||
Suez Environnement Co. | 2.9% | |||||
MTN Group Ltd. | 2.7% |
Geographic Breakdown1
United Kingdom | 18.2% | |||||
Australia | 9.9% | |||||
United States | 8.5% | |||||
France | 7.4% | |||||
Japan | 6.7% | |||||
Hong Kong | 6.0% | |||||
Italy | 4.5% | |||||
Brazil | 3.9% | |||||
Netherlands | 3.6% | |||||
China | 3.2% | |||||
Bermuda | 3.1% | |||||
South Africa | 2.7% | |||||
Taiwan | 2.7% | |||||
Canada | 2.4% | |||||
Switzerland | 2.0% | |||||
Israel | 2.1% | |||||
Germany | 2.0% | |||||
Turkey | 1.6% | |||||
Luxembourg | 1.6% | |||||
Thailand | 1.5% | |||||
Spain | 1.5% | |||||
Mexico | 1.5% | |||||
Other | 2.2% |
Sector Breakdown1
Financials | 18.4% | |||||
Telecommunication Services | 13.9% | |||||
Consumer Staples | 13.1% | |||||
Utilities | 12.8% | |||||
Industrials | 11.7% | |||||
Consumer Discretionary | 10.1% | |||||
Health Care | 9.7% | |||||
Information Technology | 6.1% | |||||
Materials | 2.4% | |||||
Other | 0.5% |
PIMCO U.S. Dividend Fund
Top 10 Holdings1
AT&T, Inc. | 5.1% | |||||
QUALCOMM, Inc. | 4.8% | |||||
Nielsen NV | 4.8% | |||||
Colony Capital, Inc. | 4.8% | |||||
JPMorgan Chase & Co. | 4.4% | |||||
Prudential Financial, Inc. | 4.3% | |||||
Symantec Corp. | 4.1% | |||||
Pfizer, Inc. | 4.1% | |||||
Merck & Co., Inc. | 4.1% | |||||
PG&E Corp. | 3.8% |
Geographic Breakdown1
United States | 92.5% | |||||
Switzerland | 3.0% | |||||
Bermuda | 2.8% | |||||
Other | 1.4% |
Sector Breakdown1
Financials | 23.5% | |||||
Information Technology | 17.6% | |||||
Health Care | 13.3% | |||||
Consumer Discretionary | 13.0% | |||||
Materials | 10.6% | |||||
Industrials | 7.3% | |||||
Utilities | 6.4% | |||||
Telecommunication Services | 5.1% | |||||
Energy | 3.0% |
PIMCO EqS Pathfinder Fund®
Top Holdings1
PIMCO Short-Term Floating NAV Portfolio III | 93.2% |
Geographic Breakdown1
United States | 93.2% |
Sector Breakdown1
Mutual Funds | 93.2% |
1 | % of Investments, at value as of 06/30/2015. Securities sold short, financial derivative instruments and short-term instruments (with the exception of Central Funds used for cash management purposes), if any, are excluded from the Top Holdings, Geographic and Sector Breakdown tables. |
8 | PIMCO EQUITY SERIES |
Table of Contents
Institutional Class - PBITX | Class A - PBIAX | |
Class P - PBIEX | Class C - PBICX | |
Class D - PBIDX |
Cumulative Returns Through June 30, 2015
Average Annual Total Return for the period ended June 30, 2015 | ||||||||||
1 Year | Fund Inception | |||||||||
![]() | PIMCO Balanced Income Fund Institutional Class | 1.35% | 3.66% | |||||||
PIMCO Balanced Income Fund Class P | 1.24% | 3.55% | ||||||||
PIMCO Balanced Income Fund Class D | 0.89% | 3.30% | ||||||||
PIMCO Balanced Income Fund Class A | 0.88% | 3.30% | ||||||||
PIMCO Balanced Income Fund Class A (adjusted) | -4.69% | -1.26% | ||||||||
PIMCO Balanced Income Fund Class C | 0.13% | 2.53% | ||||||||
PIMCO Balanced Income Fund Class C (adjusted) | -0.85% | 2.53% | ||||||||
![]() | MSCI All Country World Index± | 0.71% | 4.61% | |||||||
![]() | 50% MSCI All Country World Index/50% Barclays Global Aggregate USD Hedged±± | 1.93% | 4.40% |
All Fund returns are net of fees and expenses.
± 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 Index consists of 46 country indices comprising 23 developed and 23 emerging market country indices. It is not possible to invest directly in an unmanaged index.
±± The benchmark is a blend of 50% MSCI All Country World Index/50% Barclays Global Aggregate USD Hedged. 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 Index consists of 46 country indices comprising 23 developed and 23 emerging market country indices. Barclays 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. It is not possible to invest directly in an unmanaged index.
Performance quoted represents past performance. Past performance is not a guarantee or a reliable indicator of future results. Current performance may be lower or higher than performance shown. Investment return and the principal value of an investment will fluctuate. Shares may be worth more or less than original cost when redeemed. Returns shown do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. The adjusted returns take into account the maximum sales charge of 5.50% on Class A shares and 1.00% CDSC on Class C shares. The Fund’s total annual operating expense ratio as stated in the Fund’s current prospectus, as supplemented to date, is 0.95% for the Institutional Class shares, 1.05% for the Class P shares, 1.30% for the Class D shares, 1.30% for the Class A shares, and 2.05% for the Class C shares. Details regarding any Fund’s operating expenses can be found in the Fund’s prospectus. For performance current to the most recent month-end, visit www.pimco.com.
Investment Objective and Strategy Overview
» | The PIMCO Balanced Income Fund seeks to maximize current income while providing long-term capital appreciation by investing under normal circumstances in a diversified portfolio of income-producing equity and fixed income securities, each of which may be represented by forwards or derivatives such as options, futures contracts, or swap agreements. The Fund will typically invest at least 25% of its net assets in equity and equity related securities and at least 25% of its net assets in fixed income securities. The Fund’s investments in equity and equity-related securities include common and preferred stock (and securities convertible into, or that PIMCO expects to be exchanged for, common or preferred stock), as well as securities issued by real estate investment trusts, master limited partnerships and other equity trusts and depositary receipts. |
Portfolio Insights
» | Over the reporting period, the Fund’s Institutional Class shares returned 1.35% after fees and expenses, outperforming the Fund’s primary benchmark index, the MSCI All Country World Index, which returned 0.71%. The Fund underperformed against the blended benchmark (50% MSCI All Country World Index /50% Barclays Global Aggregate USD Hedged), which returned 1.93% over the same period. |
» | During the reporting period, the Fund paid ordinary quarterly dividends totaling 30 cents per share and a one-time supplemental dividend of 2 cents per share on its Institutional Class shares. The dividend per share was slightly lower for the other share classes to account for varying class specific expenses. |
» | From a sector perspective, total security selection was negative over the reporting period. Specifically, security selection within the utilities, health care and information technology sectors detracted the most from performance. An underweight to an outperforming health care sector, along with an overweight to an underperforming utilities sector, further detracted from returns. |
» | Security selection within the telecommunication services and financials sectors added to performance. |
» | Overall country selection was negative for performance. Brazil, France and the United States were the largest detractors from performance, while the United Kingdom and Italy were the top contributors to performance. |
» | The top five contributors to excess return over the reporting period were Target Corporation, Kohl’s Corporation, Intesa Sanpaolo, ICAP and Ryman Hospitality Properties. The bottom five detractors from returns were Prosafe, SABESP, Golar LNG Partners, Tronox and Arteris. |
» | Within the fixed income sleeve of the Fund, exposure to securitized debt, primarily in non-agency mortgage-backed securities, benefited performance. |
ANNUAL REPORT | JUNE 30, 2015 | 9 |
Table of Contents
PIMCO Dividend and Income Builder Fund
Institutional Class - PQIIX | Class A - PQIZX | |
Class P - PQIPX | Class C - PQICX | |
Class D - PQIDX | Class R - PQIBX |
Cumulative Returns Through June 30, 2015
Average Annual Total Return for the period ended June 30, 2015 | ||||||||||
1 Year | Fund Inception (12/14/11) | |||||||||
![]() | PIMCO Dividend and Income Builder Fund Institutional Class | -0.12% | 10.94% | |||||||
PIMCO Dividend and Income Builder Fund Class P | -0.22% | 10.87% | ||||||||
PIMCO Dividend and Income Builder Fund Class D | -0.47% | 10.59% | ||||||||
PIMCO Dividend and Income Builder Fund Class A | -0.49% | 10.59% | ||||||||
PIMCO Dividend and Income Builder Fund Class A (adjusted) | -5.94% | 8.84% | ||||||||
PIMCO Dividend and Income Builder Fund Class C | -1.23% | 9.76% | ||||||||
PIMCO Dividend and Income Builder Fund Class C (adjusted) | -2.18% | 9.76% | ||||||||
PIMCO Dividend and Income Builder Fund Class R | -0.72% | 10.33% | ||||||||
![]() | MSCI All Country World Index± | 0.71% | 13.76% | |||||||
![]() | 75% MSCI All Country World Index/25% Barclays Global Aggregate USD Unhedged±± | -1.24% | 10.26% |
All Fund returns are net of fees and expenses.
± 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 Index consists of 46 country indices comprising 23 developed and 23 emerging market country indices. It is not possible to invest directly in an unmanaged index.
±± The benchmark is a blend of 75% MSCI All Country World Index/25% Barclays Global Aggregate USD Unhedged. 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 Index consists of 46 country indices comprising 23 developed and 23 emerging market country indices. Barclays Global Aggregate USD Unhedged 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. It is not possible to invest directly in an unmanaged index.
Performance quoted represents past performance. Past performance is not a guarantee or a reliable indicator of future results. Current performance may be lower or higher than performance shown. Investment return and the principal value of an investment will fluctuate. Shares may be worth more or less than original cost when redeemed. Returns shown do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. The adjusted returns take into account the maximum sales charge of 5.50% on Class A shares and 1.00% CDSC on Class C shares. The Fund’s total annual operating expense ratio as stated in the Fund’s current prospectus, as supplemented to date, is 1.22% for the Institutional Class shares, 1.32% for the Class P shares, 1.57% for the Class D shares, 1.57% for the Class A shares, 2.32% for the Class C shares and 1.82% for the Class R shares. Details regarding any Fund’s operating expenses can be found in the Fund’s prospectus. For performance current to the most recent month-end, visit www.pimco.com.
Investment Objective and Strategy Overview
» | The PIMCO Dividend and Income Builder Fund seeks to provide current income that exceeds the average yield on global stocks, and to provide a growing stream of income per share over time, with a secondary objective to seek to provide long-term capital appreciation, by investing under normal circumstances at least 80% of its assets in a diversified portfolio of income-producing investments, and will typically invest at least 50% of its assets in equity and equity-related securities. The Fund’s investments in equity and equity-related securities include common and preferred stock (and securities convertible into, or that PIMCO expects to be exchanged for, common or preferred stock), as well as securities issued by real estate investment trusts, master limited partnerships and other equity trusts and depositary receipts. |
Portfolio Insights
» | Over the reporting period, the Fund’s Institutional Class shares returned -0.12% after fees and expenses, underperforming the Fund’s benchmark index, the MSCI All Country World Index, which returned 0.71%, and outperforming the blended benchmark (75% MSCI All Country World Index/25% Barclays Global Aggregate USD Unhedged), which returned -1.24%. |
» | During the reporting period, the Fund paid ordinary quarterly dividends totaling 46 cents per share on its Institutional Class shares. It did not pay out a one-time supplemental dividend. The dividend per share was slightly lower for the other share classes to account for varying class specific expenses. |
» | From a sector perspective, total security selection was negative for performance over the reporting period. Specifically, security selection within the utilities, health care and information technology sectors detracted the most from performance. An overweight to an underperforming utilities sector, along with an underweight to an outperforming health care sector, also detracted from returns. |
» | Security selection within the telecommunication services and financials sectors positively impacted performance, as did an underweight to an underperforming energy sector. |
» | Overall country selection negatively impacted performance over the reporting period. Brazil, Norway and France were the largest detractors from performance, while the United Kingdom and Italy positively impacted performance. |
» | The top five contributors to excess returns over the reporting period were Target Corporation, Kohl’s Corporation, ICAP, Intesa Sanpaolo and Ryman Hospitality Properties. The bottom five detractors from returns were SABESP, Golar LNG Partners, Arteris, Tronox and Prosafe. |
» | Within the fixed income sleeve of the Fund, exposure to securitized debt, primarily in non-agency mortgage backed securities, benefited performance over the reporting period. |
10 | PIMCO EQUITY SERIES |
Table of Contents
PIMCO Emerging Multi-Asset Fund
Institutional Class - PEAWX | Class A - PEAAX | |
Class P - PEAQX | Class C - PEACX | |
Administrative Class - PEAMX | Class R - PEARX | |
Class D - PEAEX |
Cumulative Returns Through June 30, 2015
Average Annual Total Return for the period ended June 30, 2015 | ||||||||||
1 Year | Fund Inception (04/12/11) | |||||||||
![]() | PIMCO Emerging Multi-Asset Fund Institutional Class | -5.33% | -2.28% | |||||||
PIMCO Emerging Multi-Asset Fund Class P | -5.31% | -2.35% | ||||||||
PIMCO Emerging Multi-Asset Fund Administrative Class | -5.49% | -2.54% | ||||||||
PIMCO Emerging Multi-Asset Fund Class D | -5.71% | -2.61% | ||||||||
PIMCO Emerging Multi-Asset Fund Class A | -5.61% | -2.60% | ||||||||
PIMCO Emerging Multi-Asset Fund Class A (adjusted) | -10.81% | -3.90% | ||||||||
PIMCO Emerging Multi-Asset Fund Class C | -6.34% | -3.31% | ||||||||
PIMCO Emerging Multi-Asset Fund Class C (adjusted) | -7.24% | -3.31% | ||||||||
PIMCO Emerging Multi-Asset Fund Class R | -5.92% | -2.85% | ||||||||
![]() | MSCI Emerging Markets Index (Net Dividends in USD)± | -5.12% | -1.93% | |||||||
![]() | 50% MSCI Emerging Markets Index (Net Dividends in USD), 25% JPMorgan Government Bond Index-Emerging Markets Global Diversified Index (Unhedged), 25% JPMorgan Emerging Markets Bond Index (EMBI) Global** | -6.85% | -0.04% |
All Fund returns are net of fees and expenses.
± The MSCI Emerging Markets Index (Net Dividends in USD) is a free float-adjusted market capitalization index that is designed to measure equity market performance of emerging markets. It is not possible to invest directly in an unmanaged index.
±± The benchmark is a blend of 50% MSCI Emerging Markets Index (Net Dividends in USD), 25% JPMorgan Government Bond Index-Emerging Markets Global Diversified Index (Unhedged), 25% JPMorgan Emerging Markets Bond Index (EMBI) Global. MSCI Emerging Markets Index is a free float-adjusted market capitalization index that is designed to measure equity market performance of emerging markets. JPMorgan Government Bond Index-Emerging Markets Global Diversified Index (Unhedged) is a comprehensive global local emerging markets index, and consists of regularly traded, liquid fixed-rate, domestic currency government bonds to which international investors can gain exposure. JPMorgan Emerging Markets Bond Index (EMBI) Global tracks total returns for United States Dollar denominated debt instruments issued by emerging market sovereign and quasi-sovereign entities: Brady bonds, loans, Eurobonds and local market instruments. It is not possible to invest directly in an unmanaged index.
Performance quoted represents past performance. Past performance is not a guarantee or a reliable indicator of future results. Current performance may be lower or higher than performance shown. Investment return and the principal value of an investment will fluctuate. Shares may be worth more or less than original cost when redeemed. Returns shown do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. The adjusted returns take into account the maximum sales charge of 5.50% on Class A shares and 1.00% CDSC on Class C shares. The Fund’s total annual operating expense ratio as stated in the Fund’s current prospectus, as supplemented to date, is 2.43% for the Institutional Class shares, 2.53% for the Class P shares, 2.68% for the Administrative Class shares, 2.78% for the Class D shares, 2.78% for the Class A shares, 3.53% for the Class C shares, and 3.03% for the Class R shares. Details regarding any Fund’s operating expenses can be found in the Fund’s prospectus. For performance current to the most recent month-end, visit www.pimco.com.
Investment Objective and Strategy Overview
» | The PIMCO Emerging Multi-Asset Fund seeks maximum total return, consistent with prudent investment management, by investing under normal circumstances at least 80% of its assets in investments economically tied to emerging market countries. The Fund will typically invest 20% to 80% of its total assets in equity-related instruments (including investments in common stock, preferred stock, and equity-related Underlying PIMCO Funds or Acquired Funds). The Fund is designed to provide concurrent exposure to a broad spectrum of emerging market asset classes, such as equity, fixed income and currencies, and other investments, including commodities. |
Portfolio Insights
» | Over the reporting period, the Fund’s Institutional Class shares returned -5.33% after fees and expenses, while the Fund’s primary benchmark index, the MSCI Emerging Markets Index (Net Dividends in USD) returned -5.12%. The Fund’s secondary benchmark index, a blended index consisting of 50% MSCI Emerging Markets Index (Net Dividends in USD)/25% JPMorgan Government Bond Index-Emerging Markets Global Diversified Index (Unhedged)/25% JPMorgan Emerging Markets Bond Index (EMBI) Global) returned -6.85% during the reporting period. |
» | An overweight to emerging markets equities throughout most of the reporting period, expressed via the PIMCO EqS® Emerging Markets Fund, which is benchmarked to the MSCI Emerging Markets Index, contributed to relative performance as the MSCI Emerging Markets Index outperformed the Fund’s secondary benchmark index. |
» | Exposure to the PIMCO Emerging Markets Bond Fund detracted from relative performance as this Underlying PIMCO Fund underperformed its primary benchmark, the JPMorgan Emerging Markets Bond Index (EMBI) Global, over the reporting period. |
» | Exposure to the PIMCO Emerging Markets Corporate Bond Fund throughout most of the reporting period detracted from performance as this Underlying PIMCO Fund posted negative absolute returns. |
ANNUAL REPORT | JUNE 30, 2015 | 11 |
Table of Contents
PIMCO EqS® Emerging Markets Fund
Institutional Class - PEQWX | Class A - PEQAX | |
Class P - PEQQX | Class C - PEQEX | |
Administrative Class - PEQTX | Class R - PEQHX | |
Class D - PEQDX |
Cumulative Returns Through June 30, 2015
Average Annual Total Return for the period ended June 30, 2015 | ||||||||||
1 Year | Fund Inception | |||||||||
![]() | PIMCO EqS® Emerging Markets Fund Institutional Class | -4.53% | -3.06% | |||||||
PIMCO EqS® Emerging Markets Fund Class P | -4.32% | -3.08% | ||||||||
PIMCO EqS® Emerging Markets Fund Administrative Class | -4.56% | -3.26% | ||||||||
PIMCO EqS® Emerging Markets Fund Class D | -4.58% | -3.35% | ||||||||
PIMCO EqS® Emerging Markets Fund Class A | -4.69% | -3.39% | ||||||||
PIMCO EqS® Emerging Markets Fund Class A (adjusted) | -9.92% | -4.65% | ||||||||
PIMCO EqS® Emerging Markets Fund Class C | -5.35% | -4.05% | ||||||||
PIMCO EqS® Emerging Markets Fund Class C (adjusted) | -6.29% | -4.05% | ||||||||
PIMCO EqS® Emerging Markets Fund Class R | -4.82% | -3.57% | ||||||||
![]() | MSCI Emerging Markets Index (Net Dividends in USD)± | -5.12% | -0.72% |
All Fund returns are net of fees and expenses.
± The MSCI Emerging Markets Index (Net Dividends in USD) is a free float-adjusted market capitalization index that is designed to measure equity market performance of emerging markets. It is not possible to invest directly in an unmanaged index.
Performance quoted represents past performance. Past performance is not a guarantee or a reliable indicator of future results. Current performance may be lower or higher than performance shown. Investment return and the principal value of an investment will fluctuate. Shares may be worth more or less than original cost when redeemed. Returns shown do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. The adjusted returns take into account the maximum sales charge of 5.50% on Class A shares and 1.00% CDSC on Class C shares. The Fund’s total annual operating expense ratio as stated in the Fund’s current prospectus, as supplemented to date, is 1.45% for the Institutional Class shares, 1.55% for the Class P shares, 1.70% for the Administrative Class shares, 1.80% for the Class D shares, 1.80% for the Class A shares, 2.55% for the Class C shares and 2.05% for the Class R shares. Details regarding any Fund’s operating expenses can be found in the Fund’s prospectus. For performance current to the most recent month-end, visit www.pimco.com.
Investment Objective and Strategy Overview
» | The PIMCO EqS® Emerging Markets Fund seeks capital appreciation by investing under normal circumstances at least 80% of its assets in a diversified portfolio of investments economically tied to emerging market countries. The Fund will invest a substantial portion of its assets in equity and equity-related securities, including common and preferred stock (and securities convertible into, or that PIMCO expects to be exchanged for, common or preferred stock). The Fund may also invest in fixed income securities, including debt securities issued by both corporate and government issuers. The Fund may invest in commodity related instruments, including exchange-traded funds, futures and other investment companies. The Fund may also invest in derivative instruments, such as options, futures contracts or swap agreements. |
Portfolio Insights
» | The Fund’s Institutional Class shares returned -4.53% after fees and expenses, outperforming the Fund’s benchmark index, the MSCI Emerging Markets Index (Net Dividends in USD), which returned -5.12% during the reporting period. |
» | Security selection within the energy and industrials sectors detracted from performance over the reporting period. |
» | Positive security selection within the information technology, consumer discretionary and consumer staples sectors added to performance over the reporting period. |
» | From a country perspective, exposure to Russia and Greece detracted the most from performance over the reporting period, while security selection within India mitigated losses. Additionally, an overweight to an outperforming Chinese market added to returns. |
» | The top five contributors to excess returns over the reporting period were Alibaba Group Holdings, China Construction Bank, Kweichow Moutai, AIA Group and Axis Bank. The bottom five detractors from returns were Eurobank Ergasias, Bashneft, China High Precision Automation Group, SPT Energy Group and a mini futures contract on the MSCI EM Index. |
12 | PIMCO EQUITY SERIES |
Table of Contents
Institutional Class - PMHIX | Class A - PMHAX | |
Class P - PMHBX | Class C - PMHCX | |
Class D - PMHDX |
Cumulative Returns Through June 30, 2015
Average Annual Total Return for the period ended June 30, 2015* | ||||||||||||||||||
1 Year | 5 Year | 10 Year | Fund Inception (01/01/03) | |||||||||||||||
![]() | PIMCO EqS® Long/Short Fund Institutional Class | 1.74% | 6.36% | 9.42% | 12.46% | |||||||||||||
PIMCO EqS® Long/Short Fund Class P | 1.66% | 6.31% | 9.39% | 12.44% | ||||||||||||||
PIMCO EqS® Long/Short Fund Class D | 1.41% | 6.12% | 9.29% | 12.36% | ||||||||||||||
PIMCO EqS® Long/Short Fund Class A | 1.41% | 6.12% | 9.29% | 12.36% | ||||||||||||||
PIMCO EqS® Long/Short Fund Class A (adjusted) | -4.18% | 4.93% | 8.68% | 11.85% | ||||||||||||||
PIMCO EqS® Long/Short Fund Class C | 0.66% | 5.61% | 9.03% | 12.14% | ||||||||||||||
PIMCO EqS® Long/Short Fund Class C (adjusted) | -0.34% | 5.61% | 9.03% | 12.14% | ||||||||||||||
![]() | 3 Month USD LIBOR Index± | 0.25% | 0.33% | 1.86% | 1.82% |
All Fund returns are net of fees and expenses.
± The 3 Month USD LIBOR (London Interbank Offered Rate) Index is an average interest rate, determined by the ICE Benchmark Administration, that banks charge one another for the use of short-term money (3 months) in England’s Eurodollar market. It is not possible to invest in an unmanaged index.
Performance quoted represents past performance. Past performance is not a guarantee or a reliable indicator of future results. Current performance may be lower or higher than performance shown. Investment return and the principal value of an investment will fluctuate. Shares may be worth more or less than original cost when redeemed. Returns shown do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. The adjusted returns take into account the maximum sales charge of 5.50% on Class A shares and 1.00% CDSC on Class C shares. Adjusted returns shown for the periods since January 1, 2003, the date the Fund began operations as a partnership, take into account the maximum sales charge for Class A and Class C shares, respectively. Returns shown for Class C shares are shown with and without the 1.00% CDSC for the one year period only. The Fund’s total annual operating expense ratio as stated in the Fund’s current prospectus, as supplemented to date, is 2.03% for the Institutional Class shares, 2.13% for the Class P shares, 2.38% for the Class D shares, 2.38% for the Class A shares, and 3.13% for the Class C shares. Details regarding any Fund’s operating expenses can be found in the Fund’s prospectus. For performance current to the most recent month-end, visit www.pimco.com.
* For periods prior to April 20, 2012, the Fund’s performance reflects the performance when the Fund was a partnership, net of actual fees and expenses charged to individual partnership accounts in the aggregate. If the performance had been restated to reflect the applicable fees and expenses of each share class, the performance may have been higher or lower. The Fund began operations as a partnership on January 1, 2003 and, on April 20, 2012, was reorganized into a newly-formed fund that was registered as an investment company under the Investment Company Act of 1940. Prior to the reorganization, the Fund had an investment objective, investment strategies, investment guidelines, and restrictions that were substantially similar to those currently applicable to the Fund; however, the Fund was not registered as an investment company under the Investment Company Act of 1940 and was not subject to its requirements or requirements imposed by the Internal Revenue Code of 1986 which, if applicable, may have adversely affected its performance. The performance of Class P, D, A and C shares for the period from April 20, 2012 to April 30, 2012 is based on the performance of the Institutional Class shares of the Fund adjusted to reflect the fees and expenses of Class P, D, A and C shares (as applicable). The performance of each class of shares will differ as a result of the different levels of fees and expenses applicable to each class of shares.
Investment Objective and Strategy Overview
» | The PIMCO EqS® Long/Short Fund seeks long-term capital appreciation by investing under normal circumstances in long and short positions of equity and equity-related securities, including common and preferred stock (and securities convertible into, or that PIMCO expects to be exchanged for, common or preferred stock), utilizing a fundamental investing style that integrates bottom-up and top-down research. The Fund will normally invest a substantial portion of its assets in equity and equity-related securities. The Fund may also invest in fixed income securities of varying maturities, cash and cash equivalents. |
Portfolio Insights
» | The Fund’s Institutional Class shares returned 1.74% after fees and expenses, outperforming the Fund’s benchmark index, the 3-Month USD LIBOR Index, which returned 0.25% during the reporting period. |
» | The Fund’s long equity positions contributed to absolute returns as prices on these securities generally increased during the reporting period. |
» | The Fund’s long, high concentration position in American Realty Capital Properties was the largest detractor from absolute returns as the security suffered a large loss during the reporting period. |
» | Over the reporting period, the Fund increased its gross short exposure from 4.76% to 22.59% and increased its gross long exposure from 65.02% to 78.24%, decreasing the overall net equity exposure from 60.26% to 55.65% of net assets. |
» | The Fund’s cash and currency positions in aggregate contributed positively to Fund performance. |
ANNUAL REPORT | JUNE 30, 2015 | 13 |
Table of Contents
Institutional Class - PQDIX | Class A - PQDAX | |
Class P - PQDPX | Class C - PQDCX | |
Class D - PQDDX | Class R - PQDRX |
Cumulative Returns Through June 30, 2015
Average Annual Total Return for the period ended June 30, 2015 | ||||||||||
1 Year | Fund Inception (12/14/11) | |||||||||
![]() | PIMCO Global Dividend Fund Institutional Class | -0.43% | 11.55% | |||||||
PIMCO Global Dividend Fund Class P | -0.48% | 11.49% | ||||||||
PIMCO Global Dividend Fund Class D | -0.66% | 11.23% | ||||||||
PIMCO Global Dividend Fund Class A | -0.74% | 11.23% | ||||||||
PIMCO Global Dividend Fund Class A (adjusted) | -6.20% | 9.47% | ||||||||
PIMCO Global Dividend Fund Class C | -1.44% | 10.36% | ||||||||
PIMCO Global Dividend Fund Class C (adjusted) | -2.02% | 10.36% | ||||||||
PIMCO Global Dividend Fund Class R | -1.00% | 10.94% | ||||||||
![]() | MSCI All Country World Index± | 0.71% | 13.76% |
All Fund returns are net of fees and expenses.
± 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 Index consists of 46 country indices comprising 23 developed and 23 emerging market country indices. It is not possible to invest directly in an unmanaged index.
Performance quoted represents past performance. Past performance is not a guarantee or a reliable indicator of future results. Current performance may be lower or higher than performance shown. Investment return and the principal value of an investment will fluctuate. Shares may be worth more or less than original cost when redeemed. Returns shown do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. The adjusted returns take into account the maximum sales charge of 5.50% on Class A shares and 1.00% CDSC on Class C shares. The Fund’s total annual operating expense ratio as stated in the Fund’s current prospectus, as supplemented to date, is 1.25% for the Institutional Class shares, 1.35% for the Class P shares, 1.60% for the Class D shares, 1.60% for the Class A shares, 2.35% for the Class C shares and 1.85% for the Class R shares. Details regarding any Fund’s operating expenses can be found in the Fund’s prospectus. For performance current to the most recent month-end, visit www.pimco.com.
Investment Objective and Strategy Overview
» | The PIMCO Global Dividend Fund (formerly the PIMCO EqS® Dividend Fund) seeks to provide current income that exceeds the average yield on global stocks, and as a secondary objective, seeks to provide long-term capital appreciation, by investing under normal circumstances at least 75% of its assets in equity and equity-related securities, including common and preferred stock (and securities convertible into, or that PIMCO expects to be exchanged for, common or preferred stock), as well as securities issued by real estate investment trusts, master limited partnerships and other equity trusts and depositary receipts. |
Portfolio Insights
» | Over the reporting period, the Fund’s Institutional Class shares returned -0.43% after fees and expenses, underperforming its benchmark index, the MSCI All Country World Index, which returned 0.71%. |
» | During the reporting period, the Fund paid ordinary quarterly dividends totaling 26 cents per share on its Institutional Class shares. It did not pay out a one-time supplemental dividend. The dividend per share was slightly lower for the other share classes to account for varying class specific expenses. |
» | From a sector perspective, total security selection detracted from performance over the reporting period. Specifically, security selection within the information technology, materials and energy sectors detracted the most from performance. An underweight to an outperforming health care sector, along with an overweight to an underperforming utilities sector, further detracted from returns. |
» | Positive security selection within the financials and industrials sectors added to returns. |
» | Overall country selection was negative. Positioning with respect to Brazil, France and the United States were the largest detractors, while positioning in the United Kingdom and Italy were the top contributors to performance. |
» | The top five contributors to excess returns over the reporting period were Target Corporation, Kohl’s Corporation, Intesa Sanpaolo, ICAP and Blackstone Group. The bottom five detractors from returns were LinnCo, Prosafe, Cia de Saneamento Basico do Estado de SP, Tronox and Arteris. |
» | The Fund’s underweight to both the Japanese yen and the euro over the reporting period contributed positively to returns, as both currencies depreciated relative to the U.S. dollar. |
14 | PIMCO EQUITY SERIES |
Table of Contents
PIMCO International Dividend Fund
Institutional Class - PVIIX | Class A - PVIAX | |
Class P - PVIPX | Class C - PVICX | |
Class D - PVIDX |
Cumulative Returns Through June 30, 2015
Cumulative Total Return for the period ended June 30, 2015 | ||||||
Fund Inception | ||||||
PIMCO International Dividend Fund Institutional Class | 6.53% | |||||
PIMCO International Dividend Fund Class P | 6.48% | |||||
PIMCO International Dividend Fund Class D | 6.33% | |||||
PIMCO International Dividend Fund Class A | 6.44% | |||||
PIMCO International Dividend Fund Class A (Adjusted) | 0.60% | |||||
PIMCO International Dividend Fund Class C | 5.91% | |||||
PIMCO International Dividend Fund Class C (Adjusted) | 4.91% | |||||
MSCI All Country World ex US Index± | 7.39% |
All Fund returns are net of fees and expenses.
± The MSCI All Country World ex US 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 Index consists of 45 country indices comprising 22 developed and 23 emerging market country indices. It is not possible to invest directly in an unmanaged index.
Performance quoted represents past performance. Past performance is not a guarantee or a reliable indicator of future results. Current performance may be lower or higher than performance shown. Investment return and the principal value of an investment will fluctuate. Shares may be worth more or less than original cost when redeemed. Returns shown do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. The adjusted returns take into account the maximum sales charge of 5.50% on Class A shares and 1.00% CDSC on Class C shares. The Fund’s total annual operating expense ratio as stated in the Fund’s current prospectus, as supplemented to date, is 1.06% for the Institutional Class shares, 1.16% for the Class P shares, 1.41% for the Class D shares, 1.41% for the Class A shares, and 2.16% for the Class C shares. Details regarding any Fund’s operating expenses can be found in the Fund’s prospectus. For performance current to the most recent month-end, visit www.pimco.com.
Investment Objective and Strategy Overview
» | The PIMCO International Dividend Fund seeks to provide current income that exceeds the average yield on international stocks, while providing long-term capital appreciation, by investing in an international-focused diversified portfolio of dividend-paying stocks that have an attractive yield, a growing dividend, and long-term capital appreciation. The Fund will invest primarily in equity and equity-related securities that are economically tied to developed and emerging markets outside the United States, including common and preferred stock (and securities convertible into, or that PIMCO expects to be exchanged for, common or preferred stock), as well as securities issued by real estate investment trusts, master limited partnerships and other equity trusts and depositary receipts. |
Portfolio Insights
» | The Fund commenced operations on December 15, 2014. |
» | Since inception of the Fund through the end of the reporting period, the Fund’s Institutional Class shares returned 6.53% after fees and expenses, underperforming its benchmark index, the MSCI All Country World ex-US Index, which returned 7.39%. |
» | During the reporting period, the Fund paid ordinary quarterly dividends totaling 16 cents per share on its Institutional Class shares. It did not pay out a one-time supplemental dividend. The dividend per share was slightly lower for the other share classes to account for varying class specific expenses. |
» | From a sector perspective, total allocation and security selection negatively impacted performance over the reporting period. Specifically, security selection within the utilities, consumer discretionary and energy sectors detracted the most from performance. An overweight to an underperforming utilities sector further detracted from returns. |
» | Positive security selection within the financials, telecommunication services and materials sectors added to performance. |
» | From a country perspective, Brazil, China, France and Hong Kong positioning detracted the most from performance while holdings within the United Kingdom and Australia mitigated losses. |
» | The top five contributors to excess returns over the reporting period were Nippon Telegraph and Telephone, Euronext, Regus, Iluka Resources and ICAP. The bottom five detractors from returns were Arteris, Want Want China Holdings, Golar LNG Partners, Electricite de France and Li & Fung. |
ANNUAL REPORT | JUNE 30, 2015 | 15 |
Table of Contents
Institutional Class - PVDIX | Class A - PVDAX | |
Class P - PVDPX | Class C - PVDCX | |
Class D - PVDDX |
Cumulative Returns Through June 30, 2015
Cumulative Total Return for the period ended June 30, 2015 | ||||||
Fund Inception | ||||||
PIMCO U.S. Dividend Fund Institutional Class | 2.45% | |||||
PIMCO U.S. Dividend Fund Class P | 2.28% | |||||
PIMCO U.S. Dividend Fund Class D | 2.14% | |||||
PIMCO U.S. Dividend Fund Class A | 2.34% | |||||
PIMCO U.S. Dividend Fund Class A (Adjusted) | -3.26% | |||||
PIMCO U.S. Dividend Fund Class C | 1.83% | |||||
PIMCO U.S. Dividend Fund Class C (Adjusted) | 0.84% | |||||
S&P 500 Index± | 4.83% |
All Fund returns are net of fees and expenses.
± S&P 500 Index is an unmanaged market index generally considered representative of the stock market as a whole. The Index focuses on the large-cap segment of the U.S. equities market. It is not possible to invest directly in an unmanaged index.
Performance quoted represents past performance. Past performance is not a guarantee or a reliable indicator of future results. Current performance may be lower or higher than performance shown. Investment return and the principal value of an investment will fluctuate. Shares may be worth more or less than original cost when redeemed. Returns shown do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. The adjusted returns take into account the maximum sales charge of 5.50% on Class A shares and 1.00% CDSC on Class C shares. The Fund’s total annual operating expense ratio as stated in the Fund’s current prospectus, as supplemented to date, is 0.97% for the Institutional Class shares, 1.07% for the Class P shares, 1.32% for the Class D shares, 1.32% for the Class A shares, and 2.07% for the Class C shares. Details regarding any Fund’s operating expenses can be found in the Fund’s prospectus. For performance current to the most recent month-end, visit www.pimco.com.
Investment Objective and Strategy Overview
» | The PIMCO U.S. Dividend Fund seeks to provide current income that exceeds the average yield on U.S. stocks, while providing long-term capital appreciation, by investing in a U.S.-focused diversified portfolio of dividend-paying stocks that have an attractive yield, a growing dividend, and long-term capital appreciation. The Fund will invest primarily in equity and equity-related securities that are economically tied to the United States, including common and preferred stock (and securities convertible into, or that PIMCO expects to be exchanged for, common or preferred stock), as well as securities issued by real estate investment trusts, master limited partnerships and other equity trusts and depositary receipts. |
Portfolio Insights
» | The Fund commenced operations on December 15, 2014. |
» | Since inception of the Fund through the end of the reporting period, the Fund’s Institutional Class shares returned 2.45% after fees and expenses, underperforming its benchmark index, the S&P 500 Index, which returned 4.83%. |
» | During the reporting period, the Fund paid ordinary quarterly dividends totaling 15 cents per share on its Institutional Class shares. It did not pay out a one-time supplemental dividend. The dividend per share was slightly lower for the other share classes to account for varying class specific expenses. |
» | From a sector perspective, total security selection negatively impacted performance over the reporting period. Specifically, security selection within the information technology, materials and energy sectors detracted the most from performance. An overweight to an underperforming utilities sector further detracted from returns. |
» | Positive security selection within the financials and industrials sectors mitigated losses. |
» | Overall country selection was negative for performance, with exposure to the United States being the largest detractor. |
» | The top five contributors to excess returns over the reporting period were Blackstone Group, Dow Chemical Company, R.R. Donnelley & Sons, AbbVie and JPMorgan Chase. The bottom five detractors from returns were Golar LNG Partners, Navient Corporation, Qualcomm, Western Digital Corporation and Tronox. |
16 | PIMCO EQUITY SERIES |
Table of Contents
Institutional Class - PTHWX | Class A - PATHX | |
Class P - PTHPX | Class C - PTHCX | |
Class D - PTHDX | Class R - PTHRX | |
Cumulative Returns Through June 30, 2015
Average Annual Total Return for the period ended June 30, 2015 | ||||||||||||||
1 Year | 5 Year | Fund Inception (04/14/10) | ||||||||||||
PIMCO EqS Pathfinder Fund® Institutional Class | -2.36% | 8.45% | 6.45% | |||||||||||
PIMCO EqS Pathfinder Fund® Class P | -2.36% | 8.35% | 6.35% | |||||||||||
PIMCO EqS Pathfinder Fund® Class D | -2.71% | 8.09% | 6.06% | |||||||||||
PIMCO EqS Pathfinder Fund® Class A | -2.68% | 8.07% | 6.07% | |||||||||||
PIMCO EqS Pathfinder Fund® Class A (adjusted) | -8.03% | 6.86% | 4.92% | |||||||||||
PIMCO EqS Pathfinder Fund® Class C | -3.45% | 7.28% | 5.30% | |||||||||||
PIMCO EqS Pathfinder Fund® Class C (adjusted) | -4.18% | 7.28% | 5.30% | |||||||||||
PIMCO EqS Pathfinder Fund® Class R | -2.94% | 7.76% | 5.76% | |||||||||||
MSCI World Index± | 1.43% | 13.10% | 8.96% |
All Fund returns are net of fees and expenses.
± The MSCI World Index is a free float-adjusted market capitalization weighted index that is designed to measure the equity market performance of developed markets. The MSCI World Index consists of 23 developed market country indices. It is not possible to invest directly in an unmanaged index.
Performance quoted represents past performance. Past performance is not a guarantee or a reliable indicator of future results. Current performance may be lower or higher than performance shown. Investment return and the principal value of an investment will fluctuate. Shares may be worth more or less than original cost when redeemed. Returns shown do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. The adjusted returns take into account the maximum sales charge of 5.50% on Class A shares and 1.00% CDSC on Class C shares. The Fund’s total annual operating expense ratio as stated in the Fund’s current prospectus, as supplemented to date, is 1.05% for the Institutional Class shares, 1.15% for the Class P shares, 1.40% for the Class D shares, 1.40% for the Class A shares, 2.15% for the Class C shares and 1.65% for the Class R shares. Details regarding any Fund’s operating expenses can be found in the Fund’s prospectus. For performance current to the most recent month-end, visit www.pimco.com.
Investment Objective and Strategy Overview
» | The PIMCO EqS Pathfinder Fund® seeks capital appreciation by investing under normal circumstances in equity securities, including common and preferred stock (and securities convertible into, or that PIMCO expects to be exchanged for, common or preferred stock), of issuers that PIMCO believes are undervalued. The Fund’s bottom-up value investment style attempts to identify securities that are undervalued by the market in comparison to PIMCO’s own determination of the company’s value, taking into account criteria such as asset value, book value, cash flow and earnings estimates. |
Portfolio Insights
» | The Fund’s Institutional Class shares returned -2.36% after fees and expenses, and the Fund’s benchmark index, the MSCI World Index, returned 1.43% during the reporting period. |
» | The primary cause of underperformance during the reporting period was stock selection in the energy sector. |
» | From a sector perspective, the allocation effect detracted modestly from returns during the reporting period. |
» | Stock selection and an underweight to the health care sector detracted from performance as the sector was the top performing sector during the period. |
» | From a regional perspective, security selection in North America and Europe were the main drivers of underperformance relative to the Fund’s benchmark during the period. |
» | The impact of negative security selection was partially offset by the Fund’s cash and foreign currency positions, which were positive contributors to relative performance during the period. |
» | Over the reporting period, the largest single stock contributors to performance were Aena, AIA Group and Reynolds American. The largest detractors from performance were North Atlantic Drilling, Seadrill and Genworth Financial. |
ANNUAL REPORT | JUNE 30, 2015 | 17 |
Table of Contents
Example
As a shareholder of a Fund, you incur two types of costs: (1) transaction costs, including sales charges (loads) on purchase payments and exchange fees and (2) ongoing costs, including management fees, distribution and/or service (12b-1) fees, and other Fund expenses. The Example is intended to help you understand your ongoing costs (in dollars) of investing in a Fund and to compare these costs with the ongoing costs of investing in other mutual funds.
The Example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period indicated, which for all Funds and share classes is from January 1, 2015 to June 30, 2015 unless noted otherwise in the table and footnotes below.
Actual Expenses
The information in the table under the heading “Actual” provides information about actual account values and actual expenses. You may use the information in these columns, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = $8.60), then multiply the result by the number in the appropriate column for your share class, in the column entitled “Expenses Paid During Period” to estimate the expenses you paid on your account during this period.
Hypothetical Example for Comparison Purposes
The information in the table under the heading “Hypothetical (5% return before expenses)” provides information about hypothetical account values and hypothetical expenses based on a Fund’s actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Fund’s actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in a Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transactional costs, such as sales charges (loads) on purchase payments and exchange fees. Therefore, the information under the heading “Hypothetical (5% return before expenses)” is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.
Expense ratios may vary from period to period because of various factors such as an increase in expenses that are not covered by the management fees, such as fees and expenses of the independent trustees and their counsel, extraordinary expenses and interest expense.
Actual | Hypothetical (5% return before expenses) | |||||||||||||||||||||||||||||||||
Beginning Account Value (01/01/15) | Ending Account Value (06/30/15) | Expenses Paid During Period* | Beginning Account Value (01/01/15) | Ending Account Value (06/30/15) | Expenses Paid During Period* | Net Annualized Expense Ratio** | ||||||||||||||||||||||||||||
PIMCO Balanced Income Fund | ||||||||||||||||||||||||||||||||||
Institutional Class | $ | 1,000.00 | $ | 1,018.90 | $ | 3.73 | $ | 1,000.00 | $ | 1,020.96 | $ | 3.74 | 0.75 | % | ||||||||||||||||||||
Class P | 1,000.00 | 1,018.40 | 4.23 | 1,000.00 | 1,020.47 | 4.23 | 0.85 | |||||||||||||||||||||||||||
Class D | 1,000.00 | 1,016.20 | 5.47 | 1,000.00 | 1,019.23 | 5.48 | 1.10 | |||||||||||||||||||||||||||
Class A | 1,000.00 | 1,016.20 | 5.47 | 1,000.00 | 1,019.23 | 5.48 | 1.10 | |||||||||||||||||||||||||||
Class C | 1,000.00 | 1,012.40 | 9.18 | 1,000.00 | 1,015.53 | 9.19 | 1.85 | |||||||||||||||||||||||||||
PIMCO Dividend and Income Builder Fund | ||||||||||||||||||||||||||||||||||
Institutional Class | $ | 1,000.00 | $ | 1,018.00 | $ | 4.13 | $ | 1,000.00 | $ | 1,020.56 | $ | 4.14 | 0.83 | % | ||||||||||||||||||||
Class P | 1,000.00 | 1,018.30 | 4.63 | 1,000.00 | 1,020.07 | 4.63 | 0.93 | |||||||||||||||||||||||||||
Class D | 1,000.00 | 1,017.10 | 5.87 | 1,000.00 | 1,018.84 | 5.87 | 1.18 | |||||||||||||||||||||||||||
Class A | 1,000.00 | 1,017.10 | 5.87 | 1,000.00 | 1,018.84 | 5.87 | 1.18 | |||||||||||||||||||||||||||
Class C | 1,000.00 | 1,013.30 | 9.58 | 1,000.00 | 1,015.14 | 9.59 | 1.93 | |||||||||||||||||||||||||||
Class R | 1,000.00 | 1,015.00 | 7.10 | 1,000.00 | 1,017.61 | 7.11 | 1.43 |
18 | PIMCO EQUITY SERIES |
Table of Contents
Actual | Hypothetical (5% return before expenses) | |||||||||||||||||||||||||||||||||
Beginning Account Value (01/01/15) | Ending Account Value (06/30/15) | Expenses Paid During Period* | Beginning Account Value (01/01/15) | Ending Account Value (06/30/15) | Expenses Paid During Period* | Net Annualized Expense Ratio** | ||||||||||||||||||||||||||||
PIMCO Emerging Multi-Asset Fund | ||||||||||||||||||||||||||||||||||
Institutional Class | $ | 1,000.00 | $ | 1,022.30 | $ | 1.60 | $ | 1,000.00 | $ | 1,023.08 | $ | 1.60 | 0.35 | % | ||||||||||||||||||||
Class P | 1,000.00 | 1,022.40 | 2.09 | 1,000.00 | 1,022.59 | 2.09 | 0.45 | |||||||||||||||||||||||||||
Administrative Class | 1,000.00 | 1,021.30 | 2.84 | 1,000.00 | 1,021.85 | 2.84 | 0.60 | |||||||||||||||||||||||||||
Class D | 1,000.00 | 1,019.90 | 3.34 | 1,000.00 | 1,021.35 | 3.34 | 0.70 | |||||||||||||||||||||||||||
Class A | 1,000.00 | 1,020.00 | 3.34 | 1,000.00 | 1,021.35 | 3.34 | 0.70 | |||||||||||||||||||||||||||
Class C | 1,000.00 | 1,016.50 | 7.06 | 1,000.00 | 1,017.65 | 7.06 | 1.45 | |||||||||||||||||||||||||||
Class R | 1,000.00 | 1,018.90 | 4.58 | 1,000.00 | 1,020.12 | 4.58 | 0.95 | |||||||||||||||||||||||||||
PIMCO EqS® Emerging Markets Fund | ||||||||||||||||||||||||||||||||||
Institutional Class | $ | 1,000.00 | $ | 1,014.10 | $ | 6.26 | $ | 1,000.00 | $ | 1,018.44 | $ | 6.27 | 1.26 | % | ||||||||||||||||||||
Class P | 1,000.00 | 1,016.50 | 6.76 | 1,000.00 | 1,017.95 | 6.77 | 1.36 | |||||||||||||||||||||||||||
Administrative Class | 1,000.00 | 1,014.20 | 7.50 | 1,000.00 | 1,017.21 | 7.51 | 1.51 | |||||||||||||||||||||||||||
Class D | 1,000.00 | 1,014.30 | 8.00 | 1,000.00 | 1,016.72 | 8.01 | 1.61 | |||||||||||||||||||||||||||
Class A | 1,000.00 | 1,014.30 | 8.00 | 1,000.00 | 1,016.72 | 8.01 | 1.61 | |||||||||||||||||||||||||||
Class C | 1,000.00 | 1,010.90 | 11.70 | 1,000.00 | 1,013.02 | 11.71 | 2.36 | |||||||||||||||||||||||||||
Class R | 1,000.00 | 1,014.30 | 9.24 | 1,000.00 | 1,015.48 | 9.24 | 1.86 | |||||||||||||||||||||||||||
PIMCO EqS® Long/Short Fund | ||||||||||||||||||||||||||||||||||
Institutional Class | $ | 1,000.00 | $ | 1,031.60 | $ | 10.57 | $ | 1,000.00 | $ | 1,014.25 | $ | 10.48 | 2.11 | % | ||||||||||||||||||||
Class P | 1,000.00 | 1,030.90 | 11.07 | 1,000.00 | 1,013.76 | 10.97 | 2.21 | |||||||||||||||||||||||||||
Class D | 1,000.00 | 1,030.20 | 12.31 | 1,000.00 | 1,012.53 | 12.21 | 2.46 | |||||||||||||||||||||||||||
Class A | 1,000.00 | 1,030.20 | 12.31 | 1,000.00 | 1,012.53 | 12.21 | 2.46 | |||||||||||||||||||||||||||
Class C | 1,000.00 | 1,026.30 | 16.04 | 1,000.00 | 1,008.83 | 15.90 | 3.21 | |||||||||||||||||||||||||||
PIMCO Global Dividend Fund | ||||||||||||||||||||||||||||||||||
Institutional Class | $ | 1,000.00 | $ | 1,021.50 | $ | 4.19 | $ | 1,000.00 | $ | 1,020.52 | $ | 4.19 | 0.84 | % | ||||||||||||||||||||
Class P | 1,000.00 | 1,022.40 | 4.69 | 1,000.00 | 1,020.02 | 4.68 | 0.94 | |||||||||||||||||||||||||||
Class D | 1,000.00 | 1,021.10 | 5.93 | 1,000.00 | 1,018.79 | 5.92 | 1.19 | |||||||||||||||||||||||||||
Class A | 1,000.00 | 1,021.10 | 5.93 | 1,000.00 | 1,018.79 | 5.92 | 1.19 | |||||||||||||||||||||||||||
Class C | 1,000.00 | 1,017.40 | 9.65 | 1,000.00 | 1,015.09 | 9.64 | 1.94 | |||||||||||||||||||||||||||
Class R | 1,000.00 | 1,019.90 | 7.17 | 1,000.00 | 1,017.56 | 7.16 | 1.44 | |||||||||||||||||||||||||||
PIMCO International Dividend Fund | ||||||||||||||||||||||||||||||||||
Institutional Class | $ | 1,000.00 | $ | 1,048.80 | $ | 4.24 | $ | 1,000.00 | $ | 1,020.52 | $ | 4.19 | 0.84 | % | ||||||||||||||||||||
Class P | 1,000.00 | 1,048.20 | 4.75 | 1,000.00 | 1,020.02 | 4.68 | 0.94 | |||||||||||||||||||||||||||
Class D | 1,000.00 | 1,047.00 | 6.01 | 1,000.00 | 1,018.79 | 5.92 | 1.19 | |||||||||||||||||||||||||||
Class A | 1,000.00 | 1,048.00 | 6.01 | 1,000.00 | 1,018.79 | 5.92 | 1.19 | |||||||||||||||||||||||||||
Class C | 1,000.00 | 1,043.10 | 9.77 | 1,000.00 | 1,015.09 | 9.64 | 1.94 | |||||||||||||||||||||||||||
PIMCO U.S. Dividend Fund | ||||||||||||||||||||||||||||||||||
Institutional Class | $ | 1,000.00 | $ | 983.10 | $ | 3.67 | $ | 1,000.00 | $ | 1,020.96 | $ | 3.74 | 0.75 | % | ||||||||||||||||||||
Class P | 1,000.00 | 981.70 | 4.15 | 1,000.00 | 1,020.47 | 4.23 | 0.85 | |||||||||||||||||||||||||||
Class D | 1,000.00 | 980.50 | 5.37 | 1,000.00 | 1,019.23 | 5.48 | 1.10 | |||||||||||||||||||||||||||
Class A | 1,000.00 | 982.40 | 5.38 | 1,000.00 | 1,019.23 | 5.48 | 1.10 | |||||||||||||||||||||||||||
Class C | 1,000.00 | 977.70 | 9.02 | 1,000.00 | 1,015.53 | 9.19 | 1.85 | |||||||||||||||||||||||||||
PIMCO EqS Pathfinder Fund® (Consolidated) | ||||||||||||||||||||||||||||||||||
Institutional Class | $ | 1,000.00 | $ | 1,051.90 | $ | 4.86 | $ | 1,000.00 | $ | 1,019.92 | $ | 4.78 | 0.96 | % | ||||||||||||||||||||
Class P | 1,000.00 | 1,052.10 | 5.36 | 1,000.00 | 1,019.43 | 5.28 | 1.06 | |||||||||||||||||||||||||||
Class D | 1,000.00 | 1,050.40 | 6.62 | 1,000.00 | 1,018.20 | 6.52 | 1.31 | |||||||||||||||||||||||||||
Class A | 1,000.00 | 1,050.20 | 6.62 | 1,000.00 | 1,018.20 | 6.52 | 1.31 | |||||||||||||||||||||||||||
Class C | 1,000.00 | 1,046.00 | 10.39 | 1,000.00 | 1,014.50 | 10.23 | 2.06 | |||||||||||||||||||||||||||
Class R | 1,000.00 | 1,048.80 | 7.88 | 1,000.00 | 1,016.96 | 7.76 | 1.56 |
* Expenses Paid During Period are equal to the net annualized expense ratio for the class, multiplied by the average account value over the period, multiplied by the number of days in the period/365 (to reflect the one-half year period).
** The Net Annualized Expense Ratio is reflective of any applicable waivers related to contractual agreements for contractual fee waivers or voluntary fee waivers. Details regarding fee waivers can be found in Note 9 in the Notes to Financial Statements.
ANNUAL REPORT | JUNE 30, 2015 | 19 |
Table of Contents
Selected Per Share Data for the Year or Period Ended: | Net Asset Value Beginning of Year or Period | Net Investment Income (Loss) (a) | Net Realized/ Unrealized Gain (Loss) | Total from Investment Operations | Dividends from Net Investment Income | Distributions from Net Realized Capital Gains | Tax Basis Return of Capital | Total Distributions | ||||||||||||||||||||||||
PIMCO Balanced Income Fund | ||||||||||||||||||||||||||||||||
Institutional Class | ||||||||||||||||||||||||||||||||
06/30/2015 | $ | 10.24 | $ | 0.30 | $ | (0.17 | ) | $ | 0.13 | $ | (0.31 | ) | $ | (0.01 | ) | $ | 0.00 | $ | (0.32 | ) | ||||||||||||
03/31/2014 - 06/30/2014 | 10.00 | 0.08 | 0.24 | 0.32 | (0.08 | ) | 0.00 | 0.00 | (0.08 | ) | ||||||||||||||||||||||
Class P | ||||||||||||||||||||||||||||||||
06/30/2015 | 10.24 | 0.30 | (0.18 | ) | 0.12 | (0.30 | ) | (0.01 | ) | 0.00 | (0.31 | ) | ||||||||||||||||||||
03/31/2014 - 06/30/2014 | 10.00 | 0.08 | 0.24 | 0.32 | (0.08 | ) | 0.00 | 0.00 | (0.08 | ) | ||||||||||||||||||||||
Class D | ||||||||||||||||||||||||||||||||
06/30/2015 | 10.25 | 0.27 | (0.18 | ) | 0.09 | (0.28 | ) | (0.01 | ) | 0.00 | (0.29 | ) | ||||||||||||||||||||
03/31/2014 - 06/30/2014 | 10.00 | 0.08 | 0.24 | 0.32 | (0.07 | ) | 0.00 | 0.00 | (0.07 | ) | ||||||||||||||||||||||
Class A | ||||||||||||||||||||||||||||||||
06/30/2015 | 10.25 | 0.29 | (0.20 | ) | 0.09 | (0.28 | ) | (0.01 | ) | 0.00 | (0.29 | ) | ||||||||||||||||||||
03/31/2014 - 06/30/2014 | 10.00 | 0.08 | 0.24 | 0.32 | (0.07 | ) | 0.00 | 0.00 | (0.07 | ) | ||||||||||||||||||||||
Class C | ||||||||||||||||||||||||||||||||
06/30/2015 | 10.25 | 0.19 | (0.18 | ) | 0.01 | (0.20 | ) | (0.01 | ) | 0.00 | (0.21 | ) | ||||||||||||||||||||
03/31/2014 - 06/30/2014 | 10.00 | 0.07 | 0.23 | 0.30 | (0.05 | ) | 0.00 | 0.00 | (0.05 | ) | ||||||||||||||||||||||
PIMCO Dividend and Income | ||||||||||||||||||||||||||||||||
Institutional Class | ||||||||||||||||||||||||||||||||
06/30/2015 | $ | 13.12 | $ | 0.47 | $ | (0.50 | ) | $ | (0.03 | ) | $ | (0.46 | ) | $ | (0.34 | ) | $ | 0.00 | $ | (0.80 | ) | |||||||||||
06/30/2014 | 11.60 | 0.44 | 1.54 | 1.98 | (0.46 | ) | 0.00 | 0.00 | (0.46 | ) | ||||||||||||||||||||||
06/30/2013 | 10.47 | 0.54 | 1.03 | 1.57 | (0.42 | ) | (0.02 | ) | 0.00 | (0.44 | ) | |||||||||||||||||||||
12/14/2011 - 06/30/2012 | 10.00 | 0.25 | 0.47 | 0.72 | (0.25 | ) | 0.00 | 0.00 | (0.25 | ) | ||||||||||||||||||||||
Class P | ||||||||||||||||||||||||||||||||
06/30/2015 | 13.13 | 0.46 | (0.50 | ) | (0.04 | ) | (0.45 | ) | (0.34 | ) | 0.00 | (0.79 | ) | |||||||||||||||||||
06/30/2014 | 11.62 | 0.44 | 1.52 | 1.96 | (0.45 | ) | 0.00 | 0.00 | (0.45 | ) | ||||||||||||||||||||||
06/30/2013 | 10.48 | 0.54 | 1.03 | 1.57 | (0.41 | ) | (0.02 | ) | 0.00 | (0.43 | ) | |||||||||||||||||||||
12/14/2011 - 06/30/2012 | 10.00 | 0.30 | 0.42 | 0.72 | (0.24 | ) | 0.00 | 0.00 | (0.24 | ) | ||||||||||||||||||||||
Class D | ||||||||||||||||||||||||||||||||
06/30/2015 | 13.12 | 0.46 | (0.53 | ) | (0.07 | ) | (0.42 | ) | (0.34 | ) | 0.00 | (0.76 | ) | |||||||||||||||||||
06/30/2014 | 11.61 | 0.40 | 1.53 | 1.93 | (0.42 | ) | 0.00 | 0.00 | (0.42 | ) | ||||||||||||||||||||||
06/30/2013 | 10.47 | 0.46 | 1.09 | 1.55 | (0.39 | ) | (0.02 | ) | 0.00 | (0.41 | ) | |||||||||||||||||||||
12/14/2011 - 06/30/2012 | 10.00 | 0.26 | 0.44 | 0.70 | (0.23 | ) | 0.00 | 0.00 | (0.23 | ) | ||||||||||||||||||||||
Class A | ||||||||||||||||||||||||||||||||
06/30/2015 | 13.12 | 0.43 | (0.50 | ) | (0.07 | ) | (0.42 | ) | (0.34 | ) | 0.00 | (0.76 | ) | |||||||||||||||||||
06/30/2014 | 11.61 | 0.42 | 1.51 | 1.93 | (0.42 | ) | 0.00 | 0.00 | (0.42 | ) | ||||||||||||||||||||||
06/30/2013 | 10.47 | 0.48 | 1.07 | 1.55 | (0.39 | ) | (0.02 | ) | 0.00 | (0.41 | ) | |||||||||||||||||||||
12/14/2011 - 06/30/2012 | 10.00 | 0.26 | 0.44 | 0.70 | (0.23 | ) | 0.00 | 0.00 | (0.23 | ) | ||||||||||||||||||||||
Class C | ||||||||||||||||||||||||||||||||
06/30/2015 | 13.10 | 0.34 | (0.51 | ) | (0.17 | ) | (0.32 | ) | (0.34 | ) | 0.00 | (0.66 | ) | |||||||||||||||||||
06/30/2014 | 11.59 | 0.33 | 1.51 | 1.84 | (0.33 | ) | 0.00 | 0.00 | (0.33 | ) | ||||||||||||||||||||||
06/30/2013 | 10.46 | 0.40 | 1.06 | 1.46 | (0.31 | ) | (0.02 | ) | 0.00 | (0.33 | ) | |||||||||||||||||||||
12/14/2011 - 06/30/2012 | 10.00 | 0.24 | 0.41 | 0.65 | (0.19 | ) | 0.00 | 0.00 | (0.19 | ) | ||||||||||||||||||||||
Class R | ||||||||||||||||||||||||||||||||
06/30/2015 | 13.12 | 0.38 | (0.48 | ) | (0.10 | ) | (0.39 | ) | (0.34 | ) | 0.00 | (0.73 | ) | |||||||||||||||||||
06/30/2014 | 11.61 | 0.38 | 1.52 | 1.90 | (0.39 | ) | 0.00 | 0.00 | (0.39 | ) | ||||||||||||||||||||||
06/30/2013 | 10.47 | 0.36 | 1.16 | 1.52 | (0.36 | ) | (0.02 | ) | 0.00 | (0.38 | ) | |||||||||||||||||||||
12/14/2011 - 06/30/2012 | 10.00 | 0.25 | 0.43 | 0.68 | (0.21 | ) | 0.00 | 0.00 | (0.21 | ) | ||||||||||||||||||||||
PIMCO Emerging Multi-Asset Fund | ||||||||||||||||||||||||||||||||
Institutional Class | ||||||||||||||||||||||||||||||||
06/30/2015 | $ | 9.11 | $ | 0.18 | $ | (0.67 | ) | $ | (0.49 | ) | $ | (0.29 | ) | $ | 0.00 | $ | (0.09 | ) | $ | (0.38 | ) | |||||||||||
06/30/2014 | 8.60 | 0.18 | 0.48 | 0.66 | (0.15 | ) | 0.00 | 0.00 | (0.15 | ) | ||||||||||||||||||||||
06/30/2013 | 8.71 | 0.24 | (0.08 | ) | 0.16 | (0.27 | ) | 0.00 | 0.00 | (0.27 | ) | |||||||||||||||||||||
06/30/2012 | 9.89 | 0.14 | (1.27 | ) | (1.13 | ) | (0.05 | ) | 0.00 | 0.00 | (0.05 | ) | ||||||||||||||||||||
04/12/2011 - 06/30/2011 | 10.00 | 0.02 | (0.13 | ) | (0.11 | ) | 0.00 | 0.00 | 0.00 | 0.00 |
Please see footnotes on page 28.
20 | PIMCO EQUITY SERIES | See Accompanying Notes |
Table of Contents
Net Asset Value End of Year or Period | Total Return | Net Assets End of Year or Period (000s) | Ratio of Expenses to Average Net Assets | Ratio of Expenses to Average Net Assets Excluding Waivers | Ratio of Expenses to Average Net Assets Excluding Interest Expense and Dividends on Securities Sold Short | Ratio of Expenses to Average Net Assets Excluding Interest Expense and Dividends on Securities Sold Short and Waivers | Ratio of Net Investment Income (Loss) to Average Net Assets | Portfolio Turnover Rate** | ||||||||||||||||||||||||||
$ | 10.05 | 1.34 | % | $ | 7,473 | 0.75 | % | 0.91 | % | 0.75 | % | 0.91 | % | 2.92 | % | 65 | % | |||||||||||||||||
10.24 | 3.20 | 6,284 | 0.75 | * | 4.52 | * | 0.75 | * | 4.52 | * | 3.20 | * | 6 | |||||||||||||||||||||
10.05 | 1.24 | 141 | 0.85 | 1.01 | 0.85 | 1.01 | 2.96 | 65 | ||||||||||||||||||||||||||
10.24 | 3.18 | 11 | 0.85 | * | 4.62 | * | 0.85 | * | 4.62 | * | 3.03 | * | 6 | |||||||||||||||||||||
10.05 | 0.89 | 397 | 1.10 | 1.26 | 1.10 | 1.26 | 2.66 | 65 | ||||||||||||||||||||||||||
10.25 | 3.21 | 45 | 1.10 | * | 4.87 | * | 1.10 | * | 4.87 | * | 3.11 | * | 6 | |||||||||||||||||||||
10.05 | 0.88 | 4,380 | 1.10 | 1.26 | 1.10 | 1.26 | 2.81 | 65 | ||||||||||||||||||||||||||
10.25 | 3.21 | 319 | 1.10 | * | 4.87 | * | 1.10 | * | 4.87 | * | 3.14 | * | 6 | |||||||||||||||||||||
10.05 | 0.13 | 3,788 | 1.85 | 2.01 | 1.85 | 2.01 | 1.91 | 65 | ||||||||||||||||||||||||||
10.25 | 3.03 | 461 | 1.85 | * | 5.62 | * | 1.85 | * | 5.62 | * | 2.87 | * | 6 | |||||||||||||||||||||
$ | 12.29 | (0.12 | )% | $ | 68,607 | 0.83 | % | 1.00 | % | 0.83 | % | 1.00 | % | 3.70 | % | 98 | % | |||||||||||||||||
13.12 | 17.23 | 90,408 | 0.84 | 1.00 | 0.84 | 1.00 | 3.56 | 79 | ||||||||||||||||||||||||||
11.60 | 15.17 | 69,203 | 0.83 | 1.00 | 0.83 | 1.00 | 4.66 | 75 | ||||||||||||||||||||||||||
10.47 | 7.17 | 11,170 | 0.83 | * | 1.57 | * | 0.83 | * | 1.57 | * | 4.35 | * | 28 | |||||||||||||||||||||
12.30 | (0.22 | ) | 169,790 | 0.93 | 1.10 | 0.93 | 1.10 | 3.64 | 98 | |||||||||||||||||||||||||
13.13 | 17.05 | 158,122 | 0.94 | 1.10 | 0.94 | 1.10 | 3.53 | 79 | ||||||||||||||||||||||||||
11.62 | 15.15 | 85,724 | 0.93 | 1.10 | 0.93 | 1.10 | 4.62 | 75 | ||||||||||||||||||||||||||
10.48 | 7.21 | 8,207 | 0.93 | * | 2.47 | * | 0.93 | * | 2.47 | * | 5.28 | * | 28 | |||||||||||||||||||||
12.29 | (0.47 | ) | 41,094 | 1.18 | 1.35 | 1.18 | 1.35 | 3.59 | 98 | |||||||||||||||||||||||||
13.12 | 16.78 | 32,523 | 1.19 | 1.35 | 1.19 | 1.35 | 3.19 | 79 | ||||||||||||||||||||||||||
11.61 | 14.91 | 23,204 | 1.18 | 1.35 | 1.18 | 1.35 | 4.00 | 75 | ||||||||||||||||||||||||||
10.47 | 6.98 | 2,306 | 1.18 | * | 2.26 | * | 1.18 | * | 2.26 | * | 4.52 | * | 28 | |||||||||||||||||||||
12.29 | (0.49 | ) | 296,317 | 1.18 | 1.35 | 1.18 | 1.35 | 3.39 | 98 | |||||||||||||||||||||||||
13.12 | 16.78 | 320,719 | 1.19 | 1.35 | 1.19 | 1.35 | 3.34 | 79 | ||||||||||||||||||||||||||
11.61 | 14.91 | 117,579 | 1.18 | 1.35 | 1.18 | 1.35 | 4.18 | 75 | ||||||||||||||||||||||||||
10.47 | 6.98 | 13,314 | 1.18 | * | 2.43 | * | 1.18 | * | 2.43 | * | 4.62 | * | 28 | |||||||||||||||||||||
12.27 | (1.23 | ) | 358,171 | 1.93 | 2.10 | 1.93 | 2.10 | 2.67 | 98 | |||||||||||||||||||||||||
13.10 | 15.97 | 353,287 | 1.94 | 2.10 | 1.94 | 2.10 | 2.67 | 79 | ||||||||||||||||||||||||||
11.59 | 14.08 | 86,879 | 1.93 | 2.10 | 1.93 | 2.10 | 3.42 | 75 | ||||||||||||||||||||||||||
10.46 | 6.46 | 8,000 | 1.93 | * | 3.46 | * | 1.93 | * | 3.46 | * | 4.27 | * | 28 | |||||||||||||||||||||
12.29 | (0.72 | ) | 283 | 1.43 | 1.60 | 1.43 | 1.60 | 2.97 | 98 | |||||||||||||||||||||||||
13.12 | 16.50 | 459 | 1.44 | 1.60 | 1.44 | 1.60 | 3.03 | 79 | ||||||||||||||||||||||||||
11.61 | 14.66 | 217 | 1.43 | 1.60 | 1.43 | 1.60 | 3.24 | 75 | ||||||||||||||||||||||||||
10.47 | 6.84 | 415 | 1.43 | * | 2.32 | * | 1.43 | * | 2.32 | * | 4.30 | * | 28 | |||||||||||||||||||||
$ | 8.24 | (5.33 | )% | $ | 3,258 | 0.32 | % | 1.37 | % | 0.32 | % | 1.37 | % | 2.07 | % | 18 | % | |||||||||||||||||
9.11 | 7.73 | 20,927 | 0.28 | 1.36 | 0.28 | 1.36 | 2.11 | 20 | ||||||||||||||||||||||||||
8.60 | 1.60 | 36,051 | 0.35 | 1.36 | 0.35 | 1.36 | 2.62 | 53 | ||||||||||||||||||||||||||
8.71 | (11.45 | ) | 29,987 | 0.53 | 1.38 | 0.53 | 1.38 | 1.62 | 41 | |||||||||||||||||||||||||
9.89 | (1.10 | ) | 9,755 | 0.53 | * | 6.96 | * | 0.53 | * | 6.96 | * | 1.13 | * | 0 |
Please see footnotes on page 28.
ANNUAL REPORT | JUNE 30, 2015 | 21 |
Table of Contents
Financial Highlights (Cont.)
Selected Per Share Data for the Year or Period Ended: | Net Asset Value Beginning of Year or Period | Net Investment Income (Loss) (a) | Net Realized/ Unrealized Gain (Loss) | Total from Investment Operations | Dividends from Net Investment Income | Distributions from Net Realized Capital Gains | Tax Basis Return of Capital | Total Distributions | ||||||||||||||||||||||||
PIMCO Emerging Multi-Asset | ||||||||||||||||||||||||||||||||
Class P | ||||||||||||||||||||||||||||||||
06/30/2015 | $ | 9.08 | $ | 0.17 | $ | (0.66 | ) | $ | (0.49 | ) | $ | (0.29 | ) | $ | 0.00 | $ | (0.08 | ) | $ | (0.37 | ) | |||||||||||
06/30/2014 | 8.58 | 0.17 | 0.48 | 0.65 | (0.15 | ) | 0.00 | 0.00 | (0.15 | ) | ||||||||||||||||||||||
06/30/2013 | 8.69 | 0.24 | (0.09 | ) | 0.15 | (0.26 | ) | 0.00 | 0.00 | (0.26 | ) | |||||||||||||||||||||
06/30/2012 | 9.90 | 0.15 | (1.31 | ) | (1.16 | ) | (0.05 | ) | 0.00 | 0.00 | (0.05 | ) | ||||||||||||||||||||
04/12/2011 - 06/30/2011 | 10.00 | 0.02 | (0.12 | ) | (0.10 | ) | 0.00 | 0.00 | 0.00 | 0.00 | ||||||||||||||||||||||
Administrative Class | ||||||||||||||||||||||||||||||||
06/30/2015 | 9.03 | 0.15 | (0.65 | ) | (0.50 | ) | (0.28 | ) | 0.00 | (0.08 | ) | (0.36 | ) | |||||||||||||||||||
06/30/2014 | 8.55 | 0.19 | 0.43 | 0.62 | (0.14 | ) | 0.00 | 0.00 | (0.14 | ) | ||||||||||||||||||||||
06/30/2013 | 8.69 | 0.15 | (0.01 | ) | 0.14 | (0.28 | ) | 0.00 | 0.00 | (0.28 | ) | |||||||||||||||||||||
06/30/2012 | 9.89 | 0.12 | (1.28 | ) | (1.16 | ) | (0.04 | ) | 0.00 | 0.00 | (0.04 | ) | ||||||||||||||||||||
04/19/2011 - 06/30/2011 | 10.02 | 0.02 | (0.15 | ) | (0.13 | ) | 0.00 | 0.00 | 0.00 | 0.00 | ||||||||||||||||||||||
Class D | ||||||||||||||||||||||||||||||||
06/30/2015 | 9.07 | 0.14 | (0.66 | ) | (0.52 | ) | (0.26 | ) | 0.00 | (0.09 | ) | (0.35 | ) | |||||||||||||||||||
06/30/2014 | 8.57 | 0.15 | 0.48 | 0.63 | (0.13 | ) | 0.00 | 0.00 | (0.13 | ) | ||||||||||||||||||||||
06/30/2013 | 8.70 | 0.20 | (0.08 | ) | 0.12 | (0.25 | ) | 0.00 | 0.00 | (0.25 | ) | |||||||||||||||||||||
06/30/2012 | 9.89 | 0.11 | (1.27 | ) | (1.16 | ) | (0.03 | ) | 0.00 | 0.00 | (0.03 | ) | ||||||||||||||||||||
04/12/2011 - 06/30/2011 | 10.00 | 0.02 | (0.13 | ) | (0.11 | ) | 0.00 | 0.00 | 0.00 | 0.00 | ||||||||||||||||||||||
Class A | ||||||||||||||||||||||||||||||||
06/30/2015 | 9.04 | 0.14 | (0.65 | ) | (0.51 | ) | (0.28 | ) | 0.00 | (0.08 | ) | (0.36 | ) | |||||||||||||||||||
06/30/2014 | 8.54 | 0.15 | 0.48 | 0.63 | (0.13 | ) | 0.00 | 0.00 | (0.13 | ) | ||||||||||||||||||||||
06/30/2013 | 8.68 | 0.23 | (0.12 | ) | 0.11 | (0.25 | ) | 0.00 | 0.00 | (0.25 | ) | |||||||||||||||||||||
06/30/2012 | 9.88 | 0.12 | (1.28 | ) | (1.16 | ) | (0.04 | ) | 0.00 | 0.00 | (0.04 | ) | ||||||||||||||||||||
04/12/2011 - 06/30/2011 | 10.00 | 0.02 | (0.14 | ) | (0.12 | ) | 0.00 | 0.00 | 0.00 | 0.00 | ||||||||||||||||||||||
Class C | ||||||||||||||||||||||||||||||||
06/30/2015 | 8.91 | 0.08 | (0.65 | ) | (0.57 | ) | (0.24 | ) | 0.00 | (0.08 | ) | (0.32 | ) | |||||||||||||||||||
06/30/2014 | 8.46 | 0.08 | 0.47 | 0.55 | (0.10 | ) | 0.00 | 0.00 | (0.10 | ) | ||||||||||||||||||||||
06/30/2013 | 8.62 | 0.15 | (0.09 | ) | 0.06 | (0.22 | ) | 0.00 | 0.00 | (0.22 | ) | |||||||||||||||||||||
06/30/2012 | 9.88 | 0.05 | (1.29 | ) | (1.24 | ) | (0.02 | ) | 0.00 | 0.00 | (0.02 | ) | ||||||||||||||||||||
04/12/2011 - 06/30/2011 | 10.00 | 0.00 | ^ | (0.12 | ) | (0.12 | ) | 0.00 | 0.00 | 0.00 | 0.00 | |||||||||||||||||||||
Class R | ||||||||||||||||||||||||||||||||
06/30/2015 | 8.99 | 0.12 | (0.66 | ) | (0.54 | ) | (0.27 | ) | 0.00 | (0.08 | ) | (0.35 | ) | |||||||||||||||||||
06/30/2014 | 8.51 | 0.14 | 0.46 | 0.60 | (0.12 | ) | 0.00 | 0.00 | (0.12 | ) | ||||||||||||||||||||||
06/30/2013 | 8.68 | 0.23 | (0.13 | ) | 0.10 | (0.27 | ) | 0.00 | 0.00 | (0.27 | ) | |||||||||||||||||||||
06/30/2012 | 9.88 | 0.09 | (1.27 | ) | (1.18 | ) | (0.02 | ) | 0.00 | 0.00 | (0.02 | ) | ||||||||||||||||||||
04/12/2011 - 06/30/2011 | 10.00 | 0.01 | (0.13 | ) | (0.12 | ) | 0.00 | 0.00 | 0.00 | 0.00 | ||||||||||||||||||||||
PIMCO EqS® Emerging Markets Fund | ||||||||||||||||||||||||||||||||
Institutional Class | ||||||||||||||||||||||||||||||||
06/30/2015 | $ | 9.05 | $ | 0.05 | $ | (0.46 | ) | $ | (0.41 | ) | $ | 0.00 | $ | 0.00 | $ | 0.00 | $ | 0.00 | ||||||||||||||
06/30/2014 | 8.26 | 0.04 | 0.75 | 0.79 | 0.00 | 0.00 | 0.00 | 0.00 | ||||||||||||||||||||||||
06/30/2013 | 7.97 | 0.13 | 0.25 | 0.38 | (0.09 | ) | 0.00 | 0.00 | (0.09 | ) | ||||||||||||||||||||||
06/30/2012 | 10.19 | 0.08 | (2.27 | ) | (2.19 | ) | (0.02 | ) | (0.01 | ) | 0.00 | (0.03 | ) | |||||||||||||||||||
03/22/2011 - 06/30/2011 | 10.00 | 0.05 | 0.14 | 0.19 | 0.00 | 0.00 | 0.00 | 0.00 | ||||||||||||||||||||||||
Class P | ||||||||||||||||||||||||||||||||
06/30/2015 | 9.02 | 0.01 | (0.40 | ) | (0.39 | ) | 0.00 | 0.00 | 0.00 | 0.00 | ||||||||||||||||||||||
06/30/2014 | 8.24 | (0.00 | )^ | 0.78 | 0.78 | 0.00 | 0.00 | 0.00 | 0.00 | |||||||||||||||||||||||
06/30/2013 | 7.97 | 0.33 | 0.03 | 0.36 | (0.09 | ) | 0.00 | 0.00 | (0.09 | ) | ||||||||||||||||||||||
06/30/2012 | 10.19 | 0.06 | (2.25 | ) | (2.19 | ) | (0.02 | ) | (0.01 | ) | 0.00 | (0.03 | ) | |||||||||||||||||||
03/22/2011 - 06/30/2011 | 10.00 | 0.04 | 0.15 | 0.19 | 0.00 | 0.00 | 0.00 | 0.00 | ||||||||||||||||||||||||
Administrative Class | ||||||||||||||||||||||||||||||||
06/30/2015 | 9.00 | 0.01 | (0.42 | ) | (0.41 | ) | 0.00 | 0.00 | 0.00 | 0.00 | ||||||||||||||||||||||
06/30/2014 | 8.23 | (0.02 | ) | 0.79 | 0.77 | 0.00 | 0.00 | 0.00 | 0.00 | |||||||||||||||||||||||
06/30/2013 | 7.96 | 0.11 | 0.24 | 0.35 | (0.08 | ) | 0.00 | 0.00 | (0.08 | ) | ||||||||||||||||||||||
06/30/2012 | 10.18 | 0.06 | (2.27 | ) | (2.21 | ) | (0.00 | )^ | (0.01 | ) | 0.00 | (0.01 | ) | |||||||||||||||||||
04/19/2011 - 06/30/2011 | 10.51 | 0.04 | (0.37 | ) | (0.33 | ) | 0.00 | 0.00 | 0.00 | 0.00 |
Please see footnotes on page 28.
22 | PIMCO EQUITY SERIES | See Accompanying Notes |
Table of Contents
Net Asset Value End of Year or Period | Total Return | Net Assets End of Year or Period (000s) | Ratio of Expenses to Average Net Assets | Ratio of Expenses to Average Net Assets Excluding Waivers | Ratio of Expenses to Average Net Assets Excluding Interest Expense and Dividends on Securities Sold Short | Ratio of Expenses to Average Net Assets Excluding Interest Expense and Dividends on Securities Sold Short and Waivers | Ratio of Net Investment Income (Loss) to Average Net Assets | Portfolio Turnover Rate** | ||||||||||||||||||||||||||
$ | 8.22 | (5.31 | )% | $ | 345 | 0.42 | % | 1.47 | % | 0.42 | % | 1.47 | % | 1.94 | % | 18 | % | |||||||||||||||||
9.08 | 7.61 | 1,580 | 0.38 | 1.46 | 0.38 | 1.46 | 1.92 | 20 | ||||||||||||||||||||||||||
8.58 | 1.53 | 1,998 | 0.45 | 1.46 | 0.45 | 1.46 | 2.62 | 53 | ||||||||||||||||||||||||||
8.69 | (11.69 | ) | 2,019 | 0.63 | 1.48 | 0.63 | 1.48 | 1.71 | 41 | |||||||||||||||||||||||||
9.90 | (1.00 | ) | 74 | 0.63 | * | 17.34 | * | 0.63 | * | 17.34 | * | 0.96 | * | 0 | ||||||||||||||||||||
8.17 | (5.49 | ) | 12 | 0.57 | 1.62 | 0.57 | 1.62 | 1.76 | 18 | |||||||||||||||||||||||||
9.03 | 7.31 | 23 | 0.53 | 1.61 | 0.53 | 1.61 | 2.13 | 20 | ||||||||||||||||||||||||||
8.55 | 1.35 | 2,051 | 0.60 | 1.61 | 0.60 | 1.61 | 1.60 | 53 | ||||||||||||||||||||||||||
8.69 | (11.75 | ) | 28 | 0.78 | 1.63 | 0.78 | 1.63 | 1.36 | 41 | |||||||||||||||||||||||||
9.89 | (1.30 | ) | 10 | 0.78 | * | 6.47 | * | 0.78 | * | 6.47 | * | 0.88 | * | 0 | ||||||||||||||||||||
8.20 | (5.71 | ) | 540 | 0.67 | 1.72 | 0.67 | 1.72 | 1.65 | 18 | |||||||||||||||||||||||||
9.07 | 7.46 | 2,466 | 0.63 | 1.71 | 0.63 | 1.71 | 1.78 | 20 | ||||||||||||||||||||||||||
8.57 | 1.17 | 5,669 | 0.70 | 1.71 | 0.70 | 1.71 | 2.23 | 53 | ||||||||||||||||||||||||||
8.70 | (11.77 | ) | 4,912 | 0.88 | 1.73 | 0.88 | 1.73 | 1.20 | 41 | |||||||||||||||||||||||||
9.89 | (1.10 | ) | 2,745 | 0.88 | * | 8.20 | * | 0.88 | * | 8.20 | * | 0.81 | * | 0 | ||||||||||||||||||||
8.17 | (5.61 | ) | 2,269 | 0.67 | 1.72 | 0.67 | 1.72 | 1.68 | 18 | |||||||||||||||||||||||||
9.04 | 7.49 | 7,874 | 0.63 | 1.71 | 0.63 | 1.71 | 1.70 | 20 | ||||||||||||||||||||||||||
8.54 | 1.12 | 12,333 | 0.70 | 1.71 | 0.70 | 1.71 | 2.46 | 53 | ||||||||||||||||||||||||||
8.68 | (11.72 | ) | 10,147 | 0.88 | 1.73 | 0.88 | 1.73 | 1.32 | 41 | |||||||||||||||||||||||||
9.88 | (1.20 | ) | 1,801 | 0.88 | * | 9.28 | * | 0.88 | * | 9.28 | * | 0.82 | * | 0 | ||||||||||||||||||||
8.02 | (6.34 | ) | 1,425 | 1.42 | 2.47 | 1.42 | 2.47 | 0.94 | 18 | |||||||||||||||||||||||||
8.91 | 6.56 | 3,799 | 1.38 | 2.46 | 1.38 | 2.46 | 0.96 | 20 | ||||||||||||||||||||||||||
8.46 | 0.56 | 5,101 | 1.45 | 2.46 | 1.45 | 2.46 | 1.68 | 53 | ||||||||||||||||||||||||||
8.62 | (12.51 | ) | 3,868 | 1.63 | 2.48 | 1.63 | 2.48 | 0.57 | 41 | |||||||||||||||||||||||||
9.88 | (1.20 | ) | 649 | 1.63 | * | 9.73 | * | 1.63 | * | 9.73 | * | 0.08 | * | 0 | ||||||||||||||||||||
8.10 | (5.92 | ) | 9 | 0.92 | 1.97 | 0.92 | 1.97 | 1.45 | 18 | |||||||||||||||||||||||||
8.99 | 7.17 | 9 | 0.88 | 1.96 | 0.88 | 1.96 | 1.61 | 20 | ||||||||||||||||||||||||||
8.51 | 0.96 | 30 | 0.95 | 1.96 | 0.95 | 1.96 | 2.47 | 53 | ||||||||||||||||||||||||||
8.68 | (11.98 | ) | 9 | 1.13 | 1.98 | 1.13 | 1.98 | 0.99 | 41 | |||||||||||||||||||||||||
9.88 | (1.20 | ) | 10 | 1.13 | * | 6.40 | * | 1.13 | * | 6.40 | * | 0.50 | * | 0 | ||||||||||||||||||||
$ | 8.64 | (4.53 | )% | $ | 492 | 1.26 | % | 1.47 | % | 1.26 | % | 1.47 | % | 0.57 | % | 85 | % | |||||||||||||||||
9.05 | 9.56 | 108,018 | 1.26 | 1.46 | 1.26 | 1.46 | 0.50 | 77 | ||||||||||||||||||||||||||
8.26 | 4.68 | 496,172 | 1.26 | 1.46 | 1.26 | 1.46 | 1.46 | 85 | ||||||||||||||||||||||||||
7.97 | (21.51 | ) | 514,884 | 1.25 | 1.46 | 1.25 | 1.45 | 0.94 | 92 | |||||||||||||||||||||||||
10.19 | 1.90 | 353,099 | 1.25 | * | 1.62 | * | 1.25 | * | 1.62 | * | 1.77 | * | 41 | |||||||||||||||||||||
8.63 | (4.32 | ) | 136 | 1.36 | 1.57 | 1.36 | 1.57 | 0.12 | 85 | |||||||||||||||||||||||||
9.02 | 9.47 | 70 | 1.36 | 1.56 | 1.36 | 1.56 | (0.00 | )† | 77 | |||||||||||||||||||||||||
8.24 | 4.46 | 7,615 | 1.36 | 1.56 | 1.36 | 1.56 | 3.81 | 85 | ||||||||||||||||||||||||||
7.97 | (21.52 | ) | 63 | 1.35 | 1.56 | 1.35 | 1.55 | 0.68 | 92 | |||||||||||||||||||||||||
10.19 | 1.90 | 37 | 1.35 | * | 1.94 | * | 1.35 | * | 1.94 | * | 1.42 | * | 41 | |||||||||||||||||||||
8.59 | (4.56 | ) | 3 | 1.51 | 1.72 | 1.51 | 1.72 | 0.13 | 85 | |||||||||||||||||||||||||
9.00 | 9.36 | 3 | 1.51 | 1.71 | 1.51 | 1.71 | (0.20 | ) | 77 | |||||||||||||||||||||||||
8.23 | 4.36 | 42 | 1.51 | 1.71 | 1.51 | 1.71 | 1.32 | 85 | ||||||||||||||||||||||||||
7.96 | (21.72 | ) | 34 | 1.50 | 1.72 | 1.50 | 1.72 | 0.74 | 92 | |||||||||||||||||||||||||
10.18 | (3.14 | ) | 10 | 1.50 | * | 1.90 | * | 1.50 | * | 1.90 | * | 1.72 | * | 41 |
Please see footnotes on page 28.
ANNUAL REPORT | JUNE 30, 2015 | 23 |
Table of Contents
Financial Highlights (Cont.)
Selected Per Share Data for the Year or Period Ended: | Net Asset Value Beginning of Year or Period | Net Investment Income (Loss) (a) | Net Realized/ Unrealized Gain (Loss) | Total from Investment Operations | Dividends from Net Investment Income | Distributions from Net Realized Capital Gains | Tax Basis Return of Capital | Total Distributions | ||||||||||||||||||||||||
PIMCO EqS® Emerging Markets Fund (Cont.) | ||||||||||||||||||||||||||||||||
Class D | ||||||||||||||||||||||||||||||||
06/30/2015 | $ | 8.95 | $ | 0.00 | $ | (0.41 | ) | $ | (0.41 | ) | $ | 0.00 | $ | 0.00 | $ | 0.00 | $ | 0.00 | ||||||||||||||
06/30/2014 | 8.20 | 0.03 | 0.72 | 0.75 | 0.00 | 0.00 | 0.00 | 0.00 | ||||||||||||||||||||||||
06/30/2013 | 7.93 | 0.09 | 0.26 | 0.35 | (0.08 | ) | 0.00 | 0.00 | (0.08 | ) | ||||||||||||||||||||||
06/30/2012 | 10.18 | 0.00 | ^ | (2.22 | ) | (2.22 | ) | (0.02 | ) | (0.01 | ) | 0.00 | (0.03 | ) | ||||||||||||||||||
03/22/2011 - 06/30/2011 | 10.00 | 0.06 | 0.12 | 0.18 | 0.00 | 0.00 | 0.00 | 0.00 | ||||||||||||||||||||||||
Class A | ||||||||||||||||||||||||||||||||
06/30/2015 | 8.96 | 0.01 | (0.43 | ) | (0.42 | ) | 0.00 | 0.00 | 0.00 | 0.00 | ||||||||||||||||||||||
06/30/2014 | 8.20 | 0.05 | 0.71 | 0.76 | 0.00 | 0.00 | 0.00 | 0.00 | ||||||||||||||||||||||||
06/30/2013 | 7.94 | 0.13 | 0.21 | 0.34 | (0.08 | ) | 0.00 | 0.00 | (0.08 | ) | ||||||||||||||||||||||
06/30/2012 | 10.18 | 0.08 | (2.31 | ) | (2.23 | ) | (0.00 | )^ | (0.01 | ) | 0.00 | (0.01 | ) | |||||||||||||||||||
03/22/2011 - 06/30/2011 | 10.00 | 0.05 | 0.13 | 0.18 | 0.00 | 0.00 | 0.00 | 0.00 | ||||||||||||||||||||||||
Class C | ||||||||||||||||||||||||||||||||
06/30/2015 | 8.79 | (0.06 | ) | (0.41 | ) | (0.47 | ) | 0.00 | 0.00 | 0.00 | 0.00 | |||||||||||||||||||||
06/30/2014 | 8.11 | (0.01 | ) | 0.69 | 0.68 | 0.00 | 0.00 | 0.00 | 0.00 | |||||||||||||||||||||||
06/30/2013 | 7.88 | 0.07 | 0.21 | 0.28 | (0.05 | ) | 0.00 | 0.00 | (0.05 | ) | ||||||||||||||||||||||
06/30/2012 | 10.17 | 0.01 | (2.29 | ) | (2.28 | ) | (0.00 | )^ | (0.01 | ) | 0.00 | (0.01 | ) | |||||||||||||||||||
03/22/2011 - 06/30/2011 | 10.00 | 0.03 | 0.14 | 0.17 | 0.00 | 0.00 | 0.00 | 0.00 | ||||||||||||||||||||||||
Class R | ||||||||||||||||||||||||||||||||
06/30/2015 | 8.92 | (0.03 | ) | (0.40 | ) | (0.43 | ) | 0.00 | 0.00 | 0.00 | 0.00 | |||||||||||||||||||||
06/30/2014 | 8.19 | (0.02 | ) | 0.75 | 0.73 | 0.00 | 0.00 | 0.00 | 0.00 | |||||||||||||||||||||||
06/30/2013 | 7.93 | 0.08 | 0.24 | 0.32 | (0.06 | ) | 0.00 | 0.00 | (0.06 | ) | ||||||||||||||||||||||
06/30/2012 | 10.18 | 0.01 | (2.25 | ) | (2.24 | ) | (0.00 | )^ | (0.01 | ) | 0.00 | (0.01 | ) | |||||||||||||||||||
03/22/2011 - 06/30/2011 | 10.00 | 0.06 | 0.12 | 0.18 | 0.00 | 0.00 | 0.00 | 0.00 | ||||||||||||||||||||||||
PIMCO EqS® Long/Short Fund | ||||||||||||||||||||||||||||||||
Institutional Class | �� | |||||||||||||||||||||||||||||||
06/30/2015 | $ | 11.92 | $ | 0.02 | $ | 0.18 | $ | 0.20 | $ | 0.00 | $ | (0.05 | ) | $ | 0.00 | $ | (0.05 | ) | ||||||||||||||
06/30/2014 | 11.09 | (0.10 | ) | 1.60 | 1.50 | (0.06 | ) | (0.61 | ) | 0.00 | (0.67 | ) | ||||||||||||||||||||
06/30/2013 | 9.71 | 0.15 | 1.27 | 1.42 | (0.04 | ) | 0.00 | 0.00 | (0.04 | ) | ||||||||||||||||||||||
04/20/2012 - 06/30/2012 | 10.00 | (0.02 | ) | (0.27 | ) | (0.29 | ) | 0.00 | 0.00 | 0.00 | 0.00 | |||||||||||||||||||||
Class P | ||||||||||||||||||||||||||||||||
06/30/2015 | 11.88 | 0.02 | 0.17 | 0.19 | 0.00 | (0.05 | ) | 0.00 | (0.05 | ) | ||||||||||||||||||||||
06/30/2014 | 11.08 | (0.08 | ) | 1.56 | 1.48 | (0.07 | ) | (0.61 | ) | 0.00 | (0.68 | ) | ||||||||||||||||||||
06/30/2013 | 9.70 | (0.05 | ) | 1.47 | 1.42 | (0.04 | ) | 0.00 | 0.00 | (0.04 | ) | |||||||||||||||||||||
04/30/2012 - 06/30/2012 | 10.00 | (0.02 | ) | (0.28 | ) | (0.30 | ) | 0.00 | 0.00 | 0.00 | 0.00 | |||||||||||||||||||||
Class D | ||||||||||||||||||||||||||||||||
06/30/2015 | 11.84 | (0.02 | ) | 0.18 | 0.16 | 0.00 | (0.05 | ) | 0.00 | (0.05 | ) | |||||||||||||||||||||
06/30/2014 | 11.06 | (0.12 | ) | 1.57 | 1.45 | (0.06 | ) | (0.61 | ) | 0.00 | (0.67 | ) | ||||||||||||||||||||
06/30/2013 | 9.70 | (0.10 | ) | 1.48 | 1.38 | (0.02 | ) | 0.00 | 0.00 | (0.02 | ) | |||||||||||||||||||||
04/30/2012 - 06/30/2012 | 10.00 | (0.03 | ) | (0.27 | ) | (0.30 | ) | 0.00 | 0.00 | 0.00 | 0.00 | |||||||||||||||||||||
Class A | ||||||||||||||||||||||||||||||||
06/30/2015 | 11.83 | (0.02 | ) | 0.18 | 0.16 | 0.00 | (0.05 | ) | 0.00 | (0.05 | ) | |||||||||||||||||||||
06/30/2014 | 11.05 | (0.12 | ) | 1.57 | 1.45 | (0.06 | ) | (0.61 | ) | 0.00 | (0.67 | ) | ||||||||||||||||||||
06/30/2013 | 9.70 | (0.00 | )^ | 1.38 | 1.38 | (0.03 | ) | 0.00 | 0.00 | (0.03 | ) | |||||||||||||||||||||
04/30/2012 - 06/30/2012 | 10.00 | (0.03 | ) | (0.27 | ) | (0.30 | ) | 0.00 | 0.00 | 0.00 | 0.00 | |||||||||||||||||||||
Class C | ||||||||||||||||||||||||||||||||
06/30/2015 | 11.67 | (0.11 | ) | 0.18 | 0.07 | 0.00 | (0.05 | ) | 0.00 | (0.05 | ) | |||||||||||||||||||||
06/30/2014 | 10.98 | (0.20 | ) | 1.55 | 1.35 | (0.05 | ) | (0.61 | ) | 0.00 | (0.66 | ) | ||||||||||||||||||||
06/30/2013 | 9.69 | 0.01 | 1.29 | 1.30 | (0.01 | ) | 0.00 | 0.00 | (0.01 | ) | ||||||||||||||||||||||
04/30/2012 - 06/30/2012 | 10.00 | (0.04 | ) | (0.27 | ) | (0.31 | ) | 0.00 | 0.00 | 0.00 | 0.00 |
Please see footnotes on page 28.
24 | PIMCO EQUITY SERIES | See Accompanying Notes |
Table of Contents
Net Asset Value End of Year or Period | Total Return | Net Assets End of Year or Period (000s) | Ratio of Expenses to Average Net Assets | Ratio of Expenses to Average Net Assets Excluding Waivers | Ratio of Expenses to Average Net Assets Excluding Interest Expense and Dividends on Securities Sold Short | Ratio of Expenses to Average Net Assets Excluding Interest Expense and Dividends on Securities Sold Short and Waivers | Ratio of Net Investment Income (Loss) to Average Net Assets | Portfolio Turnover Rate** | ||||||||||||||||||||||||||
$ | 8.54 | (4.58 | )% | $ | 640 | 1.61 | % | 1.82 | % | 1.61 | % | 1.82 | % | 0.02 | % | 85 | % | |||||||||||||||||
8.95 | 9.15 | 827 | 1.61 | 1.81 | 1.61 | 1.81 | 0.32 | 77 | ||||||||||||||||||||||||||
8.20 | 4.31 | 1,097 | 1.61 | 1.81 | 1.61 | 1.81 | 0.99 | 85 | ||||||||||||||||||||||||||
7.93 | (21.83 | ) | 989 | 1.60 | 1.82 | 1.60 | 1.81 | (0.02 | ) | 92 | ||||||||||||||||||||||||
10.18 | 1.80 | 1,080 | 1.60 | * | 2.11 | * | 1.60 | * | 2.11 | * | 1.98 | * | 41 | |||||||||||||||||||||
8.54 | (4.69 | ) | 2,247 | 1.61 | 1.82 | 1.61 | 1.82 | 0.13 | 85 | |||||||||||||||||||||||||
8.96 | 9.27 | 6,393 | 1.61 | 1.81 | 1.61 | 1.81 | 0.61 | 77 | ||||||||||||||||||||||||||
8.20 | 4.23 | 4,324 | 1.61 | 1.81 | 1.61 | 1.81 | 1.51 | 85 | ||||||||||||||||||||||||||
7.94 | (21.89 | ) | 2,469 | 1.60 | 1.81 | 1.60 | 1.80 | 0.90 | 92 | |||||||||||||||||||||||||
10.18 | 1.80 | 764 | 1.60 | * | 2.02 | * | 1.60 | * | 2.02 | * | 1.89 | * | 41 | |||||||||||||||||||||
8.32 | (5.35 | ) | 1,204 | 2.36 | 2.57 | 2.36 | 2.57 | (0.73 | ) | 85 | ||||||||||||||||||||||||
8.79 | 8.38 | 2,028 | 2.36 | 2.56 | 2.36 | 2.56 | (0.12 | ) | 77 | |||||||||||||||||||||||||
8.11 | 3.54 | 1,371 | 2.36 | 2.56 | 2.36 | 2.56 | 0.83 | 85 | ||||||||||||||||||||||||||
7.88 | (22.43 | ) | 675 | 2.35 | 2.57 | 2.35 | 2.56 | 0.12 | 92 | |||||||||||||||||||||||||
10.17 | 1.70 | 98 | 2.35 | * | 2.80 | * | 2.35 | * | 2.80 | * | 0.98 | * | 41 | |||||||||||||||||||||
8.49 | (4.82 | ) | 9 | 1.86 | 2.07 | 1.86 | 2.07 | (0.29 | ) | 85 | ||||||||||||||||||||||||
8.92 | 8.91 | 10 | 1.86 | 2.06 | 1.86 | 2.06 | (0.20 | ) | 77 | |||||||||||||||||||||||||
8.19 | 4.04 | 25 | 1.86 | 2.06 | 1.86 | 2.06 | 0.92 | 85 | ||||||||||||||||||||||||||
7.93 | (22.01 | ) | 24 | 1.85 | 2.07 | 1.85 | 2.06 | 0.06 | 92 | |||||||||||||||||||||||||
10.18 | 1.80 | 39 | 1.85 | * | 2.34 | * | 1.85 | * | 2.34 | * | 1.97 | * | 41 | |||||||||||||||||||||
$ | 12.07 | 1.74 | % | $ | 299,808 | 1.91 | % | 1.92 | % | 1.49 | % | 1.50 | % | 0.20 | % | 763 | % | |||||||||||||||||
11.92 | 13.59 | 545,346 | 2.02 | 2.04 | 1.48 | 1.50 | (0.82 | ) | 522 | |||||||||||||||||||||||||
11.09 | 14.66 | 329,610 | 2.65 | 2.75 | 1.40 | 1.50 | 1.45 | 528 | ||||||||||||||||||||||||||
9.71 | (2.90 | ) | 212,229 | 1.52 | * | 2.41 | * | 1.40 | * | 2.29 | * | (1.30 | )* | 113 | ||||||||||||||||||||
12.02 | 1.66 | 207,511 | 2.01 | 2.02 | 1.59 | 1.60 | 0.16 | 763 | ||||||||||||||||||||||||||
11.88 | 13.40 | 277,661 | 2.00 | 2.02 | 1.58 | 1.60 | (0.71 | ) | 522 | |||||||||||||||||||||||||
11.08 | 14.77 | 15,664 | 3.94 | 4.04 | 1.50 | 1.60 | (0.48 | ) | 528 | |||||||||||||||||||||||||
9.70 | (3.00 | ) | 10 | 1.62 | * | 2.40 | * | 1.50 | * | 2.28 | * | (1.34 | )* | 113 | ||||||||||||||||||||
11.95 | 1.41 | 44,227 | 2.26 | 2.27 | 1.84 | 1.85 | (0.19 | ) | 763 | |||||||||||||||||||||||||
11.84 | 13.13 | 77,934 | 2.31 | 2.33 | 1.83 | 1.85 | (1.01 | ) | 522 | |||||||||||||||||||||||||
11.06 | 14.31 | 12,421 | 3.95 | 4.05 | 1.75 | 1.85 | (0.97 | ) | 528 | |||||||||||||||||||||||||
9.70 | (3.00 | ) | 111 | 1.87 | * | 3.97 | * | 1.77 | * | 3.87 | * | (1.72 | )* | 113 | ||||||||||||||||||||
11.94 | 1.41 | 172,843 | 2.26 | 2.27 | 1.84 | 1.85 | (0.18 | ) | 763 | |||||||||||||||||||||||||
11.83 | 13.17 | 382,160 | 2.27 | 2.29 | 1.83 | 1.85 | (0.98 | ) | 522 | |||||||||||||||||||||||||
11.05 | 14.27 | 24,759 | 3.62 | 3.72 | 1.75 | 1.85 | (0.03 | ) | 528 | |||||||||||||||||||||||||
9.70 | (3.00 | ) | 1,219 | 1.87 | * | 3.17 | * | 1.74 | * | 3.04 | * | (1.70 | )* | 113 | ||||||||||||||||||||
11.69 | 0.66 | 140,719 | 3.01 | 3.02 | 2.59 | 2.60 | (0.95 | ) | 763 | |||||||||||||||||||||||||
11.67 | 12.26 | 214,485 | 3.00 | 3.02 | 2.58 | 2.60 | (1.71 | ) | 522 | |||||||||||||||||||||||||
10.98 | 13.41 | 9,530 | 4.04 | 4.14 | 2.50 | 2.60 | 0.13 | 528 | ||||||||||||||||||||||||||
9.69 | (3.10 | ) | 53 | 2.62 | * | 4.50 | * | 2.52 | * | 4.40 | * | (2.46 | )* | 113 |
Please see footnotes on page 28.
ANNUAL REPORT | JUNE 30, 2015 | 25 |
Table of Contents
Financial Highlights (Cont.)
Selected Per Share Data for the Year or Period Ended: | Net Asset Value Beginning of Year or Period | Net Investment Income (Loss) (a) | Net Realized/ Unrealized Gain (Loss) | Total from Investment Operations | Dividends from Net Investment Income | Distributions from Net Realized Capital Gains | Total Distributions | |||||||||||||||||||||
PIMCO Global Dividend Fund | ||||||||||||||||||||||||||||
Institutional Class | ||||||||||||||||||||||||||||
06/30/2015 | $ | 12.81 | $ | 0.30 | $ | (0.48 | ) | $ | (0.18 | ) | $ | (0.26 | ) | $ | (5.03 | ) | $ | (5.29 | ) | |||||||||
06/30/2014 | 11.87 | 0.39 | 1.65 | 2.04 | (0.48 | ) | (0.62 | ) | (1.10 | ) | ||||||||||||||||||
06/30/2013 | 10.47 | 0.43 | 1.37 | 1.80 | (0.37 | ) | (0.03 | ) | (0.40 | ) | ||||||||||||||||||
12/14/2011 - 06/30/2012 | 10.00 | 0.28 | 0.42 | 0.70 | (0.23 | ) | 0.00 | (0.23 | ) | |||||||||||||||||||
Class P | ||||||||||||||||||||||||||||
06/30/2015 | 12.82 | 0.26 | (0.45 | ) | (0.19 | ) | (0.25 | ) | (5.03 | ) | (5.28 | ) | ||||||||||||||||
06/30/2014 | 11.88 | 0.42 | 1.61 | 2.03 | (0.47 | ) | (0.62 | ) | (1.09 | ) | ||||||||||||||||||
06/30/2013 | 10.48 | 0.47 | 1.32 | 1.79 | (0.36 | ) | (0.03 | ) | (0.39 | ) | ||||||||||||||||||
12/14/2011 - 06/30/2012 | 10.00 | 0.29 | 0.41 | 0.70 | (0.22 | ) | 0.00 | (0.22 | ) | |||||||||||||||||||
Class D | ||||||||||||||||||||||||||||
06/30/2015 | 12.81 | 0.25 | (0.46 | ) | (0.21 | ) | (0.22 | ) | (5.03 | ) | (5.25 | ) | ||||||||||||||||
06/30/2014 | 11.87 | 0.39 | 1.61 | 2.00 | (0.44 | ) | (0.62 | ) | (1.06 | ) | ||||||||||||||||||
06/30/2013 | 10.48 | 0.40 | 1.36 | 1.76 | (0.34 | ) | (0.03 | ) | (0.37 | ) | ||||||||||||||||||
12/14/2011 - 06/30/2012 | 10.00 | 0.30 | 0.39 | 0.69 | (0.21 | ) | 0.00 | (0.21 | ) | |||||||||||||||||||
Class A | ||||||||||||||||||||||||||||
06/30/2015 | 12.82 | 0.25 | (0.47 | ) | (0.22 | ) | (0.22 | ) | (5.03 | ) | (5.25 | ) | ||||||||||||||||
06/30/2014 | 11.88 | 0.39 | 1.61 | 2.00 | (0.44 | ) | (0.62 | ) | (1.06 | ) | ||||||||||||||||||
06/30/2013 | 10.48 | 0.42 | 1.35 | 1.77 | (0.34 | ) | (0.03 | ) | (0.37 | ) | ||||||||||||||||||
12/14/2011 - 06/30/2012 | 10.00 | 0.27 | 0.42 | 0.69 | (0.21 | ) | 0.00 | (0.21 | ) | |||||||||||||||||||
Class C | ||||||||||||||||||||||||||||
06/30/2015 | 12.77 | 0.18 | (0.46 | ) | (0.28 | ) | (0.15 | ) | (5.03 | ) | (5.18 | ) | ||||||||||||||||
06/30/2014 | 11.84 | 0.30 | 1.60 | 1.90 | (0.35 | ) | (0.62 | ) | (0.97 | ) | ||||||||||||||||||
06/30/2013 | 10.45 | 0.36 | 1.32 | 1.68 | (0.26 | ) | (0.03 | ) | (0.29 | ) | ||||||||||||||||||
12/14/2011 - 06/30/2012 | 10.00 | 0.23 | 0.39 | 0.62 | (0.17 | ) | 0.00 | (0.17 | ) | |||||||||||||||||||
Class R | ||||||||||||||||||||||||||||
06/30/2015 | 12.81 | 0.21 | (0.45 | ) | (0.24 | ) | (0.20 | ) | (5.03 | ) | (5.23 | ) | ||||||||||||||||
06/30/2014 | 11.87 | 0.38 | 1.59 | 1.97 | (0.41 | ) | (0.62 | ) | (1.03 | ) | ||||||||||||||||||
06/30/2013 | 10.47 | 0.36 | 1.38 | 1.74 | (0.31 | ) | (0.03 | ) | (0.34 | ) | ||||||||||||||||||
12/14/2011 - 06/30/2012 | 10.00 | 0.18 | 0.48 | 0.66 | (0.19 | ) | 0.00 | (0.19 | ) | |||||||||||||||||||
PIMCO International Dividend Fund | ||||||||||||||||||||||||||||
Institutional Class | ||||||||||||||||||||||||||||
12/15/2014 - 06/30/2015 | $ | 10.00 | $ | 0.19 | $ | 0.46 | $ | 0.65 | $ | (0.16 | ) | $ | 0.00 | $ | (0.16 | ) | ||||||||||||
Class P | ||||||||||||||||||||||||||||
12/15/2014 - 06/30/2015 | 10.00 | 0.30 | 0.35 | 0.65 | (0.16 | ) | 0.00 | (0.16 | ) | |||||||||||||||||||
Class D | ||||||||||||||||||||||||||||
12/15/2014 - 06/30/2015 | 10.00 | 0.24 | 0.39 | 0.63 | (0.14 | ) | 0.00 | (0.14 | ) | |||||||||||||||||||
Class A | ||||||||||||||||||||||||||||
12/15/2014 - 06/30/2015 | 10.00 | 0.26 | 0.38 | 0.64 | (0.14 | ) | 0.00 | (0.14 | ) | |||||||||||||||||||
Class C | ||||||||||||||||||||||||||||
12/15/2014 - 06/30/2015 | 10.00 | 0.21 | 0.38 | 0.59 | (0.10 | ) | 0.00 | (0.10 | ) | |||||||||||||||||||
PIMCO U.S. Dividend Fund | ||||||||||||||||||||||||||||
Institutional Class | ||||||||||||||||||||||||||||
12/15/2014 - 06/30/2015 | $ | 10.00 | $ | 0.16 | $ | 0.09 | $ | 0.25 | $ | (0.15 | ) | $ | 0.00 | $ | (0.15 | ) | ||||||||||||
Class P | ||||||||||||||||||||||||||||
12/15/2014 - 06/30/2015 | 10.00 | 0.15 | 0.08 | 0.23 | (0.14 | ) | 0.00 | (0.14 | ) | |||||||||||||||||||
Class D | ||||||||||||||||||||||||||||
12/15/2014 - 06/30/2015 | 10.00 | 0.09 | 0.13 | 0.22 | (0.13 | ) | 0.00 | (0.13 | ) | |||||||||||||||||||
Class A | ||||||||||||||||||||||||||||
12/15/2014 - 06/30/2015 | 10.00 | 0.15 | 0.09 | 0.24 | (0.13 | ) | 0.00 | (0.13 | ) | |||||||||||||||||||
Class C | ||||||||||||||||||||||||||||
12/15/2014 - 06/30/2015 | 10.00 | 0.11 | 0.08 | 0.19 | (0.09 | ) | 0.00 | (0.09 | ) |
Please see footnotes on page 28.
26 | PIMCO EQUITY SERIES | See Accompanying Notes |
Table of Contents
Net Asset Value End of Year or Period | Total Return | Net Assets End of Year or Period (000s) | Ratio of Expenses to Average Net Assets | Ratio of Expenses to Average Net Assets Excluding Waivers | Ratio of Expenses to Average Net Assets Excluding Interest Expense and Dividends on Securities Sold Short | Ratio of Expenses to Average Net Assets Excluding Interest Expense and Dividends on Securities Sold Short and Waivers | Ratio of Net Investment Income (Loss) to Average Net Assets | Portfolio Turnover Rate** | ||||||||||||||||||||||||||
$ | 7.34 | (0.43 | )% | $ | 58,212 | 0.84 | % | 1.01 | % | 0.84 | % | 1.01 | % | 2.99 | % | 81 | % | |||||||||||||||||
12.81 | 17.91 | 302,088 | 0.84 | 1.00 | 0.84 | 1.00 | 3.20 | 95 | ||||||||||||||||||||||||||
11.87 | 17.32 | 579,198 | 0.83 | 1.00 | 0.83 | 1.00 | 3.74 | 108 | ||||||||||||||||||||||||||
10.47 | 6.95 | 315,513 | 0.83 | * | 1.20 | * | 0.83 | * | 1.20 | * | 4.98 | * | 21 | |||||||||||||||||||||
7.35 | (0.48 | ) | 2,604 | 0.94 | 1.11 | 0.94 | 1.11 | 2.76 | 81 | |||||||||||||||||||||||||
12.82 | 17.84 | 3,652 | 0.94 | 1.10 | 0.94 | 1.10 | 3.38 | 95 | ||||||||||||||||||||||||||
11.88 | 17.21 | 1,435 | 0.93 | 1.10 | 0.93 | 1.10 | 3.98 | 108 | ||||||||||||||||||||||||||
10.48 | 7.00 | 71 | 0.93 | * | 1.33 | * | 0.93 | * | 1.33 | * | 5.11 | * | 21 | |||||||||||||||||||||
7.35 | (0.66 | ) | 2,299 | 1.19 | 1.36 | 1.19 | 1.36 | 2.42 | 81 | |||||||||||||||||||||||||
12.81 | 17.57 | 7,709 | 1.19 | 1.35 | 1.19 | 1.35 | 3.17 | 95 | ||||||||||||||||||||||||||
11.87 | 16.85 | 7,801 | 1.18 | 1.35 | 1.18 | 1.35 | 3.41 | 108 | ||||||||||||||||||||||||||
10.48 | 6.86 | 1,251 | 1.18 | * | 1.67 | * | 1.18 | * | 1.67 | * | 5.25 | * | 21 | |||||||||||||||||||||
7.35 | (0.74 | ) | 37,645 | 1.19 | 1.36 | 1.19 | 1.36 | 2.68 | 81 | |||||||||||||||||||||||||
12.82 | 17.56 | 59,540 | 1.19 | 1.35 | 1.19 | 1.35 | 3.14 | 95 | ||||||||||||||||||||||||||
11.88 | 16.95 | 27,729 | 1.18 | 1.35 | 1.18 | 1.35 | 3.63 | 108 | ||||||||||||||||||||||||||
10.48 | 6.86 | 2,529 | 1.18 | * | 1.51 | * | 1.18 | 1.51 | * | 4.74 | * | 21 | ||||||||||||||||||||||
7.31 | (1.44 | ) | 27,097 | 1.94 | 2.11 | 1.94 | 2.11 | 1.94 | 81 | |||||||||||||||||||||||||
12.77 | 16.69 | 39,359 | 1.94 | 2.10 | 1.94 | 2.10 | 2.45 | 95 | ||||||||||||||||||||||||||
11.84 | 16.14 | 14,150 | 1.93 | 2.10 | 1.93 | 2.10 | 3.05 | 108 | ||||||||||||||||||||||||||
10.45 | 6.19 | 1,275 | 1.93 | * | 2.26 | * | 1.93 | * | 2.26 | * | 4.11 | * | 21 | |||||||||||||||||||||
7.34 | (1.00 | ) | 57 | 1.44 | 1.61 | 1.44 | 1.61 | 2.09 | 81 | |||||||||||||||||||||||||
12.81 | 17.29 | 192 | 1.44 | 1.60 | 1.44 | 1.60 | 3.08 | 95 | ||||||||||||||||||||||||||
11.87 | 16.71 | 100 | 1.43 | 1.60 | 1.43 | 1.60 | 3.05 | 108 | ||||||||||||||||||||||||||
10.47 | 6.63 | 11 | 1.43 | * | 1.67 | * | 1.43 | * | 1.67 | * | 3.24 | * | 21 | |||||||||||||||||||||
$ | 10.49 | 6.53 | % | $ | 4,634 | 0.84 | %* | 2.64 | %* | 0.84 | %* | 2.64 | %* | 3.28 | %* | 69 | % | |||||||||||||||||
10.49 | 6.48 | 1,727 | 0.94 | * | 2.74 | * | 0.94 | * | 2.74 | * | 5.12 | * | 69 | |||||||||||||||||||||
10.49 | 6.33 | 239 | 1.19 | * | 2.99 | * | 1.19 | * | 2.99 | * | 4.03 | * | 69 | |||||||||||||||||||||
10.50 | 6.44 | 1,000 | 1.19 | * | 2.99 | * | 1.19 | * | 2.99 | * | 4.49 | * | 69 | |||||||||||||||||||||
10.49 | 5.91 | 594 | 1.94 | * | 3.74 | * | 1.94 | * | 3.74 | * | 3.56 | * | 69 | |||||||||||||||||||||
$ | 10.10 | 2.44 | % | $ | 4,191 | 0.75 | %* | 2.68 | %* | 0.75 | %* | 2.68 | %* | 2.89 | %* | 41 | % | |||||||||||||||||
10.09 | 2.28 | 10 | 0.85 | * | 2.78 | * | 0.85 | * | 2.78 | * | 2.68 | * | 41 | |||||||||||||||||||||
10.09 | 2.14 | 19 | 1.10 | * | 3.03 | * | 1.10 | * | 3.03 | * | 1.54 | * | 41 | |||||||||||||||||||||
10.11 | 2.34 | 750 | 1.10 | * | 3.03 | * | 1.10 | * | 3.03 | * | 2.55 | * | 41 | |||||||||||||||||||||
10.10 | 1.83 | 606 | 1.85 | * | 3.78 | * | 1.85 | * | 3.78 | * | 1.96 | * | 41 |
Please see footnotes on page 28.
ANNUAL REPORT | JUNE 30, 2015 | 27 |
Table of Contents
Financial Highlights (Cont.)
Selected Per Share Data for the Year or Period Ended: | Net Asset Value Beginning of Year or Period | Net Investment Income (Loss) (a) | Net Realized/ Unrealized Gain (Loss) | Total from Investment Operations | Dividends from Net Investment Income | Distributions from Net Realized Capital Gains | Total Distributions | |||||||||||||||||||||
PIMCO EqS Pathfinder Fund® (Consolidated) | ||||||||||||||||||||||||||||
Institutional Class | ||||||||||||||||||||||||||||
06/30/2015 | $ | 13.03 | $ | 0.18 | $ | (0.65 | ) | $ | (0.47 | ) | $ | (0.23 | ) | $ | (2.60 | ) | $ | (2.83 | ) | |||||||||
06/30/2014 | 10.82 | 0.23 | 2.39 | 2.62 | (0.18 | ) | (0.23 | ) | (0.41 | ) | ||||||||||||||||||
06/30/2013 | 10.11 | 0.25 | 0.77 | 1.02 | (0.31 | ) | 0.00 | (0.31 | ) | |||||||||||||||||||
06/30/2012 | 10.65 | 0.18 | (0.62 | ) | (0.44 | ) | (0.07 | ) | (0.03 | ) | (0.10 | ) | ||||||||||||||||
06/30/2011 | 9.23 | 0.19 | 1.34 | 1.53 | (0.09 | ) | (0.02 | ) | (0.11 | ) | ||||||||||||||||||
Class P | ||||||||||||||||||||||||||||
06/30/2015 | 12.99 | 0.16 | (0.63 | ) | (0.47 | ) | (0.23 | ) | (2.60 | ) | (2.83 | ) | ||||||||||||||||
06/30/2014 | 10.80 | 0.21 | 2.38 | 2.59 | (0.17 | ) | (0.23 | ) | (0.40 | ) | ||||||||||||||||||
06/30/2013 | 10.09 | 0.25 | 0.76 | 1.01 | (0.30 | ) | 0.00 | (0.30 | ) | |||||||||||||||||||
06/30/2012 | 10.64 | 0.17 | (0.63 | ) | (0.46 | ) | (0.06 | ) | (0.03 | ) | (0.09 | ) | ||||||||||||||||
06/30/2011 | 9.23 | 0.18 | 1.34 | 1.52 | (0.09 | ) | (0.02 | ) | (0.11 | ) | ||||||||||||||||||
Class D | ||||||||||||||||||||||||||||
06/30/2015 | 12.91 | 0.13 | (0.64 | ) | (0.51 | ) | (0.21 | ) | (2.60 | ) | (2.81 | ) | ||||||||||||||||
06/30/2014 | 10.74 | 0.20 | 2.35 | 2.55 | (0.15 | ) | (0.23 | ) | (0.38 | ) | ||||||||||||||||||
06/30/2013 | 10.05 | 0.21 | 0.77 | 0.98 | (0.29 | ) | 0.00 | (0.29 | ) | |||||||||||||||||||
06/30/2012 | 10.61 | 0.13 | (0.61 | ) | (0.48 | ) | (0.05 | ) | (0.03 | ) | (0.08 | ) | ||||||||||||||||
06/30/2011 | 9.21 | 0.16 | 1.34 | 1.50 | (0.08 | ) | (0.02 | ) | (0.10 | ) | ||||||||||||||||||
Class A | ||||||||||||||||||||||||||||
06/30/2015 | 12.95 | 0.13 | (0.64 | ) | (0.51 | ) | (0.21 | ) | (2.60 | ) | (2.81 | ) | ||||||||||||||||
06/30/2014 | 10.78 | 0.21 | 2.35 | 2.56 | (0.16 | ) | (0.23 | ) | (0.39 | ) | ||||||||||||||||||
06/30/2013 | 10.08 | 0.22 | 0.76 | 0.98 | (0.28 | ) | 0.00 | (0.28 | ) | |||||||||||||||||||
06/30/2012 | 10.64 | 0.14 | (0.62 | ) | (0.48 | ) | (0.05 | ) | (0.03 | ) | (0.08 | ) | ||||||||||||||||
06/30/2011 | 9.22 | 0.17 | 1.33 | 1.50 | (0.06 | ) | (0.02 | ) | (0.08 | ) | ||||||||||||||||||
Class C | ||||||||||||||||||||||||||||
06/30/2015 | 12.68 | 0.05 | (0.63 | ) | (0.58 | ) | (0.18 | ) | (2.60 | ) | (2.78 | ) | ||||||||||||||||
06/30/2014 | 10.60 | 0.13 | 2.30 | 2.43 | (0.12 | ) | (0.23 | ) | (0.35 | ) | ||||||||||||||||||
06/30/2013 | 9.96 | 0.13 | 0.75 | 0.88 | (0.24 | ) | 0.00 | (0.24 | ) | |||||||||||||||||||
06/30/2012 | 10.55 | 0.06 | (0.61 | ) | (0.55 | ) | (0.01 | ) | (0.03 | ) | (0.04 | ) | ||||||||||||||||
06/30/2011 | 9.21 | 0.11 | 1.31 | 1.42 | (0.06 | ) | (0.02 | ) | (0.08 | ) | ||||||||||||||||||
Class R | ||||||||||||||||||||||||||||
06/30/2015 | 12.79 | 0.11 | (0.64 | ) | (0.53 | ) | (0.21 | ) | (2.60 | ) | (2.81 | ) | ||||||||||||||||
06/30/2014 | 10.66 | 0.24 | 2.26 | 2.50 | (0.14 | ) | (0.23 | ) | (0.37 | ) | ||||||||||||||||||
06/30/2013 | 10.00 | 0.20 | 0.74 | 0.94 | (0.28 | ) | 0.00 | (0.28 | ) | |||||||||||||||||||
06/30/2012 | 10.59 | 0.07 | (0.59 | ) | (0.52 | ) | (0.04 | ) | (0.03 | ) | (0.07 | ) | ||||||||||||||||
06/30/2011 | 9.21 | 0.12 | 1.35 | 1.47 | (0.07 | ) | (0.02 | ) | (0.09 | ) |
* | Annualized |
** | The ratio excludes PIMCO Short-Term Floating NAV Portfolio. |
^ | Reflects an amount rounding to less than one cent. |
† | Reflects an amount rounding to less than 0.005%. |
(a) | Per share amounts based on average number of shares outstanding during the year or period. |
28 | PIMCO EQUITY SERIES | See Accompanying Notes |
Table of Contents
Net Asset Value End of Year or Period | Total Return | Net Assets End of Year or Period (000s) | Ratio of Expenses to Average Net Assets | Ratio of Expenses to Average Net Assets Excluding Waivers | Ratio of Expenses to Average Net Assets Excluding Interest Expense and Dividends on Securities Sold Short | Ratio of Expenses to Average Net Assets Excluding Interest Expense and Dividends on Securities Sold Short and Waivers | Ratio of Net Investment Income (Loss) to Average Net Assets | Portfolio Turnover Rate** | ||||||||||||||||||||||||||
$ | 9.73 | (2.36 | )% | $ | 24,301 | 0.91 | % | 1.08 | % | 0.89 | % | 1.06 | % | 1.64 | % | 43 | % | |||||||||||||||||
13.03 | 24.62 | 1,255,320 | 0.89 | 1.06 | 0.89 | 1.06 | 1.96 | 61 | ||||||||||||||||||||||||||
10.82 | 10.19 | 1,691,850 | 0.90 | 1.10 | 0.89 | 1.09 | 2.38 | 29 | ||||||||||||||||||||||||||
10.11 | (4.09 | ) | 1,930,637 | 0.92 | 1.09 | 0.90 | 1.07 | 1.80 | 32 | |||||||||||||||||||||||||
10.65 | 16.68 | 1,338,509 | 0.92 | 1.10 | 0.89 | 1.07 | 1.87 | 35 | ||||||||||||||||||||||||||
9.69 | (2.36 | ) | 9,648 | 1.01 | 1.18 | 0.99 | 1.16 | 1.50 | 43 | |||||||||||||||||||||||||
12.99 | 24.40 | 31,119 | 0.99 | 1.16 | 0.99 | 1.16 | 1.76 | 61 | ||||||||||||||||||||||||||
10.80 | 10.12 | 62,479 | 1.00 | 1.20 | 0.99 | 1.19 | 2.34 | 29 | ||||||||||||||||||||||||||
10.09 | (4.23 | ) | 67,977 | 1.02 | 1.19 | 1.00 | 1.17 | 1.70 | 32 | |||||||||||||||||||||||||
10.64 | 16.55 | 45,785 | 1.02 | 1.20 | 0.99 | 1.17 | 1.72 | 35 | ||||||||||||||||||||||||||
9.59 | (2.71 | ) | 5,207 | 1.26 | 1.43 | 1.24 | 1.41 | 1.18 | 43 | |||||||||||||||||||||||||
12.91 | 24.20 | 14,013 | 1.24 | 1.41 | 1.24 | 1.41 | 1.67 | 61 | ||||||||||||||||||||||||||
10.74 | 9.89 | 17,730 | 1.25 | 1.45 | 1.24 | 1.44 | 2.01 | 29 | ||||||||||||||||||||||||||
10.05 | (4.52 | ) | 18,469 | 1.27 | 1.45 | 1.26 | 1.42 | 1.33 | 32 | |||||||||||||||||||||||||
10.61 | 16.39 | 24,352 | 1.27 | 1.45 | 1.24 | 1.42 | 1.55 | 35 | ||||||||||||||||||||||||||
9.63 | (2.68 | ) | 29,153 | 1.26 | 1.43 | 1.24 | 1.41 | 1.24 | 43 | |||||||||||||||||||||||||
12.95 | 24.12 | 82,689 | 1.24 | 1.41 | 1.24 | 1.41 | 1.80 | 61 | ||||||||||||||||||||||||||
10.78 | 9.88 | 59,746 | 1.25 | 1.45 | 1.24 | 1.44 | 2.04 | 29 | ||||||||||||||||||||||||||
10.08 | (4.50 | ) | 69,910 | 1.27 | 1.43 | 1.26 | 1.42 | 1.37 | 32 | |||||||||||||||||||||||||
10.64 | 16.30 | 89,571 | 1.27 | 1.45 | 1.24 | 1.42 | 1.64 | 35 | ||||||||||||||||||||||||||
9.32 | (3.45 | ) | 25,211 | 2.02 | 2.19 | 1.99 | 2.16 | 0.47 | 43 | |||||||||||||||||||||||||
12.68 | 23.33 | 60,184 | 1.99 | 2.16 | 1.99 | 2.16 | 1.10 | 61 | ||||||||||||||||||||||||||
10.60 | 8.95 | 35,754 | 2.00 | 2.20 | 1.99 | 2.19 | 1.24 | 29 | ||||||||||||||||||||||||||
9.96 | (5.15 | ) | 47,006 | 2.02 | 2.21 | 2.00 | 2.17 | 0.65 | 32 | |||||||||||||||||||||||||
10.55 | 15.50 | 50,672 | 2.02 | 2.20 | 1.99 | 2.17 | 1.04 | 35 | ||||||||||||||||||||||||||
9.45 | (2.94 | ) | 35 | 1.51 | 1.68 | 1.49 | 1.66 | 1.06 | 43 | |||||||||||||||||||||||||
12.79 | 23.91 | 65 | 1.49 | 1.66 | 1.49 | 1.66 | 1.98 | 61 | ||||||||||||||||||||||||||
10.66 | 9.48 | 15 | 1.50 | 1.70 | 1.49 | 1.69 | 1.92 | 29 | ||||||||||||||||||||||||||
10.00 | (4.86 | ) | 11 | 1.52 | 1.67 | 1.51 | 1.66 | 0.71 | 32 | |||||||||||||||||||||||||
10.59 | 16.02 | 102 | 1.52 | 1.70 | 1.49 | 1.67 | 1.21 | 35 |
ANNUAL REPORT | JUNE 30, 2015 | 29 |
Table of Contents
Statements of Assets and Liabilities
(Amounts in thousands†, except per share amounts) | PIMCO Balanced Income Fund | PIMCO Dividend and Income Builder Fund | PIMCO Emerging Multi-Asset Fund | PIMCO EqS® Emerging Markets Fund | PIMCO EqS® Long/Short Fund | PIMCO Global Dividend Fund | PIMCO International Dividend Fund | PIMCO U.S. Dividend Fund | ||||||||||||||||||||||||
Assets: | ||||||||||||||||||||||||||||||||
Investments, at value | ||||||||||||||||||||||||||||||||
Investments in securities* | $ | 14,231 | $ | 917,839 | $ | 2,200 | $ | 1,327 | $ | 690,997 | $ | 122,913 | $ | 7,935 | $ | 5,440 | ||||||||||||||||
Investments in Affiliates | 1,974 | 32,430 | 5,619 | 3,523 | 122,481 | 3,024 | 110 | 10 | ||||||||||||||||||||||||
Financial Derivative Instruments | ||||||||||||||||||||||||||||||||
Exchange-traded or centrally cleared | 7 | 33 | 0 | 0 | 149 | 0 | 0 | 0 | ||||||||||||||||||||||||
Over the counter | 39 | 747 | 80 | 0 | 0 | 127 | 1 | 0 | ||||||||||||||||||||||||
Cash | 91 | 0 | 76 | 1 | 1 | 0 | 102 | 140 | ||||||||||||||||||||||||
Deposits with counterparty | 135 | 277 | 0 | 0 | 169,238 | 0 | 0 | 0 | ||||||||||||||||||||||||
Foreign currency, at value | 39 | 1,821 | 6 | 0 | 75 | 359 | 26 | 3 | ||||||||||||||||||||||||
Receivable for investments sold | 5 | 321 | 0 | 0 | 282,695 | 0 | 0 | 0 | ||||||||||||||||||||||||
Receivable for Fund shares sold | 65 | 4,684 | 0 | 0 | 2,005 | 1,337 | 61 | 3 | ||||||||||||||||||||||||
Interest and dividends receivable | 71 | 4,854 | 0 | 21 | 745 | 1,299 | 33 | 14 | ||||||||||||||||||||||||
Dividends receivable from Affiliates | 1 | 12 | 23 | 2 | 72 | 1 | 0 | 0 | ||||||||||||||||||||||||
Reimbursement receivable from PIMCO | 0 | 77 | 11 | 81 | 105 | 87 | 0 | 0 | ||||||||||||||||||||||||
Total Assets | 16,658 | 963,095 | 8,015 | 4,955 | 1,268,563 | 129,147 | 8,268 | 5,610 | ||||||||||||||||||||||||
Liabilities: | ||||||||||||||||||||||||||||||||
Borrowings & Other Financing Transactions | ||||||||||||||||||||||||||||||||
Payable for short sales | $ | 0 | $ | 0 | $ | 0 | $ | 0 | $ | 187,302 | $ | 0 | $ | 0 | $ | 0 | ||||||||||||||||
Financial Derivative Instruments | ||||||||||||||||||||||||||||||||
Exchange-traded or centrally cleared | 0 | 2 | 0 | 0 | 372 | 0 | 0 | 0 | ||||||||||||||||||||||||
Over the counter | 148 | 2,175 | 74 | 0 | 89 | 411 | 1 | 0 | ||||||||||||||||||||||||
Payable for investments purchased | 281 | 6,205 | 0 | 0 | 209,812 | 348 | 45 | 28 | ||||||||||||||||||||||||
Payable for investments in Affiliates purchased | 1 | 12 | 23 | 2 | 72 | 1 | 0 | 0 | ||||||||||||||||||||||||
Deposits from counterparty | 0 | 750 | 0 | 0 | 0 | 90 | 0 | 0 | ||||||||||||||||||||||||
Payable for Fund shares redeemed | 32 | 16,119 | 42 | 128 | 4,253 | 135 | 19 | 1 | ||||||||||||||||||||||||
Dividends payable | 0 | 2,005 | 0 | 0 | 0 | 1 | 0 | 0 | ||||||||||||||||||||||||
Overdraft due to custodian | 0 | 263 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||||||
Accrued investment advisory fees | 6 | 413 | 0 | 4 | 756 | 57 | 4 | 2 | ||||||||||||||||||||||||
Accrued supervisory and administrative fees | 5 | 306 | 4 | 2 | 374 | 39 | 3 | 2 | ||||||||||||||||||||||||
Accrued distribution fees | 2 | 230 | 1 | 1 | 97 | 18 | 0 | 0 | ||||||||||||||||||||||||
Accrued servicing fees | 2 | 135 | 1 | 1 | 65 | 14 | 0 | 0 | ||||||||||||||||||||||||
Other liabilities | 2 | 218 | 12 | 86 | 263 | 119 | 2 | 1 | ||||||||||||||||||||||||
Total Liabilities | 479 | 28,833 | 157 | 224 | 403,455 | 1,233 | 74 | 34 | ||||||||||||||||||||||||
Net Assets | $ | 16,179 | $ | 934,262 | $ | 7,858 | $ | 4,731 | $ | 865,108 | $ | 127,914 | $ | 8,194 | $ | 5,576 | ||||||||||||||||
Net Assets Consist of: | ||||||||||||||||||||||||||||||||
Paid in capital | $ | 16,341 | $ | 905,787 | $ | 15,572 | $ | 43,238 | $ | 821,778 | $ | 113,243 | $ | 8,325 | $ | 5,603 | ||||||||||||||||
Undistributed (overdistributed) net investment income | 74 | (162 | ) | (12 | ) | (1,175 | ) | 89 | 137 | 16 | 0 | |||||||||||||||||||||
Accumulated undistributed net realized gain (loss) | 175 | 46,272 | (6,553 | ) | (37,331 | ) | (6,664 | ) | 11,977 | (90 | ) | 90 | ||||||||||||||||||||
Net unrealized appreciation (depreciation) | (411 | ) | (17,635 | ) | (1,149 | ) | (1 | ) | 49,905 | 2,557 | (57 | ) | (117 | ) | ||||||||||||||||||
$ | 16,179 | $ | 934,262 | $ | 7,858 | $ | 4,731 | $ | 865,108 | $ | 127,914 | $ | 8,194 | $ | 5,576 | |||||||||||||||||
Cost of Investments in securities | $ | 14,654 | $ | 933,922 | $ | 2,200 | $ | 1,327 | $ | 642,548 | $ | 120,032 | $ | 7,992 | $ | 5,557 | ||||||||||||||||
Cost of Investments in Affiliates | $ | 1,974 | $ | 32,430 | $ | 6,774 | $ | 3,523 | $ | 122,492 | $ | 3,024 | $ | 110 | $ | 10 | ||||||||||||||||
Cost of Foreign Currency Held | $ | 38 | $ | 1,822 | $ | 6 | $ | 0 | $ | 75 | $ | 359 | $ | 26 | $ | 3 | ||||||||||||||||
Proceeds Received on Short Sales | $ | 0 | $ | 0 | $ | 0 | $ | 0 | $ | 190,940 | $ | 0 | $ | 0 | $ | 0 | ||||||||||||||||
Cost or Premiums of Financial Derivative Instruments, net | $ | (126 | ) | $ | (1 | ) | $ | 0 | $ | 0 | $ | 2,495 | $ | 0 | $ | 0 | $ | 0 | ||||||||||||||
* Includes repurchase agreements of: | $ | 0 | $ | 1,610 | $ | 0 | $ | 1,327 | $ | 212 | $ | 540 | $ | 0 | $ | 0 |
† | A zero balance may reflect actual amounts rounding to less than one thousand. |
30 | PIMCO EQUITY SERIES | See Accompanying Notes |
Table of Contents
June 30, 2015
(Amounts in thousands†, except per share amounts) | PIMCO Balanced Income Fund | PIMCO Dividend and Income Builder Fund | PIMCO Emerging Multi-Asset Fund | PIMCO EqS® Emerging Markets Fund | PIMCO EqS® Long/Short Fund | PIMCO Global Dividend Fund | PIMCO International Dividend Fund | PIMCO U.S. Dividend Fund | ||||||||||||||||||||||||
Net Assets: | ||||||||||||||||||||||||||||||||
Institutional Class | $ | 7,473 | $ | 68,607 | $ | 3,258 | $ | 492 | $ | 299,808 | $ | 58,212 | $ | 4,634 | $ | 4,191 | ||||||||||||||||
Class P | 141 | 169,790 | 345 | 136 | 207,511 | 2,604 | 1,727 | 10 | ||||||||||||||||||||||||
Administrative Class | NA | NA | 12 | 3 | NA | NA | NA | NA | ||||||||||||||||||||||||
Class D | 397 | 41,094 | 540 | 640 | 44,227 | 2,299 | 239 | 19 | ||||||||||||||||||||||||
Class A | 4,380 | 296,317 | 2,269 | 2,247 | 172,843 | 37,645 | 1,000 | 750 | ||||||||||||||||||||||||
Class C | 3,788 | 358,171 | 1,425 | 1,204 | 140,719 | 27,097 | 594 | 606 | ||||||||||||||||||||||||
Class R | NA | 283 | 9 | 9 | NA | 57 | NA | NA | ||||||||||||||||||||||||
Shares Issued and Outstanding: | ||||||||||||||||||||||||||||||||
Institutional Class | 743 | 5,582 | 395 | 57 | 24,841 | 7,926 | 442 | 415 | ||||||||||||||||||||||||
Class P | 14 | 13,806 | 42 | 16 | 17,261 | 355 | 165 | 1 | ||||||||||||||||||||||||
Administrative Class | NA | NA | 1 | 0 | NA | NA | NA | NA | ||||||||||||||||||||||||
Class D | 40 | 3,344 | 66 | 75 | 3,702 | 313 | 23 | 2 | ||||||||||||||||||||||||
Class A | 436 | 24,111 | 278 | 263 | 14,480 | 5,123 | 95 | 74 | ||||||||||||||||||||||||
Class C | 377 | 29,196 | 178 | 145 | 12,036 | 3,709 | 57 | 60 | ||||||||||||||||||||||||
Class R | NA | 23 | 1 | 1 | NA | 8 | NA | NA | ||||||||||||||||||||||||
Net Asset Value and Redemption Price^ Per Share Outstanding: | ||||||||||||||||||||||||||||||||
Institutional Class | $ | 10.05 | $ | 12.29 | $ | 8.24 | $ | 8.64 | $ | 12.07 | $ | 7.34 | $ | 10.49 | $ | 10.10 | ||||||||||||||||
Class P | 10.05 | 12.30 | 8.22 | 8.63 | 12.02 | 7.35 | 10.49 | 10.09 | ||||||||||||||||||||||||
Administrative Class | NA | NA | 8.17 | 8.59 | NA | NA | NA | NA | ||||||||||||||||||||||||
Class D | 10.05 | 12.29 | 8.20 | 8.54 | 11.95 | 7.35 | 10.49 | 10.09 | ||||||||||||||||||||||||
Class A | 10.05 | 12.29 | 8.17 | 8.54 | 11.94 | 7.35 | 10.50 | 10.11 | ||||||||||||||||||||||||
Class C | 10.05 | 12.27 | 8.02 | 8.32 | 11.69 | 7.31 | 10.49 | 10.10 | ||||||||||||||||||||||||
Class R | NA | 12.29 | 8.10 | 8.49 | NA | 7.34 | NA | NA |
^ | With respect to the A and C Classes, the redemption price varies by the length of time the shares are held. |
ANNUAL REPORT | JUNE 30, 2015 | 31 |
Table of Contents
Consolidated Statement of Assets and Liabilities
(Amounts in thousands†, except per share amounts) | PIMCO EqS Pathfinder Fund® | |||
Assets: | ||||
Investments, at value | ||||
Investments in securities* | $ | 6,264 | ||
Investments in Affiliates | 85,941 | |||
Financial Derivative Instruments | ||||
Exchange-traded or centrally cleared | 130 | |||
Cash | 1 | |||
Deposits with counterparty | 3,073 | |||
Foreign currency, at value | 103 | |||
Interest and dividends receivable | 1,322 | |||
Dividends receivable from Affiliates | 31 | |||
Reimbursement receivable from PIMCO | 313 | |||
Total Assets | 97,178 | |||
Liabilities: | ||||
Payable for investments in Affiliates purchased | $ | 31 | ||
Deposits from counterparty | 1,110 | |||
Payable for Fund shares redeemed | 1,990 | |||
Accrued investment advisory fees | 55 | |||
Accrued supervisory and administrative fees | 35 | |||
Accrued distribution fees | 22 | |||
Accrued servicing fees | 14 | |||
Other liabilities | 366 | |||
Total Liabilities | 3,623 | |||
Net Assets | $ | 93,555 | ||
Net Assets Consist of: | ||||
Paid in capital | $ | 68,377 | ||
Undistributed net investment income | 14,976 | |||
Accumulated undistributed net realized gain | 11,103 | |||
Net unrealized (depreciation) | (901 | ) | ||
$ | 93,555 | |||
Cost of Investments in securities | $ | 6,264 | ||
Cost of Investments in Affiliates | $ | 85,950 | ||
Cost of Foreign Currency Held | $ | 101 | ||
* Includes repurchase agreements of: | $ | 2,317 |
† | A zero balance may reflect actual amounts rounding to less than one thousand. |
32 | PIMCO EQUITY SERIES | See Accompanying Notes |
Table of Contents
June 30, 2015
PIMCO EqS Pathfinder Fund® | ||||
Net Assets: | ||||
Institutional Class | $ | 24,301 | ||
Class P | 9,648 | |||
Class D | 5,207 | |||
Class A | 29,153 | |||
Class C | 25,211 | |||
Class R | 35 | |||
Shares Issued and Outstanding: | ||||
Institutional Class | 2,498 | |||
Class P | 996 | |||
Class D | 543 | |||
Class A | 3,026 | |||
Class C | 2,704 | |||
Class R | 4 | |||
Net Asset Value and Redemption Price^ Per Share Outstanding: | ||||
Institutional Class | $ | 9.73 | ||
Class P | 9.69 | |||
Class D | 9.59 | |||
Class A | 9.63 | |||
Class C | 9.32 | |||
Class R | 9.45 |
^ | With respect to the A and C Classes, the redemption price varies by the length of time the shares are held. |
ANNUAL REPORT | JUNE 30, 2015 | 33 |
Table of Contents
Year or Period Ended June 30, 2015 | ||||||||||||||||||||||||||||||||
(Amounts in thousands†) | PIMCO Balanced Income Fund | PIMCO Dividend and Income Builder Fund | PIMCO Emerging Multi-Asset Fund | PIMCO EqS® Emerging Markets Fund | PIMCO EqS® Long/Short Fund | PIMCO Global Dividend Fund | PIMCO International Dividend Fund (1) | PIMCO U.S. Dividend Fund (1) | ||||||||||||||||||||||||
Investment Income: | ||||||||||||||||||||||||||||||||
Interest | $ | 144 | $ | 4,019 | $ | 1 | $ | 1 | $ | 58 | $ | 0 | $ | 0 | $ | 0 | ||||||||||||||||
Dividends, net of foreign taxes* | 250 | 36,916 | 0 | 1,544 | 20,812 | 6,578 | 124 | 92 | ||||||||||||||||||||||||
Dividends from Investments in Affiliates | 14 | 104 | 583 | 93 | 2,756 | 9 | 1 | 1 | ||||||||||||||||||||||||
Total Income | 408 | 41,039 | 584 | 1,638 | 23,626 | 6,587 | 125 | 93 | ||||||||||||||||||||||||
Expenses: | ||||||||||||||||||||||||||||||||
Investment advisory fees | 65 | 6,167 | 223 | 902 | 11,646 | 1,189 | 19 | 15 | ||||||||||||||||||||||||
Supervisory and administrative fees | 37 | 3,504 | 122 | 414 | 5,751 | 604 | 9 | 8 | ||||||||||||||||||||||||
Distribution and/or servicing fees - Class D | 1 | 76 | 3 | 2 | 142 | 11 | 0 | 0 | ||||||||||||||||||||||||
Distribution fees - Class C | 15 | 2,552 | 21 | 14 | 1,272 | 241 | 1 | 1 | ||||||||||||||||||||||||
Distribution fees - Class R | 0 | 1 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||||||
Servicing fees - Class A | 4 | 723 | 13 | 13 | 547 | 115 | 0 | 1 | ||||||||||||||||||||||||
Servicing fees - Class C | 5 | 850 | 7 | 4 | 424 | 80 | 0 | 1 | ||||||||||||||||||||||||
Servicing fees - Class R | 0 | 1 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||||||
Dividends on short sales | 0 | 0 | 0 | 0 | 2,526 | 0 | 0 | 0 | ||||||||||||||||||||||||
Trustee fees | 1 | 53 | 2 | 6 | 66 | 9 | 0 | 0 | ||||||||||||||||||||||||
Interest expense | 0 | 6 | 0 | 4 | 2,110 | 2 | 0 | 0 | ||||||||||||||||||||||||
Organizational expense | 0 | 0 | 0 | 0 | 0 | 0 | 86 | 84 | ||||||||||||||||||||||||
Miscellaneous expense | 1 | 44 | 1 | 4 | 55 | 9 | 0 | 0 | ||||||||||||||||||||||||
Total Expenses | 129 | 13,977 | 392 | 1,363 | 24,539 | 2,260 | 115 | 110 | ||||||||||||||||||||||||
Waiver and/or Reimbursement by PIMCO | (17 | ) | (1,483 | ) | (264 | ) | (187 | ) | (66 | ) | (284 | ) | (90 | ) | (88 | ) | ||||||||||||||||
Net Expenses | 112 | 12,494 | 128 | 1,176 | 24,473 | 1,976 | 25 | 22 | ||||||||||||||||||||||||
Net Investment Income (Loss) | 296 | 28,545 | 456 | 462 | (847 | ) | 4,611 | 100 | 71 | |||||||||||||||||||||||
Net Realized Gain (Loss): | ||||||||||||||||||||||||||||||||
Investments in securities | 100 | 45,391 | 14 | (1,506 | ) | 37,641 | 35,619 | (94 | ) | 82 | ||||||||||||||||||||||
Investments in Affiliates | (10 | ) | (35 | ) | (2,597 | ) | (60 | ) | (1,980 | ) | (2 | ) | (1 | ) | (1 | ) | ||||||||||||||||
Net capital gain distributions received from Affiliate investments | 0 | 0 | 24 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||||||
Exchange-traded or centrally cleared financial derivative instruments | 18 | 1,747 | (64 | ) | (679 | ) | (7,246 | ) | 0 | 0 | 0 | |||||||||||||||||||||
Over the counter financial derivative instruments | 159 | 8,915 | 226 | 1,382 | (999 | ) | 2,557 | 7 | 1 | |||||||||||||||||||||||
Short sales | 0 | 0 | 0 | 0 | 2,840 | 0 | 0 | 0 | ||||||||||||||||||||||||
Foreign currency | 2 | (746 | ) | (7 | ) | (335 | ) | (404 | ) | (204 | ) | 4 | (2 | ) | ||||||||||||||||||
Net Realized Gain (Loss) | 269 | 55,272 | (2,404 | ) | (1,198 | ) | 29,852 | 37,970 | (84 | ) | 80 | |||||||||||||||||||||
Net Change in Unrealized (Depreciation): | ||||||||||||||||||||||||||||||||
Investments in securities | (514 | ) | (96,264 | ) | 0 | 180 | (41,885 | ) | (47,361 | ) | (57 | ) | (117 | ) | ||||||||||||||||||
Investments in Affiliates | 0 | (1 | ) | (208 | ) | 0 | (48 | ) | 0 | 0 | 0 | |||||||||||||||||||||
Exchange-traded or centrally cleared financial derivative instruments | (3 | ) | 71 | 13 | 0 | 42 | 0 | 0 | 0 | |||||||||||||||||||||||
Over the counter financial derivative instruments | 21 | (1,466 | ) | (34 | ) | (1,973 | ) | 3,899 | (318 | ) | 0 | 0 | ||||||||||||||||||||
Short sales | 0 | 0 | 0 | 0 | 4,582 | 0 | 0 | 0 | ||||||||||||||||||||||||
Foreign currency assets and liabilities | (1 | ) | (21 | ) | 0 | 0 | 12 | (80 | ) | 0 | 0 | |||||||||||||||||||||
Net Change in Unrealized (Depreciation) | (497 | ) | (97,681 | ) | (229 | ) | (1,793 | ) | (33,398 | ) | (47,759 | ) | (57 | ) | (117 | ) | ||||||||||||||||
Net Increase (Decrease) in Net Assets Resulting from Operations | $ | 68 | $ | (13,864 | ) | $ | (2,177 | ) | $ | (2,529 | ) | $ | (4,393 | ) | $ | (5,178 | ) | $ | (41 | ) | $ | 34 | ||||||||||
* Foreign tax withholdings - Dividends | $ | 12 | $ | 1,961 | $ | 0 | $ | 152 | $ | 103 | $ | 322 | $ | 10 | $ | 1 |
† | A zero balance may reflect actual amounts rounding to less than one thousand. |
(1) | Period from December 15, 2014 to June 30, 2015. |
34 | PIMCO EQUITY SERIES | See Accompanying Notes |
Table of Contents
Consolidated Statement of Operations
Year Ended June 30, 2015 | ||||
(Amounts in thousands†) | PIMCO EqS Pathfinder Fund® | |||
Investment Income: | ||||
Interest | $ | 4 | ||
Dividends, net of foreign taxes* | 26,082 | |||
Dividends from Investments in Affiliates | 1,216 | |||
Total Income | 27,302 | |||
Expenses: | ||||
Investment advisory fees | 8,050 | |||
Supervisory and administrative fees | 3,372 | |||
Distribution and/or servicing fees - Class D | 26 | |||
Distribution fees - Class C | 382 | |||
Servicing fees - Class A | 165 | |||
Servicing fees - Class C | 127 | |||
Dividends on short sales | 260 | |||
Trustee fees | 68 | |||
Interest expense | 37 | |||
Miscellaneous expense | 53 | |||
Total Expenses | 12,540 | |||
Waiver and/or Reimbursement by PIMCO | (1,785 | ) | ||
Net Expenses | 10,755 | |||
Net Investment Income | 16,547 | |||
Net Realized Gain: | ||||
Investments in securities | 138,538 | |||
Investments in Affiliates | (1,066 | ) | ||
Exchange-traded or centrally cleared financial derivative instruments | 503 | |||
Over the counter financial derivative instruments | 30,507 | |||
Short sales | 1,216 | |||
Foreign currency | (3,410 | ) | ||
Net Realized Gain | 166,288 | |||
Net Change in Unrealized (Depreciation): | ||||
Investments in securities | (208,138 | ) | ||
Investments in Affiliates | (11 | ) | ||
Exchange-traded or centrally cleared financial derivative instruments | (843 | ) | ||
Over the counter financial derivative instruments | (4,938 | ) | ||
Short sales | 1,307 | |||
Foreign currency assets and liabilities | (147 | ) | ||
Net Change in Unrealized (Depreciation) | (212,770 | ) | ||
Net (Decrease) in Net Assets Resulting from Operations | $ | (29,935 | ) | |
* Foreign tax withholdings - Dividends | $ | 938 |
† | A zero balance may reflect actual amounts rounding to less than one thousand. |
ANNUAL REPORT | JUNE 30, 2015 | 35 |
Table of Contents
Statements of Changes in Net Assets
PIMCO Balanced Income Fund | PIMCO Dividend and Income Builder Fund | PIMCO Emerging Multi-Asset Fund | ||||||||||||||||||||||
(Amounts in thousands†) | Year Ended June 30, 2015 | Period from | Year Ended June 30, 2015 | Year Ended June 30, 2014 | Year Ended June 30, 2015 | Year Ended June 30, 2014 | ||||||||||||||||||
Increase (Decrease) in Net Assets from: | ||||||||||||||||||||||||
Operations: | ||||||||||||||||||||||||
Net investment income (loss) | $ | 296 | $ | 33 | $ | 28,545 | $ | 23,574 | $ | 456 | $ | 953 | ||||||||||||
Net realized gain (loss) | 269 | 0 | 55,272 | 14,901 | (2,404 | ) | (2,408 | ) | ||||||||||||||||
Net change in unrealized appreciation (depreciation) | (497 | ) | 86 | (97,681 | ) | 72,966 | (229 | ) | 4,212 | |||||||||||||||
Net Increase (Decrease) in Net Assets Resulting from Operations | 68 | 119 | (13,864 | ) | 111,441 | (2,177 | ) | 2,757 | ||||||||||||||||
Distributions to Shareholders: | ||||||||||||||||||||||||
From net investment income | ||||||||||||||||||||||||
Institutional Class | (210 | ) | (27 | ) | (2,553 | ) | (3,023 | ) | (688 | ) | (469 | ) | ||||||||||||
Class P | (3 | ) | (0 | ) | (5,752 | ) | (4,522 | ) | (47 | ) | (33 | ) | ||||||||||||
Administrative Class | 0 | 0 | 0 | 0 | (0 | ) | (31 | ) | ||||||||||||||||
Class D | (6 | ) | (0 | ) | (1,023 | ) | (1,018 | ) | (28 | ) | (89 | ) | ||||||||||||
Class A | (48 | ) | (1 | ) | (9,496 | ) | (8,804 | ) | (166 | ) | (175 | ) | ||||||||||||
Class C | (43 | ) | (1 | ) | (8,670 | ) | (7,339 | ) | (79 | ) | (53 | ) | ||||||||||||
Class R | 0 | 0 | (11 | ) | (12 | ) | (0 | ) | (0 | ) | ||||||||||||||
From net realized capital gains | ||||||||||||||||||||||||
Institutional Class | (6 | ) | 0 | (1,739 | ) | 0 | 0 | 0 | ||||||||||||||||
Class P | (0 | ) | 0 | (4,480 | ) | 0 | 0 | 0 | ||||||||||||||||
Administrative Class | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||
Class D | (0 | ) | 0 | (690 | ) | 0 | 0 | 0 | ||||||||||||||||
Class A | (1 | ) | 0 | (7,435 | ) | 0 | 0 | 0 | ||||||||||||||||
Class C | (2 | ) | 0 | (8,792 | ) | 0 | 0 | 0 | ||||||||||||||||
Class R | 0 | 0 | (11 | ) | 0 | 0 | 0 | |||||||||||||||||
Tax basis return of capital | ||||||||||||||||||||||||
Institutional Class | 0 | 0 | 0 | 0 | (137 | ) | 0 | |||||||||||||||||
Class P | 0 | 0 | 0 | 0 | (14 | ) | 0 | |||||||||||||||||
Administrative Class | 0 | 0 | 0 | 0 | (0 | ) | 0 | |||||||||||||||||
Class D | 0 | 0 | 0 | 0 | (12 | ) | 0 | |||||||||||||||||
Class A | 0 | 0 | 0 | 0 | (51 | ) | 0 | |||||||||||||||||
Class C | 0 | 0 | 0 | 0 | (27 | ) | 0 | |||||||||||||||||
Class R | 0 | 0 | 0 | 0 | (0 | ) | 0 | |||||||||||||||||
Total Distributions | (319 | ) | (29 | ) | (50,652 | ) | (24,718 | ) | (1,249 | ) | (850 | ) | ||||||||||||
Portfolio Share Transactions: | ||||||||||||||||||||||||
Net increase (decrease) resulting from Fund share transactions** | 9,310 | 7,030 | 43,260 | 485,989 | (25,394 | ) | (28,462 | ) | ||||||||||||||||
Total Increase (Decrease) in Net Assets | 9,059 | 7,120 | (21,256 | ) | 572,712 | (28,820 | ) | (26,555 | ) | |||||||||||||||
Net Assets: | ||||||||||||||||||||||||
Beginning of year or period | 7,120 | 0 | 955,518 | 382,806 | 36,678 | 63,233 | ||||||||||||||||||
End of year or period* | $ | 16,179 | $ | 7,120 | $ | 934,262 | $ | 955,518 | $ | 7,858 | $ | 36,678 | ||||||||||||
* Including undistributed (overdistributed) net investment income of: | $ | 74 | $ | 4 | $ | (162 | ) | $ | 312 | $ | (12 | ) | $ | 576 |
† | A zero balance may reflect actual amounts rounding to less than one thousand. |
** | See Note 13 in the Notes to Financial Statements. |
36 | PIMCO EQUITY SERIES | See Accompanying Notes |
Table of Contents
PIMCO EqS® Emerging Markets Fund | PIMCO EqS® Long/Short Fund | PIMCO | PIMCO International Dividend Fund | PIMCO U.S. Dividend Fund | ||||||||||||||||||||||||||
Year Ended June 30, 2015 | Year Ended June 30, 2014 | Year Ended June 30, 2015 | Year Ended June 30, 2014 | Year Ended June 30, 2015 | Year Ended June 30, 2014 | Period from December 15, 2014 to June 30, 2015 | Period from | |||||||||||||||||||||||
$ | 462 | $ | 1,924 | $ | (847 | ) | $ | (9,695 | ) | $ | 4,611 | $ | 18,008 | $ | 100 | $ | 71 | |||||||||||||
(1,198 | ) | (5,047 | ) | 29,852 | 11,045 | 37,970 | 56,150 | (84 | ) | 80 | ||||||||||||||||||||
(1,793 | ) | 30,313 | (33,398 | ) | 59,280 | (47,759 | ) | 17,857 | (57 | ) | (117 | ) | ||||||||||||||||||
(2,529 | ) | 27,190 | (4,393 | ) | 60,630 | (5,178 | ) | 92,015 | (41 | ) | 34 | |||||||||||||||||||
0 | 0 | 0 | (2,688 | ) | (2,250 | ) | (18,034 | ) | (65 | ) | (56 | ) | ||||||||||||||||||
0 | 0 | 0 | (663 | ) | (100 | ) | (152 | ) | (15 | ) | 0 | |||||||||||||||||||
0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||||||||||||
0 | 0 | 0 | (316 | ) | (113 | ) | (362 | ) | (2 | ) | 0 | |||||||||||||||||||
0 | 0 | 0 | (1,080 | ) | (1,034 | ) | (1,892 | ) | (5 | ) | (4 | ) | ||||||||||||||||||
0 | 0 | 0 | (464 | ) | (469 | ) | (1,007 | ) | (3 | ) | (3 | ) | ||||||||||||||||||
0 | 0 | 0 | 0 | (3 | ) | (4 | ) | 0 | 0 | |||||||||||||||||||||
0 | 0 | (1,891 | ) | (23,512 | ) | (24,159 | ) | (25,541 | ) | 0 | 0 | |||||||||||||||||||
0 | 0 | (1,253 | ) | (4,678 | ) | (1,929 | ) | (199 | ) | 0 | 0 | |||||||||||||||||||
0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||||||||||||
0 | 0 | (248 | ) | (2,765 | ) | (1,958 | ) | (465 | ) | 0 | 0 | |||||||||||||||||||
0 | 0 | (961 | ) | (8,208 | ) | (18,177 | ) | (2,702 | ) | 0 | 0 | |||||||||||||||||||
0 | 0 | (787 | ) | (4,823 | ) | (13,153 | ) | (1,844 | ) | 0 | 0 | |||||||||||||||||||
0 | 0 | 0 | 0 | (56 | ) | (5 | ) | 0 | 0 | |||||||||||||||||||||
0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||||||||||||
0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||||||||||||
0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||||||||||||
0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||||||||||||
0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||||||||||||
0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||||||||||||
0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||||||||||||
0 | 0 | (5,140 | ) | (49,197 | ) | (63,401 | ) | (52,207 | ) | (90 | ) | (63 | ) | |||||||||||||||||
(110,089 | ) | (420,487 | ) | (622,945 | ) | 1,094,169 | (216,047 | ) | (257,681 | ) | 8,325 | 5,605 | ||||||||||||||||||
(112,618 | ) | (393,297 | ) | (632,478 | ) | 1,105,602 | (284,626 | ) | (217,873 | ) | 8,194 | 5,576 | ||||||||||||||||||
117,349 | 510,646 | 1,497,586 | 391,984 | 412,540 | 630,413 | 0 | 0 | |||||||||||||||||||||||
$ | 4,731 | $ | 117,349 | $ | 865,108 | $ | 1,497,586 | $ | 127,914 | $ | 412,540 | $ | 8,194 | $ | 5,576 | |||||||||||||||
$ | (1,175 | ) | $ | (3,484 | ) | $ | 89 | $ | (5,712 | ) | $ | 137 | $ | (26 | ) | $ | 16 | $ | 0 |
ANNUAL REPORT | JUNE 30, 2015 | 37 |
Table of Contents
Consolidated Statements of Changes in Net Assets
PIMCO EqS Pathfinder Fund® | ||||||||
(Amounts in thousands†) | Year Ended | Year Ended June 30, 2014 | ||||||
(Decrease) in Net Assets from: | ||||||||
Operations: | ||||||||
Net investment income | $ | 16,547 | $ | 42,503 | ||||
Net realized gain | 166,288 | 354,529 | ||||||
Net change in unrealized appreciation (depreciation) | (212,770 | ) | 38,534 | |||||
Net Increase (Decrease) in Net Assets Resulting from Operations | (29,935 | ) | 435,566 | |||||
Distributions to Shareholders: | ||||||||
From net investment income | ||||||||
Institutional Class | (21,280 | ) | (38,137 | ) | ||||
Class P | (578 | ) | (1,112 | ) | ||||
Administrative Class | 0 | 0 | ||||||
Class D | (231 | ) | (237 | ) | ||||
Class A | (1,453 | ) | (976 | ) | ||||
Class C | (960 | ) | (539 | ) | ||||
Class R | (2 | ) | (0 | ) | ||||
From net realized capital gains | ||||||||
Institutional Class | (220,923 | ) | (49,062 | ) | ||||
Class P | (5,546 | ) | (1,472 | ) | ||||
Administrative Class | 0 | 0 | ||||||
Class D | (2,677 | ) | (351 | ) | ||||
Class A | (14,767 | ) | (1,402 | ) | ||||
Class C | (11,693 | ) | (968 | ) | ||||
Class R | (16 | ) | (0 | ) | ||||
Total Distributions | (280,126 | ) | (94,256 | ) | ||||
Portfolio Share Transactions: | ||||||||
Net (decrease) resulting from Fund share transactions** | (1,039,774 | ) | (765,494 | ) | ||||
Total (Decrease) in Net Assets | (1,349,835 | ) | (424,184 | ) | ||||
Net Assets: | ||||||||
Beginning of year | 1,443,390 | 1,867,574 | ||||||
End of year* | $ | 93,555 | $ | 1,443,390 | ||||
* Including undistributed (overdistributed) net investment income of: | $ | 14,976 | $ | (5,845 | ) |
† | A zero balance may reflect actual amounts rounding to less than one thousand. |
** | See Note 13 in the Notes to Financial Statements. |
38 | PIMCO EQUITY SERIES | See Accompanying Notes |
Table of Contents
Year Ended June 30, 2015 | ||||
(Amounts in thousands) | PIMCO EqS® | |||
Cash Flows Provided by Operating Activities: | ||||
Net (decrease) in net assets resulting from operations | $ | (4,393 | ) | |
Adjustments to Reconcile Net (Decrease) in Net Assets from Operations to Net Cash Provided by Operating Activities: | ||||
Purchases of long-term securities | (3,881,127 | ) | ||
Proceeds from sales of long-term securities | 4,167,714 | |||
Proceeds from sales of short-term portfolio investments, net | 457,331 | |||
(Increase) in deposits with counterparty | (132,866 | ) | ||
(Increase) in receivable for investments sold | (241,956 | ) | ||
(Increase) in interest and dividends receivable | (75 | ) | ||
(Increase) in exchange-traded or centrally cleared financial derivative instruments | (9,331 | ) | ||
(Increase) in over the counter financial derivative instruments | (999 | ) | ||
Increase in payable for investments purchased | 145,858 | |||
(Decrease) in accrued investment advisory fees | (489 | ) | ||
(Decrease) in accrued supervisory and administrative fees | (241 | ) | ||
(Decrease) in accrued distribution fees | (46 | ) | ||
(Decrease) in accrued servicing fees | (55 | ) | ||
(Decrease) in reimbursement receivable from PIMCO | (96 | ) | ||
Proceeds from short sales transactions, net | 123,269 | |||
Payments on currency transactions | (392 | ) | ||
Increase in other liabilities | 174 | |||
Net Realized (Gain) Loss | ||||
Investments in securities | (37,641 | ) | ||
Investments in Affiliates | 1,980 | |||
Exchange-traded or centrally cleared financial derivative instruments | 7,246 | |||
Short sales | (2,840 | ) | ||
Over the counter financial derivative instruments | 999 | |||
Foreign currency | 404 | |||
Net Change in Unrealized (Appreciation) Depreciation | ||||
Investments in securities | 41,885 | |||
Investments in Affiliates | 48 | |||
Exchange-traded or centrally cleared financial derivative instruments | (42 | ) | ||
Over the counter financial derivative instruments | (3,899 | ) | ||
Short sales | (4,582 | ) | ||
Foreign currency assets and liabilities | (12 | ) | ||
Net amortization (accretion) on investments | (27 | ) | ||
Net Cash Provided by Operating Activities | 625,799 | |||
Cash Flows (Used for) Financing Activities: | ||||
Proceeds from shares sold | 387,566 | |||
Payments on shares redeemed | (1,014,467 | ) | ||
Cash dividend paid* | (17 | ) | ||
Proceeds from deposits from counterparty | 12,620 | |||
Payments on deposits from counterparty | (12,620 | ) | ||
Net Cash (Used for) Financing Activities | (626,918 | ) | ||
Net (Decrease) in Cash and Foreign Currency | (1,119 | ) | ||
Cash and Foreign Currency: | ||||
Beginning of year | 1,195 | |||
End of year | $ | 76 | ||
* Reinvestment of distributions | $ | 5,123 | ||
Supplemental Disclosure of Cash Flow Information: | ||||
Interest expense paid during the year | $ | 2,019 |
ANNUAL REPORT | JUNE 30, 2015 | 39 |
Table of Contents
Schedule of Investments PIMCO Balanced Income Fund
PRINCIPAL AMOUNT (000S) | MARKET VALUE (000S) | |||||||||||
INVESTMENTS IN SECURITIES 88.0% | ||||||||||||
ASSET-BACKED SECURITIES 10.5% | ||||||||||||
UNITED STATES 10.5% | ||||||||||||
ACE Securities Corp Home Equity Loan Trust |
| |||||||||||
0.342% due 08/25/2036 | $ | 53 | $ | 45 | ||||||||
Ameriquest Mortgage Securities, Inc. Asset-Backed Pass-Through Certificates |
| |||||||||||
0.865% due 09/25/2033 | 40 | 38 | ||||||||||
1.987% due 02/25/2034 | 244 | 230 | ||||||||||
3.382% due 06/25/2033 | 63 | 54 | ||||||||||
Asset-Backed Securities Corp. Home Equity Loan Trust |
| |||||||||||
0.726% due 11/15/2031 | 12 | 11 | ||||||||||
0.937% due 03/25/2035 | 37 | 36 | ||||||||||
Centex Home Equity Loan Trust |
| |||||||||||
1.237% due 01/25/2034 | 200 | 186 | ||||||||||
College & University Facility Loan Trust |
| |||||||||||
4.000% due 06/01/2018 | 16 | 16 | ||||||||||
Countrywide Asset-Backed Certificates |
| |||||||||||
0.687% due 08/26/2033 | 39 | 34 | ||||||||||
1.162% due 02/25/2034 | 33 | 32 | ||||||||||
Credit-Based Asset Servicing and Securitization LLC |
| |||||||||||
0.445% due 08/25/2035 | 2 | 3 | ||||||||||
Fremont Home Loan Trust |
| |||||||||||
0.247% due 01/25/2037 | 148 | 76 | ||||||||||
0.367% due 04/25/2036 | 246 | 221 | ||||||||||
JPMorgan Mortgage Acquisition Corp. |
| |||||||||||
0.627% due 09/25/2035 | 200 | 185 | ||||||||||
Lehman ABS Mortgage Loan Trust |
| |||||||||||
0.387% due 06/25/2037 | 80 | 53 | ||||||||||
Merrill Lynch Mortgage Investors Trust |
| |||||||||||
0.377% due 04/25/2047 | 88 | 52 | ||||||||||
0.465% due 01/25/2047 | 83 | 79 | ||||||||||
Residential Asset Mortgage Products Trust |
| |||||||||||
0.745% due 06/25/2032 | 75 | 71 | ||||||||||
0.827% due 08/25/2032 | 74 | 69 | ||||||||||
Structured Asset Investment Loan Trust |
| |||||||||||
0.337% due 06/25/2036 | 247 | 212 | ||||||||||
|
| |||||||||||
Total Asset-Backed Securities (Cost $1,674) | 1,703 | |||||||||||
|
| |||||||||||
BANK LOAN OBLIGATIONS 1.7% | ||||||||||||
UNITED STATES 1.7% | ||||||||||||
Albertson’s Holdings LLC |
| |||||||||||
5.000% due 08/25/2019 | 3 | 3 | ||||||||||
Clear Channel Communications, Inc. |
| |||||||||||
6.937% due 01/30/2019 | 30 | 28 | ||||||||||
Davita Healthcare Partners, Inc. |
| |||||||||||
3.500% due 06/24/2021 | 30 | 30 | ||||||||||
Energy Future Intermediate Holding Co. LLC |
| |||||||||||
4.250% due 06/19/2016 | 70 | 70 | ||||||||||
Hilton Worldwide Finance LLC |
| |||||||||||
3.500% due 10/26/2020 | 41 | 41 | ||||||||||
MGM Resorts International |
| |||||||||||
3.500% due 12/20/2019 | 30 | 30 | ||||||||||
Seadrill Partners Finco LLC |
| |||||||||||
4.000% due 02/21/2021 | 29 | 22 | ||||||||||
Sequa Corp. |
| |||||||||||
5.250% due 06/19/2017 | 20 | 17 | ||||||||||
Univision Communications, Inc. |
| |||||||||||
4.000% due 03/01/2020 | 38 | 37 | ||||||||||
|
| |||||||||||
Total Bank Loan Obligations (Cost $288) | 278 | |||||||||||
|
| |||||||||||
SHARES | MARKET VALUE (000S) | |||||||||||
COMMON STOCKS 56.2% | ||||||||||||
AUSTRALIA 3.3% | ||||||||||||
CONSUMER DISCRETIONARY 1.2% | ||||||||||||
G8 Education Ltd. | 79,728 | $ | 201 | |||||||||
|
| |||||||||||
HEALTH CARE 0.9% | ||||||||||||
Sonic Healthcare Ltd. | 8,994 | 148 | ||||||||||
|
| |||||||||||
INDUSTRIALS 1.2% | ||||||||||||
Spotless Group Holdings Ltd. | 119,380 | 192 | ||||||||||
|
| |||||||||||
Total Australia | 541 | |||||||||||
|
| |||||||||||
BERMUDA 1.5% | ||||||||||||
INDUSTRIALS 1.5% | ||||||||||||
Golar LNG Partners LP | 9,834 | 243 | ||||||||||
|
| |||||||||||
Total Bermuda | 243 | |||||||||||
|
| |||||||||||
BRAZIL 0.8% | ||||||||||||
INDUSTRIALS 0.5% | ||||||||||||
Arteris S.A. | 28,500 | 86 | ||||||||||
|
| |||||||||||
UTILITIES 0.3% | ||||||||||||
Light S.A. | 7,500 | 41 | ||||||||||
|
| |||||||||||
Total Brazil | 127 | |||||||||||
|
| |||||||||||
CANADA 1.2% | ||||||||||||
UTILITIES 1.2% | ||||||||||||
Capital Power Corp. | 11,325 | 195 | ||||||||||
|
| |||||||||||
Total Canada | 195 | |||||||||||
|
| |||||||||||
CHINA 0.6% | ||||||||||||
CONSUMER STAPLES 0.6% | ||||||||||||
Want Want China Holdings Ltd. | 85,000 | 90 | ||||||||||
|
| |||||||||||
Total China | 90 | |||||||||||
|
| |||||||||||
CYPRUS 0.3% | ||||||||||||
ENERGY 0.3% | ||||||||||||
ProSafe SE | 13,023 | 45 | ||||||||||
|
| |||||||||||
Total Cyprus | 45 | |||||||||||
|
| |||||||||||
FRANCE 2.0% | ||||||||||||
UTILITIES 2.0% | ||||||||||||
Electricite de France S.A. | 8,343 | 186 | ||||||||||
Suez Environnement Co. | 7,431 | 139 | ||||||||||
|
| |||||||||||
325 | ||||||||||||
|
| |||||||||||
Total France | 325 | |||||||||||
|
| |||||||||||
GERMANY 1.2% | ||||||||||||
UTILITIES 1.2% | ||||||||||||
E.ON SE | 13,990 | 187 | ||||||||||
|
| |||||||||||
Total Germany | 187 | |||||||||||
|
| |||||||||||
SHARES | MARKET VALUE (000S) | |||||||||||
GREECE 0.6% | ||||||||||||
CONSUMER DISCRETIONARY 0.6% | ||||||||||||
OPAP S.A. | 11,654 | $ | 93 | |||||||||
|
| |||||||||||
Total Greece | 93 | |||||||||||
|
| |||||||||||
HONG KONG 2.7% | ||||||||||||
CONSUMER DISCRETIONARY 1.2% | ||||||||||||
Li & Fung Ltd. | 250,000 | 198 | ||||||||||
|
| |||||||||||
TELECOMMUNICATION SERVICES 1.5% | ||||||||||||
China Mobile Ltd. | 18,500 | 237 | ||||||||||
|
| |||||||||||
Total Hong Kong | 435 | |||||||||||
|
| |||||||||||
ITALY 2.4% | ||||||||||||
FINANCIALS 1.8% | ||||||||||||
Intesa Sanpaolo SpA | 83,073 | 302 | ||||||||||
|
| |||||||||||
INDUSTRIALS 0.6% | ||||||||||||
Societa Iniziative Autostradali e Servizi SpA | 8,675 | 92 | ||||||||||
|
| |||||||||||
Total Italy | 394 | |||||||||||
|
| |||||||||||
MEXICO 0.3% | ||||||||||||
CONSUMER STAPLES 0.3% | ||||||||||||
Coca-Cola Femsa S.A.B. de C.V. | 6,100 | 49 | ||||||||||
|
| |||||||||||
Total Mexico | 49 | |||||||||||
|
| |||||||||||
NETHERLANDS 2.1% | ||||||||||||
FINANCIALS 2.1% | ||||||||||||
Aegon NV | 18,955 | 140 | ||||||||||
NN Group NV | 7,042 | 198 | ||||||||||
|
| |||||||||||
338 | ||||||||||||
|
| |||||||||||
Total Netherlands | 338 | |||||||||||
|
| |||||||||||
SOUTH AFRICA 1.3% | ||||||||||||
TELECOMMUNICATION SERVICES 1.3% | ||||||||||||
MTN Group Ltd. | 10,857 | 204 | ||||||||||
|
| |||||||||||
Total South Africa | 204 | |||||||||||
|
| |||||||||||
SPAIN 0.8% | ||||||||||||
CONSUMER STAPLES 0.8% | ||||||||||||
Ebro Foods S.A. | 7,075 | 137 | ||||||||||
|
| |||||||||||
Total Spain | 137 | |||||||||||
|
| |||||||||||
SWITZERLAND 1.5% | ||||||||||||
HEALTH CARE 1.5% | ||||||||||||
Roche Holding AG | 869 | 244 | ||||||||||
|
| |||||||||||
Total Switzerland | 244 | |||||||||||
|
| |||||||||||
TAIWAN 0.6% | ||||||||||||
INFORMATION TECHNOLOGY 0.6% | ||||||||||||
Radiant Opto-Electronics Corp. | 27,000 | 100 | ||||||||||
|
| |||||||||||
Total Taiwan | 100 | |||||||||||
|
| |||||||||||
40 | PIMCO EQUITY SERIES | See Accompanying Notes |
Table of Contents
June 30, 2015
SHARES | MARKET VALUE (000S) | |||||||||||
THAILAND 0.6% | ||||||||||||
TELECOMMUNICATION SERVICES 0.6% | ||||||||||||
Total Access Communication PCL - NVDR | 37,000 | $ | 91 | |||||||||
|
| |||||||||||
Total Thailand | 91 | |||||||||||
|
| |||||||||||
TURKEY 0.6% | ||||||||||||
INDUSTRIALS 0.6% | ||||||||||||
TAV Havalimanlari Holding A/S | 11,984 | 102 | ||||||||||
|
| |||||||||||
Total Turkey | 102 | |||||||||||
|
| |||||||||||
UNITED KINGDOM 9.2% | ||||||||||||
CONSUMER STAPLES 1.8% | ||||||||||||
Imperial Tobacco Group PLC | 5,941 | 286 | ||||||||||
|
| |||||||||||
FINANCIALS 5.0% | ||||||||||||
HSBC Holdings PLC | 36,834 | 330 | ||||||||||
ICAP PLC | 17,085 | 142 | ||||||||||
Lloyds Banking Group PLC | 255,448 | 343 | ||||||||||
|
| |||||||||||
815 | ||||||||||||
|
| |||||||||||
TELECOMMUNICATION SERVICES 2.4% | ||||||||||||
Vodafone Group PLC | 106,627 | 389 | ||||||||||
|
| |||||||||||
Total United Kingdom | 1,490 | |||||||||||
|
| |||||||||||
UNITED STATES 22.6% | ||||||||||||
CONSUMER DISCRETIONARY 2.3% | ||||||||||||
General Motors Co. | 5,894 | 197 | ||||||||||
Kohl’s Corp. | 2,753 | 172 | ||||||||||
|
| |||||||||||
369 | ||||||||||||
|
| |||||||||||
ENERGY 0.9% | ||||||||||||
Targa Resources Corp. | 1,595 | 142 | ||||||||||
|
| |||||||||||
FINANCIALS 5.1% | ||||||||||||
Apollo Investment Corp. | 17,757 | 126 | ||||||||||
JPMorgan Chase & Co. | 3,140 | 213 | ||||||||||
Navient Corp. | 10,036 | 183 | ||||||||||
Prudential Financial, Inc. | 2,458 | 215 | ||||||||||
Solar Capital Ltd. | 5,020 | 90 | ||||||||||
|
| |||||||||||
827 | ||||||||||||
|
| |||||||||||
HEALTH CARE 2.7% | ||||||||||||
AbbVie, Inc. | 1,439 | 97 | ||||||||||
Merck & Co., Inc. | 2,484 | 141 | ||||||||||
Pfizer, Inc. | 5,866 | 197 | ||||||||||
|
| |||||||||||
435 | ||||||||||||
|
| |||||||||||
INDUSTRIALS 0.9% | ||||||||||||
RR Donnelley & Sons Co. | 8,300 | 145 | ||||||||||
|
| |||||||||||
INFORMATION TECHNOLOGY 3.2% | ||||||||||||
Cisco Systems, Inc. | 6,593 | 181 | ||||||||||
QUALCOMM, Inc. | 3,471 | 217 |
SHARES | MARKET VALUE (000S) | |||||||||||
Symantec Corp. | 4,965 | $ | 116 | |||||||||
|
| |||||||||||
514 | ||||||||||||
|
| |||||||||||
MATERIALS 1.6% | ||||||||||||
International Paper Co. | 3,110 | 148 | ||||||||||
Tronox Ltd. ‘A’ | 8,110 | 118 | ||||||||||
|
| |||||||||||
266 | ||||||||||||
|
| |||||||||||
TELECOMMUNICATION SERVICES 1.5% | ||||||||||||
AT&T, Inc. | 7,003 | 249 | ||||||||||
|
| |||||||||||
UTILITIES 4.4% | ||||||||||||
Ameren Corp. | 6,537 | 246 | ||||||||||
ONE Gas, Inc. | 4,281 | 182 | ||||||||||
PG&E Corp. | 5,685 | 279 | ||||||||||
|
| |||||||||||
707 | ||||||||||||
|
| |||||||||||
Total United States | 3,654 | |||||||||||
|
| |||||||||||
Total Common Stocks (Cost $9,373) | 9,084 | |||||||||||
|
| |||||||||||
PRINCIPAL AMOUNT (000S) | ||||||||||||
CORPORATE BONDS & NOTES 5.3% | ||||||||||||
BRAZIL 0.4% | ||||||||||||
UTILITIES 0.4% | ||||||||||||
Petrobras Global Finance BV |
| |||||||||||
2.000% due 05/20/2016 | $ | 19 | 19 | |||||||||
2.643% due 03/17/2017 | 19 | 19 | ||||||||||
5.375% due 01/27/2021 | 4 | 4 | ||||||||||
3.500% due 02/06/2017 | 2 | 2 | ||||||||||
3.000% due 01/15/2019 | 2 | 2 | ||||||||||
4.875% due 03/17/2020 | 13 | 12 | ||||||||||
6.850% due 06/05/2115 | 10 | 8 | ||||||||||
|
| |||||||||||
66 | ||||||||||||
|
| |||||||||||
Total Brazil | 66 | |||||||||||
|
| |||||||||||
DENMARK 0.2% | ||||||||||||
BANKING & FINANCE 0.2% | ||||||||||||
Nordea Kredit Realkreditaktieselskab |
| |||||||||||
2.000% due 10/01/2047 | 10 | 1 | ||||||||||
Nykredit Realkredit A/S |
| |||||||||||
2.000% due 10/01/2047 | 50 | 7 | ||||||||||
2.500% due 10/01/2047 | 135 | 19 | ||||||||||
Realkredit Danmark A/S |
| |||||||||||
2.500% due 10/01/2047 | 50 | 7 | ||||||||||
|
| |||||||||||
34 | ||||||||||||
|
| |||||||||||
Total Denmark | 34 | |||||||||||
|
| |||||||||||
IRELAND 0.6% | ||||||||||||
INDUSTRIALS 0.6% | ||||||||||||
Russian Railways via RZD Capital PLC | 100 | 97 | ||||||||||
3.374% due 05/20/2021 | ||||||||||||
|
| |||||||||||
Total Ireland | 97 | |||||||||||
|
| |||||||||||
PRINCIPAL | MARKET VALUE (000S) | |||||||||||
NETHERLANDS 0.7% | ||||||||||||
BANKING & FINANCE 0.7% | ||||||||||||
Rabobank Group |
| |||||||||||
8.375% due 07/26/2016 (b) | $ | 100 | $ | 105 | ||||||||
|
| |||||||||||
Total Netherlands | 105 | |||||||||||
|
| |||||||||||
NORWAY 0.0% | ||||||||||||
BANKING & FINANCE 0.0% | ||||||||||||
Eksportfinans ASA |
| |||||||||||
2.000% due 09/15/2015 | 2 | 2 | ||||||||||
|
| |||||||||||
Total Norway | 2 | |||||||||||
|
| |||||||||||
PORTUGAL 0.1% | ||||||||||||
BANKING & FINANCE 0.1% | ||||||||||||
Novo Banco S.A. |
| |||||||||||
5.000% due 04/23/2019 | 5 | 6 | ||||||||||
|
| |||||||||||
Total Portugal | 6 | |||||||||||
|
| |||||||||||
UNITED KINGDOM 0.1% | ||||||||||||
INDUSTRIALS 0.1% | ||||||||||||
Unique Pub Finance Co. PLC | 13 | 20 | ||||||||||
5.659% due 06/30/2027 | ||||||||||||
|
| |||||||||||
Total United Kingdom | 20 | |||||||||||
|
| |||||||||||
UNITED STATES 3.2% | ||||||||||||
BANKING & FINANCE 1.0% | ||||||||||||
Ally Financial, Inc. |
| |||||||||||
6.250% due 12/01/2017 | 30 | 32 | ||||||||||
3.600% due 05/21/2018 | 20 | 20 | ||||||||||
CIT Group, Inc. |
| |||||||||||
5.000% due 05/15/2017 | 15 | 16 | ||||||||||
General Motors Financial Co., Inc. |
| |||||||||||
2.750% due 05/15/2016 | 13 | 13 | ||||||||||
Navient Corp. |
| |||||||||||
5.625% due 08/01/2033 | 47 | 38 | ||||||||||
OneMain Financial Holdings, Inc. |
| |||||||||||
7.250% due 12/15/2021 | 35 | 37 | ||||||||||
Springleaf Finance Corp. |
| |||||||||||
5.400% due 12/01/2015 | 15 | 15 | ||||||||||
|
| |||||||||||
171 | ||||||||||||
|
| |||||||||||
INDUSTRIALS 1.9% | ||||||||||||
Boxer Parent Co., Inc. (9.000% Cash or 9.750% PIK) |
| |||||||||||
9.000% due 10/15/2019 (a) | 10 | 7 | ||||||||||
Caesars Entertainment Operating Co., Inc. |
| |||||||||||
11.250% due 06/01/2017 ^ | 28 | 22 | ||||||||||
8.500% due 02/15/2020 ^ | 4 | 3 | ||||||||||
9.000% due 02/15/2020 ^ | 14 | 11 | ||||||||||
California Resources Corp. |
| |||||||||||
5.000% due 01/15/2020 | 10 | 9 | ||||||||||
5.500% due 09/15/2021 | 8 | 7 | ||||||||||
DISH DBS Corp. |
| |||||||||||
7.125% due 02/01/2016 | 15 | 16 | ||||||||||
Dynegy, Inc. |
| |||||||||||
6.750% due 11/01/2019 | 5 | 5 | ||||||||||
Gulfport Energy Corp. |
| |||||||||||
7.750% due 11/01/2020 | 12 | 13 | ||||||||||
iHeartCommunications, Inc. |
| |||||||||||
9.000% due 03/01/2021 | 20 | 18 | ||||||||||
Intrepid Aviation Group Holdings LLC |
| |||||||||||
6.875% due 02/15/2019 | 40 | 37 |
See Accompanying Notes | ANNUAL REPORT | JUNE 30, 2015 | 41 |
Table of Contents
Schedule of Investments PIMCO Balanced Income Fund (Cont.)
PRINCIPAL | MARKET VALUE (000S) | |||||||||||
MGM Resorts International |
| |||||||||||
6.625% due 07/15/2015 | $ | 15 | $ | 15 | ||||||||
Spanish Broadcasting System, Inc. |
| |||||||||||
12.500% due 04/15/2017 | 27 | 28 | ||||||||||
T-Mobile USA, Inc. |
| |||||||||||
6.375% due 03/01/2025 | 5 | 5 | ||||||||||
Tenet Healthcare Corp. |
| |||||||||||
4.375% due 10/01/2021 | 12 | 12 | ||||||||||
Times Square Hotel Trust |
| |||||||||||
8.528% due 08/01/2026 | 13 | 18 | ||||||||||
Westmoreland Coal Co. |
| |||||||||||
8.750% due 01/01/2022 | 38 | 36 | ||||||||||
Wynn Las Vegas LLC |
| |||||||||||
5.500% due 03/01/2025 | 45 | 43 | ||||||||||
|
| |||||||||||
305 | ||||||||||||
|
| |||||||||||
UTILITIES 0.3% | ||||||||||||
Illinois Power Generating Co. |
| |||||||||||
6.300% due 04/01/2020 | 30 | 27 | ||||||||||
Sprint Communications, Inc. |
| |||||||||||
9.125% due 03/01/2017 | 15 | 16 | ||||||||||
|
| |||||||||||
43 | ||||||||||||
|
| |||||||||||
Total United States | 519 | |||||||||||
|
| |||||||||||
Total Corporate Bonds & Notes (Cost $888) | 849 | |||||||||||
|
| |||||||||||
MORTGAGE-BACKED SECURITIES 6.9% | ||||||||||||
UNITED KINGDOM 0.9% | ||||||||||||
Indus Eclipse PLC |
| |||||||||||
0.821% due 01/25/2020 | GBP | 98 | 149 | |||||||||
|
| |||||||||||
Total United Kingdom | 149 | |||||||||||
|
| |||||||||||
UNITED STATES 6.0% | ||||||||||||
American Home Mortgage Assets Trust |
| |||||||||||
1.098% due 10/25/2046 | $ | 105 | 78 | |||||||||
BAMLL Re-REMIC Trust |
| |||||||||||
5.383% due 11/15/2016 | 22 | 23 | ||||||||||
BCAP LLC Trust |
| |||||||||||
2.421% due 10/26/2035 | 83 | 83 | ||||||||||
2.817% due 07/26/2036 | 65 | 65 | ||||||||||
Countrywide Alternative Loan Trust |
| |||||||||||
0.517% due 11/20/2035 | 299 | 243 | ||||||||||
6.000% due 08/25/2036 ^ | 49 | 46 | ||||||||||
Countrywide Home Loan Mortgage Pass-Through Trust |
| |||||||||||
5.750% due 12/25/2035 ^ | 77 | 73 | ||||||||||
5.750% due 06/25/2037 ^ | 47 | 43 | ||||||||||
Credit Suisse Mortgage Capital Certificates |
| |||||||||||
0.494% due 12/27/2035 | 53 | 51 |
PRINCIPAL | MARKET VALUE (000S) | |||||||||||
GSR Mortgage Loan Trust |
| |||||||||||
2.601% due 03/25/2037 ^ | $ | 46 | $ | 42 | ||||||||
HarborView Mortgage Loan Trust |
| |||||||||||
0.428% due 12/19/2036 ^ | 51 | 35 | ||||||||||
IndyMac Mortgage Loan Trust |
| |||||||||||
0.397% due 07/25/2036 | 60 | 49 | ||||||||||
Lehman XS Trust |
| |||||||||||
0.457% due 02/25/2036 | 47 | 40 | ||||||||||
Morgan Stanley Dean Witter Capital, Inc. Trust |
| |||||||||||
7.762% due 07/15/2033 | 26 | 29 | ||||||||||
Nationslink Funding Corp. Commercial Loan Pass-Through Certificates |
| |||||||||||
6.450% due 01/22/2026 | 28 | 31 | ||||||||||
Washington Mutual Mortgage Pass-Through Certificates Trust |
| |||||||||||
4.644% due 09/25/2036 ^ | 55 | 32 | ||||||||||
|
| |||||||||||
Total United States | 963 | |||||||||||
|
| |||||||||||
Total Mortgage-Backed Securities (Cost $1,100) | 1,112 | |||||||||||
|
| |||||||||||
SHARES | ||||||||||||
REAL ESTATE INVESTMENT TRUSTS 3.6% | ||||||||||||
UNITED STATES 3.6% | ||||||||||||
FINANCIALS 3.6% | ||||||||||||
Colony Capital, Inc. | 17,292 | 391 | ||||||||||
Outfront Media, Inc. | 7,596 | 192 | ||||||||||
|
| |||||||||||
583 | ||||||||||||
|
| |||||||||||
Total Real Estate Investment Trusts (Cost $623) | 583 | |||||||||||
|
| |||||||||||
PRINCIPAL AMOUNT (000S) | ||||||||||||
SOVEREIGN ISSUES 2.0% | ||||||||||||
BRAZIL 1.8% | ||||||||||||
Brazil Notas do Tesouro Nacional |
| |||||||||||
6.000% due 05/15/2045 | BRL | 96 | 30 | |||||||||
6.000% due 08/15/2050 | 104 | 33 | ||||||||||
10.000% due 01/01/2025 | 843 | 235 | ||||||||||
|
| |||||||||||
Total Brazil | 298 | |||||||||||
|
| |||||||||||
GREECE 0.2% | ||||||||||||
Republic of Greece Government International Bond |
| |||||||||||
3.000% due 02/24/2027 | EUR | 10 | 4 | |||||||||
3.000% due 02/24/2036 | 2 | 1 | ||||||||||
3.000% due 02/24/2037 | 2 | 1 | ||||||||||
3.000% due 02/24/2038 | 2 | 1 |
PRINCIPAL | MARKET VALUE (000S) | |||||||||||
3.000% due 02/24/2039 | EUR | 2 | $ | 1 | ||||||||
3.000% due 02/24/2040 | 2 | 1 | ||||||||||
3.000% due 02/24/2041 | 2 | 1 | ||||||||||
3.000% due 02/24/2042 | 2 | 1 | ||||||||||
3.800% due 08/08/2017 | JPY | 1,000 | 5 | |||||||||
4.750% due 04/17/2019 | EUR | 20 | 12 | |||||||||
|
| |||||||||||
Total Greece | 28 | |||||||||||
|
| |||||||||||
Total Sovereign Issues (Cost $410) | 326 | |||||||||||
|
| |||||||||||
U.S. TREASURY OBLIGATIONS 1.2% | ||||||||||||
UNITED STATES 1.2% | ||||||||||||
U.S. Treasury Notes | ||||||||||||
2.125% due 05/15/2025 | $ | 200 | 196 | |||||||||
|
| |||||||||||
Total U.S. Treasury Obligations (Cost $198) | 196 | |||||||||||
|
| |||||||||||
SHORT-TERM INSTRUMENTS 0.6% | ||||||||||||
SHORT-TERM NOTES 0.6% | ||||||||||||
Federal Home Loan Bank | ||||||||||||
0.154% due 11/18/2015 | 100 | 100 | ||||||||||
|
| |||||||||||
Total Short-Term Instruments (Cost $100) | 100 | |||||||||||
|
| |||||||||||
Total Investments in Securities (Cost $14,654) | 14,231 | |||||||||||
|
| |||||||||||
SHARES | ||||||||||||
INVESTMENTS IN AFFILIATES 12.2% | ||||||||||||
SHORT TERM INSTRUMENTS 12.2% | ||||||||||||
CENTRAL FUNDS USED FOR CASH MANAGEMENT PURPOSES 12.2% | ||||||||||||
PIMCO Short-Term | 199,052 | 1,974 | ||||||||||
|
| |||||||||||
Total Short Term Instruments (Cost $1,974) | 1,974 | |||||||||||
|
| |||||||||||
Total Investments in Affiliates (Cost $1,974) | 1,974 | |||||||||||
Total Investments 100.2% (Cost $16,628) | $ | 16,205 | ||||||||||
Financial Derivative (Cost or Premiums, net $(126)) |
| (102 | ) | |||||||||
Other Assets and Liabilities, net 0.4% | 76 | |||||||||||
|
| |||||||||||
Net Assets 100.0% | $ | 16,179 | ||||||||||
|
|
NOTES TO SCHEDULE OF INVESTMENTS (AMOUNTS IN THOUSANDS*, EXCEPT NUMBER OF CONTRACTS):
* | A zero balance may reflect actual amounts rounding to less than one thousand. |
^ | Security is in default. |
(a) | Payment in-kind bond security. |
(b) | Perpetual maturity; date shown, if applicable, represents next contractual call date. |
(c) FINANCIAL DERIVATIVE INSTRUMENTS: EXCHANGE-TRADED OR CENTRALLY CLEARED
FUTURES CONTRACTS:
Description | Type | Expiration Month | # of Contracts | Unrealized Appreciation/ (Depreciation) | Variation Margin | |||||||||||||||||
Asset | Liability | |||||||||||||||||||||
90-Day Eurodollar December Futures | Short | 12/2015 | 2 | $ | 0 | $ | 0 | $ | 0 | |||||||||||||
90-Day Eurodollar March Futures | Short | 03/2016 | 4 | (1 | ) | 0 | 0 | |||||||||||||||
|
|
|
|
|
| |||||||||||||||||
Total Futures Contracts | $ | (1 | ) | $ | 0 | $ | 0 | |||||||||||||||
|
|
|
|
|
|
42 | PIMCO EQUITY SERIES | See Accompanying Notes |
Table of Contents
June 30, 2015
SWAP AGREEMENTS:
CREDIT DEFAULT SWAPS ON CREDIT INDICES - SELL PROTECTION (1)
Index/Tranches | Fixed Deal Receive Rate | Maturity Date | Notional Amount (2) | Market Value (3) | Unrealized (Depreciation) | Variation Margin | ||||||||||||||||||||||
Asset | Liability | |||||||||||||||||||||||||||
CDX.HY-24 5-Year Index | 5.000% | 06/20/2020 | $ | 990 | $ | 63 | $ | (4 | ) | $ | 5 | $ | 0 | |||||||||||||||
|
|
|
|
|
|
|
|
(1) | If the Fund is a seller of protection and a credit event occurs, as defined under the terms of that particular swap agreement, the Fund will either (i) pay to the buyer of protection an amount equal to the notional amount of the swap and take delivery of the referenced obligation or underlying securities comprising the referenced index or (ii) pay a net settlement amount in the form of cash or securities equal to the notional amount of the swap less the recovery value of the referenced obligation or underlying securities comprising the referenced index. |
(2) | The maximum potential amount the Fund could be required to pay as a seller of credit protection or receive as a buyer of credit protection if a credit event occurs as defined under the terms of that particular swap agreement. |
(3) | The prices and resulting values for credit default swap agreements on credit indices serve as an indicator of the current status of the payment/performance risk and represent the likelihood of an expected liability (or profit) for the credit derivative should the notional amount of the swap agreement be closed/sold as of the period end. Increasing market values, in absolute terms when compared to the notional amount of the swap, represent a deterioration of the referenced indices’ credit soundness and a greater likelihood or risk of default or other credit event occurring as defined under the terms of the agreement. |
INTEREST RATE SWAPS
Pay/Receive Floating Rate | Floating Rate Index | Fixed Rate | Maturity Date | Notional Amount | Market Value | Unrealized Appreciation/ (Depreciation) | Variation Margin | |||||||||||||||||||||||
Asset | Liability | |||||||||||||||||||||||||||||
Pay | 3-Month USD-LIBOR | 2.250 | % | 12/17/2019 | $ 90 | $ | 2 | $ | 0 | $ | 0 | $ | 0 | |||||||||||||||||
Pay | 3-Month USD-LIBOR | 2.250 | % | 06/17/2020 | 650 | 16 | (1 | ) | 0 | 0 | ||||||||||||||||||||
Pay | 3-Month USD-LIBOR | 2.750 | % | 06/17/2025 | 100 | 3 | 1 | 0 | 0 | |||||||||||||||||||||
Receive | 3-Month USD-LIBOR | 2.750 | % | 12/16/2045 | 200 | 10 | 1 | 1 | 0 | |||||||||||||||||||||
Pay | 6-Month AUD-BBR-BBSW | 4.750 | % | 06/18/2024 | AUD 200 | 18 | 5 | 1 | 0 | |||||||||||||||||||||
Pay | 6-Month AUD-BBR-BBSW | 3.500 | % | 06/17/2025 | 120 | 1 | (4 | ) | 0 | 0 | ||||||||||||||||||||
Pay | 28-Day MXN-TIIE | 5.810 | % | 05/02/2022 | MXN 100 | 0 | 0 | 0 | 0 | |||||||||||||||||||||
Pay | 28-Day MXN-TIIE | 5.850 | % | 05/02/2022 | 400 | 0 | 0 | 0 | 0 | |||||||||||||||||||||
Pay | 28-Day MXN-TIIE | 5.980 | % | 08/26/2024 | 300 | 0 | 0 | 0 | 0 | |||||||||||||||||||||
|
|
|
|
|
|
|
| |||||||||||||||||||||||
$ | 50 | $ | 2 | $ | 2 | $ | 0 | |||||||||||||||||||||||
|
|
|
|
|
|
|
| |||||||||||||||||||||||
Total Swap Agreements | $ | 113 | $ | (2 | ) | $ | 7 | $ | 0 | |||||||||||||||||||||
|
|
|
|
|
|
|
|
FINANCIAL DERIVATIVE INSTRUMENTS: EXCHANGE-TRADED OR CENTRALLY CLEARED SUMMARY
The following is a summary of the market value and variation margin of Exchange-Traded or Centrally Cleared Financial Derivative Instruments as of June 30, 2015:
Cash of $135 has been pledged as collateral for exchange-traded and centrally cleared financial derivative instruments as of June 30, 2015. See Note 7, Principal Risks, in the Notes to Financial Statements for more information regarding master netting arrangements.
Financial Derivative Assets | Financial Derivative Liabilities | |||||||||||||||||||||||||||||||||
Market Value | Variation Margin Asset | Market Value | Variation Margin Liability | |||||||||||||||||||||||||||||||
Purchased Options | Futures | Swap Agreements | Total | Written Options | Futures | Swap Agreements | Total | |||||||||||||||||||||||||||
Total Exchange-Traded or Centrally Cleared | $ | 0 | $ | 0 | $ | 7 | $ | 7 | $ | 0 | $ | 0 | $ | 0 | $ | 0 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(d) FINANCIAL DERIVATIVE INSTRUMENTS: OVER THE COUNTER
FORWARD FOREIGN CURRENCY CONTRACTS:
Counterparty | Settlement | Currency to | Currency to | Unrealized Appreciation/ (Depreciation) | ||||||||||||||||||||||||
Asset | Liability | |||||||||||||||||||||||||||
BOA | 07/2015 | JPY | 14,800 | $ | 120 | $ | 0 | $ | (1 | ) | ||||||||||||||||||
08/2015 | DKK | 45 | 7 | 0 | 0 | |||||||||||||||||||||||
BPS | 07/2015 | BRL | 944 | 304 | 1 | 0 | ||||||||||||||||||||||
07/2015 | $ | 304 | BRL | 944 | 0 | (1 | ) | |||||||||||||||||||||
08/2015 | BRL | 944 | $ | 301 | 1 | 0 | ||||||||||||||||||||||
08/2015 | DKK | 55 | 8 | 0 | 0 | |||||||||||||||||||||||
BRC | 07/2015 | ZAR | 180 | 15 | 0 | 0 | ||||||||||||||||||||||
CBK | 07/2015 | AUD | 11 | 8 | 0 | 0 | ||||||||||||||||||||||
08/2015 | DKK | 70 | 10 | 0 | 0 | |||||||||||||||||||||||
DUB | 07/2015 | BRL | 655 | 223 | 12 | 0 | ||||||||||||||||||||||
07/2015 | $ | 211 | BRL | 655 | 0 | 0 | ||||||||||||||||||||||
See Accompanying Notes | ANNUAL REPORT | JUNE 30, 2015 | 43 |
Table of Contents
Schedule of Investments PIMCO Balanced Income Fund (Cont.)
Counterparty | Settlement | Currency to | Currency to | Unrealized Appreciation/ (Depreciation) | ||||||||||||||||||||||||
Asset | Liability | |||||||||||||||||||||||||||
FBF | 07/2015 | BRL | 246 | $ | 90 | $ | 11 | $ | 0 | |||||||||||||||||||
07/2015 | $ | 79 | BRL | 246 | 0 | 0 | ||||||||||||||||||||||
08/2015 | EUR | 246 | $ | 275 | 0 | 0 | ||||||||||||||||||||||
GLM | 07/2015 | BRL | 13 | 5 | 1 | 0 | ||||||||||||||||||||||
07/2015 | EUR | 23 | 25 | 0 | (1 | ) | ||||||||||||||||||||||
07/2015 | $ | 4 | BRL | 13 | 0 | 0 | ||||||||||||||||||||||
04/2016 | BRL | 24 | $ | 7 | 0 | 0 | ||||||||||||||||||||||
HUS | 07/2015 | EUR | 600 | 656 | 0 | (13 | ) | |||||||||||||||||||||
07/2015 | GBP | 95 | 146 | 0 | (3 | ) | ||||||||||||||||||||||
JPM | 07/2015 | AUD | 6 | 5 | 0 | 0 | ||||||||||||||||||||||
07/2015 | BRL | 30 | 11 | 1 | 0 | |||||||||||||||||||||||
07/2015 | EUR | 6 | 7 | 0 | 0 | |||||||||||||||||||||||
07/2015 | GBP | 14 | 21 | 0 | (1 | ) | ||||||||||||||||||||||
07/2015 | $ | 10 | BRL | 30 | 0 | 0 | ||||||||||||||||||||||
07/2015 | 172 | GBP | 109 | 0 | 0 | |||||||||||||||||||||||
08/2015 | GBP | 109 | $ | 172 | 0 | 0 | ||||||||||||||||||||||
MSB | 08/2015 | 515 | 811 | 2 | 0 | |||||||||||||||||||||||
08/2015 | $ | 242 | EUR | 217 | 0 | (1 | ) | |||||||||||||||||||||
04/2016 | BRL | 24 | $ | 7 | 0 | 0 | ||||||||||||||||||||||
NAB | 08/2015 | JPY | 14,800 | 121 | 0 | 0 | ||||||||||||||||||||||
SCX | 07/2015 | $ | 672 | EUR | 599 | 0 | (3 | ) | ||||||||||||||||||||
08/2015 | DKK | 70 | $ | 10 | 0 | 0 | ||||||||||||||||||||||
08/2015 | EUR | 610 | 684 | 4 | 0 | |||||||||||||||||||||||
|
|
|
| |||||||||||||||||||||||||
Total Forward Foreign Currency Contracts |
| $ | 33 | $ | (24 | ) | ||||||||||||||||||||||
|
|
|
|
WRITTEN OPTIONS:
FOREIGN CURRENCY OPTIONS
Counterparty | Description | Strike Price | Expiration Date | Notional | Premiums (Received) | Market Value | ||||||||||||||||||||||||
DUB | Put - OTC BRL versus JPY | JPY | 30.000 | 09/22/2016 | BRL | 10 | $ | 0 | $ | 0 | ||||||||||||||||||||
GLM | Call - OTC USD versus BRL | BRL | 3.905 | 03/31/2016 | $ | 40 | (1 | ) | (1 | ) | ||||||||||||||||||||
JPM | Put - OTC BRL versus JPY | JPY | 30.000 | 09/22/2016 | BRL | 30 | (1 | ) | (0 | ) | ||||||||||||||||||||
MSB | Put - OTC BRL versus JPY | 30.000 | 09/22/2016 | 20 | 0 | 0 | ||||||||||||||||||||||||
Call - OTC USD versus BRL | BRL | 3.950 | 04/14/2016 | $ | 40 | (1 | ) | (1 | ) | |||||||||||||||||||||
|
|
|
| |||||||||||||||||||||||||||
$ | (3 | ) | $ | (2 | ) | |||||||||||||||||||||||||
|
|
|
| |||||||||||||||||||||||||||
Total Written Options | $ | (3 | ) | $ | (2 | ) | ||||||||||||||||||||||||
|
|
|
|
TRANSACTIONS IN WRITTEN CALL AND PUT OPTIONS FOR THE PERIOD ENDED JUNE 30, 2015:
Notional Amount in $ | Notional | Premiums | ||||||||||||||
Balance at Beginning of Period | $ | 0 | BRL | 0 | $ | 0 | ||||||||||
Sales | 80 | 90 | (3 | ) | ||||||||||||
Closing Buys | 0 | (30 | ) | 0 | ||||||||||||
Expirations | 0 | 0 | 0 | |||||||||||||
Exercised | 0 | 0 | 0 | |||||||||||||
|
|
|
|
|
|
|
| |||||||||
Balance at End of Period | $ | 80 | BRL | 60 | $ | (3 | ) | |||||||||
|
|
|
|
|
|
|
|
SWAP AGREEMENTS:
CREDIT DEFAULT SWAPS ON CORPORATE AND SOVEREIGN ISSUES - SELL PROTECTION (1)
Counterparty | Reference Entity | Fixed Deal | Maturity | Implied | Notional | Premiums | Unrealized | Swap Agreements, at Value | ||||||||||||||||||||||||||||||
Asset | Liability | |||||||||||||||||||||||||||||||||||||
BPS | Petrobras International Finance Co. | 1.000% | 12/20/2019 | 4.087 | % | $ | 1 | $ | 0 | $ | 0 | $ | 0 | $ | 0 | |||||||||||||||||||||||
BRC | Novo Banco S.A. | 5.000% | 12/20/2019 | 3.136 | % | EUR | 15 | (1 | ) | 2 | 1 | 0 | ||||||||||||||||||||||||||
Petrobras International Finance Co. | 1.000% | 12/20/2019 | 4.087 | % | $ | 2 | 0 | 0 | 0 | 0 | ||||||||||||||||||||||||||||
GST | Gazprom OAO Via Gaz Capital S.A. | 1.000% | 06/20/2020 | 4.467 | % | 100 | (13 | ) | (2 | ) | 0 | (15 | ) | |||||||||||||||||||||||||
Greece Government International Bond | 1.000% | 09/20/2015 | (41.000 | )% | 3 | 0 | (1 | ) | 0 | (1 | ) |
44 | PIMCO EQUITY SERIES | See Accompanying Notes |
Table of Contents
June 30, 2015
Counterparty | Reference Entity | Fixed Deal | Maturity | Implied | Notional | Premiums | Unrealized | Swap Agreements, at Value | ||||||||||||||||||||||||||||||
Asset | Liability | |||||||||||||||||||||||||||||||||||||
Russia Government International Bond | 1.000% | 06/20/2020 | 3.365% | $ | 75 | $ | (9 | ) | $ | 1 | $ | 0 | $ | (8 | ) | |||||||||||||||||||||||
HUS | Petrobras International Finance Co. | 1.000% | 12/20/2019 | 4.087% | 23 | (2 | ) | (1 | ) | 0 | (3 | ) | ||||||||||||||||||||||||||
Russia Government International Bond | 1.000% | 06/20/2019 | 3.207% | 50 | (2 | ) | (2 | ) | 0 | (4 | ) | |||||||||||||||||||||||||||
Russia Government International Bond | 1.000% | 06/20/2024 | 3.530% | 50 | (5 | ) | (4 | ) | 0 | (9 | ) | |||||||||||||||||||||||||||
Russia Government International Bond | 1.000% | 09/20/2024 | 3.534% | 5 | (1 | ) | 0 | 0 | (1 | ) | ||||||||||||||||||||||||||||
JPM | Gazprom OAO Via Gaz Capital S.A. | 1.000% | 03/20/2016 | 3.394% | 90 | (8 | ) | 7 | 0 | (1 | ) | |||||||||||||||||||||||||||
Petrobras International Finance Co. | 1.000% | 12/20/2019 | 4.087% | 32 | (3 | ) | (1 | ) | 0 | (4 | ) | |||||||||||||||||||||||||||
MYC | Novo Banco S.A. | 5.000% | 12/20/2019 | 3.136% | EUR | 20 | 0 | 2 | 2 | 0 | ||||||||||||||||||||||||||||
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$ | (44 | ) | $ | 1 | $ | 3 | $ | (46 | ) | |||||||||||||||||||||||||||||
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CREDIT DEFAULT SWAPS ON CREDIT INDICES - SELL PROTECTION (1)
Counterparty | Index/Tranches | Fixed Deal Receive Rate | Maturity Date | Notional Amount (3) | Premiums (Received) | Unrealized Appreciation/ (Depreciation) | Swap Agreements, at Value (4) | |||||||||||||||||||||||
Asset | Liability | |||||||||||||||||||||||||||||
BOA | ABX.HE.AAA.6-2 Index | 0.110% | 05/25/2046 | $ | 125 | $ (25 | ) | $ | 2 | $ | 0 | $ | (23 | ) | ||||||||||||||||
FBF | CMBX.NA.AAA.6 Index | 0.500% | 05/11/2063 | 100 | (1 | ) | (1 | ) | 0 | (2 | ) | |||||||||||||||||||
CMBX.NA.AAA.7 Index | 0.500% | 01/17/2047 | 100 | (2 | ) | (1 | ) | 0 | (3 | ) | ||||||||||||||||||||
GST | CMBX.NA.AAA.6 Index | 0.500% | 05/11/2063 | 200 | (5 | ) | 1 | 0 | (4 | ) | ||||||||||||||||||||
CMBX.NA.AAA.7 Index | 0.500% | 01/17/2047 | 200 | (7 | ) | 1 | 0 | (6 | ) | |||||||||||||||||||||
MYC | ABX.HE.AAA.6-2 Index | 0.110% | 05/25/2046 | 200 | (39 | ) | 2 | 0 | (37 | ) | ||||||||||||||||||||
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$ (79 | ) | $ | 4 | $ | 0 | $ | (75 | ) | ||||||||||||||||||||||
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(1) | If the Fund is a seller of protection and a credit event occurs, as defined under the terms of that particular swap agreement, the Fund will either (i) pay to the buyer of protection an amount equal to the notional amount of the swap and take delivery of the referenced obligation or underlying securities comprising the referenced index or (ii) pay a net settlement amount in the form of cash or securities equal to the notional amount of the swap less the recovery value of the referenced obligation or underlying securities comprising the referenced index. |
(2) | Implied credit spreads, represented in absolute terms, utilized in determining the market value of credit default swap agreements on corporate or sovereign issues as of period end serve as an indicator of the current status of the payment/performance risk and represent the likelihood or risk of default for the credit derivative. The implied credit spread of a particular referenced entity reflects the cost of buying/selling protection and may include upfront payments required to be made to enter into the agreement. Wider credit spreads represent a deterioration of the referenced entity’s credit soundness and a greater likelihood or risk of default or other credit event occurring as defined under the terms of the agreement. |
(3) | The maximum potential amount the Fund could be required to pay as a seller of credit protection or receive as a buyer of credit protection if a credit event occurs as defined under the terms of that particular swap agreement. |
(4) | The prices and resulting values for credit default swap agreements on credit indices serve as an indicator of the current status of the payment/performance risk and represent the likelihood of an expected liability (or profit) for the credit derivative should the notional amount of the swap agreement be closed/sold as of the period end. Increasing market values, in absolute terms when compared to the notional amount of the swap, represent a deterioration of the referenced indices’ credit soundness and a greater likelihood or risk of default or other credit event occurring as defined under the terms of the agreement. |
INTEREST RATE SWAPS
Counterparty | Pay/Receive | Floating Rate Index | Fixed Rate | Maturity Date | Notional | Premiums | Unrealized | Swap Agreements, at Value | ||||||||||||||||||||||||||
Asset | Liability | |||||||||||||||||||||||||||||||||
BPS | Pay | 1-Year BRL-CDI | 12.000% | 01/04/2021 | BRL | 100 | $ | 0 | $ | (1 | ) | $ | 0 | $ | (1 | ) | ||||||||||||||||||
DUB | Pay | 1-Year BRL-CDI | 12.810% | 01/04/2021 | 30 | 0 | 0 | 0 | 0 | |||||||||||||||||||||||||
Pay | 3-Month USD-LIBOR | 2.150% | 08/24/2020 | $ | 200 | 0 | 2 | 2 | 0 | |||||||||||||||||||||||||
FBF | Pay | 1-Year BRL-CDI | 12.810% | 01/04/2021 | BRL | 40 | 0 | 0 | 0 | 0 | ||||||||||||||||||||||||
GLM | Pay | 3-Month USD-LIBOR | 2.150% | 08/24/2020 | $ | 50 | 0 | 1 | 1 | 0 | ||||||||||||||||||||||||
MYC | Pay | 1-Year BRL-CDI | 12.230% | 01/04/2021 | BRL | 100 | 0 | 0 | 0 | 0 | ||||||||||||||||||||||||
Pay | 1-Year BRL-CDI | 12.810% | 01/04/2021 | 40 | 0 | 0 | 0 | 0 | ||||||||||||||||||||||||||
Pay | 3-Month USD-LIBOR | 2.150% | 08/24/2020 | $ | 50 | 0 | 0 | 0 | 0 | |||||||||||||||||||||||||
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$ | 0 | $ | 2 | $ | 3 | $ | (1 | ) | ||||||||||||||||||||||||||
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Total Swap Agreements |
| $ | (123 | ) | $ | 7 | $ | 6 | $ | (122 | ) | |||||||||||||||||||||||
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See Accompanying Notes | ANNUAL REPORT | JUNE 30, 2015 | 45 |
Table of Contents
Schedule of Investments PIMCO Balanced Income Fund (Cont.)
FINANCIAL DERIVATIVE INSTRUMENTS: OVER THE COUNTER SUMMARY
The following is a summary by counterparty of the market value of OTC financial derivative instruments and collateral (received)/pledged as of June 30, 2015:
Financial Derivative Assets | Financial Derivative Liabilities | |||||||||||||||||||||||||||||||||||||||||||||
Counterparty | Forward Foreign Currency Contracts | Purchased Options | Swap Agreements | Total Over the Counter | Forward Foreign Currency Contracts | Written Options | Swap Agreements | Total Over the Counter | Net Market Value of OTC Derivatives | Collateral (Received)/ Pledged | Net Exposure (5) | |||||||||||||||||||||||||||||||||||
BOA | $ | 0 | $ | 0 | $ | 0 | $ | 0 | $ | (1 | ) | $ | 0 | $ | (23 | ) | $ | (24 | ) | $ | (24 | ) | $ | 0 | $ | (24 | ) | |||||||||||||||||||
BPS | 2 | 0 | 0 | 2 | (1 | ) | 0 | (1 | ) | (2 | ) | 0 | 0 | 0 | ||||||||||||||||||||||||||||||||
BRC | 0 | 0 | 1 | 1 | 0 | 0 | 0 | 0 | 1 | 0 | 1 | |||||||||||||||||||||||||||||||||||
DUB | 12 | 0 | 2 | 14 | 0 | 0 | 0 | 0 | 14 | 0 | 14 | |||||||||||||||||||||||||||||||||||
FBF | 11 | 0 | 0 | 11 | 0 | 0 | (5 | ) | (5 | ) | 6 | 0 | 6 | |||||||||||||||||||||||||||||||||
GLM | 1 | 0 | 1 | 2 | (1 | ) | (1 | ) | 0 | (2 | ) | 0 | 0 | 0 | ||||||||||||||||||||||||||||||||
GST | 0 | 0 | 0 | 0 | 0 | 0 | (34 | ) | (34 | ) | (34 | ) | 0 | (34 | ) | |||||||||||||||||||||||||||||||
HUS | 0 | 0 | 0 | 0 | (16 | ) | 0 | (17 | ) | (33 | ) | (33 | ) | 0 | (33 | ) | ||||||||||||||||||||||||||||||
JPM | 1 | 0 | 0 | 1 | (1 | ) | 0 | (5 | ) | (6 | ) | (5 | ) | 0 | (5 | ) | ||||||||||||||||||||||||||||||
MSB | 2 | 0 | 0 | 2 | (1 | ) | (1 | ) | 0 | (2 | ) | 0 | 0 | 0 | ||||||||||||||||||||||||||||||||
MYC | 0 | 0 | 2 | 2 | 0 | 0 | (37 | ) | (37 | ) | (35 | ) | 0 | (35 | ) | |||||||||||||||||||||||||||||||
SCX | 4 | 0 | 0 | 4 | (3 | ) | 0 | 0 | (3 | ) | 1 | 0 | 1 | |||||||||||||||||||||||||||||||||
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Total Over the Counter | $ | 33 | $ | 0 | $ | 6 | $ | 39 | $ | (24 | ) | $ | (2 | ) | $ | (122 | ) | $ | (148 | ) | ||||||||||||||||||||||||||
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(5) | Net Exposure represents the net receivable/(payable) that would be due from/to the counterparty in the event of default. Exposure from OTC financial derivative instruments can only be netted across transactions governed under the same master agreement with the same legal entity. See Note 7, Principal Risks, in the Notes to Financial Statements for more information regarding master netting arrangements. |
FAIR VALUE OF FINANCIAL DERIVATIVE INSTRUMENTS
The following is a summary of the fair valuation of the Fund’s derivative instruments categorized by risk exposure. See Note 7, Principal Risks, in the Notes to Financial Statements on risks of the Fund.
Fair Values of Financial Derivative Instruments on the Statements of Assets and Liabilities as of June 30, 2015:
Derivatives not accounted for as hedging instruments | ||||||||||||||||||||||||
Commodity Contracts | Credit Contracts | Equity Contracts | Foreign Exchange Contracts | Interest Rate Contracts | Total | |||||||||||||||||||
Financial Derivative Instruments - Assets | ||||||||||||||||||||||||
Exchange-traded or centrally cleared | ||||||||||||||||||||||||
Swap Agreements | $ | 0 | $ | 5 | $ | 0 | $ | 0 | $ | 2 | $ | 7 | ||||||||||||
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Over the counter | ||||||||||||||||||||||||
Forward Foreign Currency Contracts | $ | 0 | $ | 0 | $ | 0 | $ | 33 | $ | 0 | $ | 33 | ||||||||||||
Swap Agreements | 0 | 3 | 0 | 0 | 3 | 6 | ||||||||||||||||||
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$ | 0 | $ | 3 | $ | 0 | $ | 33 | $ | 3 | $ | 39 | |||||||||||||
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$ | 0 | $ | 8 | $ | 0 | $ | 33 | $ | 5 | $ | 46 | |||||||||||||
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Financial Derivative Instruments - Liabilities | ||||||||||||||||||||||||
Over the counter | ||||||||||||||||||||||||
Forward Foreign Currency Contracts | $ | 0 | $ | 0 | $ | 0 | $ | 24 | $ | 0 | $ | 24 | ||||||||||||
Written Options | 0 | 0 | 0 | 2 | 0 | 2 | ||||||||||||||||||
Swap Agreements | 0 | 121 | 0 | 0 | 1 | 122 | ||||||||||||||||||
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$ | 0 | $ | 121 | $ | 0 | $ | 26 | $ | 1 | $ | 148 | |||||||||||||
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46 | PIMCO EQUITY SERIES | See Accompanying Notes |
Table of Contents
June 30, 2015
The Effect of Financial Derivative Instruments on the Statements of Operations for the period ended June 30, 2015:
Derivatives not accounted for as hedging instruments | ||||||||||||||||||||||||
Commodity Contracts | Credit Contracts | Equity Contracts | Foreign Exchange Contracts | Interest Rate Contracts | Total | |||||||||||||||||||
Net Realized Gain (Loss) on Financial Derivative Instruments |
| |||||||||||||||||||||||
Exchange-traded or centrally cleared | ||||||||||||||||||||||||
Swap Agreements | $ | 0 | $ | 7 | $ | 0 | $ | 0 | $ | 11 | $ | 18 | ||||||||||||
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Over the counter | ||||||||||||||||||||||||
Forward Foreign Currency Contracts | $ | 0 | $ | 0 | $ | 0 | $ | 154 | $ | 0 | $ | 154 | ||||||||||||
Swap Agreements | 0 | 5 | 0 | 0 | 0 | 5 | ||||||||||||||||||
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$ | 0 | $ | 5 | $ | 0 | $ | 154 | $ | 0 | $ | 159 | |||||||||||||
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$ | 0 | $ | 12 | $ | 0 | $ | 154 | $ | 11 | $ | 177 | |||||||||||||
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Net Change in Unrealized Appreciation (Depreciation) on Financial Derivative Instruments |
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Exchange-traded or centrally cleared | ||||||||||||||||||||||||
Futures | $ | 0 | $ | 0 | $ | 0 | $ | 0 | $ | (1 | ) | $ | (1 | ) | ||||||||||
Swap Agreements | 0 | (4 | ) | 0 | 0 | 2 | (2 | ) | ||||||||||||||||
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$ | 0 | $ | (4 | ) | $ | 0 | $ | 0 | $ | 1 | $ | (3 | ) | |||||||||||
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Over the counter | ||||||||||||||||||||||||
Forward Foreign Currency Contracts | $ | 0 | $ | 0 | $ | 0 | $ | 14 | $ | 0 | $ | 14 | ||||||||||||
Written Options | 0 | 0 | 0 | 1 | 0 | 1 | ||||||||||||||||||
Swap Agreements | 0 | 4 | 0 | 0 | 2 | 6 | ||||||||||||||||||
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$ | 0 | $ | 4 | $ | 0 | $ | 15 | $ | 2 | $ | 21 | |||||||||||||
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$ | 0 | $ | 0 | $ | 0 | $ | 15 | $ | 3 | $ | 18 | |||||||||||||
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FAIR VALUE MEASUREMENTS
The following is a summary of the fair valuations according to the inputs used as of June 30, 2015 in valuing the Fund’s assets and liabilities:
Category and Subcategory | Level 1 | Level 2 | Level 3 | Fair Value at 06/30/2015 | ||||||||||||
Investments in Securities, at Value | ||||||||||||||||
Asset-Backed Securities | ||||||||||||||||
United States | $ | 0 | $ | 1,687 | $ | 16 | $ | 1,703 | ||||||||
Bank Loan Obligations | ||||||||||||||||
United States | 0 | 278 | 0 | 278 | ||||||||||||
Common Stocks | ||||||||||||||||
Australia | ||||||||||||||||
Consumer Discretionary | 0 | 201 | 0 | 201 | ||||||||||||
Health Care | 0 | 148 | 0 | 148 | ||||||||||||
Industrials | 0 | 192 | 0 | 192 | ||||||||||||
Bermuda | ||||||||||||||||
Industrials | 243 | 0 | 0 | 243 | ||||||||||||
Brazil | ||||||||||||||||
Industrials | 86 | 0 | 0 | 86 | ||||||||||||
Utilities | 41 | 0 | 0 | 41 | ||||||||||||
Canada | ||||||||||||||||
Utilities | 195 | 0 | 0 | 195 | ||||||||||||
China | ||||||||||||||||
Consumer Staples | 0 | 90 | 0 | 90 | ||||||||||||
Cyprus | ||||||||||||||||
Energy | 0 | 45 | 0 | 45 | ||||||||||||
France | ||||||||||||||||
Utilities | 0 | 325 | 0 | 325 | ||||||||||||
Germany | ||||||||||||||||
Utilities | 0 | 187 | 0 | 187 | ||||||||||||
Greece | ||||||||||||||||
Consumer Discretionary | 0 | 93 | 0 | 93 | ||||||||||||
Hong Kong | ||||||||||||||||
Consumer Discretionary | 0 | 198 | 0 | 198 | ||||||||||||
Telecommunication Services | 0 | 237 | 0 | 237 | ||||||||||||
Italy | ||||||||||||||||
Financials | 0 | 302 | 0 | 302 | ||||||||||||
Industrials | 0 | 92 | 0 | 92 | ||||||||||||
Mexico | ||||||||||||||||
Consumer Staples | 49 | 0 | 0 | 49 |
Category and Subcategory | Level 1 | Level 2 | Level 3 | Fair Value at 06/30/2015 | ||||||||||||
Netherlands | ||||||||||||||||
Financials | $ | 0 | $ | 338 | $ | 0 | $ | 338 | ||||||||
South Africa | ||||||||||||||||
Telecommunication Services | 0 | 204 | 0 | 204 | ||||||||||||
Spain | ||||||||||||||||
Consumer Staples | 0 | 137 | 0 | 137 | ||||||||||||
Switzerland | ||||||||||||||||
Health Care | 0 | 244 | 0 | 244 | ||||||||||||
Taiwan | ||||||||||||||||
Information Technology | 0 | 100 | 0 | 100 | ||||||||||||
Thailand | ||||||||||||||||
Telecommunication Services | 0 | 91 | 0 | 91 | ||||||||||||
Turkey | ||||||||||||||||
Industrials | 0 | 102 | 0 | 102 | ||||||||||||
United Kingdom | ||||||||||||||||
Consumer Staples | 0 | 286 | 0 | 286 | ||||||||||||
Financials | 0 | 815 | 0 | 815 | ||||||||||||
Telecommunication Services | 0 | 389 | 0 | 389 | ||||||||||||
United States | ||||||||||||||||
Consumer Discretionary | 369 | 0 | 0 | 369 | ||||||||||||
Energy | 142 | 0 | 0 | 142 | ||||||||||||
Financials | 827 | 0 | 0 | 827 | ||||||||||||
Health Care | 435 | 0 | 0 | 435 | ||||||||||||
Industrials | 145 | 0 | 0 | 145 | ||||||||||||
Information Technology | 514 | 0 | 0 | 514 | ||||||||||||
Materials | 266 | 0 | 0 | 266 | ||||||||||||
Telecommunication Services | 249 | 0 | 0 | 249 | ||||||||||||
Utilities | 707 | 0 | 0 | 707 | ||||||||||||
Corporate Bonds & Notes | ||||||||||||||||
Brazil | ||||||||||||||||
Utilities | 0 | 66 | 0 | 66 | ||||||||||||
Denmark | ||||||||||||||||
Banking & Finance | 0 | 34 | 0 | 34 | ||||||||||||
Ireland | ||||||||||||||||
Industrials | 0 | 97 | 0 | 97 |
See Accompanying Notes | ANNUAL REPORT | JUNE 30, 2015 | 47 |
Table of Contents
Schedule of Investments PIMCO Balanced Income Fund (Cont.)
June 30, 2015
Category and Subcategory | Level 1 | Level 2 | Level 3 | Fair Value at 06/30/2015 | ||||||||||||
Netherlands | ||||||||||||||||
Banking & Finance | $ | 0 | $ | 105 | $ | 0 | $ | 105 | ||||||||
Norway | ||||||||||||||||
Banking & Finance | 0 | 2 | 0 | 2 | ||||||||||||
Portugal | ||||||||||||||||
Banking & Finance | 0 | 6 | 0 | 6 | ||||||||||||
United Kingdom | ||||||||||||||||
Industrials | 0 | 20 | 0 | 20 | ||||||||||||
United States | ||||||||||||||||
Banking & Finance | 0 | 171 | 0 | 171 | ||||||||||||
Industrials | 0 | 305 | 0 | 305 | ||||||||||||
Utilities | 0 | 43 | 0 | 43 | ||||||||||||
Mortgage-Backed Securities | ||||||||||||||||
United Kingdom | 0 | 149 | 0 | 149 | ||||||||||||
United States | 0 | 963 | 0 | 963 | ||||||||||||
Real Estate Investment Trusts | ||||||||||||||||
United States | ||||||||||||||||
Financials | 583 | 0 | 0 | 583 | ||||||||||||
Sovereign Issues | ||||||||||||||||
Brazil | 0 | 298 | 0 | 298 | ||||||||||||
Greece | 0 | 28 | 0 | 28 | ||||||||||||
U.S. Treasury Obligations | ||||||||||||||||
United States | 0 | 196 | 0 | 196 |
Category and Subcategory | Level 1 | Level 2 | Level 3 | Fair Value at 06/30/2015 | ||||||||||||
Short-Term Instruments | ||||||||||||||||
Short-Term Notes | $ | 0 | $ | 100 | $ | 0 | $ | 100 | ||||||||
$ | 4,851 | $ | 9,364 | $ | 16 | $ | 14,231 | |||||||||
Investments in Affiliates, at Value | ||||||||||||||||
Short Term Instruments | ||||||||||||||||
Central Funds Used for Cash Management Purposes | 1,974 | 0 | 0 | 1,974 | ||||||||||||
Total Investments | $ | 6,825 | $ | 9,364 | $ | 16 | $ | 16,205 | ||||||||
Financial Derivative Instruments - Assets |
| |||||||||||||||
Exchange-traded or centrally cleared | 0 | 7 | 0 | 7 | ||||||||||||
Over the counter | 0 | 39 | 0 | 39 | ||||||||||||
$ | 0 | $ | 46 | $ | 0 | $ | 46 | |||||||||
Financial Derivative Instruments - Liabilities |
| |||||||||||||||
Over the counter | 0 | (148 | ) | 0 | (148 | ) | ||||||||||
Totals | $ | 6,825 | $ | 9,262 | $ | 16 | $ | 16,103 |
There were assets and liabilities valued at $192 transferred from Level 1 to Level 2 during the period ended June 30, 2015. There were no significant assets and liabilities transferred from Level 2 to Level 1 during the period ended June 30, 2015. There were no significant transfers between Levels 2 and 3 during the period ended June 30, 2015.
48 | PIMCO EQUITY SERIES | See Accompanying Notes |
Table of Contents
Schedule of Investments PIMCO Dividend and Income Builder Fund
June 30, 2015
PRINCIPAL AMOUNT (000S) | MARKET VALUE (000S) | |||||||||||
INVESTMENTS IN SECURITIES 98.2% | ||||||||||||
ASSET-BACKED SECURITIES 1.6% | ||||||||||||
UNITED STATES 1.6% | ||||||||||||
Citigroup Mortgage Loan Trust, Inc. |
| |||||||||||
0.477% due 10/25/2036 | $ | 3,000 | $ | 2,644 | ||||||||
Credit Suisse First Boston Mortgage Securities Corp. |
| |||||||||||
0.805% due 01/25/2032 | 109 | 97 | ||||||||||
EMC Mortgage Loan Trust |
| |||||||||||
1.487% due 02/25/2041 | 51 | 50 | ||||||||||
HSI Asset Securitization Corp. Trust |
| |||||||||||
0.357% due 12/25/2036 | 6,037 | 2,915 | ||||||||||
JPMorgan Mortgage Acquisition Trust |
| |||||||||||
5.181% due 11/25/2036 | 200 | 200 | ||||||||||
Morgan Stanley Home Equity Loan Trust |
| |||||||||||
0.287% due 12/25/2036 | 196 | 123 | ||||||||||
Residential Asset Securities Corp. Trust |
| |||||||||||
1.070% due 01/25/2034 | 2,601 | 2,331 | ||||||||||
Structured Asset Investment Loan Trust |
| |||||||||||
0.337% due 09/25/2036 | 7,895 | 6,422 | ||||||||||
|
| |||||||||||
Total Asset-Backed Securities |
| 14,782 | ||||||||||
|
| |||||||||||
BANK LOAN OBLIGATIONS 0.3% | ||||||||||||
BRAZIL 0.0% | ||||||||||||
OGX |
| |||||||||||
TBD% - 13.000% due 04/10/2049 | 15 | 17 | ||||||||||
|
| |||||||||||
Total Brazil | 17 | |||||||||||
|
| |||||||||||
LUXEMBOURG 0.0% | ||||||||||||
Ortho-Clinical Diagnostics, Inc. |
| |||||||||||
4.750% due 06/30/2021 | 248 | 243 | ||||||||||
|
| |||||||||||
Total Luxembourg | 243 | |||||||||||
|
| |||||||||||
UNITED STATES 0.3% | ||||||||||||
Clear Channel Communications, Inc. |
| |||||||||||
6.937% due 01/30/2019 | 300 | 278 | ||||||||||
Energy Future Intermediate Holding Co. LLC |
| |||||||||||
4.250% due 06/19/2016 | 2,217 | 2,223 | ||||||||||
|
| |||||||||||
Total United States | 2,501 | |||||||||||
|
| |||||||||||
Total Bank Loan Obligations | 2,761 | |||||||||||
|
| |||||||||||
SHARES | ||||||||||||
COMMON STOCKS 85.6% | ||||||||||||
AUSTRALIA 5.0% | ||||||||||||
CONSUMER DISCRETIONARY 1.9% | ||||||||||||
G8 Education Ltd. | 7,062,428 | 17,749 | ||||||||||
|
| |||||||||||
HEALTH CARE 1.4% | ||||||||||||
Sonic Healthcare Ltd. | 805,026 | 13,256 | ||||||||||
|
| |||||||||||
INDUSTRIALS 1.7% | ||||||||||||
Spotless Group Holdings Ltd. | 10,023,451 | 16,135 | ||||||||||
|
| |||||||||||
Total Australia | 47,140 | |||||||||||
|
| |||||||||||
BERMUDA 2.0% | ||||||||||||
INDUSTRIALS 2.0% | ||||||||||||
Golar LNG Partners LP | 771,396 | 19,030 | ||||||||||
|
| |||||||||||
Total Bermuda | 19,030 | |||||||||||
|
|
SHARES | MARKET VALUE (000S) | |||||||||||
BRAZIL 1.3% | ||||||||||||
INDUSTRIALS 0.9% | ||||||||||||
Arteris S.A. | 2,685,400 | $ | 8,162 | |||||||||
|
| |||||||||||
UTILITIES 0.4% | ||||||||||||
Light S.A. | 749,400 | 4,081 | ||||||||||
|
| |||||||||||
Total Brazil | 12,243 | |||||||||||
|
| |||||||||||
CANADA 1.7% | ||||||||||||
UTILITIES 1.7% | ||||||||||||
Capital Power Corp. | 924,933 | 15,951 | ||||||||||
|
| |||||||||||
Total Canada | 15,951 | |||||||||||
|
| |||||||||||
CHINA 0.9% | ||||||||||||
CONSUMER STAPLES 0.9% | ||||||||||||
Want Want China Holdings Ltd. | 8,184,000 | 8,641 | ||||||||||
|
| |||||||||||
Total China | 8,641 | |||||||||||
|
| |||||||||||
CYPRUS 0.5% | ||||||||||||
ENERGY 0.5% | ||||||||||||
ProSafe SE | 1,330,150 | 4,609 | ||||||||||
|
| |||||||||||
Total Cyprus | 4,609 | |||||||||||
|
| |||||||||||
FRANCE 3.0% | ||||||||||||
UTILITIES 3.0% | ||||||||||||
Electricite de France S.A. | 716,782 | 16,033 | ||||||||||
Suez Environnement Co. | 665,106 | 12,417 | ||||||||||
|
| |||||||||||
28,450 | ||||||||||||
|
| |||||||||||
Total France | 28,450 | |||||||||||
|
| |||||||||||
GERMANY 1.7% | ||||||||||||
UTILITIES 1.7% | ||||||||||||
E.ON SE | 1,177,944 | 15,707 | ||||||||||
|
| |||||||||||
Total Germany | 15,707 | |||||||||||
|
| |||||||||||
GREECE 0.8% | ||||||||||||
CONSUMER DISCRETIONARY 0.8% | ||||||||||||
OPAP S.A. | 888,397 | 7,085 | ||||||||||
|
| |||||||||||
Total Greece | 7,085 | |||||||||||
|
| |||||||||||
HONG KONG 4.0% | ||||||||||||
CONSUMER DISCRETIONARY 1.8% | ||||||||||||
Li & Fung Ltd. | 20,442,000 | 16,206 | ||||||||||
|
| |||||||||||
TELECOMMUNICATION SERVICES 2.2% | ||||||||||||
China Mobile Ltd. | 1,613,000 | 20,668 | ||||||||||
|
| |||||||||||
Total Hong Kong | 36,874 | |||||||||||
|
| |||||||||||
ITALY 3.6% | ||||||||||||
FINANCIALS 2.8% | ||||||||||||
Intesa Sanpaolo SpA | 7,109,611 | 25,818 | ||||||||||
|
| |||||||||||
SHARES | MARKET VALUE (000S) | |||||||||||
INDUSTRIALS 0.8% | ||||||||||||
Societa Iniziative Autostradali e Servizi SpA | 755,603 | $ | 8,065 | |||||||||
|
| |||||||||||
Total Italy | 33,883 | |||||||||||
|
| |||||||||||
MEXICO 0.5% | ||||||||||||
CONSUMER STAPLES 0.5% | ||||||||||||
Coca-Cola Femsa S.A.B. de C.V. | 545,400 | 4,334 | ||||||||||
|
| |||||||||||
Total Mexico | 4,334 | |||||||||||
|
| |||||||||||
NETHERLANDS 3.2% | ||||||||||||
FINANCIALS 3.2% | ||||||||||||
Aegon NV | 1,638,797 | 12,091 | ||||||||||
NN Group NV | 639,568 | 18,012 | ||||||||||
|
| |||||||||||
30,103 | ||||||||||||
|
| |||||||||||
Total Netherlands | 30,103 | |||||||||||
|
| |||||||||||
SOUTH AFRICA 2.0% | ||||||||||||
TELECOMMUNICATION SERVICES 2.0% | ||||||||||||
MTN Group Ltd. | 974,232 | 18,300 | ||||||||||
|
| |||||||||||
Total South Africa | 18,300 | |||||||||||
|
| |||||||||||
SPAIN 1.4% | ||||||||||||
CONSUMER STAPLES 1.4% | ||||||||||||
Ebro Foods S.A. | 686,979 | 13,310 | ||||||||||
|
| |||||||||||
Total Spain | 13,310 | |||||||||||
|
| |||||||||||
SWITZERLAND 2.2% | ||||||||||||
HEALTH CARE 2.2% | ||||||||||||
Roche Holding AG | 72,256 | 20,260 | ||||||||||
|
| |||||||||||
Total Switzerland | 20,260 | |||||||||||
|
| |||||||||||
TAIWAN 0.9% | ||||||||||||
INFORMATION TECHNOLOGY 0.9% | ||||||||||||
Radiant Opto-Electronics Corp. | 2,332,590 | 8,650 | ||||||||||
|
| |||||||||||
Total Taiwan | 8,650 | |||||||||||
|
| |||||||||||
THAILAND 0.9% | ||||||||||||
TELECOMMUNICATION SERVICES 0.9% | ||||||||||||
Total Access Communication PCL - NVDR | 3,396,500 | 8,354 | ||||||||||
|
| |||||||||||
Total Thailand | 8,354 | |||||||||||
|
| |||||||||||
TURKEY 0.9% | ||||||||||||
INDUSTRIALS 0.9% | ||||||||||||
TAV Havalimanlari Holding A/S | 985,562 | 8,367 | ||||||||||
|
| |||||||||||
Total Turkey | 8,367 | |||||||||||
|
| |||||||||||
UNITED KINGDOM 13.9% | ||||||||||||
CONSUMER STAPLES 2.6% | ||||||||||||
Imperial Tobacco Group PLC | 510,639 | 24,594 | ||||||||||
|
| |||||||||||
FINANCIALS 7.7% | ||||||||||||
HSBC Holdings PLC | 3,211,277 | 28,755 |
See Accompanying Notes | ANNUAL REPORT | JUNE 30, 2015 | 49 |
Table of Contents
Schedule of Investments PIMCO Dividend and Income Builder Fund (Cont.)
SHARES | MARKET VALUE (000S) | |||||||||||
ICAP PLC | 1,468,107 | $ | 12,212 | |||||||||
Lloyds Banking Group PLC | 22,650,992 | 30,402 | ||||||||||
|
| |||||||||||
71,369 | ||||||||||||
|
| |||||||||||
TELECOMMUNICATION SERVICES 3.6% | ||||||||||||
Vodafone Group PLC | 9,248,746 | 33,738 | ||||||||||
|
| |||||||||||
Total United Kingdom | 129,701 | |||||||||||
|
| |||||||||||
UNITED STATES 35.2% | ||||||||||||
CONSUMER DISCRETIONARY 3.5% | ||||||||||||
General Motors Co. | 492,347 | 16,410 | ||||||||||
Kohl’s Corp. | 262,307 | 16,423 | ||||||||||
|
| |||||||||||
32,833 | ||||||||||||
|
| |||||||||||
ENERGY 1.4% | ||||||||||||
Targa Resources Corp. | 148,335 | 13,235 | ||||||||||
|
| |||||||||||
FINANCIALS 8.2% | ||||||||||||
Apollo Investment Corp. | 1,410,837 | 9,989 | ||||||||||
JPMorgan Chase & Co. | 306,596 | 20,775 | ||||||||||
Navient Corp. | 914,820 | 16,659 | ||||||||||
Prudential Financial, Inc. | 243,496 | 21,311 | ||||||||||
Solar Capital Ltd. | 457,529 | 8,235 | ||||||||||
|
| |||||||||||
76,969 | ||||||||||||
|
| |||||||||||
HEALTH CARE 4.0% | ||||||||||||
AbbVie, Inc. | 128,747 | 8,651 | ||||||||||
Merck & Co., Inc. | 215,518 | 12,269 | ||||||||||
Pfizer, Inc. | 504,660 | 16,921 | ||||||||||
|
| |||||||||||
37,841 | ||||||||||||
|
| |||||||||||
INDUSTRIALS 1.4% | ||||||||||||
RR Donnelley & Sons Co. | 723,970 | 12,619 | ||||||||||
|
| |||||||||||
INFORMATION TECHNOLOGY 5.1% | ||||||||||||
Cisco Systems, Inc. | 599,778 | 16,470 | ||||||||||
QUALCOMM, Inc. | 307,522 | 19,260 | ||||||||||
Symantec Corp. | 513,008 | 11,927 | ||||||||||
|
| |||||||||||
47,657 | ||||||||||||
|
| |||||||||||
MATERIALS 2.3% | ||||||||||||
International Paper Co. | 250,249 | 11,909 | ||||||||||
Tronox Ltd. ‘A’ | 642,981 | 9,407 | ||||||||||
|
| |||||||||||
21,316 | ||||||||||||
|
| |||||||||||
TELECOMMUNICATION SERVICES 2.4% | ||||||||||||
AT&T, Inc. | 630,973 | 22,412 | ||||||||||
|
| |||||||||||
UTILITIES 6.9% | ||||||||||||
Ameren Corp. | 585,919 | 22,077 | ||||||||||
ONE Gas, Inc. | 409,893 | 17,445 | ||||||||||
PG&E Corp. | 502,925 | 24,694 | ||||||||||
|
| |||||||||||
64,216 | ||||||||||||
|
| |||||||||||
Total United States | 329,098 | |||||||||||
|
| |||||||||||
Total Common Stocks (Cost $814,397) | 800,090 | |||||||||||
|
|
PRINCIPAL | MARKET VALUE (000S) | |||||||||||
CORPORATE BONDS & NOTES 1.9% | ||||||||||||
AUSTRIA 0.0% | ||||||||||||
INDUSTRIALS 0.0% | ||||||||||||
OGX Austria GmbH |
| |||||||||||
8.375% due 04/01/2022 ^ | $ | 200 | $ | 1 | ||||||||
8.500% due 06/01/2018 ^ | 200 | 1 | ||||||||||
|
| |||||||||||
2 | ||||||||||||
|
| |||||||||||
Total Austria | 2 | |||||||||||
|
| |||||||||||
BRAZIL 0.2% | ||||||||||||
BANKING & FINANCE 0.0% | ||||||||||||
Banco Votorantim S.A. |
| |||||||||||
5.250% due 02/11/2016 | 200 | 204 | ||||||||||
|
| |||||||||||
UTILITIES 0.2% | ||||||||||||
Centrais Eletricas Brasileiras S.A. |
| |||||||||||
6.875% due 07/30/2019 | 400 | 409 | ||||||||||
Petrobras Global Finance BV |
| |||||||||||
2.415% due 01/15/2019 | 9 | 8 | ||||||||||
2.643% due 03/17/2017 | 23 | 22 | ||||||||||
3.163% due 03/17/2020 | 11 | 10 | ||||||||||
3.250% due 03/17/2017 | 20 | 20 | ||||||||||
3.500% due 02/06/2017 | 28 | 28 | ||||||||||
4.250% due 10/02/2023 | EUR | 100 | 101 | |||||||||
4.375% due 05/20/2023 | 45 | 39 | ||||||||||
4.875% due 03/17/2020 | 243 | 232 | ||||||||||
5.375% due 01/27/2021 | 1,083 | 1,045 | ||||||||||
6.250% due 12/14/2026 | GBP | 100 | 140 | |||||||||
6.850% due 06/05/2115 | $ | 90 | 75 | |||||||||
|
| |||||||||||
2,129 | ||||||||||||
|
| |||||||||||
Total Brazil | 2,333 | |||||||||||
|
| |||||||||||
CAYMAN ISLANDS 0.0% | ||||||||||||
UTILITIES 0.0% | ||||||||||||
Odebrecht Drilling Norbe Ltd. |
| |||||||||||
6.350% due 06/30/2022 | 170 | 132 | ||||||||||
|
| |||||||||||
Total Cayman Islands | 132 | |||||||||||
|
| |||||||||||
FRANCE 0.1% | ||||||||||||
BANKING & FINANCE 0.1% | ||||||||||||
BPCE S.A. |
| |||||||||||
12.500% due 08/29/2049 | 100 | 133 | ||||||||||
12.500% due 09/30/2019 (c) | EUR | �� | 300 | 459 | ||||||||
|
| |||||||||||
592 | ||||||||||||
|
| |||||||||||
Total France | 592 | |||||||||||
|
| |||||||||||
IRELAND 0.1% | ||||||||||||
BANKING & FINANCE 0.0% | ||||||||||||
Vnesheconombank Via VEB Finance PLC |
| |||||||||||
5.450% due 11/22/2017 | 100 | 101 | ||||||||||
6.902% due 07/09/2020 | $ | 100 | 98 | |||||||||
|
| |||||||||||
199 | ||||||||||||
|
| |||||||||||
INDUSTRIALS 0.1% | ||||||||||||
Russian Railways via RZD Capital PLC |
| |||||||||||
7.487% due 03/25/2031 | GBP | 300 | 436 | |||||||||
|
| |||||||||||
PRINCIPAL | MARKET VALUE (000S) | |||||||||||
UTILITIES 0.0% | ||||||||||||
AK Transneft OJSC Via TransCapitalInvest Ltd. |
| |||||||||||
8.700% due 08/07/2018 | $ | 100 | $ | 110 | ||||||||
|
| |||||||||||
Total Ireland | 745 | |||||||||||
|
| |||||||||||
LUXEMBOURG 0.9% | ||||||||||||
BANKING & FINANCE 0.2% | ||||||||||||
Sberbank of Russia Via SB Capital S.A. |
| |||||||||||
3.352% due 11/15/2019 | EUR | 300 | 304 | |||||||||
5.717% due 06/16/2021 | $ | 200 | 193 | |||||||||
6.125% due 02/07/2022 | 1,000 | 967 | ||||||||||
|
| |||||||||||
1,464 | ||||||||||||
|
| |||||||||||
UTILITIES 0.7% | ||||||||||||
Gazprom Neft OAO Via GPN Capital S.A. |
| |||||||||||
4.375% due 09/19/2022 | $ | 300 | 256 | |||||||||
6.000% due 11/27/2023 | 600 | 554 | ||||||||||
Gazprom OAO Via Gaz Capital S.A. |
| |||||||||||
5.999% due 01/23/2021 | 30 | 30 | ||||||||||
6.510% due 03/07/2022 | 900 | 906 | ||||||||||
6.605% due 02/13/2018 | EUR | 50 | 59 | |||||||||
7.288% due 08/16/2037 | $ | 139 | 137 | |||||||||
8.625% due 04/28/2034 | 230 | 258 | ||||||||||
9.250% due 04/23/2019 | 4,000 | 4,460 | ||||||||||
|
| |||||||||||
6,660 | ||||||||||||
|
| |||||||||||
Total Luxembourg | 8,124 | |||||||||||
|
| |||||||||||
MEXICO 0.0% | ||||||||||||
INDUSTRIALS 0.0% | ||||||||||||
Corp. GEO S.A.B. de C.V. |
| |||||||||||
8.875% due 03/27/2022 ^ | $ | 300 | 9 | |||||||||
9.250% due 06/30/2020 ^ | 100 | 3 | ||||||||||
Desarrolladora Homex S.A.B. de C.V. |
| |||||||||||
7.500% due 09/28/2015 ^ | 300 | 23 | ||||||||||
|
| |||||||||||
35 | ||||||||||||
|
| |||||||||||
Total Mexico | 35 | |||||||||||
|
| |||||||||||
NETHERLANDS 0.1% | ||||||||||||
BANKING & FINANCE 0.1% | ||||||||||||
Rabobank Group |
| |||||||||||
6.875% due 03/19/2020 | EUR | 400 | 526 | |||||||||
|
| |||||||||||
INDUSTRIALS 0.0% | ||||||||||||
Schaeffler Holding Finance BV (6.875% Cash or 6.875% PIK) |
| |||||||||||
6.875% due 08/15/2018 (a) | 100 | 116 | ||||||||||
|
| |||||||||||
Total Netherlands | 642 | |||||||||||
|
| |||||||||||
UNITED KINGDOM 0.4% | ||||||||||||
BANKING & FINANCE 0.2% | ||||||||||||
Barclays Bank PLC |
| |||||||||||
14.000% due 06/15/2019 (c) | GBP | 300 | 616 | |||||||||
Co-operative Group Holdings Ltd. |
| |||||||||||
6.875% due 07/08/2020 | 200 | 340 | ||||||||||
LBG Capital PLC |
| |||||||||||
15.000% due 12/21/2019 | 300 | 671 | ||||||||||
Mitchells & Butlers Finance PLC |
| |||||||||||
1.021% due 12/15/2030 | 163 | 237 | ||||||||||
Royal Bank of Scotland PLC |
| |||||||||||
9.500% due 03/16/2022 | $ | 200 | 221 | |||||||||
|
| |||||||||||
2,085 | ||||||||||||
|
|
50 | PIMCO EQUITY SERIES | See Accompanying Notes |
Table of Contents
June 30, 2015
PRINCIPAL | MARKET VALUE (000S) | |||||||||||
INDUSTRIALS 0.2% | ||||||||||||
Enterprise Inns PLC |
| |||||||||||
6.875% due 02/15/2021 | GBP | 200 | $ | 325 | ||||||||
Marstons Issuer PLC |
| |||||||||||
5.641% due 07/15/2035 | 200 | 301 | ||||||||||
Priory Group PLC |
| |||||||||||
8.875% due 02/15/2019 | 200 | 327 | ||||||||||
Spirit Issuer PLC |
| |||||||||||
6.582% due 12/28/2027 | 200 | 327 | ||||||||||
3.279% due 12/28/2031 | 22 | 34 | ||||||||||
|
| |||||||||||
1,314 | ||||||||||||
|
| |||||||||||
Total United Kingdom | 3,399 | |||||||||||
|
| |||||||||||
UNITED STATES 0.1% | ||||||||||||
BANKING & FINANCE 0.1% | ||||||||||||
Cantor Fitzgerald LP |
| |||||||||||
7.875% due 10/15/2019 | $ | 300 | 331 | |||||||||
International Lease Finance Corp. |
| |||||||||||
7.125% due 09/01/2018 | 325 | 363 | ||||||||||
|
| |||||||||||
694 | ||||||||||||
|
| |||||||||||
INDUSTRIALS 0.0% | ||||||||||||
Caesars Entertainment Operating Co., Inc. |
| |||||||||||
8.500% due 02/15/2020 ^ | 291 | 236 | ||||||||||
9.000% due 02/15/2020 ^ | 244 | 200 | ||||||||||
CVS Pass-Through Trust | ||||||||||||
8.353% due 07/10/2031 | 87 | 115 | ||||||||||
iHeartCommunications, Inc. | ||||||||||||
9.000% due 03/01/2021 | 3 | 3 | ||||||||||
Reynolds Group Issuer, Inc. | ||||||||||||
8.500% due 05/15/2018 | 100 | 102 | ||||||||||
|
| |||||||||||
656 | ||||||||||||
|
| |||||||||||
Total United States | 1,350 | |||||||||||
|
| |||||||||||
VENEZUELA 0.0% | ||||||||||||
INDUSTRIALS 0.0% | ||||||||||||
Petroleos de Venezuela S.A. |
| |||||||||||
8.500% due 11/02/2017 | 600 | 414 | ||||||||||
|
| |||||||||||
Total Venezuela | 414 | |||||||||||
|
| |||||||||||
Total Corporate Bonds & Notes (Cost $18,320) | 17,768 | |||||||||||
|
| |||||||||||
MORTGAGE-BACKED SECURITIES 3.1% | ||||||||||||
UNITED STATES 3.1% | ||||||||||||
American Home Mortgage Assets Trust |
| |||||||||||
6.250% due 06/25/2037 | 164 | 113 | ||||||||||
Banc of America Alternative Loan Trust |
| |||||||||||
6.000% due 04/25/2036 ^ | 86 | 75 | ||||||||||
6.000% due 06/25/2046 ^ | 106 | 87 | ||||||||||
6.000% due 07/25/2046 ^ | 173 | 144 | ||||||||||
Banc of America Funding Trust |
| |||||||||||
5.308% due 05/20/2036 | 42 | 40 | ||||||||||
6.000% due 08/25/2037 ^ | 204 | 179 | ||||||||||
Banc of America Mortgage Trust |
| |||||||||||
5.389% due 11/20/2046 ^ | 22 | 19 | ||||||||||
6.000% due 10/25/2036 ^ | 53 | 46 | ||||||||||
Bear Stearns ALT-A Trust |
| |||||||||||
2.856% due 05/25/2036 ^ | 197 | 138 | ||||||||||
4.492% due 09/25/2035 ^ | 140 | 108 | ||||||||||
Bear Stearns Mortgage Funding Trust |
| |||||||||||
7.000% due 08/25/2036 | 236 | 222 |
PRINCIPAL | MARKET VALUE (000S) | |||||||||||
Chase Mortgage Finance Trust |
| |||||||||||
2.525% due 09/25/2036 ^ | $ | 100 | $ | 87 | ||||||||
Citigroup Mortgage Loan Trust, Inc. |
| |||||||||||
2.564% due 07/25/2046 ^ | 23 | 20 | ||||||||||
CitiMortgage Alternative Loan Trust |
| |||||||||||
6.000% due 01/25/2037 ^ | 140 | 120 | ||||||||||
Countrywide Alternative Loan Resecuritization Trust |
| |||||||||||
6.000% due 05/25/2036 ^ | 46 | 41 | ||||||||||
Countrywide Alternative Loan Trust |
| |||||||||||
0.887% due 10/25/2037 ^ | 7,150 | 3,380 | ||||||||||
6.000% due 05/25/2036 ^ | 3,023 | 2,661 | ||||||||||
6.000% due 06/25/2036 ^ | 251 | 227 | ||||||||||
6.000% due 02/25/2037 ^ | 212 | 171 | ||||||||||
6.000% due 03/25/2037 ^ | 70 | 57 | ||||||||||
6.000% due 05/25/2037 ^ | 22 | 18 | ||||||||||
6.000% due 06/25/2037 ^ | 737 | 627 | ||||||||||
6.250% due 12/25/2036 ^ | 45 | 37 | ||||||||||
6.500% due 12/25/2036 ^ | 2,226 | 1,824 | ||||||||||
6.500% due 11/25/2037 ^ | 73 | 62 | ||||||||||
Countrywide Home Loan Mortgage Pass-Through Trust |
| |||||||||||
0.687% due 07/25/2037 ^ | 44 | 32 | ||||||||||
2.467% due 09/25/2037 ^ | 129 | 113 | ||||||||||
Credit Suisse First Boston Mortgage Securities Corp. |
| |||||||||||
6.000% due 11/25/2035 ^ | 26 | 18 | ||||||||||
6.000% due 01/25/2036 | 77 | 61 | ||||||||||
Credit Suisse Mortgage Capital Certificates |
| |||||||||||
2.580% due 05/27/2036 | 3,650 | 3,624 | ||||||||||
3.252% due 12/29/2037 | 217 | 123 | ||||||||||
Credit Suisse Mortgage Capital Mortgage-Backed Trust |
| |||||||||||
5.000% due 03/25/2037 ^ | 5 | 5 | ||||||||||
6.750% due 08/25/2036 ^ | 34 | 27 | ||||||||||
First Horizon Alternative Mortgage Securities Trust |
| |||||||||||
2.312% due 06/25/2036 | 765 | 628 | ||||||||||
HarborView Mortgage Loan Trust |
| |||||||||||
4.453% due 06/19/2036 ^ | 29 | 20 | ||||||||||
HSI Asset Loan Obligation Trust |
| |||||||||||
6.000% due 06/25/2037 ^ | 24 | 21 | ||||||||||
IndyMac Mortgage Loan Trust |
| |||||||||||
2.342% due 06/25/2037 | 253 | 146 | ||||||||||
2.887% due 05/25/2037 ^ | 170 | 121 | ||||||||||
4.079% due 08/25/2035 ^ | 226 | 194 | ||||||||||
JPMorgan Alternative Loan Trust |
| |||||||||||
1.800% due 05/26/2037 | 142 | 126 | ||||||||||
JPMorgan Mortgage Trust |
| |||||||||||
6.500% due 07/25/2036 ^ | 123 | 102 | ||||||||||
Merrill Lynch Mortgage Investors Trust |
| |||||||||||
2.731% due 03/25/2036 ^ | 25 | 17 | ||||||||||
Morgan Stanley Mortgage Loan Trust |
| |||||||||||
2.453% due 06/25/2037 | 767 | 520 | ||||||||||
6.000% due 10/25/2037 ^ | 2,701 | 2,280 | ||||||||||
RBSSP Resecuritization Trust |
| |||||||||||
9.671% due 06/26/2037 | 203 | 117 | ||||||||||
Residential Accredit Loans, Inc. Trust |
| |||||||||||
0.587% due 10/25/2045 | 178 | 139 | ||||||||||
5.500% due 03/25/2037 | 876 | 690 | ||||||||||
6.000% due 08/25/2036 | 161 | 133 | ||||||||||
6.250% due 03/25/2037 ^ | 69 | 56 | ||||||||||
Residential Funding Mortgage Securities, Inc. Trust |
| |||||||||||
6.000% due 10/25/2036 ^ | 19 | 18 | ||||||||||
Structured Adjustable Rate Mortgage Loan Trust |
| |||||||||||
2.592% due 10/25/2036 ^ | 4,252 | 3,179 | ||||||||||
Wells Fargo Alternative Loan Trust |
| |||||||||||
2.707% due 07/25/2037 ^ | 2,665 | 2,267 | ||||||||||
Wells Fargo Mortgage-Backed Securities Trust |
| |||||||||||
2.703% due 07/25/2036 | 3,390 | 3,361 | ||||||||||
|
| |||||||||||
Total Mortgage-Backed Securities (Cost $28,002) | 28,641 | |||||||||||
|
|
PRINCIPAL | MARKET VALUE (000S) | |||||||||||
MUNICIPAL BONDS & NOTES 0.1% | ||||||||||||
MICHIGAN 0.0% | ||||||||||||
Michigan Tobacco Settlement Finance Authority Revenue Bonds, Series 2006 |
| |||||||||||
7.309% due 06/01/2034 | $ | 225 | $ | 191 | ||||||||
|
| |||||||||||
Total Michigan | 191 | |||||||||||
|
| |||||||||||
VIRGINIA 0.0% | ||||||||||||
Tobacco Settlement Financing Corp., Virginia Revenue Bonds, Series 2007 |
| |||||||||||
6.706% due 06/01/2046 | 385 | 282 | ||||||||||
|
| |||||||||||
Total Virginia | 282 | |||||||||||
|
| |||||||||||
WEST VIRGINIA 0.1% | ||||||||||||
Tobacco Settlement Finance Authority, West Virginia Revenue Bonds, Series 2007 |
| |||||||||||
7.467% due 06/01/2047 | 370 | 312 | ||||||||||
|
| |||||||||||
Total West Virginia | 312 | |||||||||||
|
| |||||||||||
Total Municipal Bonds & Notes (Cost $792) | 785 | |||||||||||
|
| |||||||||||
SHARES | ||||||||||||
REAL ESTATE INVESTMENT TRUSTS 5.1% | �� | |||||||||||
UNITED STATES 5.1% | ||||||||||||
FINANCIALS 5.1% | ||||||||||||
Colony Capital, Inc. | 1,433,931 | 32,478 | ||||||||||
Outfront Media, Inc. | 623,600 | 15,740 | ||||||||||
|
| |||||||||||
48,218 | ||||||||||||
|
| |||||||||||
Total Real Estate Investment Trusts (Cost $50,024) | 48,218 | |||||||||||
|
| |||||||||||
PRINCIPAL AMOUNT (000S) | ||||||||||||
SOVEREIGN ISSUES 0.1% | ||||||||||||
BRAZIL 0.1% | ||||||||||||
Brazil Notas do Tesouro Nacional |
| |||||||||||
6.000% due 05/15/2045 | BRL | 1,330 | 423 | |||||||||
6.000% due 08/15/2050 | 689 | 220 | ||||||||||
|
| |||||||||||
Total Brazil | 643 | |||||||||||
|
| |||||||||||
GREECE 0.0% | ||||||||||||
Republic of Greece Government International Bond |
| |||||||||||
3.800% due 08/08/2017 | JPY | 29,000 | 133 | |||||||||
4.500% due 07/03/2017 | 10,000 | 44 | ||||||||||
4.750% due 04/17/2019 | EUR | 100 | 62 | |||||||||
|
| |||||||||||
Total Greece | 239 | |||||||||||
|
| |||||||||||
RUSSIA 0.0% | ||||||||||||
Russia Government International Bond |
| |||||||||||
5.625% due 04/04/2042 | $ | 200 | 189 | |||||||||
5.875% due 09/16/2043 | 200 | 194 | ||||||||||
|
| |||||||||||
Total Russia | 383 | |||||||||||
|
| |||||||||||
VENEZUELA 0.0% | ||||||||||||
Venezuela Government International Bond |
| |||||||||||
7.650% due 04/21/2025 | 100 | 37 | ||||||||||
7.750% due 10/13/2019 | 200 | 79 | ||||||||||
|
| |||||||||||
Total Venezuela | 116 | |||||||||||
|
| |||||||||||
Total Sovereign Issues (Cost $2,005) | 1,381 | |||||||||||
|
|
See Accompanying Notes | ANNUAL REPORT | JUNE 30, 2015 | 51 |
Table of Contents
Schedule of Investments PIMCO Dividend and Income Builder Fund (Cont.)
PRINCIPAL | MARKET VALUE (000S) | |||||||||||
SHORT-TERM INSTRUMENTS 0.4% | ||||||||||||
REPURCHASE AGREEMENTS (d) 0.2% | ||||||||||||
$ | 1,610 | |||||||||||
|
| |||||||||||
U.S. TREASURY BILLS 0.2% | ||||||||||||
0.013% due 09/03/2015 - 11/05/2015 (b)(g) | $ | 1,803 | 1,803 | |||||||||
|
| |||||||||||
Total Short-Term Instruments (Cost $3,413) | 3,413 | |||||||||||
|
| |||||||||||
Total Investments in Securities (Cost $933,922) | 917,839 | |||||||||||
|
| |||||||||||
SHARES | MARKET VALUE (000S) | |||||||||||
INVESTMENTS IN AFFILIATES 3.5% | ||||||||||||
SHORT TERM INSTRUMENTS 3.5% | ||||||||||||
CENTRAL FUNDS USED FOR CASH MANAGEMENT PURPOSES 3.5% | ||||||||||||
PIMCO Short-Term | 3,269,795 | $ | 32,430 | |||||||||
|
| |||||||||||
Total Short Term Instruments (Cost $32,430) | 32,430 | |||||||||||
|
| |||||||||||
Total Investments in Affiliates (Cost $32,430) | 32,430 | |||||||||||
Total Investments 101.7% (Cost $966,352) | $ | 950,269 | ||||||||||
Financial Derivative | ||||||||||||
(Cost or Premiums, net $(1)) | (1,397 | ) | ||||||||||
Other Assets and Liabilities, net (1.6%) | (14,610 | ) | ||||||||||
|
| |||||||||||
Net Assets 100.0% | $ | 934,262 | ||||||||||
|
|
NOTES TO SCHEDULE OF INVESTMENTS (AMOUNTS IN THOUSANDS*, EXCEPT NUMBER OF CONTRACTS):
* | A zero balance may reflect actual amounts rounding to less than one thousand. |
^ | Security is in default. |
(a) | Payment in-kind bond security. |
(b) | Coupon represents a weighted average yield to maturity. |
(c) | Perpetual maturity; date shown, if applicable, represents next contractual call date. |
BORROWINGS AND OTHER FINANCING TRANSACTIONS
(d) REPURCHASE AGREEMENTS:
Counterparty | Lending Rate | Settlement Date | Maturity Date | Principal Amount | Collateralized By | Collateral Received, at Value | Repurchase Agreements, at Value | Repurchase Agreement Proceeds to be Received (1) | ||||||||||||||||||||||
SSB | 0.000 | % | 06/30/2015 | 07/01/2015 | $ | 1,610 | Fannie Mae 2.260% due 10/17/2022 | $ | (1,644 | ) | $ | 1,610 | $ | 1,610 | ||||||||||||||||
|
|
|
|
|
| |||||||||||||||||||||||||
Total Repurchase Agreements |
| $ | (1,644 | ) | $ | 1,610 | $ | 1,610 | ||||||||||||||||||||||
|
|
|
|
|
|
(1) | Includes accrued interest. |
BORROWINGS AND OTHER FINANCING TRANSACTIONS SUMMARY
The following is a summary by counterparty of the market value of Borrowings and Other Financing Transactions and collateral (received) as of June 30, 2015:
Counterparty | Repurchase Agreement Proceeds to be Received | Payable for Reverse Repurchase Agreements | Payable for Sale-Buyback Transactions | Payable for Short Sales | Total Borrowings and Other Financing Transactions | Collateral (Received) | Net Exposure (2) | |||||||||||||||||||||
Global/Master Repurchase Agreement | ||||||||||||||||||||||||||||
SSB | $ | 1,610 | $ | 0 | $ | 0 | $ | 0 | $ | 1,610 | $ | (1,644 | ) | $ | (34 | ) | ||||||||||||
|
|
|
|
|
|
|
| |||||||||||||||||||||
Total Borrowings and Other Financing Transactions | $ | 1,610 | $ | 0 | $ | 0 | $ | 0 | ||||||||||||||||||||
|
|
|
|
|
|
|
|
(2) | Net Exposure represents the net receivable/(payable) that would be due from/to the counterparty in the event of default. Exposure from borrowings and other financing transactions can only be netted across transactions governed under the same master agreement with the same legal entity. See Note 7, Principal Risks, in the Notes to Financial Statements for more information regarding master netting arrangements. |
52 | PIMCO EQUITY SERIES | See Accompanying Notes |
Table of Contents
June 30, 2015
(e) FINANCIAL DERIVATIVE INSTRUMENTS: EXCHANGE-TRADED OR CENTRALLY CLEARED
FUTURES CONTRACTS:
Description | Type | Expiration Month | # of Contracts | Unrealized Appreciation/ (Depreciation) | Variation Margin | |||||||||||||||||
Asset | Liability | |||||||||||||||||||||
British Pound Currency September Futures | Short | 09/2015 | 45 | $ | (117 | ) | $ | 1 | $ | 0 | ||||||||||||
Euro Currency September Futures | Short | 09/2015 | 23 | 34 | 32 | 0 | ||||||||||||||||
Japanese Yen Currency September Futures | Short | 09/2015 | 16 | (25 | ) | 0 | (2 | ) | ||||||||||||||
Mexican Peso Currency September Futures | Short | 09/2015 | 11 | 4 | 0 | 0 | ||||||||||||||||
|
|
|
|
|
| |||||||||||||||||
Total Futures Contracts |
| $ | (104 | ) | $ | 33 | $ | (2 | ) | |||||||||||||
|
|
|
|
|
|
FINANCIAL DERIVATIVE INSTRUMENTS: EXCHANGE-TRADED OR CENTRALLY CLEARED SUMMARY
The following is a summary of the market value and variation margin of Exchange-Traded or Centrally Cleared Financial Derivative Instruments as of June 30, 2015:
Cash of $278 has been pledged as collateral for exchange-traded and centrally cleared financial derivative instruments as of June 30, 2015. See Note 7, Principal Risks, in the Notes to Financial Statements for more information regarding master netting arrangements.
Financial Derivative Assets | Financial Derivative Liabilities | |||||||||||||||||||||||||||||||||
Market Value | Variation Margin Asset | Total | Market Value | Variation Margin Liability | Total | |||||||||||||||||||||||||||||
Purchased Options | Futures | Swap Agreements | Written Options | Futures | Swap Agreements | |||||||||||||||||||||||||||||
Total Exchange-Traded or Centrally Cleared | $ | 0 | $ | 33 | $ | 0 | $ | 33 | $ | 0 | $ | (2) | $ | 0 | $ (2) | |||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(f) FINANCIAL DERIVATIVE INSTRUMENTS: OVER THE COUNTER
FORWARD FOREIGN CURRENCY CONTRACTS:
Counterparty | Settlement Month | Currency to be Delivered | Currency to be Received | Unrealized Appreciation/ (Depreciation) | ||||||||||||||||||||||||
Asset | Liability | |||||||||||||||||||||||||||
BOA | 07/2015 | JPY | 1,596,931 | $ | 12,915 | $ | 0 | $ | (133 | ) | ||||||||||||||||||
CBK | 07/2015 | EUR | 80 | 90 | 1 | 0 | ||||||||||||||||||||||
GLM | 07/2015 | $ | 12,905 | JPY | 1,596,931 | 143 | 0 | |||||||||||||||||||||
08/2015 | JPY | 1,596,931 | $ | 12,910 | 0 | (144 | ) | |||||||||||||||||||||
MSB | 07/2015 | $ | 72,570 | EUR | 64,848 | 0 | (274 | ) | ||||||||||||||||||||
08/2015 | EUR | 64,848 | $ | 72,600 | 273 | 0 | ||||||||||||||||||||||
08/2015 | GBP | 45,528 | 71,701 | 181 | 0 | |||||||||||||||||||||||
08/2015 | $ | 33,755 | EUR | 30,209 | 0 | (61 | ) | |||||||||||||||||||||
08/2015 | 12,845 | �� | JPY | 1,589,647 | 149 | 0 | ||||||||||||||||||||||
UAG | 07/2015 | EUR | 64,768 | $ | 70,645 | 0 | (1,562 | ) | ||||||||||||||||||||
|
|
|
| |||||||||||||||||||||||||
Total Forward Foreign Currency Contracts |
| $ | 747 | $ | (2,174 | ) | ||||||||||||||||||||||
|
|
|
|
SWAP AGREEMENTS:
CREDIT DEFAULT SWAPS ON SOVEREIGN ISSUES - SELL PROTECTION (1)
Counterparty | Reference Entity | Fixed Deal Receive Rate | Maturity Date | Implied Credit Spread at June 30, 2015 (2) | Notional Amount (3) | Premiums (Received) | Unrealized Appreciation/ (Depreciation) | Swap Agreements, at Value | ||||||||||||||||||||||||||
Asset | Liability | |||||||||||||||||||||||||||||||||
HUS | Russia Government International Bond | 1.000% | 09/20/2024 | 3.534% | $ 8 | $ | (1 | ) | $ | 0 | $ | 0 | $ | (1 | ) | |||||||||||||||||||
|
|
|
|
|
|
|
| |||||||||||||||||||||||||||
Total Swap Agreements |
| $ | (1 | ) | $ | 0 | $ | 0 | $ | (1 | ) | |||||||||||||||||||||||
|
|
|
|
|
|
|
|
(1) | If the Fund is a seller of protection and a credit event occurs, as defined under the terms of that particular swap agreement, the Fund will either (i) pay to the buyer of protection an amount equal to the notional amount of the swap and take delivery of the referenced obligation or underlying securities comprising the referenced index or (ii) pay a net settlement amount in the form of cash or securities equal to the notional amount of the swap less the recovery value of the referenced obligation or underlying securities comprising the referenced index. |
(2) | Implied credit spreads, represented in absolute terms, utilized in determining the market value of credit default swap agreements on sovereign issues as of period end serve as an indicator of the current status of the payment/performance risk and represent the likelihood or risk of default for the credit derivative. The implied credit spread of a particular referenced entity reflects the cost of buying/selling protection and may include upfront payments required to be made to enter into the agreement. Wider credit spreads represent a deterioration of the referenced entity’s credit soundness and a greater likelihood or risk of default or other credit event occurring as defined under the terms of the agreement. |
(3) | The maximum potential amount the Fund could be required to pay as a seller of credit protection or receive as a buyer of credit protection if a credit event occurs as defined under the terms of that particular swap agreement. |
See Accompanying Notes | ANNUAL REPORT | JUNE 30, 2015 | 53 |
Table of Contents
Schedule of Investments PIMCO Dividend and Income Builder Fund (Cont.)
FINANCIAL DERIVATIVE INSTRUMENTS: OVER THE COUNTER SUMMARY
The following is a summary by counterparty of the market value of OTC financial derivative instruments and collateral (received)/pledged as of June 30, 2015:
(g) | Securities with an aggregate market value of $1,803 have been pledged as collateral for financial derivative instruments as governed by International Swaps and Derivatives Association, Inc. master agreements as of June 30, 2015. |
Financial Derivative Assets | Financial Derivative Liabilities | |||||||||||||||||||||||||||||||||||||||||||||
Counterparty | Forward Foreign Currency Contracts | Purchased Options | Swap Agreements | Total Over the Counter | Forward Foreign Currency Contracts | Written Options | Swap Agreements | Total Over the Counter | Net Market Value of OTC Derivatives | Collateral (Received)/ Pledged | Net Exposure (4) | |||||||||||||||||||||||||||||||||||
BOA | $ | 0 | $ | 0 | $ | 0 | $ | 0 | $ | (133 | ) | $ | 0 | $ | 0 | $ | (133 | ) | $ | (133 | ) | $ | 0 | $ | (133 | ) | ||||||||||||||||||||
CBK | 1 | 0 | 0 | 1 | 0 | 0 | 0 | 0 | 1 | 0 | 1 | |||||||||||||||||||||||||||||||||||
DUB | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | (750 | ) | (750 | ) | |||||||||||||||||||||||||||||||||
GLM | 143 | 0 | 0 | 143 | (144 | ) | 0 | 0 | (144 | ) | (1 | ) | 0 | (1 | ) | |||||||||||||||||||||||||||||||
HUS | 0 | 0 | 0 | 0 | 0 | 0 | (1 | ) | (1 | ) | (1 | ) | 0 | (1 | ) | |||||||||||||||||||||||||||||||
MSB | 603 | 0 | 0 | 603 | (335 | ) | 0 | 0 | (335 | ) | 268 | 0 | 268 | |||||||||||||||||||||||||||||||||
UAG | 0 | 0 | 0 | 0 | (1,562 | ) | 0 | 0 | (1,562 | ) | (1,562 | ) | 1,803 | 241 | ||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||||||||||||||||
Total Over the Counter | $ | 747 | $ | 0 | $ | 0 | $ | 747 | $ | (2,174 | ) | $ | 0 | $ | (1 | ) | $ | (2,175 | ) | |||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(4) | Net Exposure represents the net receivable/(payable) that would be due from/to the counterparty in the event of default. Exposure from OTC financial derivative instruments can only be netted across transactions governed under the same master agreement with the same legal entity. See Note 7, Principal Risks, in the Notes to Financial Statements for more information regarding master netting arrangements. |
FAIR VALUE OF FINANCIAL DERIVATIVE INSTRUMENTS
The following is a summary of the fair valuation of the Fund’s derivative instruments categorized by risk exposure. See Note 7, Principal Risks, in the Notes to Financial Statements on risks of the Fund.
Fair Values of Financial Derivative Instruments on the Statements of Assets and Liabilities as of June 30, 2015:
Derivatives not accounted for as hedging instruments | ||||||||||||||||||||||||
Commodity Contracts | Credit Contracts | Equity Contracts | Foreign Exchange Contracts | Interest Rate Contracts | Total | |||||||||||||||||||
Financial Derivative Instruments - Assets | ||||||||||||||||||||||||
Exchange-traded or centrally cleared | ||||||||||||||||||||||||
Futures | $ | 0 | $ | 0 | $ | 0 | $ | 33 | $ | 0 | $ | 33 | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Over the counter | ||||||||||||||||||||||||
Forward Foreign Currency Contracts | $ | 0 | $ | 0 | $ | 0 | $ | 747 | $ | 0 | $ | 747 | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
$ | 0 | $ | 0 | $ | 0 | $ | 780 | $ | 0 | $ | 780 | |||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Financial Derivative Instruments - Liabilities | ||||||||||||||||||||||||
Exchange-traded or centrally cleared | ||||||||||||||||||||||||
Futures | $ | 0 | $ | 0 | $ | 0 | $ | 2 | $ | 0 | $ | 2 | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Over the counter | ||||||||||||||||||||||||
Forward Foreign Currency Contracts | $ | 0 | $ | 0 | $ | 0 | $ | 2,174 | $ | 0 | $ | 2,174 | ||||||||||||
Swap Agreements | 0 | 1 | 0 | 0 | 0 | 1 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
$ | 0 | $ | 1 | $ | 0 | $ | 2,174 | $ | 0 | $ | 2,175 | |||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
$ | 0 | $ | 1 | $ | 0 | $ | 2,176 | $ | 0 | $ | 2,177 | |||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
54 | PIMCO EQUITY SERIES | See Accompanying Notes |
Table of Contents
June 30, 2015
The Effect of Financial Derivative Instruments on the Statements of Operations for the period ended June 30, 2015:
Derivatives not accounted for as hedging instruments | ||||||||||||||||||||||||
Commodity Contracts | Credit Contracts | Equity Contracts | Foreign Exchange Contracts | Interest Rate Contracts | Total | |||||||||||||||||||
Net Realized Gain (Loss) on Financial Derivative Instruments | ||||||||||||||||||||||||
Exchange-traded or centrally cleared | ||||||||||||||||||||||||
Futures | $ | 0 | $ | 0 | $ | 0 | $ | 1,747 | $ | 0 | $ | 1,747 | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Over the counter | ||||||||||||||||||||||||
Forward Foreign Currency Contracts | $ | 0 | $ | 0 | $ | 0 | $ | 8,924 | $ | 0 | $ | 8,924 | ||||||||||||
Swap Agreements | 0 | (9 | ) | 0 | 0 | 0 | (9 | ) | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
$ | 0 | $ | (9 | ) | $ | 0 | $ | 8,924 | $ | 0 | $ | 8,915 | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
$ | 0 | $ | (9 | ) | $ | 0 | $ | 10,671 | $ | 0 | $ | 10,662 | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Net Change in Unrealized Appreciation (Depreciation) on Financial Derivative Instruments |
| |||||||||||||||||||||||
Exchange-traded or centrally cleared | ||||||||||||||||||||||||
Futures | $ | 0 | $ | 0 | $ | 0 | $ | 71 | $ | 0 | $ | 71 | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Over the counter | ||||||||||||||||||||||||
Forward Foreign Currency Contracts | $ | 0 | $ | 0 | $ | 0 | $ | (1,455 | ) | $ | 0 | $ | (1,455 | ) | ||||||||||
Swap Agreements | 0 | (11 | ) | 0 | 0 | 0 | (11 | ) | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
$ | 0 | $ | (11 | ) | $ | 0 | $ | (1,455 | ) | $ | 0 | $ | (1,466 | ) | ||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
$ | 0 | $ | (11 | ) | $ | 0 | $ | (1,384 | ) | $ | 0 | $ | (1,395 | ) | ||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
FAIR VALUE MEASUREMENTS
The following is a summary of the fair valuations according to the inputs used as of June 30, 2015 in valuing the Fund’s assets and liabilities:
Category and Subcategory | Level 1 | Level 2 | Level 3 | Fair Value at 06/30/2015 | ||||||||||||
Investments in Securities, at Value |
| |||||||||||||||
Asset-Backed Securities | ||||||||||||||||
United States | $ | 0 | $ | 14,782 | $ | 0 | $ | 14,782 | ||||||||
Bank Loan Obligations | ||||||||||||||||
Brazil | 0 | 0 | 17 | 17 | ||||||||||||
Luxembourg | 0 | 243 | 0 | 243 | ||||||||||||
United States | 0 | 2,501 | 0 | 2,501 | ||||||||||||
Common Stocks | ||||||||||||||||
Australia | ||||||||||||||||
Consumer Discretionary | 0 | 17,749 | 0 | 17,749 | ||||||||||||
Health Care | 0 | 13,256 | 0 | 13,256 | ||||||||||||
Industrials | 0 | 16,135 | 0 | 16,135 | ||||||||||||
Bermuda | ||||||||||||||||
Industrials | 19,030 | 0 | 0 | 19,030 | ||||||||||||
Brazil | ||||||||||||||||
Industrials | 8,162 | 0 | 0 | 8,162 | ||||||||||||
Utilities | 4,081 | 0 | 0 | 4,081 | ||||||||||||
Canada | ||||||||||||||||
Utilities | 15,951 | 0 | 0 | 15,951 | ||||||||||||
China | ||||||||||||||||
Consumer Staples | 0 | 8,641 | 0 | 8,641 | ||||||||||||
Cyprus | ||||||||||||||||
Energy | 0 | 4,609 | 0 | 4,609 | ||||||||||||
France | ||||||||||||||||
Utilities | 0 | 28,450 | 0 | 28,450 | ||||||||||||
Germany | ||||||||||||||||
Utilities | 0 | 15,707 | 0 | 15,707 | ||||||||||||
Greece | ||||||||||||||||
Consumer Discretionary | 0 | 7,085 | 0 | 7,085 | ||||||||||||
Hong Kong | ||||||||||||||||
Consumer Discretionary | 0 | 16,206 | 0 | 16,206 | ||||||||||||
Telecommunication Services | 0 | 20,668 | 0 | 20,668 | ||||||||||||
Italy | ||||||||||||||||
Financials | 0 | 25,818 | 0 | 25,818 | ||||||||||||
Industrials | 0 | 8,065 | 0 | 8,065 | ||||||||||||
Mexico | ||||||||||||||||
Consumer Staples | 4,334 | 0 | 0 | 4,334 | ||||||||||||
Netherlands | ||||||||||||||||
Financials | 0 | 30,103 | 0 | 30,103 |
Category and Subcategory | Level 1 | Level 2 | Level 3 | Fair Value at 06/30/2015 | ||||||||||||
South Africa | ||||||||||||||||
Telecommunication Services | $ | 0 | $ | 18,300 | $ | 0 | $ | 18,300 | ||||||||
Spain | ||||||||||||||||
Consumer Staples | 0 | 13,310 | 0 | 13,310 | ||||||||||||
Switzerland | ||||||||||||||||
Health Care | 0 | 20,260 | 0 | 20,260 | ||||||||||||
Taiwan | ||||||||||||||||
Information Technology | 0 | 8,650 | 0 | 8,650 | ||||||||||||
Thailand | ||||||||||||||||
Telecommunication Services | 0 | 8,354 | 0 | 8,354 | ||||||||||||
Turkey | ||||||||||||||||
Industrials | 0 | 8,367 | 0 | 8,367 | ||||||||||||
United Kingdom | ||||||||||||||||
Consumer Staples | 0 | 24,594 | 0 | 24,594 | ||||||||||||
Financials | 0 | 71,369 | 0 | 71,369 | ||||||||||||
Telecommunication Services | 0 | 33,738 | 0 | 33,738 | ||||||||||||
United States | ||||||||||||||||
Consumer Discretionary | 32,833 | 0 | 0 | 32,833 | ||||||||||||
Energy | 13,235 | 0 | 0 | 13,235 | ||||||||||||
Financials | 76,969 | 0 | 0 | 76,969 | ||||||||||||
Health Care | 37,841 | 0 | 0 | 37,841 | ||||||||||||
Industrials | 12,619 | 0 | 0 | 12,619 | ||||||||||||
Information Technology | 47,657 | 0 | 0 | 47,657 | ||||||||||||
Materials | 21,316 | 0 | 0 | 21,316 | ||||||||||||
Telecommunication Services | 22,412 | 0 | 0 | 22,412 | ||||||||||||
Utilities | 64,216 | 0 | 0 | 64,216 | ||||||||||||
Corporate Bonds & Notes | ||||||||||||||||
Austria | ||||||||||||||||
Industrials | 0 | 2 | 0 | 2 | ||||||||||||
Brazil | ||||||||||||||||
Banking & Finance | 0 | 204 | 0 | 204 | ||||||||||||
Utilities | 0 | 2,129 | 0 | 2,129 | ||||||||||||
Cayman Islands | ||||||||||||||||
Utilities | 0 | 132 | 0 | 132 | ||||||||||||
France | ||||||||||||||||
Banking & Finance | 0 | 592 | 0 | 592 | ||||||||||||
Ireland | ||||||||||||||||
Banking & Finance | 0 | 199 | 0 | 199 | ||||||||||||
Industrials | 0 | 436 | 0 | 436 | ||||||||||||
Utilities | 0 | 110 | 0 | 110 |
See Accompanying Notes | ANNUAL REPORT | JUNE 30, 2015 | 55 |
Table of Contents
Schedule of Investments PIMCO Dividend and Income Builder Fund (Cont.)
June 30, 2015
Category and Subcategory | Level 1 | Level 2 | Level 3 | Fair Value at 06/30/2015 | ||||||||||||
Luxembourg | ||||||||||||||||
Banking & Finance | $ | 0 | $ | 1,464 | $ | 0 | $ | 1,464 | ||||||||
Utilities | 0 | 6,660 | 0 | 6,660 | ||||||||||||
Mexico | ||||||||||||||||
Industrials | 0 | 35 | 0 | 35 | ||||||||||||
Netherlands | ||||||||||||||||
Banking & Finance | 0 | 526 | 0 | 526 | ||||||||||||
Industrials | 0 | 116 | 0 | 116 | ||||||||||||
United Kingdom | ||||||||||||||||
Banking & Finance | 0 | 2,085 | 0 | 2,085 | ||||||||||||
Industrials | 0 | 1,314 | 0 | 1,314 | ||||||||||||
United States | ||||||||||||||||
Banking & Finance | 0 | 694 | 0 | 694 | ||||||||||||
Industrials | 0 | 656 | 0 | 656 | ||||||||||||
Venezuela | ||||||||||||||||
Industrials | 0 | 414 | 0 | 414 | ||||||||||||
Mortgage-Backed Securities | ||||||||||||||||
United States | 0 | 28,641 | 0 | 28,641 | ||||||||||||
Municipal Bonds & Notes | ||||||||||||||||
Michigan | 0 | 191 | 0 | 191 | ||||||||||||
Virginia | 0 | 282 | 0 | 282 | ||||||||||||
West Virginia | 0 | 312 | 0 | 312 | ||||||||||||
Real Estate Investment Trusts | ||||||||||||||||
United States | ||||||||||||||||
Financials | 48,218 | 0 | 0 | 48,218 | ||||||||||||
Sovereign Issues | ||||||||||||||||
Brazil | 0 | 643 | 0 | 643 | ||||||||||||
Greece | 0 | 239 | 0 | 239 |
Category and Subcategory | Level 1 | Level 2 | Level 3 | Fair Value at 06/30/2015 | ||||||||||||
Russia | $ | 0 | $ | 383 | $ | 0 | $ | 383 | ||||||||
Venezuela | 0 | 116 | 0 | 116 | ||||||||||||
Short-Term Instruments | ||||||||||||||||
Repurchase Agreements | 0 | 1,610 | 0 | 1,610 | ||||||||||||
U.S. Treasury Bills | 0 | 1,803 | 0 | 1,803 | ||||||||||||
$ | 428,874 | $ | 488,948 | $ | 17 | $ | 917,839 | |||||||||
Investments in Affiliates, at Value | ||||||||||||||||
Short Term Instruments | ||||||||||||||||
Central Funds Used for Cash Management Purposes | 32,430 | 0 | 0 | 32,430 | ||||||||||||
Total Investments | $ | 461,304 | $ | 488,948 | $ | 17 | $ | 950,269 | ||||||||
Financial Derivative Instruments - Assets |
| |||||||||||||||
Exchange-traded or centrally cleared | 33 | 0 | 0 | 33 | ||||||||||||
Over the counter | 0 | 747 | 0 | 747 | ||||||||||||
$ | 33 | $ | 747 | $ | 0 | $ | 780 | |||||||||
Financial Derivative Instruments - Liabilities |
| |||||||||||||||
Exchange-traded or centrally cleared | (2 | ) | 0 | 0 | (2 | ) | ||||||||||
Over the counter | 0 | (2,175 | ) | 0 | (2,175 | ) | ||||||||||
$ | (2 | ) | $ | (2,175 | ) | $ | 0 | $ | (2,177 | ) | ||||||
Totals | $ | 461,335 | $ | 487,520 | $ | 17 | $ | 948,872 |
There were no significant transfers between Levels 1, 2, or 3 during the period ended June 30, 2015.
56 | PIMCO EQUITY SERIES | See Accompanying Notes |
Table of Contents
Schedule of Investments PIMCO Emerging Multi-Asset Fund
June 30, 2015
PRINCIPAL AMOUNT (000S) | MARKET VALUE (000S) | |||||||||||
INVESTMENTS IN SECURITIES 28.0% | ||||||||||||
SHORT-TERM INSTRUMENTS 28.0% | ||||||||||||
SHORT-TERM NOTES 28.0% | ||||||||||||
Federal Home Loan Bank | ||||||||||||
0.080% due 09/02/2015 | $ | 700 | $ | 700 | ||||||||
0.085% due 08/12/2015 | 800 | 800 | ||||||||||
0.090% due 09/11/2015 | 400 | 400 | ||||||||||
0.092% due 08/21/2015 | 300 | 300 | ||||||||||
|
| |||||||||||
2,200 | ||||||||||||
|
| |||||||||||
Total Short-Term Instruments (Cost $2,200) | 2,200 | |||||||||||
|
| |||||||||||
Total Investments in Securities (Cost $2,200) | 2,200 | |||||||||||
|
| |||||||||||
SHARES | ||||||||||||
INVESTMENTS IN AFFILIATES 71.5% | ||||||||||||
MUTUAL FUNDS (a) 70.2% | ||||||||||||
UNITED STATES 70.2% | ||||||||||||
PIMCO Emerging Local Bond Fund | 468,757 | 3,647 | ||||||||||
PIMCO Emerging Markets Bond Fund | 183,616 | 1,871 | ||||||||||
|
| |||||||||||
Total Mutual Funds |
| 5,518 | ||||||||||
|
|
SHARES | MARKET VALUE (000S) | |||||||||||
SHORT-TERM INSTRUMENTS 1.3% | ||||||||||||
CENTRAL FUNDS USED FOR CASH MANAGEMENT PURPOSES 1.3% | ||||||||||||
PIMCO Short-Term | 10,184 | $ | 101 | |||||||||
|
| |||||||||||
Total Short-Term Instruments (Cost $101) | 101 | |||||||||||
|
| |||||||||||
Total Investments in Affiliates (Cost $6,774) | 5,619 | |||||||||||
Total Investments 99.5% (Cost $8,974) | $ | 7,819 | ||||||||||
Financial Derivative (Cost or Premiums, net $0) | 6 | |||||||||||
Other Assets and Liabilities, net 0.4% | 33 | |||||||||||
|
| |||||||||||
Net Assets 100.0% | $ | 7,858 | ||||||||||
|
|
NOTES TO SCHEDULE OF INVESTMENTS (AMOUNTS IN THOUSANDS*):
* | A zero balance may reflect actual amounts rounding to less than one thousand. |
(a) | Institutional Class Shares of each Fund. |
BORROWINGS AND OTHER FINANCING TRANSACTIONS
The average amount of borrowings outstanding during the period ended June 30, 2015 was $21 at a weighted average interest rate of 0.320%.
(b) FINANCIAL DERIVATIVE INSTRUMENTS: OVER THE COUNTER
FORWARD FOREIGN CURRENCY CONTRACTS:
Counterparty | Settlement Month | Currency to be Delivered | Currency to be Received | Unrealized Appreciation/ (Depreciation) | ||||||||||||||||||||||||
Asset | Liability | |||||||||||||||||||||||||||
BPS | 07/2015 | MXN | 3,420 | $ | 221 | $ | 3 | $ | 0 | |||||||||||||||||||
07/2015 | $ | 223 | MXN | 3,420 | 0 | (6 | ) | |||||||||||||||||||||
BRC | 07/2015 | KRW | 722,765 | $ | 657 | 12 | 0 | |||||||||||||||||||||
07/2015 | PHP | 743 | 16 | 0 | 0 | |||||||||||||||||||||||
07/2015 | PLN | 786 | 205 | 0 | (3 | ) | ||||||||||||||||||||||
07/2015 | TWD | 1,160 | 38 | 0 | 0 | |||||||||||||||||||||||
07/2015 | $ | 659 | KRW | 722,765 | 0 | (14 | ) | |||||||||||||||||||||
07/2015 | 17 | PHP | 743 | 0 | 0 | |||||||||||||||||||||||
07/2015 | 213 | PLN | 786 | 0 | (4 | ) | ||||||||||||||||||||||
07/2015 | 38 | TWD | 1,160 | 0 | 0 | |||||||||||||||||||||||
07/2015 | 155 | ZAR | 1,910 | 1 | 0 | |||||||||||||||||||||||
07/2015 | ZAR | 1,910 | $ | 156 | 0 | 0 | ||||||||||||||||||||||
CBK | 08/2015 | RUB | 1,182 | 21 | 0 | 0 | ||||||||||||||||||||||
08/2015 | $ | 21 | RUB | 1,182 | 0 | 0 | ||||||||||||||||||||||
DUB | 07/2015 | BRL | 722 | $ | 266 | 34 | 0 | |||||||||||||||||||||
07/2015 | KRW | 151,126 | 140 | 5 | 0 | |||||||||||||||||||||||
07/2015 | $ | 228 | BRL | 722 | 4 | 0 | ||||||||||||||||||||||
07/2015 | 137 | KRW | 151,126 | 0 | (3 | ) | ||||||||||||||||||||||
FBF | 07/2015 | CLP | 37,678 | $ | 59 | 0 | 0 | |||||||||||||||||||||
07/2015 | KRW | 288,460 | 262 | 5 | 0 | |||||||||||||||||||||||
07/2015 | $ | 61 | CLP | 37,678 | 0 | (2 | ) | |||||||||||||||||||||
07/2015 | 260 | KRW | 288,460 | 0 | (3 | ) | ||||||||||||||||||||||
GLM | 07/2015 | RON | 24 | $ | 6 | 0 | 0 | |||||||||||||||||||||
07/2015 | $ | 6 | RON | 24 | 0 | 0 | ||||||||||||||||||||||
See Accompanying Notes | ANNUAL REPORT | JUNE 30, 2015 | 57 |
Table of Contents
Schedule of Investments PIMCO Emerging Multi-Asset Fund (Cont.)
Counterparty | Settlement Month | Currency to be Delivered | Currency to be Received | Unrealized Appreciation/ (Depreciation) | ||||||||||||||||||||||||
Asset | Liability | |||||||||||||||||||||||||||
HUS | 07/2015 | COP | 262,611 | $ | 103 | $ | 3 | $ | 0 | |||||||||||||||||||
07/2015 | PHP | 1,303 | 29 | 0 | 0 | |||||||||||||||||||||||
07/2015 | SGD | 153 | 113 | 0 | (1 | ) | ||||||||||||||||||||||
07/2015 | TWD | 17,703 | 578 | 4 | 0 | |||||||||||||||||||||||
07/2015 | $ | 103 | COP | 262,611 | 0 | (2 | ) | |||||||||||||||||||||
07/2015 | 29 | PHP | 1,303 | 0 | 0 | |||||||||||||||||||||||
07/2015 | 115 | SGD | 153 | 0 | (1 | ) | ||||||||||||||||||||||
07/2015 | 581 | TWD | 17,703 | 0 | (8 | ) | ||||||||||||||||||||||
JPM | 07/2015 | HUF | 46,427 | $ | 166 | 2 | 0 | |||||||||||||||||||||
07/2015 | INR | 16,487 | 256 | 0 | (3 | ) | ||||||||||||||||||||||
07/2015 | PLN | 948 | 257 | 5 | 0 | |||||||||||||||||||||||
07/2015 | $ | 168 | HUF | 46,427 | 0 | (4 | ) | |||||||||||||||||||||
07/2015 | 259 | INR | 16,487 | 0 | 0 | |||||||||||||||||||||||
07/2015 | 252 | PLN | 948 | 0 | (1 | ) | ||||||||||||||||||||||
08/2015 | THB | 2,647 | $ | 79 | 1 | 0 | ||||||||||||||||||||||
08/2015 | $ | 78 | THB | 2,647 | 0 | 0 | ||||||||||||||||||||||
SCX | 07/2015 | BRL | 893 | $ | 288 | 1 | 0 | |||||||||||||||||||||
07/2015 | $ | 294 | BRL | 893 | 0 | (7 | ) | |||||||||||||||||||||
SOG | 07/2015 | CZK | 4,597 | $ | 179 | 0 | (9 | ) | ||||||||||||||||||||
07/2015 | $ | 191 | CZK | 4,597 | 0 | (3 | ) | |||||||||||||||||||||
UAG | 07/2015 | IDR | 749,168 | $ | 56 | 0 | 0 | |||||||||||||||||||||
07/2015 | $ | 56 | IDR | 749,168 | 0 | 0 | ||||||||||||||||||||||
|
|
|
| |||||||||||||||||||||||||
Total Forward Foreign Currency Contracts |
| $ | 80 | $ | (74 | ) | ||||||||||||||||||||||
|
|
|
|
WRITTEN OPTIONS:
AS OF JUNE 30, 2015, THERE WERE NO OPEN WRITTEN OPTIONS. TRANSACTIONS IN WRITTEN CALL AND PUT OPTIONS FOR THE PERIOD ENDED JUNE 30, 2015:
# of Contracts | Notional Amount in $ | Notional Amount in EUR | Premiums | |||||||||||||||||
Balance at Beginning of Period | 2,230 | $ | 0 | EUR | 0 | $ | (73 | ) | ||||||||||||
Sales | 0 | 1,000 | 800 | (36 | ) | |||||||||||||||
Closing Buys | 0 | (200 | ) | (800 | ) | 35 | ||||||||||||||
Expirations | (2,230 | ) | (800 | ) | 0 | 74 | ||||||||||||||
Exercised | 0 | 0 | 0 | 0 | ||||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Balance at End of Period | 0 | $ | 0 | EUR | 0 | $ | 0 | |||||||||||||
|
|
|
|
|
|
|
|
|
|
FINANCIAL DERIVATIVE INSTRUMENTS: OVER THE COUNTER SUMMARY
The following is a summary by counterparty of the market value of OTC financial derivative instruments and collateral (received)/pledged as of June 30, 2015:
Financial Derivative Assets | Financial Derivative Liabilities | |||||||||||||||||||||||||||||||||||||||||||||
Counterparty | Forward Foreign Currency Contracts | Purchased Options | Swap Agreements | Total Over the Counter | Forward Foreign Currency Contracts | Written Options | Swap Agreements | Total Over the Counter | Net Market Value of OTC Derivatives | Collateral (Received)/ Pledged | Net Exposure (1) | |||||||||||||||||||||||||||||||||||
BPS | $ | 3 | $ | 0 | $ | 0 | $ | 3 | $ | (6 | ) | $ | 0 | $ | 0 | $ | (6 | ) | $ | (3 | ) | $ | 0 | $ | (3 | ) | ||||||||||||||||||||
BRC | 13 | 0 | 0 | 13 | (21 | ) | 0 | 0 | (21 | ) | (8 | ) | 0 | (8 | ) | |||||||||||||||||||||||||||||||
DUB | 43 | 0 | 0 | 43 | (3 | ) | 0 | 0 | (3 | ) | 40 | 0 | 40 | |||||||||||||||||||||||||||||||||
FBF | 5 | 0 | 0 | 5 | (5 | ) | 0 | 0 | (5 | ) | 0 | 0 | 0 | |||||||||||||||||||||||||||||||||
HUS | 7 | 0 | 0 | 7 | (12 | ) | 0 | 0 | (12 | ) | (5 | ) | 0 | (5 | ) | |||||||||||||||||||||||||||||||
JPM | 8 | 0 | 0 | 8 | (8 | ) | 0 | 0 | (8 | ) | 0 | 0 | 0 | |||||||||||||||||||||||||||||||||
SCX | 1 | 0 | 0 | 1 | (7 | ) | 0 | 0 | (7 | ) | (6 | ) | 0 | (6 | ) | |||||||||||||||||||||||||||||||
SOG | 0 | 0 | 0 | 0 | (12 | ) | 0 | 0 | (12 | ) | (12 | ) | 0 | (12 | ) | |||||||||||||||||||||||||||||||
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|
| |||||||||||||||||||||||||||||||
Total Over the Counter | $ | 80 | $ | 0 | $ | 0 | $ | 80 | $ | (74 | ) | $ | 0 | $ | 0 | $ | (74 | ) | ||||||||||||||||||||||||||||
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|
(1) | Net Exposure represents the net receivable/(payable) that would be due from/to the counterparty in the event of default. Exposure from OTC financial derivative instruments can only be netted across transactions governed under the same master agreement with the same legal entity. See Note 7, Principal Risks, in the Notes to Financial Statements for more information regarding master netting arrangements. |
58 | PIMCO EQUITY SERIES | See Accompanying Notes |
Table of Contents
June 30, 2015
FAIR VALUE OF FINANCIAL DERIVATIVE INSTRUMENTS
The following is a summary of the fair valuation of the Fund’s derivative instruments categorized by risk exposure. See Note 7, Principal Risks, in the Notes to Financial Statements on risks of the Fund.
Fair Values of Financial Derivative Instruments on the Statements of Assets and Liabilities as of June 30, 2015:
Derivatives not accounted for as hedging instruments | ||||||||||||||||||||||||
Commodity Contracts | Credit Contracts | Equity Contracts | Foreign Exchange Contracts | Interest Rate Contracts | Total | |||||||||||||||||||
Financial Derivative Instruments - Assets | ||||||||||||||||||||||||
Over the counter | ||||||||||||||||||||||||
Forward Foreign Currency Contracts | $ | 0 | $ | 0 | $ | 0 | $ | 80 | $ | 0 | $ | 80 | ||||||||||||
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| |||||||||||||
Financial Derivative Instruments - Liabilities | ||||||||||||||||||||||||
Over the counter | ||||||||||||||||||||||||
Forward Foreign Currency Contracts | $ | 0 | $ | 0 | $ | 0 | $ | 74 | $ | 0 | $ | 74 | ||||||||||||
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|
|
The Effect of Financial Derivative Instruments on the Statements of Operations for the period ended June 30, 2015:
Derivatives not accounted for as hedging instruments | ||||||||||||||||||||||||
Commodity Contracts | Credit Contracts | Equity Contracts | Foreign Exchange Contracts | Interest Rate Contracts | Total | |||||||||||||||||||
Net Realized Gain (Loss) on Financial Derivative Instruments | ||||||||||||||||||||||||
Exchange-traded or centrally cleared | ||||||||||||||||||||||||
Purchased Options | $ | 0 | $ | 0 | $ | (129 | ) | $ | 0 | $ | 0 | $ | (129 | ) | ||||||||||
Written Options | 0 | 0 | 73 | 0 | 0 | 73 | ||||||||||||||||||
Futures | 0 | 0 | (12 | ) | 0 | 4 | (8 | ) | ||||||||||||||||
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| |||||||||||||
$ | 0 | $ | 0 | $ | (68 | ) | $ | 0 | $ | 4 | $ | (64 | ) | |||||||||||
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| |||||||||||||
Over the counter | ||||||||||||||||||||||||
Forward Foreign Currency Contracts | $ | 0 | $ | 0 | $ | 0 | $ | 185 | $ | 0 | $ | 185 | ||||||||||||
Purchased Options | 0 | 0 | 6 | (1 | ) | 0 | 5 | |||||||||||||||||
Written Options | 0 | 0 | 0 | 3 | 0 | 3 | ||||||||||||||||||
Swap Agreements | 0 | 14 | 19 | 0 | 0 | 33 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
$ | 0 | $ | 14 | $ | 25 | $ | 187 | $ | 0 | $ | 226 | |||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
$ | 0 | $ | 14 | $ | (43 | ) | $ | 187 | $ | 4 | $ | 162 | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Net Change in Unrealized Appreciation (Depreciation) on Financial Derivative Instruments |
| |||||||||||||||||||||||
Exchange-traded or centrally cleared | ||||||||||||||||||||||||
Purchased Options | $ | 0 | $ | 0 | $ | 44 | $ | 0 | $ | 0 | $ | 44 | ||||||||||||
Written Options | 0 | 0 | (24 | ) | 0 | 0 | (24 | ) | ||||||||||||||||
Futures | 0 | 0 | 0 | 0 | (7 | ) | (7 | ) | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
$ | 0 | $ | 0 | $ | 20 | $ | 0 | $ | (7 | ) | $ | 13 | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Over the counter | ||||||||||||||||||||||||
Forward Foreign Currency Contracts | $ | 0 | $ | 0 | $ | 0 | $ | 5 | $ | 0 | $ | 5 | ||||||||||||
Swap Agreements | 0 | (11 | ) | (28 | ) | 0 | 0 | (39 | ) | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
$ | 0 | $ | (11 | ) | $ | (28 | ) | $ | 5 | $ | 0 | $ | (34 | ) | ||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
$ | 0 | $ | (11 | ) | $ | (8 | ) | $ | 5 | $ | (7 | ) | $ | (21 | ) | |||||||||
|
|
|
|
|
|
|
|
|
|
|
|
FAIR VALUE MEASUREMENTS
The following is a summary of the fair valuations according to the inputs used as of June 30, 2015 in valuing the Fund’s assets and liabilities:
Category and Subcategory | Level 1 | Level 2 | Level 3 | Fair Value at 06/30/2015 | ||||||||||||
Investments in Securities, at Value | ||||||||||||||||
Short-Term Instruments | ||||||||||||||||
Short-Term Notes | $ | 0 | $ | 2,200 | $ | 0 | $ | 2,200 | ||||||||
$ | 0 | $ | 2,200 | $ | 0 | $ | 2,200 | |||||||||
Investments in Affiliates, at Value | ||||||||||||||||
Mutual Funds | ||||||||||||||||
United States | 5,518 | 0 | 0 | 5,518 | ||||||||||||
Short-Term Instruments | ||||||||||||||||
Central Funds Used for Cash Management Purposes | 101 | 0 | 0 | 101 | ||||||||||||
$ | 5,619 | $ | 0 | $ | 0 | $ | 5,619 | |||||||||
Total Investments | $ | 5,619 | $ | 2,200 | $ | 0 | $ | �� 7,819 |
Category and Subcategory | Level 1 | Level 2 | Level 3 | Fair Value at 06/30/2015 | ||||||||||||
Financial Derivative Instruments - Assets | ||||||||||||||||
Over the counter | $ | 0 | $ | 80 | $ | 0 | $ | 80 | ||||||||
Financial Derivative Instruments - Liabilities |
| |||||||||||||||
Over the counter | $ | 0 | $ | (74 | ) | $ | 0 | $ | (74 | ) | ||||||
Totals | $ | 5,619 | $ | 2,206 | $ | 0 | $ | 7,825 |
There were no significant transfers between Levels 1, 2, or 3 during the period ended June 30, 2015.
See Accompanying Notes | ANNUAL REPORT | JUNE 30, 2015 | 59 |
Table of Contents
Schedule of Investments PIMCO EqS® Emerging Markets Fund
MARKET VALUE (000S) | ||||||||||
INVESTMENTS IN SECURITIES 28.0% | ||||||||||
SHORT-TERM INSTRUMENTS 28.0% | ||||||||||
REPURCHASE AGREEMENTS (a) 28.0% | ||||||||||
$ | 1,327 | |||||||||
|
| |||||||||
Total Short-Term Instruments (Cost $1,327) | 1,327 | |||||||||
|
| |||||||||
Total Investments in Securities (Cost $1,327) | 1,327 | |||||||||
|
| |||||||||
SHARES | MARKET VALUE (000S) | |||||||||||
INVESTMENTS IN AFFILIATES 74.5% | ||||||||||||
SHORT TERM INSTRUMENTS 74.5% | ||||||||||||
CENTRAL FUNDS USED FOR CASH MANAGEMENT PURPOSES 74.5% | ||||||||||||
PIMCO Short-Term | 355,217 | $ | 3,523 | |||||||||
|
| |||||||||||
Total Short Term Instruments (Cost $3,523) | 3,523 | |||||||||||
|
| |||||||||||
Total Investments in Affiliates (Cost $3,523) | 3,523 | |||||||||||
Total Investments 102.5% (Cost $4,850) | $ | 4,850 | ||||||||||
Other Assets and Liabilities, net (2.5%) | (119 | ) | ||||||||||
|
| |||||||||||
Net Assets 100.0% | $ | 4,731 | ||||||||||
|
|
NOTES TO SCHEDULE OF INVESTMENTS (AMOUNTS IN THOUSANDS*):
* | A zero balance may reflect actual amounts rounding to less than one thousand. |
BORROWINGS AND OTHER FINANCING TRANSACTIONS
(a) REPURCHASE AGREEMENTS:
Counterparty | Lending Rate | Settlement Date | Maturity Date | Principal Amount | Collateralized By | Collateral Received, at Value | Repurchase Agreements, at Value | Repurchase Agreement Proceeds to be Received (1) | ||||||||||||||||||||
SSB | 0.000% | 06/30/2015 | 07/01/2015 | $ | 1,327 | Fannie Mae 2.260% due 10/17/2022 | $ | (1,354 | ) | $ | 1,327 | $ | 1,327 | |||||||||||||||
|
|
|
|
|
| |||||||||||||||||||||||
Total Repurchase Agreements |
| $ | (1,354 | ) | $ | 1,327 | $ | 1,327 | ||||||||||||||||||||
|
|
|
|
|
|
(1) | Includes accrued interest. |
BORROWINGS AND OTHER FINANCING TRANSACTIONS SUMMARY
The following is a summary by counterparty of the market value of Borrowings and Other Financing Transactions and collateral (received) as of June 30, 2015:
Counterparty | Repurchase Agreement Proceeds to be Received | Payable for Reverse Repurchase Agreements | Payable for Sale-Buyback Transactions | Payable for Short Sales | Total Borrowings and Other Financing Transactions | Collateral (Received) | Net Exposure (2) | |||||||||||||||||||||
Global/Master Repurchase Agreement | ||||||||||||||||||||||||||||
SSB | $ | 1,327 | $ | 0 | $ | 0 | $ | 0 | $ | 1,327 | $ | (1,354 | ) | $ | (27 | ) | ||||||||||||
|
|
|
|
|
|
|
| |||||||||||||||||||||
Total Borrowings and Other Financing Transactions | $ | 1,327 | $ | 0 | $ | 0 | $ | 0 | ||||||||||||||||||||
|
|
|
|
|
|
|
|
(2) | Net Exposure represents the net receivable/(payable) that would be due from/to the counterparty in the event of default. Exposure from borrowings and other financing transactions can only be netted across transactions governed under the same master agreement with the same legal entity. See Note 7, Principal Risks, in the Notes to Financial Statements for more information regarding master netting arrangements. |
60 | PIMCO EQUITY SERIES | See Accompanying Notes |
Table of Contents
June 30, 2015
The following is a summary of the fair valuation of the Fund’s derivative instruments categorized by risk exposure. See Note 7, Principal Risks, in the Notes to Financial Statements on risks of the Fund.
The Effect of Financial Derivative Instruments on the Statements of Operations for the period ended June 30, 2015:
Derivatives not accounted for as hedging instruments | ||||||||||||||||||||||||
Commodity Contracts | Credit Contracts | Equity Contracts | Foreign Exchange Contracts | Interest Rate Contracts | Total | |||||||||||||||||||
Net Realized Gain (Loss) on Financial Derivative Instruments | ||||||||||||||||||||||||
Exchange-traded or centrally cleared | ||||||||||||||||||||||||
Futures | $ | 0 | $ | 0 | $ | (679 | ) | $ | 0 | $ | 0 | $ | (679 | ) | ||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Over the counter | ||||||||||||||||||||||||
Forward Foreign Currency Contracts | $ | 0 | $ | 0 | $ | 0 | $ | 1,745 | $ | 0 | $ | 1,745 | ||||||||||||
Swap Agreements | 0 | 0 | (363 | ) | 0 | 0 | (363 | ) | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
$ | 0 | $ | 0 | $ | (363 | ) | $ | 1,745 | $ | 0 | $ | 1,382 | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
$ | 0 | $ | 0 | $ | (1,042 | ) | $ | 1,745 | $ | 0 | $ | 703 | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Net Change in Unrealized Appreciation (Depreciation) on Financial Derivative Instruments |
| |||||||||||||||||||||||
Over the counter | ||||||||||||||||||||||||
Forward Foreign Currency Contracts | $ | 0 | $ | 0 | $ | 0 | $ | (2,178 | ) | $ | 0 | $ | (2,178 | ) | ||||||||||
Swap Agreements | 0 | 0 | 205 | 0 | 0 | 205 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
$ | 0 | $ | 0 | $ | 205 | $ | (2,178 | ) | $ | 0 | $ | (1,973 | ) | |||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
FAIR VALUE MEASUREMENTS
The following is a summary of the fair valuations according to the inputs used as of June 30, 2015 in valuing the Fund’s assets and liabilities:
Category and Subcategory | Level 1 | Level 2 | Level 3 | Fair Value at 06/30/2015 | ||||||||||||
Investments in Securities, at Value | ||||||||||||||||
Short-Term Instruments | ||||||||||||||||
Repurchase Agreements | $ | 0 | $ | 1,327 | $ | 0 | $ | 1,327 | ||||||||
$ | 0 | $ | 1,327 | $ | 0 | $ | 1,327 |
Category and Subcategory | Level 1 | Level 2 | Level 3 | Fair Value at 06/30/2015 | ||||||||||||
Investments in Affiliates, at Value | ||||||||||||||||
Short Term Instruments | ||||||||||||||||
Central Funds Used for Cash Management Purposes | $ | 3,523 | $ | 0 | $ | 0 | $ | 3,523 | ||||||||
Total Investments | $ | 3,523 | $ | 1,327 | $ | 0 | $ | 4,850 |
There were no significant transfers between Levels 1, 2, or 3 during the period ended June 30, 2015.
See Accompanying Notes | ANNUAL REPORT | JUNE 30, 2015 | 61 |
Table of Contents
Schedule of Investments PIMCO EqS® Long/Short Fund
SHARES | MARKET VALUE (000S) | |||||||||||
INVESTMENTS IN SECURITIES 79.9% | ||||||||||||
COMMON STOCKS 76.8% | ||||||||||||
UNITED KINGDOM 1.5% | ||||||||||||
CONSUMER DISCRETIONARY 1.5% | ||||||||||||
Markit Ltd. (a) | 500,000 | $ | 12,785 | |||||||||
|
| |||||||||||
Total United Kingdom | 12,785 | |||||||||||
|
| |||||||||||
UNITED STATES 75.3% | ||||||||||||
CONSUMER DISCRETIONARY 22.1% | ||||||||||||
Big Lots, Inc. (d) | 320,000 | 14,397 | ||||||||||
Deckers Outdoor Corp. (a) | 260,000 | 18,712 | ||||||||||
Dick’s Sporting Goods, Inc. | 121,000 | 6,264 | ||||||||||
Dollar General Corp. | 265,000 | 20,601 | ||||||||||
Live Nation Entertainment, Inc. (a) | 730,000 | 20,068 | ||||||||||
Nielsen NV | 750,000 | 33,578 | ||||||||||
PVH Corp. (d) | 100,000 | 11,520 | ||||||||||
Time Warner, Inc. | 550,000 | 48,075 | ||||||||||
TJX Cos., Inc. | 270,000 | 17,866 | ||||||||||
|
| |||||||||||
191,081 | ||||||||||||
|
| |||||||||||
CONSUMER STAPLES 1.7% | ||||||||||||
Sanderson Farms, Inc. | 200,000 | 15,032 | ||||||||||
|
| |||||||||||
ENERGY 1.0% | ||||||||||||
Devon Energy Corp. | 150,000 | 8,924 | ||||||||||
|
| |||||||||||
FINANCIALS 10.6% | ||||||||||||
Allstate Corp. | 135,000 | 8,757 | ||||||||||
Bank of New York Mellon Corp. | 900,000 | 37,773 | ||||||||||
Citigroup, Inc. | 320,000 | 17,677 | ||||||||||
CoreLogic, Inc. (a) | 100,000 | 3,969 | ||||||||||
McGraw Hill Financial, Inc. | 230,000 | 23,104 | ||||||||||
|
| |||||||||||
91,280 | ||||||||||||
|
|
SHARES | MARKET VALUE (000S) | |||||||||||
HEALTH CARE 19.0% | ||||||||||||
Brookdale Senior Living, Inc. (a) | 550,000 | $ | 19,085 | |||||||||
Cardinal Health, Inc. (d) | 168,000 | 14,053 | ||||||||||
Community Health Systems, Inc. (a) | 460,000 | 28,966 | ||||||||||
HCA Holdings, Inc. (a) | 50,000 | 4,536 | ||||||||||
HealthSouth Corp. | 900,000 | 41,454 | ||||||||||
Laboratory Corp. of America Holdings (a) | 385,000 | 46,670 | ||||||||||
Tenet Healthcare Corp. (a)(d) | 160,000 | 9,261 | ||||||||||
|
| |||||||||||
164,025 | ||||||||||||
|
| |||||||||||
INDUSTRIALS 5.3% | ||||||||||||
KAR Auction Services, Inc. | 1,220,000 | 45,628 | ||||||||||
Spirit Airlines, Inc. (a) | 5,000 | 310 | ||||||||||
|
| |||||||||||
45,938 | ||||||||||||
|
| |||||||||||
INFORMATION TECHNOLOGY 11.1% | ||||||||||||
DST Systems, Inc. (d) | 350,000 | 44,093 | ||||||||||
Google, Inc. ‘C’ (a)(d) | 100,000 | 52,051 | ||||||||||
|
| |||||||||||
96,144 | ||||||||||||
|
| |||||||||||
MATERIALS 2.7% | ||||||||||||
Berry Plastics Group, Inc. (a) | 400,000 | 12,960 | ||||||||||
Sealed Air Corp. (d) | 200,000 | 10,276 | ||||||||||
|
| |||||||||||
23,236 | ||||||||||||
|
| |||||||||||
TELECOMMUNICATION SERVICES 1.8% | ||||||||||||
T-Mobile US, Inc. (a)(d) | 400,000 | 15,508 | ||||||||||
|
| |||||||||||
Total United States | 651,168 | |||||||||||
|
| |||||||||||
Total Common Stocks (Cost $610,468) | 663,953 | |||||||||||
|
|
SHARES | MARKET VALUE (000S) | |||||||||||
REAL ESTATE INVESTMENT TRUSTS 3.1% | ||||||||||||
UNITED STATES 3.1% | ||||||||||||
FINANCIALS 3.1% | ||||||||||||
Select Income REIT | 1,300,000 | $ | 26,832 | |||||||||
|
| |||||||||||
Total Real Estate Investment Trusts | 26,832 | |||||||||||
|
| |||||||||||
SHORT-TERM INSTRUMENTS 0.0% | ||||||||||||
REPURCHASE AGREEMENTS (b) 0.0% | ||||||||||||
212 | ||||||||||||
|
| |||||||||||
Total Short-Term Instruments (Cost $212) | 212 | |||||||||||
|
| |||||||||||
Total Investments in Securities (Cost $642,548) | 690,997 | |||||||||||
|
| |||||||||||
INVESTMENTS IN AFFILIATES 14.1% | ||||||||||||
SHORT TERM INSTRUMENTS 14.1% | ||||||||||||
CENTRAL FUNDS USED FOR CASH MANAGEMENT PURPOSES 14.1% | ||||||||||||
PIMCO Short-Term | 12,349,400 | 122,481 | ||||||||||
|
| |||||||||||
Total Short Term Instruments (Cost $122,492) | 122,481 | |||||||||||
|
| |||||||||||
Total Investments in Affiliates (Cost $122,492) | 122,481 | |||||||||||
Total Investments 94.0% (Cost $765,040) | $ | 813,478 | ||||||||||
Securities Sold Short (c) (21.7%) |
| (187,302 | ) | |||||||||
Financial Derivative (Cost or Premiums, net $2,495) | (312 | ) | ||||||||||
Other Assets and Liabilities, net 27.7% | 239,244 | |||||||||||
|
| |||||||||||
Net Assets 100.0% | $ | 865,108 | ||||||||||
|
|
NOTES TO SCHEDULE OF INVESTMENTS (AMOUNTS IN THOUSANDS*, EXCEPT NUMBER OF CONTRACTS AND SHARES):
* | A zero balance may reflect actual amounts rounding to less than one thousand. |
(a) | Security did not produce income within the last twelve months. |
BORROWINGS AND OTHER FINANCING TRANSACTIONS
(b) REPURCHASE AGREEMENTS:
Counterparty | Lending Rate | Settlement Date | Maturity Date | Principal Amount | Collateralized By | Collateral Received, at Value | Repurchase Agreements, at Value | Repurchase Agreement Proceeds to be Received (1) | ||||||||||||||||||||
SSB | 0.000% | 06/30/2015 | 07/01/2015 | $ | 212 | Fannie Mae 2.260% due 10/17/2022 | $ | (221 | ) | $ | 212 | $ | 212 | |||||||||||||||
|
|
|
|
|
| |||||||||||||||||||||||
Total Repurchase Agreements |
| $ | (221 | ) | $ | 212 | $ | 212 | ||||||||||||||||||||
|
|
|
|
|
|
(1) | Includes accrued interest. |
62 | PIMCO EQUITY SERIES | See Accompanying Notes |
Table of Contents
June 30, 2015
(c) SECURITIES SOLD SHORT:
(d) | Securities with an aggregate market value of $117,108 and cash of $163,836 have been pledged as collateral as of June 30, 2015 for equity short sales and equity options as governed by prime brokerage agreements and agreements governing listed equity option transactions. |
Counterparty | Description | Shares | Proceeds | Payable for Short Sales (2) | ||||||||||
Common Stocks | ||||||||||||||
Canada | ||||||||||||||
Consumer Staples | ||||||||||||||
FOB | Alimentation Couche-Tard, Inc. | 70,000 | $ | (2,782 | ) | $ | (2,994 | ) | ||||||
Industrials | ||||||||||||||
GSC | Canadian Pacific Railway Ltd. | 7,100 | (1,155 | ) | (1,138 | ) | ||||||||
Hong Kong | ||||||||||||||
Consumer Discretionary | ||||||||||||||
UBS | Melco Crown Entertainment Ltd. - ADR | 120,000 | (2,265 | ) | (2,356 | ) | ||||||||
Melco Crown Entertainment Ltd. - ADR | 40,000 | (755 | ) | (785 | ) | |||||||||
Melco Crown Entertainment Ltd. - ADR | 105,000 | (2,001 | ) | (2,061 | ) | |||||||||
Italy | ||||||||||||||
Energy | ||||||||||||||
GSC | Saipem SpA | 600,000 | (7,517 | ) | (6,340 | ) | ||||||||
Switzerland | ||||||||||||||
Energy | ||||||||||||||
UBS | Transocean Ltd. | 490,000 | (8,638 | ) | (7,899 | ) | ||||||||
United Kingdom | ||||||||||||||
Energy | ||||||||||||||
Ensco PLC ‘A’ | 300,000 | (6,962 | ) | (6,681 | ) | |||||||||
United States | ||||||||||||||
Consumer Discretionary | ||||||||||||||
FOB | Wynn Resorts Ltd. | 140,000 | (13,942 | ) | (13,814 | ) | ||||||||
GSC | Cogent Communications Holdings, Inc. | 80,000 | (2,716 | ) | (2,707 | ) | ||||||||
FOB | Gap, Inc. | 100,000 | (3,864 | ) | (3,817 | ) | ||||||||
GSC | MSC Industrial Direct Co., Inc. | 85,000 | (5,963 | ) | (5,931 | ) | ||||||||
Coach, Inc. | 130,000 | (4,664 | ) | (4,499 | ) | |||||||||
FOB | Big Lots, Inc. | 100,000 | (4,527 | ) | (4,499 | ) | ||||||||
Discovery Communications, Inc. | 110,000 | (3,704 | ) | (3,659 | ) | |||||||||
Titan International, Inc. | 410,000 | (3,863 | ) | (4,405 | ) | |||||||||
Energy | ||||||||||||||
Oceaneering International, Inc. | 135,000 | (6,881 | ) | (6,290 | ) | |||||||||
Financials | ||||||||||||||
GSC | NorthStar Asset Management Group, Inc. | 705,000 | (13,755 | ) | (13,035 | ) | ||||||||
LPL Financial Holdings, Inc. | 200,000 | (9,237 | ) | (9,298 | ) | |||||||||
Industrials | ||||||||||||||
Fastenal Co. | 40,000 | (1,727 | ) | (1,687 | ) | |||||||||
FOB | Healthcare Services Group, Inc. | 90,000 | (2,859 | ) | (2,974 | ) | ||||||||
GSC | WW Grainger, Inc. | 35,000 | (8,516 | ) | (8,283 | ) | ||||||||
Genesee & Wyoming, Inc. ‘A’ | 50,000 | (3,913 | ) | (3,809 | ) | |||||||||
Parker-Hannifin Corp. | 105,000 | (12,329 | ) | (12,215 | ) | |||||||||
Information Technology | ||||||||||||||
FOB | Lam Research Corp. | 150,000 | (12,249 | ) | (12,203 | ) | ||||||||
GSC | Zillow Group, Inc. ‘A’ | 34,600 | (3,095 | ) | (3,001 | ) | ||||||||
DST Systems, Inc. | 50,000 | (6,217 | ) | (6,299 | ) | |||||||||
Telecommunication Services | ||||||||||||||
Sprint Corp. | 1,950,000 | (8,864 | ) | (8,892 | ) | |||||||||
Exchange-Traded Funds | ||||||||||||||
United States | ||||||||||||||
FOB | iShares U.S. Home Construction ETF | 150,000 | (4,195 | ) | (4,118 | ) | ||||||||
iShares U.S. Home Construction ETF | 300,000 | (8,401 | ) | (8,235 | ) | |||||||||
SPDR S&P Retail ETF | 90,000 | (8,885 | ) | (8,879 | ) | |||||||||
Real Estate Investment Trusts | ||||||||||||||
United States | ||||||||||||||
Financials | ||||||||||||||
Camden Property Trust | 60,000 | (4,499 | ) | (4,499 | ) | |||||||||
|
|
|
| |||||||||||
Total Short Sales | $ | (190,940 | ) | $ | (187,302 | ) | ||||||||
|
|
|
|
(2) | Payable for short sales includes $44 of dividends payable. |
See Accompanying Notes | ANNUAL REPORT | JUNE 30, 2015 | 63 |
Table of Contents
Schedule of Investments PIMCO EqS® Long/Short Fund (Cont.)
BORROWINGS AND OTHER FINANCING TRANSACTIONS SUMMARY
The following is a summary by counterparty of the market value of Borrowings and Other Financing Transactions and collateral (received)/pledged as of June 30, 2015:
Counterparty | Repurchase Agreement Proceeds to be Received | Payable for Reverse Repurchase Agreements | Payable for Sale-Buyback Transactions | Payable for Short Sales | Total Borrowings and Other Financing Transactions | Collateral (Received)/Pledged | Net Exposure (3) | |||||||||||||||||||||
Global/Master Repurchase Agreement | ||||||||||||||||||||||||||||
SSB | $ | 212 | $ | 0 | $ | 0 | $ | 0 | $ | 212 | $ | (221 | ) | $ | (9 | ) | ||||||||||||
Prime Brokerage Agreement | ||||||||||||||||||||||||||||
FOB | 0 | 0 | 0 | (80,386 | ) | (80,386 | ) | 91,024 | 10,638 | |||||||||||||||||||
GSC | 0 | 0 | 0 | (87,134 | ) | (87,134 | ) | 189,854 | 102,720 | |||||||||||||||||||
MSC | 0 | 0 | 0 | 0 | 0 | 64 | 64 | |||||||||||||||||||||
UBS | 0 | 0 | 0 | (19,782 | ) | (19,782 | ) | 1 | (19,781 | ) | ||||||||||||||||||
|
|
|
|
|
|
|
| |||||||||||||||||||||
Total Borrowings and Other Financing Transactions | $ | 212 | $ | 0 | $ | 0 | $ | (187,302 | ) | |||||||||||||||||||
|
|
|
|
|
|
|
|
(3) | Net Exposure represents the net receivable/(payable) that would be due from/to the counterparty in the event of default. Exposure from borrowings and other financing transactions can only be netted across transactions governed under the same master agreement with the same legal entity. See Note 7, Principal Risks, in the Notes to Financial Statements for more information regarding master netting arrangements. |
(e) FINANCIAL DERIVATIVE INSTRUMENTS: EXCHANGE-TRADED OR CENTRALLY CLEARED
PURCHASED OPTIONS:
OPTIONS ON SECURITIES
Description | Strike Price | Expiration Date | # of Contracts | Cost | Market Value | |||||||||||||||
Put - CBOE Community Health Systems, Inc. | $ | 47.000 | 07/17/2015 | 7,360 | $ | 1,912 | $ | 92 | ||||||||||||
Put - CBOE HCA Holdings, Inc. | 70.000 | 07/17/2015 | 1,300 | 290 | 3 | |||||||||||||||
Call - CBOE Windstream Holdings, Inc. | 11.000 | 11/20/2015 | 7,700 | 293 | 54 | |||||||||||||||
|
|
|
| |||||||||||||||||
$ | 2,495 | $ | 149 | |||||||||||||||||
|
|
|
| |||||||||||||||||
Total Purchased Options | $ | 2,495 | $ | 149 | ||||||||||||||||
|
|
|
|
FUTURES CONTRACTS:
Description | Type | Expiration | # of | Unrealized | Variation Margin | |||||||||||||||||
Asset | Liability | |||||||||||||||||||||
E-mini S&P 500 Index September Futures | Short | 09/2015 | 400 | $ | 202 | $ | 0 | $ | (295 | ) | ||||||||||||
|
|
|
|
|
| |||||||||||||||||
Total Futures Contracts | $ | 202 | $ | 0 | $ | (295 | ) | |||||||||||||||
|
|
|
|
|
|
FINANCIAL DERIVATIVE INSTRUMENTS: EXCHANGE-TRADED OR CENTRALLY CLEARED SUMMARY
The following is a summary of the market value and variation margin of Exchange-Traded or Centrally Cleared Financial Derivative Instruments as of June 30, 2015:
Cash of $5,625 has been pledged as collateral for exchange-traded and centrally cleared financial derivative instruments as of June 30, 2015. See Note 7, Principal Risks, in the Notes to Financial Statements for more information regarding master netting arrangements.
Financial Derivative Assets | Financial Derivative Liabilities | |||||||||||||||||||||||||||||||||
Market Value | Variation Margin Asset | Total | Market Value | Variation Margin Liability (1) | Total | |||||||||||||||||||||||||||||
Purchased Options | Futures | Swap Agreements | Written Options | Futures | Swap Agreements | |||||||||||||||||||||||||||||
Total Exchange-Traded or Centrally Cleared | $ | 149 | $ | 0 | $ | 0 | $ | 149 | $ | 0 | $ | (372) | $ | 0 | $ | (372 | ) | |||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) | Unsettled variation margin liability of $(77) for closed futures is outstanding at period end. |
(f) FINANCIAL DERIVATIVE INSTRUMENTS: OVER THE COUNTER
FORWARD FOREIGN CURRENCY CONTRACTS:
Counterparty | Settlement Month | Currency to be Delivered | Currency to be Received | Unrealized Appreciation/ (Depreciation) | ||||||||||||||||||||||||
Asset | Liability | |||||||||||||||||||||||||||
GLM | 07/2015 | $ | 4,730 | EUR | 4,163 | $ | 0 | $ | (89 | ) | ||||||||||||||||||
|
|
|
| |||||||||||||||||||||||||
Total Forward Foreign Currency Contracts |
| $ | 0 | $ | (89 | ) | ||||||||||||||||||||||
|
|
|
|
64 | PIMCO EQUITY SERIES | See Accompanying Notes |
Table of Contents
June 30, 2015
WRITTEN OPTIONS:
AS OF JUNE 30, 2015, THERE WERE NO OPEN WRITTEN OPTIONS. TRANSACTIONS IN WRITTEN CALL AND PUT OPTIONS FOR THE PERIOD ENDED JUNE 30, 2015:
# of Contracts | Notional Amount | Premiums | ||||||||||
Balance at Beginning of Period | 4,000 | $ | 0 | $ | (1,008 | ) | ||||||
Sales | 15,351 | 130 | (2,242 | ) | ||||||||
Closing Buys | (14,410 | ) | (130 | ) | 2,375 | |||||||
Expirations | (1,941 | ) | 0 | 419 | ||||||||
Exercised | (3,000 | ) | 0 | 456 | ||||||||
|
|
|
|
|
| |||||||
Balance at End of Period | 0 | $ | 0 | $ | 0 | |||||||
|
|
|
|
|
|
FINANCIAL DERIVATIVE INSTRUMENTS: OVER THE COUNTER SUMMARY
The following is a summary by counterparty of the market value of OTC financial derivative instruments and collateral (received)/pledged as of June 30, 2015:
Financial Derivative Assets | Financial Derivative Liabilities | |||||||||||||||||||||||||||||||||||||||||||||
Counterparty | Forward Foreign Currency Contracts | Purchased Options | Swap Agreements | Total Over the Counter | Forward Foreign Currency Contracts | Written Options | Swap Agreements | Total Over the Counter | Net Market Value of OTC Derivatives | Collateral (Received)/ Pledged | Net Exposure (1) | |||||||||||||||||||||||||||||||||||
GLM | $ | 0 | $ | 0 | $ | 0 | $ | 0 | $ | (89 | ) | $ | 0 | $ | 0 | $ | (89 | ) | $ | (89 | ) | $ | 0 | $ | (89 | ) | ||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) | Net Exposure represents the net receivable/(payable) that would be due from/to the counterparty in the event of default. Exposure from OTC financial derivative instruments can only be netted across transactions governed under the same master agreement with the same legal entity. See Note 7, Principal Risks, in the Notes to Financial Statements for more information regarding master netting arrangements. |
FAIR VALUE OF FINANCIAL DERIVATIVE INSTRUMENTS
The following is a summary of the fair valuation of the Fund’s derivative instruments categorized by risk exposure. See Note 7, Principal Risks, in the Notes to Financial Statements on risks of the Fund.
Fair Values of Financial Derivative Instruments on the Statements of Assets and Liabilities as of June 30, 2015:
Derivatives not accounted for as hedging instruments | ||||||||||||||||||||||||
Commodity Contracts | Credit Contracts | Equity Contracts | Foreign Exchange Contracts | Interest Rate Contracts | Total | |||||||||||||||||||
Financial Derivative Instruments - Assets | ||||||||||||||||||||||||
Exchange-traded or centrally cleared | ||||||||||||||||||||||||
Purchased Options | $ | 0 | $ | 0 | $ | 149 | $ | 0 | $ | 0 | $ | 149 | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Financial Derivative Instruments - Liabilities | ||||||||||||||||||||||||
Exchange-traded or centrally cleared | ||||||||||||||||||||||||
Futures | $ | 0 | $ | 0 | $ | 372 | $ | 0 | $ | 0 | $ | 372 | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Over the counter | ||||||||||||||||||||||||
Forward Foreign Currency Contracts | $ | 0 | $ | 0 | $ | 0 | $ | 89 | $ | 0 | $ | 89 | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
$ | 0 | $ | 0 | $ | 372 | $ | 89 | $ | 0 | $ | 461 | |||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
The Effect of Financial Derivative Instruments on the Statements of Operations for the period ended June 30, 2015:
Derivatives not accounted for as hedging instruments | ||||||||||||||||||||||||
Commodity Contracts | Credit Contracts | Equity Contracts | Foreign Exchange Contracts | Interest Rate Contracts | Total | |||||||||||||||||||
Net Realized Gain (Loss) on Financial Derivative Instruments | ||||||||||||||||||||||||
Exchange-traded or centrally cleared | ||||||||||||||||||||||||
Purchased Options | $ | 0 | $ | 0 | $ | (2,314 | ) | $ | 0 | $ | 0 | $ | (2,314 | ) | ||||||||||
Written Options | 0 | 0 | 33 | 0 | 0 | 33 | ||||||||||||||||||
Futures | 0 | 0 | (4,965 | ) | 0 | 0 | (4,965 | ) | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
$ | 0 | $ | 0 | $ | (7,246 | ) | $ | 0 | $ | 0 | $ | (7,246 | ) | |||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Over the counter | ||||||||||||||||||||||||
Forward Foreign Currency Contracts | $ | 0 | $ | 0 | $ | 0 | $ | (1,259 | ) | $ | 0 | $ | (1,259 | ) | ||||||||||
Written Options | 0 | 0 | (34 | ) | 0 | 0 | (34 | ) | ||||||||||||||||
Swap Agreements | 0 | 0 | 294 | 0 | 0 | 294 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
$ | 0 | $ | 0 | $ | 260 | $ | (1,259 | ) | $ | 0 | $ | (999 | ) | |||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
$ | 0 | $ | 0 | $ | (6,986 | ) | $ | (1,259 | ) | $ | 0 | $ | (8,245 | ) | ||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
See Accompanying Notes | ANNUAL REPORT | JUNE 30, 2015 | 65 |
Table of Contents
Schedule of Investments PIMCO EqS® Long/Short Fund (Cont.)
June 30, 2015
Derivatives not accounted for as hedging instruments | ||||||||||||||||||||||||
Commodity Contracts | Credit Contracts | Equity Contracts | Foreign Exchange Contracts | Interest Rate Contracts | Total | |||||||||||||||||||
Net Change in Unrealized Appreciation (Depreciation) on Financial Derivative Instruments |
| |||||||||||||||||||||||
Exchange-traded or centrally cleared | ||||||||||||||||||||||||
Purchased Options | $ | 0 | $ | 0 | $ | (1,772 | ) | $ | 0 | $ | 0 | $ | (1,772 | ) | ||||||||||
Written Options | 0 | 0 | 1,612 | 0 | 0 | 1,612 | ||||||||||||||||||
Futures | 0 | 0 | 202 | 0 | 0 | 202 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
$ | 0 | $ | 0 | $ | 42 | $ | 0 | $ | 0 | $ | 42 | |||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Over the counter | ||||||||||||||||||||||||
Forward Foreign Currency Contracts | $ | 0 | $ | 0 | $ | 0 | $ | 3,899 | $ | 0 | $ | 3,899 | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
$ | 0 | $ | 0 | $ | 42 | $ | 3,899 | $ | 0 | $ | 3,941 | |||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
FAIR VALUE MEASUREMENTS
The following is a summary of the fair valuations according to the inputs used as of June 30, 2015 in valuing the Fund’s assets and liabilities:
Category and Subcategory | Level 1 | Level 2 | Level 3 | Fair Value at 06/30/2015 | ||||||||||||
Investments in Securities, at Value | ||||||||||||||||
Common Stocks | ||||||||||||||||
United Kingdom | ||||||||||||||||
Consumer Discretionary | $ | 12,785 | $ | 0 | $ | 0 | $ | 12,785 | ||||||||
United States | ||||||||||||||||
Consumer Discretionary | 191,081 | 0 | 0 | 191,081 | ||||||||||||
Consumer Staples | 15,032 | 0 | 0 | 15,032 | ||||||||||||
Energy | 8,924 | 0 | 0 | 8,924 | ||||||||||||
Financials | 91,280 | 0 | 0 | 91,280 | ||||||||||||
Health Care | 164,025 | 0 | 0 | 164,025 | ||||||||||||
Industrials | 45,938 | 0 | 0 | 45,938 | ||||||||||||
Information Technology | 96,144 | 0 | 0 | 96,144 | ||||||||||||
Materials | 23,236 | 0 | 0 | 23,236 | ||||||||||||
Telecommunication Services | 15,508 | 0 | 0 | 15,508 | ||||||||||||
Real Estate Investment Trusts | ||||||||||||||||
United States | ||||||||||||||||
Financials | 26,832 | 0 | 0 | 26,832 | ||||||||||||
Short-Term Instruments | ||||||||||||||||
Repurchase Agreements | 0 | 212 | 0 | 212 | ||||||||||||
$ | 690,785 | $ | 212 | $ | 0 | $ | 690,997 | |||||||||
Investments in Affiliates, at Value | ||||||||||||||||
Short Term Instruments | ||||||||||||||||
Central Funds Used for Cash Management Purposes | 122,481 | 0 | 0 | 122,481 | ||||||||||||
Total Investments | $ | 813,266 | $ | 212 | $ | 0 | $ | 813,478 | ||||||||
Short Sales, at Value - Liabilities | ||||||||||||||||
Common Stocks | ||||||||||||||||
Canada | ||||||||||||||||
Consumer Staples | $ | (2,994 | ) | $ | 0 | $ | 0 | $ | (2,994 | ) | ||||||
Industrials | (1,138 | ) | 0 | 0 | (1,138 | ) |
Category and Subcategory | Level 1 | Level 2 | Level 3 | Fair Value at 06/30/2015 | ||||||||||||
Hong Kong | ||||||||||||||||
Consumer Discretionary | $ | (5,202 | ) | $ | 0 | $ | 0 | $ | (5,202 | ) | ||||||
Italy | ||||||||||||||||
Energy | 0 | (6,340 | ) | 0 | (6,340 | ) | ||||||||||
Switzerland | ||||||||||||||||
Energy | (7,899 | ) | 0 | 0 | (7,899 | ) | ||||||||||
United Kingdom | ||||||||||||||||
Energy | (6,681 | ) | 0 | 0 | (6,681 | ) | ||||||||||
United States | ||||||||||||||||
Consumer Discretionary | (43,331 | ) | 0 | 0 | (43,331 | ) | ||||||||||
Energy | (6,290 | ) | 0 | 0 | (6,290 | ) | ||||||||||
Financials | (22,333 | ) | 0 | 0 | (22,333 | ) | ||||||||||
Industrials | (28,968 | ) | 0 | 0 | (28,968 | ) | ||||||||||
Information Technology | (21,503 | ) | 0 | 0 | (21,503 | ) | ||||||||||
Telecommunication Services | (8,892 | ) | 0 | 0 | (8,892 | ) | ||||||||||
Exchange-Traded Funds | ||||||||||||||||
United States | (21,232 | ) | 0 | 0 | (21,232 | ) | ||||||||||
Real Estate Investment Trusts | ||||||||||||||||
United States | ||||||||||||||||
Financials | (4,499 | ) | 0 | 0 | (4,499 | ) | ||||||||||
$ | (180,962 | ) | $ | (6,340 | ) | $ | 0 | $ | (187,302 | ) | ||||||
Financial Derivative Instruments - Assets |
| |||||||||||||||
Exchange-traded or centrally cleared | $ | 0 | $ | 149 | $ | 0 | $ | 149 | ||||||||
Financial Derivative Instruments - Liabilities |
| |||||||||||||||
Exchange-traded or centrally cleared | (295 | ) | 0 | 0 | (295 | ) | ||||||||||
Over the counter | 0 | (89 | ) | 0 | (89 | ) | ||||||||||
$ | (295 | ) | $ | (89 | ) | $ | 0 | $ | (384 | ) | ||||||
Totals | $ | 632,009 | $ | (6,068 | ) | $ | 0 | $ | 625,941 |
There were no significant transfers between Levels 1, 2, or 3 during the period ended June 30, 2015.
66 | PIMCO EQUITY SERIES | See Accompanying Notes |
Table of Contents
Schedule of Investments PIMCO Global Dividend Fund
June 30, 2015
SHARES | MARKET VALUE (000S) | |||||||||||
INVESTMENTS IN SECURITIES 96.1% | ||||||||||||
COMMON STOCKS 92.5% | ||||||||||||
AUSTRALIA 2.1% | ||||||||||||
CONSUMER DISCRETIONARY 1.0% | ||||||||||||
G8 Education Ltd. | 512,414 | $ | 1,288 | |||||||||
|
| |||||||||||
INDUSTRIALS 1.1% | ||||||||||||
Spotless Group Holdings Ltd. | 841,933 | 1,355 | ||||||||||
|
| |||||||||||
Total Australia | 2,643 | |||||||||||
|
| |||||||||||
BERMUDA 1.8% | ||||||||||||
INDUSTRIALS 1.8% | ||||||||||||
Golar LNG Partners LP | 94,722 | 2,337 | ||||||||||
|
| |||||||||||
Total Bermuda | 2,337 | |||||||||||
|
| |||||||||||
BRAZIL 2.9% | ||||||||||||
INDUSTRIALS 1.0% | ||||||||||||
Arteris S.A. | 433,300 | 1,317 | ||||||||||
|
| |||||||||||
UTILITIES 1.9% | ||||||||||||
Cia de Saneamento Basico do Estado de Sao Paulo - ADR | 209,211 | 1,084 | ||||||||||
Light S.A. | 232,900 | 1,268 | ||||||||||
|
| |||||||||||
2,352 | ||||||||||||
|
| |||||||||||
Total Brazil | 3,669 | |||||||||||
|
| |||||||||||
CANADA 1.7% | ||||||||||||
UTILITIES 1.7% | ||||||||||||
Capital Power Corp. | 127,252 | 2,195 | ||||||||||
|
| |||||||||||
Total Canada | 2,195 | |||||||||||
|
| |||||||||||
CHINA 1.0% | ||||||||||||
CONSUMER STAPLES 1.0% | ||||||||||||
Want Want China Holdings Ltd. | 1,225,000 | 1,293 | ||||||||||
|
| |||||||||||
Total China | 1,293 | |||||||||||
|
| |||||||||||
CYPRUS 0.6% | ||||||||||||
ENERGY 0.6% | ||||||||||||
ProSafe SE | 216,111 | 749 | ||||||||||
|
| |||||||||||
Total Cyprus | 749 | |||||||||||
|
| |||||||||||
FRANCE 5.8% | ||||||||||||
CONSUMER STAPLES 1.9% | ||||||||||||
Carrefour S.A. | 77,003 | 2,474 | ||||||||||
|
| |||||||||||
UTILITIES 3.9% | ||||||||||||
Electricite de France S.A. | 112,872 | 2,525 | ||||||||||
Suez Environnement Co. | 129,362 | 2,415 | ||||||||||
|
| |||||||||||
4,940 | ||||||||||||
|
| |||||||||||
Total France | 7,414 | |||||||||||
|
| |||||||||||
GERMANY 2.0% | ||||||||||||
UTILITIES 2.0% | ||||||||||||
E.ON SE | 189,501 | 2,527 | ||||||||||
|
| |||||||||||
Total Germany | 2,527 | |||||||||||
|
|
SHARES | MARKET VALUE (000S) | |||||||||||
GREECE 0.9% | ||||||||||||
CONSUMER DISCRETIONARY 0.9% | ||||||||||||
OPAP S.A. | 148,698 | $ | 1,186 | |||||||||
|
| |||||||||||
Total Greece | 1,186 | |||||||||||
|
| |||||||||||
HONG KONG 4.4% | ||||||||||||
CONSUMER DISCRETIONARY 2.0% | ||||||||||||
Li & Fung Ltd. | 3,132,000 | 2,483 | ||||||||||
|
| |||||||||||
TELECOMMUNICATION SERVICES 2.4% | ||||||||||||
China Mobile Ltd. | 243,000 | 3,114 | ||||||||||
|
| |||||||||||
Total Hong Kong | 5,597 | |||||||||||
|
| |||||||||||
ITALY 3.8% | ||||||||||||
FINANCIALS 2.9% | ||||||||||||
Intesa Sanpaolo SpA | 1,020,273 | 3,705 | ||||||||||
|
| |||||||||||
INDUSTRIALS 0.9% | ||||||||||||
Societa Iniziative Autostradali e Servizi SpA | 112,282 | 1,199 | ||||||||||
|
| |||||||||||
Total Italy | 4,904 | |||||||||||
|
| |||||||||||
JAPAN 4.0% | ||||||||||||
CONSUMER DISCRETIONARY 1.9% | ||||||||||||
Bridgestone Corp. | 65,800 | 2,432 | ||||||||||
|
| |||||||||||
TELECOMMUNICATION SERVICES 2.1% | ||||||||||||
Nippon Telegraph & Telephone Corp. | 74,600 | 2,702 | ||||||||||
|
| |||||||||||
Total Japan | 5,134 | |||||||||||
|
| |||||||||||
MEXICO 1.0% | ||||||||||||
CONSUMER STAPLES 1.0% | ||||||||||||
Coca-Cola Femsa S.A.B. de C.V. | 162,500 | 1,291 | ||||||||||
|
| |||||||||||
Total Mexico | 1,291 | |||||||||||
|
| |||||||||||
NETHERLANDS 3.6% | ||||||||||||
FINANCIALS 3.6% | ||||||||||||
Aegon NV | 358,993 | 2,649 | ||||||||||
NN Group NV | 68,183 | 1,920 | ||||||||||
|
| |||||||||||
4,569 | ||||||||||||
|
| |||||||||||
Total Netherlands | 4,569 | |||||||||||
|
| |||||||||||
SPAIN 1.6% | ||||||||||||
CONSUMER STAPLES 1.6% | ||||||||||||
Ebro Foods S.A. | 101,496 | 1,966 | ||||||||||
|
| |||||||||||
Total Spain | 1,966 | |||||||||||
|
| |||||||||||
SWITZERLAND 2.3% | ||||||||||||
HEALTH CARE 2.3% | ||||||||||||
Roche Holding AG | 10,590 | 2,969 | ||||||||||
|
| |||||||||||
Total Switzerland | 2,969 | |||||||||||
|
| |||||||||||
SHARES | MARKET VALUE (000S) | |||||||||||
TAIWAN 1.2% | ||||||||||||
INFORMATION TECHNOLOGY 1.2% | ||||||||||||
Radiant Opto-Electronics Corp. | 426,360 | $ | 1,581 | |||||||||
|
| |||||||||||
Total Taiwan | 1,581 | |||||||||||
|
| |||||||||||
TURKEY 1.1% | ||||||||||||
INDUSTRIALS 1.1% | ||||||||||||
TAV Havalimanlari Holding A/S | 162,103 | 1,376 | ||||||||||
|
| |||||||||||
Total Turkey | 1,376 | |||||||||||
|
| |||||||||||
UNITED KINGDOM 9.9% | ||||||||||||
CONSUMER STAPLES 2.4% | ||||||||||||
Imperial Tobacco Group PLC | 63,571 | 3,062 | ||||||||||
|
| |||||||||||
FINANCIALS 4.6% | ||||||||||||
ICAP PLC | 239,392 | 1,991 | ||||||||||
Lloyds Banking Group PLC | 2,862,311 | 3,842 | ||||||||||
|
| |||||||||||
5,833 | ||||||||||||
|
| |||||||||||
TELECOMMUNICATION SERVICES 2.9% | ||||||||||||
Vodafone Group PLC | 1,030,975 | 3,761 | ||||||||||
|
| |||||||||||
Total United Kingdom | 12,656 | |||||||||||
|
| |||||||||||
UNITED STATES 40.8% | ||||||||||||
CONSUMER DISCRETIONARY 3.1% | ||||||||||||
General Motors Co. | 51,687 | 1,722 | ||||||||||
Kohl’s Corp. | 36,319 | 2,274 | ||||||||||
|
| |||||||||||
3,996 | ||||||||||||
|
| |||||||||||
ENERGY 1.6% | ||||||||||||
Targa Resources Corp. | 21,954 | 1,959 | ||||||||||
|
| |||||||||||
FINANCIALS 10.4% | ||||||||||||
Blackstone Group LP | 78,215 | 3,197 | ||||||||||
JPMorgan Chase & Co. | 47,205 | 3,199 | ||||||||||
Navient Corp. | 136,435 | 2,484 | ||||||||||
Prudential Financial, Inc. | 35,835 | 3,136 | ||||||||||
Regions Financial Corp. | 126,529 | 1,311 | ||||||||||
|
| |||||||||||
13,327 | ||||||||||||
|
| |||||||||||
HEALTH CARE 4.6% | ||||||||||||
AbbVie, Inc. | 23,277 | 1,564 | ||||||||||
Merck & Co., Inc. | 32,828 | 1,869 | ||||||||||
Pfizer, Inc. | 73,598 | 2,467 | ||||||||||
|
| |||||||||||
5,900 | ||||||||||||
|
| |||||||||||
INFORMATION TECHNOLOGY 8.7% | ||||||||||||
Cisco Systems, Inc. | 93,711 | 2,573 | ||||||||||
NetApp, Inc. | 40,344 | 1,273 | ||||||||||
QUALCOMM, Inc. | 44,624 | 2,795 | ||||||||||
Symantec Corp. | 101,319 | 2,356 | ||||||||||
Western Digital Corp. | 27,544 | 2,160 | ||||||||||
|
| |||||||||||
11,157 | ||||||||||||
|
| |||||||||||
See Accompanying Notes | ANNUAL REPORT | JUNE 30, 2015 | 67 |
Table of Contents
Schedule of Investments PIMCO Global Dividend Fund (Cont.)
SHARES | MARKET VALUE (000S) | |||||||||||
MATERIALS 4.7% | ||||||||||||
International Paper Co. | 43,359 | $ | 2,063 | |||||||||
Steel Dynamics, Inc. | 120,834 | 2,503 | ||||||||||
Tronox Ltd. ‘A’ | 98,257 | 1,438 | ||||||||||
|
| |||||||||||
6,004 | ||||||||||||
|
| |||||||||||
TELECOMMUNICATION SERVICES 2.9% | ||||||||||||
AT&T, Inc. | 104,327 | 3,706 | ||||||||||
|
| |||||||||||
UTILITIES 4.8% | ||||||||||||
ONE Gas, Inc. | 63,283 | 2,693 | ||||||||||
PG&E Corp. | 70,682 | 3,471 | ||||||||||
|
| |||||||||||
6,164 | ||||||||||||
|
| |||||||||||
Total United States | 52,213 | |||||||||||
|
| |||||||||||
Total Common Stocks | 118,269 | |||||||||||
|
| |||||||||||
REAL ESTATE INVESTMENT TRUSTS 2.8% | ||||||||||||
UNITED STATES 2.8% | ||||||||||||
FINANCIALS 2.8% | ||||||||||||
Colony Capital, Inc. | 155,989 | 3,533 | ||||||||||
|
| |||||||||||
Total Real Estate Investment Trusts | 3,533 | |||||||||||
|
| |||||||||||
SHORT-TERM INSTRUMENTS 0.8% | ||||||||||||
REPURCHASE AGREEMENTS (b) 0.4% | ||||||||||||
540 | ||||||||||||
|
|
PRINCIPAL AMOUNT (000S) | MARKET VALUE (000S) | |||||||||||
U.S. TREASURY BILLS 0.4% | ||||||||||||
0.009% due 09/03/2015 - 11/05/2015 (a)(d) | $ | 571 | $ | 571 | ||||||||
|
| |||||||||||
Total Short-Term Instruments (Cost $1,111) | 1,111 | |||||||||||
|
| |||||||||||
Total Investments in Securities (Cost $120,032) | 122,913 | |||||||||||
|
| |||||||||||
SHARES | ||||||||||||
INVESTMENTS IN AFFILIATES 2.4% | ||||||||||||
SHORT TERM INSTRUMENTS 2.4% | ||||||||||||
CENTRAL FUNDS USED FOR CASH MANAGEMENT PURPOSES 2.4% | ||||||||||||
PIMCO Short-Term | 304,920 | 3,024 | ||||||||||
|
| |||||||||||
Total Short Term Instruments (Cost $3,024) | 3,024 | |||||||||||
|
| |||||||||||
Total Investments in Affiliates (Cost $3,024) | 3,024 | |||||||||||
Total Investments 98.5% (Cost $123,056) | $ | 125,937 | ||||||||||
Financial Derivative (Cost or Premiums, net $0) | (284 | ) | ||||||||||
Other Assets and Liabilities, net 1.7% | 2,261 | |||||||||||
|
| |||||||||||
Net Assets 100.0% | $ | 127,914 | ||||||||||
|
|
NOTES TO SCHEDULE OF INVESTMENTS (AMOUNTS IN THOUSANDS*):
* | A zero balance may reflect actual amounts rounding to less than one thousand. |
(a) | Coupon represents a weighted average yield to maturity. |
BORROWINGS AND OTHER FINANCING TRANSACTIONS
(b) REPURCHASE AGREEMENTS:
Counterparty | Lending Rate | Settlement Date | Maturity Date | Principal Amount | Collateralized By | Collateral Received, at Value | Repurchase Agreements, at Value | Repurchase Agreement Proceeds to be Received (1) | ||||||||||||||||||||
SSB | 0.000% | 06/30/2015 | 07/01/2015 | $ | 540 | Fannie Mae 2.260% due 10/17/2022 | $ | (554 | ) | $ | 540 | $ | 540 | |||||||||||||||
|
|
|
|
|
| |||||||||||||||||||||||
Total Repurchase Agreements |
| $ | (554 | ) | $ | 540 | $ | 540 | ||||||||||||||||||||
|
|
|
|
|
|
(1) | Includes accrued interest. |
BORROWINGS AND OTHER FINANCING TRANSACTIONS SUMMARY
The following is a summary by counterparty of the market value of Borrowings and Other Financing Transactions and collateral (received) as of June 30, 2015:
Counterparty | Repurchase Agreement Proceeds to be Received | Payable for Reverse Repurchase Agreements | Payable for Sale-Buyback Transactions | Payable for Short Sales | Total Borrowings and Other Financing Transactions | Collateral (Received) | Net Exposure (2) | |||||||||||||||||||||
Global/Master Repurchase Agreement | ||||||||||||||||||||||||||||
SSB | $ | 540 | $ | 0 | $ | 0 | $ | 0 | $ | 540 | $ | (554 | ) | $ | (14 | ) | ||||||||||||
|
|
|
|
|
|
|
| |||||||||||||||||||||
Total Borrowings and Other Financing Transactions | $ | 540 | $ | 0 | $ | 0 | $ | 0 | ||||||||||||||||||||
|
|
|
|
|
|
|
|
(2) | Net Exposure represents the net receivable/(payable) that would be due from/to the counterparty in the event of default. Exposure from borrowings and other financing transactions can only be netted across transactions governed under the same master agreement with the same legal entity. See Note 7, Principal Risks, in the Notes to Financial Statements for more information regarding master netting arrangements. |
68 | PIMCO EQUITY SERIES | See Accompanying Notes |
Table of Contents
June 30, 2015
(c) FINANCIAL DERIVATIVE INSTRUMENTS: OVER THE COUNTER
FORWARD FOREIGN CURRENCY CONTRACTS:
Counterparty | Settlement | Currency to | Currency to be Received | Unrealized Appreciation/ (Depreciation) | ||||||||||||||||||||||||
Asset | Liability | |||||||||||||||||||||||||||
BOA | 07/2015 | JPY | 354,128 | $ | 2,864 | $ | 0 | $ | (29 | ) | ||||||||||||||||||
09/2015 | $ | 75 | HKD | 582 | 0 | 0 | ||||||||||||||||||||||
GLM | 07/2015 | 2,862 | JPY | 354,128 | 32 | 0 | ||||||||||||||||||||||
08/2015 | JPY | 354,128 | $ | 2,863 | 0 | (32 | ) | |||||||||||||||||||||
HUS | 07/2015 | $ | 92 | SGD | 126 | 1 | 0 | |||||||||||||||||||||
MSB | 07/2015 | 13,534 | EUR | 12,094 | 0 | (51 | ) | |||||||||||||||||||||
08/2015 | EUR | 12,094 | $ | 13,539 | 51 | 0 | ||||||||||||||||||||||
08/2015 | GBP | 2,531 | 3,986 | 10 | 0 | |||||||||||||||||||||||
08/2015 | $ | 3,727 | EUR | 3,336 | 0 | (7 | ) | |||||||||||||||||||||
08/2015 | 2,857 | JPY | 353,571 | 33 | 0 | |||||||||||||||||||||||
UAG | 07/2015 | EUR | 12,094 | $ | 13,191 | 0 | (292 | ) | ||||||||||||||||||||
|
|
|
| |||||||||||||||||||||||||
Total Forward Foreign Currency Contracts |
| $ | 127 | $ | (411 | ) | ||||||||||||||||||||||
|
|
|
|
FINANCIAL DERIVATIVE INSTRUMENTS: OVER THE COUNTER SUMMARY
The following is a summary by counterparty of the market value of OTC financial derivative instruments and collateral (received)/pledged as of June 30, 2015:
(d) | Securities with an aggregate market value of $320 have been pledged as collateral for financial derivative instruments as governed by International Swaps and Derivatives Association, Inc. master agreements as of June 30, 2015. |
Financial Derivative Assets | Financial Derivative Liabilities | |||||||||||||||||||||||||||||||||||||||||||||
Counterparty | Forward Foreign Currency Contracts | Purchased Options | Swap Agreements | Total Over the Counter | Forward Foreign Currency Contracts | Written Options | Swap Agreements | Total Over the Counter | Net Market Value of OTC Derivatives | Collateral (Received)/ Pledged | Net Exposure (1) | |||||||||||||||||||||||||||||||||||
BOA | $ | 0 | $ | 0 | $ | 0 | $ | 0 | $ | (29 | ) | $ | 0 | $ | 0 | $ | (29 | ) | $ | (29 | ) | $ | 0 | $ | (29 | ) | ||||||||||||||||||||
DUB | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | (90 | ) | (90 | ) | |||||||||||||||||||||||||||||||||
GLM | 32 | 0 | 0 | 32 | (32 | ) | 0 | 0 | (32 | ) | 0 | 0 | 0 | |||||||||||||||||||||||||||||||||
HUS | 1 | 0 | 0 | 1 | 0 | 0 | 0 | 0 | 1 | 0 | 1 | |||||||||||||||||||||||||||||||||||
MSB | 94 | 0 | 0 | 94 | (58 | ) | 0 | 0 | (58 | ) | 36 | 0 | 36 | |||||||||||||||||||||||||||||||||
UAG | 0 | 0 | 0 | 0 | (292 | ) | 0 | 0 | (292 | ) | (292 | ) | 320 | 28 | ||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||||||||||||||||
Total Over the Counter | $ | 127 | $ | 0 | $ | 0 | $ | 127 | $ | (411 | ) | $ | 0 | $ | 0 | $ | (411 | ) | ||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) | Net Exposure represents the net receivable/(payable) that would be due from/to the counterparty in the event of default. Exposure from OTC financial derivative instruments can only be netted across transactions governed under the same master agreement with the same legal entity. See Note 7, Principal Risks, in the Notes to Financial Statements for more information regarding master netting arrangements. |
FAIR VALUE OF FINANCIAL DERIVATIVE INSTRUMENTS
The following is a summary of the fair valuation of the Fund’s derivative instruments categorized by risk exposure. See Note 7, Principal Risks, in the Notes to Financial Statements on risks of the Fund.
Fair Values of Financial Derivative Instruments on the Statements of Assets and Liabilities as of June 30, 2015:
Derivatives not accounted for as hedging instruments | ||||||||||||||||||||||||
Commodity Contracts | Credit Contracts | Equity Contracts | Foreign Exchange Contracts | Interest Rate Contracts | Total | |||||||||||||||||||
Financial Derivative Instruments - Assets | ||||||||||||||||||||||||
Over the counter | ||||||||||||||||||||||||
Forward Foreign Currency Contracts | $ | 0 | $ | 0 | $ | 0 | $ | 127 | $ | 0 | $ | 127 | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Financial Derivative Instruments - Liabilities | ||||||||||||||||||||||||
Over the counter | ||||||||||||||||||||||||
Forward Foreign Currency Contracts | $ | 0 | $ | 0 | $ | 0 | $ | 411 | $ | 0 | $ | 411 | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
See Accompanying Notes | ANNUAL REPORT | JUNE 30, 2015 | 69 |
Table of Contents
Schedule of Investments PIMCO Global Dividend Fund (Cont.)
June 30, 2015
The Effect of Financial Derivative Instruments on the Statements of Operations for the period ended June 30, 2015:
Derivatives not accounted for as hedging instruments | ||||||||||||||||||||||||
Commodity Contracts | Credit Contracts | Equity Contracts | Foreign Exchange Contracts | Interest Rate Contracts | Total | |||||||||||||||||||
Net Realized Gain on Financial Derivative Instruments | ||||||||||||||||||||||||
Over the counter | ||||||||||||||||||||||||
Forward Foreign Currency Contracts | $ | 0 | $ | 0 | $ | 0 | $ | 2,557 | $ | 0 | $ | 2,557 | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Net Change in Unrealized (Depreciation) on Financial Derivative Instruments |
| |||||||||||||||||||||||
Over the counter | ||||||||||||||||||||||||
Forward Foreign Currency Contracts | $ | 0 | $ | 0 | $ | 0 | $ | (318 | ) | $ | 0 | $ | (318 | ) | ||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
FAIR VALUE MEASUREMENTS
The following is a summary of the fair valuations according to the inputs used as of June 30, 2015 in valuing the Fund’s assets and liabilities:
Category and Subcategory | Level 1 | Level 2 | Level 3 | Fair Value at 06/30/2015 | ||||||||||||
Investments in Securities, at Value | ||||||||||||||||
Common Stocks | ||||||||||||||||
Australia | ||||||||||||||||
Consumer Discretionary | $ | 0 | $ | 1,288 | $ | 0 | $ | 1,288 | ||||||||
Industrials | 0 | 1,355 | 0 | 1,355 | ||||||||||||
Bermuda | ||||||||||||||||
Industrials | 2,337 | 0 | 0 | 2,337 | ||||||||||||
Brazil | ||||||||||||||||
Industrials | 1,317 | 0 | 0 | 1,317 | ||||||||||||
Utilities | 2,352 | 0 | 0 | 2,352 | ||||||||||||
Canada | ||||||||||||||||
Utilities | 2,195 | 0 | 0 | 2,195 | ||||||||||||
China | ||||||||||||||||
Consumer Staples | 0 | 1,293 | 0 | 1,293 | ||||||||||||
Cyprus | ||||||||||||||||
Energy | 0 | 749 | 0 | 749 | ||||||||||||
France | ||||||||||||||||
Consumer Staples | 0 | 2,474 | 0 | 2,474 | ||||||||||||
Utilities | 0 | 4,940 | 0 | 4,940 | ||||||||||||
Germany | ||||||||||||||||
Utilities | 0 | 2,527 | 0 | 2,527 | ||||||||||||
Greece | ||||||||||||||||
Consumer Discretionary | 0 | 1,186 | 0 | 1,186 | ||||||||||||
Hong Kong | ||||||||||||||||
Consumer Discretionary | 0 | 2,483 | 0 | 2,483 | ||||||||||||
Telecommunication Services | 0 | 3,114 | 0 | 3,114 | ||||||||||||
Italy | ||||||||||||||||
Financials | 0 | 3,705 | 0 | 3,705 | ||||||||||||
Industrials | 0 | 1,199 | 0 | 1,199 | ||||||||||||
Japan | ||||||||||||||||
Consumer Discretionary | 0 | 2,432 | 0 | 2,432 | ||||||||||||
Telecommunication Services | 0 | 2,702 | 0 | 2,702 | ||||||||||||
Mexico | ||||||||||||||||
Consumer Staples | 1,291 | 0 | 0 | 1,291 | ||||||||||||
Netherlands | ||||||||||||||||
Financials | 0 | 4,569 | 0 | 4,569 | ||||||||||||
Spain | ||||||||||||||||
Consumer Staples | 0 | 1,966 | 0 | 1,966 | ||||||||||||
Switzerland | ||||||||||||||||
Health Care | 0 | 2,969 | 0 | 2,969 |
Category and Subcategory | Level 1 | Level 2 | Level 3 | Fair Value at 06/30/2015 | ||||||||||||
Taiwan | ||||||||||||||||
Information Technology | $ | 0 | $ | 1,581 | $ | 0 | $ | 1,581 | ||||||||
Turkey | ||||||||||||||||
Industrials | 0 | 1,376 | 0 | 1,376 | ||||||||||||
United Kingdom | ||||||||||||||||
Consumer Staples | 0 | 3,062 | 0 | 3,062 | ||||||||||||
Financials | 0 | 5,833 | 0 | 5,833 | ||||||||||||
Telecommunication Services | 0 | 3,761 | 0 | 3,761 | ||||||||||||
United States | ||||||||||||||||
Consumer Discretionary | 3,996 | 0 | 0 | 3,996 | ||||||||||||
Energy | 1,959 | 0 | 0 | 1,959 | ||||||||||||
Financials | 13,327 | 0 | 0 | 13,327 | ||||||||||||
Health Care | 5,900 | 0 | 0 | 5,900 | ||||||||||||
Information Technology | 11,157 | 0 | 0 | 11,157 | ||||||||||||
Materials | 6,004 | 0 | 0 | 6,004 | ||||||||||||
Telecommunication Services | 3,706 | 0 | 0 | 3,706 | ||||||||||||
Utilities | 6,164 | 0 | 0 | 6,164 | ||||||||||||
Real Estate Investment Trusts | ||||||||||||||||
United States | ||||||||||||||||
Financials | 3,533 | 0 | 0 | 3,533 | ||||||||||||
Short-Term Instruments | ||||||||||||||||
Repurchase Agreements | 0 | 540 | 0 | 540 | ||||||||||||
U.S. Treasury Bills | 0 | 571 | 0 | 571 | ||||||||||||
$ | 65,238 | $ | 57,675 | $ | 0 | $ | 122,913 | |||||||||
Investments in Affiliates, at Value |
| |||||||||||||||
Short Term Instruments | ||||||||||||||||
Central Funds Used for Cash Management Purposes | 3,024 | 0 | 0 | 3,024 | ||||||||||||
Total Investments | $ | 68,262 | $ | 57,675 | $ | 0 | $ | 125,937 | ||||||||
Financial Derivative Instruments - Assets |
| |||||||||||||||
Over the counter | $ | 0 | $ | 127 | $ | 0 | $ | 127 | ||||||||
Financial Derivative Instruments - Liabilities |
| |||||||||||||||
Over the counter | $ | 0 | $ | (411 | ) | $ | 0 | $ | (411 | ) | ||||||
Totals | $ | 68,262 | $ | 57,391 | $ | 0 | $ | 125,653 |
There were no significant transfers between Levels 1, 2, or 3 during the period ended June 30, 2015.
70 | PIMCO EQUITY SERIES | See Accompanying Notes |
Table of Contents
Schedule of Investments PIMCO International Dividend Fund
June 30, 2015
SHARES | MARKET VALUE (000S) | |||||||||||
INVESTMENTS IN SECURITIES 96.8% | ||||||||||||
COMMON STOCKS 96.8% | ||||||||||||
AUSTRALIA 9.7% | ||||||||||||
CONSUMER DISCRETIONARY 1.5% | ||||||||||||
G8 Education Ltd. | 48,586 | $ | 122 | |||||||||
|
| |||||||||||
CONSUMER STAPLES 0.9% | ||||||||||||
Coca-Cola Amatil Ltd. | 10,947 | 77 | ||||||||||
|
| |||||||||||
HEALTH CARE 2.0% | ||||||||||||
Sonic Healthcare Ltd. | 10,054 | 166 | ||||||||||
|
| |||||||||||
INDUSTRIALS 3.4% | ||||||||||||
Asciano Ltd. | 15,897 | 82 | ||||||||||
Spotless Group Holdings Ltd. | 124,239 | 200 | ||||||||||
|
| |||||||||||
282 | ||||||||||||
|
| |||||||||||
MATERIALS 1.9% | ||||||||||||
Iluka Resources Ltd. | 25,761 | 152 | ||||||||||
|
| |||||||||||
Total Australia | 799 | |||||||||||
|
| |||||||||||
BERMUDA 3.0% | ||||||||||||
INDUSTRIALS 3.0% | ||||||||||||
Golar LNG Partners LP | 9,961 | 246 | ||||||||||
|
| |||||||||||
Total Bermuda | 246 | |||||||||||
|
| |||||||||||
BRAZIL 3.8% | ||||||||||||
INDUSTRIALS 1.4% | ||||||||||||
Arteris S.A. | 37,800 | 115 | ||||||||||
|
| |||||||||||
UTILITIES 2.4% | ||||||||||||
Cia de Saneamento Basico do Estado de Sao Paulo - ADR | 13,902 | 72 | ||||||||||
Light S.A. | 22,700 | 123 | ||||||||||
|
| |||||||||||
195 | ||||||||||||
|
| |||||||||||
Total Brazil | 310 | |||||||||||
|
| |||||||||||
CANADA 2.4% | ||||||||||||
UTILITIES 2.4% | ||||||||||||
Capital Power Corp. | 11,227 | 194 | ||||||||||
|
| |||||||||||
Total Canada | 194 | |||||||||||
|
| |||||||||||
CHINA 3.1% | ||||||||||||
CONSUMER DISCRETIONARY 1.2% | ||||||||||||
Great Wall Motor Co. Ltd. ‘H’ | 20,000 | 95 | ||||||||||
|
| |||||||||||
CONSUMER STAPLES 1.9% | ||||||||||||
Want Want China Holdings Ltd. | 152,000 | 161 | ||||||||||
|
| |||||||||||
Total China | 256 | |||||||||||
|
| |||||||||||
CYPRUS 0.5% | ||||||||||||
ENERGY 0.5% | ||||||||||||
ProSafe SE | 12,198 | 42 | ||||||||||
|
| |||||||||||
Total Cyprus | 42 | |||||||||||
|
|
SHARES | MARKET VALUE (000S) | |||||||||||
FRANCE 7.3% | ||||||||||||
CONSUMER STAPLES 1.5% | ||||||||||||
Carrefour S.A. | 3,744 | $ | 120 | |||||||||
|
| |||||||||||
UTILITIES 5.8% | ||||||||||||
Electricite de France S.A. | 10,858 | 243 | ||||||||||
Suez Environnement Co. | 12,466 | 233 | ||||||||||
|
| |||||||||||
476 | ||||||||||||
|
| |||||||||||
Total France | 596 | |||||||||||
|
| |||||||||||
GERMANY 2.0% | ||||||||||||
UTILITIES 2.0% | ||||||||||||
E.ON SE | 12,052 | 161 | ||||||||||
|
| |||||||||||
Total Germany | 161 | |||||||||||
|
| |||||||||||
GREECE 1.0% | ||||||||||||
CONSUMER DISCRETIONARY 1.0% | ||||||||||||
OPAP S.A. | 10,352 | 82 | ||||||||||
|
| |||||||||||
Total Greece | 82 | |||||||||||
|
| |||||||||||
HONG KONG 5.9% | ||||||||||||
CONSUMER DISCRETIONARY 2.9% | ||||||||||||
Li & Fung Ltd. | 298,000 | 236 | ||||||||||
|
| |||||||||||
TELECOMMUNICATION SERVICES 3.0% | ||||||||||||
China Mobile Ltd. | 9,500 | 122 | ||||||||||
PCCW Ltd. | 208,000 | �� | 124 | |||||||||
|
| |||||||||||
246 | ||||||||||||
|
| |||||||||||
Total Hong Kong | 482 | |||||||||||
|
| |||||||||||
ISRAEL 2.0% | ||||||||||||
HEALTH CARE 2.0% | ||||||||||||
Teva Pharmaceutical Industries Ltd. SP - ADR | 2,820 | 167 | ||||||||||
|
| |||||||||||
Total Israel | 167 | |||||||||||
|
| |||||||||||
ITALY 4.5% | ||||||||||||
FINANCIALS 3.0% | ||||||||||||
Intesa Sanpaolo SpA | 68,186 | 248 | ||||||||||
|
| |||||||||||
INDUSTRIALS 1.5% | ||||||||||||
Societa Iniziative Autostradali e Servizi SpA | 11,083 | 118 | ||||||||||
|
| |||||||||||
Total Italy | 366 | |||||||||||
|
| |||||||||||
JAPAN 6.5% | ||||||||||||
CONSUMER DISCRETIONARY 1.9% | ||||||||||||
Bridgestone Corp. | 4,200 | 155 | ||||||||||
|
| |||||||||||
CONSUMER STAPLES 2.1% | ||||||||||||
Lawson, Inc. | 2,500 | 171 | ||||||||||
|
| |||||||||||
TELECOMMUNICATION SERVICES 2.5% | ||||||||||||
Nippon Telegraph & Telephone Corp. | 5,800 | 210 | ||||||||||
|
| |||||||||||
Total Japan | 536 | |||||||||||
|
|
SHARES | MARKET VALUE (000S) | |||||||||||
LUXEMBOURG 1.5% | ||||||||||||
FINANCIALS 1.5% | ||||||||||||
Regus PLC | 30,471 | $ | 125 | |||||||||
|
| |||||||||||
Total Luxembourg | 125 | |||||||||||
|
| |||||||||||
MEXICO 1.4% | ||||||||||||
CONSUMER STAPLES 0.9% | ||||||||||||
Coca-Cola Femsa S.A.B. de C.V. | 9,900 | 79 | ||||||||||
|
| |||||||||||
MATERIALS 0.5% | ||||||||||||
Southern Copper Corp. | 1,305 | 38 | ||||||||||
|
| |||||||||||
Total Mexico | 117 | |||||||||||
|
| |||||||||||
NETHERLANDS 3.5% | ||||||||||||
FINANCIALS 3.5% | ||||||||||||
Aegon NV | 16,053 | 118 | ||||||||||
NN Group NV | 6,132 | 173 | ||||||||||
|
| |||||||||||
291 | ||||||||||||
|
| |||||||||||
Total Netherlands | 291 | |||||||||||
|
| |||||||||||
SINGAPORE 0.7% | ||||||||||||
INDUSTRIALS 0.7% | ||||||||||||
Singapore Airlines Ltd. | 6,800 | 54 | ||||||||||
|
| |||||||||||
Total Singapore | 54 | |||||||||||
|
| |||||||||||
SOUTH AFRICA 2.7% | ||||||||||||
TELECOMMUNICATION SERVICES 2.7% | ||||||||||||
MTN Group Ltd. | 11,628 | 218 | ||||||||||
|
| |||||||||||
Total South Africa | 218 | |||||||||||
|
| |||||||||||
SPAIN 1.4% | ||||||||||||
CONSUMER STAPLES 1.4% | ||||||||||||
Ebro Foods S.A. | 6,086 | 118 | ||||||||||
|
| |||||||||||
Total Spain | 118 | |||||||||||
|
| |||||||||||
SWITZERLAND 2.0% | ||||||||||||
HEALTH CARE 2.0% | ||||||||||||
Roche Holding AG | 582 | 163 | ||||||||||
|
| |||||||||||
Total Switzerland | 163 | |||||||||||
|
| |||||||||||
TAIWAN 2.6% | ||||||||||||
INFORMATION TECHNOLOGY 2.6% | ||||||||||||
Radiant Opto-Electronics Corp. | 58,000 | 215 | ||||||||||
|
| |||||||||||
Total Taiwan | 215 | |||||||||||
|
| |||||||||||
THAILAND 1.5% | ||||||||||||
TELECOMMUNICATION SERVICES 1.5% | ||||||||||||
Total Access Communication PCL - NVDR | 49,900 | 123 | ||||||||||
|
| |||||||||||
Total Thailand | 123 | |||||||||||
|
| |||||||||||
TURKEY 1.6% | ||||||||||||
INDUSTRIALS 1.6% | ||||||||||||
TAV Havalimanlari Holding A/S | 15,077 | 128 | ||||||||||
|
| |||||||||||
Total Turkey | 128 | |||||||||||
|
|
See Accompanying Notes | ANNUAL REPORT | JUNE 30, 2015 | 71 |
Table of Contents
Schedule of Investments PIMCO International Dividend Fund (Cont.)
SHARES | MARKET VALUE (000S) | |||||||||||
UNITED KINGDOM 17.9% | ||||||||||||
CONSUMER STAPLES 4.0% | ||||||||||||
Imperial Tobacco Group PLC | 6,731 | $ | 324 | |||||||||
|
| |||||||||||
FINANCIALS 9.9% | ||||||||||||
HSBC Holdings PLC | 35,607 | 319 | ||||||||||
ICAP PLC | 20,088 | 167 | ||||||||||
Lloyds Banking Group PLC | 245,579 | 330 | ||||||||||
|
| |||||||||||
816 | ||||||||||||
|
| |||||||||||
TELECOMMUNICATION SERVICES 4.0% | ||||||||||||
Vodafone Group PLC | 89,208 | 325 | ||||||||||
|
| |||||||||||
Total United Kingdom | 1,465 | |||||||||||
|
| |||||||||||
UNITED STATES 8.3% | ||||||||||||
CONSUMER DISCRETIONARY 1.5% | ||||||||||||
Nielsen NV | 2,671 | 120 | ||||||||||
|
|
SHARES | MARKET VALUE (000S) | |||||||||||
HEALTH CARE 3.4% | ||||||||||||
AbbVie, Inc. | 1,757 | $ | 118 | |||||||||
Pfizer, Inc. | 4,888 | 164 | ||||||||||
|
| |||||||||||
282 | ||||||||||||
|
| |||||||||||
INFORMATION TECHNOLOGY 3.4% | ||||||||||||
Cisco Systems, Inc. | 4,437 | 122 | ||||||||||
QUALCOMM, Inc. | 2,517 | 157 | ||||||||||
|
| |||||||||||
279 | ||||||||||||
|
| |||||||||||
Total United States | 681 | |||||||||||
|
| |||||||||||
Total Common Stocks (Cost $7,992) | 7,935 | |||||||||||
|
| |||||||||||
Total Investments in Securities (Cost $7,992) | 7,935 | |||||||||||
|
|
SHARES | MARKET VALUE (000S) | |||||||||||
INVESTMENTS IN AFFILIATES 1.4% | ||||||||||||
SHORT TERM INSTRUMENTS 1.4% | ||||||||||||
CENTRAL FUNDS USED FOR CASH MANAGEMENT PURPOSES 1.4% | ||||||||||||
PIMCO Short-Term | 11,099 | $ | 110 | |||||||||
|
| |||||||||||
Total Short Term Instruments (Cost $110) | 110 | |||||||||||
|
| |||||||||||
Total Investments in Affiliates (Cost $110) | 110 | |||||||||||
Total Investments 98.2% (Cost $8,102) | $ | 8,045 | ||||||||||
Financial Derivative (Cost or Premiums, net $0) | 0 | |||||||||||
Other Assets and Liabilities, net 1.8% | 149 | |||||||||||
|
| |||||||||||
Net Assets 100.0% | $ | 8,194 | ||||||||||
|
|
NOTES TO SCHEDULE OF INVESTMENTS (AMOUNTS IN THOUSANDS*):
* | A zero balance may reflect actual amounts rounding to less than one thousand. |
(a) FINANCIAL DERIVATIVE INSTRUMENTS: OVER THE COUNTER
FORWARD FOREIGN CURRENCY CONTRACTS:
Counterparty | Settlement Month | Currency to | Currency to | Unrealized Appreciation/ (Depreciation) | ||||||||||||||||||||||||
Asset | Liability | |||||||||||||||||||||||||||
FBF | 08/2015 | EUR | 176 | $ | 196 | $ | 0 | $ | 0 | |||||||||||||||||||
MSB | 08/2015 | GBP | 268 | 422 | 1 | 0 | ||||||||||||||||||||||
08/2015 | $ | 360 | EUR | 322 | 0 | (1 | ) | |||||||||||||||||||||
|
|
|
| |||||||||||||||||||||||||
Total Forward Foreign Currency Contracts |
| $ | 1 | $ | (1 | ) | ||||||||||||||||||||||
|
|
|
|
FINANCIAL DERIVATIVE INSTRUMENTS: OVER THE COUNTER SUMMARY
The following is a summary by counterparty of the market value of OTC financial derivative instruments and collateral (received)/pledged as of June 30, 2015:
Financial Derivative Assets | Financial Derivative Liabilities | |||||||||||||||||||||||||||||||||||||||||||||
Counterparty | Forward Foreign Currency Contracts | Purchased Options | Swap Agreements | Total Over the Counter | Forward Foreign Currency Contracts | Written Options | Swap Agreements | Total Over the Counter | Net Market Value of OTC Derivatives | Collateral (Received)/ Pledged | Net Exposure (1) | |||||||||||||||||||||||||||||||||||
MSB | $ | 1 | $ | 0 | $ | 0 | $ | 1 | $ | (1 | ) | $ | 0 | $ | 0 | $ | (1 | ) | $ | 0 | $ | 0 | $ | 0 | ||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) | Net Exposure represents the net receivable/(payable) that would be due from/to the counterparty in the event of default. Exposure from OTC financial derivative instruments can only be netted across transactions governed under the same master agreement with the same legal entity. See Note 7, Principal Risks, in the Notes to Financial Statements for more information regarding master netting arrangements. |
72 | PIMCO EQUITY SERIES | See Accompanying Notes |
Table of Contents
June 30, 2015
FAIR VALUE OF FINANCIAL DERIVATIVE INSTRUMENTS
The following is a summary of the fair valuation of the Fund’s derivative instruments categorized by risk exposure. See Note 7, Principal Risks, in the Notes to Financial Statements on risks of the Fund.
Fair Values of Financial Derivative Instruments on the Statements of Assets and Liabilities as of June 30, 2015:
Derivatives not accounted for as hedging instruments | ||||||||||||||||||||||||
Commodity Contracts | Credit Contracts | Equity Contracts | Foreign Exchange Contracts | Interest Rate Contracts | Total | |||||||||||||||||||
Financial Derivative Instruments - Assets | ||||||||||||||||||||||||
Over the counter | ||||||||||||||||||||||||
Forward Foreign Currency Contracts | $ | 0 | $ | 0 | $ | 0 | $ | 1 | $ | 0 | $ | 1 | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Financial Derivative Instruments - Liabilities | ||||||||||||||||||||||||
Over the counter | ||||||||||||||||||||||||
Forward Foreign Currency Contracts | $ | 0 | $ | 0 | $ | 0 | $ | 1 | $ | 0 | $ | 1 | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
The Effect of Financial Derivative Instruments on the Statements of Operations for the period ended June 30, 2015:
Derivatives not accounted for as hedging instruments | ||||||||||||||||||||||||
Commodity Contracts | Credit Contracts | Equity Contracts | Foreign Exchange Contracts | Interest Rate Contracts | Total | |||||||||||||||||||
Net Realized Gain on Financial Derivative Instruments | ||||||||||||||||||||||||
Over the counter | ||||||||||||||||||||||||
Forward Foreign Currency Contracts | $ | 0 | $ | 0 | $ | 0 | $ | 7 | $ | 0 | $ | 7 | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
FAIR VALUE MEASUREMENTS
The following is a summary of the fair valuations according to the inputs used as of June 30, 2015 in valuing the Fund’s assets and liabilities:
Category and Subcategory | Level 1 | Level 2 | Level 3 | Fair Value at 06/30/2015 | ||||||||||||
Investments in Securities, at Value | ||||||||||||||||
Common Stocks | ||||||||||||||||
Australia | ||||||||||||||||
Consumer Discretionary | $ | 0 | $ | 122 | $ | 0 | $ | 122 | ||||||||
Consumer Staples | 0 | 77 | 0 | 77 | ||||||||||||
Health Care | 0 | 166 | 0 | 166 | ||||||||||||
Industrials | 0 | 282 | 0 | 282 | ||||||||||||
Materials | 0 | 152 | 0 | 152 | ||||||||||||
Bermuda | ||||||||||||||||
Industrials | 246 | 0 | 0 | 246 | ||||||||||||
Brazil | ||||||||||||||||
Industrials | 115 | 0 | 0 | 115 | ||||||||||||
Utilities | 195 | 0 | 0 | 195 | ||||||||||||
Canada | ||||||||||||||||
Utilities | 194 | 0 | 0 | 194 | ||||||||||||
China | ||||||||||||||||
Consumer Discretionary | 0 | 0 | 95 | 95 | ||||||||||||
Consumer Staples | 0 | 161 | 0 | 161 | ||||||||||||
Cyprus | ||||||||||||||||
Energy | 0 | 42 | 0 | 42 | ||||||||||||
France | ||||||||||||||||
Consumer Staples | 0 | 120 | 0 | 120 | ||||||||||||
Utilities | 0 | 476 | 0 | 476 | ||||||||||||
Germany | ||||||||||||||||
Utilities | 0 | 161 | 0 | 161 | ||||||||||||
Greece | ||||||||||||||||
Consumer Discretionary | 0 | 82 | 0 | 82 | ||||||||||||
Hong Kong | ||||||||||||||||
Consumer Discretionary | 0 | 236 | 0 | 236 | ||||||||||||
Telecommunication Services | 0 | 246 | 0 | 246 | ||||||||||||
Israel | ||||||||||||||||
Health Care | 167 | 0 | 0 | 167 | ||||||||||||
Italy | ||||||||||||||||
Financials | 0 | 248 | 0 | 248 | ||||||||||||
Industrials | 0 | 118 | 0 | 118 |
Category and Subcategory | Level 1 | Level 2 | Level 3 | Fair Value at 06/30/2015 | ||||||||||||
Japan | ||||||||||||||||
Consumer Discretionary | $ | 0 | $ | 155 | $ | 0 | $ | 155 | ||||||||
Consumer Staples | 0 | 171 | 0 | 171 | ||||||||||||
Telecommunication Services | 0 | 210 | 0 | 210 | ||||||||||||
Luxembourg | ||||||||||||||||
Financials | 0 | 125 | 0 | 125 | ||||||||||||
Mexico | ||||||||||||||||
Consumer Staples | 79 | 0 | 0 | 79 | ||||||||||||
Materials | 38 | 0 | 0 | 38 | ||||||||||||
Netherlands | ||||||||||||||||
Financials | 0 | 291 | 0 | 291 | ||||||||||||
Singapore | ||||||||||||||||
Industrials | 0 | 54 | 0 | 54 | ||||||||||||
South Africa | ||||||||||||||||
Telecommunication Services | 0 | 218 | 0 | 218 | ||||||||||||
Spain | ||||||||||||||||
Consumer Staples | 0 | 118 | 0 | 118 | ||||||||||||
Switzerland | ||||||||||||||||
Health Care | 0 | 163 | 0 | 163 | ||||||||||||
Taiwan | ||||||||||||||||
Information Technology | 0 | 215 | 0 | 215 | ||||||||||||
Thailand | ||||||||||||||||
Telecommunication Services | 0 | 123 | 0 | 123 | ||||||||||||
Turkey | ||||||||||||||||
Industrials | 0 | 128 | 0 | 128 | ||||||||||||
United Kingdom | ||||||||||||||||
Consumer Staples | 0 | 324 | 0 | 324 | ||||||||||||
Financials | 0 | 816 | 0 | 816 | ||||||||||||
Telecommunication Services | 0 | 325 | 0 | 325 | ||||||||||||
United States | ||||||||||||||||
Consumer Discretionary | 120 | 0 | 0 | 120 | ||||||||||||
Health Care | 282 | 0 | 0 | 282 | ||||||||||||
Information Technology | 279 | 0 | 0 | 279 | ||||||||||||
$ | 1,715 | $ | 6,125 | $ | 95 | $ | 7,935 |
See Accompanying Notes | ANNUAL REPORT | JUNE 30, 2015 | 73 |
Table of Contents
Schedule of Investments PIMCO International Dividend Fund (Cont.)
June 30, 2015
Category and Subcategory | Level 1 | Level 2 | Level 3 | Fair Value at 06/30/2015 | ||||||||||||
Investments in Affiliates, at Value |
| |||||||||||||||
Short Term Instruments | ||||||||||||||||
Central Funds Used for Cash Management Purposes | $ | 110 | $ | 0 | $ | 0 | $ | 110 | ||||||||
Total Investments | $ | 1,825 | $ | 6,125 | $ | 95 | $ | 8,045 |
Category and Subcategory | Level 1 | Level 2 | Level 3 | Fair Value at 06/30/2015 | ||||||||||||
Financial Derivative Instruments - Assets |
| |||||||||||||||
Over the counter | $ | 0 | $ | 1 | $ | 0 | $ | 1 | ||||||||
Financial Derivative Instruments - Liabilities |
| |||||||||||||||
Over the counter | $ | 0 | $ | (1 | ) | $ | 0 | $ | (1 | ) | ||||||
Totals | $ | 1,825 | $ | 6,125 | $ | 95 | $ | 8,045 |
There were no significant transfers between Levels 1 and 2 during the period ended June 30, 2015.
The following is a reconciliation of the fair valuations using significant unobservable inputs (Level 3) for the Fund during the period ended June 30, 2015:
Category and Subcategory | Beginning Balance at 06/30/2014 | Net Purchases | Net Sales | Accrued Discounts/ (Premiums) | Realized Gain/(Loss) | Net Change in Unrealized Appreciation/ (Depreciation) (1) | Transfers into Level 3 | Transfers out of Level 3 | Ending Balance at 06/30/2015 | Net Change in Unrealized Appreciation/ (Depreciation) on Investments Held at 06/30/2015 (1) | ||||||||||||||||||||||||||||||
Investments in Securities, at Value |
| |||||||||||||||||||||||||||||||||||||||
Common Stocks | ||||||||||||||||||||||||||||||||||||||||
China | ||||||||||||||||||||||||||||||||||||||||
Consumer Discretionary | $ | 0 | $ | 155 | $ | (36 | ) | $ | 0 | $ | (4 | ) | $ | (20 | ) | $ | 0 | $ | 0 | $ | 95 | $ | (20 | ) |
The following is a summary of significant unobservable inputs used in the fair valuations of assets and liabilities categorized within Level 3 of the fair value hierarchy:
Category and Subcategory | Ending Balance at 06/30/2015 | Valuation Technique | Unobservable Inputs | Input Value(s) (% Unless Noted Otherwise) | ||||||||
Investments in Securities, at Value | ||||||||||||
Common Stocks | ||||||||||||
China | ||||||||||||
Consumer Discretionary | $ | 95 | Other Valuation Techniques | Market Comparable Valuation | 97.22 | |||||||
|
|
(1) | Any difference between Net Change in Unrealized Appreciation/(Depreciation) and Net Change in Unrealized Appreciation/(Depreciation) on Investments Held at June 30, 2015 may be due to an investment no longer held or categorized as Level 3 at period end. |
74 | PIMCO EQUITY SERIES | See Accompanying Notes |
Table of Contents
Schedule of Investments PIMCO U.S. Dividend Fund
June 30, 2015
SHARES | MARKET VALUE (000S) | |||||||||||
INVESTMENTS IN SECURITIES 97.5% | ||||||||||||
COMMON STOCKS 90.0% | ||||||||||||
BERMUDA 2.8% | ||||||||||||
INDUSTRIALS 2.8% | ||||||||||||
Golar LNG Partners LP | 6,273 | $ | 155 | |||||||||
|
| |||||||||||
Total Bermuda | 155 | |||||||||||
|
| |||||||||||
CANADA 1.4% | ||||||||||||
UTILITIES 1.4% | ||||||||||||
Capital Power Corp. | 4,584 | 79 | ||||||||||
|
| |||||||||||
Total Canada | 79 | |||||||||||
|
| |||||||||||
SWITZERLAND 2.9% | ||||||||||||
HEALTH CARE 2.9% | ||||||||||||
Roche Holding AG | 583 | 164 | ||||||||||
|
| |||||||||||
Total Switzerland | 164 | |||||||||||
|
| |||||||||||
UNITED STATES 82.9% | ||||||||||||
CONSUMER DISCRETIONARY 12.7% | ||||||||||||
General Motors Co. | 4,918 | 164 | ||||||||||
Kohl’s Corp. | 2,626 | 164 | ||||||||||
Nielsen NV | 5,805 | 260 | ||||||||||
Time Warner, Inc. | 1,356 | 119 | ||||||||||
|
| |||||||||||
707 | ||||||||||||
|
| |||||||||||
ENERGY 3.0% | ||||||||||||
Targa Resources Corp. | 1,855 | 165 | ||||||||||
|
| |||||||||||
FINANCIALS 15.5% | ||||||||||||
Blackstone Group LP | 2,686 | 110 | ||||||||||
JPMorgan Chase & Co. | 3,547 | 240 | ||||||||||
Navient Corp. | 8,986 | 164 |
SHARES | MARKET VALUE (000S) | |||||||||||
Prudential Financial, Inc. | 2,703 | $ | 237 | |||||||||
Regions Financial Corp. | 11,031 | 114 | ||||||||||
|
| |||||||||||
865 | ||||||||||||
|
| |||||||||||
HEALTH CARE 10.1% | ||||||||||||
AbbVie, Inc. | 1,733 | 116 | ||||||||||
Merck & Co., Inc. | 3,890 | 222 | ||||||||||
Pfizer, Inc. | 6,721 | 225 | ||||||||||
|
| |||||||||||
563 | ||||||||||||
|
| |||||||||||
INDUSTRIALS 4.3% | ||||||||||||
RR Donnelley & Sons Co. | 9,219 | 161 | ||||||||||
Timken Co. | 2,217 | 81 | ||||||||||
|
| |||||||||||
242 | ||||||||||||
|
| |||||||||||
INFORMATION TECHNOLOGY 17.2% | ||||||||||||
Cisco Systems, Inc. | 6,930 | 190 | ||||||||||
NetApp, Inc. | 3,476 | 110 | ||||||||||
QUALCOMM, Inc. | 4,177 | 261 | ||||||||||
Symantec Corp. | 9,708 | 226 | ||||||||||
Western Digital Corp. | 2,204 | 173 | ||||||||||
|
| |||||||||||
960 | ||||||||||||
|
| |||||||||||
MATERIALS 10.3% | ||||||||||||
Dow Chemical Co. | 3,346 | 171 | ||||||||||
International Paper Co. | 2,202 | 105 | ||||||||||
Mosaic Co. | 1,925 | 90 | ||||||||||
Steel Dynamics, Inc. | 5,327 | 110 | ||||||||||
Tronox Ltd. ‘A’ | 6,810 | 100 | ||||||||||
|
| |||||||||||
576 | ||||||||||||
|
| |||||||||||
TELECOMMUNICATION SERVICES 5.0% | ||||||||||||
AT&T, Inc. | 7,845 | 279 | ||||||||||
|
|
SHARES | MARKET VALUE (000S) | |||||||||||
UTILITIES 4.8% | ||||||||||||
ONE Gas, Inc. | 1,382 | $ | 59 | |||||||||
PG&E Corp. | 4,272 | 209 | ||||||||||
|
| |||||||||||
268 | ||||||||||||
|
| |||||||||||
Total United States | 4,625 | |||||||||||
|
| |||||||||||
Total Common Stocks (Cost $5,101) | 5,023 | |||||||||||
|
| |||||||||||
REAL ESTATE INVESTMENT TRUSTS 7.5% | ||||||||||||
UNITED STATES 7.5% | ||||||||||||
FINANCIALS 7.5% | ||||||||||||
Colony Capital, Inc. | 11,465 | 259 | ||||||||||
Outfront Media, Inc. | 6,252 | 158 | ||||||||||
|
| |||||||||||
417 | ||||||||||||
|
| |||||||||||
Total Real Estate Investment Trusts | 417 | |||||||||||
|
| |||||||||||
Total Investments in Securities (Cost $5,557) | 5,440 | |||||||||||
|
| |||||||||||
INVESTMENTS IN AFFILIATES 0.2% | ||||||||||||
SHORT TERM INSTRUMENTS 0.2% | ||||||||||||
CENTRAL FUNDS USED FOR CASH MANAGEMENT PURPOSES 0.2% | ||||||||||||
PIMCO Short-Term Floating NAV Portfolio III | 1,014 | 10 | ||||||||||
|
| |||||||||||
Total Short Term Instruments (Cost $10) | 10 | |||||||||||
|
| |||||||||||
Total Investments in Affiliates (Cost $10) | 10 | |||||||||||
Total Investments 97.7% (Cost $5,567) | $ | 5,450 | ||||||||||
Other Assets and Liabilities, net 2.3% | 126 | |||||||||||
|
| |||||||||||
Net Assets 100.0% | $ | 5,576 | ||||||||||
|
|
NOTES TO SCHEDULE OF INVESTMENTS (AMOUNTS IN THOUSANDS*):
* | A zero balance may reflect actual amounts rounding to less than one thousand. |
FAIR VALUE OF FINANCIAL DERIVATIVE INSTRUMENTS
The following is a summary of the fair valuation of the Fund’s derivative instruments categorized by risk exposure. See Note 7, Principal Risks, in the Notes to Financial Statements on risks of the Fund.
The Effect of Financial Derivative Instruments on the Consolidated Statements of Operations for the period ended June 30, 2015:
Derivatives not accounted for as hedging instruments | ||||||||||||||||||||||||
Commodity Contracts | Credit Contracts | Equity Contracts | Foreign Exchange Contracts | Interest Rate Contracts | Total | |||||||||||||||||||
Net Realized Gain on Financial Derivative Instruments | ||||||||||||||||||||||||
Over the counter | ||||||||||||||||||||||||
Forward Foreign Currency Contracts | $ | 0 | $ | 0 | $ | 0 | $ | 1 | $ | 0 | $ | 1 | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
See Accompanying Notes | ANNUAL REPORT | JUNE 30, 2015 | 75 |
Table of Contents
Schedule of Investments PIMCO U.S. Dividend Fund (Cont.)
June 30, 2015
FAIR VALUE MEASUREMENTS
The following is a summary of the fair valuations according to the inputs used as of June 30, 2015 in valuing the Fund’s assets and liabilities:
Category and Subcategory | Level 1 | Level 2 | Level 3 | Fair Value at 06/30/2015 | ||||||||||||
Investments in Securities, at Value |
| |||||||||||||||
Common Stocks | ||||||||||||||||
Bermuda | ||||||||||||||||
Industrials | $ | 155 | $ | 0 | $ | 0 | $ | 155 | ||||||||
Canada | ||||||||||||||||
Utilities | 79 | 0 | 0 | 79 | ||||||||||||
Switzerland | ||||||||||||||||
Health Care | 0 | 164 | 0 | 164 | ||||||||||||
United States | ||||||||||||||||
Consumer Discretionary | 707 | 0 | 0 | 707 | ||||||||||||
Energy | 165 | 0 | 0 | 165 | ||||||||||||
Financials | 865 | 0 | 0 | 865 | ||||||||||||
Health Care | 563 | 0 | 0 | 563 | ||||||||||||
Industrials | 242 | 0 | 0 | 242 | ||||||||||||
Information Technology | 960 | 0 | 0 | 960 |
Category and Subcategory | Level 1 | Level 2 | Level 3 | Fair Value at 06/30/2015 | ||||||||||||
Materials | $ | 576 | $ | 0 | $ | 0 | $ | 576 | ||||||||
Telecommunication Services | 279 | 0 | 0 | 279 | ||||||||||||
Utilities | 268 | 0 | 0 | 268 | ||||||||||||
Real Estate Investment Trusts | ||||||||||||||||
United States | ||||||||||||||||
Financials | 417 | 0 | 0 | 417 | ||||||||||||
$ | 5,276 | $ | 164 | $ | 0 | $ | 5,440 | |||||||||
Investments in Affiliates, at Value | ||||||||||||||||
Short Term Instruments | ||||||||||||||||
Central Funds Used for Cash Management Purposes | 10 | 0 | 0 | 10 | ||||||||||||
Total Investments | $ | 5,286 | $ | 164 | $ | 0 | $ | 5,450 |
There were no significant transfers between Levels 1, 2, or 3 during the period ended June 30, 2015.
76 | PIMCO EQUITY SERIES | See Accompanying Notes |
Table of Contents
Consolidated Schedule of Investments PIMCO EqS Pathfinder Fund®
June 30, 2015
MARKET (000S) | ||||||||||||
INVESTMENTS IN SECURITIES 6.7% | ||||||||||||
SHORT-TERM INSTRUMENTS 6.7% | ||||||||||||
REPURCHASE AGREEMENTS (b) 2.5% | ||||||||||||
$ | 2,317 | |||||||||||
|
| |||||||||||
PRINCIPAL AMOUNT (000S) | ||||||||||||
U.S. TREASURY BILLS 4.2% | ||||||||||||
0.014% due 07/23/2015 - 10/15/2015 (a)(d)(f) | $ | 3,947 | 3,947 | |||||||||
|
| |||||||||||
Total Short-Term Instruments (Cost $6,264) | 6,264 | |||||||||||
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| |||||||||||
Total Investments in Securities (Cost $6,264) | 6,264 | |||||||||||
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SHARES | MARKET (000S) | |||||||||||
INVESTMENTS IN AFFILIATES 91.9% | ||||||||||||
SHORT TERM INSTRUMENTS 91.9% | ||||||||||||
CENTRAL FUNDS USED FOR CASH MANAGEMENT PURPOSES 91.9% | ||||||||||||
PIMCO Short-Term | 8,665,168 | $ | 85,941 | |||||||||
|
| |||||||||||
Total Short Term Instruments (Cost $85,950) | 85,941 | |||||||||||
|
| |||||||||||
Total Investments in Affiliates (Cost $85,950) | 85,941 | |||||||||||
Total Investments 98.6% (Cost $92,214) | $ | 92,205 | ||||||||||
Financial Derivative (Cost or Premiums, net $0) | 130 | |||||||||||
Other Assets and Liabilities, net 1.3% | 1,220 | |||||||||||
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| |||||||||||
Net Assets 100.0% | $ | 93,555 | ||||||||||
|
|
NOTES TO CONSOLIDATED SCHEDULE OF INVESTMENTS (AMOUNTS IN THOUSANDS*, EXCEPT NUMBER OF CONTRACTS):
* | A zero balance may reflect actual amounts rounding to less than one thousand. |
(a) | Coupon represents a weighted average yield to maturity. |
BORROWINGS AND OTHER FINANCING TRANSACTIONS
(b) REPURCHASE AGREEMENTS:
Counterparty | Lending Rate | Settlement Date | Maturity Date | Principal Amount | Collateralized By | Collateral Received, at Value | Repurchase Agreements, at Value | Repurchase Agreement Proceeds to be Received (1) | ||||||||||||||||||||
SSB | 0.000% | 06/30/2015 | 07/01/2015 | $ | 2,317 | Fannie Mae 2.260% due 10/17/2022 | $ | (2,365 | ) | $ | 2,317 | $ | 2,317 | |||||||||||||||
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Total Repurchase Agreements |
| $ | (2,365 | ) | $ | 2,317 | $ | 2,317 | ||||||||||||||||||||
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|
|
(1) | Includes accrued interest. |
BORROWINGS AND OTHER FINANCING TRANSACTIONS SUMMARY
The following is a summary by counterparty of the market value of Borrowings and Other Financing Transactions and collateral (received)/pledged as of June 30, 2015:
Counterparty | Repurchase Agreement Proceeds to be Received | Payable for Reverse Repurchase Agreements | Payable for Sale-Buyback Transactions | Payable for Short Sales | Total Borrowings and Other Financing Transactions | Collateral (Received) /Pledged | Net Exposure (2) | |||||||||||||||||||||
Global/Master Repurchase Agreement | ||||||||||||||||||||||||||||
SSB | $ | 2,317 | $ | 0 | $ | 0 | $ | 0 | $ | 2,317 | $ | (2,365 | ) | $ | (48 | ) | ||||||||||||
Prime Brokerage Agreement | ||||||||||||||||||||||||||||
GSC | 0 | 0 | 0 | 0 | 0 | 14 | 14 | |||||||||||||||||||||
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| |||||||||||||||||||||
Total Borrowings and Other Financing Transactions | $ | 2,317 | $ | 0 | $ | 0 | $ | 0 | ||||||||||||||||||||
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(2) | Net Exposure represents the net receivable/(payable) that would be due from/to the counterparty in the event of default. Exposure from borrowings and other financing transactions can only be netted across transactions governed under the same master agreement with the same legal entity. The Fund and Subsidiary are recognized as two separate legal entities. As such, exposure cannot be netted. See Note 7, Principal Risks, in the Notes to Financial Statements for more information regarding master netting arrangements. |
See Accompanying Notes | ANNUAL REPORT | JUNE 30, 2015 | 77 |
Table of Contents
Consolidated Schedule of Investments PIMCO EqS Pathfinder Fund® (Cont.)
(c) FINANCIAL DERIVATIVE INSTRUMENTS: EXCHANGE-TRADED OR CENTRALLY CLEARED
FUTURES CONTRACTS:
Description | Type | Expiration Month | # of Contracts | Unrealized (Depreciation) | Variation Margin | |||||||||||||||||
Asset | Liability | |||||||||||||||||||||
E-mini S&P 500 Index September Futures | Long | 09/2015 | 669 | $ | (843 | ) | $ | 130 | $ | 0 | ||||||||||||
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Total Futures Contracts | $ | (843 | ) | $ | 130 | $ | 0 | |||||||||||||||
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FINANCIAL DERIVATIVE INSTRUMENTS: EXCHANGE-TRADED OR CENTRALLY CLEARED SUMMARY
The following is a summary of the market value and variation margin of Exchange-Traded or Centrally Cleared Financial Derivative Instruments as of June 30, 2015:
(d) | Securities with an aggregate market value of $119 and cash of ($105) have been pledged as collateral as of June 30, 2015 for equity short sales and equity options as governed by prime brokerage agreements and agreements governing listed equity option transactions. |
Cash of $3,177 has been pledged as collateral for exchange-traded and centrally cleared financial derivative instruments as of June 30, 2015.
Financial Derivative Assets | Financial Derivative Liabilities | |||||||||||||||||||||||||||||||||
Market Value | Variation Margin Asset | Market Value | Variation Margin Liability | |||||||||||||||||||||||||||||||
Purchased Options | Futures | Swap Agreements | Total | Written Options | Futures | Swap Agreements | Total | |||||||||||||||||||||||||||
Total Exchange-Traded or Centrally Cleared (1) | $ | 0 | $ | 130 | $ | 0 | $ | 130 | $ | 0 | $ | 0 | $ | 0 | $ | 0 | ||||||||||||||||||
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(1) | The Fund and Subsidiary are recognized as two separate legal entities. As such, exposure cannot be netted. See Note 7, Principal Risks, in the Notes to Financial Statements for more information regarding master netting arrangements. |
(e) FINANCIAL DERIVATIVE INSTRUMENTS: OVER THE COUNTER
WRITTEN OPTIONS:
AS OF JUNE 30, 2015, THERE WERE NO OPEN WRITTEN OPTIONS. TRANSACTIONS IN WRITTEN CALL AND PUT OPTIONS FOR THE PERIOD ENDED JUNE 30, 2015:
# of Contracts | Notional Amount | Premiums | ||||||||||
Balance at Beginning of Period | 0 | $ | 0 | $ | 0 | |||||||
Sales | 16,837 | 7,213 | (3,853 | ) | ||||||||
Closing Buys | (15,976 | ) | (7,213 | ) | 3,672 | |||||||
Expirations | (438 | ) | 0 | 95 | ||||||||
Exercised | (423 | ) | 0 | 86 | ||||||||
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| |||||||
Balance at End of Period | 0 | $ | 0 | $ | 0 | |||||||
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FINANCIAL DERIVATIVE INSTRUMENTS: OVER THE COUNTER SUMMARY
The following is a summary by counterparty of the market value of OTC financial derivative instruments and collateral (received)/pledged as of June 30, 2015:
(f) | Securities with an aggregate market value of $3,828 have been pledged as collateral for financial derivative instruments as governed by International Swaps and Derivatives Association, Inc. master agreements as of June 30, 2015. |
Financial Derivative Assets | Financial Derivative Liabilities | |||||||||||||||||||||||||||||||||||||||||||||
Counterparty | Forward Foreign Currency Contracts | Purchased Options | Swap Agreements | Total Over the Counter | Forward Foreign Currency Contracts | Written Options | Swap Agreements | Total Over the Counter | Net Market Value of OTC Derivatives | Collateral (Received)/ Pledged | Net Exposure (1) | |||||||||||||||||||||||||||||||||||
BPS | $ | 0 | $ | 0 | $ | 0 | $ | 0 | $ | 0 | $ | 0 | $ | 0 | $ | 0 | $ | 0 | $ | 686 | $ | 686 | ||||||||||||||||||||||||
DUB | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | (1,480 | ) | (1,480 | ) | |||||||||||||||||||||||||||||||||
GLM | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 1 | 1 | |||||||||||||||||||||||||||||||||||
HUS | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 131 | 131 | |||||||||||||||||||||||||||||||||||
JPM | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 184 | 184 | |||||||||||||||||||||||||||||||||||
MSB | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 2,174 | 2,174 | |||||||||||||||||||||||||||||||||||
UAG | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 652 | 652 | |||||||||||||||||||||||||||||||||||
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Total Over the Counter | $ | 0 | $ | 0 | $ | 0 | $ | 0 | $ | 0 | $ | 0 | $ | 0 | $ | 0 | ||||||||||||||||||||||||||||||
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(1) | Net Exposure represents the net receivable/(payable) that would be due from/to the counterparty in the event of default. Exposure from OTC financial derivative instruments can only be netted across transactions governed under the same master agreement with the same legal entity. See Note 7, Principal Risks, in the Notes to Financial Statements for more information regarding master netting arrangements. |
78 | PIMCO EQUITY SERIES | See Accompanying Notes |
Table of Contents
June 30, 2015
FAIR VALUE OF FINANCIAL DERIVATIVE INSTRUMENTS
The following is a summary of the fair valuation of the Fund’s derivative instruments categorized by risk exposure. See Note 7, Principal Risks, in the Notes to Financial Statements on risks of the Fund.
Fair Values of Financial Derivative Instruments on the Consolidated Statements of Assets and Liabilities as of June 30, 2015:
Derivatives not accounted for as hedging instruments | ||||||||||||||||||||||||
Commodity Contracts | Credit Contracts | Equity Contracts | Foreign Exchange Contracts | Interest Rate Contracts | Total | |||||||||||||||||||
Financial Derivative Instruments - Assets | ||||||||||||||||||||||||
Exchange-traded or centrally cleared | ||||||||||||||||||||||||
Futures | $ | 0 | $ | 0 | $ | 130 | $ | 0 | $ | 0 | $ | 130 | ||||||||||||
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The Effect of Financial Derivative Instruments on the Consolidated Statements of Operations for the period ended June 30, 2015:
Derivatives not accounted for as hedging instruments | ||||||||||||||||||||||||
Commodity Contracts | Credit Contracts | Equity Contracts | Foreign Exchange Contracts | Interest Rate Contracts | Total | |||||||||||||||||||
Net Realized Gain (Loss) on Financial Derivative Instruments | ||||||||||||||||||||||||
Exchange-traded or centrally cleared | ||||||||||||||||||||||||
Purchased Options | $ | 0 | $ | 0 | $ | (304 | ) | $ | 0 | $ | 0 | $ | (304 | ) | ||||||||||
Written Options | 0 | 0 | (484 | ) | 0 | 0 | (484 | ) | ||||||||||||||||
Futures | 0 | 0 | 1,291 | 0 | 0 | 1,291 | ||||||||||||||||||
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$ | 0 | $ | 0 | $ | 503 | $ | 0 | $ | 0 | $ | 503 | |||||||||||||
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Over the counter | ||||||||||||||||||||||||
Forward Foreign Currency Contracts | $ | 0 | $ | 0 | $ | 0 | $ | 26,586 | $ | 0 | $ | 26,586 | ||||||||||||
Written Options | 0 | 0 | (68 | ) | 0 | 0 | (68 | ) | ||||||||||||||||
Swap Agreements | 0 | 0 | 3,989 | 0 | 0 | 3,989 | ||||||||||||||||||
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$ | 0 | $ | 0 | $ | 3,921 | $ | 26,586 | $ | 0 | $ | 30,507 | |||||||||||||
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$ | 0 | $ | 0 | $ | 4,424 | $ | 26,586 | $ | 0 | $ | 31,010 | |||||||||||||
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Net Change in Unrealized (Depreciation) on Financial Derivative Instruments |
| |||||||||||||||||||||||
Exchange-traded or centrally cleared | ||||||||||||||||||||||||
Futures | $ | 0 | $ | 0 | $ | (843 | ) | $ | 0 | $ | 0 | $ | (843 | ) | ||||||||||
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| |||||||||||||
Over the counter | ||||||||||||||||||||||||
Forward Foreign Currency Contracts | $ | 0 | $ | 0 | $ | 0 | $ | (4,520 | ) | $ | 0 | $ | (4,520 | ) | ||||||||||
Swap Agreements | 0 | 0 | (418 | ) | 0 | 0 | (418 | ) | ||||||||||||||||
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|
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| |||||||||||||
$ | 0 | $ | 0 | $ | (418 | ) | $ | (4,520 | ) | $ | 0 | $ | (4,938 | ) | ||||||||||
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| |||||||||||||
$ | 0 | $ | 0 | $ | (1,261 | ) | $ | (4,520 | ) | $ | 0 | $ | (5,781 | ) | ||||||||||
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FAIR VALUE MEASUREMENTS
The following is a summary of the fair valuations according to the inputs used as of June 30, 2015 in valuing the Fund’s assets and liabilities:
Category and Subcategory | Level 1 | Level 2 | Level 3 | Fair Value at 06/30/2015 | ||||||||||||
Investments in Securities, at Value | ||||||||||||||||
Short-Term Instruments | ||||||||||||||||
Repurchase Agreements | $ | 0 | $ | 2,317 | $ | 0 | $ | 2,317 | ||||||||
U.S. Treasury Bills | 0 | 3,947 | 0 | 3,947 | ||||||||||||
$ | 0 | $ | 6,264 | $ | 0 | $ | 6,264 | |||||||||
Investments in Affiliates, at Value | ||||||||||||||||
Short Term Instruments | ||||||||||||||||
Central Funds Used for Cash Management Purposes | 85,941 | 0 | 0 | 85,941 | ||||||||||||
Total Investments | $ | 85,941 | $ | 6,264 | $ | 0 | $ | 92,205 |
Category and Subcategory | Level 1 | Level 2 | Level 3 | Fair Value at 06/30/2015 | ||||||||||||
Financial Derivative Instruments - Assets |
| |||||||||||||||
Exchange-traded or centrally cleared | $ | 130 | $ | 0 | $ | 0 | $ | 130 | ||||||||
Totals | $ | 86,071 | $ | 6,264 | $ | 0 | $ | 92,335 |
There were no significant transfers between Levels 1, 2, or 3 during the period ended June 30, 2015.
See Accompanying Notes | ANNUAL REPORT | JUNE 30, 2015 | 79 |
Table of Contents
1. ORGANIZATION
PIMCO Equity Series (the “Trust”) was established as a Delaware statutory trust on December 28, 2009. The Trust is registered under the Investment Company Act of 1940, as amended (the “Act”), as an open-end management investment company. Information presented in these financial statements pertains to the Institutional Class, Class P, Administrative Class, Class D, Class A, Class C and Class R shares of the funds (each a “Fund” and collectively the “Funds”) indicated on the cover of this report. Pacific Investment Management Company LLC (“PIMCO”) serves as the investment adviser (the “Adviser”) for the Funds.
2. SIGNIFICANT ACCOUNTING POLICIES
The following is a summary of significant accounting policies consistently followed by the Trust in the preparation of its financial statements in conformity with accounting principles generally accepted in the United States of America (“U.S. GAAP”). Each Fund is treated as an investment company under the reporting requirements of U.S. GAAP. The preparation of financial statements in accordance with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of increases and decreases in net assets from operations during the reporting period. Actual results could differ from those estimates.
(a) Securities Transactions and Investment Income Securities transactions are recorded as of the trade date for financial reporting purposes. Securities purchased or sold on a when-issued or delayed-delivery basis may be settled 15 days or more after the trade date. Realized gains and losses from securities sold are recorded on the identified cost basis. Dividend income is recorded on the ex-dividend date, except certain dividends from foreign securities where the ex-dividend date may have passed, which are recorded as soon as the Fund is informed of the ex-dividend date. Interest income, adjusted for the accretion of discounts and amortization of premiums, is recorded on the accrual basis from settlement date. For convertible securities, premiums attributable to the conversion feature are not amortized. Estimated tax liabilities on certain foreign securities are recorded on an accrual basis and are reflected as components of interest income or net change in unrealized appreciation/depreciation on investments on the Statements of Operations, as appropriate. Tax liabilities realized as a result of such security sales are reflected as a component of net realized gain/loss on investments on the Statements of Operations. Income or short-term capital gain distributions received from underlying funds are recorded as dividend income. Long-term capital gain distributions received from underlying funds are recorded as realized gains.
Debt obligations may be placed on non-accrual status and related interest income may be reduced by ceasing current accruals and writing off interest receivable when the collection of all or a portion of interest has become doubtful based on consistently applied procedures. A debt obligation is removed from non-accrual status when the issuer resumes interest payments or when collectability of interest is probable.
(b) Cash and Foreign Currency The functional and reporting currency for the Funds is the U.S. dollar. The market values of foreign securities, currency holdings and other assets and liabilities are translated into U.S. dollars based on the current exchange rates each business day. Purchases and sales of securities and income and expense items denominated in foreign currencies, if any, are translated into U.S. dollars at the exchange rate in effect on the transaction date. The Funds do not separately report the effects of changes in foreign exchange rates from changes in market prices on securities held. Such changes are included in net realized and net changes in unrealized gain or loss from investments on the Statements of Operations. The Funds may invest in foreign currency-denominated securities and may engage in foreign currency transactions either on a spot (cash) basis at the rate prevailing in the currency exchange market at the time or through a forward foreign currency contract (see financial derivative instruments). Realized foreign exchange gains or losses arising from sales of spot foreign currencies, currency gains or losses realized between the trade and settlement dates on securities transactions and the difference between the recorded amounts of dividends, interest, and foreign withholding taxes and the U.S. dollar equivalent of the amounts actually received or paid are included in net realized gain or loss on foreign currency transactions on the Statements of Operations. Net unrealized foreign exchange gains and losses arising from changes in foreign exchange rates on foreign denominated assets and liabilities other than investments in securities held at the end of the reporting period are included in net change in unrealized appreciation or depreciation on foreign currency assets and liabilities on the Statements of Operations.
(c) Multiclass Operations Each class offered by the Trust has equal rights as to assets and voting privileges (except that shareholders of a class have exclusive voting rights regarding any matter relating solely to that class of shares). Income and non-class specific expenses are allocated daily to each class on the basis of the relative value of settled shares. Realized and unrealized capital gains and losses are allocated daily based on the relative net assets of each class of the Fund. Class specific expenses, where applicable, currently include supervisory and administrative and distribution and servicing fees.
(d) Dividends and Distributions to Shareholders Dividends from net investment income, if any, of each Fund, except the PIMCO Balanced Income Fund, PIMCO Dividend and Income Builder Fund and PIMCO
80 | PIMCO EQUITY SERIES |
Table of Contents
June 30, 2015
Global Dividend Fund, are declared and distributed to shareholders annually. Dividends from net investment income, if any, of the PIMCO Balanced Income Fund, PIMCO Dividend and Income Builder Fund and PIMCO Global Dividend Fund are declared daily and distributed to shareholders quarterly. Net realized capital gains earned by each Fund, if any, will be distributed no less frequently than once each year.
Income dividends and capital gain distributions are determined in accordance with income tax regulations which may differ from U.S. GAAP. Differences between tax regulations and U.S. GAAP may cause timing differences between income and capital gain recognition. Examples of events that give rise to timing differences include wash sales, straddles and capital loss carryforwards. Further, the character of investment income and capital gains may be different for certain transactions under the two methods of accounting. Examples of characterization differences include the treatment of paydowns on mortgage-backed securities, swaps, foreign currency transactions and contingent debt instruments. As a result, income dividends and capital gain distributions declared during a fiscal period may differ significantly from the net investment income (loss) and realized gains (losses) reported on each Fund’s annual financial statements presented under U.S. GAAP.
Distributions classified as a tax basis return of capital, if any, are reflected on the accompanying Statements of Changes in Net Assets and have been recorded to paid in capital. In addition, other amounts have been reclassified between undistributed (overdistributed) net investment income (loss), accumulated undistributed/(overdistributed) net realized gains (losses) and/or paid in capital to more appropriately conform financial accounting to tax characterizations of dividend distributions.
(e) Statements of Cash Flows U.S. GAAP requires entities providing financial statements that report both financial position and results of operations to also provide a statement of cash flows for each period for which results of operations are provided, but exempts investment companies meeting certain conditions. One of the conditions is that substantially all of the enterprise’s investments were carried at fair value during the period and classified as Level 1 or Level 2 in the fair value hierarchy in accordance with the requirements of U.S. GAAP. Another condition is that the enterprise had little or no debt, based on the average debt outstanding during the period, in relation to average total assets. Funds with certain degrees of borrowing activity, typically through the use of reverse repurchase agreements, sale-buyback transactions, or a line of credit, have been determined to be at a level requiring a Statement of Cash Flows. Statements of Cash Flows, as applicable, have been prepared using the indirect method which requires net change in net assets resulting from operations to be adjusted to reconcile to net cash flows from operating activities.
(f) New Accounting Pronouncements In June 2013 the Financial Accounting Standards Board (“FASB”) issued an Accounting Standards Update (“ASU”) providing updated guidance for assessing whether an entity is an investment company and for the measurement of noncontrolling ownership interests in other investment companies. This update became effective for interim or annual periods beginning on or after December 15, 2013. The Funds have adopted the ASU as they follow the investment company reporting requirements under U.S. GAAP and its implementation did not have an impact on the Funds’ financial statements.
In June 2014, the FASB issued ASU 2014-11, that expanded secured borrowing accounting for certain repurchase agreements. The ASU also sets forth additional disclosure requirements for certain transactions accounted for as sales in order to provide financial statement users with information to compare to similar transactions accounted for as secured borrowings. The ASU became effective prospectively for annual periods beginning after December 15, 2014, and interim periods beginning after March 15, 2015. At this time, management is evaluating the implications of these changes on the financial statements.
In May 2015, the FASB issued ASU 2015-07 which removes the requirement to categorize within the fair value hierarchy all investments for which fair value is measured using the net asset value per share practical expedient. The ASU also removes the requirement to make certain disclosures for all investments that are eligible to be measured at fair value using the net asset value per share practical expedient. The ASU is effective for annual periods beginning after December 15, 2015 and interim periods within those annual periods. At this time, management is evaluating the implications of these changes on the financial statements.
3. INVESTMENT VALUATION AND FAIR VALUE MEASUREMENTS
(a) Investment Valuation Policies The price of a Fund’s shares is based on the Fund’s NAV. The NAV of a Fund’s shares is determined by dividing the total value of a Fund’s portfolio investments and other assets attributable to that class, less any liabilities, by the total number of shares outstanding of that class.
Fund shares are ordinarily valued as of the NYSE Close on each day that the NYSE is open. Information that becomes known to the Funds or their agents after the time as of which NAV has been calculated on a particular day will not generally be used to retroactively adjust the price of a security or the NAV determined earlier that day. Each Fund reserves the right to change the time its respective NAV is calculated if the Fund closes earlier, or as permitted by the SEC.
For purposes of calculating NAV, portfolio securities and other assets for which market quotes are readily available are valued at market
ANNUAL REPORT | JUNE 30, 2015 | 81 |
Table of Contents
Notes to Financial Statements (Cont.)
value. Market value is generally determined on the basis of official closing prices or the last reported sales prices, or if no sales are reported, based on quotes obtained from established market makers or prices (including evaluated prices) supplied by the Funds’ approved pricing services, quotation reporting systems and other third-party sources (together, “Pricing Services”). The Funds will normally use pricing data for domestic equity securities received shortly after the NYSE Close and do not normally take into account trading, clearances or settlements that take place after the NYSE Close. A foreign (non-U.S.) equity security traded on a foreign exchange or on more than one exchange is typically valued using pricing information from the exchange considered by the manager to be the primary exchange. A foreign (non-U.S.) equity security will be valued as of the close of trading on the foreign exchange, or the NYSE Close, if the NYSE Close occurs before the end of trading on the foreign exchange. Domestic and foreign (non-U.S.) fixed income securities, non-exchange traded derivatives, and equity options are normally valued on the basis of quotes obtained from brokers and dealers or Pricing Services using data reflecting the earlier closing of the principal markets for those securities. Prices obtained from Pricing Services may be based on, among other things, information provided by market makers or estimates of market values obtained from yield data relating to investments or securities with similar characteristics. Certain fixed income securities purchased on a delayed-delivery basis are marked to market daily until settlement at the forward settlement date. Exchange-traded options, except equity options, futures and options on futures are valued at the settlement price determined by the relevant exchange. Swap agreements are valued on the basis of bid quotes obtained from brokers and dealers or market-based prices supplied by Pricing Services or other pricing sources. With respect to any portion of the Fund’s assets that are invested in one or more open-end management investment companies, a Fund’s NAV will be calculated based upon the NAVs of such investments.
If a foreign (non-U.S.) equity security’s value has materially changed after the close of the security’s primary exchange or principal market but before the NYSE Close, the security may be valued at fair value based on procedures established and approved by the Board of Trustees. Foreign (non-U.S.) equity securities that do not trade when the NYSE is open are also valued at fair value. With respect to foreign (non-U.S.) equity securities, the Fund may determine the fair value of investments based on information provided by Pricing Services and other third-party vendors, which may recommend fair value or adjustments with reference to other securities, indices or assets. In considering whether fair valuation is required and in determining fair values, the Fund may, among other things, consider significant events (which may be considered to include changes in the value of U.S. securities or securities indices) that occur after the close of the relevant
market and before the NYSE Close. A Fund may utilize modeling tools provided by third-party vendors to determine fair values of non-U.S. securities. Foreign (non-U.S.) exchanges may permit trading in foreign (non-U.S.) equity securities on days when the Trust is not open for business, which may result in a Fund’s portfolio investments being affected when you are unable to buy or sell shares.
Senior secured floating rate loans for which an active secondary market exists to a reliable degree will be valued at the mean of the last available bid/ask prices in the market for such loans, as provided by a Pricing Service. Senior secured floating rate loans for which an active secondary market does not exist to a reliable degree will be valued at fair value, which is intended to approximate market value. In valuing a senior secured floating rate loan at fair value, the factors considered may include, but are not limited to, the following: (a) the creditworthiness of the borrower and any intermediate participants, (b) the terms of the loan, (c) recent prices in the market for similar loans, if any, and (d) recent prices in the market for instruments of similar quality, rate, period until next interest rate reset and maturity.
Investments valued in currencies other than the U.S. dollar are converted to the U.S. dollar using exchange rates obtained from Pricing Services. As a result, the NAV of the Fund’s shares may be affected by changes in the value of currencies in relation to the U.S. dollar. The value of securities traded in markets outside the United States or denominated in currencies other than the U.S. dollar may be affected significantly on a day that the Trust is not open for business. As a result, to the extent that a Fund holds foreign (non-U.S.) securities, the NAV of the Fund’s shares may change at times when you cannot purchase, redeem or exchange shares.
Investments for which market quotes or market based valuations are not readily available are valued at fair value as determined in good faith by the Board of Trustees or persons acting at their direction. The Board of Trustees has adopted methods for valuing securities and other assets in circumstances where market quotes are not readily available, and has delegated to PIMCO the responsibility for applying the fair valuation methods. In the event that market quotes or market based valuations are not readily available, and the security or asset cannot be valued pursuant to a Board approved valuation method, the value of the security or asset will be determined in good faith by the Valuation Oversight Committee of the Board of Trustees, generally based on recommendations provided by PIMCO. Market quotes are considered not readily available in circumstances where there is an absence of current or reliable market-based data (e.g., trade information, bid/ask information, broker quotes, Pricing Services prices), including where events occur after the close of the relevant market, but prior to the NYSE Close, that materially affect the values of the Fund’s securities or assets. In addition, market quotes are considered not readily available
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when, due to extraordinary circumstances, the exchanges or markets on which the securities trade do not open for trading for the entire day and no other market prices are available. The Board has delegated to PIMCO the responsibility for monitoring significant events that may materially affect the values of the Fund’s securities or assets and for determining whether the value of the applicable securities or assets should be reevaluated in light of such significant events.
When the Fund uses fair valuation to determine its NAV, securities will not be priced on the basis of quotes from the primary market in which they are traded, but rather may be priced by another method that the Board of Trustees or persons acting at their direction believe reflects fair value. Fair valuation may require subjective determinations about the value of a security. While the Trust’s policy is intended to result in a calculation of the Fund’s NAV that fairly reflects security values as of the time of pricing, the Trust cannot ensure that fair values determined by the Board of Trustees or persons acting at their direction would accurately reflect the price that a Fund could obtain for a security if it were to dispose of that security as of the time of pricing (for instance, in a forced or distressed sale). The prices used by the Fund may differ from the value that would be realized if the securities were sold. The Funds’ use of fair valuation may also help to deter “stale price arbitrage” as discussed under the “Abusive Trading Practices” section in the Funds’ prospectuses.
Under certain circumstances, the per share NAV of a class of the Fund’s shares may be different from the per share NAV of another class of shares as a result of the different daily expense accruals applicable to each class of shares.
(b) Fair Value Hierarchy U.S. GAAP describes fair value as the price that a Fund would receive to sell an asset or pay to transfer a liability in an orderly transaction between market participants at the measurement date. It establishes a fair value hierarchy that prioritizes inputs to valuation methods and requires disclosure of the fair value hierarchy, separately for each major category of assets and liabilities, that segregates fair value measurements into levels (Level 1, 2, or 3). The inputs or methodology used for valuing securities are not necessarily an indication of the risks associated with investing in those securities. Levels 1, 2, and 3 of the fair value hierarchy are defined as follows:
n | Level 1 — Inputs using (unadjusted) quoted prices in active markets or exchanges for identical assets and liabilities. |
n | Level 2 — Significant other observable inputs, which may include, but are not limited to, quoted prices for similar assets or liabilities in markets that are active, quoted prices for identical or similar assets or liabilities in markets that are not active, inputs other than quoted prices that are observable for the assets or liabilities (such as interest |
rates, yield curves, volatilities, prepayment speeds, loss severities, credit risks and default rates) or other market corroborated inputs. |
n | Level 3 — Significant unobservable inputs based on the best information available in the circumstances, to the extent observable inputs are not available, which may include assumptions made by the Board or persons acting at their direction that are used in determining the fair value of investments. |
Assets or liabilities categorized as Level 1 or 2 as of period end have been transferred between Levels 1 and 2 since the prior period due to changes in the valuation method utilized in valuing the investments. Transfers from Level 1 to Level 2 are a result of a change, in the normal course of business, from the use of an exchange traded price or a trade price on the initial purchase date (Level 1) to valuation methods used by third-party pricing services (Level 2). In accordance with the requirements of U.S. GAAP, the amounts of transfers between Levels 1 and 2 and transfers in and out of Level 3, if material, are disclosed in the Notes to Schedule of Investments for each respective Fund.
For fair valuations using significant unobservable inputs, U.S. GAAP requires a reconciliation of the beginning to ending balances for reported fair values that presents changes attributable to total realized and unrealized gains or losses, purchases and sales, and transfers in or out of the Level 3 category during the period. The end of period timing recognition is used for the transfers between Levels of a Fund’s assets and liabilities. Additionally, U.S. GAAP requires quantitative information regarding the significant unobservable inputs used in the determination of fair value of assets or liabilities categorized as Level 3 in the fair value hierarchy. In accordance with the requirements of U.S. GAAP, a fair value hierarchy, and if material, a Level 3 reconciliation and details of significant unobservable inputs, have been included in the Notes to Schedule of Investments for each respective Fund.
(c) Valuation Techniques and the Fair Value Hierarchy
Level 1 and Level 2 trading assets and trading liabilities, at fair value The valuation methods (or “techniques”) and significant inputs used in determining the fair values of portfolio securities or other assets categorized as Level 1 and Level 2 of the fair value hierarchy are as follows:
Fixed income securities including corporate, convertible and municipal bonds and notes, U.S. government agencies, U.S. treasury obligations, sovereign issues, bank loans, convertible preferred securities and non-U.S. bonds are normally valued on the basis of quotes obtained from brokers and dealers or pricing service providers that use broker-dealer quotations, reported trades or valuation estimates from their internal pricing models. The service providers’ internal models use inputs that are observable such as issuer details, interest rates, yield curves, prepayment speeds, credit risks/spreads, default rates and quoted
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prices for similar assets. Securities that use similar valuation techniques and inputs as described above are categorized as Level 2 of the fair value hierarchy.
Fixed income securities purchased on a delayed-delivery basis or as a repurchase commitment in a sale-buyback transaction are marked to market daily until settlement at the forward settlement date and are categorized as Level 2 of the fair value hierarchy.
Mortgage-related and asset-backed securities are usually issued as separate tranches, or classes, of securities within each deal. These securities are also normally valued by pricing service providers that use broker-dealer quotations, reported trades or valuation estimates from their internal pricing models. The pricing models for these securities usually consider tranche-level attributes, current market data, estimated cash flows and market-based yield spreads for each tranche, and incorporate deal collateral performance, as available. Mortgage-related and asset-backed securities that use similar valuation techniques and inputs as described above are categorized as Level 2 of the fair value hierarchy.
Common stocks, exchange-traded funds, exchange-traded notes and financial derivative instruments, such as futures contracts or options on futures that are traded on a national securities exchange, are stated at the last reported sale or settlement price on the day of valuation. To the extent these securities are actively traded and valuation adjustments are not applied, they are categorized as Level 1 of the fair value hierarchy.
Investments valued (denominated) in currencies other than the U.S. dollar are converted to the U.S. dollar using exchange rates (currency spot and forward rates) obtained from pricing service providers. As a result, the NAV of a Fund’s shares may be affected by changes in the value of currencies in relation to the U.S. dollar. The value of securities traded in markets outside the United States or denominated in currencies other than the U.S. dollar may be affected significantly on a day that the Trust is not open for business. Valuation adjustments may be applied to certain securities that are solely traded on a foreign exchange to account for the market movement between the close of the foreign market and the NYSE Close. These securities are valued using pricing service providers that consider the correlation of the trading patterns of the foreign security to the intraday trading in the U.S. markets for investments. Securities using these valuation adjustments are categorized as Level 2 of the fair value hierarchy. Preferred securities and other equities traded on inactive markets or valued by reference to similar instruments are also categorized as Level 2 of the fair value hierarchy.
Investments in registered open-end investment companies will be valued based upon the NAVs of such investments and are categorized as Level 1 of the fair value hierarchy. Investments in unregistered open-
end investment companies will be calculated based upon the NAVs of such investments and are considered Level 1 provided that the NAVs are observable, calculated daily and are the value at which both purchases and sales will be conducted. Investments in privately held investment funds with significant restrictions on redemption where the inputs to the NAVs are observable will be valued based upon the NAVs of such investments and are categorized as Level 2 of the fair value hierarchy.
Short-term debt instruments (such as commercial paper) having a remaining maturity of 60 days or less may be valued at amortized cost, so long as the amortized cost value of such short-term debt instrument is approximately the same as the fair value of the instrument as determined without the use of amortized cost valuation. Prior to July 31, 2015, short-term investments having a maturity of 60 days or less and repurchase agreements were generally valued at amortized cost which approximates fair value. These investments are categorized as Level 2 of the fair value hierarchy.
Equity exchange-traded options and over the counter financial derivative instruments, such as foreign currency contracts, options contracts, or swap agreements, derive their value from underlying asset prices, indices, reference rates, and other inputs or a combination of these factors. Other than swap agreements, which are valued using a broker-dealer bid quotation or on market-based prices provided by pricing services or other pricing sources, these contracts are normally valued on the basis of quotes obtained from a quotation reporting system, established market makers or Pricing Services (normally determined at the close of the New York market). Depending on the product and the terms of the transaction, financial derivative instruments can be valued by a pricing service provider using a series of techniques, including simulation pricing models. The pricing models use inputs that are observed from actively quoted markets such as quoted prices, issuer details, indices, bid/ask spreads, interest rates, implied volatilities, yield curves, dividends and exchange rates. Financial derivative instruments that use similar valuation techniques and inputs as described above are categorized as Level 2 of the fair value hierarchy.
Centrally cleared swaps listed or traded on a multilateral or trade facility platform, such as a registered exchange, are valued at the daily settlement price determined by the respective exchange (if available). For centrally cleared credit default swaps the clearing facility requires its members to provide actionable price levels across complete term structures. These levels along with external third-party prices are used to produce daily settlement prices. These securities are categorized as Level 2 of the fair value hierarchy. Centrally cleared interest rate swaps are valued using a pricing model that references the underlying rates including the overnight index swap rate and London Interbank Offered Rate (“LIBOR”) forward rate to produce the daily settlement price. These securities are categorized as Level 2 of the fair value hierarchy.
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Level 3 trading assets and trading liabilities, at fair value When a fair valuation method is applied by PIMCO that uses significant unobservable inputs, securities will be priced by a method that the Board or persons acting at their direction believe reflects fair value and are categorized as Level 3 of the fair value hierarchy. The valuation techniques and significant inputs used in determining the fair values of portfolio assets and liabilities categorized as Level 3 of the fair value hierarchy are as follows:
Market comparable valuation estimates fair value by applying a valuation multiple to a key performance metric of the company, which may include unobservable inputs such as earnings before interest, taxes, depreciation and amortization (“EBITDA”), Adviser’s assumptions regarding comparable companies and non-public statements from the underlying company. Significant changes in the unobservable inputs would result in direct and proportional changes in the fair value of the security. These securities are categorized as Level 3 of the fair value hierarchy.
The validity of the fair value is reviewed by the Adviser on a periodic basis and may be amended as the availability of market data indicates a material change.
4. SECURITIES AND OTHER INVESTMENTS
(a) Investments in Securities
Loan Participations, Assignments and Originations Certain Funds may invest in direct debt instruments which are interests in amounts owed to lenders or lending syndicates by corporate, governmental, or other borrowers. A Fund’s investments in loans may be in the form of participations in loans, assignments of all or a portion of loans from third parties, or originations of loans by a Fund or Funds. A loan is often administered by a bank or other financial institution (the “lender”) that acts as agent for all holders. The agent administers the terms of the loan, as specified in the loan agreement. A Fund may invest in multiple series or tranches of a loan, which may have varying terms and carry different associated risks. When a Fund purchases assignments from lenders it acquires direct rights against the borrower of the loan. These loans may include participations in bridge loans, which are loans taken out by borrowers for a short period (typically less than one year) pending arrangement of more permanent financing through, for example, the issuance of bonds, frequently high yield bonds issued for the purpose of acquisitions.
The types of loans and related investments in which the Funds may invest include, among others, senior loans, subordinated loans (including second lien loans, B-Notes and mezzanine loans), whole loans, commercial real estate and other commercial loans and structured loans. The Funds may originate loans or acquire direct interests in loans through primary loan distributions and/or in private transactions. In the case of subordinated loans, there may be
significant indebtedness ranking ahead of the borrower’s obligation to the holder of such a loan, including in the event of the borrower’s insolvency. Mezzanine loans are typically secured by a pledge of an equity interest in the mortgage borrower that owns the real estate rather than an interest in a mortgage.
Investments in loans may include unfunded loan commitments, which are contractual obligations for funding. Unfunded loan commitments may include revolving credit facilities, which may obligate a Fund to supply additional cash to the borrower on demand. Unfunded loan commitments represent a future obligation in full, even though a percentage of the committed amount may not be utilized by the borrower. When investing in a loan participation, a Fund has the right to receive payments of principal, interest and any fees to which it is entitled only from the lender selling the loan agreement and only upon receipt of payments by the lender from the borrower. A Fund may receive a commitment fee based on the undrawn portion of the underlying line of credit portion of a loan. In certain circumstances, a Fund may receive a penalty fee upon the prepayment of a loan by a borrower. Fees earned or paid are recorded as a component of interest income or interest expense, respectively, on the Statements of Operations. As of June 30, 2015, the Funds had no unfunded loan commitments outstanding.
Mortgage-Related and Other Asset-Backed Securities Certain Funds may invest in mortgage-related and other asset-backed securities that directly or indirectly represent a participation in, or are secured by and payable from, loans on real property. Mortgage-related securities are created from pools of residential or commercial mortgage loans, including mortgage loans made by savings and loan institutions, mortgage bankers, commercial banks and others. These securities provide a monthly payment which consists of both interest and principal. Interest may be determined by fixed or adjustable rates. The rate of prepayments on underlying mortgages will affect the price and volatility of a mortgage-related security, and may have the effect of shortening or extending the effective duration of the security relative to what was anticipated at the time of purchase. The timely payment of principal and interest of certain mortgage-related securities is guaranteed with the full faith and credit of the U.S. Government. Pools created and guaranteed by non-governmental issuers, including government-sponsored corporations, may be supported by various forms of insurance or guarantees, but there can be no assurance that private insurers or guarantors can meet their obligations under the insurance policies or guarantee arrangements. Many of the risks of investing in mortgage-related securities secured by commercial mortgage loans reflect the effects of local and other economic conditions on real estate markets, the ability of tenants to make lease payments, and the ability of a property to attract and retain tenants. These securities may be less liquid and may exhibit greater price volatility than other types of mortgage-related or other asset-backed
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securities. Other asset-backed securities are created from many types of assets, including auto loans, credit card receivables, home equity loans, and student loans.
Collateralized Mortgage Obligations (“CMOs”) are debt obligations of a legal entity that are collateralized by whole mortgage loans or private mortgage bonds and divided into classes. CMOs are structured into multiple classes, often referred to as “tranches,” with each class bearing a different stated maturity and entitled to a different schedule for payments of principal and interest, including prepayments. CMOs may be less liquid and may exhibit greater price volatility than other types of mortgage-related or asset-backed securities.
Payment In-Kind Securities Certain Funds may invest in payment in-kind securities (“PIKs”). PIKs may give the issuer the option at each interest payment date of making interest payments in either cash or additional debt securities. Those additional debt securities usually have the same terms, including maturity dates and interest rates, and associated risks as the original bonds. The daily market quotations of the original bonds may include the accrued interest (referred to as a dirty price) and require a pro rata adjustment from the unrealized appreciation or depreciation on investments to interest receivable on the Statements of Assets and Liabilities.
U.S. Government Agencies or Government-Sponsored Enterprises Certain Funds may invest in securities of U.S. Government agencies or government-sponsored enterprises. U.S. Government securities are obligations of and, in certain cases, guaranteed by, the U.S. Government, its agencies or instrumentalities. Some U.S. Government securities, such as Treasury bills, notes and bonds, and securities
guaranteed by the Government National Mortgage Association (“GNMA” or “Ginnie Mae”), are supported by the full faith and credit of the U.S. Government; others, such as those of the Federal Home Loan Banks, are supported by the right of the issuer to borrow from the U.S. Department of the Treasury (the “U.S. Treasury”); and others, such as those of the Federal National Mortgage Association (“FNMA” or “Fannie Mae”), are supported by the discretionary authority of the U.S. Government to purchase the agency’s obligations. U.S. Government securities may include zero coupon securities. Zero coupon securities do not distribute interest on a current basis and tend to be subject to a greater risk than interest-paying securities.
Government-related guarantors (i.e., not backed by the full faith and credit of the U.S. Government) include FNMA and the Federal Home
Loan Mortgage Corporation (“FHLMC” or “Freddie Mac”). FNMA is a government-sponsored corporation. FNMA purchases conventional (i.e., not insured or guaranteed by any government agency) residential mortgages from a list of approved seller/servicers which include state and federally chartered savings and loan associations, mutual savings banks, commercial banks and credit unions and mortgage bankers. Pass-through securities issued by FNMA are guaranteed as to timely payment of principal and interest by FNMA, but are not backed by the full faith and credit of the U.S. Government. FHLMC issues Participation Certificates (“PCs”), which are pass-through securities, each representing an undivided interest in a pool of residential mortgages. FHLMC guarantees the timely payment of interest and ultimate collection of principal, but PCs are not backed by the full faith and credit of the U.S. Government.
(b) Investments in Affiliates
The PIMCO Emerging Multi-Asset Fund may invest assets in Institutional Class or Class M shares of the Trust and funds of PIMCO Funds, except funds of funds, (“Underlying PIMCO Funds”) and may also invest in other affiliated funds, including funds of PIMCO ETF Trust, and unaffiliated funds, which may or may not be registered under the 1940 Act (collectively, “Acquired Funds”). The Underlying PIMCO Funds are considered to be affiliated with the PIMCO Emerging Multi-Asset Fund. The table below shows the transactions in and earnings from investments in these affiliated Funds for the period ended June 30, 2015 (amounts in thousands†):
PIMCO Emerging Multi-Asset Fund
Underlying PIMCO Funds | Market Value 06/30/2014 | Purchases at Cost | Proceeds from Sales | Net Realized Gain/(Loss) | Change in Unrealized Appreciation/ (Depreciation) | Market Value 06/30/2015 | Dividend Income (1) | Realized Net Capital Gain Distributions (1) | ||||||||||||||||||||||||||
PIMCO Emerging Local Bond Fund | $ | 9,092 | $ | 617 | $ | (4,565 | ) | $ | (1,370 | ) | $ | (127 | ) | $ | 3,647 | $ | 306 | $ | 0 | |||||||||||||||
PIMCO Emerging Markets Bond Fund | 5,207 | 343 | (3,204 | ) | (496 | ) | 21 | 1,871 | 189 | 24 | ||||||||||||||||||||||||
PIMCO Emerging Markets Corporate Bond Fund | 2,517 | 499 | (2,770 | ) | (191 | ) | (55 | ) | 0 | 84 | 0 | |||||||||||||||||||||||
PIMCO EqS® Emerging Markets Fund | 19,050 | 437 | (18,903 | ) | (537 | ) | (47 | ) | 0 | 0 | 0 | |||||||||||||||||||||||
PIMCO Short-Term Floating NAV Portfolio* | 512 | 2,600 | (3,112 | ) | 0 | 0 | 0 | 0 | 0 | |||||||||||||||||||||||||
PIMCO Short-Term Floating NAV Portfolio III | 0 | 4,204 | (4,100 | ) | (3 | ) | 0 | 101 | 4 | 0 | ||||||||||||||||||||||||
Totals | $ | 36,378 | $ | 8,700 | $ | (36,654 | ) | $ | (2,597 | ) | $ | (208 | ) | $ | 5,619 | $ | 583 | $ | 24 |
† | A zero balance may reflect actual amounts rounding to less than one thousand. |
* | Effective July 1, 2015, the Portfolio was liquidated. |
(1) | A portion of this may be recharacterized to return of capital and reflected as such on tax forms mailed to shareholders on or about January 31st following each calendar year. |
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Each Fund may invest in the PIMCO Short-Term Floating NAV Portfolio and PIMCO Short-Term Floating NAV Portfolio III (“Central Funds”) to the extent permitted by the Act and rules thereunder. The Central Funds are registered investment companies created for use solely by the series of the Trust and series of the PIMCO Funds, PIMCO ETF Trust, PIMCO Variable Insurance Trust, PIMCO Equity Series VIT, and other series of registered investment companies advised by PIMCO, in connection with their cash management activities. The main investments of the Central Funds are money market and short maturity fixed income instruments. The Central Funds may incur expenses related to their investment activities, but do not pay Investment Advisory or Supervisory and Administrative Fees to PIMCO. The Central Funds are considered to be affiliated with the Funds. The table below shows the Funds’ transactions in and earnings from investments in the Central Funds for the period ended June 30, 2015 (amounts in thousands†):
Investments in PIMCO Short-Term Floating NAV Portfolio*
Fund Name | Market Value 06/30/2014 | Purchases at Cost | Proceeds from Sales | Net Realized Gain/(Loss) | Change in Unrealized Appreciation/ (Depreciation) | Market Value 06/30/2015 | Dividend Income (1) | Realized Net Capital Gain Distributions (1) | ||||||||||||||||||||||||||
PIMCO Balanced Income Fund | $ | 980 | $ | 1,601 | $ | (2,581 | ) | $ | 0 | $ | 0 | $ | 0 | $ | 1 | $ | 0 | |||||||||||||||||
PIMCO Dividend and Income Builder Fund | 19,329 | 88,906 | (108,236 | ) | 1 | 0 | 0 | 7 | 0 | |||||||||||||||||||||||||
PIMCO EqS® Emerging Markets Fund | 519 | 27,214 | (27,730 | ) | (3 | ) | 0 | 0 | 15 | 0 | ||||||||||||||||||||||||
PIMCO EqS® Long/Short Fund | 402,024 | 156,943 | (558,871 | ) | (59 | ) | (37 | ) | 0 | 343 | 0 | |||||||||||||||||||||||
PIMCO Global Dividend Fund | 3,054 | 92,403 | (95,457 | ) | 0 | 0 | 0 | 2 | 0 | |||||||||||||||||||||||||
PIMCO EqS Pathfinder Fund® | 133,858 | 86,914 | (220,757 | ) | (13 | ) | (2 | ) | 0 | 113 | 0 |
Investments in PIMCO Short-Term Floating NAV Portfolio III
Fund Name | Market Value 06/30/2014 | Purchases at Cost | Proceeds from Sales | Net Realized Gain/(Loss) | Change in Unrealized Appreciation/ (Depreciation) | Market Value 06/30/2015 | Dividend Income (1) | Realized Net Capital Gain Distributions (1) | ||||||||||||||||||||||||||
PIMCO Balanced Income Fund | $ | 0 | $ | 8,414 | $ | (6,430 | ) | $ | (10 | ) | $ | 0 | $ | 1,974 | $ | 13 | $ | 0 | ||||||||||||||||
PIMCO Dividend and Income Builder Fund | 0 | 450,797 | (418,330 | ) | (36 | ) | (1 | ) | 32,430 | 97 | 0 | |||||||||||||||||||||||
PIMCO EqS® Emerging Markets Fund | 0 | 63,080 | (59,500 | ) | (57 | ) | 0 | 3,523 | 78 | 0 | ||||||||||||||||||||||||
PIMCO EqS® Long/Short Fund | 0 | 1,535,713 | (1,411,300 | ) | (1,921 | ) | (11 | ) | 122,481 | 2,413 | 0 | |||||||||||||||||||||||
PIMCO Global Dividend Fund | 0 | 52,806 | (49,780 | ) | (2 | ) | 0 | 3,024 | 7 | 0 | ||||||||||||||||||||||||
PIMCO International Dividend Fund | 0 | 5,301 | (5,190 | ) | (1 | ) | 0 | 110 | 1 | 0 | ||||||||||||||||||||||||
PIMCO U.S. Dividend Fund | 0 | 2,001 | (1,990 | ) | (1 | ) | 0 | 10 | 1 | 0 | ||||||||||||||||||||||||
PIMCO EqS Pathfinder Fund® | 0 | 683,903 | (596,900 | ) | (1,053 | ) | (9 | ) | 85,941 | 1,103 | 0 |
† | A zero balance may reflect actual amounts rounding to less than one thousand. |
* | Effective July 1, 2015, the Portfolio was liquidated. |
(1) | A portion of this may be recharacterized to return of capital and reflected as such on tax forms mailed to shareholders on or about January 31st following each calendar year. |
5. BORROWINGS AND OTHER FINANCING TRANSACTIONS
The following disclosures contain information on a Fund’s ability to lend or borrow cash or securities to the extent permitted under the Act, which may be viewed as borrowing or financing transactions by a Fund. The location and fair value amounts of these instruments are described below. For a detailed description of credit and counterparty risks that can be associated with borrowings and other financing transactions, please see Note 7, Principal Risks.
(a) Repurchase Agreements Certain Funds may engage in repurchase agreements. Under the terms of a typical repurchase agreement, a Fund takes possession of an underlying debt obligation (collateral) subject to an obligation of the seller to repurchase, and a Fund to resell, the obligation at an agreed-upon price and time. The underlying securities for all repurchase agreements are held in safekeeping at the Fund’s custodian or designated subcustodians under tri-party repurchase
agreements. The market value of the collateral must be equal to or exceed the total amount of the repurchase obligations, including interest. Repurchase agreements, including accrued interest, are included on the Statements of Assets and Liabilities. Interest earned is recorded as a component of interest income on the Statements of Operations. In periods of increased demand for collateral, a Fund may pay a fee for receipt of collateral, which may result in interest expense to the Fund.
(b) Sale-Buybacks Certain Funds may enter into financing transactions referred to as ‘sale-buybacks’. A sale-buyback transaction consists of a sale of a security by a Fund to a financial institution, the counterparty, with a simultaneous agreement to repurchase the same or substantially the same security at an agreed-upon price and date. A Fund is not entitled to receive principal and interest payments, if any, made on the security sold to the counterparty during the term of the agreement. The agreed-upon proceeds for securities to be repurchased by a Fund are reflected as a liability on the Statements of Assets and Liabilities. A
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Fund will recognize net income represented by the price differential between the price received for the transferred security and the agreed-upon repurchase price. This is commonly referred to as the ‘price drop’. A price drop consists of (i) the foregone interest and inflationary income adjustments, if any, a Fund would have otherwise received had the security not been sold and (ii) the negotiated financing terms between a Fund and counterparty. Foregone interest and inflationary income adjustments, if any, are recorded as components of interest income on the Statements of Operations. Interest payments based upon negotiated financing terms made by a Fund to counterparties are recorded as a component of interest expense on the Statements of Operations. In periods of increased demand for the security, a Fund may receive a fee for use of the security by the counterparty, which may result in interest income to the Fund. A Fund will segregate assets determined to be liquid by PIMCO or will otherwise cover its obligations under sale-buyback transactions.
(c) Short Sales Certain Funds may enter into short sales transactions. A short sale is a transaction in which a Fund sells securities it may not own in anticipation of a decline in the fair market value of the securities. Securities sold in short sale transactions and the interest payable on such securities, if any, are reflected as a liability on the Statements of Assets and Liabilities. A Fund is obligated to deliver securities at the trade price at the time the short position is covered. Possible losses from short sales may be unlimited, whereas losses from purchases cannot exceed the total amount invested.
6. FINANCIAL DERIVATIVE INSTRUMENTS
The following disclosures contain information on how and why the Funds use financial derivative instruments, the credit-risk-related contingent features in certain financial derivative instruments, and how financial derivative instruments affect the Funds’ financial positions, results of operations and cash flows. The location and fair value amounts of these instruments on the Statements of Assets and Liabilities and the realized and changes in unrealized gains and losses on the Statements of Operations, each categorized by type of financial derivative contract and related risk exposure, are included in a table in the Notes to Schedules of Investments. The financial derivative instruments outstanding as of period end and the amounts of realized and changes in unrealized gains and losses on financial derivative instruments during the period, as disclosed in the Notes to Schedules of Investments, serve as indicators of the volume of financial derivative activity for the Funds.
(a) Forward Foreign Currency Contracts Certain Funds may enter into forward foreign currency contracts in connection with settling planned purchases or sales of securities, to hedge the currency exposure associated with some or all of a Fund’s securities or as a part of an investment strategy. A forward foreign currency contract is an
agreement between two parties to buy and sell a currency at a set price on a future date. The market value of a forward foreign currency contract fluctuates with changes in foreign currency exchange rates. Forward foreign currency contracts are marked to market daily, and the change in value is recorded by a Fund as an unrealized gain or loss. Realized gains or losses are equal to the difference between the value of the contract at the time it was opened and the value at the time it was closed and are recorded upon delivery or receipt of the currency. These contracts may involve market risk in excess of the unrealized gain or loss reflected on the Statements of Assets and Liabilities. In addition, a Fund could be exposed to risk if the counterparties are unable to meet the terms of the contracts or if the value of the currency changes unfavorably to the U.S. dollar. To mitigate such risk, cash or securities may be exchanged as collateral pursuant to the terms of the underlying contracts.
(b) Futures Contracts Certain Funds may enter into futures contracts. A Fund may use futures contracts to manage its exposure to the securities markets or to movements in interest rates and currency values. The primary risks associated with the use of futures contracts are the imperfect correlation between the change in market value of the securities held by a Fund and the prices of futures contracts and the possibility of an illiquid market. Futures contracts are valued based upon their quoted daily settlement prices. Upon entering into a futures contract, a Fund is required to deposit with its futures broker an amount of cash, U.S. Government and Agency Obligations, or select sovereign debt, in accordance with the initial margin requirements of the broker or exchange. Futures contracts are marked to market daily and based on such movements in the price of the contracts, an appropriate payable or receivable for the change in value may be posted or collected by the Fund (“variation margin”). Gains or losses are recognized but not considered realized until the contracts expire or close. Futures contracts involve, to varying degrees, risk of loss in excess of variation margin disclosed within exchange traded or centrally cleared financial derivative instruments on the Statements of Assets and Liabilities.
(c) Options Contracts Certain Funds may write call and put options on securities and financial derivative instruments they own or in which they may invest. Writing put options tends to increase a Fund’s exposure to the underlying instrument. Writing call options tends to decrease a Fund’s exposure to the underlying instrument. When a Fund writes a call or put, an amount equal to the premium received is recorded as a liability and subsequently marked to market to reflect the current value of the option written. These liabilities are included on the Statements of Assets and Liabilities. Premiums received from writing options which expire are treated as realized gains. Premiums received from writing options which are exercised or closed are added to the proceeds or offset against amounts paid on the underlying futures,
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swap, security or currency transaction to determine the realized gain or loss. Certain options may be written with premiums to be determined on a future date. The premiums for these options are based upon implied volatility parameters at specified terms. A Fund as a writer of an option has no control over whether the underlying instrument may be sold (“call”) or purchased (“put”) and as a result bears the market risk of an unfavorable change in the price of the instrument underlying the written option. There is the risk a Fund may not be able to enter into a closing transaction because of an illiquid market.
Certain Funds may also purchase put and call options. Purchasing call options tends to increase a Fund’s exposure to the underlying instrument. Purchasing put options tends to decrease a Fund’s exposure to the underlying instrument. A Fund pays a premium which is included as an asset on the Statements of Assets and Liabilities and subsequently marked to market to reflect the current value of the option. Premiums paid for purchasing options which expire are treated as realized losses. Certain options may be purchased with premiums to be determined on a future date. The premiums for these options are based upon implied volatility parameters at specified terms. The risk associated with purchasing put and call options is limited to the premium paid. Premiums paid for purchasing options which are exercised or closed are added to the amounts paid or offset against the proceeds on the underlying investment transaction to determine the realized gain or loss when the underlying transaction is executed.
Foreign Currency Options Certain Funds may write or purchase foreign currency options. Purchasing foreign currency options gives a Fund the right, but not the obligation to buy or sell the currency with specified amounts of currency and a rate of exchange that may be exercised by a certain date. These options may be used as a short or long hedge against possible variations in foreign exchange rates or to gain exposure to foreign currencies.
Options on Securities Certain Funds may write or purchase options on securities. An option uses a specified security as the underlying instrument for the option contract. A Fund may write or purchase options to enhance returns or to hedge an existing position or future investment.
(d) Swap Agreements Certain Funds may invest in swap agreements. Swap agreements are bilaterally negotiated agreements between a Fund and a counterparty to exchange or swap investment cash flows, assets, foreign currencies or market-linked returns at specified, future intervals. Swap agreements may be privately negotiated in the over the counter market (“OTC swaps”) or may be cleared through a third party, known as a central counterparty or derivatives clearing organization (“centrally cleared swaps”). A Fund may enter into asset, credit default, cross-currency, interest rate, total return, variance and other forms of
swap agreements to manage its exposure to credit, currency, interest rate, commodity, equity and inflation risk. In connection with these agreements, securities or cash may be identified as collateral or margin in accordance with the terms of the respective swap agreements to provide assets of value and recourse in the event of default or bankruptcy/insolvency.
Swaps are marked to market daily based upon valuations as determined from the underlying contract or in accordance with the requirements of the central counterparty or derivatives clearing organization. Changes in market value, if any, are reflected as a component of net change in unrealized appreciation/(depreciation) on the Statements of Operations. Daily changes in valuation of centrally cleared swaps, if any, are recorded as a variation margin on the Statements of Assets and Liabilities. OTC swap payments received or paid at the beginning of the measurement period are included on the Statements of Assets and Liabilities and represent premiums paid or received upon entering into the swap agreement to compensate for differences between the stated terms of the swap agreement and prevailing market conditions (credit spreads, currency exchange rates, interest rates, and other relevant factors). Upfront premiums received (paid) are initially recorded as liabilities (assets) and subsequently marked to market to reflect the current value of the swap. These upfront premiums are recorded as realized gains or losses on the Statements of Operations upon termination or maturity of the swap. A liquidation payment received or made at the termination of the swap is recorded as realized gain or loss on the Statements of Operations. Net periodic payments received or paid by a Fund are included as part of realized gains or losses on the Statements of Operations.
Entering into these agreements involves, to varying degrees, elements of interest, credit, market and documentation risk in excess of the amounts recognized on the Statements of Assets and Liabilities. Such risks involve the possibility that there will be no liquid market for these agreements, that the counterparty to the agreements may default on its obligation to perform or disagree as to the meaning of contractual terms in the agreements and that there may be unfavorable changes in interest rates.
A Fund’s maximum risk of loss from counterparty credit risk is the discounted net value of the cash flows to be received from the counterparty over the contract’s remaining life, to the extent that amount is positive. The risk is mitigated by having a master netting arrangement between a Fund and the counterparty and by the posting of collateral to a Fund to cover a Fund’s exposure to the counterparty.
Credit Default Swap Agreements Credit default swap agreements involve one party making a stream of payments (referred to as the buyer of protection) to another party (the seller of protection) in
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exchange for the right to receive a specified return in the event that the referenced entity, obligation or index, as specified in the agreement, undergoes a certain credit event. As a seller of protection on credit default swap agreements, a Fund will generally receive from the buyer of protection a fixed rate of income throughout the term of the swap provided that there is no credit event. As the seller, a Fund would effectively add leverage to its portfolio because, in addition to its total net assets, a Fund would be subject to investment exposure on the notional amount of the swap.
If a Fund is a seller of protection and a credit event occurs, as defined under the terms of that particular swap agreement, a Fund will either (i) pay to the buyer of protection an amount equal to the notional amount of the swap and take delivery of the referenced obligation, other deliverable obligations or underlying securities comprising the referenced index or (ii) pay a net settlement amount in the form of cash or securities equal to the notional amount of the swap less the recovery value of the referenced obligation or underlying securities comprising the referenced index. If a Fund is a buyer of protection and a credit event occurs, as defined under the terms of that particular swap agreement, a Fund will either (i) receive from the seller of protection an amount equal to the notional amount of the swap and deliver the referenced obligation, other deliverable obligations or underlying securities comprising the referenced index or (ii) receive a net settlement amount in the form of cash or securities equal to the notional amount of the swap less the recovery value of the referenced obligation or underlying securities comprising the referenced index. Recovery values are estimated by market makers considering either industry standard recovery rates or entity specific factors and considerations until a credit event occurs. If a credit event has occurred, the recovery value is determined by a facilitated auction whereby a minimum number of allowable broker bids, together with a specified valuation method, are used to calculate the settlement value.
Credit default swap agreements on corporate or sovereign issues involve one party making a stream of payments to another party in exchange for the right to receive a specified return in the event that the referenced entity, obligation or index, as specified in the agreement, undergoes a certain credit event. If a credit event occurs and cash settlement is not elected, a variety of other deliverable obligations may be delivered in lieu of the specific referenced obligation. The ability to deliver other obligations may result in a cheapest-to-deliver option (the buyer of protection’s right to choose the deliverable obligation with the lowest value following a credit event). A Fund may use credit default swaps on corporate or sovereign issues to provide a measure of protection against defaults of the issuers (i.e., to reduce risk where a Fund owns or has exposure to the referenced obligation) or to take an active long or short position with respect to the likelihood of a particular issuer’s default.
Credit default swap agreements on credit indices involve one party making a stream of payments to another party in exchange for the right to receive a specified return in the event of a write-down, principal shortfall, interest shortfall or default of all or part of the referenced entities comprising the credit index. A credit index is a basket of credit instruments or exposures designed to be representative of some part of the credit market as a whole. These indices are made up of reference credits that are judged by a poll of dealers to be the most liquid entities in the credit default swap market based on the sector of the index. Components of the indices may include, but are not limited to, investment grade securities, high yield securities, asset-backed securities, emerging markets, and/or various credit ratings within each sector. Credit indices are traded using credit default swaps with standardized terms including a fixed spread and standard maturity dates. An index credit default swap references all the names in the index, and if there is a default, the credit event is settled based on that name’s weight in the index. The composition of the indices changes periodically, usually every six months, and for most indices, each name has an equal weight in the index. A Fund may use credit default swaps on credit indices to hedge a portfolio of credit default swaps or bonds, which is less expensive than it would be to buy many credit default swaps to achieve a similar effect. Credit default swaps on indices are instruments for protecting investors owning bonds against default, and traders use them to speculate on changes in credit quality.
Implied credit spreads, represented in absolute terms, utilized in determining the market value of credit default swap agreements on corporate or sovereign issues as of period end are disclosed in the Notes to Schedules of Investments. They serve as an indicator of the current status of payment/performance risk and represent the likelihood or risk of default for the reference entity. The implied credit spread of a particular referenced entity reflects the cost of buying/selling protection and may include upfront payments required to be made to enter into the agreement. Wider credit spreads represent a deterioration of the referenced entity’s credit soundness and a greater likelihood or risk of default or other credit event occurring as defined under the terms of the agreement. For credit default swap agreements on asset-backed securities and credit indices, the quoted market prices and resulting values serve as the indicator of the current status of the payment/performance risk. Increasing market values, in absolute terms when compared to the notional amount of the swap, represent a deterioration of the referenced entity’s credit soundness and a greater likelihood or risk of default or other credit event occurring as defined under the terms of the agreement.
The maximum potential amount of future payments (undiscounted) that a Fund as a seller of protection could be required to make under a credit default swap agreement equals the notional amount of the agreement. Notional amounts of each individual credit default swap
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agreement outstanding as of period end for which a Fund is the seller of protection are disclosed in the Notes to Schedules of Investments. These potential amounts would be partially offset by any recovery values of the respective referenced obligations, upfront payments received upon entering into the agreement, or net amounts received from the settlement of buy protection credit default swap agreements entered into by a Fund for the same referenced entity or entities.
Interest Rate Swap Agreements Certain Funds are subject to interest rate risk exposure in the normal course of pursuing their investment objectives. Because a Fund holds fixed rate bonds, the value of these bonds may decrease if interest rates rise. To help hedge against this risk and to maintain its ability to generate income at prevailing market rates, a Fund may enter into interest rate swap agreements. Interest rate swap agreements involve the exchange by a Fund with another party for their respective commitment to pay or receive interest on the notional amount of principal. Certain forms of interest rate swap agreements may include: (i) interest rate caps, under which, in return for a premium, one party agrees to make payments to the other to the extent that interest rates exceed a specified rate, or “cap”, (ii) interest rate floors, under which, in return for a premium, one party agrees to make payments to the other to the extent that interest rates fall below a specified rate, or “floor”, (iii) interest rate collars, under which a party sells a cap and purchases a floor or vice versa in an attempt to protect itself against interest rate movements exceeding given minimum or maximum levels, (iv) callable interest rate swaps, under which the buyer pays an upfront fee in consideration for the right to early terminate the swap transaction in whole, at zero cost and at a predetermined date and time prior to the maturity date, (v) spreadlocks, which allow the interest rate swap users to lock in the forward differential (or spread) between the interest rate swap rate and a specified benchmark, or (vi) basis swaps, under which two parties can exchange variable interest rates based on different segments of money markets.
7. PRINCIPAL RISKS
In the normal course of business, the Funds (or Acquired Funds) trade financial instruments and enter into financial transactions where risk of potential loss exists due to such things as changes in the market (market risk) or failure or inability of the other party to a transaction to perform (credit and counterparty risk). See below for a detailed description of select principal risks. For a more comprehensive list of potential risks the Funds may be subject to, please see the Important Information About the Funds.
Investments in Mutual Funds To the extent that certain Funds invest substantially all of their respective assets in Acquired Funds, the risks associated with investing in these Funds will be closely related to the risks associated with the securities and other investments held by the Acquired Funds. The ability of the Funds to achieve their respective
investment objectives may depend upon the ability of the Acquired Funds to achieve their respective investment objectives. There can be no assurance that the investment objective of any Acquired Fund will be achieved. The net asset value of each Fund will fluctuate in response to changes in the respective net asset values of the Acquired Funds in which it invests. The extent to which the investment performance and risks associated with the Funds correlate to those of a particular Acquired Fund will depend upon the extent to which the assets of the Funds are allocated from time to time for investment in the Acquired Funds, which will vary.
Investing in Acquired Funds involves certain additional expenses and tax results that would not be present in a direct investment in the Acquired Funds.
Certain Funds investment performance depends upon how each Fund’s assets are allocated and reallocated according to each Fund’s asset allocation targets and ranges. A principal risk of investing in each Fund is that the Funds’ asset allocation sub-adviser will make less than optimal or poor asset allocation decisions. The asset allocation sub-adviser attempts to identify investment allocations for the Acquired Funds that will provide consistent, quality performance for the Funds, but there is no guarantee that such allocation techniques will produce the desired results.
Market Risks A Fund’s (or Acquired Funds’) investments in financial derivatives and other financial instruments expose the Fund to various risks such as, but not limited to, equity, interest rate, foreign currency and commodity risks.
The market values of equities, such as common stocks and preferred securities or equity related investments such as futures and options, have historically risen and fallen in periodic cycles and may decline due to general market conditions which are not specifically related to a particular company, such as real or perceived adverse economic conditions, changes in the general outlook for corporate earnings, changes in interest or currency rates or adverse investor sentiment generally. They may also decline due to factors which affect a particular industry or industries, such as labor shortages or increased production costs and competitive conditions within an industry. Different types of equity securities may react differently to these developments. Equity securities and equity related investments generally have greater market price volatility than fixed income securities.
Interest rate risk is the risk that fixed income securities will decline in value because of an increase in interest rates. As nominal interest rates rise, the value of certain fixed income securities held by a Fund (or Acquired Funds) is likely to decrease. A nominal interest rate can be described as the sum of a real interest rate and an expected inflation rate. Interest rate changes can be sudden and unpredictable, and a
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Fund (or Acquired Funds) may lose money if these changes are not anticipated by Fund (or Acquired Funds) management. A Fund (or Acquired Funds) may not be able to hedge against changes in interest rates or may choose not to do so for cost or other reasons. In addition, any hedges may not work as intended.
Fixed income securities with longer durations tend to be more sensitive to changes in interest rates, usually making them more volatile than securities with shorter durations. Duration is useful primarily as a measure of the sensitivity of a fixed income security’s market price to interest rate (i.e., yield) movements. A wide variety of factors can cause interest rates to rise (e.g., central bank monetary policies, inflation rates, general economic conditions). At present, the U.S. is experiencing historically low interest rates. This, combined with recent economic recovery and the end of the Fed’s quantitative easing program in October 2014, may increase the probability of an upward interest rate environment in the near future. Further, while U.S. bond markets have steadily grown over the past three decades, dealer “market making” ability has remained relatively stagnant. Given the importance of intermediary “market making” in creating a robust and active market, fixed income securities are currently facing increased volatility and liquidity risks. All of these factors, collectively and/or individually, could cause a Fund (or Acquired Funds) to lose value. If a Fund (or Acquired Funds) lost enough value, the Fund (or Acquired Funds) could face increased redemptions by shareholders, which could further impair its performance.
Certain Funds (or Acquired Funds) may invest in securities and instruments that are economically tied to Russia. Investments in Russia are subject to various risks such as, but not limited to political, economic, legal, market and currency risks. The risks include uncertain political and economic policies, short-term market volatility, poor accounting standards, corruption and crime, an inadequate regulatory system, and unpredictable taxation. Investments in Russia are particularly subject to the risk that further economic sanctions may be imposed by the United States and/or other countries. Such sanctions — which may impact companies in many sectors, including energy, financial services and defense, among others — may negatively impact a Fund’s (or Acquired Funds’) performance and/or ability to achieve its investment objective. The Russian securities market is characterized by limited volume of trading, resulting in difficulty in obtaining accurate prices. The Russian securities market, as compared to U.S. markets, has significant price volatility, less liquidity, a smaller market capitalization and a smaller number of traded securities. There may be little publicly available information about issuers. Settlement, clearing and registration of securities transactions are subject to risks because of registration systems that may not be subject to effective government supervision. This may result in significant delays or problems in registering the transfer of securities. Russian securities laws
may not recognize foreign nominee accounts held with a custodian bank, and therefore the custodian may be considered the ultimate owner of securities they hold for their clients. Ownership of securities issued by Russian companies is recorded by companies themselves and by registrars instead of through a central registration system. It is possible that the ownership rights of certain Funds (or Acquired Funds) could be lost through fraud or negligence. While applicable Russian regulations impose liability on registrars for losses resulting from their errors, it may be difficult for certain Funds (or Acquired Funds) to enforce any rights it may have against the registrar or issuer of the securities in the event of loss of share registration. Adverse currency exchange rates are a risk and there may be a lack of available currency hedging instruments. Investments in Russia may be subject to the risk of nationalization or expropriation of assets. Oil, natural gas, metals, and timber account for a significant portion of Russia’s exports, leaving the country vulnerable to swings in world prices.
If a Fund (or Acquired Funds) invests directly in foreign (non-U.S.) currencies or in securities that trade in, and receive revenues in, foreign (non-U.S.) currencies, or in financial derivatives that provide exposure to foreign (non-U.S.) currencies, it will be subject to the risk that those currencies will decline in value relative to the base currency of the Fund (or Acquired Funds), or, in the case of hedging positions, that the Fund’s (or Acquired Funds’) base currency will decline in value relative to the currency being hedged. Currency rates in foreign countries may fluctuate significantly over short periods of time for a number of reasons, including changes in interest rates, intervention (or the failure to intervene) by U.S. or foreign governments, central banks or supranational entities such as the International Monetary Fund, or by the imposition of currency controls or other political developments in the United States or abroad. As a result, a Fund’s (or Acquired Funds’) investments in foreign currency-denominated securities may reduce the returns of the Fund (or Acquired Funds).
A Fund’s (or Acquired Funds’) investments in commodity-linked financial derivative instruments may subject the Fund (or Acquired Funds) to greater market price volatility than investments in traditional securities. The value of commodity-linked financial derivative instruments may be affected by changes in overall market movements, commodity index volatility, changes in interest rates, or factors affecting a particular industry or commodity, such as drought, floods, weather, livestock disease, embargoes, tariffs and international economic, political and regulatory developments.
Credit and Counterparty Risks A Fund (or Acquired Funds) will be exposed to credit risk to parties with whom it trades and will also bear the risk of settlement default. A Fund (or Acquired Funds) minimizes concentrations of credit risk by undertaking transactions with a large number of customers and counterparties on recognized and reputable
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exchanges where applicable. For derivatives traded on exchanges, the primary credit risk is the creditworthiness of a Fund’s clearing broker or the exchange itself. A Fund (or Acquired Funds) could lose money if the issuer or guarantor of a fixed income security, or the counterparty to a financial derivatives contract, repurchase agreement or a loan of portfolio securities, is unable or unwilling to make timely principal and/or interest payments, or to otherwise honor its obligations. Securities are subject to varying degrees of credit risk, which are often reflected in credit ratings.
Similar to credit risk, a Fund (or Acquired Funds) may be exposed to counterparty risk, or the risk that an institution or other entity with which the Fund (or Acquired Funds) has unsettled or open transactions will default. PIMCO, as the Adviser, minimizes counterparty risks to the Funds (or Acquired Funds) through a number of ways. Prior to entering into transactions with a new counterparty, the PIMCO Counterparty Risk Committee conducts an extensive credit review of such counterparty and must approve the use of such counterparty. Furthermore, pursuant to the terms of the underlying contract, to the extent that unpaid amounts owed to a Fund (or Acquired Funds) exceed a predetermined threshold, such counterparty shall advance collateral to the Fund (or Acquired Funds) in the form of cash or securities equal in value to the unpaid amount owed to the Fund (or Acquired Funds). A Fund (or Acquired Funds) may invest such collateral in securities or other instruments and will typically pay interest to the counterparty on the collateral received. If the unpaid amount owed to a Fund (or Acquired Funds) subsequently decreases, the Fund (or Acquired Funds) would be required to return to the counterparty all or a portion of the collateral previously advanced.
All transactions in listed securities are settled/paid for upon delivery using approved counterparties. The risk of default is considered minimal, as delivery of securities sold is only made once a Fund (or Acquired Funds) has received payment. Payment is made on a purchase once the securities have been delivered by the counterparty. The trade will fail if either party fails to meet its obligation.
Master Netting Arrangements A Fund may be subject to various netting arrangements with select counterparties (“Master Agreements”). Master Agreements govern the terms of certain transactions, and reduce the counterparty risk associated with relevant transactions by specifying credit protection mechanisms and providing standardization that improves legal certainty. Each type of Master Agreement governs certain types of transactions. Different types of transactions may be traded out of different legal entities or affiliates of a particular organization, resulting in the need for multiple agreements with a single counterparty. As the Master Agreements are specific to unique operations of different asset types, they allow a Fund to close out and net its total exposure to a counterparty in the event of a default with respect to all the transactions governed under a single Master Agreement with a counterparty. For
financial reporting purposes the Statements of Assets and Liabilities generally show derivative assets and liabilities on a gross basis, which reflects the full risks and exposures prior to netting.
Master Agreements can also help limit counterparty risk by specifying collateral posting arrangements at pre-arranged exposure levels. Under the Master Agreements, collateral is routinely transferred if the total net exposure to certain transactions (net of existing collateral already in place) governed under the relevant Master Agreement with a counterparty in a given account exceeds a specified threshold, which typically ranges from zero to $250,000 depending on the counterparty and the type of Master Agreement. United States Treasury Bills and U.S. dollar cash are generally the preferred forms of collateral, although other forms of AAA rated paper or sovereign securities may be used. Securities and cash pledged as collateral are reflected as assets on the Statements of Assets and Liabilities as either a component of Investments at value (securities) or Deposits due from Counterparties (cash). Cash collateral received is not typically held in a segregated account and as such is reflected as a liability on the Statements of Assets and Liabilities as Deposits due to Counterparties. The market value of any securities received as collateral is not reflected as a component of NAV. A Fund’s overall exposure to counterparty risk can change substantially within a short period, as it is affected by each transaction subject to the relevant Master Agreement.
Master Repurchase Agreements and Global Master Repurchase Agreements (individually and collectively “Master Repo Agreements”) govern repurchase, reverse repurchase, and sale-buyback transactions between a Fund and select counterparties. Master Repo Agreements maintain provisions for, among other things, initiation, income payments, events of default, and maintenance of collateral. The market value of transactions under the Master Repo Agreement, collateral pledged or received, and the net exposure by counterparty as of period end are disclosed in the Notes to Schedule of Investments.
Master Securities Forward Transaction Agreements (“Master Forward Agreements”) govern certain forward settling transactions, such as To-Be-Announced securities, delayed-delivery or sale-buyback transactions by and between a Fund and select counterparties. The Master Forward Agreements maintain provisions for, among other things, initiation and confirmation, payment and transfer, events of default, termination, and maintenance of collateral. The market value of forward settling transactions, collateral pledged or received, and the net exposure by counterparty as of period end is disclosed in the Notes to Schedule of Investments.
Customer Account Agreements and related addendums govern cleared derivatives transactions such as futures, options on futures, and cleared Over the Counter (“OTC”) derivatives. Such transactions require posting of initial margin as determined by each relevant clearing
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agency which is segregated at a broker account registered with the Commodity Futures Trading Commission (“CFTC”), or the applicable regulator. In the United States, counterparty risk is significantly reduced as creditors of a futures broker cannot have a claim to Fund assets in the segregated account. Additionally, portability of exposure in the event of a default scenario further reduces risk to the Funds. Variation margin, or changes in market value, are exchanged daily, but may not be netted between futures and cleared OTC derivatives. The market value or accumulated unrealized appreciation or depreciation, initial margin posted, and any unsettled variation margin as of period end is disclosed in the Notes to Schedule of Investments.
Prime Broker Arrangements may be entered into to facilitate execution and/or clearing of listed equity option transactions or short sales of equity securities between a Fund and selected counterparties. The arrangements provide guidelines surrounding the rights, obligations, and other events, including, but not limited to, margin, execution, and settlement. These agreements maintain provisions for, among other things, payments, maintenance of collateral, events of default, and termination. Margin and other assets delivered as collateral are typically in the possession of the prime broker and would offset any obligations due to the prime broker. The market values of listed options and securities sold short and related collateral are disclosed in the Notes to Schedule of Investments.
International Swaps and Derivatives Association, Inc. Master Agreements and Credit Support Annexes (“ISDA Master Agreements”) govern OTC derivative transactions entered into by a Fund with select counterparties. ISDA Master Agreements maintain provisions for general obligations, representations, agreements, collateral and events of default or termination. Events of termination include conditions that may entitle counterparties to elect to terminate early and cause settlement of all outstanding transactions under the applicable ISDA Master Agreement. Any election to terminate early could be material to the financial statements. In limited circumstances, the ISDA Master Agreement may contain additional provisions that add counterparty protection beyond coverage of existing daily exposure if the counterparty has a decline in credit quality below a predefined level. These amounts, if any, may be segregated with a third-party custodian. The market value of OTC financial derivative instruments, collateral received or pledged, and net exposure by counterparty as of period end are disclosed in the Notes to Schedule of Investments.
8. BASIS FOR CONSOLIDATION
PIMCO Cayman Commodity Fund VI, Ltd. ( a “Commodity Subsidiary”), Cayman Islands exempted company, was incorporated as a wholly owned subsidiary acting as an investment vehicle for the PIMCO EqS Pathfinder Fund® (“Consolidated Fund”) in order to effect certain investments for the Consolidated Fund consistent with the Consolidated Fund’s investment objectives and policies as specified in their respective
prospectus and statement of additional information. The Consolidated Fund’s investment portfolio has been consolidated and includes the portfolio holdings of the Consolidated Fund and the Commodity Subsidiary, if any. PIMCO Cayman Commodity Fund VI, Ltd. was liquidated on May 26, 2015 at its net asset value. The Commodity Subsidiary’s operations have been consolidated with the operations of the Consolidated Fund through its liquidation date. The consolidated financial statements include the accounts of the Consolidated Fund and its Commodity Subsidiary. All inter-company transactions and balances have been eliminated. A subscription agreement was entered into between the Consolidated Fund and its Commodity Subsidiary, comprising the entire issued share capital of the Commodity Subsidiary, with the intent that the Consolidated Fund will remain the sole shareholder and retain all rights. Under the Memorandum and Articles of Association of the Commodity Subsidiary, shares issued by the Commodity Subsidiary confer upon a shareholder the right to receive notice of, to attend and to vote at general meetings of the Commodity Subsidiary and shall confer upon the shareholder rights in a winding-up or repayment of capital and the right to participate in the profits or assets of the Commodity Subsidiary. See the table below for details regarding the structure, incorporation and relationship as of period end of the Commodity Subsidiary to the Consolidated Fund (amounts in thousands†).
PIMCO EqS Pathfinder Fund® | ||||||
PIMCO Cayman Commodity Fund VI, Ltd. | ||||||
Date of Incorporation | 06/06/2011 | |||||
Subscription Agreement | 06/20/2011 | |||||
Consolidated Fund Net Assets | $ | 93,555 | ||||
Subsidiary % of Consolidated Fund Net Assets | 0.0% | |||||
Subsidiary Financial Statement Information | ||||||
Total assets | $ | 0 | ||||
Total liabilities | 0 | |||||
Net assets | $ | 0 | ||||
Total income | 0 | |||||
Net investment income (loss) | 0 | |||||
Net realized gain (loss) | 0 | |||||
Net change in unrealized appreciation (depreciation) | 0 | |||||
Increase (decrease) in net assets resulting from operations | $ | 0 |
† | A zero balance may reflect actual amounts rounding to less than one thousand. |
9. FEES AND EXPENSES
(a) Investment Advisory Fee PIMCO is a majority-owned subsidiary of Allianz Asset Management of America L.P. (“Allianz Asset Management”) and serves as the Adviser to the Trust, pursuant to an investment advisory contract. The Adviser receives a monthly fee from each Fund at an annual rate based on average daily net assets (the “Investment Advisory Fee”). The Investment Advisory Fee for all classes is charged at an annual rate as noted in the table below.
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(b) Supervisory and Administrative Fee PIMCO serves as administrator (the “Administrator”) and provides supervisory and administrative services to the Trust for which it receives a monthly supervisory and administrative fee based on each share class’s average
daily net assets (the “Supervisory and Administrative Fee”). As the Administrator, PIMCO bears the costs of various third-party services, including audit, custodial, portfolio accounting, legal, transfer agency and printing costs.
The Investment Advisory and Supervisory and Administrative Fees for all classes are charged at an annual rate as noted in the following table:
Investment Advisory Fee | Supervisory and Administrative Fee | |||||||||||||||||||||||||||
Fund Name | All Classes | Institutional Class | Class P | Administrative Class | Class D | A, C and R Classes | ||||||||||||||||||||||
PIMCO Balanced Income Fund | 0.60% | 0.30% | 0.40% | N/A | 0.40% | 0.40% | ||||||||||||||||||||||
PIMCO Dividend and Income Builder Fund | 0.69% | 0.30% | 0.40% | N/A | 0.40% | 0.40% | ||||||||||||||||||||||
PIMCO Emerging Multi-Asset Fund | 0.90% | 0.45% | 0.55% | 0.45% | 0.55% | 0.55% | ||||||||||||||||||||||
PIMCO EqS® Emerging Markets Fund | 1.00% | 0.45% | 0.55% | 0.45% | 0.55% | 0.55% | ||||||||||||||||||||||
PIMCO EqS® Long/Short Fund | 1.04% | 0.45% | 0.55% | N/A | 0.55% | 0.55% | ||||||||||||||||||||||
PIMCO Global Dividend Fund | 0.69% | 0.30% | 0.40% | N/A | 0.40% | 0.40% | ||||||||||||||||||||||
PIMCO International Dividend Fund | 0.69% | 0.30% | 0.40% | N/A | 0.40% | 0.40% | ||||||||||||||||||||||
PIMCO U.S. Dividend Fund | 0.60% | 0.30% | 0.40% | N/A | 0.40% | 0.40% | ||||||||||||||||||||||
PIMCO EqS Pathfinder Fund® | 0.75% | 0.30% | 0.40% | N/A | 0.40% | 0.40% |
(c) Distribution and Servicing Fees PIMCO Investments LLC (“PI”), a wholly-owned subsidiary of PIMCO, serves as the distributor (“Distributor”) of the Trust’s shares.
The Trust has adopted separate Distribution and Servicing Plans with respect to the Class A, Class C and Class R shares of the Trust pursuant to Rule 12b-1 under the Act. In connection with the distribution of Class C and Class R shares of the Trust, the Distributor receives distribution fees from the Trust of up to 0.75% for Class C shares and 0.25% for Class R shares, and in connection with personal services rendered to Class A, Class C and Class R shareholders and the maintenance of such shareholder accounts, the Distributor receives servicing fees from the Trust of up to 0.25% for each of Class A, Class C and Class R shares (percentages reflect annual rates of the average daily net assets attributable to the applicable class).
The Trust has adopted a Distribution and Servicing Plan with respect to the Class D shares of each Fund pursuant to Rule 12b-1 under the Act
(the “Class D Plan”). Under the terms of the Class D Plan, a Fund is permitted to compensate the Distributor out of the assets attributable to the Class D shares of the Fund, in an amount up to 0.25% on an annual basis of the average daily net assets of the Fund’s Class D shares for providing, or procuring through financial intermediaries, distribution, shareholder services, and/or maintenance of shareholder accounts with respect to Class D shareholders of the Fund, some of which may be deemed to be primarily intended to result in the sale of Class D shares.
The Trust has adopted a Distribution and Servicing Plan with respect to the Administrative Class shares of each Fund pursuant to Rule 12b-1 under the Act (the “Administrative Class Plan”). Under the terms of the Administrative Class Plan, a Fund may compensate the Distributor for
providing, or procuring through financial intermediaries, distribution, administrative, recordkeeping, shareholder and/or related services with respect to Administrative Class shares. The Administrative Class Plan permits a Fund to make total payments at an annual rate of up to 0.25% of the average daily net assets attributable to the Administrative Class shares.
The Trust paid distribution and servicing fees at effective rates as set forth in the following table (calculated as a percentage of each Fund’s average daily net assets attributable to each class):
Distribution Fee | Servicing Fee | |||||||||
Administrative Class | — | 0.25% | ||||||||
Class D | — | 0.25% | ||||||||
Class A | — | 0.25% | ||||||||
Class C | 0.75% | 0.25% | ||||||||
Class R | 0.25% | 0.25% |
The Distributor also received the proceeds of the initial sales charges paid by the shareholders upon the purchase of Class A shares and the contingent deferred sales charges paid by the shareholders upon certain redemptions of Class A and Class C shares. For the period ended June 30, 2015, the Distributor retained $360,600 representing commissions (sales charges) and contingent deferred sales charges from the Trust.
(d) Fund Expenses PIMCO provides or procures supervisory and administrative services for shareholders and also bears the costs of various third-party services required by the Funds, including audit, custodial, portfolio accounting, legal, transfer agency and printing costs. The Trust is responsible for the following expenses: (i) taxes and governmental fees; (ii) brokerage fees and commissions and other portfolio transaction expenses; (iii) the costs of borrowing money,
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including interest expense; (iv) fees and expenses of the Trustees who are not “interested persons” of PIMCO or the Trust, and any counsel retained exclusively for their benefit; (v) extraordinary expense, including costs of litigation and indemnification expenses; (vi) organizational expenses; and (vii) any expenses allocated or allocable to a specific class of shares, which include service fees payable with respect to the Administrative Class Shares, and may include certain other expenses as permitted by the Trust’s Multi-Class Plan adopted pursuant to Rule 18f-3 under the Act and subject to review and approval by the Trustees. The ratio of expenses to average net assets per share class, as disclosed on the Financial Highlights, may differ from the annual fund operating expenses per share class as disclosed in the Prospectus for the reasons set forth above.
Each unaffiliated Trustee receives an annual retainer of $62,000, plus $6,250 for each Board meeting attended in person, $375 ($750 in the case of the audit committee chair with respect to audit committee meetings) for each committee meeting attended, plus reimbursement of related expenses. In addition, the audit committee chair receives an additional annual retainer of $9,000, the valuation oversight committee lead receives an additional annual retainer of $2,000 (to the extent there are co-leads of the valuation oversight committee, the annual retainer will be split evenly between the co-leads) and the governance committee chair receives an additional annual retainer of $750.
These expenses are allocated on a pro rata basis to each Fund of the Trust according to its respective net assets. The Trust pays no compensation directly to any Trustee or any other officer who is affiliated with the Administrator, all of whom receive remuneration for their services to the Trust from the Administrator or its affiliates.
(e) Expense Limitation PIMCO has agreed to waive a portion of the Funds’ Supervisory and Administrative Fees in each Fund’s first fiscal year, to the extent that the payment of each Fund’s pro rata share of organizational expenses and Trustee Fees cause the actual expense ratio to rise above the rates disclosed in the then-current prospectus plus 0.0049% (calculated as a percentage of each Fund’s average daily net assets attributable to each class).
PIMCO has contractually agreed to waive a portion of the Investment Advisory Fee as set forth in the following table (calculated as a percentage of each Fund’s average daily net assets).
Fund Name | Fee Waiver | Date | ||||||||
PIMCO Balanced Income Fund | 0.15% | 10/31/2015 | ||||||||
PIMCO Dividend and Income Builder Fund | 0.16% | 10/31/2015 | ||||||||
PIMCO EqS® Emerging Markets Fund | 0.20% | 10/31/2015 | ||||||||
PIMCO Global Dividend Fund | 0.16% | 10/31/2015 | ||||||||
PIMCO International Dividend Fund | 0.16% | 10/31/2016 | ||||||||
PIMCO U.S. Dividend Fund | 0.16% | 10/31/2016 | ||||||||
PIMCO EqS Pathfinder Fund® | 0.16% | 10/31/2015 |
Under the Fee Limitation Agreement, PIMCO is entitled to reimbursement by each Fund of any portion of the Supervisory and Administrative Fee and/or Investment Advisory Fee waived, reduced or reimbursed pursuant to the Fee Limitation Agreement (the “Reimbursement Amount”) during the previous three years, provided that such amount paid to PIMCO will not: 1) together with any recoupment of organizational expenses and pro rata Trustees’ fees pursuant to the Expense Limitation Agreement, exceed the Expense Limit; 2) exceed the total Reimbursement Amount; or 3) include any amounts previously reimbursed to PIMCO. The Fee Limitation Agreement will automatically renew for one-year terms unless PIMCO provides written notice to the Trust at least 30 days prior to the end of the then current term.
PIMCO may be reimbursed for these waived amounts in future periods, not to exceed thirty-six months after the waiver. Expenses that have been waived may still be reimbursed by the Administrator, to the extent the Fund’s annualized total portfolio operating expenses plus the amount reimbursed does not exceed the operating expense limitation. The recoverable amounts to PIMCO at June 30, 2015, were as follows (amounts in thousands):
Fund Name | Recoverable Amounts | |||||
PIMCO Balanced Income Fund | $ | 151 | ||||
PIMCO Dividend and Income Builder Fund | 120 | |||||
PIMCO Emerging Multi-Asset Fund | 11 | |||||
PIMCO EqS® Emerging Markets Fund | 81 | |||||
PIMCO EqS® Long/Short Fund | 161 | |||||
PIMCO Global Dividend Fund | 95 | |||||
PIMCO International Dividend Fund | 86 | |||||
PIMCO U.S. Dividend Fund | 84 | |||||
PIMCO EqS Pathfinder Fund® | 313 |
(f) Acquired Fund Fees and Expenses The Underlying PIMCO Fund expenses for the PIMCO Emerging Multi-Asset Fund are based upon an allocation of the PIMCO Emerging Multi-Asset Fund’s assets among the Underlying PIMCO Funds and upon the total annual operating expenses of the Institutional Class shares of these Underlying PIMCO Funds. Underlying PIMCO Fund expenses will vary with changes in the expenses of the Underlying PIMCO Funds, as well as the allocation of the PIMCO Emerging Multi-Asset Fund’s assets.
PIMCO has contractually agreed, through October 31, 2015, to waive, first, the Investment Advisory Fee and, second, to the extent necessary, the Supervisory and Administrative Fee it receives from the PIMCO Emerging Multi-Asset Fund in an amount equal to the expenses attributable to Investment Advisory and Supervisory and Administrative Fees of Underlying PIMCO Funds indirectly incurred by the Fund in connection with the Fund’s investments in Underlying PIMCO Funds, to the extent the Investment Advisory Fee and Supervisory and Administrative Fees taken together are greater than or equal to the
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Investment Advisory Fees and Supervisory and Administrative Fees of the Underlying PIMCO Funds. This agreement renews annually for a full year unless terminated by PIMCO upon at least 30 days’ notice prior to the end of the contract term. The waivers are reflected in the Statements of Operations as a component of Waiver and/or Reimbursement by PIMCO. For the period ended June 30, 2015, the amount was $258,163.
The Commodity Subsidiary has entered into a separate contract with PIMCO for the management of the Commodity Subsidiary’s portfolio pursuant to which the Commodity Subsidiary pays PIMCO a management fee and administrative services fee at the annual rate of 0.49%, respectively, of its net assets. PIMCO has contractually agreed to waive the Investment Advisory Fee and Supervisory and Administrative Fees it receives from the Commodity Subsidiary in an amount equal to the management fee and administrative services fee, respectively, paid to PIMCO by the Commodity Subsidiary. This waiver may not be terminated by PIMCO and will remain in effect for as long as PIMCO’s contract with the Commodity Subsidiary is in place. The waiver is reflected in the Consolidated Statements of Operations as a component of Waiver and/or Reimbursement by PIMCO. During the period ended June 30, 2015, the amount was $60.
10. RELATED PARTY TRANSACTIONS
The Adviser, Administrator, and Distributor are related parties. Fees payable to these parties are disclosed in Note 9 and the accrued related party fee amounts are disclosed on the Statements of Assets and Liabilities.
Certain Funds are permitted to purchase or sell securities from or to certain related affiliated funds under specified conditions outlined in procedures adopted by the Board of Trustees of the Trust. The procedures have been designed to ensure that any purchase or sale of securities by the Funds from or to another fund or portfolio that are, or could be, considered an affiliate by virtue of having a common investment adviser (or affiliated investment advisers), common Trustees
and/or common officers complies with Rule 17a-7 of the Act. Further, as defined under the procedures, each transaction is effected at the current market price. During the period ended June 30, 2015, the Funds below engaged in purchases and sales of securities pursuant to Rule 17a-7 of the Act (amounts in thousands†):
Fund Name | Purchases | Sales | ||||||||
PIMCO Dividend and Income Builder Fund | $ | 5,547 | $ | 3,816 |
11. GUARANTEES AND INDEMNIFICATIONS
Under the Trust’s organizational documents, each Trustee or officer of the Trust is indemnified and each employee or other agent of the Trust (including the Trust’s investment manager) may be indemnified, to the extent permitted by the Act, against certain liabilities that may arise out of performance of their duties to the Funds. Additionally, in the normal course of business, the Funds enter into contracts that contain a variety of indemnification clauses. The Funds’ maximum exposure under these arrangements is unknown as this would involve future claims that may be made against the Funds that have not yet occurred. However, the Funds have not had prior claims or losses pursuant to these contracts.
12. PURCHASES AND SALES OF SECURITIES
The length of time a Fund has held a particular security is not generally a consideration in investment decisions. A change in the securities held by a Fund is known as “portfolio turnover.” Each Fund may engage in frequent and active trading of portfolio securities to achieve its investment objective, particularly during periods of volatile market movements. High portfolio turnover involves correspondingly greater expenses to a Fund, including brokerage commissions or dealer mark-ups and other transaction costs on the sale of securities and reinvestments in other securities. Such sales may also result in realization of taxable capital gains, including short-term capital gains (which are generally taxed at ordinary income tax rates). The trading costs and tax effects associated with portfolio turnover may adversely affect a Fund’s performance. The portfolio turnover rates are reported in the Financial Highlights.
Purchases and sales of securities (excluding short-term investments) for the period ended June 30, 2015, were as follows (amounts in thousands†):
U.S. Government/Agency | All Other | |||||||||||||||||
Fund Name | Purchases | Sales | Purchases | Sales | ||||||||||||||
PIMCO Balanced Income Fund | $ | 202 | $ | 4 | $ | 14,802 | $ | 6,072 | ||||||||||
PIMCO Dividend and Income Builder Fund | 0 | 0 | 898,315 | 862,567 | ||||||||||||||
PIMCO Emerging Multi-Asset Fund | 2,418 | 2,433 | 1,921 | 29,456 | ||||||||||||||
PIMCO EqS® Emerging Markets Fund | 0 | 0 | 63,978 | 166,749 | ||||||||||||||
PIMCO EqS® Long/Short Fund | 0 | 0 | 5,785,351 | 6,188,969 | ||||||||||||||
PIMCO Global Dividend Fund | 0 | 0 | 146,144 | 420,848 | ||||||||||||||
PIMCO International Dividend Fund | 0 | 0 | 11,651 | 3,564 | ||||||||||||||
PIMCO U.S. Dividend Fund | 0 | 0 | 7,343 | 1,867 | ||||||||||||||
PIMCO EqS Pathfinder Fund® | 0 | 0 | 403,944 | 1,631,755 |
† | A zero balance may reflect actual amounts rounding to less than one thousand. |
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13. SHARES OF BENEFICIAL INTEREST
The Trust may issue an unlimited number of shares of beneficial interest with a $0.0001 par value. Changes in shares of beneficial interest were as follows (shares and amounts in thousands†):
PIMCO Balanced Income Fund (1) | PIMCO Dividend and Income Builder Fund | |||||||||||||||||||||||||||||||||
Year Ended 06/30/2015 | Period From 03/31/2014 to 06/30/2014 | Year Ended 06/30/2015 | Year Ended 06/30/2014 | |||||||||||||||||||||||||||||||
Shares | Amount | Shares | Amount | Shares | Amount | Shares | Amount | |||||||||||||||||||||||||||
Receipts for shares sold | ||||||||||||||||||||||||||||||||||
Institutional Class | 187 | $ | 1,919 | 612 | $ | 6,184 | 1,504 | $ | 19,087 | 4,189 | $ | 51,343 | ||||||||||||||||||||||
Class P | 23 | 227 | 1 | 11 | 7,885 | 100,872 | 7,009 | 86,769 | ||||||||||||||||||||||||||
Administrative Class | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||||||||
Class D | 43 | 439 | 5 | 49 | 1,954 | 24,794 | 1,576 | 19,423 | ||||||||||||||||||||||||||
Class A | 454 | 4,634 | 31 | 316 | 8,330 | 105,843 | 20,666 | 252,920 | ||||||||||||||||||||||||||
Class C | 406 | 4,097 | 45 | 456 | 8,613 | 108,921 | 24,024 | 292,937 | ||||||||||||||||||||||||||
Class R | 0 | 0 | 0 | 0 | 1 | 14 | 18 | 214 | ||||||||||||||||||||||||||
Issued as reinvestment of distributions | ||||||||||||||||||||||||||||||||||
Institutional Class | 22 | 216 | 3 | 27 | 346 | 4,277 | 236 | 2,997 | ||||||||||||||||||||||||||
Class P | 0 | 3 | 0 | 0 | 409 | 5,058 | 155 | 1,980 | ||||||||||||||||||||||||||
Administrative Class | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||||||||
Class D | 1 | 6 | 0 | 0 | 137 | 1,691 | 79 | 1,000 | ||||||||||||||||||||||||||
Class A | 5 | 49 | 0 | 1 | 1,157 | 14,302 | 579 | 7,382 | ||||||||||||||||||||||||||
Class C | 4 | 45 | 0 | 1 | 1,088 | 13,410 | 424 | 5,424 | ||||||||||||||||||||||||||
Class R | 0 | 0 | 0 | 0 | 2 | 22 | 1 | 12 | ||||||||||||||||||||||||||
Cost of shares redeemed | ||||||||||||||||||||||||||||||||||
Institutional Class | (80 | ) | (808 | ) | (1 | ) | (6 | ) | (3,158 | ) | (39,875 | ) | (3,499 | ) | (43,248 | ) | ||||||||||||||||||
Class P | (10 | ) | (99 | ) | 0 | 0 | (6,531 | ) | (81,608 | ) | (2,501 | ) | (31,140 | ) | ||||||||||||||||||||
Administrative Class | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||||||||
Class D | (8 | ) | (85 | ) | (1 | ) | (5 | ) | (1,226 | ) | (15,462 | ) | (1,175 | ) | (14,640 | ) | ||||||||||||||||||
Class A | (54 | ) | (547 | ) | 0 | (4 | ) | (9,822 | ) | (124,012 | ) | (6,929 | ) | (85,647 | ) | |||||||||||||||||||
Class C | (78 | ) | (786 | ) | 0 | 0 | �� | (7,481 | ) | (93,888 | ) | (4,970 | ) | (61,707 | ) | |||||||||||||||||||
Class R | 0 | 0 | 0 | 0 | (15 | ) | (186 | ) | (3 | ) | (30 | ) | ||||||||||||||||||||||
Net increase (decrease) resulting from Fund share transactions | 915 | $ | 9,310 | 695 | $ | 7,030 | 3,193 | $ | 43,260 | 39,879 | $ | 485,989 | ||||||||||||||||||||||
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PIMCO Emerging Multi-Asset Fund | PIMCO EqS® Emerging Markets Fund | PIMCO EqS® Long/Short Fund (2) | ||||||||||||||||||||||||||||||||||||||||||||
Year Ended 06/30/2015 | Year Ended 06/30/2014 | Year Ended 06/30/2015 | Year Ended 06/30/2014 | Year Ended 06/30/2015 | Year Ended 06/30/2014 | |||||||||||||||||||||||||||||||||||||||||
Shares | Amount | Shares | Amount | Shares | Amount | Shares | Amount | Shares | Amount | Shares | Amount | |||||||||||||||||||||||||||||||||||
111 | $ | 984 | 395 | $ | 3,452 | 522 | $ | 4,613 | 13,465 | $ | 112,700 | 4,616 | $ | 54,428 | 25,485 | $ | 307,495 | |||||||||||||||||||||||||||||
91 | 798 | 79 | 685 | 36 | 327 | 299 | 2,635 | 18,402 | 216,705 | 28,084 | 337,222 | |||||||||||||||||||||||||||||||||||
(1 | ) | 0 | 13 | 107 | 0 | 0 | 0 | 2 | 0 | 0 | 0 | 0 | ||||||||||||||||||||||||||||||||||
10 | 89 | 175 | 1,521 | 51 | 442 | 250 | 2,104 | 2,701 | 31,509 | 14,367 | 171,591 | |||||||||||||||||||||||||||||||||||
109 | 921 | 378 | 3,256 | 113 | 1,012 | 410 | 3,496 | 3,937 | 46,184 | 39,367 | 468,634 | |||||||||||||||||||||||||||||||||||
34 | 275 | 121 | 1,041 | 66 | 564 | 161 | 1,368 | 3,298 | 38,089 | 20,087 | 237,386 | |||||||||||||||||||||||||||||||||||
0 | 0 | 0 | 0 | 0 | 1 | 0 | 1 | 0 | 0 | 0 | 0 | |||||||||||||||||||||||||||||||||||
102 | 825 | 54 | 469 | 0 | 0 | 0 | 0 | 163 | 1,887 | 2,198 | 26,087 | |||||||||||||||||||||||||||||||||||
8 | 61 | 4 | 33 | 0 | 0 | 0 | 0 | 108 | 1,248 | 449 | 5,314 | |||||||||||||||||||||||||||||||||||
0 | 0 | 4 | 31 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||||||||||||||||||||||||
5 | 40 | 10 | 89 | 0 | 0 | 0 | 0 | 22 | 247 | 261 | 3,080 | |||||||||||||||||||||||||||||||||||
27 | 217 | 20 | 175 | 0 | 0 | 0 | 0 | 83 | 957 | 779 | 9,186 | |||||||||||||||||||||||||||||||||||
13 | 106 | 6 | 53 | 0 | 0 | 0 | 0 | 70 | 784 | 452 | 5,276 | |||||||||||||||||||||||||||||||||||
0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||||||||||||||||||||||||
(2,116 | ) | (17,248 | ) | (2,346 | ) | (20,139 | ) | (12,405 | ) | (110,054 | ) | (61,620 | ) | (527,651 | ) | (25,702 | ) | (299,684 | ) | (11,631 | ) | (138,097 | ) | |||||||||||||||||||||||
(231 | ) | (1,939 | ) | (142 | ) | (1,224 | ) | (28 | ) | (239 | ) | (1,215 | ) | (9,891 | ) | (24,620 | ) | (285,630 | ) | (6,576 | ) | (77,557 | ) | |||||||||||||||||||||||
(1 | ) | (10 | ) | (254 | ) | (2,122 | ) | 0 | 0 | (5 | ) | (42 | ) | 0 | 0 | 0 | 0 | |||||||||||||||||||||||||||||
(221 | ) | (1,932 | ) | (574 | ) | (4,944 | ) | (68 | ) | (593 | ) | (292 | ) | (2,491 | ) | (5,605 | ) | (64,780 | ) | (9,167 | ) | (107,763 | ) | |||||||||||||||||||||||
(729 | ) | (6,140 | ) | (970 | ) | (8,347 | ) | (564 | ) | (4,877 | ) | (223 | ) | (1,892 | ) | (21,852 | ) | (254,288 | ) | (10,075 | ) | (118,408 | ) | |||||||||||||||||||||||
(295 | ) | (2,441 | ) | (304 | ) | (2,577 | ) | (152 | ) | (1,283 | ) | (99 | ) | (810 | ) | (9,708 | ) | (110,601 | ) | (3,031 | ) | (35,277 | ) | |||||||||||||||||||||||
0 | 0 | (3 | ) | (21 | ) | 0 | (2 | ) | (2 | ) | (16 | ) | 0 | 0 | 0 | 0 | ||||||||||||||||||||||||||||||
(3,084 | ) | $ | (25,394 | ) | (3,334 | ) | $ | (28,462 | ) | (12,429 | ) | $ | (110,089 | ) | (48,871 | ) | $ | (420,487 | ) | (54,087 | ) | $ | (622,945 | ) | 91,049 | $ | 1,094,169 | |||||||||||||||||||
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PIMCO Global Dividend Fund (3) | PIMCO International Dividend Fund (4) | |||||||||||||||||||||||||||||||||
Year Ended 06/30/2015 | Year Ended 06/30/2014 | Period From 12/15/2014 to 06/30/2015 | Year Ended 06/30/2014 | |||||||||||||||||||||||||||||||
Shares | Amount | Shares | Amount | Shares | Amount | Shares | Amount | |||||||||||||||||||||||||||
Receipts for shares sold | ||||||||||||||||||||||||||||||||||
Institutional Class | 1,476 | $ | 13,197 | 3,183 | $ | 38,926 | 436 | $ | 4,410 | 0 | $ | 0 | ||||||||||||||||||||||
Class P | 281 | 2,945 | 476 | 5,837 | 497 | 5,519 | 0 | 0 | ||||||||||||||||||||||||||
Administrative Class | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||||||||
Class D | 83 | 749 | 346 | 4,217 | 24 | 260 | 0 | 0 | ||||||||||||||||||||||||||
Class A | 2,242 | 19,211 | 4,048 | 49,865 | 100 | 1,095 | 0 | 0 | ||||||||||||||||||||||||||
Class C | 1,178 | 10,003 | 3,424 | 41,893 | 58 | 627 | 0 | 0 | ||||||||||||||||||||||||||
Class R | 1 | 7 | 5 | 72 | 0 | 0 | 0 | 0 | ||||||||||||||||||||||||||
Issued as reinvestment of distributions | ||||||||||||||||||||||||||||||||||
Institutional Class | 3,460 | 25,542 | 3,588 | 43,261 | 6 | 65 | 0 | 0 | ||||||||||||||||||||||||||
Class P | 278 | 2,029 | 29 | 350 | 1 | 15 | 0 | 0 | ||||||||||||||||||||||||||
Administrative Class | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||||||||
Class D | 283 | 2,071 | 68 | 827 | 0 | 2 | 0 | 0 | ||||||||||||||||||||||||||
Class A | 2,622 | 19,146 | 378 | 4,569 | 0 | 5 | 0 | 0 | ||||||||||||||||||||||||||
Class C | 1,868 | 13,534 | 234 | 2,814 | 0 | 3 | 0 | 0 | ||||||||||||||||||||||||||
Class R | 8 | 59 | 1 | 9 | 0 | 0 | 0 | 0 | ||||||||||||||||||||||||||
Cost of shares redeemed | ||||||||||||||||||||||||||||||||||
Institutional Class | (20,589 | ) | (252,716 | ) | (32,005 | ) | (393,029 | ) | 0 | 0 | 0 | 0 | ||||||||||||||||||||||
Class P | (489 | ) | (3,951 | ) | (341 | ) | (4,165 | ) | (333 | ) | (3,588 | ) | 0 | 0 | ||||||||||||||||||||
Administrative Class | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||||||||
Class D | (655 | ) | (6,018 | ) | (469 | ) | (5,867 | ) | (1 | ) | (16 | ) | 0 | 0 | ||||||||||||||||||||
Class A | (4,386 | ) | (40,315 | ) | (2,116 | ) | (25,890 | ) | (5 | ) | (56 | ) | 0 | 0 | ||||||||||||||||||||
Class C | (2,419 | ) | (21,403 | ) | (1,771 | ) | (21,370 | ) | (1 | ) | (16 | ) | 0 | 0 | ||||||||||||||||||||
Class R | (16 | ) | (137 | ) | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||||||
Net increase (decrease) resulting from Fund share transactions | (14,774 | ) | $ | (216,047 | ) | (20,922 | ) | $ | (257,681 | ) | 782 | $ | 8,325 | 0 | $ | 0 | ||||||||||||||||||
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PIMCO U.S. Dividend Fund (5) | PIMCO EqS Pathfinder Fund® | |||||||||||||||||||||||||||||
Period From 12/15/2014 to 06/30/2015 | Year Ended 06/30/2014 | Year Ended 06/30/2015 | Year Ended 06/30/2014 | |||||||||||||||||||||||||||
Shares | Amount | Shares | Amount | Shares | Amount | Shares | Amount | |||||||||||||||||||||||
410 | $ | 4,113 | 0 | $ | 0 | 7,430 | $ | 92,710 | 75,318 | $ | 884,620 | |||||||||||||||||||
1 | 10 | 0 | 0 | 729 | 8,197 | 2,101 | 24,607 | |||||||||||||||||||||||
0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||||||||||||
7 | 69 | 0 | 0 | 211 | 2,454 | 390 | 4,500 | |||||||||||||||||||||||
78 | 817 | 0 | 0 | 927 | 10,109 | 2,414 | 28,403 | |||||||||||||||||||||||
62 | 649 | 0 | 0 | 870 | 9,122 | 2,336 | 26,962 | |||||||||||||||||||||||
0 | 0 | 0 | 0 | 3 | 25 | 4 | 43 | |||||||||||||||||||||||
5 | 56 | 0 | 0 | 25,442 | 239,042 | 7,387 | 86,726 | |||||||||||||||||||||||
0 | 0 | 0 | 0 | 518 | 4,842 | 205 | 2,400 | |||||||||||||||||||||||
0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||||||||||||
0 | 0 | 0 | 0 | 313 | 2,901 | 50 | 587 | |||||||||||||||||||||||
0 | 4 | 0 | 0 | 1,612 | 14,982 | 189 | 2,209 | |||||||||||||||||||||||
0 | 2 | 0 | 0 | 1,261 | 11,362 | 116 | 1,324 | |||||||||||||||||||||||
0 | 0 | 0 | 0 | 2 | 18 | 0 | 0 | |||||||||||||||||||||||
0 | (3 | ) | 0 | 0 | (126,704 | ) | (1,295,658 | ) | (142,724 | ) | (1,714,685 | ) | ||||||||||||||||||
0 | 0 | 0 | 0 | (2,647 | ) | (27,743 | ) | (5,697 | ) | (68,114 | ) | |||||||||||||||||||
0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||||||||||||
(5 | ) | (49 | ) | 0 | 0 | (1,067 | ) | (10,773 | ) | (1,005 | ) | (11,718 | ) | |||||||||||||||||
(4 | ) | (42 | ) | 0 | 0 | (5,897 | ) | (60,485 | ) | (1,763 | ) | (20,894 | ) | |||||||||||||||||
(2 | ) | (21 | ) | 0 | 0 | (4,174 | ) | (40,824 | ) | (1,076 | ) | (12,464 | ) | |||||||||||||||||
0 | 0 | 0 | 0 | (6 | ) | (55 | ) | 0 | 0 | |||||||||||||||||||||
552 | $ | 5,605 | 0 | $ | 0 | (101,177 | ) | $ | (1,039,774 | ) | (61,755 | ) | $ | (765,494 | ) | |||||||||||||||
(1) | As of June 30, 2015, one shareholder owned 10% or more of the Fund’s total outstanding shares comprising 20% of the Fund, and the shareholder is a related party of the Fund.* |
(2) | As of June 30, 2015, one shareholder owned 10% or more of the Fund’s total outstanding shares comprising 11% of the Fund, and the shareholder is a related party of the Fund.* |
(3) | As of June 30, 2015, one shareholder owned 10% or more of the Fund’s total outstanding shares comprising 29% of the Fund, and the shareholder is a related party of the Fund.* |
(4) | As of June 30, 2015, one shareholder owned 10% or more of the Fund’s total outstanding shares comprising 40% of the Fund, and the shareholder is a related party of the Fund.* |
(5) | As of June 30, 2015, one shareholder owned 10% or more of the Fund’s total outstanding shares comprising 55% of the Fund, and the shareholder is a related party of the Fund.* |
* | Related parties may include, but are not limited to, the investment manager and its affiliates, affiliated broker dealers, fund of funds and directors or employees of the Trust or Adviser. |
† | A zero balance may reflect actual amounts rounding to less than one thousand. |
14. REGULATORY AND LITIGATION MATTERS
The Trust is not named as a defendant in any material litigation or arbitration proceedings and is not aware of any material litigation or claim pending or threatened against it.
PIMCO has received a Wells Notice from the staff of the U.S. Securities and Exchange Commission (“SEC”) that relates to the PIMCO Total Return Active Exchange-Traded Fund (“BOND”), a series of PIMCO ETF Trust. The notice indicates the staff’s preliminary determination to recommend that the SEC commence a civil action against PIMCO stemming from a nonpublic investigation relating to BOND. A Wells Notice is neither a formal allegation of wrongdoing nor a finding that any law was violated.
This matter principally pertains to the valuation of smaller sized positions in non-agency mortgage-backed securities purchased by BOND between its inception on February 29, 2012 and June 30, 2012, BOND’s performance disclosures for that period, and PIMCO’s compliance policies and procedures related to these matters.
The Wells process provides PIMCO with its opportunity to demonstrate to the SEC staff why it believes its conduct was appropriate, in keeping with industry standards, and that no action should be taken. PIMCO believes that this matter is unlikely to have a material adverse effect on any Fund or on PIMCO’s ability to provide investment management services to any Fund.
The foregoing speaks only as of the date of this report.
15. FEDERAL INCOME TAX MATTERS
Each Fund intends to qualify as a regulated investment company under Subchapter M of the Internal Revenue Code (the “Code”) and distribute all of its taxable income and net realized gains, if applicable, to shareholders. Accordingly, no provision for Federal income taxes has been made.
The Funds may be subject to local withholding taxes, including those imposed on realized capital gains. Any applicable foreign capital gains
ANNUAL REPORT | JUNE 30, 2015 | 101 |
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Notes to Financial Statements (Cont.)
tax is accrued daily based upon net unrealized gains, and may be payable following the sale of any applicable investments.
In accordance with U.S. GAAP, the Adviser has reviewed the Funds’ tax positions for all open tax years. As of June 30, 2015, the Funds have recorded no liability for net unrecognized tax benefits relating to uncertain income tax positions they have taken or expect to take in future tax returns.
The Funds file U.S. tax returns. While the statute of limitations remains open to examine the Funds’ U.S. tax returns filed for the fiscal years ending in 2012-2014, no examinations are in progress or anticipated at this time. The Funds are not aware of any tax positions for which it is reasonably possible that the total amounts of unrecognized tax benefits will significantly change in the next twelve months.
The Consolidated Funds may gain exposure to the commodities markets primarily through index-linked notes, and may invest in other commodity-linked derivative investments, including commodity swap agreements, options, futures contracts, options on futures contracts and foreign funds investing in similar commodity-linked derivatives.
One of the requirements for favorable tax treatment as a regulated investment company under the Code is that a Fund must derive at least 90% of its gross income from certain qualifying sources of income. The IRS has issued a revenue ruling which holds that income derived from commodity index-linked swaps is not qualifying income under Subchapter M of the Code. The IRS has also issued private letter rulings
in which the IRS specifically concluded that income from certain commodity index-linked notes is qualifying income. The IRS has also issued private rulings in which the IRS specifically concluded that income derived from investment in a subsidiary, which invests primarily in commodity-linked swaps, will also be qualifying income. Based on the reasoning in such rulings, each Fund will continue to seek to gain exposure to the commodity markets primarily through investments in commodity-linked notes and through any investments in its Subsidiary.
It should be noted, however, that the IRS currently has suspended the issuance of such rulings pending further review. There can be no assurance that the IRS will not change its position that income derived from commodity-linked notes and wholly-owned subsidiaries is qualifying income. Furthermore, the tax treatment of commodity-linked notes, other commodity-linked derivatives, and a Fund’s investments in its Subsidiary may otherwise be adversely affected by future legislation, Treasury Regulations and/or guidance issued by the IRS. Such developments could affect the character, timing and/or amount of the Fund’s taxable income or any distributions made by the Fund or result in the inability of the Fund to operate as described in its Prospectus.
If, during a taxable year, the Commodity Subsidiary’s taxable losses (and other deductible items) exceed its income and gains, the net loss will not pass through to the Fund as a deductible amount for income tax purposes. In the event the Commodity Subsidiary’s taxable gains exceed its losses and other deductible items during a taxable year, the net gain will pass through to the Fund as income for Federal income tax purposes.
As of June 30, 2015, the components of distributable taxable earnings are as follows (amounts in thousands):
Undistributed Ordinary Income | Undistributed Long-Term Capital Gains | Net Tax Basis Unrealized Appreciation/ (Depreciation) (1) | Other Book-to-Tax Accounting Differences (2) | Accumulated Capital Losses (3) | Qualified Late-Year Loss Deferral - Capital (4) | Qualified Late-Year Loss Deferral - Ordinary (5) | ||||||||||||||||||||||||
PIMCO Balanced Income Fund | $ | 257 | $ | 38 | $ | (454 | ) | $ | (3 | ) | $ | — | $ | — | $ | — | ||||||||||||||
PIMCO Dividend and Income Builder Fund | 9,028 | 38,300 | (16,848 | ) | (2,005 | ) | — | — | — | |||||||||||||||||||||
PIMCO Emerging Multi-Asset Fund | — | — | (1,614 | ) | — | (6,100 | ) | — | — | |||||||||||||||||||||
PIMCO EqS® Emerging Markets Fund | — | — | (8 | ) | — | (37,324 | ) | — | (1,175 | ) | ||||||||||||||||||||
PIMCO EqS® Long/Short Fund | — | 9,886 | 33,444 | — | — | — | — | |||||||||||||||||||||||
PIMCO Global Dividend Fund | 2,595 | 10,308 | 1,768 | — | — | — | — | |||||||||||||||||||||||
PIMCO International Dividend Fund | 117 | 3 | (251 | ) | — | — | — | — | ||||||||||||||||||||||
PIMCO US Dividend Fund | 93 | 2 | (122 | ) | — | — | — | — | ||||||||||||||||||||||
PIMCO EqS Pathfinder Fund® | 18,007 | 7,993 | (164 | ) | (3 | ) | (655 | ) | — | — |
(1) | Adjusted for open wash sale loss deferrals and accelerated recognition of unrealized gain on certain futures, forward contracts, partnership investments, adjustments for real estate investment trusts, short dividend expenditures, Lehman adjustments, Return of Capital Distributions from other PIMCO Funds, and Constructive Sale Adjustments for federal income tax purposes. Also adjusted for differences between book and tax realized and unrealized gain/loss on swap contracts. |
(2) | Represents differences in income tax regulations and financial accounting principles generally accepted in the United States of America, namely for straddle loss deferrals, distributions payable at fiscal year-end and organizational costs. |
(3) | Capital losses available to offset future net capital gains expire in varying amounts in the years shown below. |
(4) | Capital losses realized during the period November 1, 2014 through June 30, 2015 which the Fund elected to defer to the following taxable year pursuant to income tax regulations. |
(5) | Specified losses realized during the period November 1, 2014 through June 30, 2015 and Ordinary losses realized during the period January 1, 2015 through June 30, 2015, which the Fund elected to defer to the following taxable year pursuant to income tax regulations. |
Under the Regulated Investment Company Act of 2010, a Fund is permitted to carry forward any new capital losses for an unlimited period. Additionally, such capital losses that are carried forward will retain their character as either short-term or long-term capital losses rather than being considered all short-term under previous law.
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June 30, 2015
As of June 30, 2015, the Funds had the following post-effective capital losses with no expiration:
Short-Term | Long-Term | |||||||||
PIMCO Balanced Income Fund | $ | — | $ | — | ||||||
PIMCO Dividend and Income Builder Fund | — | — | ||||||||
PIMCO Emerging Multi-Asset Fund | 390 | 5,710 | ||||||||
PIMCO EqS® Emerging Markets Fund | 28,573 | 8,751 | ||||||||
PIMCO EqS® Long/Short Fund | — | — | ||||||||
PIMCO Global Dividend Fund | — | — | ||||||||
PIMCO International Dividend Fund | — | — | ||||||||
PIMCO US Dividend Fund | — | — | ||||||||
PIMCO EqS Pathfinder Fund® | 262 | 393 |
As of June 30, 2015, the aggregate cost and the net unrealized appreciation/(depreciation) of investments for federal income tax purposes are as follows (amounts in thousands):
Federal Tax Cost | Unrealized Appreciation | Unrealized (Depreciation) | Net Unrealized Appreciation/ (Depreciation) (6) | |||||||||||||||
PIMCO Balanced Income Fund | $ | 16,659 | $ | 343 | $ | (797 | ) | $ | (454 | ) | ||||||||
PIMCO Dividend and Income Builder Fund | 967,096 | 48,451 | (65,278 | ) | (16,827 | ) | ||||||||||||
PIMCO Emerging Multi-Asset Fund | 9,427 | — | (1,608 | ) | (1,608 | ) | ||||||||||||
PIMCO EqS® Emerging Markets Fund | 4,857 | — | (7 | ) | (7 | ) | ||||||||||||
PIMCO EqS® Long/Short Fund | 781,389 | 45,062 | (12,973 | ) | 32,089 | |||||||||||||
PIMCO Global Dividend Fund | 124,131 | 11,239 | (9,433 | ) | 1,806 | |||||||||||||
PIMCO International Dividend Fund | 8,295 | 254 | (504 | ) | (250 | ) | ||||||||||||
PIMCO US Dividend Fund | 5,573 | 169 | (292 | ) | (123 | ) | ||||||||||||
PIMCO EqS Pathfinder Fund® | 92,319 | — | (114 | ) | (114 | ) |
(6) | Primary differences, if any, between book and tax net unrealized appreciation/(depreciation) on investments are attributable to open wash sale loss deferrals, partnership investments, adjustments for real estate investment trusts, short dividend expenditures, Lehman adjustments, Return of Capital Distributions from other PIMCO Funds, and Constructive Sale adjustments. |
For the fiscal years ended June 30, 2015 and June 30, 2014, respectively, the Funds made the following tax basis distributions (amounts in thousands):
June 30, 2015 | June 30, 2014 | |||||||||||||||||||||||||
Ordinary Income Distributions (7) | Long-Term Capital Gain Distributions | Return of Capital (8) | Ordinary Income Distributions (7) | Long-Term Capital Gain Distributions | Return of Capital (8) | |||||||||||||||||||||
PIMCO Balanced Income Fund | $ | 310 | $ | 9 | $ | — | $ | 29 | $ | — | $ | — | ||||||||||||||
PIMCO Dividend and Income Builder Fund | 27,507 | 23,147 | — | 24,718 | — | — | ||||||||||||||||||||
PIMCO Emerging Multi-Asset Fund | 1,008 | — | 241 | 850 | — | — | ||||||||||||||||||||
PIMCO EqS® Emerging Markets Fund | — | — | — | — | — | — | ||||||||||||||||||||
PIMCO EqS® Long/Short Fund | — | 5,140 | — | 30,906 | 18,291 | — | ||||||||||||||||||||
PIMCO Global Dividend Fund | 11,241 | 52,160 | — | 31,423 | 20,784 | — | ||||||||||||||||||||
PIMCO International Dividend Fund | 90 | — | — | — | — | — | ||||||||||||||||||||
PIMCO US Dividend Fund | 63 | — | — | — | — | — | ||||||||||||||||||||
PIMCO EqS Pathfinder Fund® | 52,821 | 227,305 | — | 42,766 | 51,490 | — | ||||||||||||||||||||
(7) | Includes short-term capital gains, if any, distributed. |
(8) | A portion of the distributions made represents a tax return of capital. Return of capital distributions have been reclassified from undistributed net investment income to paid-in capital to more appropriately conform financial accounting to tax accounting. |
16. SUBSEQUENT EVENTS
On May 15, 2015, the Board approved the liquidation of PIMCO EqS® Emerging Markets Fund, PIMCO Emerging Multi-Asset Fund, and PIMCO EqS Pathfinder Fund®. The liquidation of the Funds occurred on July 14, 2015.
In addition, effective August 10, 2015, the contingent deferred sales charge holding period is reduced from 18 months to 12 months for purchases of such Class A shares on or after August 10, 2015.
There were no other subsequent events identified that require recognition or disclosure.
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Report of Independent Registered Public Accounting Firm
To the Board of Trustees and Shareholders of the PIMCO Equity Series®
In our opinion, the accompanying statements of assets and liabilities, including the schedules of investments, and the related statements of operations, of changes in net assets, and of cash flows and the financial highlights present fairly, in all material respects, the financial position of PIMCO Balanced Income Fund, PIMCO Dividend and Income Builder Fund, PIMCO Global Dividend Fund, PIMCO International Dividend Fund, PIMCO U.S. Dividend Fund, PIMCO EqS® Emerging Markets Fund, PIMCO EqS® Long/Short Fund, PIMCO Emerging Multi-Asset Fund, and PIMCO EqS Pathfinder Fund® (nine series constituting the PIMCO Equity Series®, hereinafter referred to as the “Funds”) at June 30, 2015, the results of each of their operations and the changes in each of their net assets, the cash flows for PIMCO EqS® Long/Short Fund, and the financial highlights of the Funds for each of the periods presented, in conformity with accounting principles generally accepted in the United States of America. These financial statements and financial highlights (consolidated for PIMCO EqS Pathfinder Fund®) (hereafter referred to as “financial statements”) are the responsibility of the Funds’ management. Our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits of these financial statements in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audits to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, and evaluating the overall financial statement presentation. We believe that our audits, which included confirmation of securities at June 30, 2015 by correspondence with the transfer agent, custodian and brokers, and the application of alternative auditing procedures where applicable, provide a reasonable basis for our opinion.
As disclosed in Note 15 of the Notes to Financial Statements, the PIMCO EqS® Emerging Markets Fund, PIMCO Emerging Multi-Asset Fund, and PIMCO EqS Pathfinder Fund® liquidated after the close of business on July 14, 2015.
PricewaterhouseCoopers LLP
Kansas City, Missouri
August 20, 2015
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Federal Income Tax Information
(Unaudited)
As required by the Internal Revenue Code (“Code”) and Treasury Regulations, if applicable, shareholders must be notified of the Trust’s fiscal year end (June 30, 2015) regarding the status of dividend received deduction, qualified dividend income, qualified interest income, and qualified short-term capital gain.
Dividend Received Deduction. Corporate shareholders are generally entitled to take the dividend received deduction on the portion of a Fund’s dividend distribution that qualifies under tax law. The percentage of each Fund’s fiscal 2015 ordinary income dividends that qualifies for the corporate dividend received deduction is set forth below.
Qualified Dividend Income. Under the Jobs and Growth Tax Relief Reconciliation Act of 2003 (the “Act”), the following percentages of ordinary dividends paid during the fiscal year ended June 30, 2015 are designated as “qualified dividend income”, as defined in the Act, subject to reduced tax rates.
Qualified Interest Income and Qualified Short-Term Capital Gain (for non-U.S. resident shareholders only). Under the American Jobs Creation Act of 2004, the following amounts of ordinary dividends paid during the fiscal year ended June 30, 2015 are considered to be derived from “qualified interest income,” as defined in Section 871(k)(1)(E) of the Code, and therefore are designated as interest-related dividends, as defined in Section 871(k)(1)(C) of the Code. Further, the following amounts of ordinary dividends paid during the fiscal year ended June 30, 2015 are considered to be derived from “qualified short-term capital gain,” as defined in Section 871(k)(2)(D) of the Code, and therefore are designated as qualified short-term gain dividends, as defined by Section 871(k)(2)(C) of the Code.
Dividend Received Deduction % | Qualified Dividend Income % | Qualified Interest Income (000s) | Qualified Short-Term Capital Gain (000s) | |||||||||||||||
PIMCO Balanced Income Fund | 28.52% | 61.53% | $ | 104 | $ | 0 | ||||||||||||
PIMCO Dividend and Income Builder Fund | 42.73% | 87.71% | 2,724 | 0 | ||||||||||||||
PIMCO Emerging Multi-Asset Fund | 0.00% | 0.00% | 1,250 | 0 | ||||||||||||||
PIMCO EqS® Emerging Markets Fund | 0.00% | 0.00% | 0 | 0 | ||||||||||||||
PIMCO EqS® Long/Short Fund | 100.00% | 100.00% | 0 | 0 | ||||||||||||||
PIMCO Global Dividend Fund | 18.80% | 40.61% | 590 | 7,272 | ||||||||||||||
PIMCO International Dividend Fund | 4.62% | 93.08% | 2 | 0 | ||||||||||||||
PIMCO US Dividend Fund | 81.92% | 95.31% | 15 | 0 | ||||||||||||||
PIMCO EqS Pathfinder Fund® | 15.99% | 39.83% | 24,500 | 28,318 |
Foreign Taxes. PIMCO Global Dividend Fund and PIMCO International Dividend Fund earned foreign source income of $4,146,489 and $129,587 respectively, during the year ended June 30, 2015. The funds have made an election under Internal Revenue Code Section 853 to pass through foreign taxes paid in the amount of $294,743 and $9,888 respectively, to shareholders. Shareholders will receive more detailed information along with their Form 1099-DIV.
The following Funds designate the amounts below as long term capital gain dividends paid during the year ended June 30, 2015 (amounts in thousands):
PIMCO Balanced Income Fund | $ | 9 | ||||
PIMCO Dividend and Income Builder Fund | 23,147 | |||||
PIMCO Emerging Multi-Asset Fund | 0 | |||||
PIMCO EqS® Emerging Markets Fund | 0 | |||||
PIMCO EqS® Long/Short Fund | 5,140 | |||||
PIMCO Global Dividend Fund | 52,160 | |||||
PIMCO International Dividend Fund | 0 | |||||
PIMCO US Dividend Fund | 0 | |||||
PIMCO EqS Pathfinder Fund® | 227,305 |
Shareholders are advised to consult their own tax advisor with respect to the tax consequences of their investment in the Trust. In January 2016, you will be advised on IRS Form 1099-DIV as to the federal tax status of the dividends and distributions received by you in calendar year 2015.
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Glossary: (abbreviations that may be used in the preceding statements)
(Unaudited)
Counterparty Abbreviations: | ||||||||||
BOA | Bank of America N.A. | GLM | Goldman Sachs Bank USA | NAB | National Australia Bank Ltd. | |||||
BPS | BNP Paribas S.A. | GSC | Goldman Sachs & Co. | PER | Pershing LLC | |||||
BRC | Barclays Bank PLC | GST | Goldman Sachs International | SCX | Standard Chartered Bank | |||||
CBK | Citibank N.A. | HUS | HSBC Bank USA N.A. | SOG | Societe Generale | |||||
DUB | Deutsche Bank AG | JPM | JPMorgan Chase Bank N.A. | SSB | State Street Bank and Trust Co. | |||||
FBF | Credit Suisse International | MSB | Morgan Stanley Bank, N.A | UAG | UBS AG Stamford | |||||
FOB | Credit Suisse Securities (USA) LLC | MYC | Morgan Stanley Capital Services, Inc. | |||||||
Currency Abbreviations: | ||||||||||
AUD | Australian Dollar | HKD | Hong Kong Dollar | PLN | Polish Zloty | |||||
BRL | Brazilian Real | HUF | Hungarian Forint | RON | Romanian New Leu | |||||
CLP | Chilean Peso | IDR | Indonesian Rupiah | RUB | Russian Ruble | |||||
COP | Colombian Peso | INR | Indian Rupee | SGD | Singapore Dollar | |||||
CZK | Czech Koruna | JPY | Japanese Yen | THB | Thai Baht | |||||
DKK | Danish Krone | KRW | South Korean Won | TWD | Taiwanese Dollar | |||||
EUR | Euro | MXN | Mexican Peso | USD (or $) | United States Dollar | |||||
GBP | British Pound | PHP | Philippine Peso | ZAR | South African Rand | |||||
Exchange Abbreviations: | ||||||||||
CBOE | Chicago Board Options Exchange | OTC | Over the Counter | |||||||
Index/Spread Abbreviations: | ||||||||||
ABX.HE | Asset-Backed Securities Index - Home Equity | CDX.HY | Credit Derivatives Index - High Yield | CMBX | Commercial Mortgage-Backed Index | |||||
Other Abbreviations: | ||||||||||
ABS | Asset-Backed Security | CDI | Brazil Interbank Deposit Rate | REMIC | Real Estate Mortgage Investment Conduit | |||||
ADR | American Depositary Receipt | LIBOR | London Interbank Offered Rate | SP - ADR | Sponsored American Depositary Receipt | |||||
ALT | Alternate Loan Trust | NVDR | Non-Voting Depositary Receipt | TBD% | Interest rate to be determined when loan settles | |||||
BBR | Bank Bill Rate | PIK | Payment-in-Kind | TIIE | Tasa de Interés Interbancaria de Equilibrio | |||||
BBSW | Bank Bill Swap Reference Rate | REIT | Real Estate Investment Trust |
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(Unaudited)
The charts below identify the Trustees and executive officers of the Trust. Unless otherwise indicated, the address of all persons below is 650 Newport Center Drive, Newport Beach, CA 92660. The Funds’ Statement of Additional Information includes more information about the Trustees and Officers. To request a free copy, call PIMCO at (888) 877-4626 or visit the Funds’ website at www.pimco.com.
Name, Year of Birth and Position Held with Trust | Term of Office and Length of Time Served** | Principal Occupation(s) During Past 5 Years | Number of Funds in Fund Complex Overseen by Trustee | Other Public Company and Investment Company Directorships Held by Trustee During the Past 5 Years | ||||
Interested Trustees* | ||||||||
Brent R. Harris (1959) Chairman of the Board and Trustee | 03/2010 to present | Managing Director and member of Executive Committee, PIMCO. | 177 | Chairman and Trustee, PIMCO Funds; Chairman and Trustee, PIMCO Variable Insurance Trust; Chairman and Trustee, PIMCO ETF Trust; Chairman and Trustee, PIMCO Equity Series VIT; Director, StocksPLUS® Management, Inc; and member of Board of Governors, Investment Company Institute. Board Member and Owner, Harris Holdings, LLC (1992-present). | ||||
Independent Trustees | ||||||||
E. Philip Cannon (1940) Trustee | 03/2010 to present | Private Investor. Formerly, President, Houston Zoo. | 177 | Trustee, PIMCO Funds; Trustee, PIMCO Variable Insurance Trust; Trustee, PIMCO ETF Trust; and Trustee, PIMCO Equity Series VIT. Formerly, Trustee, Allianz Funds (formerly, PIMCO Funds: Multi-Manager Series. | ||||
Peter B. McCarthy (1950) Trustee | 09/2011 to present | Formerly, Assistant Secretary and Chief Financial Officer, United States Department of Treasury; Deputy Managing Director, Institute of International Finance. | 177 | Trustee, PIMCO Funds; Trustee, PIMCO Variable Insurance Trust; Trustee, PIMCO ETF Trust; and Trustee, PIMCO Equity Series VIT. |
(*) Mr. Harris is an “interested persons” of the Trust (as that term is defined in the 1940 Act) because of his affiliations with PIMCO.
(**) Trustees serve until their successors are duly elected and qualified.
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Management of the Trust (Cont.)
(Unaudited)
Executive Officers
Name, Year of Birth and Position Held with Trust | Term of Office and Length of Time Served | Principal Occupation(s) During Past 5 Years* | ||
Peter G. Strelow (1970) President | 02/2014 to present
Senior Vice President 11/2013 to 02/2014
Vice President 03/2010 to 11/2013 | Managing Director, PIMCO. President, PIMCO Funds, PIMCO Variable Insurance Trust, PIMCO ETF Trust, PIMCO Equity Series VIT, PIMCO Managed Accounts Trust and PIMCO Closed-End Funds. | ||
David C. Flattum (1964) Chief Legal Officer | 03/2010 to present | Managing Director and General Counsel, PIMCO. Chief Legal Officer, PIMCO Funds, PIMCO Variable Insurance Trust, PIMCO ETF Trust and PIMCO Equity Series VIT. Formerly, Managing Director, Chief Operating Officer and General Counsel, Allianz Asset Management of America L.P. | ||
Jennifer E. Durham (1970) Chief Compliance Officer | 03/2010 to present | Managing Director and Chief Compliance Officer, PIMCO. Chief Compliance Officer, PIMCO Funds, PIMCO Variable Insurance Trust, PIMCO ETF Trust and PIMCO Equity Series VIT. | ||
Brent R. Harris (1959) Senior Vice President | 03/2010 to present | Managing Director and current member of Executive Committee, PIMCO. Senior Vice President, PIMCO Funds, PIMCO Variable Insurance Trust, PIMCO ETF Trust and PIMCO Equity Series VIT. | ||
Douglas M. Hodge (1957) Senior Vice President | 02/2014 to present
President 05/2013 to 02/2014 | Managing Director, Chief Executive Officer, PIMCO (since 2/14); Chief Operating Officer, PIMCO (7/09 - 2/14); Member of Executive Committee and Head of PIMCO’s Asia Pacific region. Member Global Executive Committee, Allianz Asset Management. Senior Vice President, PIMCO Funds, PIMCO Variable Insurance Trust, PIMCO ETF Trust and PIMCO Equity Series VIT. | ||
Kevin M. Broadwater (1964) Vice President - Senior Counsel | 05/2012 to present | Executive Vice President and Deputy General Counsel, PIMCO. Vice President - Senior Counsel, PIMCO Funds, PIMCO Variable Insurance Trust, PIMCO ETF Trust and PIMCO Equity Series VIT. | ||
Joshua D. Ratner (1976)** Vice President - Senior Counsel, Secretary | 11/2013 to present
Assistant Secretary 03/2010 to 01/2011 | Executive Vice President and Senior Counsel, PIMCO. Chief Legal Officer, PIMCO Investments LLC. Vice President - Senior Counsel, Secretary, PIMCO Funds, PIMCO Variable Insurance Trust, PIMCO ETF Trust and PIMCO Equity Series VIT. Vice President, Secretary and Chief Legal Officer, PIMCO Managed Accounts Trust and PIMCO Closed-End Funds. | ||
Ryan G. Leshaw (1980) Assistant Secretary | 05/2012 to present | Vice President and Counsel, PIMCO. Assistant Secretary, PIMCO Funds, PIMCO Variable Insurance Trust, PIMCO ETF Trust, PIMCO Equity Series VIT, PIMCO Managed Accounts Trust and PIMCO Closed-End Funds. Formerly, Associate, Willkie Farr & Gallagher LLP. | ||
Stacie D. Anctil (1969) Vice President | 05/2015 to present
Assistant Treasurer 03/2010 to 05/2015 | Senior Vice President, PIMCO. Vice President, PIMCO Funds, PIMCO Variable Insurance Trust, PIMCO ETF Trust, PIMCO Equity Series VIT, PIMCO Managed Accounts Trust and PIMCO Closed-End Funds. | ||
William G. Galipeau (1974) Vice President | 11/2013 to present | Executive Vice President, PIMCO. Vice President, PIMCO Funds, PIMCO Variable Insurance Trust, PIMCO ETF Trust and PIMCO Equity Series VIT. Treasurer, PIMCO Managed Accounts Trust and PIMCO Closed-End Funds. Formerly, Vice President, Fidelity Investments. | ||
Eric D. Johnson (1970)** Vice President | 05/2011 to present | Executive Vice President, PIMCO. Vice President, PIMCO Funds, PIMCO Variable Insurance Trust, PIMCO ETF Trust, PIMCO Equity Series VIT, PIMCO Managed Accounts Trust and PIMCO Closed-End Funds. | ||
Henrik P. Larsen (1970) Vice President | 03/2010 to present | Senior Vice President, PIMCO. Vice President, PIMCO Funds, PIMCO Variable Insurance Trust, PIMCO ETF Trust and PIMCO Equity Series VIT. | ||
Greggory S. Wolf (1970) Vice President | 05/2011 to present | Senior Vice President, PIMCO. Vice President, PIMCO Funds, PIMCO Variable Insurance Trust, PIMCO ETF Trust and PIMCO Equity Series VIT. | ||
Trent W. Walker (1974) Treasurer | 11/2013 to present
Assistant Treasurer 03/2010 to 11/2013 | Senior Vice President, PIMCO. Treasurer, PIMCO Funds, PIMCO Variable Insurance Trust, PIMCO ETF Trust and PIMCO Equity Series VIT. Assistant Treasurer, PIMCO Managed Accounts Trust and PIMCO Closed-End Funds. | ||
Erik C. Brown (1967) Assistant Treasurer | 03/2010 to present | Executive Vice President, PIMCO. Assistant Treasurer, PIMCO Funds, PIMCO Variable Insurance Trust, PIMCO ETF Trust, PIMCO Equity Series VIT, PIMCO Managed Accounts Trust and PIMCO Closed-End Funds. | ||
Jason J. Nagler (1982)** Assistant Treasurer | 05/2015 to present | Vice President, PIMCO. Assistant Treasurer, PIMCO Funds, PIMCO Variable Insurance Trust, PIMCO ETF Trust, PIMCO Equity Series VIT, PIMCO Managed Accounts Trust and PIMCO Closed-End Funds. Formerly, Head of Mutual Fund Reporting, GMO and Assistant Treasurer, GMO Trust and GMO Series Trust Funds. |
* The term “PIMCO Closed-End Funds” as used herein includes: PIMCO California Municipal Income Fund, PIMCO California Municipal Income Fund II, PIMCO California Municipal Income Fund III, PIMCO Municipal Income Fund, PIMCO Municipal Income Fund II, PIMCO Municipal Income Fund III, PIMCO New York Municipal Income Fund, PIMCO New York Municipal Income Fund II, PIMCO New York Municipal Income Fund III, PCM Fund Inc., PIMCO Corporate & Income Opportunity Fund, PIMCO Corporate & Income Strategy Fund, PIMCO Dynamic Credit Income Fund, PIMCO Dynamic Income Fund, PIMCO Global StocksPLUS & Income Fund, PIMCO High Income Fund, PIMCO Income Opportunity Fund, PIMCO Income Strategy Fund, PIMCO Income Strategy Fund II and PIMCO Strategic Income Fund, Inc.
** The address of these officers is Pacific Investment Management Company LLC, 1633 Broadway, New York, New York 10019.
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(Unaudited)
The Funds2,3 consider customer privacy to be a fundamental aspect of their relationships with shareholders and are committed to maintaining the confidentiality, integrity and security of their current, prospective and former shareholders’ non-public personal information. The Funds have developed policies that are designed to protect this confidentiality, while allowing shareholder needs to be served.
Obtaining Personal Information
In the course of providing shareholders with products and services, the Funds and certain service providers to the Funds, such as the Funds’ investment advisers or sub-advisers (“Advisers”), may obtain non-public personal information about shareholders, which may come from sources such as account applications and other forms, from other written, electronic or verbal correspondence, from shareholder transactions, from a shareholder’s brokerage or financial advisory firm, financial advisor or consultant, and/or from information captured on applicable websites.
Respecting Your Privacy
As a matter of policy, the Funds do not disclose any non-public personal information provided by shareholders or gathered by the Funds to non-affiliated third parties, except as required or permitted by law or as necessary for such third parties to perform their agreements with respect to the Funds. As is common in the industry, non-affiliated companies may from time to time be used to provide certain services, such as preparing and mailing prospectuses, reports, account statements and other information, conducting research on shareholder satisfaction and gathering shareholder proxies. The Funds or their affiliates may also retain non-affiliated companies to market Fund shares or products which use Fund shares and enter into joint marketing arrangements with them and other companies. These companies may have access to a shareholder’s personal and account information, but are permitted to use this information solely to provide the specific service or as otherwise permitted by law. In most cases, the shareholders will be clients of a third party, but the Funds may also provide a shareholder’s personal and account information to the shareholder’s respective brokerage or financial advisory firm and/or financial advisor or consultant.
Sharing Information with Third Parties
The Funds reserve the right to disclose or report personal or account information to non-affiliated third parties in limited circumstances where the Funds believe in good faith that disclosure is required under law, to cooperate with regulators or law enforcement authorities, to protect their rights or property, or upon reasonable request by any fund advised by PIMCO in which a shareholder has invested. In addition, the Funds may disclose information about a shareholder or a
shareholder’s accounts to a non-affiliated third party at the shareholder’s request or with the consent of the shareholder.
Sharing Information with Affiliates
The Funds may share shareholder information with their affiliates in connection with servicing shareholders’ accounts, and subject to applicable law may provide shareholders with information about products and services that the Funds or their Advisers, distributors or their affiliates (“Service Affiliates”) believe may be of interest to such shareholders. The information that the Funds may share may include, for example, a shareholder’s participation in the Funds or in other investment programs sponsored by a Service Affiliate, a shareholder’s ownership of certain types of accounts (such as IRAs), information about the Funds’ experiences or transactions with a shareholder, information captured on applicable websites, or other data about a shareholder’s accounts, subject to applicable law. The Funds’ Service Affiliates, in turn, are not permitted to share shareholder information with non-affiliated entities, except as required or permitted by law.
Procedures to Safeguard Private Information
The Funds take seriously the obligation to safeguard shareholder non-public personal information. In addition to this policy, the Funds have implemented procedures that are designed to restrict access to a shareholder’s non-public personal information to internal personnel who need to know that information to perform their jobs, such as servicing shareholder accounts or notifying shareholders of new products or services. Physical, electronic and procedural safeguards are in place to guard a shareholder’s non-public personal information.
Information Collected from Websites
Websites maintained by the Funds or their service providers may use a variety of technologies to collect information that help the Funds and their service providers understand how the website is used. Information collected from your web browser (including small files stored on your device that are commonly referred to as “cookies”) allow the websites to recognize your web browser and help to personalize and improve your user experience and enhance navigation of the website. In addition, the Funds or their Service Affiliates may use third parties to place advertisements for the Funds on other websites, including banner advertisements. Such third parties may collect anonymous information through the use of cookies or action tags (such as web beacons). The information these third parties collect is generally limited to technical and web navigation information, such as your IP address, web pages visited and browser type, and does not include personally identifiable information such as name, address, phone number or email address.
ANNUAL REPORT | JUNE 30, 2015 | 109 |
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Privacy Policy1 (Cont.)
(Unaudited)
You can change your cookie preferences by changing the setting on your web browser to delete or reject cookies. If you delete or reject cookies, some website pages may not function properly.
Changes to the Privacy Policy
From time to time, the Funds may update or revise this privacy policy. If there are changes to the terms of this privacy policy, documents containing the revised policy on the relevant website will be updated.
1 Effective as of September 5, 2014.
2 PIMCO Investments LLC (“PI”) serves as the Funds’ distributor. This Privacy Policy applies to the activities of PI to the extent that PI regularly effects or engages in transactions with or for a Fund shareholder who is the record owner of such shares. For purposes of this Privacy Policy, references to “the Funds” shall include PI when acting in this capacity.
3 When distributing this Policy, a Fund may combine the distribution with any similar distribution of its investment adviser’s privacy policy. The distributed, combined policy may be written in the first person (i.e., by using “we” instead of “the Funds”).
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General Information
Investment Adviser and Administrator
Pacific Investment Management Company LLC
650 Newport Center Drive
Newport Beach, CA 92660
Distributor
PIMCO Investments LLC
1633 Broadway
New York, NY 10019
Custodian
State Street Bank and Trust Company
801 Pennsylvania Avenue
Kansas City, MO 64105
Transfer Agent
Boston Financial Data Services
Institutional Class, Class P, Administrative Class, Class D
330 W. 9th Street, 5th Floor
Kansas City, MO 64105
Boston Financial Data Services
Class A, Class C, Class R
P.O. Box 55060
Boston, MA 02205-5060
Legal Counsel
Dechert LLP
1900 K Street, N.W.
Washington, D.C. 20006
Independent Registered Public Accounting Firm
PricewaterhouseCoopers LLP
1100 Walnut Street, Suite 1300
Kansas City, MO 64106
This report is submitted for the general information of the shareholders of the PIMCO Equity Series.
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PES3001AR_063015
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Your Global Investment Authority
PIMCO Equity Series®
Annual Report
June 30, 2015
PIMCO RealPath™ Blend 2020 Fund
PIMCO RealPath™ Blend 2025 Fund
PIMCO RealPath™ Blend 2030 Fund
PIMCO RealPath™ Blend 2035 Fund
PIMCO RealPath™ Blend 2040 Fund
PIMCO RealPath™ Blend 2045 Fund
PIMCO RealPath™ Blend 2050 Fund
PIMCO RealPath™ Blend 2055 Fund
PIMCO RealPath™ Blend Income Fund
Share Classes
n | Institutional |
n | Administrative |
n | A |
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Fund | Fund Summary | Schedule of Investments | ||||||
PIMCO RealPathTM Blend 2020 Fund | 9 | 30 | ||||||
PIMCO RealPathTM Blend 2025 Fund | 10 | 33 | ||||||
PIMCO RealPathTM Blend 2030 Fund | 11 | 36 | ||||||
PIMCO RealPathTM Blend 2035 Fund | 12 | 39 | ||||||
PIMCO RealPathTM Blend 2040 Fund | 13 | 42 | ||||||
PIMCO RealPathTM Blend 2045 Fund | 14 | 45 | ||||||
PIMCO RealPathTM Blend 2050 Fund | 15 | 48 | ||||||
PIMCO RealPathTM Blend 2055 Fund | 16 | 51 | ||||||
PIMCO RealPathTM Blend Income Fund | 17 | 54 |
This material is authorized for use only when preceded or accompanied by the current PIMCO Equity Series prospectus. The Shareholder Reports for the other series of PIMCO Equity Series are printed separately.
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Dear Shareholder,
Please find enclosed the Annual Report for the PIMCO Equity Series covering the twelve-month reporting period ended June 30, 2015. On the following pages are specific details about the investment performance of each fund and a discussion of the factors that most affected performance during the reporting period.
Highlights of the financial markets during our twelve-month reporting period include:
n | Investor concerns over the potential for global deflation gradually receded as oil prices rose during the latter part of the reporting period after significantly declining in 2014 and early 2015. In addition, the outlook for economic growth brightened, particularly for developed market economies led by continuing growth in the U.S. and improvement in Europe. Investors, however, were kept on edge by events in Greece, in which the debt crisis worsened sharply towards the latter part of the period and continues to be a concern outside of the reporting period as events remain fluid. Furthermore, Chinese equity markets experienced heightened volatility and data pointed to a slowing Chinese economy, prompting Chinese policymakers to lower interest rates. |
n | U.S. equities, as represented by the S&P 500 Index, returned 7.42% due to an improving economic outlook and stronger jobs growth. Internationally, equity markets experienced strong performance, notably in Europe and Japan, but currency moves in unhedged U.S. dollar terms created headwinds for returns as the MSCI EAFE Net Dividend Index (USD hedged) returned 11.19% while the MSCI EAFE Net Dividend Index (USD Unhedged) declined 4.22% over the reporting period. Japanese equities, as represented by the MSCI Japan Index, returned 31.24% over the same period. The sharp decline in oil prices in 2014 and early 2015 led to heightened equity market volatility over the reporting period. The debt crisis in Greece weighed on global equities late in the reporting period as Prime Minister Alexis Tsipras called for a referendum to be held regarding a bailout offered by its European creditors. Greece shut down its banking system ahead of the vote in order to prevent financial collapse. |
n | Emerging market (“EM”) equities, as represented by the MSCI Emerging Markets Index (Net Dividends in USD), declined 5.12% over the reporting period. Concerns over slower Chinese economic growth created headwinds for EM equities, as Chinese stocks briefly moved into bear market territory near the close of the reporting period despite efforts by the People’s Bank of China to offset the recent decline through additional interest rate cuts. In the latter part of 2014, Brazil was one of the worst performing equity markets as the country slipped back into recession and President Rousseff won her re-election campaign. The Brazilian real fell 17% in the first quarter of 2015 following nationwide protests against corruption, rising unemployment and weak economic growth, before rebounding in the second quarter of 2015, after the Brazilian central bank lowered the upper limit of its inflation target, sending signs of confidence to the market. These events, along with a strong U.S. dollar and lower commodity prices over the reporting period, were contributing factors in EM equity underperformance relative to developed market equities. |
n | Style-wise, growth equities outperformed value equities globally as the MSCI All Country World Growth Index (Net Dividends in USD) returned 4.86% and the MSCI All Country World Value Index (Net Dividends in USD) declined 3.41%. The healthcare and consumer discretionary sectors were the top performing equity sectors, while the energy and materials sectors were the worst performing equity sectors over the reporting period. |
n | U.S. Treasuries, as represented by the Barclays U.S. Treasury Index, returned 2.31% for the reporting period. Longer-maturity yields (i.e., seven to thirty year yields) declined, with prices therefore higher, while shorter-maturity yields (i.e., six month to five year yields) rose as investors anticipated some degree of monetary tightening by the Federal Reserve to occur later in 2015. The benchmark ten-year U.S. Treasury note yielded 2.35% at the end of the reporting period, down from 2.53% on June 30, 2014. The Barclays U.S. Aggregate Index, a widely used index of U.S. investment-grade bonds, returned 1.86% for the reporting period. |
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If you have any questions regarding the PIMCO Equity Series, please contact your account manager or financial adviser, or call one of our shareholder associates at 888.87.PIMCO (888.877.4626). We also invite you to visit our website at www.pimco.com to learn more about our views and global thought leadership.
Thank you again for the trust you have placed in us. We value your commitment and will continue to work diligently to meet your broad investment needs.
![]() | Sincerely,
Brent R. Harris Chairman of the Board, PIMCO Equity Series
August 20, 2015
|
ANNUAL REPORT | JUNE 30, 2015 | 3 |
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Important Information About the Funds
We believe that equity funds have an important role to play in a well diversified investment portfolio. It is important to note, however, that equity funds are subject to notable risks. Among other things, equity and equity-related securities may decline in value due to both real and perceived general market, economic, and industry conditions.
The Funds are each “fund of funds,” which is a term used to describe mutual funds that pursue their investment objective by investing in other mutual funds instead of investing directly in stocks or bonds of other issuers. Under normal circumstances, the Funds invest substantially all of their assets in Institutional Class or Class M shares of any funds of the PIMCO Equity Series (the “Trust”) and PIMCO Funds, and in other affiliated funds, including funds of PIMCO ETF Trust, except funds of funds (collectively, “Underlying PIMCO Funds”), and unaffiliated funds that are registered under the Investment Company Act of 1940 (collectively, “Acquired Funds”).
In an environment where interest rates may trend upward, rising rates would negatively impact the performance of certain funds, and fixed-income securities held by a Fund are likely to decrease in value. A number of factors can cause interest rates to rise (e.g., central bank monetary policies, inflation rates, general economic conditions, etc.). Accordingly, changes in interest rates can be sudden and significant, and there is no guarantee that Fund management will anticipate such movement accurately.
The values of equity securities, such as common stocks and preferred stocks, have historically risen and fallen in periodic cycles and may decline due to general market conditions, which are not specifically related to a particular company, such as real or perceived adverse economic conditions, changes in the general outlook for corporate earnings, changes in interest or currency rates or adverse investor sentiment generally. Equity securities may also decline due to factors that affect a particular industry or industries, such as labor shortages, increased production costs and competitive conditions within an industry. In addition, the value of an equity security may decline for a number of reasons that directly relate to the issuer, such as management performance, financial leverage and reduced demand for the issuer’s goods or services, as well as the historical and prospective earnings of the issuer and the value of its assets. Different types of equity securities may react differently to these developments and a change in the financial condition of a single issuer may affect securities markets as a whole.
During a general downturn in the securities markets, multiple asset classes, including equity securities, may decline in value simultaneously. The market price of equity securities owned by a Fund may go up or down, sometimes rapidly or unpredictably. Equity securities generally have greater price volatility than fixed income securities and common stocks generally have the greatest appreciation and depreciation potential of all corporate securities. In addition, although the Federal
Reserve (“Fed”) ended its bond-buying program in October 2014, the Fed indicated that it remains committed to accommodative monetary policy, which in the past has aided equity markets. As of the date of this report, Europe is one of the worst performing regions for equity markets, as deflationary concerns weighed on the values of equity securities.
Interest rates in the U.S. are at or near historically low levels. As such, funds that invest in fixed income securities may currently face an increased exposure to the risks associated with a rising interest rate environment. Further, while the U.S. bond market has steadily grown over the past three decades, dealer inventories of corporate bonds have remained relatively stagnant. As a result, there has been a significant reduction in the ability of dealers to “make markets.” All of the factors mentioned above, individually or collectively, could lead to increased volatility and/or lower liquidity in the fixed income markets, which could result in losses to a Fund. If the performance of a Fund were to be negatively impacted by rising interest rates, the Fund could face increased redemptions by its shareholders, which could further reduce the net assets of the Fund.
Individual bonds with a longer duration (a measure used to determine the sensitivity of a security’s price to changes in interest rates) tend to be more sensitive to changes in interest rates, usually making them more volatile than securities or funds with shorter durations. If the performance of a Fund were to be negatively impacted by rising interest rates, the Fund could face increased redemptions by its shareholders, which could further reduce the net assets value of the Fund.
The Funds may be subject to various risks as described in the Funds’ prospectus. Some of these risks may include, but are not limited to, the following: allocation risk, Acquired Fund risk, equity risk, value investing risk, interest rate risk, call risk, credit risk, high yield and distressed company risk, market risk, liquidity risk, derivatives risk, commodity risk, mortgage-related and other asset-backed securities, foreign (non-U.S.) investment risk, real estate risk, emerging market risk, currency risk, leveraging risk, small-cap and mid-cap company risk, management risk, short sale risk, tax risk, subsidiary risk, arbitrage risk, and convertible securities risk. A complete description of these risks is contained in the Funds’ prospectus. The Funds may use derivative instruments for hedging purposes or as part of an investment strategy. Use of these instruments may involve certain costs and risks such as liquidity risk, interest rate risk, market risk, credit risk, leverage risk, management risk and the risk that a Fund may not be able to close out a position when it would be most advantageous to do so. Certain derivative transactions may have a leveraging effect on a Fund. For example, a small investment in a derivative instrument may have a significant impact on a Fund’s exposure to interest rates, currency exchange rates or other investments. As a result, a relatively small price movement in a
4 | PIMCO EQUITY SERIES |
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derivative instrument may cause an immediate and substantial loss or gain, which translates into heightened volatility in the Fund. A Fund may engage in such transactions regardless of whether the Fund owns the asset, instrument or components of the index underlying the derivative instrument. A Fund may invest a significant portion of its assets in these types of instruments. If it does, the Fund’s investment exposure could far exceed the value of its portfolio securities and its investment performance could be primarily dependent upon securities it does not own. Investing in foreign (non-U.S.) securities may entail risk due to foreign (non-U.S.) economic and political developments; this risk may be increased when investing in emerging markets.
For example, if a Fund invests in emerging market debt, it may face increased exposure to interest rate, liquidity, volatility, and redemption risk due to the specific economic, political, geographical, or legal background of the foreign (non-U.S.) issuer.
The value of an equity security of an issuer that has paid dividends in the past may decrease if the issuer reduces or eliminates future payments to its shareholders. If the dividends or distributions received by a Fund decrease, the Fund may have less income to distribute to the Fund’s shareholders. In addition, during certain market conditions, the equity securities of issuers that have paid regular dividends or distributions may not be widely available or may be highly concentrated in particular sectors of the market. A Fund may invest a significant portion of its assets in value stocks. Value stocks may perform differently from other types of stocks and the market as a whole. 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.
The geographical classification of foreign (non-U.S.) securities in this report are classified by the country of incorporation of a holding. In certain instances, a security’s country of incorporation may be different from its country of economic exposure.
The Funds (or Acquired Funds) may invest in securities and instruments that are economically tied to Russia. Investments in Russia are subject to political, economic, legal, market and currency risks, as well as the risk that further economic sanctions may be imposed by the United States and/or other countries. Such sanctions—which may impact companies in many sectors, including energy, financial services and defense, among others—may negatively impact a Fund’s performance and/or ability to achieve its investment objective. For example, certain transactions may be prohibited and/or existing investments may become illiquid (e.g., in the event that transacting in certain existing investments is prohibited), which could cause a Fund to sell other portfolio holdings at a disadvantageous time or price in order to meet shareholder redemptions.
The PIMCO RealPathTM Blend Funds are intended for investors who prefer to have their asset allocation decisions made by professional money managers and are designed to offer individual investors comprehensive asset allocation strategies tailored to the time when they expect to retire or to begin withdrawing assets. Each PIMCO RealPathTM Blend Fund is designed for investors expecting to retire or to begin withdrawing portions of their investments around the year indicated in the Fund’s name. The retirement year included in the RealPathTM Blend Fund’s name does not necessarily represent the specific year you expect to begin withdrawing your assets. It is intended only as a general guide.
The PIMCO RealPathTM Blend Funds are designed to provide investors with a comprehensive retirement solution tailored to the time when they expect to retire and plan to start withdrawing money (the “target date”). Each PIMCO RealPathTM Blend Fund follows a target asset allocation schedule that changes over time to help reduce portfolio risk, increasing its exposure to conservative investments as the target date approaches. The principal value of a Fund is not guaranteed at any time, including the target date. A Fund’s shareholders may experience losses, including losses near, at, or after the target year indicated in the PIMCO RealPathTM Blend Fund’s name.
On each individual Fund Summary page in this Shareholder Report, the Average Annual Total Return table and Cumulative Returns chart measure performance assuming that any dividend and capital gain distributions were reinvested. Class A shares are subject to an initial sales charge. A Contingent Deferred Sales Charge (“CDSC”) may be imposed in certain circumstances on Class A shares that are purchased without an initial sales charge and then redeemed during the first 18 months after purchase. The Cumulative Returns chart reflects only Institutional Class performance. Performance for Class P, Administrative Class, Class D, Class A, Class C and Class R shares, if applicable, are typically lower than Institutional Class performance due to the lower expenses paid by Institutional Class shares. Performance shown is net of fees and expenses. A Fund’s total annual operating expense ratios on each individual Fund summary page are as of the currently effective prospectus, as supplemented to date. The Cumulative Returns chart assumes the initial investment of $1,000,000 was made at the end of the month that the Institutional Class of the relevant Fund commenced operations. The minimum initial investment amount for Institutional Class, Class P and Administrative Class shares is $1,000,000. The minimum initial investment amount for Class A, Class C and Class D shares is $1,000. There is no minimum initial investment for Class R shares. Each Fund measures its performance against a broad-based securities market index (“benchmark index”). The benchmark index does not take into account fees, expenses, or taxes. A Fund’s past performance, before and after taxes, is not necessarily an indication of how the Fund will perform in the future.
ANNUAL REPORT | JUNE 30, 2015 | 5 |
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Important Information About the Funds (Cont.)
The following table discloses the inception dates of each Fund and its respective share classes:
Fund Name | Fund Inception | Institutional Class | Class P | Administrative Class | Class D | Class A | Class C | Class R | ||||||||||||||||||||||||||
PIMCO RealPathTM Blend Income Fund | 12/31/2014 | 12/31/2014 | — | 12/31/2014 | — | 12/31/2014 | — | — | ||||||||||||||||||||||||||
PIMCO RealPathTM Blend 2020 Fund | 12/31/2014 | 12/31/2014 | — | 12/31/2014 | — | 12/31/2014 | — | — | ||||||||||||||||||||||||||
PIMCO RealPathTM Blend 2025 Fund | 12/31/2014 | 12/31/2014 | — | 12/31/2014 | — | 12/31/2014 | — | — | ||||||||||||||||||||||||||
PIMCO RealPathTM Blend 2030 Fund | 12/31/2014 | 12/31/2014 | — | 12/31/2014 | — | 12/31/2014 | — | — | ||||||||||||||||||||||||||
PIMCO RealPathTM Blend 2035 Fund | 12/31/2014 | 12/31/2014 | — | 12/31/2014 | — | 12/31/2014 | — | — | ||||||||||||||||||||||||||
PIMCO RealPathTM Blend 2040 Fund | 12/31/2014 | 12/31/2014 | — | 12/31/2014 | — | 12/31/2014 | — | — | ||||||||||||||||||||||||||
PIMCO RealPathTM Blend 2045 Fund | 12/31/2014 | 12/31/2014 | — | 12/31/2014 | — | 12/31/2014 | — | — | ||||||||||||||||||||||||||
PIMCO RealPathTM Blend 2050 Fund | 12/31/2014 | 12/31/2014 | — | 12/31/2014 | — | 12/31/2014 | — | — | ||||||||||||||||||||||||||
PIMCO RealPathTM Blend 2055 Fund | 12/31/2014 | 12/31/2014 | — | 12/31/2014 | — | 12/31/2014 | — | — |
An investment in a Fund is not a bank deposit and is not guaranteed or insured by the Federal Deposit Insurance Corporation (“FDIC”) or any other government agency. It is possible to lose money on investments in a Fund.
PIMCO has adopted written proxy voting policies and procedures (“Proxy Policy”) as required by Rule 206(4)-6 under the Investment Advisers Act of 1940, as amended. The Proxy Policy has been adopted by the Trust as the policies and procedures that PIMCO will use when voting on behalf of a Fund. A description of the policies and procedures that PIMCO uses to vote proxies relating to portfolio securities of a Fund, and information about how the Fund voted proxies relating to portfolio securities held during the most recent twelve-month period ended June 30th, are available without
charge, upon request, by calling the Trust at (888) 87-PIMCO, on the Fund’s website at www.pimco.com, and on the Securities and Exchange Commission’s (“SEC”) website at www.sec.gov.
PIMCO Equity Series files a complete schedule of each Fund’s portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-Q. A copy of a Fund’s Form N-Q is available on the SEC’s website at www.sec.gov and may be reviewed and copied at the SEC’s Public Reference Room in Washington, D.C. A Fund’s Form N-Q will also be available without charge, upon request, by calling the Trust at (888) 87-PIMCO and on the Fund’s website at www.pimco.com. Information on the operation of the Public Reference Room may be obtained by calling 1-800-SEC-0330.
6 | PIMCO EQUITY SERIES |
Table of Contents
PIMCO RealPath™ Blend 2020 Fund
Top 10 Holdings1
PIMCO Total Return Fund | 15.6% | |||||
Vanguard 500 Index Fund ‘Admiral’ | 15.4% | |||||
PIMCO Real Return Fund | 10.3% | |||||
PIMCO Real Return Asset Fund | 10.2% | |||||
PIMCO Foreign Bond Fund (U.S. Dollar-Hedged) | 7.7% | |||||
Vanguard Emerging Markets Stock Index Fund ‘Admiral’ | 7.7% | |||||
Vanguard Developed Markets Index Fund ‘Admiral’ | 7.6% | |||||
PIMCO Long Duration Total Return Fund | 7.6% | |||||
Vanguard Small-Cap Index Fund ‘Admiral’ | 5.2% | |||||
PIMCO High Yield Fund | 5.1% |
Sector Breakdown1
Mutual Funds | 100.0% |
PIMCO RealPath™ Blend 2025 Fund
Top 10 Holdings1
Vanguard 500 Index Fund ‘Admiral’ | 18.0% | |||||
PIMCO Real Return Asset Fund | 10.2% | |||||
Vanguard Emerging Markets Stock Index Fund ‘Admiral’ | 10.2% | |||||
Vanguard Developed Markets Index Fund ‘Admiral’ | 10.2% | |||||
PIMCO Total Return Fund | 7.8% | |||||
PIMCO High Yield Fund | 7.8% | |||||
PIMCO Real Return Fund | 7.7% | |||||
PIMCO Long Duration Total Return Fund | 7.6% | |||||
Vanguard REIT Index Fund ‘Admiral’ | 7.5% | |||||
Vanguard Small-Cap Index Fund ‘Admiral’ | 5.2% |
Sector Breakdown1
Mutual Funds | 100.0% |
PIMCO RealPath™ Blend 2030 Fund
Top 10 Holdings1
Vanguard 500 Index Fund ‘Admiral’ | 20.6% | |||||
Vanguard Emerging Markets Stock Index Fund ‘Admiral’ | 12.8% | |||||
Vanguard Developed Markets Index Fund ‘Admiral’ | 12.8% | |||||
PIMCO Real Return Asset Fund | 10.3% | |||||
Vanguard REIT Index Fund ‘Admiral’ | 10.0% | |||||
PIMCO High Yield Fund | 7.8% | |||||
PIMCO Long Duration Total Return Fund | 7.6% |
Top 10 Holdings1 (Cont.)
PIMCO Emerging Local Bond Fund | 5.2% | |||||
Vanguard Small-Cap Index Fund ‘Admiral’ | 5.2% | |||||
PIMCO Total Return Fund | 2.6% |
Sector Breakdown1
Mutual Funds | 100.0% |
PIMCO RealPath™ Blend 2035 Fund
Top Holdings1
Vanguard 500 Index Fund ‘Admiral’ | 23.2% | |||||
Vanguard Emerging Markets Stock Index Fund ‘Admiral’ | 15.4% | |||||
Vanguard Developed Markets Index Fund ‘Admiral’ | 15.3% | |||||
PIMCO Real Return Asset Fund | 10.2% | |||||
Vanguard REIT Index Fund ‘Admiral’ | 10.1% | |||||
Vanguard Small-Cap Index Fund ‘Admiral’ | 7.8% | |||||
PIMCO Long Duration Total Return Fund | 7.6% | |||||
PIMCO High Yield Fund | 5.2% | |||||
PIMCO Emerging Local Bond Fund | 5.2% |
Sector Breakdown1
Mutual Funds | 100.0% |
PIMCO RealPath™ Blend 2040 Fund
Top Holdings1
Vanguard 500 Index Fund ‘Admiral’ | 25.7% | |||||
Vanguard Emerging Markets Stock Index Fund ‘Admiral’ | 15.4% | |||||
Vanguard Developed Markets Index Fund ‘Admiral’ | 15.3% | |||||
Vanguard Small-Cap Index Fund ‘Admiral’ | 10.4% | |||||
Vanguard REIT Index Fund ‘Admiral’ | 10.0% | |||||
PIMCO Real Return Asset Fund | 7.7% | |||||
PIMCO Long Duration Total Return Fund | 7.7% | |||||
PIMCO High Yield Fund | 5.2% | |||||
PIMCO Emerging Local Bond Fund | 2.6% |
Sector Breakdown1
Mutual Funds | 100.0% |
ANNUAL REPORT | JUNE 30, 2015 | 7 |
Table of Contents
Important Information About the Funds (Cont.)
PIMCO RealPath™ Blend 2045 Fund
Top Holdings1
Vanguard 500 Index Fund ‘Admiral’ | 25.8% | |||||
Vanguard Emerging Markets Stock Index Fund ‘Admiral’ | 18.0% | |||||
Vanguard Developed Markets Index Fund ‘Admiral’ | 17.9% | |||||
Vanguard Small-Cap Index Fund ‘Admiral’ | 10.4% | |||||
Vanguard REIT Index Fund ‘Admiral’ | 10.0% | |||||
PIMCO Long Duration Total Return Fund | 7.6% | |||||
PIMCO Real Return Asset Fund | 5.1% | |||||
PIMCO High Yield Fund | 2.6% | |||||
PIMCO Emerging Local Bond Fund | 2.6% |
Sector Breakdown1
Mutual Funds | 100.0% |
PIMCO RealPath™ Blend 2050 Fund
Top Holdings1
Vanguard 500 Index Fund ‘Admiral’ | 28.3% | |||||
Vanguard Emerging Markets Stock Index Fund ‘Admiral’ | 18.0% | |||||
Vanguard Developed Markets Index Fund ‘Admiral’ | 17.9% | |||||
Vanguard Small-Cap Index Fund ‘Admiral’ | 10.4% | |||||
Vanguard REIT Index Fund ‘Admiral’ | 10.0% | |||||
PIMCO Long Duration Total Return Fund | 7.6% | |||||
PIMCO High Yield Fund | 2.6% | |||||
PIMCO Real Return Asset Fund | 2.6% | |||||
PIMCO Emerging Local Bond Fund | 2.6% |
Sector Breakdown1
Mutual Funds | 100.0% |
PIMCO RealPath™ Blend 2055 Fund
Top Holdings1
Vanguard 500 Index Fund ‘Admiral’ | 28.4% | |||||
Vanguard Emerging Markets Stock Index Fund ‘Admiral’ | 17.9% | |||||
Vanguard Developed Markets Index Fund ‘Admiral’ | 17.9% | |||||
Vanguard Small-Cap Index Fund ‘Admiral’ | 10.4% | |||||
Vanguard REIT Index Fund ‘Admiral’ | 10.0% | |||||
PIMCO Long Duration Total Return Fund | 7.6% | |||||
PIMCO High Yield Fund | 2.6% | |||||
PIMCO Real Return Asset Fund | 2.6% | |||||
PIMCO Emerging Local Bond Fund | 2.6% |
Sector Breakdown1
Mutual Funds | 100.0% |
PIMCO RealPath™ Blend Income Fund
Top 10 Holdings1
PIMCO Total Return Fund | 15.9% | |||||
PIMCO Real Return Fund | 15.8% | |||||
Vanguard 500 Index Fund ‘Admiral’ | 13.0% | |||||
PIMCO Foreign Bond Fund (U.S. Dollar-Hedged) | 10.5% | |||||
PIMCO Real Return Asset Fund | 7.8% | |||||
Vanguard Developed Markets Index Fund ‘Admiral’ | 7.8% | |||||
PIMCO Long Duration Total Return Fund | 7.7% | |||||
Vanguard Emerging Markets Stock Index Fund ‘Admiral’ | 5.2% | |||||
Vanguard REIT Index Fund ‘Admiral’ | 5.1% | |||||
Vanguard Small-Cap Index Fund ‘Admiral’ | 2.6% |
Sector Breakdown1
Mutual Funds | 96.6% |
1 | % of Investments, at value as of 06/30/2015. Securities sold short, financial derivative instruments and short-term instruments (with the exception of Central Funds used for cash management purposes), if any, are excluded from the Top 10 Holdings and Sector Breakdown tables. |
8 | PIMCO EQUITY SERIES |
Table of Contents
PIMCO RealPath™ Blend 2020 Fund
Institutional Class - PBZNX | Class A - PBZAX | |
Administrative Class - PBZDX |
Cumulative Returns Through June 30, 2015
Cumulative Total Return for the period ended June 30, 2015 | ||||||
Fund Inception (12/31/14) | ||||||
![]() | PIMCO RealPath™ Blend 2020 Fund Institutional Class | 0.19% | ||||
PIMCO RealPath™ Blend 2020 Fund Administrative Class | 0.08% | |||||
PIMCO RealPath™ Blend 2020 Fund Class A | -0.03% | |||||
PIMCO RealPath™ Blend 2020 Fund Class A (adjusted) | -5.51% | |||||
![]() | Real Return Target 2020 Index± | 0.47% |
All Fund returns are net of fees and expenses.
± Real Return Target 2020 Index is a composite of other indexes. The sub-indexes represent stocks, bonds, TIPs, commodities and real estate securities. The component asset classes are weighted within each index to reflect a targeted level of risk at the beginning and end of the investment horizon. Over time, the weights are adjusted based on predetermined formulas to systematically reduce the level of potential risk as the index’s maturity date approaches. It is not possible to invest directly in an unmanaged index.
Performance quoted represents past performance. Past performance is not a guarantee or a reliable indicator of future results. Current performance may be lower or higher than performance shown. Investment return and the principal value of an investment will fluctuate. Shares may be worth more or less than original cost when redeemed. Returns shown do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. The adjusted return takes into account the maximum sales charge of 5.50% on Class A shares. The Fund’s total annual operating expense ratio as stated in the Fund’s current prospectus, as supplemented to date, is 0.40% for the Institutional Class shares, 0.65% for the Administrative Class shares, and 0.90% for the Class A shares. Details regarding any Fund’s operating expenses can be found in the Fund’s prospectus. For performance current to the most recent month-end, visit www.pimco.com.
Investment Objective and Strategy Overview
» | The PIMCO RealPath™ Blend 2020 Fund seeks to maximize total return, consistent with prudent investment management, by investing under normal circumstances substantially all of its assets in Institutional Class or Class M shares of any funds of the Trust and PIMCO Funds, and in other affiliated funds, including funds of PIMCO ETF Trust, except funds of funds (“Underlying PIMCO Funds”), and unaffiliated funds that are registered under the Investment Company Act of 1940 (the “1940 Act”) (collectively, “Acquired Funds”). The Fund may also invest substantially all of its assets in equity securities, Fixed Income Instruments of varying maturities, or related derivatives on any securities mentioned above. Under normal circumstances, the Fund seeks to invest substantially all of its equity exposure in index tracking securities, including investments in affiliated or unaffiliated investment companies, which will be registered under the 1940 Act, or related derivatives on such securities or indexes. “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. |
Portfolio Insights
» | The Fund is intended for investors seeking professional management of a comprehensive asset allocation strategy for retirement savings. The Fund is managed for shareholders that plan to retire or begin withdrawing assets around the year 2020, the Fund’s target year. This is the “self-elected” year of retirement for the investors in the Fund. The primary difference between the PIMCO RealPath Blend Funds is their asset allocation, which varies depending on the number of years left until the “self-elected” year of retirement indicated in the PIMCO RealPath Blend Fund’s name. The Fund’s allocation is intended to meaningfully reduce risk and increasingly focus on preservation of capital as the target retirement date of the Fund nears. An investment in the Fund is not guaranteed, and you may experience losses, including losses near, at, or after the target year indicated in the Fund’s name. There is no guarantee that the Fund will provide adequate income at and through your retirement. |
» | The Fund commenced operations on December 31, 2014. |
» | Exposure to U.S. large cap equities benefited absolute performance as this asset class posted positive returns over the reporting period. |
» | Within U.S. core bond exposure, expressed via the PIMCO Total Return Fund, short exposure to the euro and the Japanese yen benefited relative performance as these currencies generally depreciated over the reporting period. |
» | Within long U.S. Treasury exposure, expressed via the PIMCO Long Duration Total Return Fund, an underweight to the 30-year sector benefited relative performance as 30-year interest rates generally rose over the reporting period. |
» | Exposure to real estate detracted from absolute performance as real estate investment trusts (“REITs”) posted negative returns over the reporting period. |
» | Exposure to emerging market bonds detracted from absolute performance as emerging market bonds posted negative returns over the reporting period. |
» | Within long U.S. Treasury Inflation-Protected Securities (“TIPS”) exposure, expressed via the PIMCO Real Return Asset Fund, exposure to Mexican inflation-linked bonds detracted from relative performance as real interest rates (i.e., rates of return in excess of expected inflation) in Mexico generally increased over the reporting period. |
ANNUAL REPORT | JUNE 30, 2015 | 9 |
Table of Contents
PIMCO RealPath™ Blend 2025 Fund
Institutional Class - PPZRX | Class A - PPZAX | |
Administrative Class - PPZDX |
Cumulative Returns Through June 30, 2015
Cumulative Total Return for the period ended June 30, 2015 | ||||||
Fund Inception (12/31/14) | ||||||
![]() | PIMCO RealPath™ Blend 2025 Fund Institutional Class | 0.39% | ||||
PIMCO RealPath™ Blend 2025 Fund Administrative Class | 0.30% | |||||
PIMCO RealPath™ Blend 2025 Fund Class A | 0.17% | |||||
PIMCO RealPath™ Blend 2025 Fund Class A (adjusted) | -5.32% | |||||
![]() | Real Return Target 2025 Index± | 0.54% |
All Fund returns are net of fees and expenses.
± Real Return Target 2025 Index is a composite of other indexes. The sub-indexes represent stocks, bonds, TIPs, commodities and real estate securities. The component asset classes are weighted within each index to reflect a targeted level of risk at the beginning and end of the investment horizon. Over time, the weights are adjusted based on predetermined formulas to systematically reduce the level of potential risk as the index’s maturity date approaches. It is not possible to invest directly in an unmanaged index.
Performance quoted represents past performance. Past performance is not a guarantee or a reliable indicator of future results. Current performance may be lower or higher than performance shown. Investment return and the principal value of an investment will fluctuate. Shares may be worth more or less than original cost when redeemed. Returns shown do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. The adjusted return takes into account the maximum sales charge of 5.50% on Class A shares. The Fund’s total annual operating expense ratio as stated in the Fund’s current prospectus, as supplemented to date, is 0.36% for the Institutional Class shares, 0.86% for the Class A shares, and 0.61% for the Administrative Class shares. Details regarding any Fund’s operating expenses can be found in the Fund’s prospectus. For performance current to the most recent month-end, visit www.pimco.com.
Investment Objective and Strategy Overview
» | The PIMCO RealPath™ Blend 2025 Fund seeks to maximize total return, consistent with prudent investment management, by investing under normal circumstances substantially all of its assets in Institutional Class or Class M shares of any funds of the Trust and PIMCO Funds, and in other affiliated funds, including funds of PIMCO ETF Trust, except funds of funds (“Underlying PIMCO Funds”), and unaffiliated funds that are registered under the Investment Company Act of 1940 (the “1940 Act”) (collectively, “Acquired Funds”). The Fund may also invest substantially all of its assets in equity securities, Fixed Income Instruments of varying maturities, or related derivatives on any securities mentioned above. Under normal circumstances, the Fund seeks to invest substantially all of its equity exposure in index tracking securities, including investments in affiliated or unaffiliated investment companies, which will be registered under the 1940 Act, or related derivatives on such securities or indexes. “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. |
Portfolio Insights
» | The Fund is intended for investors seeking professional management of a comprehensive asset allocation strategy for retirement savings. The Fund is managed for shareholders that plan to retire or begin withdrawing assets around the year 2025, the Fund’s target year. This is the “self-elected” year of retirement for the investors in the Fund. The primary difference between the PIMCO RealPath Blend Funds is their asset allocation, which varies depending on the number of years left until the “self-elected” year of retirement indicated in the PIMCO RealPath Blend Fund’s name. The Fund’s allocation is intended to meaningfully reduce risk and increasingly focus on preservation of capital as the target retirement date of the Fund nears. An investment in the Fund is not guaranteed, and you may experience losses, including losses near, at, or after the target year indicated in the Fund’s name. There is no guarantee that the Fund will provide adequate income at and through your retirement. |
» | The Fund commenced operations on December 31, 2014. |
» | Exposure to U.S. large cap equities benefited absolute performance as this asset class posted positive returns over the reporting period. |
» | Within U.S. core bond exposure, expressed via the PIMCO Total Return Fund, short exposure to the euro and the Japanese yen benefited relative performance as these currencies generally depreciated over the reporting period. |
» | Within long U.S. Treasury exposure, expressed via the PIMCO Long Duration Total Return Fund, an underweight to the 30-year sector benefited relative performance as 30-year interest rates generally rose over the reporting period. |
» | Exposure to real estate detracted from absolute performance as real estate investment trusts (“REITs”) posted negative returns over the reporting period. |
» | Exposure to emerging market bonds detracted from absolute performance as emerging market bonds posted negative returns over the reporting period. |
» | Within long U.S. Treasury Inflation-Protected Securities (“TIPS”) exposure, expressed via the PIMCO Real Return Asset Fund, exposure to Mexican inflation-linked bonds detracted from relative performance as real interest rates (i.e., rates of return in excess of expected inflation) in Mexico generally increased over the reporting period. |
10 | PIMCO EQUITY SERIES |
Table of Contents
PIMCO RealPath™ Blend 2030 Fund
Institutional Class - PBPNX | Class A - PBPAX | |
Administrative Class - PBPRX |
Cumulative Returns Through June 30, 2015
Cumulative Total Return for the period ended June 30, 2015 | ||||||
Fund Inception (12/31/14) | ||||||
![]() | PIMCO RealPath™ Blend 2030 Fund Institutional Class | 0.49% | ||||
PIMCO RealPath™ Blend 2030 Fund Administrative Class | 0.37% | |||||
PIMCO RealPath™ Blend 2030 Fund Class A | 0.27% | |||||
PIMCO RealPath™ Blend 2030 Fund Class A (adjusted) | -5.23% | |||||
![]() | Real Return Target 2030 Index± | 0.65% |
All Fund returns are net of fees and expenses.
± Real Return Target 2030 Index is a composite of other indexes. The sub-indexes represent stocks, bonds, TIPs, commodities and real estate securities. The component asset classes are weighted within each index to reflect a targeted level of risk at the beginning and end of the investment horizon. Over time, the weights are adjusted based on predetermined formulas to systematically reduce the level of potential risk as the index’s maturity date approaches. It is not possible to invest directly in an unmanaged index.
Performance quoted represents past performance. Past performance is not a guarantee or a reliable indicator of future results. Current performance may be lower or higher than performance shown. Investment return and the principal value of an investment will fluctuate. Shares may be worth more or less than original cost when redeemed. Returns shown do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. The adjusted return takes into account the maximum sales charge of 5.50% on Class A shares. The Fund’s total annual operating expense ratio as stated in the Fund’s current prospectus, as supplemented to date, is 0.34% for the Institutional Class shares, 0.84% for the Class A shares, and 0.59% for the Administrative Class shares. Details regarding any Fund’s operating expenses can be found in the Fund’s prospectus. For performance current to the most recent month-end, visit www.pimco.com.
Investment Objective and Strategy Overview
» | The PIMCO RealPath™ Blend 2030 Fund seeks to maximize total return, consistent with prudent investment management, by investing under normal circumstances substantially all of its assets in Institutional Class or Class M shares of any funds of the Trust and PIMCO Funds, and in other affiliated funds, including funds of PIMCO ETF Trust, except funds of funds (“Underlying PIMCO Funds”), and unaffiliated funds that are registered under the Investment Company Act of 1940 (the “1940 Act”) (collectively, “Acquired Funds”). The Fund may also invest substantially all of its assets in equity securities, Fixed Income Instruments of varying maturities, or related derivatives on any securities mentioned above. Under normal circumstances, the Fund seeks to invest substantially all of its equity exposure in index tracking securities, including investments in affiliated or unaffiliated investment companies, which will be registered under the 1940 Act, or related derivatives on such securities or indexes. “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. |
Portfolio Insights
» | The Fund is intended for investors seeking professional management of a comprehensive asset allocation strategy for retirement savings. The Fund is managed for shareholders that plan to retire or begin withdrawing assets around the year 2030, the Fund’s target year. This is the “self-elected” year of retirement for the investors in the Fund. The primary difference between the PIMCO RealPath Blend Funds is their asset allocation, which varies depending on the number of years left until the “self-elected” year of retirement indicated in the PIMCO RealPath Blend Fund’s name. The Fund’s allocation is intended to meaningfully reduce risk and increasingly focus on preservation of capital as the target retirement date of the Fund nears. An investment in the Fund is not guaranteed, and you may experience losses, including losses near, at, or after the target year indicated in the Fund’s name. There is no guarantee that the Fund will provide adequate income at and through your retirement. |
» | The Fund commenced operations on December 31, 2014. |
» | Exposure to U.S. large cap equities benefited absolute performance as this asset class posted positive returns over the reporting period. |
» | Within U.S. core bond exposure, expressed via the PIMCO Total Return Fund, short exposure to the euro and the Japanese yen benefited relative performance as these currencies generally depreciated over the reporting period. |
» | Within long U.S. Treasury exposure, expressed via the PIMCO Long Duration Total Return Fund, an underweight to the 30-year sector benefited relative performance as 30-year interest rates generally rose over the reporting period. |
» | Exposure to real estate detracted from absolute performance as real estate investment trusts (“REITs”) posted negative returns over the reporting period. |
» | Exposure to emerging market bonds detracted from absolute performance as emerging market bonds posted negative returns over the reporting period. |
» | Within long U.S. Treasury Inflation-Protected Securities (“TIPS”) exposure, expressed via the PIMCO Real Return Asset Fund, exposure to Mexican inflation-linked bonds detracted from relative performance as real interest rates (i.e., rates of return in excess of expected inflation) in Mexico generally increased over the reporting period. |
ANNUAL REPORT | JUNE 30, 2015 | 11 |
Table of Contents
PIMCO RealPath™ Blend 2035 Fund
Institutional Class - PDGZX | Class A - PDGAX | |
Administrative Class - PDGDX |
Cumulative Returns Through June 30, 2015
Cumulative Total Return for the period ended June 30, 2015 | ||||||
Fund Inception (12/31/14) | ||||||
![]() | PIMCO RealPath™ Blend 2035 Fund Institutional Class | 0.89% | ||||
PIMCO RealPath™ Blend 2035 Fund Administrative Class | 0.77% | |||||
PIMCO RealPath™ Blend 2035 Fund Class A | 0.65% | |||||
PIMCO RealPath™ Blend 2035 Fund Class A (adjusted) | -4.87% | |||||
![]() | Real Return Target 2035 Index± | 0.81% |
All Fund returns are net of fees and expenses.
± Real Return Target 2035 Index is a composite of other indexes. The sub-indexes represent stocks, bonds, TIPs, commodities and real estate securities. The component asset classes are weighted within each index to reflect a targeted level of risk at the beginning and end of the investment horizon. Over time, the weights are adjusted based on predetermined formulas to systematically reduce the level of potential risk as the index’s maturity date approaches. It is not possible to invest directly in an unmanaged index.
Performance quoted represents past performance. Past performance is not a guarantee or a reliable indicator of future results. Current performance may be lower or higher than performance shown. Investment return and the principal value of an investment will fluctuate. Shares may be worth more or less than original cost when redeemed. Returns shown do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. The adjusted return takes into account the maximum sales charge of 5.50% on Class A shares. The Fund’s total annual operating expense ratio as stated in the Fund’s current prospectus, as supplemented to date, is 0.31% for the Institutional Class shares, 0.81% for the Class A shares, and 0.56% for the Administrative Class shares. Details regarding any Fund’s operating expenses can be found in the Fund’s prospectus. For performance current to the most recent month-end, visit www.pimco.com.
Investment Objective and Strategy Overview
» | The PIMCO RealPath™ Blend 2035 Fund seeks to maximize total return, consistent with prudent investment management, by investing under normal circumstances substantially all of its assets in Institutional Class or Class M shares of any funds of the Trust and PIMCO Funds, and in other affiliated funds, including funds of PIMCO ETF Trust, except funds of funds (“Underlying PIMCO Funds”), and unaffiliated funds that are registered under the Investment Company Act of 1940 (the “1940 Act”) (collectively, “Acquired Funds”). The Fund may also invest substantially all of its assets in equity securities, Fixed Income Instruments of varying maturities, or related derivatives on any securities mentioned above. Under normal circumstances, the Fund seeks to invest substantially all of its equity exposure in index tracking securities, including investments in affiliated or unaffiliated investment companies, which will be registered under the 1940 Act, or related derivatives on such securities or indexes. “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. |
Portfolio Insights
» | The Fund is intended for investors seeking professional management of a comprehensive asset allocation strategy for retirement savings. The Fund is managed for shareholders that plan to retire or begin withdrawing assets around the year 2035, the Fund’s target year. This is the “self-elected” year of retirement for the investors in the Fund. The primary difference between the PIMCO RealPath Blend Funds is their asset allocation, which varies depending on the number of years left until the “self-elected” year of retirement indicated in the PIMCO RealPath Blend Fund’s name. The Fund’s allocation is intended to meaningfully reduce risk and increasingly focus on preservation of capital as the target retirement date of the Fund nears. An investment in the Fund is not guaranteed, and you may experience losses, including losses near, at, or after the target year indicated in the Fund’s name. There is no guarantee that the Fund will provide adequate income at and through your retirement. |
» | The Fund commenced operations on December 31, 2014. |
» | Exposure to U.S. large cap equities benefited absolute performance as this asset class posted positive returns over the reporting period. |
» | Within long U.S. Treasury exposure, expressed via the PIMCO Long Duration Total Return Fund, an underweight to the 30-year sector benefited relative performance as 30-year interest rates generally rose over the reporting period. |
» | Exposure to real estate detracted from absolute performance as real estate investment trusts (“REITs”) posted negative returns over the reporting period. |
» | Exposure to emerging market bonds detracted from absolute performance as emerging market bonds posted negative returns over the reporting period. |
» | Within long U.S. Treasury Inflation-Protected Securities (“TIPS”) exposure, expressed via the PIMCO Real Return Asset Fund, exposure to Mexican inflation-linked bonds detracted from relative performance as real interest rates (i.e., rates of return in excess of expected inflation) in Mexico generally increased over the reporting period. |
12 | PIMCO EQUITY SERIES |
Table of Contents
PIMCO RealPath™ Blend 2040 Fund
Institutional Class - PVPNX | Class A - PVPAX | |
Administrative Class - PVPRX |
Cumulative Returns Through June 30, 2015
Cumulative Total Return for the period ended June 30, 2015 | ||||||
Fund Inception (12/31/14) | ||||||
![]() | PIMCO RealPath™ Blend 2040 Fund Institutional Class | 1.19% | ||||
PIMCO RealPath™ Blend 2040 Fund Administrative Class | 1.08% | |||||
PIMCO RealPath™ Blend 2040 Fund Class A | 0.98% | |||||
PIMCO RealPath™ Blend 2040 Fund Class A (adjusted) | -4.55% | |||||
![]() | Real Return Target 2040 Index± | 1.00% |
All Fund returns are net of fees and expenses.
± Real Return Target 2040 Index is a composite of other indexes. The sub-indexes represent stocks, bonds, TIPs, commodities and real estate securities. The component asset classes are weighted within each index to reflect a targeted level of risk at the beginning and end of the investment horizon. Over time, the weights are adjusted based on predetermined formulas to systematically reduce the level of potential risk as the index’s maturity date approaches. It is not possible to invest directly in an unmanaged index.
Performance quoted represents past performance. Past performance is not a guarantee or a reliable indicator of future results. Current performance may be lower or higher than performance shown. Investment return and the principal value of an investment will fluctuate. Shares may be worth more or less than original cost when redeemed. Returns shown do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. The adjusted return takes into account the maximum sales charge of 5.50% on Class A shares. The Fund’s total annual operating expense ratio as stated in the Fund’s current prospectus, as supplemented to date, is 0.28% for the Institutional Class shares, 0.78% for the Class A shares, and 0.53% for the Administrative Class shares. Details regarding any Fund’s operating expenses can be found in the Fund’s prospectus. For performance current to the most recent month-end, visit www.pimco.com.
Investment Objective and Strategy Overview
» | The PIMCO RealPath™ Blend 2040 Fund seeks to maximize total return, consistent with prudent investment management, by investing under normal circumstances substantially all of its assets in Institutional Class or Class M shares of any funds of the Trust and PIMCO Funds, and in other affiliated funds, including funds of PIMCO ETF Trust, except funds of funds (“Underlying PIMCO Funds”), and unaffiliated funds that are registered under the Investment Company Act of 1940 (the “1940 Act”) (collectively, “Acquired Funds”). The Fund may also invest substantially all of its assets in equity securities, Fixed Income Instruments of varying maturities, or related derivatives on any securities mentioned above. Under normal circumstances, the Fund seeks to invest substantially all of its equity exposure in index tracking securities, including investments in affiliated or unaffiliated investment companies, which will be registered under the 1940 Act, or related derivatives on such securities or indexes. “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. |
Portfolio Insights
» | The Fund is intended for investors seeking professional management of a comprehensive asset allocation strategy for retirement savings. The Fund is managed for shareholders that plan to retire or begin withdrawing assets around the year 2040, the Fund’s target year. This is the “self-elected” year of retirement for the investors in the Fund. The primary difference between the PIMCO RealPath Blend Funds is their asset allocation, which varies depending on the number of years left until the “self-elected” year of retirement indicated in the PIMCO RealPath Blend Fund’s name. The Fund’s allocation is intended to meaningfully reduce risk and increasingly focus on preservation of capital as the target retirement date of the Fund nears. An investment in the Fund is not guaranteed, and you may experience losses, including losses near, at, or after the target year indicated in the Fund’s name. There is no guarantee that the Fund will provide adequate income at and through your retirement. |
» | The Fund commenced operations on December 31, 2014. |
» | Exposure to U.S. large cap equities benefited absolute performance as this asset class posted positive returns over the reporting period. |
» | Within long U.S. Treasury exposure, expressed via the PIMCO Long Duration Total Return Fund, an underweight to the 30-year sector benefited relative performance as 30-year interest rates generally rose over the reporting period. |
» | Exposure to real estate detracted from absolute performance as real estate investment trusts (“REITs”) posted negative returns over the reporting period. |
» | Exposure to emerging market bonds detracted from absolute performance as emerging market bonds posted negative returns over the reporting period. |
» | Within long U.S. Treasury Inflation-Protected Securities (“TIPS”) exposure, expressed via the PIMCO Real Return Asset Fund, exposure to Mexican inflation-linked bonds detracted from relative performance as real interest rates (i.e., rates of return in excess of expected inflation) in Mexico generally increased over the reporting period. |
ANNUAL REPORT | JUNE 30, 2015 | 13 |
Table of Contents
PIMCO RealPath™ Blend 2045 Fund
Institutional Class - PVQNX | Class A - PVQAX | |
Administrative Class - PVQDX |
Cumulative Returns Through June 30, 2015
Cumulative Total Return for the period ended June 30, 2015 | ||||||
Fund Inception (12/31/14) | ||||||
![]() | PIMCO RealPath™ Blend 2045 Fund Institutional Class | 1.48% | ||||
PIMCO RealPath™ Blend 2045 Fund Administrative Class | 1.33% | |||||
PIMCO RealPath™ Blend 2045 Fund Class A | 1.16% | |||||
PIMCO RealPath™ Blend 2045 Fund Class A (adjusted) | -4.39% | |||||
![]() | Real Return Target 2045 Index± | 1.18% |
All Fund returns are net of fees and expenses.
± Real Return Target 2045 Index is a composite of other indexes. The sub-indexes represent stocks, bonds, TIPs, commodities and real estate securities. The component asset classes are weighted within each index to reflect a targeted level of risk at the beginning and end of the investment horizon. Over time, the weights are adjusted based on predetermined formulas to systematically reduce the level of potential risk as the index’s maturity date approaches. It is not possible to invest directly in an unmanaged index.
Performance quoted represents past performance. Past performance is not a guarantee or a reliable indicator of future results. Current performance may be lower or higher than performance shown. Investment return and the principal value of an investment will fluctuate. Shares may be worth more or less than original cost when redeemed. Returns shown do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. The adjusted return takes into account the maximum sales charge of 5.50% on Class A shares. The Fund’s total annual operating expense ratio as stated in the Fund’s current prospectus, as supplemented to date, is 0.26% for the Institutional Class shares, 0.76% for the Class A shares, and 0.51% for the Administrative Class shares. Details regarding any Fund’s operating expenses can be found in the Fund’s prospectus. For performance current to the most recent month-end, visit www.pimco.com.
Investment Objective and Strategy Overview
» | The PIMCO RealPath™ Blend 2045 Fund seeks to maximize total return, consistent with prudent investment management, by investing under normal circumstances substantially all of its assets in Institutional Class or Class M shares of any funds of the Trust and PIMCO Funds, and in other affiliated funds, including funds of PIMCO ETF Trust, except funds of funds (“Underlying PIMCO Funds”), and unaffiliated funds that are registered under the Investment Company Act of 1940 (the “1940 Act”) (collectively, “Acquired Funds”). The Fund may also invest substantially all of its assets in equity securities, Fixed Income Instruments of varying maturities, or related derivatives on any securities mentioned above. Under normal circumstances, the Fund seeks to invest substantially all of its equity exposure in index tracking securities, including investments in affiliated or unaffiliated investment companies, which will be registered under the 1940 Act, or related derivatives on such securities or indexes. “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. |
Portfolio Insights
» | The Fund is intended for investors seeking professional management of a comprehensive asset allocation strategy for retirement savings. The Fund is managed for shareholders that plan to retire or begin withdrawing assets around the year 2045, the Fund’s target year. This is the “self-elected” year of retirement for the investors in the Fund. The primary difference between the PIMCO RealPath Blend Funds is their asset allocation, which varies depending on the number of years left until the “self-elected” year of retirement indicated in the PIMCO RealPath Blend Fund’s name. The Fund’s allocation is intended to meaningfully reduce risk and increasingly focus on preservation of capital as the target retirement date of the Fund nears. An investment in the Fund is not guaranteed, and you may experience losses, including losses near, at, or after the target year indicated in the Fund’s name. There is no guarantee that the Fund will provide adequate income at and through your retirement. |
» | The Fund commenced operations on December 31, 2014. |
» | Exposure to U.S. large cap equities benefited absolute performance as this asset class posted positive returns over the reporting period. |
» | Within long U.S. Treasury exposure, expressed via the PIMCO Long Duration Total Return Fund, an underweight to the 30-year sector benefited relative performance as 30-year interest rates generally rose over the reporting period. |
» | Exposure to real estate detracted from absolute performance as real estate investment trusts (“REITs”) posted negative returns over the reporting period. |
» | Exposure to emerging market bonds detracted from absolute performance as emerging market bonds posted negative returns over the reporting period. |
» | Within long U.S. Treasury Inflation-Protected Securities (“TIPS”) exposure, expressed via the PIMCO Real Return Asset Fund, exposure to Mexican inflation-linked bonds detracted from relative performance as real interest rates (i.e., rates of return in excess of expected inflation) in Mexico generally increased over the reporting period. |
14 | PIMCO EQUITY SERIES |
Table of Contents
PIMCO RealPath™ Blend 2050 Fund
Institutional Class - PPQZX | Class A - PPQAX | |
Administrative Class - PPQDX |
Cumulative Returns Through June 30, 2015
Cumulative Total Return for the period ended June 30, 2015 | ||||||
Fund Inception (12/31/14) | ||||||
PIMCO RealPath™ Blend 2050 Fund Institutional Class | 1.59% | |||||
PIMCO RealPath™ Blend 2050 Fund Administrative Class | 1.39% | |||||
PIMCO RealPath™ Blend 2050 Fund Class A | 1.31% | |||||
PIMCO RealPath™ Blend 2050 Fund Class A (adjusted) | -4.24% | |||||
Real Return Target 2050 Index± | 1.38% |
All Fund returns are net of fees and expenses.
± Real Return Target 2050 Index is a composite of other indexes. The sub-indexes represent stocks, bonds, TIPs, commodities and real estate securities. The component asset classes are weighted within each index to reflect a targeted level of risk at the beginning and end of the investment horizon. Over time, the weights are adjusted based on predetermined formulas to systematically reduce the level of potential risk as the index’s maturity date approaches. It is not possible to invest directly in an unmanaged index.
Performance quoted represents past performance. Past performance is not a guarantee or a reliable indicator of future results. Current performance may be lower or higher than performance shown. Investment return and the principal value of an investment will fluctuate. Shares may be worth more or less than original cost when redeemed. Returns shown do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. The adjusted return takes into account the maximum sales charge of 5.50% on Class A shares. The Fund’s total annual operating expense ratio as stated in the Fund’s current prospectus, as supplemented to date, is 0.24% for the Institutional Class shares, 0.74% for the Class A shares, and 0.49% for the Administrative Class shares. Details regarding any Fund’s operating expenses can be found in the Fund’s prospectus. For performance current to the most recent month-end, visit www.pimco.com.
Investment Objective and Strategy Overview
» | The PIMCO RealPath™ Blend 2050 Fund seeks to maximize total return, consistent with prudent investment management, by investing under normal circumstances substantially all of its assets in Institutional Class or Class M shares of any funds of the Trust and PIMCO Funds, and in other affiliated funds, including funds of PIMCO ETF Trust, except funds of funds (“Underlying PIMCO Funds”), and unaffiliated funds that are registered under the Investment Company Act of 1940 (the “1940 Act”) (collectively, “Acquired Funds”). The Fund may also invest substantially all of its assets in equity securities, Fixed Income Instruments of varying maturities, or related derivatives on any securities mentioned above. Under normal circumstances, the Fund seeks to invest substantially all of its equity exposure in index tracking securities, including investments in affiliated or unaffiliated investment companies, which will be registered under the 1940 Act, or related derivatives on such securities or indexes. “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. |
Portfolio Insights
» | The Fund is intended for investors seeking professional management of a comprehensive asset allocation strategy for retirement savings. The Fund is managed for shareholders that plan to retire or begin withdrawing assets around the year 2050, the Fund’s target year. This is the “self-elected” year of retirement for the investors in the Fund. The primary difference between the PIMCO RealPath Blend Funds is their asset allocation, which varies depending on the number of years left until the “self-elected” year of retirement indicated in the PIMCO RealPath Blend Fund’s name. The Fund’s allocation is intended to meaningfully reduce risk and increasingly focus on preservation of capital as the target retirement date of the Fund nears. An investment in the Fund is not guaranteed, and you may experience losses, including losses near, at, or after the target year indicated in the Fund’s name. There is no guarantee that the Fund will provide adequate income at and through your retirement. |
» | The Fund commenced operations on December 31, 2014. |
» | Exposure to U.S. large cap equities benefited absolute performance as this asset class posted positive returns over the reporting period. |
» | Within long U.S. Treasury exposure, expressed via the PIMCO Long Duration Total Return Fund, an underweight to the 30-year sector benefited relative performance as 30-year interest rates generally rose over the reporting period. |
» | Exposure to real estate detracted from absolute performance as real estate investment trusts (“REITs”) posted negative returns over the reporting period. |
» | Exposure to emerging market bonds detracted from absolute performance as emerging market bonds posted negative returns over the reporting period. |
» | Within long U.S. Treasury Inflation-Protected Securities (“TIPS”) exposure, expressed via the PIMCO Real Return Asset Fund, exposure to Mexican inflation-linked bonds detracted from relative performance as real interest rates (i.e., rates of return in excess of expected inflation) in Mexico generally increased over the reporting period. |
ANNUAL REPORT | JUNE 30, 2015 | 15 |
Table of Contents
PIMCO RealPath™ Blend 2055 Fund
Institutional Class - PRQZX | Class A - PRQAX | |
Administrative Class - PRQDX |
Cumulative Returns Through June 30, 2015
Cumulative Total Return for the period ended June 30, 2015 | ||||||
Fund Inception (12/31/14) | ||||||
![]() | PIMCO RealPath™ Blend 2055 Fund Institutional Class | 1.58% | ||||
PIMCO RealPath™ Blend 2055 Fund Administrative Class | 1.47% | |||||
PIMCO RealPath™ Blend 2055 Fund Class A | 1.28% | |||||
PIMCO RealPath™ Blend 2055 Fund Class A (adjusted) | -4.27% | |||||
![]() | Real Return Target 40+ Index± | 1.48% |
All Fund returns are net of fees and expenses.
± Real Return Target 40+ Index is a composite of other indexes. The sub-indexes represent stocks, bonds, TIPs, commodities and real estate securities. The component asset classes are weighted within each index to reflect a targeted level of risk at the beginning and end of the investment horizon. Over time, the weights are adjusted based on predetermined formulas to systematically reduce the level of potential risk as the index’s maturity date approaches. It is not possible to invest directly in an unmanaged index.
Performance quoted represents past performance. Past performance is not a guarantee or a reliable indicator of future results. Current performance may be lower or higher than performance shown. Investment return and the principal value of an investment will fluctuate. Shares may be worth more or less than original cost when redeemed. Returns shown do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. The adjusted return takes into account the maximum sales charge of 5.50% on Class A shares. The Fund’s total annual operating expense ratio as stated in the Fund’s current prospectus, as supplemented to date, is 0.24% for the Institutional Class shares, 0.74% for the Class A shares, and 0.49% for the Administrative Class shares. Details regarding any Fund’s operating expenses can be found in the Fund’s prospectus. For performance current to the most recent month-end, visit www.pimco.com.
Investment Objective and Strategy Overview
» | The PIMCO RealPath™ Blend 2055 Fund seeks to maximize total return, consistent with prudent investment management, by investing under normal circumstances substantially all of its assets in Institutional Class or Class M shares of any funds of the Trust and PIMCO Funds, and in other affiliated funds, including funds of PIMCO ETF Trust, except funds of funds (“Underlying PIMCO Funds”), and unaffiliated funds that are registered under the Investment Company Act of 1940 (the “1940 Act”) (collectively, “Acquired Funds”). The Fund may also invest substantially all of its assets in equity securities, Fixed Income Instruments of varying maturities, or related derivatives on any securities mentioned above. Under normal circumstances, the Fund seeks to invest substantially all of its equity exposure in index tracking securities, including investments in affiliated or unaffiliated investment companies, which will be registered under the 1940 Act, or related derivatives on such securities or indexes. “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. |
Portfolio Insights
» | The Fund is intended for investors seeking professional management of a comprehensive asset allocation strategy for retirement savings. The Fund is managed for shareholders that plan to retire or begin withdrawing assets around the year 2055, the Fund’s target year. This is the “self-elected” year of retirement for the investors in the Fund. The primary difference between the PIMCO RealPath Blend Funds is their asset allocation, which varies depending on the number of years left until the “self-elected” year of retirement indicated in the PIMCO RealPath Blend Fund’s name. The Fund’s allocation is intended to meaningfully reduce risk and increasingly focus on preservation of capital as the target retirement date of the Fund nears. An investment in the Fund is not guaranteed, and you may experience losses, including losses near, at, or after the target year indicated in the Fund’s name. There is no guarantee that the Fund will provide adequate income at and through your retirement. |
» | The Fund commenced operations on December 31, 2014. |
» | Exposure to U.S. large cap equities benefited absolute performance as this asset class posted positive returns over the reporting period. |
» | Within long U.S. Treasury exposure, expressed via the PIMCO Long Duration Total Return Fund, an underweight to the 30-year sector benefited relative performance as 30-year interest rates generally rose over the reporting period. |
» | Exposure to real estate detracted from absolute performance as real estate investment trusts (“REITs”) posted negative returns over the reporting period. |
» | Exposure to emerging market bonds detracted from absolute performance as emerging market bonds posted negative returns over the reporting period. |
» | Within long U.S. Treasury Inflation-Protected Securities (“TIPS”) exposure, expressed via the PIMCO Real Return Asset Fund, exposure to Mexican inflation-linked bonds detracted from relative performance as real interest rates (i.e., rates of return in excess of expected inflation) in Mexico generally increased over the reporting period. |
16 | PIMCO EQUITY SERIES |
Table of Contents
PIMCO RealPath™ Blend Income Fund
Institutional Class - PBRNX | Class A - PBRAX | |
Administrative Class - PBRDX |
Cumulative Returns Through June 30, 2015
Cumulative Total Return for the period ended June 30, 2015 | ||||||
Fund Inception (12/31/14) | ||||||
![]() | PIMCO RealPath™ Blend Income Fund Institutional Class | -0.02% | ||||
PIMCO RealPath™ Blend Income Fund Administrative Class | -0.21% | |||||
PIMCO RealPath™ Blend Income Fund Class A | -0.22% | |||||
PIMCO RealPath™ Blend Income Fund Class A (adjusted) | -5.69% | |||||
![]() | Real Return Target Today Index± | 0.43% |
All Fund returns are net of fees and expenses.
± Real Return Target Today Index is a composite of other indexes. The sub-indexes represent stocks, bonds, TIPs, commodities and real estate securities. The component asset classes are weighted within each index to reflect a targeted level of risk at the beginning and end of the investment horizon. Over time, the weights are adjusted based on predetermined formulas to systematically reduce the level of potential risk as the index’s maturity date approaches. It is not possible to invest directly in an unmanaged index.
Performance quoted represents past performance. Past performance is not a guarantee or a reliable indicator of future results. Current performance may be lower or higher than performance shown. Investment return and the principal value of an investment will fluctuate. Shares may be worth more or less than original cost when redeemed. Returns shown do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. The adjusted return takes into account the maximum sales charge of 5.50% on Class A shares. The Fund’s total annual operating expense ratio as stated in the Fund’s current prospectus, as supplemented to date, is 0.40% for the Institutional Class shares, 0.90% for the Class A shares, and 0.65% for the Administrative Class shares. Details regarding any Fund’s operating expenses can be found in the Fund’s prospectus. For performance current to the most recent month-end, visit www.pimco.com.
Investment Objective and Strategy Overview
» | The PIMCO RealPath™ Blend Income Fund seeks to maximize total return, consistent with prudent investment management, by investing under normal circumstances substantially all of its assets in Institutional Class or Class M shares of any funds of the Trust and PIMCO Funds, and in other affiliated funds, including funds of PIMCO ETF Trust, except funds of funds (“Underlying PIMCO Funds”), and unaffiliated funds that are registered under the Investment Company Act of 1940 (the “1940 Act”) (collectively, “Acquired Funds”). The Fund may also invest substantially all of its assets in equity securities, Fixed Income Instruments of varying maturities, or related derivatives on any securities mentioned above. Under normal circumstances, the Fund seeks to invest substantially all of its equity exposure in index tracking securities, including investments in affiliated or unaffiliated investment companies, which will be registered under the 1940 Act, or related derivatives on such securities or indexes. “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. |
Portfolio Insights
» | The Fund is intended for investors seeking professional management of a comprehensive asset allocation strategy for retirement savings. The primary difference between the PIMCO RealPath Blend Funds is their asset allocation, which varies depending on the number of years left until the “self-elected” year of retirement indicated in the PIMCO RealPath Blend Fund’s name. Unlike the other PIMCO RealPath Blend Funds, the Fund does not include a “self-elected” year of retirement in its name because the Fund is managed for shareholders who are retired or about to retire soon and are more focused on preservation of capital and withdrawing portions of their investments. The asset allocation of the Fund is based on the asset allocation at zero years left until retirement on the glide path and is intended to be used throughout an investor’s retirement. An investment in the Fund is not guaranteed, and you may experience losses. There is no guarantee that the Fund will provide adequate income at and through your retirement. |
» | The Fund commenced operations on December 31, 2014. |
» | Exposure to U.S. large cap equities benefited absolute performance as this asset class posted positive returns over the reporting period. |
» | Within U.S. core bond exposure, expressed via the PIMCO Total Return Fund, short exposure to the euro and the Japanese yen benefited relative performance as these currencies generally depreciated over the reporting period. |
» | Within long U.S. Treasury exposure, expressed via the PIMCO Long Duration Total Return Fund, an underweight to the 30-year sector benefited relative performance as 30-year interest rates generally rose over the reporting period. |
» | Exposure to real estate detracted from absolute performance as real estate investment trusts (“REITs”) posted negative returns over the reporting period. |
» | Exposure to emerging market bonds detracted from absolute performance as emerging market bonds posted negative returns over the reporting period. |
» | Within long U.S. Treasury Inflation-Protected Securities (“TIPS”) exposure, expressed via the PIMCO Real Return Asset Fund, exposure to Mexican inflation-linked bonds detracted from relative performance as real interest rates (i.e., rates of return in excess of expected inflation) in Mexico generally increased over the reporting period. |
ANNUAL REPORT | JUNE 30, 2015 | 17 |
Table of Contents
Example
As a shareholder of a Fund, you incur two types of costs: (1) transaction costs, including sales charges (loads) on purchase payments and exchange fees and (2) ongoing costs, including management fees, distribution and/or service (12b-1) fees, and other Fund expenses. The Example is intended to help you understand your ongoing costs (in dollars) of investing in a Fund and to compare these costs with the ongoing costs of investing in other mutual funds.
The Example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period indicated, which for all Funds and share classes is from January 1, 2015 to June 30, 2015 unless noted otherwise in the table and footnotes below.
Actual Expenses
The information in the table under the heading “Actual” provides information about actual account values and actual expenses. You may use the information in these columns, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = $8.60), then multiply the result by the number in the appropriate column for your share class, in the column entitled “Expenses Paid During Period” to estimate the expenses you paid on your account during this period.
Hypothetical Example for Comparison Purposes
The information in the table under the heading “Hypothetical (5% return before expenses)” provides information about hypothetical account values and hypothetical expenses based on a Fund’s actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Fund’s actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in a Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transactional costs, such as sales charges (loads) on purchase payments and exchange fees. Therefore, the information under the heading “Hypothetical (5% return before expenses)” is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.
Expense ratios may vary from period to period because of various factors such as an increase in expenses that are not covered by the management fees, such as fees and expenses of the independent trustees and their counsel, extraordinary expenses and interest expense.
Actual | Hypothetical (5% return before expenses) | |||||||||||||||||||||||||||||||||
Beginning Account Value (01/01/15) | Ending Account Value (06/30/15) | Expenses Paid During Period* | Beginning Account Value (01/01/15) | Ending Account Value (06/30/15) | Expenses Paid During Period* | Net Annualized Expense Ratio** | ||||||||||||||||||||||||||||
PIMCO RealPath™ Blend 2020 Fund | ||||||||||||||||||||||||||||||||||
Institutional Class | $ | 1,000.00 | $ | 1,001.90 | $ | 0.15 | $ | 1,000.00 | $ | 1,024.51 | $ | 0.15 | 0.03 | % | ||||||||||||||||||||
Administrative Class | 1,000.00 | 1,000.80 | 1.38 | 1,000.00 | 1,023.28 | 1.40 | 0.28 | |||||||||||||||||||||||||||
Class A | 1,000.00 | 999.70 | 2.61 | 1,000.00 | 1,022.04 | 2.64 | 0.53 | |||||||||||||||||||||||||||
PIMCO RealPath™ Blend 2025 Fund | ||||||||||||||||||||||||||||||||||
Institutional Class | $ | 1,000.00 | $ | 1,003.90 | $ | 0.15 | $ | 1,000.00 | $ | 1,024.51 | $ | 0.15 | 0.03 | % | ||||||||||||||||||||
Administrative Class | 1,000.00 | 1,003.00 | 1.38 | 1,000.00 | 1,023.28 | 1.40 | 0.28 | |||||||||||||||||||||||||||
Class A | 1,000.00 | 1,001.70 | 2.62 | 1,000.00 | 1,022.04 | 2.64 | 0.53 | |||||||||||||||||||||||||||
PIMCO RealPath™ Blend 2030 Fund | ||||||||||||||||||||||||||||||||||
Institutional Class | $ | 1,000.00 | $ | 1,004.90 | $ | 0.20 | $ | 1,000.00 | $ | 1,024.46 | $ | 0.20 | 0.04 | % | ||||||||||||||||||||
Administrative Class | 1,000.00 | 1,003.70 | 1.43 | 1,000.00 | 1,023.23 | 1.45 | 0.29 | |||||||||||||||||||||||||||
Class A | 1,000.00 | 1,002.70 | 2.67 | 1,000.00 | 1,021.99 | 2.69 | 0.54 | |||||||||||||||||||||||||||
PIMCO RealPath™ Blend 2035 Fund | ||||||||||||||||||||||||||||||||||
Institutional Class | $ | 1,000.00 | $ | 1,008.90 | $ | 0.25 | $ | 1,000.00 | $ | 1,024.41 | $ | 0.25 | 0.05 | % | ||||||||||||||||||||
Administrative Class | 1,000.00 | 1,007.70 | 1.49 | 1,000.00 | 1,023.18 | 1.50 | 0.30 | |||||||||||||||||||||||||||
Class A | 1,000.00 | 1,006.50 | 2.72 | 1,000.00 | 1,021.95 | 2.74 | 0.55 |
18 | PIMCO EQUITY SERIES |
Table of Contents
Actual | Hypothetical (5% return before expenses) | |||||||||||||||||||||||||||||||||
Beginning Account Value (01/01/15) | Ending Account Value (06/30/15) | Expenses Paid During Period* | Beginning Account Value (01/01/15) | Ending Account Value (06/30/15) | Expenses Paid During Period* | Net Annualized Expense Ratio** | ||||||||||||||||||||||||||||
PIMCO RealPath™ Blend 2040 Fund | ||||||||||||||||||||||||||||||||||
Institutional Class | $ | 1,000.00 | $ | 1,011.90 | $ | 0.25 | $ | 1,000.00 | $ | 1,024.41 | $ | 0.25 | 0.05 | % | ||||||||||||||||||||
Administrative Class | 1,000.00 | 1,010.80 | 1.49 | 1,000.00 | 1,023.18 | 1.50 | 0.30 | |||||||||||||||||||||||||||
Class A | 1,000.00 | 1,009.80 | 2.73 | 1,000.00 | 1,021.95 | 2.74 | 0.55 | |||||||||||||||||||||||||||
PIMCO RealPath™ Blend 2045 Fund | ||||||||||||||||||||||||||||||||||
Institutional Class | $ | 1,000.00 | $ | 1,014.80 | $ | 0.25 | $ | 1,000.00 | $ | 1,024.41 | $ | 0.25 | 0.05 | % | ||||||||||||||||||||
Administrative Class | 1,000.00 | 1,013.30 | 1.49 | 1,000.00 | 1,023.18 | 1.50 | 0.30 | |||||||||||||||||||||||||||
Class A | 1,000.00 | 1,011.60 | 2.73 | 1,000.00 | 1,021.95 | 2.74 | 0.55 | |||||||||||||||||||||||||||
PIMCO RealPath™ Blend 2050 Fund | ||||||||||||||||||||||||||||||||||
Institutional Class | $ | 1,000.00 | $ | 1,015.90 | $ | 0.25 | $ | 1,000.00 | $ | 1,024.41 | $ | 0.25 | 0.05 | % | ||||||||||||||||||||
Administrative Class | 1,000.00 | 1,013.90 | 1.49 | 1,000.00 | 1,023.18 | 1.50 | 0.30 | |||||||||||||||||||||||||||
Class A | 1,000.00 | 1,013.10 | 2.73 | 1,000.00 | 1,021.95 | 2.74 | 0.55 | |||||||||||||||||||||||||||
PIMCO RealPath™ Blend 2055 Fund | ||||||||||||||||||||||||||||||||||
Institutional Class | $ | 1,000.00 | $ | 1,015.80 | $ | 0.25 | $ | 1,000.00 | $ | 1,024.41 | $ | 0.25 | 0.05 | % | ||||||||||||||||||||
Administrative Class | 1,000.00 | 1,014.70 | 1.49 | 1,000.00 | 1,023.18 | 1.50 | 0.30 | |||||||||||||||||||||||||||
Class A | 1,000.00 | 1,012.80 | 2.73 | 1,000.00 | 1,021.95 | 2.74 | 0.55 | |||||||||||||||||||||||||||
PIMCO RealPath™ Blend Income Fund | ||||||||||||||||||||||||||||||||||
Institutional Class | $ | 1,000.00 | $ | 999.80 | $ | 0.15 | $ | 1,000.00 | $ | 1,024.51 | $ | 0.15 | 0.03 | % | ||||||||||||||||||||
Administrative Class | 1,000.00 | 997.90 | 1.38 | 1,000.00 | 1,023.28 | 1.40 | 0.28 | |||||||||||||||||||||||||||
Class A | 1,000.00 | 997.80 | 2.61 | 1,000.00 | 1,022.04 | 2.64 | 0.53 |
* Expenses Paid During Period are equal to the net annualized expense ratio for the class, multiplied by the average account value over the period, multiplied by the number of days in the period/365 (to reflect the one-half year period).
** The Net Annualized Expense Ratio is reflective of any applicable waivers related to contractual agreements for contractual fee waivers or voluntary fee waivers. Details regarding fee waivers can be found in Note 7 in the Notes to Financial Statements.
ANNUAL REPORT | JUNE 30, 2015 | 19 |
Table of Contents
Selected Per Share Data for the Period Ended: | Net Asset Value Beginning of Period | Net Investment Income (a) | Net Realized/ Gain (Loss) | Total from Investment Operations | Income | Distributions Capital Gains | Total Distributions | |||||||||||||||||||||
PIMCO RealPath™ Blend 2020 Fund | ||||||||||||||||||||||||||||
Institutional Class | ||||||||||||||||||||||||||||
12/31/2014 - 06/30/2015 | $ | 10.00 | $ | 0.11 | $ | (0.09 | ) | $ | 0.02 | $ | (0.05 | ) | $ | 0.00 | $ | (0.05 | ) | |||||||||||
Administrative Class | ||||||||||||||||||||||||||||
12/31/2014 - 06/30/2015 | 10.00 | 0.10 | (0.09 | ) | 0.01 | (0.04 | ) | 0.00 | (0.04 | ) | ||||||||||||||||||
Class A | ||||||||||||||||||||||||||||
12/31/2014 - 06/30/2015 | 10.00 | 0.09 | (0.09 | ) | 0.00 | (0.03 | ) | 0.00 | (0.03 | ) | ||||||||||||||||||
PIMCO RealPath™ Blend 2025 Fund | ||||||||||||||||||||||||||||
Institutional Class | ||||||||||||||||||||||||||||
12/31/2014 - 06/30/2015 | $ | 10.00 | $ | 0.12 | $ | (0.08 | ) | $ | 0.04 | $ | (0.05 | ) | $ | 0.00 | $ | (0.05 | ) | |||||||||||
Administrative Class | ||||||||||||||||||||||||||||
12/31/2014 - 06/30/2015 | 10.00 | 0.11 | (0.08 | ) | 0.03 | (0.04 | ) | 0.00 | (0.04 | ) | ||||||||||||||||||
Class A | ||||||||||||||||||||||||||||
12/31/2014 - 06/30/2015 | 10.00 | 0.10 | (0.08 | ) | 0.02 | (0.03 | ) | 0.00 | (0.03 | ) | ||||||||||||||||||
PIMCO RealPath™ Blend 2030 Fund | ||||||||||||||||||||||||||||
Institutional Class | ||||||||||||||||||||||||||||
12/31/2014 - 06/30/2015 | $ | 10.00 | $ | 0.13 | $ | (0.08 | ) | $ | 0.05 | $ | (0.05 | ) | $ | 0.00 | $ | (0.05 | ) | |||||||||||
Administrative Class | ||||||||||||||||||||||||||||
12/31/2014 - 06/30/2015 | 10.00 | 0.12 | (0.08 | ) | 0.04 | (0.04 | ) | 0.00 | (0.04 | ) | ||||||||||||||||||
Class A | ||||||||||||||||||||||||||||
12/31/2014 - 06/30/2015 | 10.00 | 0.10 | (0.07 | ) | 0.03 | (0.03 | ) | 0.00 | (0.03 | ) | ||||||||||||||||||
PIMCO RealPath™ Blend 2035 Fund | ||||||||||||||||||||||||||||
Institutional Class | ||||||||||||||||||||||||||||
12/31/2014 - 06/30/2015 | $ | 10.00 | $ | 0.13 | $ | (0.04 | ) | $ | 0.09 | $ | (0.05 | ) | $ | 0.00 | $ | (0.05 | ) | |||||||||||
Administrative Class | ||||||||||||||||||||||||||||
12/31/2014 - 06/30/2015 | 10.00 | 0.11 | (0.03 | ) | 0.08 | (0.04 | ) | 0.00 | (0.04 | ) | ||||||||||||||||||
Class A | ||||||||||||||||||||||||||||
12/31/2014 - 06/30/2015 | 10.00 | 0.12 | (0.05 | ) | 0.07 | (0.04 | ) | 0.00 | (0.04 | ) | ||||||||||||||||||
PIMCO RealPath™ Blend 2040 Fund | ||||||||||||||||||||||||||||
Institutional Class | ||||||||||||||||||||||||||||
12/31/2014 - 06/30/2015 | $ | 10.00 | $ | 0.12 | $ | 0.00 | $ | 0.12 | $ | (0.05 | ) | $ | 0.00 | $ | (0.05 | ) | ||||||||||||
Administrative Class | ||||||||||||||||||||||||||||
12/31/2014 - 06/30/2015 | 10.00 | 0.11 | 0.00 | 0.11 | (0.04 | ) | 0.00 | (0.04 | ) | |||||||||||||||||||
Class A | ||||||||||||||||||||||||||||
12/31/2014 - 06/30/2015 | 10.00 | 0.10 | 0.00 | 0.10 | (0.03 | ) | 0.00 | (0.03 | ) | |||||||||||||||||||
PIMCO RealPath™ Blend 2045 Fund | ||||||||||||||||||||||||||||
Institutional Class | ||||||||||||||||||||||||||||
12/31/2014 - 06/30/2015 | $ | 10.00 | $ | 0.12 | $ | 0.03 | $ | 0.15 | $ | (0.05 | ) | $ | 0.00 | $ | (0.05 | ) | ||||||||||||
Administrative Class | ||||||||||||||||||||||||||||
12/31/2014 - 06/30/2015 | 10.00 | 0.14 | (0.01 | ) | 0.13 | (0.04 | ) | 0.00 | (0.04 | ) | ||||||||||||||||||
Class A | ||||||||||||||||||||||||||||
12/31/2014 - 06/30/2015 | 10.00 | 0.09 | 0.03 | 0.12 | (0.03 | ) | 0.00 | (0.03 | ) | |||||||||||||||||||
PIMCO RealPath™ Blend 2050 Fund | ||||||||||||||||||||||||||||
Institutional Class | ||||||||||||||||||||||||||||
12/31/2014 - 06/30/2015 | $ | 10.00 | $ | 0.12 | $ | 0.04 | $ | 0.16 | $ | (0.05 | ) | $ | 0.00 | $ | (0.05 | ) | ||||||||||||
Administrative Class | ||||||||||||||||||||||||||||
12/31/2014 - 06/30/2015 | 10.00 | 0.12 | 0.02 | 0.14 | (0.04 | ) | 0.00 | (0.04 | ) | |||||||||||||||||||
Class A | ||||||||||||||||||||||||||||
12/31/2014 - 06/30/2015 | 10.00 | 0.10 | 0.03 | 0.13 | (0.03 | ) | 0.00 | (0.03 | ) | |||||||||||||||||||
PIMCO RealPath™ Blend 2055 Fund | ||||||||||||||||||||||||||||
Institutional Class | ||||||||||||||||||||||||||||
12/31/2014 - 06/30/2015 | $ | 10.00 | $ | 0.12 | $ | 0.04 | $ | 0.16 | $ | (0.05 | ) | $ | 0.00 | $ | (0.05 | ) | ||||||||||||
Administrative Class | ||||||||||||||||||||||||||||
12/31/2014 - 06/30/2015 | 10.00 | 0.11 | 0.04 | 0.15 | (0.04 | ) | 0.00 | (0.04 | ) | |||||||||||||||||||
Class A | ||||||||||||||||||||||||||||
12/31/2014 - 06/30/2015 | 10.00 | 0.13 | 0.00 | 0.13 | (0.04 | ) | 0.00 | (0.04 | ) |
Please see footnotes on page 22.
20 | PIMCO EQUITY SERIES | See Accompanying Notes |
Table of Contents
Net Asset Value End of Period | Total Return | Net Assets End of Period (000s) | Ratio of Expenses to Average Net Assets | Ratio of Expenses to Average Net Assets Excluding Waivers | Ratio of Expenses to Average Net Assets Excluding Interest Expense | Ratio of Expenses to Average Net Assets Excluding Interest Expense and Waivers | Ratio of Net Investment Income to Average Net Assets | Portfolio Turnover Rate | ||||||||||||||||||||||||||
$ | 9.97 | 0.19 | % | $ | 3,007 | 0.03 | %* | 0.57 | %* | 0.03 | %* | 0.57 | %* | 2.20 | %* | 5 | % | |||||||||||||||||
9.97 | 0.08 | 10 | 0.28 | * | 0.82 | * | 0.28 | * | 0.82 | * | 1.92 | * | 5 | |||||||||||||||||||||
9.97 | (0.03 | ) | 10 | 0.53 | * | 1.07 | * | 0.53 | * | 1.07 | * | 1.70 | * | 5 | ||||||||||||||||||||
$ | 9.99 | 0.39 | % | $ | 3,026 | 0.03 | %* | 0.57 | %* | 0.03 | %* | 0.57 | %* | 2.38 | %* | 5 | % | |||||||||||||||||
9.99 | 0.30 | 15 | 0.28 | * | 0.82 | * | 0.28 | * | 0.82 | * | 2.20 | * | 5 | |||||||||||||||||||||
9.99 | 0.17 | 11 | 0.53 | * | 1.07 | * | 0.53 | * | 1.07 | * | 1.92 | * | 5 | |||||||||||||||||||||
$ | 10.00 | 0.49 | % | $ | 3,015 | 0.04 | %* | 0.58 | %* | 0.04 | %* | 0.58 | %* | 2.55 | %* | 6 | % | |||||||||||||||||
10.00 | 0.37 | 10 | 0.29 | * | 0.83 | * | 0.29 | * | 0.83 | * | 2.30 | * | 6 | |||||||||||||||||||||
10.00 | 0.27 | 10 | 0.54 | * | 1.08 | * | 0.54 | * | 1.08 | * | 2.04 | * | 6 | |||||||||||||||||||||
$ | 10.04 | 0.89 | % | $ | 3,027 | 0.05 | %* | 0.58 | %* | 0.05 | %* | 0.58 | %* | 2.48 | %* | 6 | % | |||||||||||||||||
10.04 | 0.77 | 10 | 0.30 | * | 0.83 | * | 0.30 | * | 0.83 | * | 2.22 | * | 6 | |||||||||||||||||||||
10.03 | 0.65 | 22 | 0.55 | * | 1.08 | * | 0.55 | * | 1.08 | * | 2.33 | * | 6 | |||||||||||||||||||||
$ | 10.07 | 1.19 | % | $ | 3,036 | 0.05 | %* | 0.58 | %* | 0.05 | %* | 0.58 | %* | 2.39 | %* | 6 | % | |||||||||||||||||
10.07 | 1.08 | 12 | 0.30 | * | 0.83 | * | 0.30 | * | 0.83 | * | 2.20 | * | 6 | |||||||||||||||||||||
10.07 | 0.98 | 11 | 0.55 | * | 1.08 | * | 0.55 | * | 1.08 | * | 1.93 | * | 6 | |||||||||||||||||||||
$ | 10.10 | 1.48 | % | $ | 3,044 | 0.05 | %* | 0.58 | %* | 0.05 | %* | 0.58 | %* | 2.37 | %* | 6 | % | |||||||||||||||||
10.09 | 1.33 | 39 | 0.30 | * | 0.83 | * | 0.30 | * | 0.83 | * | 2.69 | * | 6 | |||||||||||||||||||||
10.09 | 1.16 | 10 | 0.55 | * | 1.08 | * | 0.55 | * | 1.08 | * | 1.86 | * | 6 | |||||||||||||||||||||
$ | 10.11 | 1.59 | % | $ | 3,046 | 0.05 | %* | 0.58 | %* | 0.05 | %* | 0.58 | %* | 2.39 | %* | 6 | % | |||||||||||||||||
10.10 | 1.39 | 14 | 0.30 | * | 0.83 | * | 0.30 | * | 0.83 | * | 2.33 | * | 6 | |||||||||||||||||||||
10.10 | 1.31 | 15 | 0.55 | * | 1.08 | * | 0.55 | * | 1.08 | * | 2.05 | * | 6 | |||||||||||||||||||||
$ | 10.11 | 1.58 | % | $ | 3,048 | 0.05 | %* | 0.58 | %* | 0.05 | %* | 0.58 | %* | 2.39 | %* | 5 | % | |||||||||||||||||
10.11 | 1.47 | 11 | 0.30 | * | 0.83 | * | 0.30 | * | 0.83 | * | 2.18 | * | 5 | |||||||||||||||||||||
10.09 | 1.28 | 66 | 0.55 | * | 1.08 | * | 0.55 | * | 1.08 | * | 2.53 | * | 5 |
Please see footnotes on page 22.
ANNUAL REPORT | JUNE 30, 2015 | 21 |
Table of Contents
Financial Highlights (Cont.)
Selected Per Share Data for the Period Ended: | Net Asset Value Beginning of Period | Net Investment Income (a) | Net Realized/ Gain (Loss) | Total from Investment Operations | Income | Distributions Capital Gains | Total Distributions | |||||||||||||||||||||
PIMCO RealPath™ Blend Income Fund | ||||||||||||||||||||||||||||
Institutional Class | ||||||||||||||||||||||||||||
12/31/2014 - 06/30/2015 | $ | 10.00 | $ | 0.10 | $ | (0.10 | ) | $ | 0.00 | $ | (0.05 | ) | $ | 0.00 | $ | (0.05 | ) | |||||||||||
Administrative Class | ||||||||||||||||||||||||||||
12/31/2014 - 06/30/2015 | 10.00 | 0.09 | (0.11 | ) | (0.02 | ) | (0.04 | ) | 0.00 | (0.04 | ) | |||||||||||||||||
Class A | ||||||||||||||||||||||||||||
12/31/2014 - 06/30/2015 | 10.00 | 0.13 | (0.15 | ) | (0.02 | ) | (0.04 | ) | 0.00 | (0.04 | ) |
* | Annualized |
(a) | Per share amounts based on average number of shares outstanding during the period. |
22 | PIMCO EQUITY SERIES | See Accompanying Notes |
Table of Contents
Net Asset Value End of Period | Total Return | Net Assets End of Period (000s) | Ratio of Expenses to Average Net Assets | Ratio of Expenses to Average Net Assets Excluding Waivers | Ratio of Expenses to Average Net Assets Excluding Interest Expense | Ratio of Expenses to Average Net Assets Excluding Interest Expense and Waivers | Ratio of Net Investment Income to Average Net Assets | Portfolio Turnover Rate | ||||||||||||||||||||||||||
$ | 9.95 | (0.02 | )% | $ | 3,035 | 0.03 | %* | 0.56 | %* | 0.03 | %* | 0.56 | %* | 2.03 | %* | 4 | % | |||||||||||||||||
9.94 | (0.21 | ) | 14 | 0.28 | * | 0.81 | * | 0.28 | * | 0.81 | * | 1.84 | * | 4 | ||||||||||||||||||||
9.94 | (0.22 | ) | 73 | 0.53 | * | 1.06 | * | 0.53 | * | 1.06 | * | 2.61 | * | 4 |
ANNUAL REPORT | JUNE 30, 2015 | 23 |
Table of Contents
Statements of Assets and Liabilities
(Amounts in thousands†, except per share amounts) | PIMCO RealPath™ Blend | PIMCO RealPath™ Blend 2025 Fund | PIMCO RealPath™ Blend 2030 Fund | PIMCO RealPath™ Blend 2035 Fund | ||||||||||||
Assets: | ||||||||||||||||
Investments, at value | ||||||||||||||||
Investments in securities | $ | 1,204 | $ | 1,519 | $ | 1,815 | $ | 2,138 | ||||||||
Investments in Affiliates | 1,742 | 1,454 | 1,141 | 844 | ||||||||||||
Financial Derivative Instruments | ||||||||||||||||
Exchange-traded or centrally cleared | 10 | 10 | 9 | 9 | ||||||||||||
Over the counter | 2 | 2 | 2 | 2 | ||||||||||||
Cash | 75 | 73 | 73 | 72 | ||||||||||||
Dividends receivable from Affiliates | 4 | 4 | 4 | 3 | ||||||||||||
Total Assets | 3,037 | 3,062 | 3,044 | 3,068 | ||||||||||||
Liabilities: | ||||||||||||||||
Financial Derivative Instruments | ||||||||||||||||
Exchange-traded or centrally cleared | $ | 6 | $ | 6 | $ | 5 | $ | 5 | ||||||||
Payable for investments in Affiliates purchased | 4 | 4 | 4 | 3 | ||||||||||||
Accrued investment advisory fees | 0 | 0 | 0 | 1 | ||||||||||||
Accrued supervisory and administrative fees | 0 | 0 | 0 | 0 | ||||||||||||
Total Liabilities | 10 | 10 | 9 | 9 | ||||||||||||
Net Assets | $ | 3,027 | $ | 3,052 | $ | 3,035 | $ | 3,059 | ||||||||
Net Assets Consist of: | ||||||||||||||||
Paid in capital | $ | 3,035 | $ | 3,054 | $ | 3,034 | $ | 3,048 | ||||||||
Undistributed net investment income | 13 | 16 | 17 | 16 | ||||||||||||
Accumulated undistributed net realized gain | 9 | 10 | 13 | 13 | ||||||||||||
Net unrealized appreciation (depreciation) | (30 | ) | (28 | ) | (29 | ) | (18 | ) | ||||||||
$ | 3,027 | $ | 3,052 | $ | 3,035 | $ | 3,059 | |||||||||
Net Assets: | ||||||||||||||||
Institutional Class | $ | 3,007 | $ | 3,026 | $ | 3,015 | $ | 3,027 | ||||||||
Administrative Class | 10 | 15 | 10 | 10 | ||||||||||||
Class A | 10 | 11 | 10 | 22 | ||||||||||||
Shares Issued and Outstanding: | ||||||||||||||||
Institutional Class | 301 | 303 | 301 | 302 | ||||||||||||
Administrative Class | 1 | 1 | 1 | 1 | ||||||||||||
Class A | 1 | 1 | 1 | 2 | ||||||||||||
Net Asset Value and Redemption Price^ Per Share Outstanding: | ||||||||||||||||
Institutional Class | $ | 9.97 | $ | 9.99 | $ | 10.00 | $ | 10.04 | ||||||||
Administrative Class | 9.97 | 9.99 | 10.00 | 10.04 | ||||||||||||
Class A | 9.97 | 9.99 | 10.00 | 10.03 | ||||||||||||
Cost of Investments in securities | $ | 1,193 | $ | 1,509 | $ | 1,806 | $ | 2,121 | ||||||||
Cost of Investments in Affiliates | $ | 1,784 | $ | 1,492 | $ | 1,180 | $ | 880 | ||||||||
Cost or Premiums of Financial Derivative Instruments, net | $ | 5 | $ | 6 | $ | 5 | $ | 5 |
† | A zero balance may reflect actual amounts rounding to less than one thousand. |
^ | With respect to the A Class, the redemption price varies by the length of time the shares are held. |
24 | PIMCO EQUITY SERIES | See Accompanying Notes |
Table of Contents
June 30, 2015
PIMCO RealPath™ Blend 2040 Fund | PIMCO RealPath™ Blend 2045 Fund | PIMCO RealPath™ Blend 2050 Fund | PIMCO RealPath™ Blend 2055 Fund | PIMCO RealPath™ Blend Income Fund | ||||||||||||||
$ | 2,291 | $ | 2,472 | $ | 2,535 | $ | 2,574 | $ | 993 | |||||||||
690 | 541 | 460 | 468 | 1,952 | ||||||||||||||
10 | 11 | 12 | 12 | 9 | ||||||||||||||
2 | 2 | 2 | 2 | 2 | ||||||||||||||
73 | 75 | 74 | 77 | 171 | ||||||||||||||
3 | 2 | 2 | 2 | 4 | ||||||||||||||
3,069 | 3,103 | 3,085 | 3,135 | 3,131 | ||||||||||||||
$ | 7 | $ | 7 | $ | 8 | $ | 8 | $ | 4 | |||||||||
3 | 2 | 2 | 2 | 4 | ||||||||||||||
0 | 1 | 0 | 0 | 0 | ||||||||||||||
0 | 0 | 0 | 0 | 1 | ||||||||||||||
10 | 10 | 10 | 10 | 9 | ||||||||||||||
$ | 3,059 | $ | 3,093 | $ | 3,075 | $ | 3,125 | $ | 3,122 | |||||||||
$ | 3,038 | $ | 3,065 | $ | 3,045 | $ | 3,094 | $ | 3,140 | |||||||||
15 | 15 | 15 | 16 | 11 | ||||||||||||||
12 | 12 | 12 | 12 | 6 | ||||||||||||||
(6 | ) | 1 | 3 | 3 | (35 | ) | ||||||||||||
$ | 3,059 | $ | 3,093 | $ | 3,075 | $ | 3,125 | $ | 3,122 | |||||||||
$ | 3,036 | $ | 3,044 | $ | 3,046 | $ | 3,048 | $ | 3,035 | |||||||||
12 | 39 | 14 | 11 | 14 | ||||||||||||||
11 | 10 | 15 | 66 | 73 | ||||||||||||||
302 | 301 | 302 | 301 | 305 | ||||||||||||||
1 | 4 | 1 | 1 | 2 | ||||||||||||||
1 | 1 | 1 | 7 | 7 | ||||||||||||||
$ | 10.07 | $ | 10.10 | $ | 10.11 | $ | 10.11 | $ | 9.95 | |||||||||
10.07 | 10.09 | 10.10 | 10.11 | 9.94 | ||||||||||||||
10.07 | 10.09 | 10.10 | 10.09 | 9.94 | ||||||||||||||
$ | 2,270 | $ | 2,447 | $ | 2,509 | $ | 2,548 | $ | 987 | |||||||||
$ | 718 | $ | 566 | $ | 482 | $ | 491 | $ | 1,994 | |||||||||
$ | 5 | $ | 6 | $ | 6 | $ | 6 | $ | 5 |
ANNUAL REPORT | JUNE 30, 2015 | 25 |
Table of Contents
Period Ended June 30, 2015 | ||||||||||||||||
(Amounts in thousands†) | PIMCO RealPath™ Blend 2020 Fund (1) | PIMCO RealPath™ Blend 2025 Fund (1) | PIMCO RealPath™ Blend 2030 Fund (1) | PIMCO RealPath™ Blend 2035 Fund (1) | ||||||||||||
Investment Income: | ||||||||||||||||
Dividends | $ | 13 | $ | 17 | $ | 21 | $ | 25 | ||||||||
Dividends from Investments in Affiliates | 20 | 19 | 18 | 14 | ||||||||||||
Total Income | 33 | 36 | 39 | 39 | ||||||||||||
Expenses: | ||||||||||||||||
Investment advisory fees | 0 | 0 | 0 | 1 | ||||||||||||
Organizational expense | 17 | 17 | 17 | 17 | ||||||||||||
Total Expenses | 17 | 17 | 17 | 18 | ||||||||||||
Waiver and/or Reimbursement by PIMCO | (17 | ) | (17 | ) | (17 | ) | (17 | ) | ||||||||
Net Expenses | 0 | 0 | 0 | 1 | ||||||||||||
Net Investment Income | 33 | 36 | 39 | 38 | ||||||||||||
Net Realized Gain (Loss): | ||||||||||||||||
Investments in securities | 6 | 7 | 7 | 8 | ||||||||||||
Investments in Affiliates | 1 | 1 | 1 | 1 | ||||||||||||
Over the counter financial derivative instruments | (3 | ) | (3 | ) | (3 | ) | (3 | ) | ||||||||
Net Realized Gain | 4 | 5 | 5 | 6 | ||||||||||||
Net Change in Unrealized Appreciation (Depreciation): | ||||||||||||||||
Investments in securities | 11 | 10 | 9 | 17 | ||||||||||||
Investments in Affiliates | (42 | ) | (38 | ) | (39 | ) | (36 | ) | ||||||||
Exchange-traded or centrally cleared financial derivative instruments | (1 | ) | (2 | ) | (1 | ) | (1 | ) | ||||||||
Over the counter financial derivative instruments | 2 | 2 | 2 | 2 | ||||||||||||
Net Change in Unrealized Appreciation (Depreciation) | (30 | ) | (28 | ) | (29 | ) | (18 | ) | ||||||||
Net Increase (Decrease) in Net Assets Resulting from Operations | $ | 7 | $ | 13 | $ | 15 | $ | 26 |
† | A zero balance may reflect actual amounts rounding to less than one thousand. |
(1) | Inception date of the Fund was December 31, 2014. |
26 | PIMCO EQUITY SERIES | See Accompanying Notes |
Table of Contents
PIMCO RealPath™ Blend 2040 Fund (1) | PIMCO RealPath™ Blend 2045 Fund (1) | PIMCO RealPath™ Blend 2050 Fund (1) | PIMCO RealPath™ Blend 2055 Fund (1) | PIMCO RealPath™ Blend Income Fund (1) | ||||||||||||||
$ | 25 | $ | 28 | $ | 28 | $ | 29 | $ | 12 | |||||||||
12 | 9 | 9 | 9 | 19 | ||||||||||||||
37 | 37 | 37 | 38 | 31 | ||||||||||||||
0 | 1 | 0 | 1 | 0 | ||||||||||||||
17 | 17 | 17 | 17 | 17 | ||||||||||||||
17 | 18 | 17 | 18 | 17 | ||||||||||||||
(17 | ) | (17 | ) | (17 | ) | (17 | ) | (17 | ) | |||||||||
0 | 1 | 0 | 1 | 0 | ||||||||||||||
37 | 36 | 37 | 37 | 31 | ||||||||||||||
7 | 8 | 8 | 8 | 3 | ||||||||||||||
1 | 1 | 1 | 1 | 1 | ||||||||||||||
(3 | ) | (3 | ) | (3 | ) | (3 | ) | (3 | ) | |||||||||
5 | 6 | 6 | 6 | 1 | ||||||||||||||
21 | 26 | 25 | 26 | 6 | ||||||||||||||
(28 | ) | (25 | ) | (22 | ) | (23 | ) | (42 | ) | |||||||||
(1 | ) | (2 | ) | (2 | ) | (2 | ) | (1 | ) | |||||||||
2 | 2 | 2 | 2 | 2 | ||||||||||||||
(6 | ) | 1 | 3 | 3 | (35 | ) | ||||||||||||
$ | 36 | $ | 43 | $ | 46 | $ | 46 | $ | (3 | ) |
ANNUAL REPORT | JUNE 30, 2015 | 27 |
Table of Contents
Statements of Changes in Net Assets
PIMCO RealPath™ Blend 2020 Fund | PIMCO RealPath™ Blend 2025 Fund | PIMCO RealPath™ Blend 2030 Fund | PIMCO RealPath™ Blend 2035 Fund | |||||||||||||
(Amounts in thousands†) | Period from | Period from December 31, 2014 to June 30, 2015 | Period from December 31, 2014 to June 30, 2015 | Period from December 31, 2014 to June 30, 2015 | ||||||||||||
Increase (Decrease) in Net Assets from: | ||||||||||||||||
Operations: | ||||||||||||||||
Net investment income | $ | 33 | $ | 36 | $ | 39 | $ | 38 | ||||||||
Net realized gain | 4 | 5 | 5 | 6 | ||||||||||||
Net change in unrealized appreciation (depreciation) | (30 | ) | (28 | ) | (29 | ) | (18 | ) | ||||||||
Net Increase (Decrease) in Net Assets Resulting from Operations | 7 | 13 | 15 | 26 | ||||||||||||
Distributions to Shareholders: | ||||||||||||||||
From net investment income | ||||||||||||||||
Institutional Class | (15 | ) | (15 | ) | (15 | ) | (15 | ) | ||||||||
Administrative Class | 0 | 0 | 0 | 0 | ||||||||||||
Class A | 0 | 0 | 0 | 0 | ||||||||||||
Total Distributions | (15 | ) | (15 | ) | (15 | ) | (15 | ) | ||||||||
Portfolio Share Transactions: | ||||||||||||||||
Net increase resulting from Fund share transactions** | 3,035 | 3,054 | 3,035 | 3,048 | ||||||||||||
Total Increase in Net Assets | 3,027 | 3,052 | 3,035 | 3,059 | ||||||||||||
Net Assets: | ||||||||||||||||
Beginning of period | 0 | 0 | 0 | 0 | ||||||||||||
End of period* | $ | 3,027 | $ | 3,052 | $ | 3,035 | $ | 3,059 | ||||||||
* Including undistributed net investment income of: | $ | 13 | $ | 16 | $ | 17 | $ | 16 |
† | A zero balance may reflect actual amounts rounding to less than one thousand. |
** | See Note 11 in the Notes to Financial Statements. |
28 | PIMCO EQUITY SERIES | See Accompanying Notes |
Table of Contents
PIMCO RealPath™ Blend 2040 Fund | PIMCO RealPath™ Blend 2045 Fund | PIMCO RealPath™ Blend 2050 Fund | PIMCO RealPath™ Blend 2055 Fund | PIMCO RealPath™ Blend Income Fund | ||||||||||||||
Period from | Period from December 31, 2014 to June 30, 2015 | Period from December 31, 2014 to June 30, 2015 | Period from December 31, 2014 to June 30, 2015 | Period from December 31, 2014 to June 30, 2015 | ||||||||||||||
$ | 37 | $ | 36 | $ | 37 | $ | 37 | $ | 31 | |||||||||
5 | 6 | 6 | 6 | 1 | ||||||||||||||
(6 | ) | 1 | 3 | 3 | (35 | ) | ||||||||||||
36 | 43 | 46 | 46 | (3 | ) | |||||||||||||
(15 | ) | (15 | ) | (15 | ) | (15 | ) | (15 | ) | |||||||||
0 | 0 | 0 | 0 | 0 | ||||||||||||||
0 | 0 | 0 | 0 | 0 | ||||||||||||||
(15 | ) | (15 | ) | (15 | ) | (15 | ) | (15 | ) | |||||||||
3,038 | 3,065 | 3,044 | 3,094 | 3,140 | ||||||||||||||
3,059 | 3,093 | 3,075 | 3,125 | 3,122 | ||||||||||||||
0 | 0 | 0 | 0 | 0 | ||||||||||||||
$ | 3,059 | $ | 3,093 | $ | 3,075 | $ | 3,125 | $ | 3,122 | |||||||||
$ | 15 | $ | 15 | $ | 15 | $ | 16 | $ | 11 |
ANNUAL REPORT | JUNE 30, 2015 | 29 |
Table of Contents
Schedule of Investments PIMCO RealPath™ Blend 2020 Fund
SHARES | MARKET VALUE (000S) | |||||||||||
INVESTMENTS IN SECURITIES 39.8% | ||||||||||||
MUTUAL FUNDS 39.8% | ||||||||||||
Vanguard 500 Index Fund ‘Admiral’ | 2,381 | $ | 453 | |||||||||
Vanguard Developed Markets Index Fund ‘Admiral’ | 17,605 | 225 | ||||||||||
Vanguard Emerging Markets Stock Index Fund ‘Admiral’ | 6,605 | 225 | ||||||||||
Vanguard REIT Index Fund ‘Admiral’ | 1,393 | 148 | ||||||||||
Vanguard Small-Cap Index Fund ‘Admiral’ | 2,624 | 153 | ||||||||||
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Total Mutual Funds (Cost $1,193) | 1,204 | |||||||||||
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Total Investments in Securities (Cost $1,193) | 1,204 | |||||||||||
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SHARES | MARKET VALUE (000S) | |||||||||||
INVESTMENTS IN AFFILIATES 57.5% | ||||||||||||
MUTUAL FUNDS (a) 57.5% | ||||||||||||
PIMCO Emerging Local Bond Fund | 9,679 | $ | 75 | |||||||||
PIMCO Foreign Bond Fund (U.S. Dollar-Hedged) | 21,518 | 226 | ||||||||||
PIMCO High Yield Fund | 16,772 | 153 | ||||||||||
PIMCO Long Duration Total Return Fund | 19,810 | 224 | ||||||||||
PIMCO Real Return Asset Fund | 37,214 | 301 | ||||||||||
PIMCO Real Return Fund | 28,028 | 304 | ||||||||||
PIMCO Total Return Fund | 43,413 | 459 | ||||||||||
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Total Mutual Funds (Cost $1,784) | 1,742 | |||||||||||
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Total Investments in Affiliates (Cost $1,784) | 1,742 | |||||||||||
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MARKET VALUE (000S) | ||||||||||
Total Investments 97.3% (Cost $2,977) | $ | 2,946 | ||||||||
Financial Derivative | ||||||||||
(Cost or Premiums, net $5) | 6 | |||||||||
Other Assets and Liabilities, net 2.5% | 75 | |||||||||
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Net Assets 100.0% | $ | 3,027 | ||||||||
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NOTES TO SCHEDULE OF INVESTMENTS (AMOUNTS IN THOUSANDS*, EXCEPT NUMBER OF CONTRACTS AND UNITS):
* | A zero balance may reflect actual amounts rounding to less than one thousand. |
(a) | Institutional Class Shares of each Fund. |
(b) FINANCIAL DERIVATIVE INSTRUMENTS: EXCHANGE-TRADED OR CENTRALLY CLEARED
PURCHASED OPTIONS:
OPTIONS ON INDICES
Description | Strike Value | Expiration Date | # of Contracts | Cost | Market Value | |||||||||||||||
Put - CBOE S&P 500 Index | 1,650.000 | 01/15/2016 | 1 | $ | 5 | $ | 2 | |||||||||||||
Put - CBOE S&P 500 Index | 1,750.000 | 03/18/2016 | 2 | 9 | 8 | |||||||||||||||
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$ | 14 | $ | 10 | |||||||||||||||||
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Total Purchased Options | $ | 14 | $ | 10 | ||||||||||||||||
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WRITTEN OPTIONS:
OPTIONS ON INDICES
Description | Strike Value | Expiration Date | # of Contracts | Premiums (Received) | Market Value | |||||||||||||||
Put - CBOE S&P 500 Index | 1,500.000 | 01/15/2016 | 1 | $ | (4) | $ | (1) | |||||||||||||
Put - CBOE S&P 500 Index | 1,600.000 | 03/18/2016 | 2 | (5) | (5) | |||||||||||||||
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$ | (9) | $ | (6) | |||||||||||||||||
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Total Written Options | $ | (9) | $ | (6) | ||||||||||||||||
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FINANCIAL DERIVATIVE INSTRUMENTS: EXCHANGE-TRADED OR CENTRALLY CLEARED SUMMARY
The following is a summary of the market value and variation margin of Exchange-Traded or Centrally Cleared Financial Derivative Instruments as of June 30, 2015:
Financial Derivative Assets | Financial Derivative Liabilities | |||||||||||||||||||||||||||||||||
Market Value | Variation Margin Asset | Market Value | Variation Margin Liability | |||||||||||||||||||||||||||||||
Purchased Options | Futures | Swap Agreements | Total | Written Options | Futures | Swap Agreements | Total | |||||||||||||||||||||||||||
Total Exchange-Traded or Centrally Cleared | $ | 10 | $ | 0 | $ | 0 | $ | 10 | $ | (6 | ) | $ | 0 | $ | 0 | $ | (6 | ) | ||||||||||||||||
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30 | PIMCO EQUITY SERIES | See Accompanying Notes |
Table of Contents
June 30, 2015
(c) FINANCIAL DERIVATIVE INSTRUMENTS: OVER THE COUNTER
WRITTEN OPTIONS:
TRANSACTIONS IN WRITTEN CALL AND PUT OPTIONS FOR THE PERIOD ENDED JUNE 30, 2015:
# of Contracts | Premiums | |||||||
Balance at Beginning of Period | 0 | $ | 0 | |||||
Sales | 3 | (9 | ) | |||||
Closing Buys | 0 | 0 | ||||||
Expirations | 0 | 0 | ||||||
Exercised | 0 | 0 | ||||||
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Balance at End of Period | 3 | $ | (9 | ) | ||||
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SWAP AGREEMENTS:
TOTAL RETURN SWAPS ON COMMODITY INDICES
Counterparty | Pay/Receive (1) | Underlying Reference | # of Units | Financing Rate | Maturity Date | Notional Amount | Unrealized Appreciation | Swap Agreements, at Value | ||||||||||||||||||||||
Asset | Liability | |||||||||||||||||||||||||||||
CBK | Receive | BCOMTR Index | 377 | 3-Month U.S. Treasury Bill rate | 08/17/2015 | $ | 76 | $ | 2 | $ | 2 | $ | 0 | |||||||||||||||||
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Total Swap Agreements | $ | 2 | $ | 2 | $ | 0 | ||||||||||||||||||||||||
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(1) | Receive represents that the Fund receives payments for any positive return on the underlying reference. The Fund makes payments for any negative return on such underlying reference. Pay represents that the Fund receives payments for any negative return on the underlying reference. The Fund makes payments for any positive return on such underlying reference. |
FINANCIAL DERIVATIVE INSTRUMENTS: OVER THE COUNTER SUMMARY
The following is a summary by counterparty of the market value of OTC financial derivative instruments and collateral (received)/pledged as of June 30, 2015:
Financial Derivative Assets | Financial Derivative Liabilities | |||||||||||||||||||||||||||||||||||||||||||||
Counterparty | Forward Foreign Currency Contracts | Purchased Options | Swap Agreements | Total Over the Counter | Forward Foreign Currency Contracts | Written Options | Swap Agreements | Total Over the Counter | Net Market Value of OTC Derivatives | Collateral (Received)/ Pledged | Net Exposure (2) | |||||||||||||||||||||||||||||||||||
CBK | $ | 0 | $ | 0 | $ | 2 | $ | 2 | $ | 0 | $ | 0 | $ | 0 | $ | 0 | $ | 2 | $ | 0 | $ | 2 | ||||||||||||||||||||||||
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(2) | Net Exposure represents the net receivable/(payable) that would be due from/to the counterparty in the event of default. Exposure from OTC financial derivative instruments can only be netted across transactions governed under the same master agreement with the same legal entity. See Note 6, Principal Risks, in the Notes to Financial Statements for more information regarding master netting arrangements. |
FAIR VALUE OF FINANCIAL DERIVATIVE INSTRUMENTS
The following is a summary of the fair valuation of the Fund’s derivative instruments categorized by risk exposure. See Note 6, Principal Risks, in the Notes to Financial Statements on risks of the Fund.
Fair Values of Financial Derivative Instruments on the Statements of Assets and Liabilities as of June 30, 2015:
Derivatives not accounted for as hedging instruments | ||||||||||||||||||||||||
Commodity Contracts | Credit Contracts | Equity Contracts | Foreign Exchange Contracts | Interest Rate Contracts | Total | |||||||||||||||||||
Financial Derivative Instruments - Assets | ||||||||||||||||||||||||
Exchange-traded or centrally cleared | ||||||||||||||||||||||||
Purchased Options | $ | 0 | $ | 0 | $ | 10 | $ | 0 | $ | 0 | $ | 10 | ||||||||||||
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Over the counter | ||||||||||||||||||||||||
Swap Agreements | $ | 2 | $ | 0 | $ | 0 | $ | 0 | $ | 0 | $ | 2 | ||||||||||||
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$ | 2 | $ | 0 | $ | 10 | $ | 0 | $ | 0 | $ | 12 | |||||||||||||
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Financial Derivative Instruments - Liabilities | ||||||||||||||||||||||||
Exchange-traded or centrally cleared | ||||||||||||||||||||||||
Written Options | $ | 0 | $ | 0 | $ | 6 | $ | 0 | $ | 0 | $ | 6 | ||||||||||||
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See Accompanying Notes | ANNUAL REPORT | JUNE 30, 2015 | 31 |
Table of Contents
Schedule of Investments PIMCO RealPath™ Blend 2020 Fund (Cont.)
June 30, 2015
The Effect of Financial Derivative Instruments on the Statements of Operations for the period ended June 30, 2015:
Derivatives not accounted for as hedging instruments | ||||||||||||||||||||||||
Commodity Contracts | Credit Contracts | Equity Contracts | Foreign Exchange Contracts | Interest Rate Contracts | Total | |||||||||||||||||||
Net Realized (Loss) on Financial Derivative Instruments | ||||||||||||||||||||||||
Over the counter | ||||||||||||||||||||||||
Swap Agreements | $ | (3 | ) | $ | 0 | $ | 0 | $ | 0 | $ | 0 | $ | (3 | ) | ||||||||||
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Net Change in Unrealized Appreciation (Depreciation) on Financial Derivative Instruments |
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Exchange-traded or centrally cleared | ||||||||||||||||||||||||
Purchased Options | $ | 0 | $ | 0 | $ | (4 | ) | $ | 0 | $ | 0 | $ | (4 | ) | ||||||||||
Written Options | 0 | 0 | 3 | 0 | 0 | 3 | ||||||||||||||||||
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$ | 0 | $ | 0 | $ | (1 | ) | $ | 0 | $ | 0 | $ | (1 | ) | |||||||||||
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Over the counter | ||||||||||||||||||||||||
Swap Agreements | $ | 2 | $ | 0 | $ | 0 | $ | 0 | $ | 0 | $ | 2 | ||||||||||||
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$ | 2 | $ | 0 | $ | (1 | ) | $ | 0 | $ | 0 | $ | 1 | ||||||||||||
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FAIR VALUE MEASUREMENTS (1)
The following is a summary of the fair valuations according to the inputs used as of June 30, 2015 in valuing the Fund’s assets and liabilities:
Category and Subcategory | Level 1 | Level 2 | Level 3 | Fair Value at 06/30/2015 | ||||||||||||
Investments in Securities, at Value | ||||||||||||||||
Mutual Funds | $ | 1,204 | $ | 0 | $ | 0 | $ | 1,204 | ||||||||
$ | 1,204 | $ | 0 | $ | 0 | $ | 1,204 | |||||||||
Investments in Affiliates, at Value | ||||||||||||||||
Mutual Funds | 1,742 | 0 | 0 | 1,742 | ||||||||||||
Total Investments | $ | 2,946 | $ | 0 | $ | 0 | $ | 2,946 |
Category and Subcategory | Level 1 | Level 2 | Level 3 | Fair Value at 06/30/2015 | ||||||||||||
Financial Derivative Instruments - Assets | ||||||||||||||||
Exchange-traded or centrally cleared | $ | 0 | $ | 10 | $ | 0 | $ | 10 | ||||||||
Over the counter | 0 | 2 | 0 | 2 | ||||||||||||
$ | 0 | $ | 12 | $ | 0 | $ | 12 | |||||||||
Financial Derivative Instruments - Liabilities | ||||||||||||||||
Exchange-traded or centrally cleared | $ | 0 | $ | (6 | ) | $ | 0 | $ | (6 | ) | ||||||
Totals | $ | 2,946 | $ | 6 | $ | 0 | $ | 2,952 |
There were no significant transfers between Levels 1, 2, or 3 during the period ended June 30, 2015.
32 | PIMCO EQUITY SERIES | See Accompanying Notes |
Table of Contents
Schedule of Investments PIMCO RealPath™ Blend 2025 Fund
June 30, 2015
SHARES | MARKET VALUE (000S) | |||||||||||
INVESTMENTS IN SECURITIES 49.8% | ||||||||||||
MUTUAL FUNDS 49.8% | ||||||||||||
Vanguard 500 Index Fund ‘Admiral’ | 2,807 | $ | 534 | |||||||||
Vanguard Developed Markets Index Fund ‘Admiral’ | 23,717 | 303 | ||||||||||
Vanguard Emerging Markets Stock Index Fund ‘Admiral’ | 8,898 | 304 | ||||||||||
Vanguard REIT Index Fund ‘Admiral’ | 2,111 | 224 | ||||||||||
Vanguard Small-Cap Index Fund ‘Admiral’ | 2,651 | 154 | ||||||||||
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Total Mutual Funds (Cost $1,509) | 1,519 | |||||||||||
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Total Investments in Securities (Cost $1,509) | 1,519 | |||||||||||
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SHARES | MARKET VALUE (000S) | |||||||||||
INVESTMENTS IN AFFILIATES 47.6% | ||||||||||||
MUTUAL FUNDS (a) 47.6% | ||||||||||||
PIMCO Emerging Local Bond Fund | 9,779 | $ | 76 | |||||||||
PIMCO Foreign Bond Fund (U.S. Dollar-Hedged) | 14,493 | 153 | ||||||||||
PIMCO High Yield Fund | 25,505 | 232 | ||||||||||
PIMCO Long Duration Total Return Fund | 20,016 | 226 | ||||||||||
PIMCO Real Return Asset Fund | 37,599 | 304 | ||||||||||
PIMCO Real Return Fund | 21,238 | 230 | ||||||||||
PIMCO Total Return Fund | 22,005 | 233 | ||||||||||
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Total Mutual Funds (Cost $1,492) | 1,454 | |||||||||||
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Total Investments in Affiliates (Cost $1,492) | 1,454 | |||||||||||
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MARKET VALUE (000S) | ||||||||||
Total Investments 97.4% (Cost $3,001) | $ | 2,973 | ||||||||
Financial Derivative | ||||||||||
(Cost or Premiums, net $6) | 6 | |||||||||
Other Assets and Liabilities, net 2.4% | 73 | |||||||||
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Net Assets 100.0% | $ | 3,052 | ||||||||
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NOTES TO SCHEDULE OF INVESTMENTS (AMOUNTS IN THOUSANDS*, EXCEPT NUMBER OF CONTRACTS AND UNITS):
* | A zero balance may reflect actual amounts rounding to less than one thousand. |
(a) | Institutional Class Shares of each Fund. |
(b) FINANCIAL DERIVATIVE INSTRUMENTS: EXCHANGE-TRADED OR CENTRALLY CLEARED
PURCHASED OPTIONS:
OPTIONS ON INDICES
Description | Strike Value | Expiration Date | # of Contracts | Cost | Market Value | |||||||||||||||
Put - CBOE S&P 500 Index | 1,550.000 | 01/15/2016 | 2 | $ | 7 | $ | 2 | |||||||||||||
Put - CBOE S&P 500 Index | 1,750.000 | 03/18/2016 | 2 | 9 | 8 | |||||||||||||||
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$ | 16 | $ | 10 | |||||||||||||||||
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Total Purchased Options |
| $ | 16 | $ | 10 | |||||||||||||||
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WRITTEN OPTIONS:
OPTIONS ON INDICES
Description | Strike Value | Expiration Date | # of Contracts | Premiums (Received) | Market Value | |||||||||||||||
Put - CBOE S&P 500 Index | 1,400.000 | 01/15/2016 | 2 | $ | (5) | $ | (1) | |||||||||||||
Put - CBOE S&P 500 Index | 1,600.000 | 03/18/2016 | 2 | (5) | (5) | |||||||||||||||
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$ | (10) | $ | (6) | |||||||||||||||||
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Total Written Options |
| $ | (10) | $ | (6) | |||||||||||||||
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FINANCIAL DERIVATIVE INSTRUMENTS: EXCHANGE-TRADED OR CENTRALLY CLEARED SUMMARY
The following is a summary of the market value and variation margin of Exchange-Traded or Centrally Cleared Financial Derivative Instruments as of June 30, 2015:
Financial Derivative Assets | Financial Derivative Liabilities | |||||||||||||||||||||||||||||||||
Market Value | Variation Margin Asset | Market Value | Variation Margin Liability | |||||||||||||||||||||||||||||||
Purchased Options | Futures | Swap Agreements | Total | Written Options | Futures | Swap Agreements | Total | |||||||||||||||||||||||||||
Total Exchange-Traded or Centrally Cleared | $ | 10 | $ | 0 | $ | 0 | $ | 10 | $ | (6) | $ | 0 | $ | 0 | $ | (6 | ) | |||||||||||||||||
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See Accompanying Notes | ANNUAL REPORT | JUNE 30, 2015 | 33 |
Table of Contents
Schedule of Investments PIMCO RealPath™ Blend 2025 Fund (Cont.)
(c) FINANCIAL DERIVATIVE INSTRUMENTS: OVER THE COUNTER
WRITTEN OPTIONS:
TRANSACTIONS IN WRITTEN CALL AND PUT OPTIONS FOR THE PERIOD ENDED JUNE 30, 2015:
# of Contracts | Premiums | |||||||
Balance at Beginning of Period | 0 | $ | 0 | |||||
Sales | 4 | (10 | ) | |||||
Closing Buys | 0 | 0 | ||||||
Expirations | 0 | 0 | ||||||
Exercised | 0 | 0 | ||||||
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| |||||
Balance at End of Period | 4 | $ | (10 | ) | ||||
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SWAP AGREEMENTS:
TOTAL RETURN SWAPS ON COMMODITY INDICES
Counterparty | Pay/Receive (1) | Underlying Reference | # of Units | Financing Rate | Maturity Date | Notional Amount | Unrealized Appreciation | Swap Agreements, at Value | ||||||||||||||||||||||
Asset | Liability | |||||||||||||||||||||||||||||
CBK | Receive | BCOMTR Index | 377 | 3-Month U.S. Treasury Bill rate plus a specified spread | 08/17/2015 | $ | 76 | $ | 2 | $ | 2 | $ | 0 | |||||||||||||||||
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Total Swap Agreements |
| $ | 2 | $ | 2 | $ | 0 | |||||||||||||||||||||||
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(1) | Receive represents that the Fund receives payments for any positive return on the underlying reference. The Fund makes payments for any negative return on such underlying reference. Pay represents that the Fund receives payments for any negative return on the underlying reference. The Fund makes payments for any positive return on such underlying reference. |
FINANCIAL DERIVATIVE INSTRUMENTS: OVER THE COUNTER SUMMARY
The following is a summary by counterparty of the market value of OTC financial derivative instruments and collateral (received)/pledged as of June 30, 2015:
Financial Derivative Assets | Financial Derivative Liabilities | |||||||||||||||||||||||||||||||||||||||||||||
Counterparty | Forward Foreign Currency Contracts | Purchased Options | Swap Agreements | Total Over the Counter | Forward Foreign Currency Contracts | Written Options | Swap Agreements | Total Over the Counter | Net Market Value of OTC Derivatives | Collateral (Received)/ Pledged | Net Exposure (2) | |||||||||||||||||||||||||||||||||||
CBK | $ | 0 | $ | 0 | $ | 2 | $ | 2 | $ | 0 | $ | 0 | $ | 0 | $ | 0 | $ | 2 | $ | 0 | $ | 2 | ||||||||||||||||||||||||
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(2) | Net Exposure represents the net receivable/(payable) that would be due from/to the counterparty in the event of default. Exposure from OTC financial derivative instruments can only be netted across transactions governed under the same master agreement with the same legal entity. See Note 6, Principal Risks, in the Notes to Financial Statements for more information regarding master netting arrangements. |
FAIR VALUE OF FINANCIAL DERIVATIVE INSTRUMENTS
The following is a summary of the fair valuation of the Fund’s derivative instruments categorized by risk exposure. See Note 6, Principal Risks, in the Notes to Financial Statements on risks of the Fund.
Fair Values of Financial Derivative Instruments on the Statements of Assets and Liabilities as of June 30, 2015:
Derivatives not accounted for as hedging instruments | ||||||||||||||||||||||||
Commodity Contracts | Credit Contracts | Equity Contracts | Foreign Exchange Contracts | Interest Rate Contracts | Total | |||||||||||||||||||
Financial Derivative Instruments - Assets | ||||||||||||||||||||||||
Exchange-traded or centrally cleared | ||||||||||||||||||||||||
Purchased Options | $ | 0 | $ | 0 | $ | 10 | $ | 0 | $ | 0 | $ | 10 | ||||||||||||
|
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|
|
|
|
|
|
|
|
|
| |||||||||||||
Over the counter | ||||||||||||||||||||||||
Swap Agreements | $ | 2 | $ | 0 | $ | 0 | $ | 0 | $ | 0 | $ | 2 | ||||||||||||
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|
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|
|
|
|
|
| |||||||||||||
$ | 2 | $ | 0 | $ | 10 | $ | 0 | $ | 0 | $ | 12 | |||||||||||||
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| |||||||||||||
Financial Derivative Instruments - Liabilities | ||||||||||||||||||||||||
Exchange-traded or centrally cleared | ||||||||||||||||||||||||
Written Options | $ | 0 | $ | 0 | $ | 6 | $ | 0 | $ | 0 | $ | 6 | ||||||||||||
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|
34 | PIMCO EQUITY SERIES | See Accompanying Notes |
Table of Contents
June 30, 2015
The Effect of Financial Derivative Instruments on the Statements of Operations for the period ended June 30, 2015:
Derivatives not accounted for as hedging instruments | ||||||||||||||||||||||||
Commodity Contracts | Credit Contracts | Equity Contracts | Foreign Exchange Contracts | Interest Rate Contracts | Total | |||||||||||||||||||
Net Realized (Loss) on Financial Derivative Instruments | ||||||||||||||||||||||||
Over the counter | ||||||||||||||||||||||||
Swap Agreements | $ | (3 | ) | $ | 0 | $ | 0 | $ | 0 | $ | 0 | $ | (3 | ) | ||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Net Change in Unrealized Appreciation (Depreciation) on Financial Derivative Instruments |
| |||||||||||||||||||||||
Exchange-traded or centrally cleared | ||||||||||||||||||||||||
Purchased Options | $ | 0 | $ | 0 | $ | (6 | ) | $ | 0 | $ | 0 | $ | (6 | ) | ||||||||||
Written Options | 0 | 0 | 4 | 0 | 0 | 4 | ||||||||||||||||||
|
|
|
|
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|
|
|
|
|
| |||||||||||||
$ | 0 | $ | 0 | $ | (2 | ) | $ | 0 | $ | 0 | $ | (2 | ) | |||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Over the counter | ||||||||||||||||||||||||
Swap Agreements | $ | 2 | $ | 0 | $ | 0 | $ | 0 | $ | 0 | $ | 2 | ||||||||||||
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|
|
|
|
|
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|
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| |||||||||||||
$ | 2 | $ | 0 | $ | (2 | ) | $ | 0 | $ | 0 | $ | 0 | ||||||||||||
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|
|
|
|
|
|
FAIR VALUE MEASUREMENTS
The following is a summary of the fair valuations according to the inputs used as of June 30, 2015 in valuing the Fund’s assets and liabilities:
Category and Subcategory | Level 1 | Level 2 | Level 3 | Fair Value at | ||||||||||||
Investments in Securities, at Value | ||||||||||||||||
Mutual Funds | $ | 1,519 | $ | 0 | $ | 0 | $ | 1,519 | ||||||||
$ | 1,519 | $ | 0 | $ | 0 | $ | 1,519 | |||||||||
Investments in Affiliates, at Value | ||||||||||||||||
Mutual Funds | 1,454 | 0 | 0 | 1,454 | ||||||||||||
Total Investments | $ | 2,973 | $ | 0 | $ | 0 | $ | 2,973 |
Category and Subcategory | Level 1 | Level 2 | Level 3 | Fair Value at | ||||||||||||
Financial Derivative Instruments - Assets | ||||||||||||||||
Exchange-traded or centrally cleared | $ | 0 | $ | 10 | $ | 0 | $ | 10 | ||||||||
Over the counter | 0 | 2 | 0 | 2 | ||||||||||||
$ | 0 | $ | 12 | $ | 0 | $ | 12 | |||||||||
Financial Derivative Instruments - Liabilities | ||||||||||||||||
Exchange-traded or centrally cleared | $ | 0 | $ | (6 | ) | $ | 0 | $ | (6 | ) | ||||||
Totals | $ | 2,973 | $ | 6 | $ | 0 | $ | 2,979 |
There were no significant transfers between Levels 1, 2, or 3 during the period ended June 30, 2015.
See Accompanying Notes | ANNUAL REPORT | JUNE 30, 2015 | 35 |
Table of Contents
Schedule of Investments PIMCO RealPath™ Blend 2030 Fund
SHARES | MARKET VALUE (000S) | |||||||||||
INVESTMENTS IN SECURITIES 59.8% | ||||||||||||
MUTUAL FUNDS 59.8% | ||||||||||||
Vanguard 500 Index Fund ‘Admiral’ | 3,197 | $ | 609 | |||||||||
Vanguard Developed Markets Index Fund ‘Admiral’ | 29,541 | 377 | ||||||||||
Vanguard Emerging Markets Stock Index Fund ‘Admiral’ | 11,083 | 378 | ||||||||||
Vanguard REIT Index Fund ‘Admiral’ | 2,805 | 297 | ||||||||||
Vanguard Small-Cap Index Fund ‘Admiral’ | 2,642 | 154 | ||||||||||
|
| |||||||||||
Total Mutual Funds (Cost $1,806) | 1,815 | |||||||||||
|
| |||||||||||
Total Investments in Securities (Cost $1,806) | 1,815 | |||||||||||
|
| |||||||||||
INVESTMENTS IN AFFILIATES 37.6% | ||||||||||||
MUTUAL FUNDS (a) 37.6% | ||||||||||||
PIMCO Emerging Local Bond Fund | 19,755 | 154 |
SHARES | MARKET VALUE (000S) | |||||||||||
PIMCO Foreign Bond Fund (U.S. Dollar-Hedged) | 7,222 | $ | 76 | |||||||||
PIMCO High Yield Fund | 25,331 | 230 | ||||||||||
PIMCO Long Duration Total Return Fund | 19,945 | 225 | ||||||||||
PIMCO Real Return Asset Fund | 37,466 | 303 | ||||||||||
PIMCO Real Return Fund | 6,986 | 76 | ||||||||||
PIMCO Total Return Fund | 7,309 | 77 | ||||||||||
|
| |||||||||||
Total Mutual Funds (Cost $1,180) | 1,141 | |||||||||||
|
| |||||||||||
Total Investments in Affiliates (Cost $1,180) | 1,141 | |||||||||||
Total Investments 97.4% (Cost $2,986) | $ | 2,956 | ||||||||||
Financial Derivative |
| |||||||||||
(Cost or Premiums, net $5) | 6 | |||||||||||
Other Assets and Liabilities, net 2.4% | 73 | |||||||||||
|
| |||||||||||
Net Assets 100.0% | $ | 3,035 | ||||||||||
|
|
NOTES TO SCHEDULE OF INVESTMENTS (AMOUNTS IN THOUSANDS*, EXCEPT NUMBER OF CONTRACTS AND UNITS):
* | A zero balance may reflect actual amounts rounding to less than one thousand. |
(a) | Institutional Class Shares of each Fund. |
(b) FINANCIAL DERIVATIVE INSTRUMENTS: EXCHANGE-TRADED OR CENTRALLY CLEARED
PURCHASED OPTIONS:
OPTIONS ON INDICES
Description | Strike Value | Expiration Date | # of Contracts | Cost | Market Value | |||||||||||||||
Put - CBOE S&P 500 Index | 1,550.000 | 01/15/2016 | 2 | $ | 8 | $ | 2 | |||||||||||||
Put - CBOE S&P 500 Index | 1,700.000 | 03/18/2016 | 2 | 7 | 7 | |||||||||||||||
|
|
|
| |||||||||||||||||
$ | 15 | $ | 9 | |||||||||||||||||
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| |||||||||||||||||
Total Purchased Options | $ | 15 | $ | 9 | ||||||||||||||||
|
|
|
|
WRITTEN OPTIONS:
OPTIONS ON INDICES
Description | Strike Value | Expiration Date | # of Contracts | Premiums (Received) | Market Value | |||||||||||||||
Put - CBOE S&P 500 Index | 1,450.000 | 01/15/2016 | 2 | $ | (6 | ) | $ | (1 | ) | |||||||||||
Put - CBOE S&P 500 Index | 1,550.000 | 03/18/2016 | 2 | (4 | ) | (4 | ) | |||||||||||||
|
|
|
| |||||||||||||||||
$ | (10 | ) | $ | (5 | ) | |||||||||||||||
|
|
|
| |||||||||||||||||
Total Written Options | $ | (10 | ) | $ | (5 | ) | ||||||||||||||
|
|
|
|
FINANCIAL DERIVATIVE INSTRUMENTS: EXCHANGE-TRADED OR CENTRALLY CLEARED SUMMARY
The following is a summary of the market value and variation margin of Exchange-Traded or Centrally Cleared Financial Derivative Instruments as of June 30, 2015:
Financial Derivative Assets | Financial Derivative Liabilities | |||||||||||||||||||||||||||||||||
Market Value | Variation Margin Asset | Market Value | Variation Margin Liability | |||||||||||||||||||||||||||||||
Purchased Options | Futures | Swap Agreements | Total | Written Options | Futures | Swap Agreements | Total | |||||||||||||||||||||||||||
Total Exchange-Traded or Centrally Cleared | $ | 9 | $ | 0 | $ | 0 | $ | 9 | $ | (5) | $ | 0 | $ | 0 | $ | (5) | ||||||||||||||||||
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|
36 | PIMCO EQUITY SERIES | See Accompanying Notes |
Table of Contents
June 30, 2015
(c) FINANCIAL DERIVATIVE INSTRUMENTS: OVER THE COUNTER
WRITTEN OPTIONS:
TRANSACTIONS IN WRITTEN CALL AND PUT OPTIONS FOR THE PERIOD ENDED JUNE 30, 2015:
# of Contracts | Premiums | |||||||
Balance at Beginning of Period | 0 | $ | 0 | |||||
Sales | 4 | (10 | ) | |||||
Closing Buys | 0 | 0 | ||||||
Expirations | 0 | 0 | ||||||
Exercised | 0 | 0 | ||||||
|
|
|
| |||||
Balance at End of Period | 4 | $ | (10 | ) | ||||
|
|
|
|
SWAP AGREEMENTS:
TOTAL RETURN SWAPS ON COMMODITY INDICES
Counterparty | Pay/Receive (1) | Underlying Reference | # of Units | Financing Rate | Maturity Date | Notional Amount | Unrealized Appreciation | Swap Agreements, at Value | ||||||||||||||||||||||
Asset | Liability | |||||||||||||||||||||||||||||
CBK | Receive | BCOMTR Index | 376 | 3-Month U.S. Treasury Bill rate | 08/17/2015 | $ | 76 | $ | 2 | $ | 2 | $ | 0 | |||||||||||||||||
|
|
|
|
|
| |||||||||||||||||||||||||
Total Swap Agreements | $ | 2 | $ | 2 | $ | 0 | ||||||||||||||||||||||||
|
|
|
|
|
|
(1) | Receive represents that the Fund receives payments for any positive return on the underlying reference. The Fund makes payments for any negative return on such underlying reference. Pay represents that the Fund receives payments for any negative return on the underlying reference. The Fund makes payments for any positive return on such underlying reference. |
FINANCIAL DERIVATIVE INSTRUMENTS: OVER THE COUNTER SUMMARY
The following is a summary by counterparty of the market value of OTC financial derivative instruments and collateral (received)/pledged as of June 30, 2015:
Financial Derivative Assets | Financial Derivative Liabilities | |||||||||||||||||||||||||||||||||||||||||||||
Counterparty | Forward Foreign Currency Contracts | Purchased Options | Swap Agreements | Total Over the Counter | Forward Foreign Currency Contracts | Written Options | Swap Agreements | Total Over the Counter | Net Market Value of OTC Derivatives | Collateral (Received)/ Pledged | Net Exposure (2) | |||||||||||||||||||||||||||||||||||
CBK | $ | 0 | $ | 0 | $ | 2 | $ | 2 | $ | 0 | $ | 0 | $ | 0 | $ | 0 | $ | 2 | $ | 0 | $ | 2 | ||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(2) | Net Exposure represents the net receivable/(payable) that would be due from/to the counterparty in the event of default. Exposure from OTC financial derivative instruments can only be netted across transactions governed under the same master agreement with the same legal entity. See Note 6, Principal Risks, in the Notes to Financial Statements for more information regarding master netting arrangements. |
FAIR VALUE OF FINANCIAL DERIVATIVE INSTRUMENTS
The following is a summary of the fair valuation of the Fund’s derivative instruments categorized by risk exposure. See Note 6, Principal Risks, in the Notes to Financial Statements on risks of the Fund.
Fair Values of Financial Derivative Instruments on the Statements of Assets and Liabilities as of June 30, 2015:
Derivatives not accounted for as hedging instruments | ||||||||||||||||||||||||
Commodity Contracts | Credit Contracts | Equity Contracts | Foreign Exchange Contracts | Interest Rate Contracts | Total | |||||||||||||||||||
Financial Derivative Instruments - Assets | ||||||||||||||||||||||||
Exchange-traded or centrally cleared | ||||||||||||||||||||||||
Purchased Options | $ | 0 | $ | 0 | $ | 9 | $ | 0 | $ | 0 | $ | 9 | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Over the counter | ||||||||||||||||||||||||
Swap Agreements | $ | 2 | $ | 0 | $ | 0 | $ | 0 | $ | 0 | $ | 2 | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
$ | 2 | $ | 0 | $ | 9 | $ | 0 | $ | 0 | $ | 11 | |||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Financial Derivative Instruments - Liabilities | ||||||||||||||||||||||||
Exchange-traded or centrally cleared | ||||||||||||||||||||||||
Written Options | $ | 0 | $ | 0 | $ | 5 | $ | 0 | $ | 0 | $ | 5 | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
See Accompanying Notes | ANNUAL REPORT | JUNE 30, 2015 | 37 |
Table of Contents
Schedule of Investments PIMCO RealPath™ Blend 2030 Fund (Cont.)
June 30, 2015
The Effect of Financial Derivative Instruments on the Statements of Operations for the period ended June 30, 2015:
Derivatives not accounted for as hedging instruments | ||||||||||||||||||||||||
Commodity Contracts | Credit Contracts | Equity Contracts | Foreign Exchange Contracts | Interest Rate Contracts | Total | |||||||||||||||||||
Net Realized (Loss) on Financial Derivative Instruments | ||||||||||||||||||||||||
Over the counter | ||||||||||||||||||||||||
Swap Agreements | $ | (3 | ) | $ | 0 | $ | 0 | $ | 0 | $ | 0 | $ | (3 | ) | ||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Net Change in Unrealized Appreciation (Depreciation) on Financial Derivative Instruments |
| |||||||||||||||||||||||
Exchange-traded or centrally cleared | ||||||||||||||||||||||||
Purchased Options | $ | 0 | $ | 0 | $ | (6 | ) | $ | 0 | $ | 0 | $ | (6 | ) | ||||||||||
Written Options | 0 | 0 | 5 | 0 | 0 | 5 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
$ | 0 | $ | 0 | $ | (1 | ) | $ | 0 | $ | 0 | $ | (1 | ) | |||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Over the counter | ||||||||||||||||||||||||
Swap Agreements | $ | 2 | $ | 0 | $ | 0 | $ | 0 | $ | 0 | $ | 2 | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
$ | 2 | $ | 0 | $ | (1 | ) | $ | 0 | $ | 0 | $ | 1 | ||||||||||||
|
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|
|
|
|
|
|
|
|
|
FAIR VALUE MEASUREMENTS
The following is a summary of the fair valuations according to the inputs used as of June 30, 2015 in valuing the Fund’s assets and liabilities:
Category and Subcategory | Level 1 | Level 2 | Level 3 | Fair Value at 06/30/2015 | ||||||||||||
Investments in Securities, at Value | ||||||||||||||||
Mutual Funds | $ | 1,815 | $ | 0 | $ | 0 | $ | 1,815 | ||||||||
$ | 1,815 | $ | 0 | $ | 0 | $ | 1,815 | |||||||||
Investments in Affiliates, at Value | ||||||||||||||||
Mutual Funds | 1,141 | 0 | 0 | 1,141 | ||||||||||||
Total Investments | $ | 2,956 | $ | 0 | $ | 0 | $ | 2,956 |
Category and Subcategory | Level 1 | Level 2 | Level 3 | Fair Value at 06/30/2015 | ||||||||||||
Financial Derivative Instruments - Assets | ||||||||||||||||
Exchange-traded or centrally cleared | $ | 0 | $ | 9 | $ | 0 | $ | 9 | ||||||||
Over the counter | 0 | 2 | 0 | 2 | ||||||||||||
$ | 0 | $ | 11 | $ | 0 | $ | 11 | |||||||||
Financial Derivative Instruments - Liabilities | ||||||||||||||||
Exchange-traded or centrally cleared | $ | 0 | $ | (5 | ) | $ | 0 | $ | (5 | ) | ||||||
Totals | $ | 2,956 | $ | 6 | $ | 0 | $ | 2,962 |
There were no significant transfers between Levels 1, 2, or 3 during the period ended June 30, 2015.
38 | PIMCO EQUITY SERIES | See Accompanying Notes |
Table of Contents
Schedule of Investments PIMCO RealPath™ Blend 2035 Fund
June 30, 2015
SHARES | MARKET VALUE (000S) | |||||||||||
INVESTMENTS IN SECURITIES 69.9% | ||||||||||||
MUTUAL FUNDS 69.9% | ||||||||||||
Vanguard 500 Index Fund ‘Admiral’ | 3,629 | $ | 691 | |||||||||
Vanguard Developed Markets Index Fund ‘Admiral’ | 35,769 | 456 | ||||||||||
Vanguard Emerging Markets Stock Index Fund ‘Admiral’ | 13,419 | 458 | ||||||||||
Vanguard REIT Index Fund ‘Admiral’ | 2,828 | 300 | ||||||||||
Vanguard Small-Cap Index Fund ‘Admiral’ | 3,999 | 233 | ||||||||||
|
| |||||||||||
Total Mutual Funds (Cost $2,121) | 2,138 | |||||||||||
|
| |||||||||||
Total Investments in Securities (Cost $2,121) | 2,138 | |||||||||||
|
|
SHARES | MARKET VALUE (000S) | |||||||||||
INVESTMENTS IN AFFILIATES 27.6% | ||||||||||||
MUTUAL FUNDS 27.6% | ||||||||||||
PIMCO Emerging Local Bond Fund | 19,933 | $ | 155 | |||||||||
PIMCO High Yield Fund | 17,193 | 156 | ||||||||||
PIMCO Long Duration Total Return Fund | 20,125 | 228 | ||||||||||
PIMCO Real Return Asset Fund | 37,805 | 305 | ||||||||||
|
| |||||||||||
Total Mutual Funds (Cost $880) | 844 | |||||||||||
|
| |||||||||||
Total Investments in Affiliates (Cost $880) | 844 | |||||||||||
Total Investments 97.5% (Cost $3,001) | $ | 2,982 | ||||||||||
Financial Derivative | ||||||||||||
(Cost or Premiums, net $5) | 6 | |||||||||||
Other Assets and Liabilities, net 2.3% | 71 | |||||||||||
|
| |||||||||||
Net Assets 100.0% | $ | 3,059 | ||||||||||
|
|
NOTES TO SCHEDULE OF INVESTMENTS (AMOUNTS IN THOUSANDS*, EXCEPT NUMBER OF CONTRACTS AND UNITS):
* | A zero balance may reflect actual amounts rounding to less than one thousand. |
(a) FINANCIAL DERIVATIVE INSTRUMENTS: EXCHANGE-TRADED OR CENTRALLY CLEARED
PURCHASED OPTIONS:
OPTIONS ON INDICES
Description | Strike Value | Expiration Date | # of Contracts | Cost | Market Value | |||||||||||||||
Put - CBOE S&P 500 Index | 1,550.000 | 01/15/2016 | 2 | $ | 8 | $ | 2 | |||||||||||||
Put - CBOE S&P 500 Index | 1,700.000 | 03/18/2016 | 2 | 7 | 7 | |||||||||||||||
|
|
|
| |||||||||||||||||
$ | 15 | $ | 9 | |||||||||||||||||
|
|
|
| |||||||||||||||||
Total Purchased Options | $ | 15 | $ | 9 | ||||||||||||||||
|
|
|
|
WRITTEN OPTIONS:
OPTIONS ON INDICES
Description | Strike Value | Expiration Date | # of Contracts | Premiums (Received) | Market Value | |||||||||||||||
Put - CBOE S&P 500 Index | 1,450.000 | 01/15/2016 | 2 | $ | (6 | ) | $ | (1 | ) | |||||||||||
Put - CBOE S&P 500 Index | 1,550.000 | 03/18/2016 | 2 | (4 | ) | (4 | ) | |||||||||||||
|
|
|
| |||||||||||||||||
$ | (10 | ) | $ | (5 | ) | |||||||||||||||
|
|
|
| |||||||||||||||||
Total Written Options | $ | (10 | ) | $ | (5 | ) | ||||||||||||||
|
|
|
|
FINANCIAL DERIVATIVE INSTRUMENTS: EXCHANGE-TRADED OR CENTRALLY CLEARED SUMMARY
The following is a summary of the market value and variation margin of Exchange-Traded or Centrally Cleared Financial Derivative Instruments as of June 30, 2015:
Financial Derivative Assets | Financial Derivative Liabilities | |||||||||||||||||||||||||||||||||
Market Value | Variation Margin Asset | Market Value | Variation Margin Liability | |||||||||||||||||||||||||||||||
Purchased Options | Futures | Swap Agreements | Total | Written Options | Futures | Swap Agreements | Total | |||||||||||||||||||||||||||
Total Exchange-Traded or Centrally Cleared | $ | 9 | $ | 0 | $ | 0 | $ | 9 | $ | (5) | $ | 0 | $ | 0 | $ | (5) | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
See Accompanying Notes | ANNUAL REPORT | JUNE 30, 2015 | 39 |
Table of Contents
Schedule of Investments PIMCO RealPath™ Blend 2035 Fund (Cont.)
(b) FINANCIAL DERIVATIVE INSTRUMENTS: OVER THE COUNTER
WRITTEN OPTIONS:
TRANSACTIONS IN WRITTEN CALL AND PUT OPTIONS FOR THE PERIOD ENDED JUNE 30, 2015:
# of Contracts | Premiums | |||||||
Balance at Beginning of Period | 0 | $ | 0 | |||||
Sales | 4 | (10 | ) | |||||
Closing Buys | 0 | 0 | ||||||
Expirations | 0 | 0 | ||||||
Exercised | 0 | 0 | ||||||
|
|
|
| |||||
Balance at End of Period | 4 | $ | (10 | ) | ||||
|
|
|
|
SWAP AGREEMENTS:
TOTAL RETURN SWAPS ON COMMODITY INDICES
Counterparty | Pay/Receive (1) | Underlying Reference | # of Units | Financing Rate | Maturity Date | Notional Amount | Unrealized Appreciation | Swap Agreements, at Value | ||||||||||||||||||||||
Asset | Liability | |||||||||||||||||||||||||||||
CBK | Receive | BCOMTR Index | 375 | 3-Month U.S. Treasury Bill rate | 08/17/2015 | $ | 76 | $ | 2 | $ | 2 | $ | 0 | |||||||||||||||||
|
|
|
|
|
| |||||||||||||||||||||||||
Total Swap Agreements | $ | 2 | $ | 2 | $ | 0 | ||||||||||||||||||||||||
|
|
|
|
|
|
(1) | Receive represents that the Fund receives payments for any positive return on the underlying reference. The Fund makes payments for any negative return on such underlying reference. Pay represents that the Fund receives payments for any negative return on the underlying reference. The Fund makes payments for any positive return on such underlying reference. |
FINANCIAL DERIVATIVE INSTRUMENTS: OVER THE COUNTER SUMMARY
The following is a summary by counterparty of the market value of OTC financial derivative instruments and collateral (received)/pledged as of June 30, 2015:
Financial Derivative Assets | Financial Derivative Liabilities | |||||||||||||||||||||||||||||||||||||||||||||
Counterparty | Forward Foreign Currency Contracts | Purchased Options | Swap Agreements | Total Over the Counter | Forward Foreign Currency Contracts | Written Options | Swap Agreements | Total Over the Counter | Net Market Value of OTC Derivatives | Collateral (Received)/ Pledged | Net Exposure (2) | |||||||||||||||||||||||||||||||||||
CBK | $ | 0 | $ | 0 | $ | 2 | $ | 2 | $ | 0 | $ | 0 | $ | 0 | $ | 0 | $ | 2 | $ | 0 | $ | 2 | ||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(2) | Net Exposure represents the net receivable/(payable) that would be due from/to the counterparty in the event of default. Exposure from OTC financial derivative instruments can only be netted across transactions governed under the same master agreement with the same legal entity. See Note 6, Principal Risks, in the Notes to Financial Statements for more information regarding master netting arrangements. |
FAIR VALUE OF FINANCIAL DERIVATIVE INSTRUMENTS
The following is a summary of the fair valuation of the Fund’s derivative instruments categorized by risk exposure. See Note 6, Principal Risks, in the Notes to Financial Statements on risks of the Fund.
Fair Values of Financial Derivative Instruments on the Statements of Assets and Liabilities as of June 30, 2015:
Derivatives not accounted for as hedging instruments | ||||||||||||||||||||||||
Commodity Contracts | Credit Contracts | Equity Contracts | Foreign Exchange Contracts | Interest Rate Contracts | Total | |||||||||||||||||||
Financial Derivative Instruments - Assets | ||||||||||||||||||||||||
Exchange-traded or centrally cleared | ||||||||||||||||||||||||
Purchased Options | $ | 0 | $ | 0 | $ | 9 | $ | 0 | $ | 0 | $ | 9 | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Over the counter | ||||||||||||||||||||||||
Swap Agreements | $ | 2 | $ | 0 | $ | 0 | $ | 0 | $ | 0 | $ | 2 | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
$ | 2 | $ | 0 | $ | 9 | $ | 0 | $ | 0 | $ | 11 | |||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Financial Derivative Instruments - Liabilities | ||||||||||||||||||||||||
Exchange-traded or centrally cleared | ||||||||||||||||||||||||
Written Options | $ | 0 | $ | 0 | $ | 5 | $ | 0 | $ | 0 | $ | 5 | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
40 | PIMCO EQUITY SERIES | See Accompanying Notes |
Table of Contents
June 30, 2015
The Effect of Financial Derivative Instruments on the Statements of Operations for the period ended June 30, 2015:
Derivatives not accounted for as hedging instruments | ||||||||||||||||||||||||
Commodity Contracts | Credit Contracts | Equity Contracts | Foreign Exchange Contracts | Interest Rate Contracts | Total | |||||||||||||||||||
Net Realized (Loss) on Financial Derivative Instruments | ||||||||||||||||||||||||
Over the counter | ||||||||||||||||||||||||
Swap Agreements | $ | (3 | ) | $ | 0 | $ | 0 | $ | 0 | $ | 0 | $ | (3 | ) | ||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Net Change in Unrealized Appreciation (Depreciation) on Financial Derivative Instruments |
| |||||||||||||||||||||||
Exchange-traded or centrally cleared | ||||||||||||||||||||||||
Purchased Options | $ | 0 | $ | 0 | $ | (6 | ) | $ | 0 | $ | 0 | $ | (6 | ) | ||||||||||
Written Options | 0 | 0 | 5 | 0 | 0 | 5 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
$ | 0 | $ | 0 | $ | (1 | ) | $ | 0 | $ | 0 | $ | (1 | ) | |||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Over the counter | ||||||||||||||||||||||||
Swap Agreements | $ | 2 | $ | 0 | $ | 0 | $ | 0 | $ | 0 | $ | 2 | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
$ | 2 | $ | 0 | $ | (1 | ) | $ | 0 | $ | 0 | $ | 1 | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
FAIR VALUE MEASUREMENTS
The following is a summary of the fair valuations according to the inputs used as of June 30, 2015 in valuing the Fund’s assets and liabilities:
Category and Subcategory | Level 1 | Level 2 | Level 3 | Fair Value at | ||||||||||||
Investments in Securities, at Value | ||||||||||||||||
Mutual Funds | $ | 2,138 | $ | 0 | $ | 0 | $ | 2,138 | ||||||||
$ | 2,138 | $ | 0 | $ | 0 | $ | 2,138 | |||||||||
Investments in Affiliates, at Value | ||||||||||||||||
Mutual Funds | 844 | 0 | 0 | 844 | ||||||||||||
Total Investments | $ | 2,982 | $ | 0 | $ | 0 | $ | 2,982 |
Category and Subcategory | Level 1 | Level 2 | Level 3 | Fair Value at | ||||||||||||
Financial Derivative Instruments - Assets | ||||||||||||||||
Exchange-traded or centrally cleared | $ | 0 | $ | 9 | $ | 0 | $ | 9 | ||||||||
Over the counter | 0 | 2 | 0 | 2 | ||||||||||||
$ | 0 | $ | 11 | $ | 0 | $ | 11 | |||||||||
Financial Derivative Instruments - Liabilities |
| |||||||||||||||
Exchange-traded or centrally cleared | $ | 0 | $ | (5 | ) | $ | 0 | $ | (5 | ) | ||||||
Totals | $ | 2,982 | $ | 6 | $ | 0 | $ | 2,988 |
There were no significant transfers between Levels 1, 2, or 3 during the period ended June 30, 2015.
See Accompanying Notes | ANNUAL REPORT | JUNE 30, 2015 | 41 |
Table of Contents
Schedule of Investments PIMCO RealPath™ Blend 2040 Fund
SHARES | MARKET VALUE (000S) | |||||||||||
INVESTMENTS IN SECURITIES 74.9% | ||||||||||||
MUTUAL FUNDS 74.9% | ||||||||||||
Vanguard 500 Index Fund ‘Admiral’ | 4,030 | $ | 767 | |||||||||
Vanguard Developed Markets Index Fund ‘Admiral’ | 35,758 | 457 | ||||||||||
Vanguard Emerging Markets Stock Index Fund ‘Admiral’ | 13,415 | 458 | ||||||||||
Vanguard REIT Index Fund ‘Admiral’ | 2,823 | 299 | ||||||||||
Vanguard Small-Cap Index Fund ‘Admiral’ | 5,330 | 310 | ||||||||||
|
| |||||||||||
Total Mutual Funds (Cost $2,270) | 2,291 | |||||||||||
|
| |||||||||||
Total Investments in Securities (Cost $2,270) | 2,291 | |||||||||||
|
| |||||||||||
INVESTMENTS IN AFFILIATES 22.6% | ||||||||||||
MUTUAL FUNDS (a) 22.6% | ||||||||||||
PIMCO Emerging Local Bond Fund | 9,948 | 77 |
SHARES | MARKET VALUE (000S) | |||||||||||
PIMCO High Yield Fund | 17,160 | $ | 156 | |||||||||
PIMCO Long Duration Total Return Fund | 20,119 | 228 | ||||||||||
PIMCO Real Return Asset Fund | 28,346 | 229 | ||||||||||
|
| |||||||||||
Total Mutual Funds (Cost $718) | 690 | |||||||||||
|
| |||||||||||
Total Investments in Affiliates (Cost $718) | 690 | |||||||||||
Total Investments 97.5% (Cost $2,988) | $ | 2,981 | ||||||||||
Financial Derivative | ||||||||||||
(Cost or Premiums, net $5) | 5 | |||||||||||
Other Assets and Liabilities, net 2.3% | 73 | |||||||||||
|
| |||||||||||
Net Assets 100.0% | $ | 3,059 | ||||||||||
|
|
NOTES TO SCHEDULE OF INVESTMENTS (AMOUNTS IN THOUSANDS*, EXCEPT NUMBER OF CONTRACTS AND UNITS):
* | A zero balance may reflect actual amounts rounding to less than one thousand. |
(a) | Institutional Class Shares of each Fund. |
(b) FINANCIAL DERIVATIVE INSTRUMENTS: EXCHANGE-TRADED OR CENTRALLY CLEARED
PURCHASED OPTIONS:
OPTIONS ON INDICES
Description | Strike Value | Expiration Date | # of Contracts | Cost | Market Value | |||||||||||||||
Put - CBOE S&P 500 Index | 1,500.000 | 01/15/2016 | 2 | $ | 7 | $ | 2 | |||||||||||||
Put - CBOE S&P 500 Index | 1,650.000 | 03/18/2016 | 3 | 9 | 8 | |||||||||||||||
|
|
|
| |||||||||||||||||
$ | 16 | $ | 10 | |||||||||||||||||
|
|
|
| |||||||||||||||||
Total Purchased Options | $ | 16 | $ | 10 | ||||||||||||||||
|
|
|
|
WRITTEN OPTIONS:
OPTIONS ON INDICES
Description | Strike Value | Expiration Date | # of Contracts | Premiums (Received) | Market Value | |||||||||||||||
Put - CBOE S&P 500 Index | 1,400.000 | 01/15/2016 | 2 | $ | (5) | $ | (1) | |||||||||||||
Put - CBOE S&P 500 Index | 1,550.000 | 03/18/2016 | 3 | (6) | (6) | |||||||||||||||
|
|
|
| |||||||||||||||||
$ | (11) | $ | (7) | |||||||||||||||||
|
|
|
| |||||||||||||||||
Total Written Options | $ | (11) | $ | (7) | ||||||||||||||||
|
|
|
|
FINANCIAL DERIVATIVE INSTRUMENTS: EXCHANGE-TRADED OR CENTRALLY CLEARED SUMMARY
The following is a summary of the market value and variation margin of Exchange-Traded or Centrally Cleared Financial Derivative Instruments as of June 30, 2015:
Financial Derivative Assets | Financial Derivative Liabilities | |||||||||||||||||||||||||||||||||
Market Value | Variation Margin Asset | Market Value | Variation Margin Liability | Total | ||||||||||||||||||||||||||||||
Purchased Options | Futures | Swap Agreements | Total | Written Options | Futures | Swap Agreements | ||||||||||||||||||||||||||||
Total Exchange-Traded or Centrally Cleared | $ | 10 | $ | 0 | $ | 0 | $ | 10 | $ | (7) | $ | 0 | $ | 0 | $ | (7) | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
42 | PIMCO EQUITY SERIES | See Accompanying Notes |
Table of Contents
June 30, 2015
(c) FINANCIAL DERIVATIVE INSTRUMENTS: OVER THE COUNTER
WRITTEN OPTIONS:
TRANSACTIONS IN WRITTEN CALL AND PUT OPTIONS FOR THE PERIOD ENDED JUNE 30, 2015:
# of Contracts | Premiums | |||||||
Balance at Beginning of Period | 0 | $ | 0 | |||||
Sales | 5 | (11 | ) | |||||
Closing Buys | 0 | 0 | ||||||
Expirations | 0 | 0 | ||||||
Exercised | 0 | 0 | ||||||
|
|
|
| |||||
Balance at End of Period | 5 | $ | (11 | ) | ||||
|
|
|
|
SWAP AGREEMENTS:
TOTAL RETURN SWAPS ON COMMODITY INDICES
Counterparty | Pay/Receive (1) | Underlying Reference | # of Units | Financing Rate | Maturity Date | Notional Amount | Unrealized Appreciation | Swap Agreements, at Value | ||||||||||||||||||||||
Asset | Liability | |||||||||||||||||||||||||||||
CBK | Receive | BCOMTR Index | 374 | 3-Month U.S. Treasury Bill rate | 08/17/2015 | $ | 76 | $ | 2 | $ | 2 | $ | 0 | |||||||||||||||||
|
|
|
|
|
| |||||||||||||||||||||||||
Total Swap Agreements | $ | 2 | $ | 2 | $ | 0 | ||||||||||||||||||||||||
|
|
|
|
|
|
(1) | Receive represents that the Fund receives payments for any positive return on the underlying reference. The Fund makes payments for any negative return on such underlying reference. Pay represents that the Fund receives payments for any negative return on the underlying reference. The Fund makes payments for any positive return on such underlying reference. |
FINANCIAL DERIVATIVE INSTRUMENTS: OVER THE COUNTER SUMMARY
The following is a summary by counterparty of the market value of OTC financial derivative instruments and collateral (received)/pledged as of June 30, 2015:
Financial Derivative Assets | Financial Derivative Liabilities | |||||||||||||||||||||||||||||||||||||||||||||
Counterparty | Forward Foreign Currency Contracts | Purchased Options | Swap Agreements | Total Over the Counter | Forward Foreign Currency Contracts | Written Options | Swap Agreements | Total Over the Counter | Net Market Value of OTC Derivatives | Collateral (Received)/ Pledged | Net Exposure (2) | |||||||||||||||||||||||||||||||||||
CBK | $ | 0 | $ | 0 | $ | 2 | $ | 2 | $ | 0 | $ | 0 | $ | 0 | $ | 0 | $ | 2 | $ | 0 | $ | 2 | ||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(2) | Net Exposure represents the net receivable/(payable) that would be due from/to the counterparty in the event of default. Exposure from OTC financial derivative instruments can only be netted across transactions governed under the same master agreement with the same legal entity. See Note 6, Principal Risks, in the Notes to Financial Statements for more information regarding master netting arrangements. |
FAIR VALUE OF FINANCIAL DERIVATIVE INSTRUMENTS
The following is a summary of the fair valuation of the Fund’s derivative instruments categorized by risk exposure. See Note 6, Principal Risks, in the Notes to Financial Statements on risks of the Fund.
Fair Values of Financial Derivative Instruments on the Statements of Assets and Liabilities as of June 30, 2015:
Derivatives not accounted for as hedging instruments | ||||||||||||||||||||||||
Commodity Contracts | Credit Contracts | Equity Contracts | Foreign Exchange Contracts | Interest Rate Contracts | Total | |||||||||||||||||||
Financial Derivative Instruments - Assets | ||||||||||||||||||||||||
Exchange-traded or centrally cleared | ||||||||||||||||||||||||
Purchased Options | $ | 0 | $ | 0 | $ | 10 | $ | 0 | $ | 0 | $ | 10 | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Over the counter | ||||||||||||||||||||||||
Swap Agreements | $ | 2 | $ | 0 | $ | 0 | $ | 0 | $ | 0 | $ | 2 | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
$ | 2 | $ | 0 | $ | 10 | $ | 0 | $ | 0 | $ | 12 | |||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Financial Derivative Instruments - Liabilities | ||||||||||||||||||||||||
Exchange-traded or centrally cleared | ||||||||||||||||||||||||
Written Options | $ | 0 | $ | 0 | $ | 7 | $ | 0 | $ | 0 | $ | 7 | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
See Accompanying Notes | ANNUAL REPORT | JUNE 30, 2015 | 43 |
Table of Contents
Schedule of Investments PIMCO RealPath™ Blend 2040 Fund (Cont.)
June 30, 2015
The Effect of Financial Derivative Instruments on the Statements of Operations for the period ended June 30, 2015:
Derivatives not accounted for as hedging instruments | ||||||||||||||||||||||||
Commodity Contracts | Credit Contracts | Equity Contracts | Foreign Exchange Contracts | Interest Rate Contracts | Total | |||||||||||||||||||
Net Realized (Loss) on Financial Derivative Instruments | ||||||||||||||||||||||||
Over the counter | ||||||||||||||||||||||||
Swap Agreements | $ | (3 | ) | $ | 0 | $ | 0 | $ | 0 | $ | 0 | $ | (3 | ) | ||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Net Change in Unrealized Appreciation (Depreciation) on Financial Derivative Instruments |
| |||||||||||||||||||||||
Exchange-traded or centrally cleared | ||||||||||||||||||||||||
Purchased Options | $ | 0 | $ | 0 | $ | (6 | ) | $ | 0 | $ | 0 | $ | (6 | ) | ||||||||||
Written Options | 0 | 0 | 5 | 0 | 0 | 5 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
$ | 0 | $ | 0 | $ | (1 | ) | $ | 0 | $ | 0 | $ | (1 | ) | |||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Over the counter | ||||||||||||||||||||||||
Swap Agreements | $ | 2 | $ | 0 | $ | 0 | $ | 0 | $ | 0 | $ | 2 | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
$ | 2 | $ | 0 | $ | (1 | ) | $ | 0 | $ | 0 | $ | 1 | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
FAIR VALUE MEASUREMENTS
The following is a summary of the fair valuations according to the inputs used as of June 30, 2015 in valuing the Fund’s assets and liabilities:
Category and Subcategory | Level 1 | Level 2 | Level 3 | Fair Value at 06/30/2015 | ||||||||||||
Investments in Securities, at Value | ||||||||||||||||
Mutual Funds | $ | 2,291 | $ | 0 | $ | 0 | $ | 2,291 | ||||||||
$ | 2,291 | $ | 0 | $ | 0 | $ | 2,291 | |||||||||
Investments in Affiliates, at Value | ||||||||||||||||
Mutual Funds | 690 | 0 | 0 | 690 | ||||||||||||
Total Investments | $ | 2,981 | $ | 0 | $ | 0 | $ | 2,981 |
Category and Subcategory | Level 1 | Level 2 | Level 3 | Fair Value at 06/30/2015 | ||||||||||||
Financial Derivative Instruments - Assets | ||||||||||||||||
Exchange-traded or centrally cleared | $ | 0 | $ | 10 | $ | 0 | $ | 10 | ||||||||
Over the counter | 0 | 2 | 0 | 2 | ||||||||||||
$ | 0 | $ | 12 | $ | 0 | $ | 12 | |||||||||
Financial Derivative Instruments - Liabilities |
| |||||||||||||||
Exchange-traded or centrally cleared | $ | 0 | $ | (7 | ) | $ | 0 | $ | (7 | ) | ||||||
Totals | $ | 2,981 | $ | 5 | $ | 0 | $ | 2,986 |
There were no significant transfers between Levels 1, 2, or 3 during the period ended June 30, 2015.
44 | PIMCO EQUITY SERIES | See Accompanying Notes |
Table of Contents
Schedule of Investments PIMCO RealPath™ Blend 2045 Fund
June 30, 2015
SHARES | MARKET VALUE (000S) | |||||||||||
INVESTMENTS IN SECURITIES 79.9% | ||||||||||||
MUTUAL FUNDS (a) 79.9% | ||||||||||||
Vanguard 500 Index Fund ‘Admiral’ | 4,078 | $ | 776 | |||||||||
Vanguard Developed Markets Index Fund ‘Admiral’ | 42,211 | 539 | ||||||||||
Vanguard Emerging Markets Stock Index Fund ‘Admiral’ | 15,836 | 541 | ||||||||||
Vanguard REIT Index Fund ‘Admiral’ | 2,856 | 302 | ||||||||||
Vanguard Small-Cap Index Fund ‘Admiral’ | 5,393 | 314 | ||||||||||
|
| |||||||||||
Total Mutual Funds (Cost $2,447) | 2,472 | |||||||||||
|
| |||||||||||
Total Investments in Securities (Cost $2,447) | 2,472 | |||||||||||
|
|
SHARES | MARKET VALUE (000S) | |||||||||||
INVESTMENTS IN AFFILIATES 17.5% | ||||||||||||
MUTUAL FUNDS (a) 17.5% | ||||||||||||
PIMCO Emerging Local Bond Fund | 9,956 | $ | 78 | |||||||||
PIMCO High Yield Fund | 8,681 | 79 | ||||||||||
PIMCO Long Duration Total Return Fund | 20,357 | 230 | ||||||||||
PIMCO Real Return Asset Fund | 19,120 | 154 | ||||||||||
|
| |||||||||||
Total Mutual Funds (Cost $566) | 541 | |||||||||||
|
| |||||||||||
Total Investments in Affiliates (Cost $566) | 541 | |||||||||||
Total Investments 97.4% (Cost $3,013) | $ | 3,013 | ||||||||||
Financial Derivative | ||||||||||||
(Cost or Premiums, net $6) | 6 | |||||||||||
Other Assets and Liabilities, net 2.4% | 74 | |||||||||||
|
| |||||||||||
Net Assets 100.0% | $ | 3,093 | ||||||||||
|
|
NOTES TO SCHEDULE OF INVESTMENTS (AMOUNTS IN THOUSANDS*, EXCEPT NUMBER OF CONTRACTS AND UNITS):
* | A zero balance may reflect actual amounts rounding to less than one thousand. |
(a) | Institutional Class Shares of each Fund. |
(b) FINANCIAL DERIVATIVE INSTRUMENTS: EXCHANGE-TRADED OR CENTRALLY CLEARED
PURCHASED OPTIONS:
OPTIONS ON INDICES
Description | Strike Value | Expiration Date | # of Contracts | Cost | Market Value | |||||||||||||||
Put - CBOE S&P 500 Index | 1,500.000 | 01/15/2016 | 3 | $ | 10 | $ | 3 | |||||||||||||
Put - CBOE S&P 500 Index | 1,650.000 | 03/18/2016 | 3 | 10 | 8 | |||||||||||||||
|
|
|
| |||||||||||||||||
$ | 20 | $ | 11 | |||||||||||||||||
|
|
|
| |||||||||||||||||
Total Purchased Options | $ | 20 | $ | 11 | ||||||||||||||||
|
|
|
|
WRITTEN OPTIONS:
OPTIONS ON INDICES
Description | Strike Value | Expiration Date | # of Contracts | Premiums (Received) | Market Value | |||||||||||||||
Put - CBOE S&P 500 Index | 1,400.000 | 01/15/2016 | 3 | $ | (7) | $ | (2) | |||||||||||||
Put - CBOE S&P 500 Index | 1,550.000 | 03/18/2016 | 3 | (7) | (5) | |||||||||||||||
|
|
|
| |||||||||||||||||
$ | (14) | $ | (7) | |||||||||||||||||
|
|
|
| |||||||||||||||||
Total Written Options | $ | (14) | $ | (7) | ||||||||||||||||
|
|
|
|
FINANCIAL DERIVATIVE INSTRUMENTS: EXCHANGE-TRADED OR CENTRALLY CLEARED SUMMARY
The following is a summary of the market value and variation margin of Exchange-Traded or Centrally Cleared Financial Derivative Instruments as of June 30, 2015:
Financial Derivative Assets | Financial Derivative Liabilities | |||||||||||||||||||||||||||||||||
Market Value | Variation Margin Asset | Market Value | Variation Margin Liability | |||||||||||||||||||||||||||||||
Purchased Options | Futures | Swap Agreements | Total | Written Options | Futures | Swap Agreements | Total | |||||||||||||||||||||||||||
Total Exchange-Traded or Centrally Cleared | $ | 11 | $ | 0 | $ | 0 | $ | 11 | $ | (7) | $ | 0 | $ | 0 | $ | (7) | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
See Accompanying Notes | ANNUAL REPORT | JUNE 30, 2015 | 45 |
Table of Contents
Schedule of Investments PIMCO RealPath™ Blend 2045 Fund (Cont.)
(c) FINANCIAL DERIVATIVE INSTRUMENTS: OVER THE COUNTER
WRITTEN OPTIONS:
TRANSACTIONS IN WRITTEN CALL AND PUT OPTIONS FOR THE PERIOD ENDED JUNE 30, 2015:
# of Contracts | Premiums | |||||||
Balance at Beginning of Period | 0 | $ | 0 | |||||
Sales | 6 | (14 | ) | |||||
Closing Buys | 0 | 0 | ||||||
Expirations | 0 | 0 | ||||||
Exercised | 0 | 0 | ||||||
|
|
|
| |||||
Balance at End of Period | 6 | $ | (14 | ) | ||||
|
|
|
|
SWAP AGREEMENTS:
TOTAL RETURN SWAPS ON COMMODITY INDICES
Counterparty | Pay/Receive (1) | Underlying Reference | # of Units | Financing Rate | Maturity Date | Notional Amount | Unrealized Appreciation | Swap Agreements, at Value | ||||||||||||||||||||||
Asset | Liability | |||||||||||||||||||||||||||||
CBK | Receive | BCOMTR Index | 374 | 3-Month U.S. Treasury Bill rate | 08/17/2015 | $ | 76 | $ | 2 | $ | 2 | $ | 0 | |||||||||||||||||
|
|
|
|
|
| |||||||||||||||||||||||||
Total Swap Agreements | $ | 2 | $ | 2 | $ | 0 | ||||||||||||||||||||||||
|
|
|
|
|
|
(1) | Receive represents that the Fund receives payments for any positive return on the underlying reference. The Fund makes payments for any negative return on such underlying reference. Pay represents that the Fund receives payments for any negative return on the underlying reference. The Fund makes payments for any positive return on such underlying reference. |
FINANCIAL DERIVATIVE INSTRUMENTS: OVER THE COUNTER SUMMARY
The following is a summary by counterparty of the market value of OTC financial derivative instruments and collateral (received)/pledged as of June 30, 2015:
Financial Derivative Assets | Financial Derivative Liabilities | |||||||||||||||||||||||||||||||||||||||||||||
Counterparty | Forward Foreign Currency Contracts | Purchased Options | Swap Agreements | Total Over the Counter | Forward Foreign Currency Contracts | Written Options | Swap Agreements | Total Over the Counter | Net Market Value of OTC Derivatives | Collateral (Received)/ Pledged | Net Exposure (2) | |||||||||||||||||||||||||||||||||||
CBK | $ | 0 | $ | 0 | $ | 2 | $ | 2 | $ | 0 | $ | 0 | $ | 0 | $ | 0 | $ | 2 | $ | 0 | $ | 2 | ||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(2) | Net Exposure represents the net receivable/(payable) that would be due from/to the counterparty in the event of default. Exposure from OTC financial derivative instruments can only be netted across transactions governed under the same master agreement with the same legal entity. See Note 6, Principal Risks, in the Notes to Financial Statements for more information regarding master netting arrangements. |
FAIR VALUE OF FINANCIAL DERIVATIVE INSTRUMENTS
The following is a summary of the fair valuation of the Fund’s derivative instruments categorized by risk exposure. See Note 6, Principal Risks, in the Notes to Financial Statements on risks of the Fund.
Fair Values of Financial Derivative Instruments on the Statements of Assets and Liabilities as of June 30, 2015:
Derivatives not accounted for as hedging instruments | ||||||||||||||||||||||||
Commodity Contracts | Credit Contracts | Equity Contracts | Foreign Exchange Contracts | Interest Rate Contracts | Total | |||||||||||||||||||
Financial Derivative Instruments - Assets | ||||||||||||||||||||||||
Exchange-traded or centrally cleared | ||||||||||||||||||||||||
Purchased Options | $ | 0 | $ | 0 | $ | 11 | $ | 0 | $ | 0 | $ | 11 | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Over the counter | ||||||||||||||||||||||||
Swap Agreements | $ | 2 | $ | 0 | $ | 0 | $ | 0 | $ | 0 | $ | 2 | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
$ | 2 | $ | 0 | $ | 11 | $ | 0 | $ | 0 | $ | 13 | |||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Financial Derivative Instruments - Liabilities | ||||||||||||||||||||||||
Exchange-traded or centrally cleared | ||||||||||||||||||||||||
Written Options | $ | 0 | $ | 0 | $ | 7 | $ | 0 | $ | 0 | $ | 7 | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
46 | PIMCO EQUITY SERIES | See Accompanying Notes |
Table of Contents
June 30, 2015
The Effect of Financial Derivative Instruments on the Statements of Operations for the period ended June 30, 2015:
Derivatives not accounted for as hedging instruments | ||||||||||||||||||||||||
Commodity Contracts | Credit Contracts | Equity Contracts | Foreign Exchange Contracts | Interest Rate Contracts | Total | |||||||||||||||||||
Net Realized (Loss) on Financial Derivative Instruments | ||||||||||||||||||||||||
Over the counter | ||||||||||||||||||||||||
Swap Agreements | $ | (3 | ) | $ | 0 | $ | 0 | $ | 0 | $ | 0 | $ | (3 | ) | ||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Net Change in Unrealized Appreciation (Depreciation) on Financial Derivative Instruments |
| |||||||||||||||||||||||
Exchange-traded or centrally cleared | ||||||||||||||||||||||||
Purchased Options | $ | 0 | $ | 0 | $ | (8 | ) | $ | 0 | $ | 0 | $ | (8 | ) | ||||||||||
Written Options | 0 | 0 | 6 | 0 | 0 | 6 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
$ | 0 | $ | 0 | $ | (2 | ) | $ | 0 | $ | 0 | $ | (2 | ) | |||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Over the counter | ||||||||||||||||||||||||
Swap Agreements | $ | 2 | $ | 0 | $ | 0 | $ | 0 | $ | 0 | $ | 2 | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
$ | 2 | $ | 0 | $ | (2 | ) | $ | 0 | $ | 0 | $ | 0 | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
FAIR VALUE MEASUREMENTS
The following is a summary of the fair valuations according to the inputs used as of June 30, 2015 in valuing the Fund’s assets and liabilities:
Category and Subcategory | Level 1 | Level 2 | Level 3 | Fair Value at 06/30/2015 | ||||||||||||
Investments in Securities, at Value | ||||||||||||||||
Mutual Funds | $ | 2,472 | $ | 0 | $ | 0 | $ | 2,472 | ||||||||
$ | 2,472 | $ | 0 | $ | 0 | $ | 2,472 | |||||||||
Investments in Affiliates, at Value | ||||||||||||||||
Mutual Funds | 541 | 0 | 0 | 541 | ||||||||||||
Total Investments | $ | 3,013 | $ | 0 | $ | 0 | $ | 3,013 |
Category and Subcategory | Level 1 | Level 2 | Level 3 | Fair Value at 06/30/2015 | ||||||||||||
Financial Derivative Instruments - Assets |
| |||||||||||||||
Exchange-traded or centrally cleared | $ | 0 | $ | 11 | $ | 0 | $ | 11 | ||||||||
Over the counter | 0 | 2 | 0 | 2 | ||||||||||||
$ | 0 | $ | 13 | $ | 0 | $ | 13 | |||||||||
Financial Derivative Instruments - Liabilities |
| |||||||||||||||
Exchange-traded or centrally cleared | $ | 0 | $ | (7 | ) | $ | 0 | $ | (7 | ) | ||||||
Totals | $ | 3,013 | $ | 6 | $ | 0 | $ | 3,019 |
There were no significant transfers between Levels 1, 2, or 3 during the period ended June 30, 2015.
See Accompanying Notes | ANNUAL REPORT | JUNE 30, 2015 | 47 |
Table of Contents
Schedule of Investments PIMCO RealPath™ Blend 2050 Fund
SHARES | MARKET VALUE (000S) | |||||||||||
INVESTMENTS IN SECURITIES 82.5% | ||||||||||||
MUTUAL FUNDS (a) 82.5% | ||||||||||||
Vanguard 500 Index Fund ‘Admiral’ | 4,459 | $ | 849 | |||||||||
Vanguard Developed Markets Index Fund ‘Admiral’ | 42,032 | 536 | ||||||||||
Vanguard Emerging Markets Stock Index Fund ‘Admiral’ | 15,741 | 538 | ||||||||||
Vanguard REIT Index Fund ‘Admiral’ | 2,833 | 300 | ||||||||||
Vanguard Small-Cap Index Fund ‘Admiral’ | 5,360 | 312 | ||||||||||
|
| |||||||||||
Total Mutual Funds (Cost $2,509) | 2,535 | |||||||||||
|
| |||||||||||
Total Investments in Securities (Cost $2,509) | 2,535 | |||||||||||
|
|
SHARES | MARKET VALUE (000S) | |||||||||||
INVESTMENTS IN AFFILIATES 14.9% | ||||||||||||
MUTUAL FUNDS (a) 14.9% | ||||||||||||
PIMCO Emerging Local Bond Fund | 9,952 | $ | 77 | |||||||||
PIMCO High Yield Fund | 8,488 | 77 | ||||||||||
PIMCO Long Duration Total Return Fund | 20,235 | 229 | ||||||||||
PIMCO Real Return Asset Fund | 9,504 | 77 | ||||||||||
|
| |||||||||||
Total Mutual Funds (Cost $482) | 460 | |||||||||||
|
| |||||||||||
Total Investments in Affiliates (Cost $482) | 460 | |||||||||||
Total Investments 97.4% (Cost $2,991) | $ | 2,995 | ||||||||||
Financial Derivative | ||||||||||||
(Cost or Premiums, net $6) | 6 | |||||||||||
Other Assets and Liabilities, net 2.4% | 74 | |||||||||||
|
| |||||||||||
Net Assets 100.0% | $ | 3,075 | ||||||||||
|
|
NOTES TO SCHEDULE OF INVESTMENTS (AMOUNTS IN THOUSANDS*, EXCEPT NUMBER OF CONTRACTS AND UNITS):
* | A zero balance may reflect actual amounts rounding to less than one thousand. |
(a) | Institutional Class Shares of each Fund. |
(b) FINANCIAL DERIVATIVE INSTRUMENTS: EXCHANGE-TRADED OR CENTRALLY CLEARED
PURCHASED OPTIONS:
OPTIONS ON INDICES
Description | Strike Value | Expiration Date | # of Contracts | Cost | Market Value | |||||||||||||||
Put - CBOE S&P 500 Index | 1,550.000 | 01/15/2016 | 3 | $ | 12 | $ | 4 | |||||||||||||
Put - CBOE S&P 500 Index | 1,650.000 | 03/18/2016 | 3 | 9 | 8 | |||||||||||||||
|
|
|
| |||||||||||||||||
$ | 21 | $ | 12 | |||||||||||||||||
|
|
|
| |||||||||||||||||
Total Purchased Options | $ | 21 | $ | 12 | ||||||||||||||||
|
|
|
|
WRITTEN OPTIONS:
OPTIONS ON INDICES
Description | Strike Value | Expiration Date | # of Contracts | Premiums (Received) | Market Value | |||||||||||||||
Put - CBOE S&P 500 Index | 1,450.000 | 01/15/2016 | 3 | $ | (8) | $ | (2) | |||||||||||||
Put - CBOE S&P 500 Index | 1,550.000 | 03/18/2016 | 3 | (7) | (6) | |||||||||||||||
|
|
|
| |||||||||||||||||
$ | (15) | $ | (8) | |||||||||||||||||
|
|
|
| |||||||||||||||||
Total Written Options | $ | (15) | $ | (8) | ||||||||||||||||
|
|
|
|
FINANCIAL DERIVATIVE INSTRUMENTS: EXCHANGE-TRADED OR CENTRALLY CLEARED SUMMARY
The following is a summary of the market value and variation margin of Exchange-Traded or Centrally Cleared Financial Derivative Instruments as of June 30, 2015:
Financial Derivative Assets | Financial Derivative Liabilities | |||||||||||||||||||||||||||||||||
Market Value | Variation Margin Asset | Market Value | Variation Margin Liability | |||||||||||||||||||||||||||||||
Purchased Options | Futures | Swap Agreements | Total | Written Options | Futures | Swap Agreements | Total | |||||||||||||||||||||||||||
Total Exchange-Traded or Centrally Cleared | $ | 12 | $ | 0 | $ | 0 | $ | 12 | $ | (8) | $ | 0 | $ | 0 | $ | (8) | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
48 | PIMCO EQUITY SERIES | See Accompanying Notes |
Table of Contents
June 30, 2015
(c) FINANCIAL DERIVATIVE INSTRUMENTS: OVER THE COUNTER
WRITTEN OPTIONS:
TRANSACTIONS IN WRITTEN CALL AND PUT OPTIONS FOR THE PERIOD ENDED JUNE 30, 2015:
# of Contracts | Premiums | |||||||
Balance at Beginning of Period | 0 | $ | 0 | |||||
Sales | 6 | (15 | ) | |||||
Closing Buys | 0 | 0 | ||||||
Expirations | 0 | 0 | ||||||
Exercised | 0 | 0 | ||||||
|
|
|
| |||||
Balance at End of Period | 6 | $ | (15 | ) | ||||
|
|
|
|
SWAP AGREEMENTS:
TOTAL RETURN SWAPS ON COMMODITY INDICES
Counterparty | Pay/Receive (1) | Underlying Reference | # of Units | Financing Rate | Maturity Date | Notional Amount | Unrealized Appreciation | Swap Agreements, at Value | ||||||||||||||||||||||
Asset | Liability | |||||||||||||||||||||||||||||
CBK | Receive | BCOMTR Index | 373 | 3-Month U.S. Treasury Bill rate | 08/17/2015 | $ | 75 | $ | 2 | $ | 2 | $ | 0 | |||||||||||||||||
|
|
|
|
|
| |||||||||||||||||||||||||
Total Swap Agreements | $ | 2 | $ | 2 | $ | 0 | ||||||||||||||||||||||||
|
|
|
|
|
|
(1) | Receive represents that the Fund receives payments for any positive return on the underlying reference. The Fund makes payments for any negative return on such underlying reference. Pay represents that the Fund receives payments for any negative return on the underlying reference. The Fund makes payments for any positive return on such underlying reference. |
FINANCIAL DERIVATIVE INSTRUMENTS: OVER THE COUNTER SUMMARY
The following is a summary by counterparty of the market value of OTC financial derivative instruments and collateral (received)/pledged as of June 30, 2015:
Financial Derivative Assets | Financial Derivative Liabilities | |||||||||||||||||||||||||||||||||||||||||||||
Counterparty | Forward Foreign Currency Contracts | Purchased Options | Swap Agreements | Total Over the Counter | Forward Foreign Currency Contracts | Written Options | Swap Agreements | Total Over the Counter | Net Market Value of OTC Derivatives | Collateral (Received)/ Pledged | Net Exposure (2) | |||||||||||||||||||||||||||||||||||
CBK | $ | 0 | $ | 0 | $ | 2 | $ | 2 | $ | 0 | $ | 0 | $ | 0 | $ | 0 | $ | 2 | $ | 0 | $ | 2 | ||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(2) | Net Exposure represents the net receivable/(payable) that would be due from/to the counterparty in the event of default. Exposure from OTC financial derivative instruments can only be netted across transactions governed under the same master agreement with the same legal entity. See Note 6, Principal Risks, in the Notes to Financial Statements for more information regarding master netting arrangements. |
FAIR VALUE OF FINANCIAL DERIVATIVE INSTRUMENTS
The following is a summary of the fair valuation of the Fund’s derivative instruments categorized by risk exposure. See Note 6, Principal Risks, in the Notes to Financial Statements on risks of the Fund.
Fair Values of Financial Derivative Instruments on the Statements of Assets and Liabilities as of June 30, 2015:
Derivatives not accounted for as hedging instruments | ||||||||||||||||||||||||
Commodity Contracts | Credit Contracts | Equity Contracts | Foreign Exchange Contracts | Interest Rate Contracts | Total | |||||||||||||||||||
Financial Derivative Instruments - Assets | ||||||||||||||||||||||||
Exchange-traded or centrally cleared | ||||||||||||||||||||||||
Purchased Options | $ | 0 | $ | 0 | $ | 12 | $ | 0 | $ | 0 | $ | 12 | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Over the counter | ||||||||||||||||||||||||
Swap Agreements | $ | 2 | $ | 0 | $ | 0 | $ | 0 | $ | 0 | $ | 2 | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
$ | 2 | $ | 0 | $ | 12 | $ | 0 | $ | 0 | $ | 14 | |||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Financial Derivative Instruments - Liabilities | ||||||||||||||||||||||||
Exchange-traded or centrally cleared | ||||||||||||||||||||||||
Written Options | $ | 0 | $ | 0 | $ | 8 | $ | 0 | $ | 0 | $ | 8 | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
See Accompanying Notes | ANNUAL REPORT | JUNE 30, 2015 | 49 |
Table of Contents
Schedule of Investments PIMCO RealPath™ Blend 2050 Fund (Cont.)
June 30, 2015
The Effect of Financial Derivative Instruments on the Statements of Operations for the period ended June 30, 2015:
Derivatives not accounted for as hedging instruments | ||||||||||||||||||||||||
Commodity Contracts | Credit Contracts | Equity Contracts | Foreign Exchange Contracts | Interest Rate Contracts | Total | |||||||||||||||||||
Net Realized (Loss) on Financial Derivative Instruments | ||||||||||||||||||||||||
Over the counter | ||||||||||||||||||||||||
Swap Agreements | $ | (3 | ) | $ | 0 | $ | 0 | $ | 0 | $ | 0 | $ | (3 | ) | ||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Net Change in Unrealized Appreciation (Depreciation) on Financial Derivative Instruments |
| |||||||||||||||||||||||
Exchange-traded or centrally cleared | ||||||||||||||||||||||||
Purchased Options | $ | 0 | $ | 0 | $ | (9 | ) | $ | 0 | $ | 0 | $ | (9 | ) | ||||||||||
Written Options | 0 | 0 | 7 | 0 | 0 | 7 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
$ | 0 | $ | 0 | $ | (2 | ) | $ | 0 | $ | 0 | $ | (2 | ) | |||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Over the counter | ||||||||||||||||||||||||
Swap Agreements | $ | 2 | $ | 0 | $ | 0 | $ | 0 | $ | 0 | $ | 2 | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
$ | 2 | $ | 0 | $ | (2 | ) | $ | 0 | $ | 0 | $ | (0 | ) | |||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
FAIR VALUE MEASUREMENTS (1)
The following is a summary of the fair valuations according to the inputs used as of June 30, 2015 in valuing the Fund’s assets and liabilities:
Category and Subcategory | Level 1 | Level 2 | Level 3 | Fair Value at | ||||||||||||
Investments in Securities, at Value | ||||||||||||||||
Mutual Funds | $ | 2,535 | $ | 0 | $ | 0 | $ | 2,535 | ||||||||
$ | 2,535 | $ | 0 | $ | 0 | $ | 2,535 | |||||||||
Investments in Affiliates, at Value | ||||||||||||||||
Mutual Funds | 460 | 0 | 0 | 460 | ||||||||||||
Total Investments | $ | 2,995 | $ | 0 | $ | 0 | $ | 2,995 |
Category and Subcategory | Level 1 | Level 2 | Level 3 | Fair Value at | ||||||||||||
Financial Derivative Instruments - Assets | ||||||||||||||||
Exchange-traded or centrally cleared | $ | 0 | $ | 12 | $ | 0 | $ | 12 | ||||||||
Over the counter | 0 | 2 | 0 | 2 | ||||||||||||
$ | 0 | $ | 14 | $ | 0 | $ | 14 | |||||||||
Financial Derivative Instruments - Liabilities |
| |||||||||||||||
Exchange-traded or centrally cleared | $ | 0 | $ | (8 | ) | $ | 0 | $ | (8 | ) | ||||||
Totals | $ | 2,995 | $ | 6 | $ | 0 | $ | 3,001 |
There were no significant transfers between Levels 1, 2, or 3 during the period ended June 30, 2015.
50 | PIMCO EQUITY SERIES | See Accompanying Notes |
Table of Contents
Schedule of Investments PIMCO RealPath™ Blend 2055 Fund
June 30, 2015
SHARES | MARKET VALUE (000S) | |||||||||||
INVESTMENTS IN SECURITIES 82.3% | ||||||||||||
MUTUAL FUNDS 82.3% | ||||||||||||
Vanguard 500 Index Fund ‘Admiral’ | 4,531 | $ | 863 | |||||||||
Vanguard Developed Markets Index Fund ‘Admiral’ | 42,605 | 544 | ||||||||||
Vanguard Emerging Markets Stock Index Fund ‘Admiral’ | 15,996 | 546 | ||||||||||
Vanguard REIT Index Fund ‘Admiral’ | 2,872 | 304 | ||||||||||
Vanguard Small-Cap Index Fund ‘Admiral’ | 5,447 | 317 | ||||||||||
|
| |||||||||||
Total Mutual Funds (Cost $2,548) | 2,574 | |||||||||||
|
| |||||||||||
Total Investments in Securities (Cost $2,548) | 2,574 | |||||||||||
|
|
SHARES | MARKET VALUE (000S) | |||||||||||
INVESTMENTS IN AFFILIATES 15.0% | ||||||||||||
MUTUAL FUNDS (a) 15.0% | ||||||||||||
PIMCO Emerging Local Bond Fund | 10,076 | $ | 78 | |||||||||
PIMCO High Yield Fund | 8,729 | 79 | ||||||||||
PIMCO Long Duration Total Return Fund | 20,563 | 233 | ||||||||||
PIMCO Real Return Asset Fund | 9,658 | 78 | ||||||||||
|
| |||||||||||
Total Mutual Funds (Cost $491) | 468 | |||||||||||
|
| |||||||||||
Total Investments in Affiliates (Cost $491) | 468 | |||||||||||
Total Investments 97.3% (Cost $3,039) | $ | 3,042 | ||||||||||
Financial Derivative | ||||||||||||
(Cost or Premiums, net $6) | 6 | |||||||||||
Other Assets and Liabilities, net 2.5% | 77 | |||||||||||
|
| |||||||||||
Net Assets 100.0% | $ | 3,125 | ||||||||||
|
|
NOTES TO SCHEDULE OF INVESTMENTS (AMOUNTS IN THOUSANDS*, EXCEPT NUMBER OF CONTRACTS AND UNITS):
* | A zero balance may reflect actual amounts rounding to less than one thousand. |
(a) | Institutional Class Shares of each Fund. |
(b) FINANCIAL DERIVATIVE INSTRUMENTS: EXCHANGE-TRADED OR CENTRALLY CLEARED
PURCHASED OPTIONS:
OPTIONS ON INDICES
Description | Strike Value | Expiration Date | # of Contracts | Cost | Market Value | |||||||||||||||
Put - CBOE S&P 500 Index | 1,550.000 | 01/15/2016 | 3 | $ | 12 | $ | 4 | |||||||||||||
Put - CBOE S&P 500 Index | 1,650.000 | 03/18/2016 | 3 | 9 | 8 | |||||||||||||||
|
|
|
| |||||||||||||||||
$ | 21 | $ | 12 | |||||||||||||||||
|
|
|
| |||||||||||||||||
Total Purchased Options | $ | 21 | $ | 12 | ||||||||||||||||
|
|
|
|
WRITTEN OPTIONS:
OPTIONS ON INDICES
Description | Strike Value | Expiration Date | # of Contracts | Premiums (Received) | Market Value | |||||||||||||||
Put - CBOE S&P 500 Index | 1,450.000 | 01/15/2016 | 3 | $ | (8) | $ | (2) | |||||||||||||
Put - CBOE S&P 500 Index | 1,550.000 | 03/18/2016 | 3 | (7) | (6) | |||||||||||||||
|
|
|
| |||||||||||||||||
$ | (15) | $ | (8) | |||||||||||||||||
|
|
|
| |||||||||||||||||
Total Written Options | $ | (15) | $ | (8) | ||||||||||||||||
|
|
|
|
FINANCIAL DERIVATIVE INSTRUMENTS: EXCHANGE-TRADED OR CENTRALLY CLEARED SUMMARY
The following is a summary of the market value and variation margin of Exchange-Traded or Centrally Cleared Financial Derivative Instruments as of June 30, 2015:
Financial Derivative Assets | Financial Derivative Liabilities | |||||||||||||||||||||||||||||||||
Market Value | Variation Margin Asset | Market Value | Variation Margin Liability | |||||||||||||||||||||||||||||||
Purchased Options | Futures | Swap Agreements | Total | Written Options | Futures | Swap Agreements | Total | |||||||||||||||||||||||||||
Total Exchange-Traded or Centrally Cleared | $ | 12 | $ | 0 | $ | 0 | $ | 12 | $ | (8) | $ | 0 | $ | 0 | $ | (8) | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
See Accompanying Notes | ANNUAL REPORT | JUNE 30, 2015 | 51 |
Table of Contents
Schedule of Investments PIMCO RealPath™ Blend 2055 Fund (Cont.)
(c) FINANCIAL DERIVATIVE INSTRUMENTS: OVER THE COUNTER
WRITTEN OPTIONS:
TRANSACTIONS IN WRITTEN CALL AND PUT OPTIONS FOR THE PERIOD ENDED JUNE 30, 2015:
# of Contracts | Premiums | |||||||
Balance at Beginning of Period | 0 | $ | 0 | |||||
Sales | 6 | (15 | ) | |||||
Closing Buys | 0 | 0 | ||||||
Expirations | 0 | 0 | ||||||
Exercised | 0 | 0 | ||||||
|
|
|
| |||||
Balance at End of Period | 6 | $ | (15 | ) | ||||
|
|
|
|
SWAP AGREEMENTS:
TOTAL RETURN SWAPS ON COMMODITY INDICES
Counterparty | Pay/Receive (1) | Underlying Reference | # of Units | Financing Rate | Maturity Date | Notional Amount | Unrealized Appreciation | Swap Agreements, at Value | ||||||||||||||||||||||
Asset | Liability | |||||||||||||||||||||||||||||
CBK | Receive | BCOMTR Index | 373 | 3-Month U.S. Treasury Bill rate | 08/17/2015 | $ | 75 | $ | 2 | $ | 2 | $ | 0 | |||||||||||||||||
|
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|
|
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| |||||||||||||||||||||||||
Total Swap Agreements | $ | 2 | $ | 2 | $ | 0 | ||||||||||||||||||||||||
|
|
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|
|
(1) | Receive represents that the Fund receives payments for any positive return on the underlying reference. The Fund makes payments for any negative return on such underlying reference. Pay represents that the Fund receives payments for any negative return on the underlying reference. The Fund makes payments for any positive return on such underlying reference. |
FINANCIAL DERIVATIVE INSTRUMENTS: OVER THE COUNTER SUMMARY
The following is a summary by counterparty of the market value of OTC financial derivative instruments and collateral (received)/pledged as of June 30, 2015:
Financial Derivative Assets | Financial Derivative Liabilities | |||||||||||||||||||||||||||||||||||||||||||||
Counterparty | Forward Foreign Currency Contracts | Purchased Options | Swap Agreements | Total Over the Counter | Forward Foreign Currency Contracts | Written Options | Swap Agreements | Total Over the Counter | Net Market Value of OTC Derivatives | Collateral (Received)/ Pledged | Net Exposure (2) | |||||||||||||||||||||||||||||||||||
CBK | $ | 0 | $ | 0 | $ | 2 | $ | 2 | $ | 0 | $ | 0 | $ | 0 | $ | 0 | $ | 2 | $ | 0 | $ | 2 | ||||||||||||||||||||||||
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|
|
(2) | Net Exposure represents the net receivable/(payable) that would be due from/to the counterparty in the event of default. Exposure from OTC financial derivative instruments can only be netted across transactions governed under the same master agreement with the same legal entity. See Note 6, Principal Risks, in the Notes to Financial Statements for more information regarding master netting arrangements. |
FAIR VALUE OF FINANCIAL DERIVATIVE INSTRUMENTS
The following is a summary of the fair valuation of the Fund’s derivative instruments categorized by risk exposure. See Note 6, Principal Risks, in the Notes to Financial Statements on risks of the Fund.
Fair Values of Financial Derivative Instruments on the Statements of Assets and Liabilities as of June 30, 2015:
Derivatives not accounted for as hedging instruments | ||||||||||||||||||||||||
Commodity Contracts | Credit Contracts | Equity Contracts | Foreign Exchange Contracts | Interest Rate Contracts | Total | |||||||||||||||||||
Financial Derivative Instruments - Assets | ||||||||||||||||||||||||
Exchange-traded or centrally cleared | ||||||||||||||||||||||||
Purchased Options | $ | 0 | $ | 0 | $ | 12 | $ | 0 | $ | 0 | $ | 12 | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Over the counter | ||||||||||||||||||||||||
Swap Agreements | $ | 2 | $ | 0 | $ | 0 | $ | 0 | $ | 0 | $ | 2 | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
$ | 2 | $ | 0 | $ | 12 | $ | 0 | $ | 0 | $ | 14 | |||||||||||||
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|
|
|
|
|
|
|
|
| |||||||||||||
Financial Derivative Instruments - Liabilities | ||||||||||||||||||||||||
Exchange-traded or centrally cleared | ||||||||||||||||||||||||
Written Options | $ | 0 | $ | 0 | $ | 8 | $ | 0 | $ | 0 | $ | 8 | ||||||||||||
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|
52 | PIMCO EQUITY SERIES | See Accompanying Notes |
Table of Contents
June 30, 2015
The Effect of Financial Derivative Instruments on the Statements of Operations for the period ended June 30, 2015:
Derivatives not accounted for as hedging instruments | ||||||||||||||||||||||||
Commodity Contracts | Credit Contracts | Equity Contracts | Foreign Exchange Contracts | Interest Rate Contracts | Total | |||||||||||||||||||
Net Realized (Loss) on Financial Derivative Instruments | ||||||||||||||||||||||||
Over the counter | ||||||||||||||||||||||||
Swap Agreements | $ | (3 | ) | $ | 0 | $ | 0 | $ | 0 | $ | 0 | $ | (3 | ) | ||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Net Change in Unrealized Appreciation (Depreciation) on Financial Derivative Instruments |
| |||||||||||||||||||||||
Exchange-traded or centrally cleared | ||||||||||||||||||||||||
Purchased Options | $ | 0 | $ | 0 | $ | (9 | ) | $ | 0 | $ | 0 | $ | (9 | ) | ||||||||||
Written Options | 0 | 0 | 7 | 0 | 0 | 7 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
$ | 0 | $ | 0 | $ | (2 | ) | $ | 0 | $ | 0 | $ | (2 | ) | |||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Over the counter | ||||||||||||||||||||||||
Swap Agreements | $ | 2 | $ | 0 | $ | 0 | $ | 0 | $ | 0 | $ | 2 | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
$ | 2 | $ | 0 | $ | (2 | ) | $ | 0 | $ | 0 | $ | 0 | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
FAIR VALUE MEASUREMENTS (1)
The following is a summary of the fair valuations according to the inputs used as of June 30, 2015 in valuing the Fund’s assets and liabilities:
Category and Subcategory | Level 1 | Level 2 | Level 3 | Fair Value at 06/30/2015 | ||||||||||||
Investments in Securities, at Value | ||||||||||||||||
Mutual Funds | $ | 2,574 | $ | 0 | $ | 0 | $ | 2,574 | ||||||||
$ | 2,574 | $ | 0 | $ | 0 | $ | 2,574 | |||||||||
Investments in Affiliates, at Value | ||||||||||||||||
Mutual Funds | 468 | 0 | 0 | 468 | ||||||||||||
Total Investments | $ | 3,042 | $ | 0 | $ | 0 | $ | 3,042 |
Category and Subcategory | Level 1 | Level 2 | Level 3 | Fair Value at 06/30/2015 | ||||||||||||
Financial Derivative Instruments - Assets |
| |||||||||||||||
Exchange-traded or centrally cleared | $ | 0 | $ | 12 | $ | 0 | $ | 12 | ||||||||
Over the counter | 0 | 2 | 0 | 2 | ||||||||||||
$ | 0 | $ | 14 | $ | 0 | $ | 14 | |||||||||
Financial Derivative Instruments - Liabilities |
| |||||||||||||||
Exchange-traded or centrally cleared | $ | 0 | $ | (8 | ) | $ | 0 | $ | (8 | ) | ||||||
Totals | $ | 3,042 | $ | 6 | $ | 0 | $ | 3,048 |
There were no significant transfers between Levels 1, 2, or 3 during the period ended June 30, 2015.
See Accompanying Notes | ANNUAL REPORT | JUNE 30, 2015 | 53 |
Table of Contents
Schedule of Investments PIMCO RealPath™ Blend Income Fund
SHARES | MARKET VALUE (000S) | |||||||||||
INVESTMENTS IN SECURITIES 31.8% | ||||||||||||
MUTUAL FUNDS 31.8% | ||||||||||||
Vanguard 500 Index Fund ‘Admiral’ | 2,018 | $ | 384 | |||||||||
Vanguard Developed Markets Index Fund ‘Admiral’ | 17,929 | 229 | ||||||||||
Vanguard Emerging Markets Stock Index Fund ‘Admiral’ | 4,479 | 153 | ||||||||||
Vanguard REIT Index Fund ‘Admiral’ | 1,410 | 149 | ||||||||||
Vanguard Small-Cap Index Fund ‘Admiral’ | 1,335 | 78 | ||||||||||
|
| |||||||||||
Total Mutual Funds (Cost $987) | 993 | |||||||||||
|
| |||||||||||
Total Investments in Securities (Cost $987) | 993 | |||||||||||
|
|
SHARES | MARKET VALUE (000S) | |||||||||||
INVESTMENTS IN AFFILIATES 62.5% | ||||||||||||
MUTUAL FUNDS (a) 59.3% | ||||||||||||
PIMCO Emerging Local Bond Fund | 9,797 | $ | 76 | |||||||||
PIMCO Foreign Bond Fund (U.S. Dollar-Hedged) | 29,332 | 309 | ||||||||||
PIMCO High Yield Fund | 8,488 | 77 | ||||||||||
PIMCO Long Duration Total Return Fund | 20,151 | 228 | ||||||||||
PIMCO Real Return Asset Fund | 28,393 | 229 | ||||||||||
PIMCO Real Return Fund | 42,919 | 466 | ||||||||||
PIMCO Total Return Fund | 44,093 | 467 | ||||||||||
|
| |||||||||||
Total Mutual Funds (Cost $1,894) | 1,852 | |||||||||||
|
|
SHARES | MARKET VALUE (000S) | |||||||||||
SHORT-TERM INSTRUMENTS 3.2% | ||||||||||||
CENTRAL FUNDS USED FOR CASH MANAGEMENT PURPOSES 3.2% | ||||||||||||
PIMCO Short-Term Floating NAV Portfolio III | 10,109 | $ | 100 | |||||||||
|
| |||||||||||
Total Short-Term Instruments (Cost $100) | 100 | |||||||||||
|
| |||||||||||
Total Investments in Affiliates (Cost $1,994) | 1,952 | |||||||||||
Total Investments 94.3% (Cost $2,981) | $ | 2,945 | ||||||||||
Financial Derivative | ||||||||||||
(Cost or Premiums, net $5) | 7 | |||||||||||
Other Assets and Liabilities, net 5.5% | 170 | |||||||||||
|
| |||||||||||
Net Assets 100.0% | $ | 3,122 | ||||||||||
|
|
NOTES TO SCHEDULE OF INVESTMENTS (AMOUNTS IN THOUSANDS*, EXCEPT NUMBER OF CONTRACTS AND UNITS):
* | A zero balance may reflect actual amounts rounding to less than one thousand. |
(a) | Institutional Class Shares of each Fund. |
(b) FINANCIAL DERIVATIVE INSTRUMENTS: EXCHANGE-TRADED OR CENTRALLY CLEARED
PURCHASED OPTIONS:
OPTIONS ON INDICES
Description | Strike Value | Expiration Date | # of Contracts | Cost | Market Value | |||||||||||||||
Put - CBOE S&P 500 Index | 1,750.000 | 01/15/2016 | 1 | $ | 7 | $ | 3 | |||||||||||||
Put - CBOE S&P 500 Index | 1,850.000 | 03/18/2016 | 1 | 6 | 6 | |||||||||||||||
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|
| |||||||||||||||||
$ | 13 | $ | 9 | |||||||||||||||||
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|
| |||||||||||||||||
Total Purchased Options | $ | 13 | $ | 9 | ||||||||||||||||
|
|
|
|
WRITTEN OPTIONS:
OPTIONS ON INDICES
Description | Strike Value | Expiration Date | # of Contracts | Premiums (Received) | Market Value | |||||||||||||||
Put - CBOE S&P 500 Index | 1,600.000 | 01/15/2016 | 1 | $ | (5) | $ | (1) | |||||||||||||
Put - CBOE S&P 500 Index | 1,650.000 | 03/18/2016 | 1 | (3) | (3) | |||||||||||||||
|
|
|
| |||||||||||||||||
$ | (8) | $ | (4) | |||||||||||||||||
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|
| |||||||||||||||||
Total Written Options | $ | (8) | $ | (4) | ||||||||||||||||
|
|
|
|
FINANCIAL DERIVATIVE INSTRUMENTS: EXCHANGE-TRADED OR CENTRALLY CLEARED SUMMARY
The following is a summary of the market value and variation margin of Exchange-Traded or Centrally Cleared Financial Derivative Instruments as of June 30, 2015:
Financial Derivative Assets | Financial Derivative Liabilities | |||||||||||||||||||||||||||||||||
Market Value | Variation Margin Asset | Market Value | Variation Margin Liability | |||||||||||||||||||||||||||||||
Purchased Options | Futures | Swap Agreements | Total | Written Options | Futures | Swap Agreements | Total | |||||||||||||||||||||||||||
Total Exchange-Traded or Centrally Cleared | $ | 9 | $ | 0 | $ | 0 | $ | 9 | $ | (4) | $ | 0 | $ | 0 | $ | (4) | ||||||||||||||||||
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54 | PIMCO EQUITY SERIES | See Accompanying Notes |
Table of Contents
June 30, 2015
(c) FINANCIAL DERIVATIVE INSTRUMENTS: OVER THE COUNTER
WRITTEN OPTIONS:
TRANSACTIONS IN WRITTEN CALL AND PUT OPTIONS FOR THE PERIOD ENDED JUNE 30, 2015:
# of Contracts | Premiums | |||||||
Balance at Beginning of Period | 0 | $ | 0 | |||||
Sales | 2 | (8 | ) | |||||
Closing Buys | 0 | 0 | ||||||
Expirations | 0 | 0 | ||||||
Exercised | 0 | 0 | ||||||
|
|
|
| |||||
Balance at End of Period | 2 | $ | (8 | ) | ||||
|
|
|
|
SWAP AGREEMENTS:
TOTAL RETURN SWAPS ON COMMODITY INDICES
Counterparty | Pay/Receive (1) | Underlying Reference | # of Units | Financing Rate | Maturity Date | Notional Amount | Unrealized Appreciation | Swap Agreements, at Value | ||||||||||||||||||||||
Asset | Liability | |||||||||||||||||||||||||||||
CBK | Receive | BCOMTR Index | 379 | 3-Month U.S. Treasury Bill rate | 08/17/2015 | $ | 77 | $ | 2 | $ | 2 | $ | 0 | |||||||||||||||||
|
|
|
|
|
| |||||||||||||||||||||||||
Total Swap Agreements | $ | 2 | $ | 2 | $ | 0 | ||||||||||||||||||||||||
|
|
|
|
|
|
(1) | Receive represents that the Fund receives payments for any positive return on the underlying reference. The Fund makes payments for any negative return on such underlying reference. Pay represents that the Fund receives payments for any negative return on the underlying reference. The Fund makes payments for any positive return on such underlying reference. |
FINANCIAL DERIVATIVE INSTRUMENTS: OVER THE COUNTER SUMMARY
The following is a summary by counterparty of the market value of OTC financial derivative instruments and collateral (received)/pledged as of June 30, 2015:
Financial Derivative Assets | Financial Derivative Liabilities | |||||||||||||||||||||||||||||||||||||||||||||
Counterparty | Forward Foreign Currency Contracts | Purchased Options | Swap Agreements | Total Over the Counter | Forward Foreign Currency Contracts | Written Options | Swap Agreements | Total Over the Counter | Net Market Value of OTC Derivatives | Collateral (Received)/ Pledged | Net Exposure (2) | |||||||||||||||||||||||||||||||||||
CBK | $ | 0 | $ | 0 | $ | 2 | $ | 2 | $ | 0 | $ | 0 | $ | 0 | $ | 0 | $ | 2 | $ | 0 | $ | 2 | ||||||||||||||||||||||||
|
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|
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|
|
|
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|
|
|
|
(2) | Net Exposure represents the net receivable/(payable) that would be due from/to the counterparty in the event of default. Exposure from OTC financial derivative instruments can only be netted across transactions governed under the same master agreement with the same legal entity. See Note 6, Principal Risks, in the Notes to Financial Statements for more information regarding master netting arrangements. |
FAIR VALUE OF FINANCIAL DERIVATIVE INSTRUMENTS
The following is a summary of the fair valuation of the Fund’s derivative instruments categorized by risk exposure. See Note 6, Principal Risks, in the Notes to Financial Statements on risks of the Fund.
Fair Values of Financial Derivative Instruments on the Statements of Assets and Liabilities as of June 30, 2015:
Derivatives not accounted for as hedging instruments | ||||||||||||||||||||||||
Commodity Contracts | Credit Contracts | Equity Contracts | Foreign Exchange Contracts | Interest Rate Contracts | Total | |||||||||||||||||||
Financial Derivative Instruments - Assets | ||||||||||||||||||||||||
Exchange-traded or centrally cleared | ||||||||||||||||||||||||
Purchased Options | $ | 0 | $ | 0 | $ | 9 | $ | 0 | $ | 0 | $ | 9 | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Over the counter | ||||||||||||||||||||||||
Swap Agreements | $ | 2 | $ | 0 | $ | 0 | $ | 0 | $ | 0 | $ | 2 | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
$ | 2 | $ | 0 | $ | 9 | $ | 0 | $ | 0 | $ | 11 | |||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Financial Derivative Instruments - Liabilities | ||||||||||||||||||||||||
Exchange-traded or centrally cleared | ||||||||||||||||||||||||
Written Options | $ | 0 | $ | 0 | $ | 4 | $ | 0 | $ | 0 | $ | 4 | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
See Accompanying Notes | ANNUAL REPORT | JUNE 30, 2015 | 55 |
Table of Contents
Schedule of Investments PIMCO RealPath™ Blend Income Fund (Cont.)
June 30, 2015
The Effect of Financial Derivative Instruments on the Statements of Operations for the period ended June 30, 2015:
Derivatives not accounted for as hedging instruments | ||||||||||||||||||||||||
Commodity Contracts | Credit Contracts | Equity Contracts | Foreign Exchange Contracts | Interest Rate Contracts | Total | |||||||||||||||||||
Net Realized (Loss) on Financial Derivative Instruments | ||||||||||||||||||||||||
Over the counter | ||||||||||||||||||||||||
Swap Agreements | $ | (3 | ) | $ | 0 | $ | 0 | $ | 0 | $ | 0 | $ | (3 | ) | ||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Net Change in Unrealized Appreciation (Depreciation) on Financial Derivative Instruments |
| |||||||||||||||||||||||
Exchange-traded or centrally cleared | ||||||||||||||||||||||||
Purchased Options | $ | 0 | $ | 0 | $ | (4 | ) | $ | 0 | $ | 0 | $ | (4 | ) | ||||||||||
Written Options | 0 | 0 | 3 | 0 | 0 | 3 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
$ | 0 | $ | 0 | $ | (1 | ) | $ | 0 | $ | 0 | $ | (1 | ) | |||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Over the counter | ||||||||||||||||||||||||
Swap Agreements | $ | 2 | $ | 0 | $ | 0 | $ | 0 | $ | 0 | $ | 2 | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
$ | 2 | $ | 0 | $ | (1 | ) | $ | 0 | $ | 0 | $ | 1 | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
FAIR VALUE MEASUREMENTS
The following is a summary of the fair valuations according to the inputs used as of June 30, 2015 in valuing the Fund’s assets and liabilities:
Category and Subcategory | Level 1 | Level 2 | Level 3 | Fair Value at 06/30/2015 | ||||||||||||
Investments in Securities, at Value | ||||||||||||||||
Mutual Funds | $ | 993 | $ | 0 | $ | 0 | $ | 993 | ||||||||
$ | 993 | $ | 0 | $ | 0 | $ | 993 | |||||||||
Investments in Affiliates, at Value | ||||||||||||||||
Mutual Funds | 1,852 | 0 | 0 | 1,852 | ||||||||||||
Short-Term Instruments | ||||||||||||||||
Central Funds Used for Cash Management Purposes | 100 | 0 | 0 | 100 | ||||||||||||
$ | 1,952 | $ | 0 | $ | 0 | $ | 1,952 | |||||||||
Total Investments | $ | 2,945 | $ | 0 | $ | 0 | $ | 2,945 |
Category and Subcategory | Level 1 | Level 2 | Level 3 | Fair Value at 06/30/2015 | ||||||||||||
Financial Derivative Instruments - Assets |
| |||||||||||||||
Exchange-traded or centrally cleared | $ | 0 | $ | 9 | $ | 0 | $ | 9 | ||||||||
Over the counter | 0 | 2 | 0 | 2 | ||||||||||||
$ | 0 | $ | 11 | $ | 0 | $ | 11 | |||||||||
Financial Derivative Instruments - Liabilities |
| |||||||||||||||
Exchange-traded or centrally cleared | $ | 0 | $ | (4 | ) | $ | 0 | $ | (4 | ) | ||||||
Totals | $ | 2,945 | $ | 7 | $ | 0 | $ | 2,952 |
There were no significant transfers between Levels 1, 2, or 3 during the period ended June 30, 2015.
56 | PIMCO EQUITY SERIES | See Accompanying Notes |
Table of Contents
June 30, 2015
1. ORGANIZATION
PIMCO Equity Series (the “Trust”) was established as a Delaware statutory trust on December 28, 2009. The Trust is registered under the Investment Company Act of 1940, as amended (the “Act”), as an open-end management investment company. Information presented in these financial statements pertains to the Institutional Class, Administrative Class and Class A shares of the funds (each a “Fund” and collectively the “Funds”) indicated on the cover of this report. Pacific Investment Management Company LLC (“PIMCO”) serves as the investment adviser (the “Adviser”) for the Funds.
2. SIGNIFICANT ACCOUNTING POLICIES
The following is a summary of significant accounting policies consistently followed by the Trust in the preparation of its financial statements in conformity with accounting principles generally accepted in the United States of America (“U.S. GAAP”). Each Fund is treated as an investment company under the reporting requirements of U.S. GAAP. The preparation of financial statements in accordance with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of increases and decreases in net assets from operations during the reporting period. Actual results could differ from those estimates.
(a) Securities Transactions and Investment Income Securities transactions are recorded as of the trade date for financial reporting purposes. Realized gains and losses from securities sold are recorded on the identified cost basis. Dividend income is recorded on the ex-dividend date, except certain dividends from foreign securities where the ex-dividend date may have passed, which are recorded as soon as the Fund is informed of the ex-dividend date. Interest income, adjusted for the accretion of discounts and amortization of premiums, is recorded on the accrual basis from settlement date. For convertible securities, premiums attributable to the conversion feature are not amortized. Estimated tax liabilities on certain foreign securities are recorded on an accrual basis and are reflected as components of interest income or net change in unrealized appreciation/depreciation on investments on the Statements of Operations, as appropriate. Tax liabilities realized as a result of such security sales are reflected as a component of net realized gain/loss on investments on the Statements of Operations. Income or short-term capital gain distributions received from underlying funds are recorded as dividend income. Long-term capital gain distributions received from underlying funds are recorded as realized gains.
(b) Cash and Foreign Currency The functional and reporting currency for the Funds is the U.S. dollar. The market values of foreign securities,
currency holdings and other assets and liabilities are translated into U.S. dollars based on the current exchange rates each business day. Purchases and sales of securities and income and expense items denominated in foreign currencies, if any, are translated into U.S. dollars at the exchange rate in effect on the transaction date. The Funds do not separately report the effects of changes in foreign exchange rates from changes in market prices on securities held. Such changes are included in net realized and net changes in unrealized gain or loss from investments on the Statements of Operations. The Funds may invest in foreign currency-denominated securities and may engage in foreign currency transactions either on a spot (cash) basis at the rate prevailing in the currency exchange market at the time or through a forward foreign currency contract (see financial derivative instruments). Realized foreign exchange gains or losses arising from sales of spot foreign currencies, currency gains or losses realized between the trade and settlement dates on securities transactions and the difference between the recorded amounts of dividends, interest, and foreign withholding taxes and the U.S. dollar equivalent of the amounts actually received or paid are included in net realized gain or loss on foreign currency transactions on the Statements of Operations. Net unrealized foreign exchange gains and losses arising from changes in foreign exchange rates on foreign denominated assets and liabilities other than investments in securities held at the end of the reporting period are included in net change in unrealized appreciation or depreciation on foreign currency assets and liabilities on the Statements of Operations.
(c) Multiclass Operations Each class offered by the Trust has equal rights as to assets and voting privileges (except that shareholders of a class have exclusive voting rights regarding any matter relating solely to that class of shares). Income and non-class specific expenses are allocated daily to each class on the basis of the relative value of settled shares. Realized and unrealized capital gains and losses are allocated daily based on the relative net assets of each class of the Fund. Class specific expenses, where applicable, currently include supervisory and administrative and distribution and servicing fees.
(d) Dividends and Distributions to Shareholders Dividends from net investment income, if any, of each Fund, are declared and distributed to shareholders quarterly. Net realized capital gains earned by each Fund, if any, will be distributed no less frequently than annually.
Income dividends and capital gain distributions are determined in accordance with income tax regulations which may differ from U.S. GAAP. Differences between tax regulations and U.S. GAAP may cause timing differences between income and capital gain recognition. Examples of events that give rise to timing differences include wash sales, straddles and capital loss carryforwards. Further, the character of investment income and capital gains may be different for certain transactions under the two methods of accounting. Examples of
ANNUAL REPORT | JUNE 30, 2015 | 57 |
Table of Contents
Notes to Financial Statements (Cont.)
characterization differences include the treatment of paydowns on mortgage-backed securities, swaps, foreign currency transactions and contingent debt instruments. As a result, income dividends and capital gain distributions declared during a fiscal period may differ significantly from the net investment income (loss) and realized gains (losses) reported on each Fund’s annual financial statements presented under U.S. GAAP.
Distributions classified as a tax basis return of capital, if any, are reflected on the accompanying Statements of Changes in Net Assets and have been recorded to paid in capital. In addition, other amounts have been reclassified between undistributed (overdistributed) net investment income (loss), accumulated undistributed/(overdistributed) net realized gains (losses) and/or paid in capital to more appropriately conform financial accounting to tax characterizations of dividend distributions.
(e) New Accounting Pronouncements In June 2014, the Financial Accounting Standards Board (“FASB”) issued an Accounting Standards Update (“ASU”), ASU 2014-11, that expanded secured borrowing accounting for certain repurchase agreements. The ASU also sets forth additional disclosure requirements for certain transactions accounted for as sales in order to provide financial statement users with information to compare to similar transactions accounted for as secured borrowings. The ASU became effective prospectively for annual periods beginning after December 15, 2014, and interim periods beginning after March 15, 2015. The Funds have adopted the ASU as they follow the investment company reporting requirements under U.S. GAAP. The implementation of the ASU did not have an impact on the Funds’ financial statements.
In May 2015, the FASB issued ASU 2015-07 which removes the requirement to categorize within the fair value hierarchy all investments for which fair value is measured using the net asset value per share practical expedient. The ASU also removes the requirement to make certain disclosures for all investments that are eligible to be measured at fair value using the net asset value per share practical expedient. The ASU is effective for annual periods beginning after December 15, 2015 and interim periods within those annual periods. At this time, management is evaluating the implications of these changes on the financial statements.
3. INVESTMENT VALUATION AND FAIR VALUE MEASUREMENTS
(a) Investment Valuation Policies The price of a Fund’s shares is based on the Fund’s NAV. The NAV of a Fund’s shares is determined by dividing the total value of a Fund’s portfolio investments and other assets attributable to that class, less any liabilities, by the total number of shares outstanding of that class.
Fund shares are ordinarily valued as of the NYSE Close on each day that the NYSE is open. Information that becomes known to the Funds or their agents after the time as of which NAV has been calculated on a particular day will not generally be used to retroactively adjust the price of a security or the NAV determined earlier that day. Each Fund reserves the right to change the time its respective NAV is calculated if the Fund closes earlier, or as permitted by the SEC.
For purposes of calculating NAV, portfolio securities and other assets for which market quotes are readily available are valued at market value. Market value is generally determined on the basis of official closing prices or the last reported sales prices, or if no sales are reported, based on quotes obtained from established market makers or prices (including evaluated prices) supplied by the Funds’ approved pricing services, quotation reporting systems and other third-party sources (together, “Pricing Services”). The Funds will normally use pricing data for domestic equity securities received shortly after the NYSE Close and do not normally take into account trading, clearances or settlements that take place after the NYSE Close. A foreign (non-U.S.) equity security traded on a foreign exchange or on more than one exchange is typically valued using pricing information from the exchange considered by the manager to be the primary exchange. A foreign (non-U.S.) equity security will be valued as of the close of trading on the foreign exchange, or the NYSE Close, if the NYSE Close occurs before the end of trading on the foreign exchange. Domestic and foreign (non-U.S.) fixed income securities, non-exchange traded derivatives, and equity options are normally valued on the basis of quotes obtained from brokers and dealers or Pricing Services using data reflecting the earlier closing of the principal markets for those securities. Prices obtained from Pricing Services may be based on, among other things, information provided by market makers or estimates of market values obtained from yield data relating to investments or securities with similar characteristics. Certain fixed income securities purchased on a delayed-delivery basis are marked to market daily until settlement at the forward settlement date. Exchange-traded options, except equity options, futures and options on futures are valued at the settlement price determined by the relevant exchange. Swap agreements are valued on the basis of bid quotes obtained from brokers and dealers or market-based prices supplied by Pricing Services or other pricing sources. With respect to any portion of the Fund’s assets that are invested in one or more open-end management investment companies, a Fund’s NAV will be calculated based upon the NAVs of such investments.
If a foreign (non-U.S.) equity security’s value has materially changed after the close of the security’s primary exchange or principal market but before the NYSE Close, the security may be valued at fair value based on procedures established and approved by the Board of
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Trustees. Foreign (non-U.S.) equity securities that do not trade when the NYSE is open are also valued at fair value. With respect to foreign (non-U.S.) equity securities, the Fund may determine the fair value of investments based on information provided by Pricing Services and other third-party vendors, which may recommend fair value or adjustments with reference to other securities, indices or assets. In considering whether fair valuation is required and in determining fair values, the Fund may, among other things, consider significant events (which may be considered to include changes in the value of U.S. securities or securities indices) that occur after the close of the relevant market and before the NYSE Close. A Fund may utilize modeling tools provided by third-party vendors to determine fair values of non-U.S. securities. Foreign (non-U.S.) exchanges may permit trading in foreign (non-U.S.) equity securities on days when the Trust is not open for business, which may result in a Fund’s portfolio investments being affected when you are unable to buy or sell shares.
Senior secured floating rate loans for which an active secondary market exists to a reliable degree will be valued at the mean of the last available bid/ask prices in the market for such loans, as provided by a Pricing Service. Senior secured floating rate loans for which an active secondary market does not exist to a reliable degree will be valued at fair value, which is intended to approximate market value. In valuing a senior secured floating rate loan at fair value, the factors considered may include, but are not limited to, the following: (a) the creditworthiness of the borrower and any intermediate participants, (b) the terms of the loan, (c) recent prices in the market for similar loans, if any, and (d) recent prices in the market for instruments of similar quality, rate, period until next interest rate reset and maturity.
Investments valued in currencies other than the U.S. dollar are converted to the U.S. dollar using exchange rates obtained from Pricing Services. As a result, the NAV of the Fund’s shares may be affected by changes in the value of currencies in relation to the U.S. dollar. The value of securities traded in markets outside the United States or denominated in currencies other than the U.S. dollar may be affected significantly on a day that the Trust is not open for business. As a result, to the extent that a Fund holds foreign (non-U.S.) securities, the NAV of the Fund’s shares may change at times when you cannot purchase, redeem or exchange shares.
Investments for which market quotes or market based valuations are not readily available are valued at fair value as determined in good faith by the Board of Trustees or persons acting at their direction. The Board of Trustees has adopted methods for valuing securities and other assets in circumstances where market quotes are not readily available, and has delegated to PIMCO the responsibility for applying the fair valuation methods. In the event that market quotes or market based valuations are not readily available, and the security or asset cannot be
valued pursuant to a Board approved valuation method, the value of the security or asset will be determined in good faith by the Valuation Oversight Committee of the Board of Trustees, generally based on recommendations provided by PIMCO. Market quotes are considered not readily available in circumstances where there is an absence of current or reliable market-based data (e.g., trade information, bid/ask information, broker quotes, Pricing Services prices), including where events occur after the close of the relevant market, but prior to the NYSE Close, that materially affect the values of the Fund’s securities or assets. In addition, market quotes are considered not readily available when, due to extraordinary circumstances, the exchanges or markets on which the securities trade do not open for trading for the entire day and no other market prices are available. The Board has delegated to PIMCO the responsibility for monitoring significant events that may materially affect the values of the Fund’s securities or assets and for determining whether the value of the applicable securities or assets should be reevaluated in light of such significant events.
When the Fund uses fair valuation to determine its NAV, securities will not be priced on the basis of quotes from the primary market in which they are traded, but rather may be priced by another method that the Board of Trustees or persons acting at their direction believe reflects fair value. Fair valuation may require subjective determinations about the value of a security. While the Trust’s policy is intended to result in a calculation of the Fund’s NAV that fairly reflects security values as of the time of pricing, the Trust cannot ensure that fair values determined by the Board of Trustees or persons acting at their direction would accurately reflect the price that a Fund could obtain for a security if it were to dispose of that security as of the time of pricing (for instance, in a forced or distressed sale). The prices used by the Fund may differ from the value that would be realized if the securities were sold. The Funds’ use of fair valuation may also help to deter “stale price arbitrage” as discussed under the “Abusive Trading Practices” section in the Funds’ prospectuses.
Under certain circumstances, the per share NAV of a class of the Fund’s shares may be different from the per share NAV of another class of shares as a result of the different daily expense accruals applicable to each class of shares.
(b) Fair Value Hierarchy U.S. GAAP describes fair value as the price that a Fund would receive to sell an asset or pay to transfer a liability in an orderly transaction between market participants at the measurement date. It establishes a fair value hierarchy that prioritizes inputs to valuation methods and requires disclosure of the fair value hierarchy, separately for each major category of assets and liabilities, that segregates fair value measurements into levels (Level 1, 2, or 3). The inputs or methodology used for valuing securities are not necessarily an indication of the risks associated with investing in those
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securities. Levels 1, 2, and 3 of the fair value hierarchy are defined as follows:
n | Level 1 — Inputs using (unadjusted) quoted prices in active markets or exchanges for identical assets and liabilities. |
n | Level 2 — Significant other observable inputs, which may include, but are not limited to, quoted prices for similar assets or liabilities in markets that are active, quoted prices for identical or similar assets or liabilities in markets that are not active, inputs other than quoted prices that are observable for the assets or liabilities (such as interest rates, yield curves, volatilities, prepayment speeds, loss severities, credit risks and default rates) or other market corroborated inputs. |
n | Level 3 — Significant unobservable inputs based on the best information available in the circumstances, to the extent observable inputs are not available, which may include assumptions made by the Board or persons acting at their direction that are used in determining the fair value of investments. |
In accordance with the requirements of U.S. GAAP, the amounts of transfers between Levels 1 and 2 and transfers in and out of Level 3, if material, are disclosed in the Notes to Schedule of Investments for each respective Fund.
For fair valuations using significant unobservable inputs, U.S. GAAP requires a reconciliation of the beginning to ending balances for reported fair values that presents changes attributable to total realized and unrealized gains or losses, purchases and sales, and transfers in or out of the Level 3 category during the period. The end of period timing recognition is used for the transfers between Levels of a Fund’s assets and liabilities. Additionally, U.S. GAAP requires quantitative information regarding the significant unobservable inputs used in the determination of fair value of assets or liabilities categorized as Level 3 in the fair value hierarchy. In accordance with the requirements of U.S. GAAP, a fair value hierarchy, and if material, a Level 3 reconciliation and details of significant unobservable inputs, have been included in the Notes to Schedule of Investments for each respective Fund.
(c) Valuation Techniques and the Fair Value Hierarchy
Level 1 and Level 2 trading assets and trading liabilities, at fair value The valuation methods (or “techniques”) and significant inputs used in determining the fair values of portfolio securities or other assets categorized as Level 1 and Level 2 of the fair value hierarchy are as follows:
Common stocks, exchange-traded funds, exchange-traded notes and financial derivative instruments, such as futures contracts or options on
futures that are traded on a national securities exchange, are stated at the last reported sale or settlement price on the day of valuation. To
the extent these securities are actively traded and valuation adjustments are not applied, they are categorized as Level 1 of the fair value hierarchy.
Investments in registered open-end investment companies will be valued based upon the NAVs of such investments and are categorized as Level 1 of the fair value hierarchy. Investments in unregistered open-end investment companies will be calculated based upon the NAVs of such investments and are considered Level 1 provided that the NAVs are observable, calculated daily and are the value at which both purchases and sales will be conducted. Investments in privately held investment funds with significant restrictions on redemption where the inputs to the NAVs are observable will be valued based upon the NAVs of such investments and are categorized as Level 2 of the fair value hierarchy.
Equity exchange-traded options and over the counter financial derivative instruments, such as foreign currency contracts, options contracts, or swap agreements, derive their value from underlying asset prices, indices, reference rates, and other inputs or a combination of these factors. Other than swap agreements, which are valued using a broker-dealer bid quotation or on market-based prices provided by pricing services or other pricing sources, these contracts are normally valued on the basis of quotes obtained from a quotation reporting system, established market makers or Pricing Services (normally determined at the close of the New York market). [NOTE: Per agreed upon disclosure.] Depending on the product and the terms of the transaction, financial derivative instruments can be valued by a pricing service provider using a series of techniques, including simulation pricing models. The pricing models use inputs that are observed from actively quoted markets such as quoted prices, issuer details, indices, bid/ask spreads, interest rates, implied volatilities, yield curves, dividends and exchange rates. Financial derivative instruments that use similar valuation techniques and inputs as described above are categorized as Level 2 of the fair value hierarchy.
Centrally cleared swaps listed or traded on a multilateral or trade facility platform, such as a registered exchange, are valued at the daily settlement price determined by the respective exchange (if available). For centrally cleared credit default swaps the clearing facility requires its members to provide actionable price levels across complete term structures. These levels along with external third-party prices are used to produce daily settlement prices. These securities are categorized as Level 2 of the fair value hierarchy. Centrally cleared interest rate swaps are valued using a pricing model that references the underlying rates including the overnight index swap rate and London Interbank Offered Rate (“LIBOR”) forward rate to produce the daily settlement price. These securities are categorized as Level 2 of the fair value hierarchy.
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4. SECURITIES AND OTHER INVESTMENTS
(a) Investments in Affiliates
Each Fund seeks to achieve its investment objective by investing under normal circumstances substantially all of its assets in Institutional Class or Class M shares of any funds of the Trust and PIMCO Funds, and in other affiliated funds, including funds of PIMCO ETF Trust, except funds of funds (“Underlying PIMCO Funds”), and unaffiliated funds that are registered under the Act (collectively, “Acquired Funds”). The Underlying PIMCO Funds are considered to be affiliated with the Funds. Each Fund may invest in the PIMCO Short-Term Floating NAV Portfolio III (“Central Fund”) to the extent permitted by the Act and rules thereunder. The Central Fund is a registered investment company created for use solely by the series of the Trust and series of the PIMCO Funds, PIMCO ETF Trust, PIMCO Equity Series VIT, and other series of registered investment companies advised by PIMCO, in connection with their cash management activities. The main investments of the Central Funds are money market and short maturity fixed income instruments. The Central Fund may incur expenses related to its investment activities, but do not pay Investment Advisory or Supervisory and Administrative Fees to PIMCO. The Central Fund is considered to be affiliated with the Funds. The tables below show the transactions in and earnings from investments in Underlying PIMCO Funds for the period ended June 30, 2015 (amounts in thousands†):
PIMCO RealPath™ Blend 2020 Fund | ||||||||||||||||||||||||||||||||||
Underlying PIMCO Funds | Market Value 06/30/2014 | Purchases at Cost | Proceeds from Sales | Net Realized Gain/(Loss) | Change in Unrealized Appreciation/ (Depreciation) | Market Value 06/30/2015 | Dividend Income (1) | Realized Net Capital Gain Distributions (1) | ||||||||||||||||||||||||||
PIMCO Emerging Local Bond Fund | $ | 0 | $ | 82 | $ | (2 | ) | $ | 0 | $ | (5 | ) | $ | 75 | $ | 2 | $ | 0 | ||||||||||||||||
PIMCO Foreign Bond Fund (U.S. Dollar-Hedged) | 0 | 234 | (3 | ) | 0 | (5 | ) | 226 | 2 | 0 | ||||||||||||||||||||||||
PIMCO High Yield Fund | 0 | 158 | (4 | ) | 0 | (1 | ) | 153 | 4 | 0 | ||||||||||||||||||||||||
PIMCO Long Duration Total Return Fund | 0 | 250 | (12 | ) | 0 | (14 | ) | 224 | 4 | 0 | ||||||||||||||||||||||||
PIMCO Real Return Asset Fund | 0 | 322 | (11 | ) | 1 | (11 | ) | 301 | 1 | 0 | ||||||||||||||||||||||||
PIMCO Real Return Fund | 0 | 311 | (5 | ) | 0 | (2 | ) | 304 | 2 | 0 | ||||||||||||||||||||||||
PIMCO Total Return Fund | 0 | 468 | (5 | ) | 0 | (4 | ) | 459 | 5 | 0 | ||||||||||||||||||||||||
Totals | $ | 0 | $ | 1,825 | $ | (42 | ) | $ | 1 | $ | (42 | ) | $ | 1,742 | $ | 20 | $ | 0 |
† | A zero balance may reflect actual amounts rounding to less than one thousand. |
(1) | A portion of this may be recharacterized to return of capital and reflected as such on tax forms mailed to shareholders on or about January 31st following each calendar year. |
PIMCO RealPath™ Blend 2025 Fund | ||||||||||||||||||||||||||||||||||
Underlying PIMCO Funds | Market Value 06/30/2014 | Purchases at Cost | Proceeds from Sales | Net Realized Gain/(Loss) | Change in Unrealized Appreciation/ (Depreciation) | Market Value 06/30/2015 | Dividend Income (1) | Realized Net Capital Gain Distributions (1) | ||||||||||||||||||||||||||
PIMCO Emerging Local Bond Fund | $ | 0 | $ | 82 | $ | (1 | ) | $ | 0 | $ | (5 | ) | $ | 76 | $ | 2 | $ | 0 | ||||||||||||||||
PIMCO Foreign Bond Fund (U.S. Dollar-Hedged) | 0 | 159 | (2 | ) | 0 | (4 | ) | 153 | 1 | 0 | ||||||||||||||||||||||||
PIMCO High Yield Fund | 0 | 235 | (2 | ) | 0 | (1 | ) | 232 | 6 | 0 | ||||||||||||||||||||||||
PIMCO Long Duration Total Return Fund | 0 | 251 | (12 | ) | 0 | (13 | ) | 226 | 5 | 0 | ||||||||||||||||||||||||
PIMCO Real Return Asset Fund | 0 | 326 | (12 | ) | 1 | (11 | ) | 304 | 1 | 0 | ||||||||||||||||||||||||
PIMCO Real Return Fund | 0 | 236 | (4 | ) | 0 | (2 | ) | 230 | 1 | 0 | ||||||||||||||||||||||||
PIMCO Total Return Fund | 0 | 237 | (2 | ) | 0 | (2 | ) | 233 | 3 | 0 | ||||||||||||||||||||||||
Totals | $ | 0 | $ | 1,526 | $ | (35 | ) | $ | 1 | $ | (38 | ) | $ | 1,454 | $ | 19 | $ | 0 |
† | A zero balance may reflect actual amounts rounding to less than one thousand. |
(1) | A portion of this may be recharacterized to return of capital and reflected as such on tax forms mailed to shareholders on or about January 31st following each calendar year. |
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PIMCO RealPath™ Blend 2030 Fund | ||||||||||||||||||||||||||||||||||
Underlying PIMCO Funds | Market Value 06/30/2014 | Purchases at Cost | Proceeds from Sales | Net Realized Gain/(Loss) | Change in Unrealized Appreciation/ (Depreciation) | Market Value 06/30/2015 | Dividend Income (1) | Realized Net Capital Gain Distributions (1) | ||||||||||||||||||||||||||
PIMCO Emerging Local Bond Fund | $ | 0 | $ | 167 | $ | (3 | ) | $ | 0 | $ | (10 | ) | $ | 154 | $ | 4 | $ | 0 | ||||||||||||||||
PIMCO Foreign Bond Fund (U.S. Dollar-Hedged) | 0 | 78 | 0 | 0 | (2 | ) | 76 | 1 | 0 | |||||||||||||||||||||||||
PIMCO High Yield Fund | 0 | 234 | (3 | ) | 0 | (1 | ) | 230 | 6 | 0 | ||||||||||||||||||||||||
PIMCO Long Duration Total Return Fund | 0 | 251 | (13 | ) | 0 | (13 | ) | 225 | 5 | 0 | ||||||||||||||||||||||||
PIMCO Real Return Asset Fund | 0 | 325 | (12 | ) | 1 | (11 | ) | 303 | 1 | 0 | ||||||||||||||||||||||||
PIMCO Real Return Fund | 0 | 79 | (2 | ) | 0 | (1 | ) | 76 | 0 | 0 | ||||||||||||||||||||||||
PIMCO Total Return Fund | 0 | 78 | 0 | 0 | (1 | ) | 77 | 1 | 0 | |||||||||||||||||||||||||
Totals | $ | 0 | $ | 1,212 | $ | (33 | ) | $ | 1 | $ | (39 | ) | $ | 1,141 | $ | 18 | $ | 0 |
† | A zero balance may reflect actual amounts rounding to less than one thousand. |
(1) | A portion of this may be recharacterized to return of capital and reflected as such on tax forms mailed to shareholders on or about January 31st following each calendar year. |
PIMCO RealPath™ Blend 2035 Fund | ||||||||||||||||||||||||||||||||||
Underlying PIMCO Funds | Market Value 06/30/2014 | Purchases at Cost | Proceeds from Sales | Net Realized Gain/(Loss) | Change in Unrealized Appreciation/ (Depreciation) | Market Value 06/30/2015 | Dividend Income (1) | Realized Net Capital Gain Distributions (1) | ||||||||||||||||||||||||||
PIMCO Emerging Local Bond Fund | $ | 0 | $ | 167 | $ | (2 | ) | $ | 0 | $ | (10 | ) | $ | 155 | $ | 4 | $ | 0 | ||||||||||||||||
PIMCO High Yield Fund | 0 | 157 | 0 | 0 | (1 | ) | 156 | 4 | 0 | |||||||||||||||||||||||||
PIMCO Long Duration Total Return Fund | 0 | 256 | (14 | ) | 0 | (14 | ) | 228 | 5 | 0 | ||||||||||||||||||||||||
PIMCO Real Return Asset Fund | 0 | 328 | (13 | ) | 1 | (11 | ) | 305 | 1 | 0 | ||||||||||||||||||||||||
Totals | $ | 0 | $ | 908 | $ | (29 | ) | $ | 1 | $ | (36 | ) | $ | 844 | $ | 14 | $ | 0 |
† | A zero balance may reflect actual amounts rounding to less than one thousand. |
(1) | A portion of this may be recharacterized to return of capital and reflected as such on tax forms mailed to shareholders on or about January 31st following each calendar year. |
PIMCO RealPath™ Blend 2040 Fund | ||||||||||||||||||||||||||||||||||
Underlying PIMCO Funds | Market Value 06/30/2014 | Purchases at Cost | Proceeds from Sales | Net Realized Gain/(Loss) | Change in Unrealized Appreciation/ (Depreciation) | Market Value 06/30/2015 | Dividend Income (1) | Realized Net Capital Gain Distributions (1) | ||||||||||||||||||||||||||
PIMCO Emerging Local Bond Fund | $ | 0 | $ | 82 | $ | 0 | $ | 0 | $ | (5 | ) | $ | 77 | $ | 2 | $ | 0 | |||||||||||||||||
PIMCO High Yield Fund | 0 | 157 | 0 | 0 | (1 | ) | 156 | 4 | 0 | |||||||||||||||||||||||||
PIMCO Long Duration Total Return Fund | 0 | 256 | (15 | ) | 1 | (14 | ) | 228 | 5 | 0 | ||||||||||||||||||||||||
PIMCO Real Return Asset Fund | 0 | 248 | (11 | ) | 0 | (8 | ) | 229 | 1 | 0 | ||||||||||||||||||||||||
Totals | $ | 0 | $ | 743 | $ | (26 | ) | $ | 1 | $ | (28 | ) | $ | 690 | $ | 12 | $ | 0 |
† | A zero balance may reflect actual amounts rounding to less than one thousand. |
(1) | A portion of this may be recharacterized to return of capital and reflected as such on tax forms mailed to shareholders on or about January 31st following each calendar year. |
PIMCO RealPath™ Blend 2045 Fund | ||||||||||||||||||||||||||||||||||
Underlying PIMCO Funds | Market Value 06/30/2014 | Purchases at Cost | Proceeds from Sales | Net Realized Gain/(Loss) | Change in Unrealized Appreciation/ (Depreciation) | Market Value 06/30/2015 | Dividend Income (1) | Realized Net Capital Gain Distributions (1) | ||||||||||||||||||||||||||
PIMCO Emerging Local Bond Fund | $ | 0 | $ | 83 | $ | 0 | $ | 0 | $ | (5 | ) | $ | 78 | $ | 2 | $ | 0 | |||||||||||||||||
PIMCO High Yield Fund | 0 | 79 | 0 | 0 | 0 | 79 | 2 | 0 | ||||||||||||||||||||||||||
PIMCO Long Duration Total Return Fund | 0 | 259 | (16 | ) | 1 | (14 | ) | 230 | 4 | 0 | ||||||||||||||||||||||||
PIMCO Real Return Asset Fund | 0 | 167 | (7 | ) | 0 | (6 | ) | 154 | 1 | 0 | ||||||||||||||||||||||||
Totals | $ | 0 | $ | 588 | $ | (23 | ) | $ | 1 | $ | (25 | ) | $ | 541 | $ | 9 | $ | 0 |
† | A zero balance may reflect actual amounts rounding to less than one thousand. |
(1) | A portion of this may be recharacterized to return of capital and reflected as such on tax forms mailed to shareholders on or about January 31st following each calendar year. |
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PIMCO RealPath™ Blend 2050 Fund | ||||||||||||||||||||||||||||||||||
Underlying PIMCO Funds | Market Value 06/30/2014 | Purchases at Cost | Proceeds from Sales | Net Realized Gain/(Loss) | Change in Unrealized Appreciation/ (Depreciation) | Market Value 06/30/2015 | Dividend Income (1) | Realized Net Capital Gain Distributions (1) | ||||||||||||||||||||||||||
PIMCO Emerging Local Bond Fund | $ | 0 | $ | 82 | $ | 0 | $ | 0 | $ | (5 | ) | $ | 77 | $ | 2 | $ | 0 | |||||||||||||||||
PIMCO High Yield Fund | 0 | 77 | 0 | 0 | 0 | 77 | 2 | 0 | ||||||||||||||||||||||||||
PIMCO Long Duration Total Return Fund | 0 | 258 | (16 | ) | 1 | (14 | ) | 229 | 5 | 0 | ||||||||||||||||||||||||
PIMCO Real Return Asset Fund | 0 | 84 | (4 | ) | 0 | (3 | ) | 77 | 0 | 0 | ||||||||||||||||||||||||
Totals | $ | 0 | $ | 501 | $ | (20 | ) | $ | 1 | $ | (22 | ) | $ | 460 | $ | 9 | $ | 0 |
† | A zero balance may reflect actual amounts rounding to less than one thousand. |
(1) | A portion of this may be recharacterized to return of capital and reflected as such on tax forms mailed to shareholders on or about January 31st following each calendar year. |
PIMCO RealPath™ Blend 2055 Fund | ||||||||||||||||||||||||||||||||||
Underlying PIMCO Funds | Market Value 06/30/2014 | Purchases at Cost | Proceeds from Sales | Net Realized Gain/(Loss) | Change in Unrealized Appreciation/ (Depreciation) | Market Value 06/30/2015 | Dividend Income (1) | Realized Net Capital Gain Distributions (1) | ||||||||||||||||||||||||||
PIMCO Emerging Local Bond Fund | $ | 0 | $ | 84 | $ | 0 | $ | 0 | $ | (6 | ) | $ | 78 | $ | 2 | $ | 0 | |||||||||||||||||
PIMCO High Yield Fund | 0 | 79 | 0 | 0 | 0 | 79 | 2 | 0 | ||||||||||||||||||||||||||
PIMCO Long Duration Total Return Fund | 0 | 259 | (13 | ) | 1 | (14 | ) | 233 | 5 | 0 | ||||||||||||||||||||||||
PIMCO Real Return Asset Fund | 0 | 85 | (4 | ) | 0 | (3 | ) | 78 | 0 | 0 | ||||||||||||||||||||||||
Totals | $ | 0 | $ | 507 | $ | (17 | ) | $ | 1 | $ | (23 | ) | $ | 468 | $ | 9 | $ | 0 |
† | A zero balance may reflect actual amounts rounding to less than one thousand. |
(1) | A portion of this may be recharacterized to return of capital and reflected as such on tax forms mailed to shareholders on or about January 31st following each calendar year. |
PIMCO RealPath™ Blend Income Fund | ||||||||||||||||||||||||||||||||||
Underlying PIMCO Funds | Market Value 06/30/2014 | Purchases at Cost | Proceeds from Sales | Net Realized Gain/(Loss) | Change in Unrealized Appreciation/ (Depreciation) | Market Value 06/30/2015 | Dividend Income (1) | Realized Net Capital Gain Distributions (1) | ||||||||||||||||||||||||||
PIMCO Emerging Local Bond Fund | $ | 0 | $ | 83 | $ | (2 | ) | $ | 0 | $ | (5 | ) | $ | 76 | $ | 2 | $ | 0 | ||||||||||||||||
PIMCO Foreign Bond Fund (U.S. Dollar-Hedged) | 0 | 320 | (4 | ) | 0 | (7 | ) | 309 | 2 | 0 | ||||||||||||||||||||||||
PIMCO High Yield Fund | 0 | 78 | 0 | 0 | (1 | ) | 77 | 2 | 0 | |||||||||||||||||||||||||
PIMCO Long Duration Total Return Fund | 0 | 250 | (9 | ) | 1 | (14 | ) | 228 | 5 | 0 | ||||||||||||||||||||||||
PIMCO Real Return Fund | 0 | 475 | (6 | ) | 0 | (3 | ) | 466 | 2 | 0 | ||||||||||||||||||||||||
PIMCO Real Return Asset Fund | 0 | 245 | (8 | ) | 0 | (8 | ) | 229 | 1 | 0 | ||||||||||||||||||||||||
PIMCO Short-Term Floating NAV Portfolio III | 0 | 100 | 0 | 0 | 0 | 100 | 0 | 0 | ||||||||||||||||||||||||||
PIMCO Total Return Fund | 0 | 473 | (2 | ) | 0 | (4 | ) | 467 | 5 | 0 | ||||||||||||||||||||||||
Totals | $ | 0 | $ | 2,024 | $ | (31 | ) | $ | 1 | $ | (42 | ) | $ | 1,952 | $ | 19 | $ | 0 |
† | A zero balance may reflect actual amounts rounding to less than one thousand. |
(1) | A portion of this may be recharacterized to return of capital and reflected as such on tax forms mailed to shareholders on or about January 31st following each calendar year. |
5. FINANCIAL DERIVATIVE INSTRUMENTS
The following disclosures contain information on how and why the Funds use financial derivative instruments, the credit-risk-related contingent features in certain financial derivative instruments, and how financial derivative instruments affect the Funds’ financial positions, results of operations and cash flows. The location and fair value amounts of these instruments on the Statements of Assets and Liabilities and the realized and changes in unrealized gains and losses on the Statements of Operations, each categorized by type of financial derivative contract and related risk exposure, are included in a table in the Notes to Schedules of Investments. The financial derivative
instruments outstanding as of period end and the amounts of realized and changes in unrealized gains and losses on financial derivative instruments during the period, as disclosed in the Notes to Schedules of Investments, serve as indicators of the volume of financial derivative activity for the Funds.
(a) Options Contracts Certain Funds may write call and put options on securities and financial derivative instruments they own or in which they may invest. Writing put options tends to increase a Fund’s exposure to the underlying instrument. Writing call options tends to decrease a Fund’s exposure to the underlying instrument. When a Fund writes a call or put, an amount equal to the premium received is
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recorded as a liability and subsequently marked to market to reflect the current value of the option written. These liabilities are included on the Statements of Assets and Liabilities. Premiums received from writing options which expire are treated as realized gains. Premiums received from writing options which are exercised or closed are added to the proceeds or offset against amounts paid on the underlying futures, swap, security or currency transaction to determine the realized gain or loss. Certain options may be written with premiums to be determined on a future date. The premiums for these options are based upon implied volatility parameters at specified terms. A Fund as a writer of an option has no control over whether the underlying instrument may be sold (“call”) or purchased (“put”) and as a result bears the market risk of an unfavorable change in the price of the instrument underlying the written option. There is the risk a Fund may not be able to enter into a closing transaction because of an illiquid market.
Certain Funds may also purchase put and call options. Purchasing call options tends to increase a Fund’s exposure to the underlying instrument. Purchasing put options tends to decrease a Fund’s exposure to the underlying instrument. A Fund pays a premium which is included as an asset on the Statements of Assets and Liabilities and subsequently marked to market to reflect the current value of the option. Premiums paid for purchasing options which expire are treated as realized losses. Certain options may be purchased with premiums to be determined on a future date. The premiums for these options are based upon implied volatility parameters at specified terms. The risk associated with purchasing put and call options is limited to the premium paid. Premiums paid for purchasing options which are exercised or closed are added to the amounts paid or offset against the proceeds on the underlying investment transaction to determine the realized gain or loss when the underlying transaction is executed.
Options on Indices Certain Funds may write or purchase options on indices (“Index Option”). An Index Option uses a specified index as the underlying instrument for the option contract. A Fund may write or purchase options to enhance returns or to hedge an existing position or future investment. The exercise for an Index Option will not include physical delivery of the underlier but will result in a cash transfer of the amount of the difference between the settlement price of the underlier and the strike price.
(b) Swap Agreements Certain Funds may invest in swap agreements. Swap agreements are bilaterally negotiated agreements between a Fund and a counterparty to exchange or swap investment cash flows, assets, foreign currencies or market-linked returns at specified, future intervals. Swap agreements may be privately negotiated in the over the counter market (“OTC swaps”) or may be cleared through a third party, known as a central counterparty or derivatives clearing organization (“centrally cleared swaps”). A Fund may enter into asset, credit default,
cross-currency, interest rate, total return, variance and other forms of swap agreements to manage its exposure to credit, currency, interest rate, commodity, equity and inflation risk. In connection with these agreements, securities or cash may be identified as collateral or margin in accordance with the terms of the respective swap agreements to provide assets of value and recourse in the event of default or bankruptcy/insolvency.
Swaps are marked to market daily based upon valuations as determined from the underlying contract or in accordance with the requirements of the central counterparty or derivatives clearing organization. Changes in market value, if any, are reflected as a component of net change in unrealized appreciation/(depreciation) on the Statements of Operations. Daily changes in valuation of centrally cleared swaps, if any, are recorded as a variation margin on the Statements of Assets and Liabilities. OTC swap payments received or paid at the beginning of the measurement period are included on the Statements of Assets and Liabilities and represent premiums paid or received upon entering into the swap agreement to compensate for differences between the stated terms of the swap agreement and prevailing market conditions (credit spreads, currency exchange rates, interest rates, and other relevant factors). Upfront premiums received (paid) are initially recorded as liabilities (assets) and subsequently marked to market to reflect the current value of the swap. These upfront premiums are recorded as realized gains or losses on the Statements of Operations upon termination or maturity of the swap. A liquidation payment received or made at the termination of the swap is recorded as realized gain or loss on the Statements of Operations. Net periodic payments received or paid by a Fund are included as part of realized gains or losses on the Statements of Operations.
Entering into these agreements involves, to varying degrees, elements of interest, credit, market and documentation risk in excess of the amounts recognized on the Statements of Assets and Liabilities. Such risks involve the possibility that there will be no liquid market for these agreements, that the counterparty to the agreements may default on its obligation to perform or disagree as to the meaning of contractual terms in the agreements and that there may be unfavorable changes in interest rates.
A Fund’s maximum risk of loss from counterparty credit risk is the discounted net value of the cash flows to be received from the counterparty over the contract’s remaining life, to the extent that amount is positive. The risk is mitigated by having a master netting arrangement between a Fund and the counterparty and by the posting of collateral to a Fund to cover a Fund’s exposure to the counterparty.
Total Return Swap Agreements Certain Funds may enter into total return swap agreements to gain or mitigate exposure to the underlying
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reference. Total return swap agreements involve commitments where single or multiple cash flows are exchanged based on the price of an underlying reference and on a fixed or variable interest rate. Total return swap agreements may involve commitments to pay interest in exchange for a market-linked return. One counterparty pays out the total return of a specific reference asset, which may include an underlying equity, index, or bond, and in return receives a fixed or variable rate. At the maturity date, a net cash flow is exchanged where the total return is equivalent to the return of the underlying reference less a financing rate, if any. As a receiver, a Fund would receive payments based on any positive total return and would owe payments in the event of a negative total return. As the payer, a Fund would owe payments on any net positive total return, and would receive payments in the event of a negative total return.
6. PRINCIPAL RISKS
In the normal course of business, the Funds (or Acquired Funds) trade financial instruments and enter into financial transactions where risk of potential loss exists due to such things as changes in the market (market risk) or failure or inability of the other party to a transaction to perform (credit and counterparty risk). See below for a detailed description of select principal risks. For a more comprehensive list of potential risks the Funds may be subject to, please see the Important Information About the Funds.
Investments in Mutual Funds To the extent that certain Funds invest substantially all of their respective assets in Acquired Funds, the risks associated with investing in these Funds will be closely related to the risks associated with the securities and other investments held by the Acquired Funds. The ability of the Funds to achieve their respective investment objectives may depend upon the ability of the Acquired Funds to achieve their respective investment objectives. There can be no assurance that the investment objective of any Acquired Fund will be achieved. The net asset value of each Fund will fluctuate in response to changes in the respective net asset values of the Acquired Funds in which it invests. The extent to which the investment performance and risks associated with the Funds correlate to those of a particular Acquired Fund will depend upon the extent to which the assets of the Funds are allocated from time to time for investment in the Acquired Funds, which will vary.
Investing in Acquired Funds involves certain additional expenses and tax results that would not be present in a direct investment in the Acquired Funds.
Certain Funds’ investment performance depends upon how each Fund’s assets are allocated and reallocated according to each Fund’s asset allocation targets and ranges. A principal risk of investing in each Fund is that the Funds’ asset allocation sub-adviser will make less than
optimal or poor asset allocation decisions. The asset allocation sub-adviser attempts to identify investment allocations for the Acquired Funds that will provide consistent, quality performance for the Funds, but there is no guarantee that such allocation techniques will produce the desired results.
Market Risks A Fund’s (or Acquired Funds’) investments in financial derivatives and other financial instruments expose the Fund to various risks such as, but not limited to, equity, interest rate, foreign currency and commodity risks.
The market values of equities, such as common stocks and preferred securities or equity related investments such as futures and options, have historically risen and fallen in periodic cycles and may decline due to general market conditions which are not specifically related to a particular company, such as real or perceived adverse economic conditions, changes in the general outlook for corporate earnings, changes in interest or currency rates or adverse investor sentiment generally. They may also decline due to factors which affect a particular industry or industries, such as labor shortages or increased production costs and competitive conditions within an industry. Different types of equity securities may react differently to these developments. Equity securities and equity related investments generally have greater market price volatility than fixed income securities.
Interest rate risk is the risk that fixed income securities will decline in value because of an increase in interest rates. As nominal interest rates rise, the value of certain fixed income securities held by a Fund (or Acquired Funds) is likely to decrease. A nominal interest rate can be described as the sum of a real interest rate and an expected inflation rate. Interest rate changes can be sudden and unpredictable, and a Fund (or Acquired Funds) may lose money if these changes are not anticipated by Fund (or Acquired Funds) management. A Fund (or Acquired Funds) may not be able to hedge against changes in interest rates or may choose not to do so for cost or other reasons. In addition, any hedges may not work as intended.
Fixed income securities with longer durations tend to be more sensitive to changes in interest rates, usually making them more volatile than securities with shorter durations. Duration is useful primarily as a measure of the sensitivity of a fixed income security’s market price to interest rate (i.e., yield) movements. A wide variety of factors can cause interest rates to rise (e.g., central bank monetary policies, inflation rates, general economic conditions). At present, the U.S. is experiencing historically low interest rates. This, combined with recent economic recovery and the end of the Fed’s quantitative easing program in October 2014, may increase the probability of an upward interest rate environment in the near future. Further, while U.S. bond markets have steadily grown over the past three decades, dealer “market making” ability has remained relatively stagnant.
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Given the importance of intermediary “market making” in creating a robust and active market, fixed income securities are currently facing increased volatility and liquidity risks. All of these factors, collectively and/or individually, could cause a Fund (or Acquired Funds) to lose value. If a Fund (or Acquired Funds) lost enough value, the Fund (or Acquired Funds) could face increased redemptions by shareholders, which could further impair its performance.
Certain Funds (or Acquired Funds) may invest in securities and instruments that are economically tied to Russia. Investments in Russia are subject to various risks such as, but not limited to political, economic, legal, market and currency risks. The risks include uncertain political and economic policies, short-term market volatility, poor accounting standards, corruption and crime, an inadequate regulatory system, and unpredictable taxation. Investments in Russia are particularly subject to the risk that further economic sanctions may be imposed by the United States and/or other countries. Such sanctions—which may impact companies in many sectors, including energy, financial services and defense, among others—may negatively impact a Fund’s (or Acquired Funds’) performance and/or ability to achieve its investment objective. The Russian securities market is characterized by limited volume of trading, resulting in difficulty in obtaining accurate prices. The Russian securities market, as compared to U.S. markets, has significant price volatility, less liquidity, a smaller market capitalization and a smaller number of traded securities. There may be little publicly available information about issuers. Settlement, clearing and registration of securities transactions are subject to risks because of registration systems that may not be subject to effective government supervision. This may result in significant delays or problems in registering the transfer of securities. Russian securities laws may not recognize foreign nominee accounts held with a custodian bank, and therefore the custodian may be considered the ultimate owner of securities they hold for their clients. Ownership of securities issued by Russian companies is recorded by companies themselves and by registrars instead of through a central registration system. It is possible that the ownership rights of certain Funds (or Acquired Funds) could be lost through fraud or negligence. While applicable Russian regulations impose liability on registrars for losses resulting from their errors, it may be difficult for certain Funds (or Acquired Funds) to enforce any rights it may have against the registrar or issuer of the securities in the event of loss of share registration. Adverse currency exchange rates are a risk and there may be a lack of available currency hedging instruments. Investments in Russia may be subject to the risk of nationalization or expropriation of assets. Oil, natural gas, metals, and timber account for a significant portion of Russia’s exports, leaving the country vulnerable to swings in world prices.
If a Fund (or Acquired Funds) invests directly in foreign (non-U.S.) currencies or in securities that trade in, and receive revenues in, foreign
(non-U.S.) currencies, or in financial derivatives that provide exposure to foreign (non-U.S.) currencies, it will be subject to the risk that those currencies will decline in value relative to the base currency of the Fund (or Acquired Funds), or, in the case of hedging positions, that the Fund’s (or Acquired Funds’) base currency will decline in value relative to the currency being hedged. Currency rates in foreign countries may fluctuate significantly over short periods of time for a number of reasons, including changes in interest rates, intervention (or the failure to intervene) by U.S. or foreign governments, central banks or supranational entities such as the International Monetary Fund, or by the imposition of currency controls or other political developments in the United States or abroad. As a result, a Fund’s (or Acquired Funds’) investments in foreign currency-denominated securities may reduce the returns of the Fund (or Acquired Funds).
A Fund’s (or Acquired Funds’) investments in commodity-linked financial derivative instruments may subject the Fund (or Acquired Funds) to greater market price volatility than investments in traditional securities. The value of commodity-linked financial derivative instruments may be affected by changes in overall market movements, commodity index volatility, changes in interest rates, or factors affecting a particular industry or commodity, such as drought, floods, weather, livestock disease, embargoes, tariffs and international economic, political and regulatory developments.
Credit and Counterparty Risks A Fund (or Acquired Funds) will be exposed to credit risk to parties with whom it trades and will also bear the risk of settlement default. A Fund (or Acquired Funds) minimizes concentrations of credit risk by undertaking transactions with a large number of customers and counterparties on recognized and reputable exchanges where applicable. For derivatives traded on exchanges, the primary credit risk is the creditworthiness of a Fund’s clearing broker or the exchange itself. A Fund (or Acquired Funds) could lose money if the issuer or guarantor of a fixed income security, or the counterparty to a financial derivatives contract, repurchase agreement or a loan of portfolio securities, is unable or unwilling to make timely principal and/or interest payments, or to otherwise honor its obligations. Securities are subject to varying degrees of credit risk, which are often reflected in credit ratings.
Similar to credit risk, a Fund (or Acquired Funds) may be exposed to counterparty risk, or the risk that an institution or other entity with which the Fund (or Acquired Funds) has unsettled or open transactions will default. PIMCO, as the Adviser, minimizes counterparty risks to the Funds (or Acquired Funds) through a number of ways. Prior to entering into transactions with a new counterparty, the PIMCO Counterparty Risk Committee conducts an extensive credit review of such counterparty and must approve the use of such counterparty. Furthermore, pursuant to the terms of the underlying contract, to the
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extent that unpaid amounts owed to a Fund (or Acquired Funds) exceed a predetermined threshold, such counterparty shall advance collateral to the Fund (or Acquired Funds) in the form of cash or securities equal in value to the unpaid amount owed to the Fund (or Acquired Funds). A Fund (or Acquired Funds) may invest such collateral in securities or other instruments and will typically pay interest to the counterparty on the collateral received. If the unpaid amount owed to a Fund (or Acquired Funds) subsequently decreases, the Fund (or Acquired Funds) would be required to return to the counterparty all or a portion of the collateral previously advanced.
All transactions in listed securities are settled/paid for upon delivery using approved counterparties. The risk of default is considered minimal, as delivery of securities sold is only made once a Fund (or Acquired Funds) has received payment. Payment is made on a purchase once the securities have been delivered by the counterparty. The trade will fail if either party fails to meet its obligation.
Master Netting Arrangements A Fund may be subject to various netting arrangements with select counterparties (“Master Agreements”). Master Agreements govern the terms of certain transactions, and reduce the counterparty risk associated with relevant transactions by specifying credit protection mechanisms and providing standardization that improves legal certainty. Each type of Master Agreement governs certain types of transactions. Different types of transactions may be traded out of different legal entities or affiliates of a particular organization, resulting in the need for multiple agreements with a single counterparty. As the Master Agreements are specific to unique operations of different asset types, they allow a Fund to close out and net its total exposure to a counterparty in the event of a default with respect to all the transactions governed under a single Master Agreement with a counterparty. For financial reporting purposes the Statements of Assets and Liabilities generally show derivative assets and liabilities on a gross basis, which reflects the full risks and exposures prior to netting.
Master Agreements can also help limit counterparty risk by specifying collateral posting arrangements at pre-arranged exposure levels. Under the Master Agreements, collateral is routinely transferred if the total net exposure to certain transactions (net of existing collateral already in place) governed under the relevant Master Agreement with a counterparty in a given account exceeds a specified threshold, which typically ranges from zero to $250,000 depending on the counterparty and the type of Master Agreement. United States Treasury Bills and U.S. dollar cash are generally the preferred forms of collateral, although other forms of AAA rated paper or sovereign securities may be used. Securities and cash pledged as collateral are reflected as assets on the Statements of Assets and Liabilities as either a component of Investments at value (securities) or Deposits due from Counterparties
(cash). Cash collateral received is not typically held in a segregated account and as such is reflected as a liability on the Statements of Assets and Liabilities as Deposits due to Counterparties. The market value of any securities received as collateral is not reflected as a component of NAV. A Fund’s overall exposure to counterparty risk can change substantially within a short period, as it is affected by each transaction subject to the relevant Master Agreement.
Master Repurchase Agreements and Global Master Repurchase Agreements (individually and collectively “Master Repo Agreements”) govern repurchase, reverse repurchase, and sale-buyback transactions between a Fund and select counterparties. Master Repo Agreements maintain provisions for, among other things, initiation, income payments, events of default, and maintenance of collateral. The market value of transactions under the Master Repo Agreement, collateral pledged or received, and the net exposure by counterparty as of period end are disclosed in the Notes to Schedule of Investments.
Master Securities Forward Transaction Agreements (“Master Forward Agreements”) govern certain forward settling transactions, such as To-Be-Announced securities, delayed-delivery or sale-buyback transactions by and between a Fund and select counterparties. The Master Forward Agreements maintain provisions for, among other things, initiation and confirmation, payment and transfer, events of default, termination, and maintenance of collateral. The market value of forward settling transactions, collateral pledged or received, and the net exposure by counterparty as of period end is disclosed in the Notes to Schedule of Investments.
Customer Account Agreements and related addendums govern cleared derivatives transactions such as futures, options on futures, and cleared Over the Counter (“OTC”) derivatives. Such transactions require posting of initial margin as determined by each relevant clearing agency which is segregated at a broker account registered with the Commodity Futures Trading Commission (“CFTC”), or the applicable regulator. In the United States, counterparty risk is significantly reduced as creditors of a futures broker cannot have a claim to Fund assets in the segregated account. Additionally, portability of exposure in the event of a default scenario further reduces risk to the Funds. Variation margin, or changes in market value, are exchanged daily, but may not be netted between futures and cleared OTC derivatives. The market value or accumulated unrealized appreciation or depreciation, initial margin posted, and any unsettled variation margin as of period end is disclosed in the Notes to Schedule of Investments.
International Swaps and Derivatives Association, Inc. Master Agreements and Credit Support Annexes (“ISDA Master Agreements”) govern OTC derivative transactions entered into by a Fund with select counterparties. ISDA Master Agreements maintain provisions for
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general obligations, representations, agreements, collateral and events of default or termination. Events of termination include conditions that may entitle counterparties to elect to terminate early and cause settlement of all outstanding transactions under the applicable ISDA Master Agreement. Any election to terminate early could be material to the financial statements. In limited circumstances, the ISDA Master Agreement may contain additional provisions that add counterparty
protection beyond coverage of existing daily exposure if the counterparty has a decline in credit quality below a predefined level. These amounts, if any, may be segregated with a third-party custodian. The market value of OTC financial derivative instruments, collateral received or pledged, and net exposure by counterparty as of period end are disclosed in the Notes to Schedule of Investments.
7. FEES AND EXPENSES
(a) Investment Advisory Fee PIMCO is a majority-owned subsidiary of Allianz Asset Management of America L.P. (“Allianz Asset Management”) and serves as the Adviser to the Trust, pursuant to an investment advisory contract. The Adviser receives a monthly fee from each Fund at an annual rate based on average daily net assets (the “Investment Advisory Fee”). The Investment Advisory Fee for all classes is charged at an annual rate as noted in the table below.
(b) Supervisory and Administrative Fee PIMCO serves as administrator (the “Administrator”) and provides supervisory and administrative services to the Trust for which it receives a monthly supervisory and administrative fee based on each share class’s average daily net assets (the “Supervisory and Administrative Fee”). As the Administrator, PIMCO bears the costs of various third-party services, including audit, custodial, portfolio accounting, legal, transfer agency and printing costs.
The Investment Advisory and Supervisory and Administrative Fees for all classes are charged at an annual rate as noted in the following table:
Investment Advisory Fee | Supervisory and Administrative Fee | |||||||||||||||||||
Fund Name | All Classes | Institutional Class | Administrative Class | Class A | ||||||||||||||||
PIMCO RealPath™ Blend 2020 Fund | 0.01 | % | 0.02 | % | 0.02 | % | 0.27 | % | ||||||||||||
PIMCO RealPath™ Blend 2025 Fund | 0.01 | % | 0.02 | % | 0.02 | % | 0.27 | % | ||||||||||||
PIMCO RealPath™ Blend 2030 Fund | 0.02 | % | 0.02 | % | 0.02 | % | 0.27 | % | ||||||||||||
PIMCO RealPath™ Blend 2035 Fund | 0.03 | % | 0.02 | % | 0.02 | % | 0.27 | % | ||||||||||||
PIMCO RealPath™ Blend 2040 Fund | 0.03 | % | 0.02 | % | 0.02 | % | 0.27 | % | ||||||||||||
PIMCO RealPath™ Blend 2045 Fund | 0.03 | % | 0.02 | % | 0.02 | % | 0.27 | % | ||||||||||||
PIMCO RealPath™ Blend 2050 Fund | 0.03 | % | 0.02 | % | 0.02 | % | 0.27 | % | ||||||||||||
PIMCO RealPath™ Blend 2055 Fund | 0.03 | % | 0.02 | % | 0.02 | % | 0.27 | % | ||||||||||||
PIMCO RealPath™ Blend Income Fund | 0.01 | % | 0.02 | % | 0.02 | % | 0.27 | % |
(c) Distribution and Servicing Fees PIMCO Investments LLC (“PI”), a wholly-owned subsidiary of PIMCO, serves as the distributor (“Distributor”) of the Trust’s shares.
The Trust has adopted separate Distribution and Servicing Plans with respect to the Class A, Class C and Class R shares of the Trust pursuant to Rule 12b-1 under the Act. In connection with the distribution of Class C and Class R shares of the Trust, the Distributor receives distribution fees from the Trust of up to 0.75% for Class C shares and 0.25% for Class R shares, and in connection with personal services rendered to Class A, Class C and Class R shareholders and the
maintenance of such shareholder accounts, the Distributor receives servicing fees from the Trust of up to 0.25% for each of Class A, Class C and Class R shares (percentages reflect annual rates of the average daily net assets attributable to the applicable class).
The Trust has adopted a Distribution and Servicing Plan with respect to the Class D shares of each Fund pursuant to Rule 12b-1 under the Act
(the “Class D Plan”). Under the terms of the Class D Plan, a Fund is permitted to compensate the Distributor out of the assets attributable to the Class D shares of the Fund, in an amount up to 0.25% on an annual basis of the average daily net assets of the Fund’s Class D shares for providing, or procuring through financial intermediaries, distribution, shareholder services, and/or maintenance of shareholder accounts with respect to Class D shareholders of the Fund, some of which may be deemed to be primarily intended to result in the sale of Class D shares.
The Trust has adopted a Distribution and Servicing Plan with respect to the Administrative Class shares of each Fund pursuant to Rule 12b-1 under the Act (the “Administrative Class Plan”). Under the terms of the Administrative Class Plan, a Fund may compensate the Distributor for providing, or procuring through financial intermediaries, distribution, administrative, recordkeeping, shareholder and/or related services with respect to Administrative Class shares. The Administrative Class Plan
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permits a Fund to make total payments at an annual rate of up to 0.25% of the average daily net assets attributable to the Administrative Class shares.
The Trust paid distribution and servicing fees at effective rates as set forth in the following table (calculated as a percentage of each Fund’s average daily net assets attributable to each class):
Distribution Fee | Servicing Fee | |||||||||
Administrative Class | — | 0.25% | ||||||||
Class A | — | 0.25% |
The Distributor also received the proceeds of the initial sales charges paid by the shareholders upon the purchase of Class A shares and the contingent deferred sales charges paid by the shareholders upon certain redemptions of Class A and Class C shares. For the period ended June 30, 2015, the Distributor retained $360,600 representing commissions (sales charges) and contingent deferred sales charges from the Trust.
(d) Fund Expenses PIMCO provides or procures supervisory and administrative services for shareholders and also bears the costs of various third-party services required by the Funds, including audit, custodial, portfolio accounting, legal, transfer agency and printing costs. The Trust is responsible for the following expenses: (i) taxes and governmental fees; (ii) brokerage fees and commissions and other portfolio transaction expenses; (iii) the costs of borrowing money, including interest expense; (iv) fees and expenses of the Trustees who are not “interested persons” of PIMCO or the Trust, and any counsel retained exclusively for their benefit; (v) extraordinary expense, including costs of litigation and indemnification expenses; (vi) organizational expenses; and (vii) any expenses allocated or allocable to a specific class of shares, which include service fees payable with respect to the Administrative Class Shares, and may include certain other expenses as permitted by the Trust’s Multi-Class Plan adopted pursuant to Rule 18f-3 under the Act and subject to review and approval by the Trustees. The ratio of expenses to average net assets per share class, as disclosed on the Financial Highlights, may differ from the annual fund operating expenses per share class as disclosed in the Prospectus for the reasons set forth above.
Each unaffiliated Trustee receives an annual retainer of $62,000, plus $6,250 for each Board meeting attended in person, $375 ($750 in the case of the audit committee chair with respect to audit committee meetings) for each committee meeting attended, plus reimbursement of related expenses. In addition, the audit committee chair receives an additional annual retainer of $9,000, the valuation oversight committee lead receives an additional annual retainer of $2,000 (to the extent there are co-leads of the valuation oversight committee, the annual retainer will be split evenly between the co-leads) and the governance committee chair receives an additional annual retainer of $750.
These expenses are allocated on a pro rata basis to each Fund of the Trust according to its respective net assets. The Trust pays no compensation directly to any Trustee or any other officer who is affiliated with the Administrator, all of whom receive remuneration for their services to the Trust from the Administrator or its affiliates.
(e) Expense Limitation PIMCO has agreed to waive a portion of the Funds’ Supervisory and Administrative Fees in each Fund’s first fiscal year, to the extent that the payment of each Fund’s pro rata share of organizational expenses and Trustee Fees cause the actual expense ratio to rise above the rates disclosed in the then-current prospectus plus 0.0049% (calculated as a percentage of each Fund’s average daily net assets attributable to each class).
PIMCO may be reimbursed for these waived amounts in future periods, not to exceed thirty-six months after the waiver. Expenses that have been waived may still be reimbursed by the Administrator, to the extent the Fund’s annualized total portfolio operating expenses plus the amount reimbursed does not exceed the operating expense limitation. The recoverable amounts to PIMCO at June 30, 2015, were as follows (amounts in thousands):
Fund Name | Recoverable Amounts | |||||
PIMCO RealPath™ Blend 2020 Fund | $ | 17 | ||||
PIMCO RealPath™ Blend 2025 Fund | 17 | |||||
PIMCO RealPath™ Blend 2030 Fund | 17 | |||||
PIMCO RealPath™ Blend 2035 Fund | 17 | |||||
PIMCO RealPath™ Blend 2040 Fund | 17 | |||||
PIMCO RealPath™ Blend 2045 Fund | 17 | |||||
PIMCO RealPath™ Blend 2050 Fund | 17 | |||||
PIMCO RealPath™ Blend 2055 Fund | 17 | |||||
PIMCO RealPath™ Blend Income Fund | 17 |
(f) Acquired Fund Fees and Expenses The Underlying PIMCO Fund expenses for the Funds are based upon an allocation of a Fund’s assets among the Underlying PIMCO Funds and upon the total annual operating expenses of the Institutional Class or Class M shares, as applicable of these Underlying PIMCO Funds. Underlying PIMCO Fund expenses will vary with changes in the expenses of the Underlying PIMCO Funds, as well as the allocation of a Fund’s assets.
The expenses associated with investing in a fund of funds are generally higher than those for mutual funds that do not invest in other mutual funds. The cost of investing in a fund of funds will generally be higher than the cost of investing in a mutual fund that invests directly in individual stocks and bonds. By investing in a fund of funds, an investor will indirectly bear fees and expenses charged by Acquired Funds in addition to each Fund’s direct fees and expenses. In addition, the use of a fund of funds structure could affect the timing, amount and character of distributions to the shareholders and may therefore increase the amount of taxes payable by shareholders.
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8. RELATED PARTY TRANSACTIONS
The Adviser, Administrator, and Distributor are related parties. Fees payable to these parties are disclosed in Note 7 and the accrued related party fee amounts are disclosed on the Statements of Assets and Liabilities.
9. GUARANTEES AND INDEMNIFICATIONS
Under the Trust’s organizational documents, each Trustee or officer, of the Trust is indemnified and each employee or other agent of the Trust (including the Trust’s investment manager) may be indemnified, to the extent permitted by the Act, against certain liabilities that may arise out of performance of their duties to the Funds. Additionally, in the normal course of business, the Funds enter into contracts that contain a variety of indemnification clauses. The Funds’ maximum exposure under these arrangements is unknown as this would involve future claims that may be made against the Funds that have not yet occurred. However, the Funds have not had prior claims or losses pursuant to these contracts.
10. PURCHASES AND SALES OF SECURITIES
The length of time a Fund has held a particular security is not generally a consideration in investment decisions. A change in the securities held by a Fund is known as “portfolio turnover.” Each Fund may engage in frequent and active trading of portfolio securities to achieve its investment objective, particularly during periods of volatile market movements. High portfolio turnover involves correspondingly greater expenses to a Fund, including brokerage commissions or dealer mark-ups and other transaction costs on the sale of securities and reinvestments in other securities. Such sales may also result in realization of taxable capital gains, including short-term capital gains (which are generally taxed at ordinary income tax rates). The trading costs and tax effects associated with portfolio turnover may adversely affect a Fund’s performance. The portfolio turnover rates are reported in the Financial Highlights.
Purchases and sales of securities (excluding short-term investments) for the period ended June 30, 2015, were as follows (amounts in thousands†):
U.S. Government/Agency | All Other | |||||||||||||||||
Fund Name | Purchases | Sales | Purchases | Sales | ||||||||||||||
PIMCO RealPath™ Blend 2020 Fund | $ | 0 | $ | 0 | $ | 3,115 | $ | 144 | ||||||||||
PIMCO RealPath™ Blend 2025 Fund | 0 | 0 | 3,145 | 152 | ||||||||||||||
PIMCO RealPath™ Blend 2030 Fund | 0 | 0 | 3,148 | 171 | ||||||||||||||
PIMCO RealPath™ Blend 2035 Fund | 0 | 0 | 3,164 | 172 | ||||||||||||||
PIMCO RealPath™ Blend 2040 Fund | 0 | 0 | 3,154 | 175 | ||||||||||||||
PIMCO RealPath™ Blend 2045 Fund | 0 | 0 | 3,171 | 167 | ||||||||||||||
PIMCO RealPath™ Blend 2050 Fund | 0 | 0 | 3,152 | 170 | ||||||||||||||
PIMCO RealPath™ Blend 2055 Fund | 0 | 0 | 3,185 | 155 | ||||||||||||||
PIMCO RealPath™ Blend Income Fund | 0 | 0 | 2,985 | 109 | ||||||||||||||
† | A zero balance may reflect actual amounts rounding to less than one thousand. |
11. SHARES OF BENEFICIAL INTEREST
The Trust may issue an unlimited number of shares of beneficial interest with a $0.0001 par value. Changes in shares of beneficial interest were as follows (shares and amounts in thousands†):
PIMCO RealPath™ Blend | PIMCO RealPath™ Blend | PIMCO RealPath™ Blend | PIMCO RealPath™ Blend | |||||||||||||||||||||||||||||||||||||
Period From 12/31/2014 to 06/30/2015 | Period From 12/31/2014 to 06/30/2015 | Period From 12/31/2014 to 06/30/2015 | Period From 12/31/2014 to 06/30/2015 | |||||||||||||||||||||||||||||||||||||
Shares | Amount | Shares | Amount | Shares | Amount | Shares | Amount | |||||||||||||||||||||||||||||||||
Receipts for shares sold | ||||||||||||||||||||||||||||||||||||||||
Institutional Class | 300 | $ | 3,000 | 302 | $ | 3013 | 300 | $ | 3,000 | 301 | $ | 3,000 | ||||||||||||||||||||||||||||
Administrative Class | 1 | 10 | 1 | 15 | 1 | 10 | 1 | 10 | ||||||||||||||||||||||||||||||||
Class A | 1 | 10 | 1 | 11 | 1 | 10 | 2 | 23 | ||||||||||||||||||||||||||||||||
Issued as reinvestment of distributions | ||||||||||||||||||||||||||||||||||||||||
Institutional Class | 1 | 15 | 1 | 15 | 1 | 15 | 1 | 15 | ||||||||||||||||||||||||||||||||
Administrative Class | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||||||||||||||
Class A | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||||||||||||||
Cost of shares redeemed | ||||||||||||||||||||||||||||||||||||||||
Institutional Class | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||||||||||||||
Administrative Class | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||||||||||||||
Class A | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||||||||||||||
Net increase (decrease) resulting from Fund | 303 | $ | 3,035 | 305 | $ | 3,054 | 303 | $ | 3,035 | 305 | $ | 3,048 |
70 | PIMCO EQUITY SERIES |
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June 30, 2015
PIMCO RealPath™ Blend | PIMCO RealPath™ Blend | PIMCO RealPath™ Blend | PIMCO RealPath™ Blend | PIMCO RealPath™ Blend Income Fund (9) | ||||||||||||||||||||||||||||||||||||||||||||||
Period From 12/31/2014 to 06/30/2015 | Period From 12/31/2014 to 06/30/2015 | Period From 12/31/2014 to 06/30/2015 | Period From 12/31/2014 to 06/30/2015 | Period From 12/31/2014 to 06/30/2015 | ||||||||||||||||||||||||||||||||||||||||||||||
Shares | Amount | Shares | Amount | Shares | Amount | Shares | Amount | Shares | Amount | |||||||||||||||||||||||||||||||||||||||||
Receipts for shares sold | ||||||||||||||||||||||||||||||||||||||||||||||||||
Institutional Class | 301 | $ | 3,000 | 300 | $ | 3,000 | 301 | $ | 3,001 | 300 | $ | 3,001 | 304 | $ | 3,037 | |||||||||||||||||||||||||||||||||||
Administrative Class | 1 | 12 | 4 | 40 | 1 | 14 | 1 | 11 | 2 | 14 | ||||||||||||||||||||||||||||||||||||||||
Class A | 1 | 11 | 1 | 10 | 1 | 15 | 7 | 67 | 7 | 74 | ||||||||||||||||||||||||||||||||||||||||
Issued as reinvestment of distributions | ||||||||||||||||||||||||||||||||||||||||||||||||||
Institutional Class | 1 | 15 | 1 | 15 | 1 | 15 | 1 | 15 | 1 | 15 | ||||||||||||||||||||||||||||||||||||||||
Administrative Class | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||||||||||||||||||||||
Class A | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||||||||||||||||||||||
Cost of shares redeemed | ||||||||||||||||||||||||||||||||||||||||||||||||||
Institutional Class | 0 | 0 | 0 | 0 | 0 | (1 | ) | 0 | 0 | 0 | 0 | |||||||||||||||||||||||||||||||||||||||
Administrative Class | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||||||||||||||||||||||
Class A | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||||||||||||||||||||||
Net increase (decrease) resulting from Fund share transactions | 304 | $ | 3,038 | 306 | $ | 3,065 | 304 | $ | 3,044 | 309 | $ | 3,094 | 314 | $ | 3,140 |
† | A zero balance may reflect actual amounts rounding to less than one thousand. |
(1) | As of June 30, 2015, one shareholder owned 10% or more of the Fund’s total outstanding shares comprising 99% of the Fund, and the shareholder is a related party of the Fund.* |
(2) | As of June 30, 2015, one shareholder owned 10% or more of the Fund’s total outstanding shares comprising 99% of the Fund, and the shareholder is a related party of the Fund.* |
(3) | As of June 30, 2015, one shareholder owned 10% or more of the Fund’s total outstanding shares comprising 99% of the Fund, and the shareholder is a related party of the Fund.* |
(4) | As of June 30, 2015, one shareholder owned 10% or more of the Fund’s total outstanding shares comprising 99% of the Fund, and the shareholder is a related party of the Fund.* |
(5) | As of June 30, 2015, one shareholder owned 10% or more of the Fund’s total outstanding shares comprising 99% of the Fund, and the shareholder is a related party of the Fund.* |
(6) | As of June 30, 2015, one shareholder owned 10% or more of the Fund’s total outstanding shares comprising 98% of the Fund, and the shareholder is a related party of the Fund.* |
(7) | As of June 30, 2015, one shareholder owned 10% or more of the Fund’s total outstanding shares comprising 99% of the Fund, and the shareholder is a related party of the Fund.* |
(8) | As of June 30, 2015, one shareholder owned 10% or more of the Fund’s total outstanding shares comprising 98% of the Fund, and the shareholder is a related party of the Fund.* |
(9) | As of June 30, 2015, one shareholder owned 10% or more of the Fund’s total outstanding shares comprising 96% of the Fund, and the shareholder is a related party of the Fund.* |
* | Related parties may include, but are not limited to, the investment manager and its affiliates, affiliated broker dealers, fund of funds and directors or employees of the Trust or Adviser. |
12. REGULATORY AND LITIGATION MATTERS
The Trust is not named as a defendant in any material litigation or arbitration proceedings and are not aware of any material litigation or claim pending or threatened against it.
PIMCO has received a Wells Notice from the staff of the U.S. Securities and Exchange Commission (“SEC”) that relates to the PIMCO Total Return Active Exchange-Traded Fund (“BOND”), a series of PIMCO ETF Trust. The notice indicates the staff’s preliminary determination to recommend that the SEC commence a civil action against PIMCO stemming from a nonpublic investigation relating to BOND. A Wells Notice is neither a formal allegation of wrongdoing nor a finding that any law was violated.
This matter principally pertains to the valuation of smaller sized positions in non-agency mortgage-backed securities purchased by BOND between its inception on February 29, 2012 and June 30, 2012, BOND’s performance disclosures for that period, and PIMCO’s compliance policies and procedures related to these matters.
The Wells process provides PIMCO with its opportunity to demonstrate to the SEC staff why it believes its conduct was appropriate, in keeping with industry standards, and that no action should be taken. PIMCO believes that this matter is unlikely to have a material adverse effect on any Fund or on PIMCO’s ability to provide investment management services to any Fund.
The foregoing speaks only as of the date of this report.
13. FEDERAL INCOME TAX MATTERS
Each Fund intends to qualify as a regulated investment company under Subchapter M of the Internal Revenue Code (the “Code”) and distribute all of its taxable income and net realized gains, if applicable, to shareholders. Accordingly, no provision for Federal income taxes has been made.
ANNUAL REPORT | JUNE 30, 2015 | 71 |
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Notes to Financial Statements (Cont.)
The Funds may be subject to local withholding taxes, including those imposed on realized capital gains. Any applicable foreign capital gains tax is accrued daily based upon net unrealized gains, and may be payable following the sale of any applicable investments.
In accordance with U.S. GAAP, the Adviser has reviewed the Funds’ tax positions for all open tax years. As of June 30, 2015, the Funds have recorded no liability for net unrecognized tax benefits relating to uncertain income tax positions they have taken or expect to take in future tax returns.
The Funds file U.S. tax returns. While the statute of limitations remains open to examine the Funds’ U.S. tax returns filed for the fiscal years ending in 2012-2014, no examinations are in progress or anticipated at this time. The Funds are not aware of any tax positions for which it is reasonably possible that the total amounts of unrecognized tax benefits will significantly change in the next twelve months.
As of June 30, 2015, the components of distributable taxable earnings are as follows (amounts in thousands):
Undistributed Ordinary Income | Undistributed Long-Term Capital Gains | Net Tax Basis Unrealized Appreciation/ (Depreciation) (1) | Other Book-to-Tax Accounting Differences (2) | Accumulated Capital Losses (3) | Qualified Late-Year Loss Deferral— Capital (4) | Qualified Late-Year Loss Deferral— Ordinary (5) | ||||||||||||||||||||||||
PIMCO RealPath™ Blend 2020 Fund | 21 | — | (29 | ) | — | — | — | — | ||||||||||||||||||||||
PIMCO RealPath™ Blend 2025 Fund | 24 | — | (26 | ) | — | — | — | — | ||||||||||||||||||||||
PIMCO RealPath™ Blend 2030 Fund | 27 | — | (26 | ) | — | — | — | — | ||||||||||||||||||||||
PIMCO RealPath™ Blend 2035 Fund | 27 | — | (16 | ) | — | — | — | — | ||||||||||||||||||||||
PIMCO RealPath™ Blend 2040 Fund | 25 | — | (4 | ) | — | — | — | — | ||||||||||||||||||||||
PIMCO RealPath™ Blend 2045 Fund | 25 | — | 3 | — | — | — | — | |||||||||||||||||||||||
PIMCO RealPath™ Blend 2050 Fund | 25 | — | 5 | — | — | — | — | |||||||||||||||||||||||
PIMCO RealPath™ Blend 2055 Fund | 25 | — | 6 | — | — | — | — | |||||||||||||||||||||||
PIMCO RealPath™ Blend Income Fund | 17 | — | (35 | ) | — | — | — | — |
(1) | Adjusted for open wash sale loss deferrals and accelerated recognition of unrealized gain on certain options contracts, return of capital adjustments, and adjustments for real estate investment trusts for federal income tax purposes. Also adjusted for differences between book and tax realized and unrealized gain/loss on swap contracts. |
(2) | Represents differences in income tax regulations and financial accounting principles generally accepted in the United States of America, namely for straddle loss deferrals and distributions payable at fiscal year-end. |
(3) | Capital losses available to offset future net capital gains expire in varying amounts in the years shown below. |
(4) | Capital losses realized during the period November 1, 2014 through June 30, 2015 which the Funds elected to defer to the following taxable year pursuant to income tax regulations. |
(5) | Specified losses realized during the period November 1, 2014 through June 30, 2015 and Ordinary losses realized during the period January 1, 2015 through June 30, 2015, which the Fund elected to defer to the following taxable year pursuant to income tax regulations. |
Under the Regulated Investment Company Act of 2010, a Fund is permitted to carry forward any new capital losses for an unlimited period. Additionally, such capital losses that are carried forward will retain their character as either short-term or long-term capital losses rather than being considered all short-term under previous law.
As of June 30, 2015, the Funds had the following post-effective capital losses with no expiration:
Short-Term | Long-Term | |||||||||
PIMCO RealPath™ Blend 2020 Fund | $ | — | $ | — | ||||||
PIMCO RealPath™ Blend 2025 Fund | — | — | ||||||||
PIMCO RealPath™ Blend 2030 Fund | — | — | ||||||||
PIMCO RealPath™ Blend 2035 Fund | — | — | ||||||||
PIMCO RealPath™ Blend 2040 Fund | — | — | ||||||||
PIMCO RealPath™ Blend 2045 Fund | — | — | ||||||||
PIMCO RealPath™ Blend 2050 Fund | — | — | ||||||||
PIMCO RealPath™ Blend 2055 Fund | — | — | ||||||||
PIMCO RealPath™ Blend Income Fund | — | — |
72 | PIMCO EQUITY SERIES |
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June 30, 2015
As of June 30, 2015, the aggregate cost and the net unrealized appreciation/(depreciation) of investments for federal income tax purposes are as follows (amounts in thousands):
Federal Tax Cost | Unrealized Appreciation | Unrealized (Depreciation) | Net Unrealized Appreciation/ (Depreciation) (6) | |||||||||||||||
PIMCO RealPath™ Blend 2020 Fund | $ | 2,975 | $ | 23 | $ | (52 | ) | $ | (29 | ) | ||||||||
PIMCO RealPath™ Blend 2025 Fund | 3,000 | 28 | (55 | ) | (27 | ) | ||||||||||||
PIMCO RealPath™ Blend 2030 Fund | 2,983 | 34 | (61 | ) | (27 | ) | ||||||||||||
PIMCO RealPath™ Blend 2035 Fund | 2,998 | 42 | (58 | ) | (16 | ) | ||||||||||||
PIMCO RealPath™ Blend 2040 Fund | 2,986 | 46 | (51 | ) | (5 | ) | ||||||||||||
PIMCO RealPath™ Blend 2045 Fund | 3,009 | 54 | (50 | ) | 4 | |||||||||||||
PIMCO RealPath™ Blend 2050 Fund | 2,988 | 54 | (47 | ) | 7 | |||||||||||||
PIMCO RealPath™ Blend 2055 Fund | 3,036 | 54 | (48 | ) | 6 | |||||||||||||
PIMCO RealPath™ Blend Income Fund | 2,980 | 18 | (53 | ) | (35 | ) |
(6) | Primary differences, if any, between book and tax net unrealized appreciation/(depreciation) on investments are attributable to open wash sale loss deferrals, return of capital adjustments, and adjustments for real estate investment trusts. |
For the fiscal year ended June 30, 2015 the Funds made the following tax basis distributions (amounts in thousands):
June 30, 2015 | ||||||||||||||
Ordinary Income Distributions (7) | Long-Term Capital Gain Distributions | Return of Capital (8) | ||||||||||||
PIMCO RealPath™ Blend 2020 Fund | $ | 15 | $ | — | $ | — | ||||||||
PIMCO RealPath™ Blend 2025 Fund | 15 | — | — | |||||||||||
PIMCO RealPath™ Blend 2030 Fund | 15 | — | — | |||||||||||
PIMCO RealPath™ Blend 2035 Fund | 15 | — | — | |||||||||||
PIMCO RealPath™ Blend 2040 Fund | 15 | — | — | |||||||||||
PIMCO RealPath™ Blend 2045 Fund | 15 | — | — | |||||||||||
PIMCO RealPath™ Blend 2050 Fund | 15 | — | — | |||||||||||
PIMCO RealPath™ Blend 2055 Fund | 15 | — | — | |||||||||||
PIMCO RealPath™ Blend Income Fund | 15 | — | — |
(7) | Includes short-term capital gains, if any, distributed. |
(8) | A portion of the distributions made represents a tax return of capital. Return of capital distributions have been reclassified from undistributed net investment income to paid-in capital to more appropriately conform financial accounting to tax accounting. |
14. SUBSEQUENT EVENTS
Effective August 10, 2015, the contingent deferred sales charges holding period is reduced from 18 months to 12 months for purchases of such Class A shares on or after August 10, 2015.
There were no other subsequent events identified that require recognition or disclosure.
ANNUAL REPORT | JUNE 30, 2015 | 73 |
Table of Contents
Report of Independent Registered Public Accounting Firm
To the Board of Trustees and Shareholders of the PIMCO Equity Series®
In our opinion, the accompanying statements of assets and liabilities, including the schedules of investments, and the related statements of operations and of changes in net assets and the financial highlights present fairly, in all material respects, the financial position of PIMCO RealPath™ Blend 2020 Fund, PIMCO RealPath™ Blend 2025 Fund, PIMCO RealPath™ Blend 2030 Fund, PIMCO RealPath™ Blend 2035 Fund, PIMCO RealPath™ Blend 2040 Fund, PIMCO RealPath™ Blend 2045 Fund, PIMCO RealPath™ Blend 2050 Fund, PIMCO RealPath™ Blend 2055 Fund, and PIMCO RealPath™ Blend Income Fund (nine series constituting the PIMCO Equity Series®, hereinafter referred to as the “Funds”) at June 30, 2015, the results of each of their operations, the changes in each of their net assets and the financial highlights for the period December 31, 2014 (commencement of operations) through June 30, 2015, in conformity with accounting principles generally accepted in the United States of America. These financial statements and financial highlights (hereafter referred to as “financial statements”) are the responsibility of the Funds’ management. Our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits of these financial statements in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audits to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, and evaluating the overall financial statement presentation. We believe that our audits, which included confirmation of securities at June 30, 2015 by correspondence with the transfer agent, custodian and brokers, and the application of alternative auditing procedures where applicable, provide a reasonable basis for our opinion.
PricewaterhouseCoopers LLP
Kansas City, Missouri
August 20, 2015
74 | PIMCO EQUITY SERIES |
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Federal Income Tax Information
(Unaudited)
As required by the Internal Revenue Code (“Code”) and Treasury Regulations, if applicable, shareholders must be notified of the Trust’s fiscal year end regarding the status of dividend received deduction, qualified dividend income, qualified interest income, and qualified short-term capital gain.
Dividend Received Deduction. Corporate shareholders are generally entitled to take the dividend received deduction on the portion of a Portfolio’s dividend distribution that qualifies under tax law. The percentage of each Funds fiscal 2015 ordinary income dividends that qualifies for the corporate dividend received deduction is set forth below.
Qualified Dividend Income. Under the Jobs and Growth Tax Relief Reconciliation Act of 2003 (the “Act”), the following percentages of ordinary dividends paid during the fiscal year ended June 30, 2015 are designated as “qualified dividend income”, as defined in the Act, subject to reduced tax rates.
Qualified Interest Income and Qualified Short-Term Capital Gain (for non-U.S. resident shareholders only). Under the American Jobs Creation Act of 2004, the following amounts of ordinary dividends paid during the fiscal year ended June 30, 2015 are considered to be derived from “qualified interest income,” as defined in Section 871(k)(1)(E) of the Code, and therefore are designated as interest-related dividends, as defined in Section 871(k)(1)(C) of the Code. Further, the following amounts of ordinary dividends paid during the fiscal year ended June 30, 2015 are considered to be derived from “qualified short-term capital gain,” as defined in Section 871(k)(2)(D) of the Code, and therefore are designated as qualified short-term gain dividends, as defined by Section 871(k)(2)(C) of the Code.
Dividend Received Deduction % | Qualified Dividend Income % | Qualified Interest Income (000s) | Qualified Short-Term Capital Gain (000s) | |||||||||||||||
PIMCO RealPath™ Blend 2020 Fund | 0.39% | 0.39% | $ | — | $ | — | ||||||||||||
PIMCO RealPath™ Blend 2025 Fund | 0.39% | 0.39% | — | — | ||||||||||||||
PIMCO RealPath™ Blend 2030 Fund | 0.35% | 0.36% | — | — | ||||||||||||||
PIMCO RealPath™ Blend 2035 Fund | 0.29% | 0.29% | — | — | ||||||||||||||
PIMCO RealPath™ Blend 2040 Fund | 0.29% | 0.29% | — | — | ||||||||||||||
PIMCO RealPath™ Blend 2045 Fund | 0.25% | 0.25% | — | — | ||||||||||||||
PIMCO RealPath™ Blend 2050 Fund | 0.24% | 0.25% | — | — | ||||||||||||||
PIMCO RealPath™ Blend 2055 Fund | 0.25% | 0.25% | — | — | ||||||||||||||
PIMCO RealPath™ Blend Income Fund | 0.36% | 0.36% | — | — |
Shareholders are advised to consult their own tax advisor with respect to the tax consequences of their investment in the Trust. In January 2016, you will be advised on IRS Form 1099-DIV as to the federal tax status of the dividends and distributions received by you in calendar year 2015.
ANNUAL REPORT | JUNE 30, 2015 | 75 |
Table of Contents
Glossary: (abbreviations that may be used in the preceding statements)
(Unaudited)
Counterparty Abbreviations: | ||
CBK | Citibank N.A. | |
Currency Abbreviations: | ||
USD (or $) | United States Dollar | |
Exchange Abbreviations: | ||
CBOE | Chicago Board Options Exchange | |
Index/Spread Abbreviations: | ||
BCOMTR | Bloomberg Commodity Index Total Return | |
Other Abbreviations: | ||
REIT | Real Estate Investment Trust |
76 | PIMCO EQUITY SERIES |
Table of Contents
(Unaudited)
The charts below identify the Trustees and executive officers of the Trust. Unless otherwise indicated, the address of all persons below is 650 Newport Center Drive, Newport Beach, CA 92660. The Funds’ Statement of Additional Information includes more information about the Trustees and Officers. To request a free copy, call PIMCO at (888)877-4626, or visit the Funds’ website at www.pimco.com.
Name, Year of Birth and Position Held with Trust | Term of Office and Length of Time Served** | Principal Occupation(s) During Past 5 Years | Number of Funds in Fund Complex | Other Public Company and Investment Company Directorships Held by Trustee During the Past 5 Years | ||||
Interested Trustees* | ||||||||
Brent R. Harris (1959) Chairman of the Board and Trustee | 03/2010 to present | Managing Director and member of Executive Committee, PIMCO. | 177 | Chairman and Trustee, PIMCO Funds; Chairman and Trustee, PIMCO Variable Insurance Trust; Chairman and Trustee, PIMCO ETF Trust; Chairman and Trustee, PIMCO Equity Series VIT; Director, StocksPLUS® Management, Inc; and member of Board of Governors, Investment Company Institute. Board Member and Owner, Harris Holdings, LLC (1992-present). | ||||
Independent Trustees | ||||||||
E. Philip Cannon (1940) Trustee | 03/2010 to present | Private Investor. Formerly, President, Houston Zoo. | 177 | Trustee, PIMCO Funds; Trustee, PIMCO Variable Insurance Trust; Trustee, PIMCO ETF Trust; and Trustee, PIMCO Equity Series VIT. Formerly, Trustee, Allianz Funds (formerly, PIMCO Funds: Multi-Manager Series. | ||||
Peter B. McCarthy (1950) Trustee | 09/2011 to present | Formerly, Assistant Secretary and Chief Financial Officer, United States Department of Treasury; Deputy Managing Director, Institute of International Finance. | 177 | Trustee, PIMCO Funds; Trustee, PIMCO Variable Insurance Trust; Trustee, PIMCO ETF Trust; and Trustee, PIMCO Equity Series VIT. |
* Mr. Harris is an “interested persons” of the Trust (as that term is defined in the 1940 Act) because of his affiliations with PIMCO.
** Trustees serve until their successors are duly elected and qualified.
ANNUAL REPORT | JUNE 30, 2015 | 77 |
Table of Contents
Management of the Trust (Cont.)
(Unaudited)
Executive Officers
Name, Year of Birth and Position Held with Trust* | Term of Office and Length of Time Served | Principal Occupation(s) During Past 5 Years* | ||
Peter G. Strelow (1970) President | 02/2014 to present
Senior Vice President 11/2013 to 02/2014
Vice President 03/2010 to 11/2013 | Managing Director, PIMCO. President, PIMCO Funds, PIMCO Variable Insurance Trust, PIMCO ETF Trust, PIMCO Equity Series VIT, PIMCO Managed Accounts Trust and PIMCO Closed-End Funds. | ||
David C. Flattum (1964) Chief Legal Officer | 03/2010 to present | Managing Director and General Counsel, PIMCO. Chief Legal Officer, PIMCO Funds, PIMCO Variable Insurance Trust, PIMCO ETF Trust and PIMCO Equity Series VIT. Formerly, Managing Director, Chief Operating Officer and General Counsel, Allianz Asset Management of America L.P. | ||
Jennifer E. Durham (1970) Chief Compliance Officer | 03/2010 to present | Managing Director and Chief Compliance Officer, PIMCO. Chief Compliance Officer, PIMCO Funds, PIMCO Variable Insurance Trust, PIMCO ETF Trust and PIMCO Equity Series VIT. | ||
Brent R. Harris (1959) Senior Vice President | 03/2010 to present | Managing Director and current member of Executive Committee, PIMCO. Senior Vice President, PIMCO Funds, PIMCO Variable Insurance Trust, PIMCO ETF Trust and PIMCO Equity Series VIT. | ||
Douglas M. Hodge (1957) Senior Vice President | 02/2014 to present
President 05/2013 to 02/2014 | Managing Director, Chief Executive Officer, PIMCO (since 2/14); Chief Operating Officer, PIMCO (7/09 - 2/14); Member of Executive Committee and Head of PIMCO’s Asia Pacific region. Member Global Executive Committee, Allianz Asset Management. Senior Vice President, PIMCO Funds, PIMCO Variable Insurance Trust, PIMCO ETF Trust and PIMCO Equity Series VIT. | ||
Kevin M. Broadwater (1964) Vice President - Senior Counsel | 05/2012 to present | Executive Vice President and Deputy General Counsel, PIMCO. Vice President - Senior Counsel, PIMCO Funds, PIMCO Variable Insurance Trust, PIMCO ETF Trust and PIMCO Equity Series VIT. | ||
Joshua D. Ratner (1976)** Vice President - Senior Counsel, Secretary | 11/2013 to present
Assistant Secretary 03/2010 to 01/2011 | Executive Vice President and Senior Counsel, PIMCO. Chief Legal Officer, PIMCO Investments LLC. Vice President - Senior Counsel, Secretary, PIMCO Funds, PIMCO Variable Insurance Trust, PIMCO ETF Trust and PIMCO Equity Series VIT. Vice President, Secretary and Chief Legal Officer, PIMCO Managed Accounts Trust and PIMCO Closed-End Funds. | ||
Ryan G. Leshaw (1980) Assistant Secretary | 05/2012 to present | Vice President and Counsel, PIMCO. Assistant Secretary, PIMCO Funds, PIMCO Variable Insurance Trust, PIMCO ETF Trust, PIMCO Equity Series VIT, PIMCO Managed Accounts Trust and PIMCO Closed-End Funds. Formerly, Associate, Willkie Farr & Gallagher LLP. | ||
Stacie D. Anctil (1969) Vice President | 05/2015 to present
Assistant Treasurer 03/2010 to 05/2015 | Senior Vice President, PIMCO. Vice President, PIMCO Funds, PIMCO Variable Insurance Trust, PIMCO ETF Trust, PIMCO Equity Series VIT, PIMCO Managed Accounts Trust and PIMCO Closed-End Funds. | ||
William G. Galipeau (1974) Vice President | 11/2013 to present | Executive Vice President, PIMCO. Vice President, PIMCO Funds, PIMCO Variable Insurance Trust, PIMCO ETF Trust and PIMCO Equity Series VIT. Treasurer, PIMCO Managed Accounts Trust and PIMCO Closed-End Funds. Formerly, Vice President, Fidelity Investments. | ||
Eric D. Johnson (1970)** Vice President | 05/2011 to present | Executive Vice President, PIMCO. Vice President, PIMCO Funds, PIMCO Variable Insurance Trust, PIMCO ETF Trust, PIMCO Equity Series VIT, PIMCO Managed Accounts Trust and PIMCO Closed-End Funds. | ||
Henrik P. Larsen (1970) Vice President | 03/2010 to present | Senior Vice President, PIMCO. Vice President, PIMCO Funds, PIMCO Variable Insurance Trust, PIMCO ETF Trust and PIMCO Equity Series VIT. | ||
Greggory S. Wolf (1970) Vice President | 05/2011 to present | Senior Vice President, PIMCO. Vice President, PIMCO Funds, PIMCO Variable Insurance Trust, PIMCO ETF Trust and PIMCO Equity Series VIT. | ||
Trent W. Walker (1974) Treasurer | 11/2013 to present
Assistant Treasurer 03/2010 to 11/2013 | Senior Vice President, PIMCO. Treasurer, PIMCO Funds, PIMCO Variable Insurance Trust, PIMCO ETF Trust and PIMCO Equity Series VIT. Assistant Treasurer, PIMCO Managed Accounts Trust and PIMCO Closed-End Funds. | ||
Erik C. Brown (1967) Assistant Treasurer | 03/2010 to present | Executive Vice President, PIMCO. Assistant Treasurer, PIMCO Funds, PIMCO Variable Insurance Trust, PIMCO ETF Trust, PIMCO Equity Series VIT, PIMCO Managed Accounts Trust and PIMCO Closed-End Funds. | ||
Jason J. Nagler (1982)** Assistant Treasurer | 05/2015 to present | Vice President, PIMCO. Assistant Treasurer, PIMCO Funds, PIMCO Variable Insurance Trust, PIMCO ETF Trust, PIMCO Equity Series VIT, PIMCO Managed Accounts Trust and PIMCO Closed-End Funds. Formerly, Head of Mutual Fund Reporting, GMO and Assistant Treasurer, GMO Trust and GMO Series Trust Funds. |
* The term “PIMCO Closed-End Funds” as used herein includes: PIMCO California Municipal Income Fund, PIMCO California Municipal Income Fund II, PIMCO California Municipal Income Fund III, PIMCO Municipal Income Fund, PIMCO Municipal Income Fund II, PIMCO Municipal Income Fund III, PIMCO New York Municipal Income Fund, PIMCO New York Municipal Income Fund II, PIMCO New York Municipal Income Fund III, PCM Fund Inc., PIMCO Corporate & Income Opportunity Fund, PIMCO Corporate & Income Strategy Fund, PIMCO Dynamic Credit Income Fund, PIMCO Dynamic Income Fund, PIMCO Global StocksPLUS & Income Fund, PIMCO High Income Fund, PIMCO Income Opportunity Fund, PIMCO Income Strategy Fund, PIMCO Income Strategy Fund II and PIMCO Strategic Income Fund, Inc.
** The address of these officers is Pacific Investment Management Company LLC, 1633 Broadway, New York, New York 10019.
78 | PIMCO EQUITY SERIES |
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(Unaudited)
The Funds2,3 consider customer privacy to be a fundamental aspect of their relationships with shareholders and are committed to maintaining the confidentiality, integrity and security of their current, prospective and former shareholders’ non-public personal information. The Funds have developed policies that are designed to protect this confidentiality, while allowing shareholder needs to be served.
Obtaining Personal Information
In the course of providing shareholders with products and services, the Funds and certain service providers to the Funds, such as the Funds’ investment advisers or sub-advisers (“Advisers”), may obtain non-public personal information about shareholders, which may come from sources such as account applications and other forms, from other written, electronic or verbal correspondence, from shareholder transactions, from a shareholder’s brokerage or financial advisory firm, financial advisor or consultant, and/or from information captured on applicable websites.
Respecting Your Privacy
As a matter of policy, the Funds do not disclose any non-public personal information provided by shareholders or gathered by the Funds to non-affiliated third parties, except as required or permitted by law or as necessary for such third parties to perform their agreements with respect to the Funds. As is common in the industry, non-affiliated companies may from time to time be used to provide certain services, such as preparing and mailing prospectuses, reports, account statements and other information, conducting research on shareholder satisfaction and gathering shareholder proxies. The Funds or their affiliates may also retain non-affiliated companies to market Fund shares or products which use Fund shares and enter into joint marketing arrangements with them and other companies. These companies may have access to a shareholder’s personal and account information, but are permitted to use this information solely to provide the specific service or as otherwise permitted by law. In most cases, the shareholders will be clients of a third party, but the Funds may also provide a shareholder’s personal and account information to the shareholder’s respective brokerage or financial advisory firm and/or financial advisor or consultant.
Sharing Information with Third Parties
The Funds reserve the right to disclose or report personal or account information to non-affiliated third parties in limited circumstances where the Funds believe in good faith that disclosure is required under law, to cooperate with regulators or law enforcement authorities, to protect their rights or property, or upon reasonable request by any fund advised by PIMCO in which a shareholder has invested. In addition, the Funds may disclose information about a shareholder or a
shareholder’s accounts to a non-affiliated third party at the shareholder’s request or with the consent of the shareholder.
Sharing Information with Affiliates
The Funds may share shareholder information with their affiliates in connection with servicing shareholders’ accounts, and subject to applicable law may provide shareholders with information about products and services that the Funds or their Advisers, distributors or their affiliates (“Service Affiliates”) believe may be of interest to such shareholders. The information that the Funds may share may include, for example, a shareholder’s participation in the Funds or in other investment programs sponsored by a Service Affiliate, a shareholder’s ownership of certain types of accounts (such as IRAs), information about the Funds’ experiences or transactions with a shareholder, information captured on applicable websites, or other data about a shareholder’s accounts, subject to applicable law. The Funds’ Service Affiliates, in turn, are not permitted to share shareholder information with non-affiliated entities, except as required or permitted by law.
Procedures to Safeguard Private Information
The Funds take seriously the obligation to safeguard shareholder non-public personal information. In addition to this policy, the Funds have implemented procedures that are designed to restrict access to a shareholder’s non-public personal information to internal personnel who need to know that information to perform their jobs, such as servicing shareholder accounts or notifying shareholders of new products or services. Physical, electronic and procedural safeguards are in place to guard a shareholder’s non-public personal information.
Information Collected from Websites
Websites maintained by the Funds or their service providers may use a variety of technologies to collect information that help the Funds and their service providers understand how the website is used. Information collected from your web browser (including small files stored on your device that are commonly referred to as “cookies”) allow the websites to recognize your web browser and help to personalize and improve your user experience and enhance navigation of the website. In addition, the Funds or their Service Affiliates may use third parties to place advertisements for the Funds on other websites, including banner advertisements. Such third parties may collect anonymous information through the use of cookies or action tags (such as web beacons). The information these third parties collect is generally limited to technical and web navigation information, such as your IP address, web pages visited and browser type, and does not include personally identifiable information such as name, address, phone number or email address.
ANNUAL REPORT | JUNE 30, 2015 | 79 |
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Privacy Policy1 (Cont.)
(Unaudited)
You can change your cookie preferences by changing the setting on your web browser to delete or reject cookies. If you delete or reject cookies, some website pages may not function properly.
Changes to the Privacy Policy
From time to time, the Funds may update or revise this privacy policy. If there are changes to the terms of this privacy policy, documents containing the revised policy on the relevant website will be updated.
1 Effective as of September 5, 2014.
2 PIMCO Investments LLC (“PI”) serves as the Funds’ distributor. This Privacy Policy applies to the activities of PI to the extent that PI regularly effects or engages in transactions with or for a Fund shareholder who is the record owner of such shares. For purposes of this Privacy Policy, references to “the Funds” shall include PI when acting in this capacity.
3 When distributing this Policy, a Fund may combine the distribution with any similar distribution of its investment adviser’s privacy policy. The distributed, combined policy may be written in the first person (i.e., by using “we” instead of “the Funds”).
80 | PIMCO EQUITY SERIES |
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General Information
Investment Adviser and Administrator
Pacific Investment Management Company LLC
650 Newport Center Drive
Newport Beach, CA 92660
Distributor
PIMCO Investments LLC
1633 Broadway
New York, NY 10019
Custodian
State Street Bank and Trust Company
801 Pennsylvania Avenue
Kansas City, MO 64105
Transfer Agent
Boston Financial Data Services
Institutional Class, Class P, Administrative Class, Class D
330 W. 9th Street, 5th Floor
Kansas City, MO 64105
Boston Financial Data Services
Class A, Class C, Class R
P.O. Box 55060
Boston, MA 02205-5060
Legal Counsel
Dechert LLP
1900 K Street, N.W.
Washington, D.C. 20006
Independent Registered Public Accounting Firm
PricewaterhouseCoopers LLP
1100 Walnut Street, Suite 1300
Kansas City, MO 64106
This report is submitted for the general information of the shareholders of the PIMCO Equity Series.
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PES3002AR_063015
Table of Contents
Your Global Investment Authority
PIMCO Equity Series®
Annual Report
June 30, 2015
PIMCO RAE Fundamental Emerging Markets Fund
PIMCO RAE Fundamental Global Fund
PIMCO RAE Fundamental Global ex-US Fund
PIMCO RAE Fundamental International Fund
PIMCO RAE Fundamental US Fund
PIMCO RAE Fundamental US Small Fund
Share Classes
n | Institutional |
n | P |
n | A |
n | C |
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Fund | Fund Summary | Schedule of Investments | ||||||
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14 | 50 |
This material is authorized for use only when preceded or accompanied by the current PIMCO Equity Series prospectus. The Shareholder Reports for the other series of the PIMCO Equity Series are printed separately.
Table of Contents
Dear Shareholder,
Please find enclosed the Annual Report for the PIMCO Equity Series covering the twelve-month reporting period ended June 30, 2015. On the following pages are specific details about the investment performance of each fund during the reporting period.
Highlights of the financial markets during our twelve-month reporting period include:
n | Investor concerns over the potential for global deflation gradually receded as oil prices rose during the latter part of the reporting period after significantly declining in 2014 and early 2015. In addition, the outlook for economic growth brightened, particularly for developed market economies led by continuing growth in the U.S. and improvement in Europe. Investors, however, were kept on edge by events in Greece, in which the debt crisis worsened sharply towards the latter part of the period and continues to be a concern outside of the reporting period as events remain fluid. Furthermore, Chinese equity markets experienced heightened volatility and data pointed to a slowing Chinese economy, prompting Chinese policymakers to lower interest rates. |
n | U.S. equities, as represented by the S&P 500 Index, returned 7.42% due to an improving economic outlook and stronger jobs growth. Internationally, equity markets experienced strong performance, notably in Europe and Japan, but currency moves in unhedged U.S. dollar terms created headwinds for returns as the MSCI EAFE Net Dividend Index (USD hedged) returned 11.19% while the MSCI EAFE Net Dividend Index (USD Unhedged) declined 4.22% over the reporting period. Japanese equities, as represented by the MSCI Japan Index, returned 31.24% over the same period. The sharp decline in oil prices in 2014 and early 2015 led to heightened equity market volatility over the reporting period. The debt crisis in Greece weighed on global equities late in the reporting period as Prime Minister Alexis Tsipras called for a referendum to be held regarding a bailout offered by its European creditors. Greece shut down its banking system ahead of the vote in order to prevent financial collapse. |
n | Emerging market (“EM”) equities, as represented by the MSCI Emerging Markets Index (Net Dividends in USD), declined 5.12% over the reporting period. Concerns over slower Chinese economic growth created headwinds for EM equities, as Chinese stocks briefly moved into bear market territory near the close of the reporting period despite efforts by the People’s Bank of China to offset the recent decline through additional interest rate cuts. In the latter part of 2014, Brazil was one of the worst performing equity markets as the country slipped back into recession and President Rousseff won her re-election campaign. The Brazilian real fell 17% in the first quarter of 2015 following nationwide protests against corruption, rising unemployment and weak economic growth, before rebounding in the second quarter of 2015, after the Brazilian central bank lowered the upper limit of its inflation target, sending signs of confidence to the market. These events, along with a strong U.S. dollar and lower commodity prices over the reporting period, were contributing factors in EM equity underperformance relative to developed market equities. |
n | Style-wise, growth equities outperformed value equities globally as the MSCI All Country World Growth Index (Net Dividends in USD) returned 4.86% and the MSCI All Country World Value Index (Net Dividends in USD) declined 3.41%. The healthcare and consumer discretionary sectors were the top performing equity sectors, while the energy and materials sectors were the worst performing equity sectors over the reporting period. |
n | U.S. Treasuries, as represented by the Barclays U.S. Treasury Index, returned 2.31% for the reporting period. Longer-maturity yields (i.e., seven to thirty year yields) declined, with prices therefore higher, while shorter-maturity yields (i.e., six month to five year yields) rose as investors anticipated some degree of monetary tightening by the Federal Reserve to occur later in 2015. The benchmark ten-year U.S. Treasury note yielded 2.35% at the end of the reporting period, down from 2.53% on June 30, 2014. The Barclays U.S. Aggregate Index, a widely used index of U.S. investment-grade bonds, returned 1.86% for the reporting period. |
2 | PIMCO EQUITY SERIES |
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If you have any questions regarding the PIMCO Equity Series, please contact your account manager or financial adviser, or call one of our shareholder associates at 888.87.PIMCO (888.877.4626). We also invite you to visit our website at www.pimco.com to learn more about our views and global thought leadership.
Thank you again for the trust you have placed in us. We value your commitment and will continue to work diligently to meet your broad investment needs.
![]() | Sincerely,
Brent R. Harris Chairman of the Board, PIMCO Equity Series
August 20, 2015
|
ANNUAL REPORT | JUNE 30, 2015 | 3 |
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Important Information About the Funds
We believe that equity funds have an important role to play in a well diversified investment portfolio. It is important to note, however, that equity funds are subject to notable risks. Among other things, equity and equity-related securities may decline in value due to both real and perceived general market, economic, and industry conditions.
The PIMCO RAE Fundamental Global Fund and PIMCO RAE Fundamental Global ex-US Fund are “fund of funds,” which is a term used to describe mutual funds that pursue their investment objective by investing in other mutual funds instead of investing directly in stocks or bonds of other issuers. Under normal circumstances, the PIMCO RAE Fundamental Global Fund invests substantially all of its assets in Institutional Class shares of PIMCO RAE Fundamental US Fund, PIMCO RAE Fundamental International Fund and PIMCO RAE Fundamental Emerging Markets Fund, and the PIMCO RAE Fundamental Global ex-US Fund invests substantially all of its assets in Institutional Class shares of PIMCO RAE Fundamental International Fund and PIMCO RAE Fundamental Emerging Markets Fund (collectively, “Underlying Funds”), equity securities of small companies economically tied to non-U.S. countries, and securities that are eligible investments for the underlying funds.
The values of equity securities, such as common stocks and preferred stocks, have historically risen and fallen in periodic cycles and may decline due to general market conditions, which are not specifically related to a particular company, such as real or perceived adverse economic conditions, changes in the general outlook for corporate earnings, changes in interest or currency rates or adverse investor sentiment generally. Equity securities may also decline due to factors that affect a particular industry or industries, such as labor shortages, increased production costs and competitive conditions within an industry. In addition, the value of an equity security may decline for a number of reasons that directly relate to the issuer, such as management performance, financial leverage and reduced demand for the issuer’s goods or services, as well as the historical and prospective earnings of the issuer and the value of its assets. Different types of equity securities may react differently to these developments and a change in the financial condition of a single issuer may affect securities markets as a whole.
During a general downturn in the securities markets, multiple asset classes, including equity securities, may decline in value simultaneously. The market price of equity securities owned by a Fund may go up or down, sometimes rapidly or unpredictably. Equity securities generally have greater price volatility than fixed income securities and common stocks generally have the greatest appreciation and depreciation potential of all corporate securities. In addition, although the Federal Reserve (“Fed”) ended its bond-buying program in October 2014, the Fed indicated that it remains committed to accommodative monetary policy, which in the past has aided equity markets. As of the date of this
report, Europe is one of the worst performing regions for equity markets, as deflationary concerns weighed on the values of equity securities.
The Funds may be subject to various risks as described in the Funds’ prospectus. Some of these risks may include, but are not limited to, the following: allocation risk, Acquired Fund risk, equity risk, value investing risk, foreign (non-U.S.) investment risk, emerging markets risk, issuer non-diversification risk, market risk, issuer risk, credit risk, distressed company risk, currency risk, liquidity risk, leveraging risk, management risk, small company risk, arbitrage risk, derivatives risk and model risk. A complete description of these risks is contained in the Funds’ prospectus. The Funds may use derivative instruments for hedging purposes or as part of an investment strategy. Use of these instruments may involve certain costs and risks such as liquidity risk, interest rate risk, market risk, credit risk, leverage risk, management risk and the risk that a Fund may not be able to close out a position when it would be most advantageous to do so. Certain derivative transactions may have a leveraging effect on a Fund. For example, a small investment in a derivative instrument may have a significant impact on a Fund’s exposure to interest rates, currency exchange rates or other investments. As a result, a relatively small price movement in a derivative instrument may cause an immediate and substantial loss or gain, which translates into heightened volatility in the Funds. A Fund may engage in such transactions regardless of whether the Fund owns the asset, instrument or components of the index underlying the derivative instrument. A Fund may invest a significant portion of its assets in these types of instruments. If it does, the Fund’s investment exposure could far exceed the value of its portfolio securities and its investment performance could be primarily dependent upon securities it does not own. Investing in foreign (non-U.S.) securities may entail risk due to foreign (non-U.S.) economic and political developments; this risk may be increased when investing in emerging markets.
The value of an equity security of an issuer that has paid dividends in the past may decrease if the issuer reduces or eliminates future payments to its shareholders. If the dividends or distributions received by a Fund decrease, the Fund may have less income to distribute to the Fund’s shareholders. In addition, during certain market conditions, the equity securities of issuers that have paid regular dividends or distributions may not be widely available or may be highly concentrated in particular sectors of the market. A Fund may invest a significant portion of its assets in value stocks. Value stocks may perform differently from other types of stocks and the market as a whole. 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.
4 | PIMCO EQUITY SERIES |
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The geographical classification of foreign (non-U.S.) securities in this report are classified by the country of incorporation of a holding. In certain instances, a security’s country of incorporation may be different from its country of economic exposure.
Certain Funds (or Underlying Funds) may invest in securities and instruments that are economically tied to Russia. Investments in Russia are subject to political, economic, legal, market and currency risks, as well as the risk that further economic sanctions may be imposed by the United States and/or other countries. Such sanctions—which may impact companies in many sectors, including energy, financial services and defense, among others—may negatively impact a Fund’s performance and/or ability to achieve its investment objective. For example, certain transactions may be prohibited and/or existing investments may become illiquid (e.g., in the event that transacting in certain existing investments is prohibited), which could cause a Fund to sell other portfolio holdings at a disadvantageous time or price in order to meet shareholder redemptions.
On each individual Fund Summary page in this Shareholder Report, the Average Annual Total Return table and Cumulative Returns chart measure performance assuming that any dividend and capital gain distributions were reinvested. Class A shares are subject to an initial
sales charge. A Contingent Deferred Sales Charge (“CDSC”) may be imposed in certain circumstances on Class A shares that are purchased without an initial sales charge and then redeemed during the first 18 months after purchase. The Cumulative Returns chart reflects only Institutional Class performance. Performance for Class P, Administrative Class, Class D, Class A, Class C and Class R shares, if applicable, are typically lower than Institutional Class performance due to the lower expenses paid by Institutional Class shares. Performance shown is net of fees and expenses. A Fund’s total annual operating expense ratios on each individual Fund summary page are as of the currently effective prospectus, as supplemented to date. The Cumulative Returns chart assumes the initial investment of $1,000,000 was made at the end of the month that the Institutional Class of the relevant Fund commenced operations. The minimum initial investment amount for Institutional Class, Class P and Administrative Class shares is $1,000,000. The minimum initial investment amount for Class A, Class C and Class D shares is $1,000. There is no minimum initial investment for Class R shares. Each Fund measures its performance against a broad-based securities market index (“benchmark index”). The benchmark index does not take into account fees, expenses, or taxes. A Fund’s past performance, before and after taxes, is not necessarily an indication of how the Fund will perform in the future.
The following table discloses the inception dates of each Fund and its respective share classes:
Fund Name | Fund Inception | Institutional Class | Class P | Administrative Class | Class D | Class A | Class C | Class R | ||||||||||||||||||||||||||
PIMCO RAE Fundamental Emerging Markets Fund | 6/5/2015 | 6/5/2015 | 6/5/2015 | — | — | 6/5/2015 | 6/5/2015 | — | ||||||||||||||||||||||||||
PIMCO RAE Fundamental Global Fund | 6/5/2015 | 6/5/2015 | 6/5/2015 | — | — | 6/5/2015 | 6/5/2015 | — | ||||||||||||||||||||||||||
PIMCO RAE Fundamental Global ex-US Fund | 6/5/2015 | 6/5/2015 | 6/5/2015 | — | — | 6/5/2015 | 6/5/2015 | — | ||||||||||||||||||||||||||
PIMCO RAE Fundamental International Fund | 6/5/2015 | 6/5/2015 | 6/5/2015 | — | — | 6/5/2015 | 6/5/2015 | — | ||||||||||||||||||||||||||
PIMCO RAE Fundamental US Fund | 6/5/2015 | 6/5/2015 | 6/5/2015 | — | — | 6/5/2015 | 6/5/2015 | — | ||||||||||||||||||||||||||
PIMCO RAE Fundamental US Small Fund | 6/5/2015 | 6/5/2015 | 6/5/2015 | — | — | 6/5/2015 | 6/5/2015 | — |
For periods prior to the inception date of the Class P, Administrative Class, Class D, Class A, Class C and Class R shares (if applicable), performance information shown is based on the performance of the Fund’s Institutional Class shares. The prior Institutional Class performance has been adjusted to reflect the distribution and/or service fees and other expenses paid by the Class P, Administrative Class, Class D, Class A, Class C and Class R shares, respectively.
An investment in a Fund is not a bank deposit and is not guaranteed or insured by the Federal Deposit Insurance Corporation (“FDIC”) or any other government agency. It is possible to lose money on investments in a Fund.
PIMCO has adopted written proxy voting policies and procedures (“Proxy Policy”) as required by Rule 206(4)-6 under the Investment Advisers Act of 1940, as amended. The Proxy Policy has been adopted by PIMCO Equity Series as the policies and procedures that PIMCO will use when voting proxies on behalf of a Fund. A description of the
policies and procedures that PIMCO uses to vote proxies relating to portfolio securities of a Fund, and information about how the Fund voted proxies relating to portfolio securities held during the most recent twelve-month period ended June 30th, are available without charge, upon request, by calling the Trust at (888) 87-PIMCO, on the Fund’s website at www.pimco.com, and on the Securities and Exchange Commission’s (“SEC”) website at www.sec.gov.
PIMCO Equity Series files a complete schedule of each Fund’s portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-Q. A copy of a Fund’s Form N-Q is available on the SEC’s website at www.sec.gov and may be reviewed and copied at the SEC’s Public Reference Room in Washington, D.C. A Fund’s Form N-Q will also be available without charge, upon request, by calling the Trust at (888) 87-PIMCO and on the Fund’s website at www.pimco.com. Information on the operation of the Public Reference Room may be obtained by calling 1-800-SEC-0330.
ANNUAL REPORT | JUNE 30, 2015 | 5 |
Table of Contents
Important Information About the Funds (Cont.)
PIMCO RAE Fundamental Emerging Markets Fund
Top 10 Holdings1
China Construction Bank Corp. ‘H’ | 3.6% | |||||
Industrial & Commercial Bank of China Ltd. ‘H’ | 3.0% | |||||
Bank of China Ltd. | 3.0% | |||||
China Mobile Ltd. | 2.8% | |||||
Lukoil OAO — ADR | 2.3% | |||||
Itau Unibanco Holding S.A. SP — ADR | 2.0% | |||||
Vale S.A. | 2.0% | |||||
Gazprom OAO SP — ADR | 2.0% | |||||
Surgutneftegas OAO — ADR | 2.0% | |||||
Samsung Electronics Co. Ltd. | 1.7% |
Geographic Breakdown1
China | 19.6% | |||||
Brazil | 13.3% | |||||
Russia | 10.8% | |||||
South Korea | 10.2% | |||||
South Africa | 9.5% | |||||
Taiwan | 9.2% | |||||
Hong Kong | 4.5% | |||||
India | 3.6% | |||||
Luxembourg | 3.3% | |||||
Thailand | 3.0% | |||||
United States | 2.8% | |||||
Mexico | 2.7% | |||||
United Kingdom | 2.4% | |||||
Poland | 1.9% | |||||
Indonesia | 1.8% | |||||
Netherlands | 1.1% | |||||
Greece | 0.3% |
Sector Breakdown1
Financials | 35.4% | |||||
Energy | 16.7% | |||||
Telecommunication Services | 12.7% | |||||
Information Technology | 8.5% | |||||
Industrials | 7.4% | |||||
Materials | 6.6% | |||||
Utilities | 5.8% | |||||
Consumer Discretionary | 4.1% |
Sector Breakdown1 (Cont.)
Consumer Staples | 2.6% | |||||
Health Care | 0.2% |
PIMCO RAE Fundamental Global Fund
Top Holdings1
PIMCO RAE Fundamental US Fund | 52.0% | |||||
PIMCO RAE Fundamental International Fund | 35.5% | |||||
PIMCO RAE Fundamental Emerging Markets Fund | 12.5% |
Geographic Breakdown1
United States | 100.0% |
Sector Breakdown1
Mutual Funds | 100.0% |
PIMCO RAE Fundamental Global ex-US Fund
Top Holdings1
PIMCO RAE Fundamental International Fund | 74.0% | |||||
PIMCO RAE Fundamental Emerging Markets Fund | 26.0% |
Geographic Breakdown1
United States | 100.0% |
Sector Breakdown1
Mutual Funds | 100.0% |
PIMCO RAE Fundamental International Fund
Top 10 Holdings1
Royal Dutch Shell PLC ‘A’ | 2.4% | |||||
HSBC Holdings PLC | 2.0% | |||||
BP PLC | 1.8% | |||||
Total S.A. | 1.5% | |||||
Orange S.A. | 1.3% | |||||
Banco Santander S.A. | 1.3% | |||||
Novartis AG | 1.1% | |||||
Telefonica S.A. | 1.1% | |||||
AstraZeneca PLC | 1.0% | |||||
Deutsche Telekom AG | 0.9% |
6 | PIMCO EQUITY SERIES |
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Geographic Breakdown1
United Kingdom | 17.7% | |||||
Japan | 15.4% | |||||
France | 10.3% | |||||
Canada | 9.1% | |||||
Germany | 8.7% | |||||
Australia | 8.6% | |||||
Switzerland | 5.0% | |||||
Netherlands | 4.5% | |||||
Spain | 4.3% | |||||
Italy | 3.8% | |||||
Hong Kong | 2.3% | |||||
Sweden | 1.6% | |||||
Norway | 1.3% | |||||
Singapore | 1.2% | |||||
Denmark | 1.2% | |||||
Israel | 1.0% | |||||
Other | 4.0% |
Sector Breakdown1
Financials | 28.1% | |||||
Energy | 11.4% | |||||
Industrials | 10.3% | |||||
Materials | 9.6% | |||||
Telecommunication Services | 9.1% | |||||
Consumer Discretionary | 8.0% | |||||
Consumer Staples | 7.0% | |||||
Health Care | 7.0% | |||||
Utilities | 6.1% | |||||
Information Technology | 3.4% |
PIMCO RAE Fundamental US Fund
Top 10 Holdings1
AT&T, Inc. | 2.9% | |||||
Exxon Mobil Corp. | 2.6% | |||||
Apple, Inc. | 2.3% | |||||
International Business Machines Corp. | 2.1% | |||||
Intel Corp. | 2.0% | |||||
Chevron Corp. | 1.9% | |||||
Microsoft Corp. | 1.8% | |||||
JPMorgan Chase & Co. | 1.7% |
Top 10 Holdings1 (Cont.)
Hewlett-Packard Co. | 1.3% | |||||
Johnson & Johnson | 1.2% |
Geographic Breakdown1
United States | 99.3% | |||||
Ireland | 0.5% | |||||
Mexico | 0.1% | |||||
Switzerland | 0.1% |
Sector Breakdown1
Information Technology | 18.5% | |||||
Consumer Discretionary | 14.1% | |||||
Health Care | 13.1% | |||||
Financials | 12.7% | |||||
Consumer Staples | 10.1% | |||||
Energy | 9.5% | |||||
Industrials | 8.3% | |||||
Utilities | 5.7% | |||||
Telecommunication Services | 4.9% | |||||
Materials | 3.1% |
PIMCO RAE Fundamental US Small Fund
Top 10 Holdings1
Amedisys, Inc. | 0.6% | |||||
Chemed Corp. | 0.5% | |||||
Hawaiian Holdings, Inc. | 0.5% | |||||
Select Medical Holdings Corp. | 0.5% | |||||
InterDigital, Inc. | 0.4% | |||||
Coty, Inc. ‘A’ | 0.4% | |||||
Inteliquent, Inc. | 0.4% | |||||
Caleres, Inc. | 0.4% | |||||
Penn National Gaming, Inc. | 0.4% | |||||
Finish Line, Inc. ‘A’ | 0.4% |
Geographic Breakdown1
United States | 100.0% |
ANNUAL REPORT | JUNE 30, 2015 | 7 |
Table of Contents
Important Information About the Funds (Cont.)
Sector Breakdown1
Consumer Discretionary | 21.3% | |||||
Information Technology | 19.7% | |||||
Financials | 17.1% | |||||
Industrials | 13.4% | |||||
Health Care | 10.0% | |||||
Materials | 5.6% | |||||
Consumer Staples | 5.0% | |||||
Energy | 4.3% | |||||
Telecommunication Services | 2.0% | |||||
Utilities | 1.6% |
1 | % of Investments, at value as of 06/30/2015. Securities sold short, financial derivative instruments and short-term instruments (with the exception of Central Funds used for cash management purposes), if any, are excluded from the Top Holdings, Geographic and Sector Breakdown tables. |
8 | PIMCO EQUITY SERIES |
Table of Contents
PIMCO RAE Fundamental Emerging Markets Fund
Institutional Class - PEIFX | Class A - PEAFX | |
Class P - PEPFX | Class C - PECFX |
Cumulative Returns Through June 30, 2015
Cumulative Total Return for the period ended June 30, 2015* | ||||||||||||||
1 Year | 5 Year | Fund Inception (05/31/06) | ||||||||||||
PIMCO RAE Fundamental Emerging Markets Fund Institutional Class | -9.68% | 2.84% | 6.24% | |||||||||||
PIMCO RAE Fundamental Emerging Markets Fund Class P | -9.59% | 2.86% | 6.25% | |||||||||||
PIMCO RAE Fundamental Emerging Markets Fund Class A | -9.59% | 2.86% | 6.25% | |||||||||||
PIMCO RAE Fundamental Emerging Markets Fund Class A (adjusted) | -12.98% | 2.08% | 5.80% | |||||||||||
PIMCO RAE Fundamental Emerging Markets Fund Class C | -9.68% | 2.84% | 6.24% | |||||||||||
PIMCO RAE Fundamental Emerging Markets Fund Class C (adjusted) | -10.59% | 2.84% | 6.24% | |||||||||||
MSCI Emerging Markets Index (Net Dividends in USD)± | -5.12% | 3.68% | 5.35% |
All Fund returns are net of fees and expenses.
± The MSCI Emerging Markets Index (Net Dividends in USD) Index is a free float-adjusted market capitalization index that is designed to measure equity market performance of emerging markets. It is not possible to invest directly in the index.
Performance quoted represents past performance. Past performance is not a guarantee or a reliable indicator of future results. Current performance may be lower or higher than performance shown. Investment return and the principal value of an investment will fluctuate. Shares may be worth more or less than original cost when redeemed. Returns shown do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. The adjusted returns take into account the maximum sales charge of 3.75% on Class A shares and 1.00% CDSC on Class C shares. Adjusted returns shown for the periods since May 31, 2006, the date the Fund began operations as a partnership, take into account the maximum sales charge for Class A and Class C shares, respectively. Returns shown for Class C shares are shown with and without the 1.00% CDSC for the one year period only. The Fund’s total annual operating expense ratio as stated in the Fund’s current prospectus, as supplemented to date, is 0.99% for the Institutional Class shares, 1.09% for the Class P shares, 1.34% for the Class A shares and 2.09% for the Class C shares. Details regarding any Fund’s operating expenses can be found in the Fund’s prospectus. For performance current to the most recent month-end, visit www.pimco.com.
* For periods prior to June 5, 2015, the Fund’s performance reflects the performance when the Fund was a partnership, net of actual fees and expenses charged to individual partnership accounts in the aggregate. If the performance had been restated to reflect the applicable fees and expenses of each share class, the performance may have been higher or lower. The Fund began operations as a partnership on May 31, 2006 and, on June 5, 2015, was reorganized into a newly-formed fund that was registered as an investment company under the Investment Company Act of 1940. Prior to the reorganization, the Fund had an investment objective, investment strategies, investment guidelines, and restrictions that were substantially similar to those currently applicable to the Fund; however, the Fund was not registered as an investment company under the Investment Company Act of 1940 and was not subject to its requirements or requirements imposed by the Internal Revenue Code of 1986 which, if applicable, may have adversely affected its performance. The performance of each class of shares will differ as a result of the different levels of fees and expenses applicable to each class of shares.
Investment Objective and Strategy Overview
» | The PIMCO RAE Fundamental Emerging Markets Fund seeks long-term capital appreciation by investing under normal circumstances at least 80% of its assets in investments that are economically tied to emerging market countries. Specifically, under normal circumstances, the Fund will obtain exposure to a portfolio of stocks economically tied to emerging market countries (“RAE Fundamental Emerging Markets Portfolio”). The stocks are selected by the Fund’s subadviser, Research Affiliates, LLC (“Sub-Adviser”), from a broad universe of companies which satisfy certain liquidity and capacity requirements. |
Portfolio Insights
» | The Fund commenced operations on June 5, 2015. |
ANNUAL REPORT | JUNE 30, 2015 | 9 |
Table of Contents
PIMCO RAE Fundamental Global Fund
Institutional Class - PFQIX | Class A - PFQAX | |
Class P - PFQPX | Class C - PFQCX |
A line graph is not included since the Fund has less than six months of performance.
Cumulative Total Return for the period ended June 30, 2015 | ||||
Fund Inception (06/05/15) | ||||
PIMCO RAE Fundamental Global Fund Institutional Class | -1.40 | % | ||
PIMCO RAE Fundamental Global Fund Class P | -1.50 | % | ||
PIMCO RAE Fundamental Global Fund Class A | -1.50 | % | ||
PIMCO RAE Fundamental Global Fund Class A (adjusted) | -5.20 | % | ||
PIMCO RAE Fundamental Global Fund Class C | -1.60 | % | ||
PIMCO RAE Fundamental Global Fund Class C (adjusted) | -2.58 | % | ||
MSCI All Country World Index± | -1.23 | % |
All Fund returns are net of fees and expenses.
± 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 Index consists of 46 country indices comprising 23 developed and 23 emerging market country indices. It is not possible to invest directly in an unmanaged index.
Performance quoted represents past performance. Past performance is not a guarantee or a reliable indicator of future results. Current performance may be lower or higher than performance shown. Investment return and the principal value of an investment will fluctuate. Shares may be worth more or less than original cost when redeemed. Returns shown do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. The adjusted returns take into account the maximum sales charge of 3.75% on Class A shares and 1.00% CDSC on Class C shares. The Fund’s total annual operating expense ratio as stated in the Fund’s current prospectus, as supplemented to date, is 1.38% for the Institutional Class shares, 1.48% for the Class P shares, 1.73% for the Class A shares and 2.48% for the Class C shares. Details regarding any Fund’s operating expenses can be found in the Fund’s prospectus. For performance current to the most recent month-end, visit www.pimco.com.
Investment Objective and Strategy Overview
» | The PIMCO RAE Fundamental Global Fund seeks long-term capital appreciation by investing under normal circumstances substantially all of its assets in (i) Institutional Class shares of the PIMCO RAE Fundamental US Fund (“US Fund”), the PIMCO RAE Fundamental International Fund (“International Fund”), and the PIMCO RAE Fundamental Emerging Markets Fund (“Emerging Markets Fund”) (together, the US Fund, the International Fund and the Emerging Markets Fund are referred to as the “Underlying Funds”) and (ii) equity securities that are eligible investments for the Underlying Funds. Under normal circumstances, each of the Underlying Funds obtains exposure to a portfolio of stocks (each, a “RAE Fundamental Portfolio”). The stocks are selected by the Fund’s sub-adviser, Research Affiliates, LLC (“Sub-Adviser”), from a broad universe of companies which satisfy certain liquidity and capacity requirements. |
Portfolio Insights
» | The Fund commenced operations on June 5, 2015. |
10 | PIMCO EQUITY SERIES |
Table of Contents
PIMCO RAE Fundamental Global ex-US Fund
Institutional Class - PZRIX | Class A - PZRAX | |
Class P - PZRPX | Class C - PZRCX |
A line graph is not included since the Fund has less than six months of performance.
Cumulative Total Return for the period ended June 30, 2015 | ||||
Fund Inception (06/05/15) | ||||
PIMCO RAE Fundamental Global ex-US Fund Institutional Class | -1.40 | % | ||
PIMCO RAE Fundamental Global ex-US Fund Class P | -1.40 | % | ||
PIMCO RAE Fundamental Global ex-US Fund Class A | -1.40 | % | ||
PIMCO RAE Fundamental Global ex-US Fund Class A (adjusted) | -5.10 | % | ||
PIMCO RAE Fundamental Global ex-US Fund Class C | -1.50 | % | ||
PIMCO RAE Fundamental Global ex-US Fund Class C (adjusted) | -2.49 | % | ||
MSCI All Country World ex US Index± | -1.11 | % |
All Fund returns are net of fees and expenses.
± The MSCI All Country World ex US 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 Index consists of 45 country indices comprising 22 developed and 23 emerging market country indices. It is not possible to invest directly in an unmanaged index.
Performance quoted represents past performance. Past performance is not a guarantee or a reliable indicator of future results. Current performance may be lower or higher than performance shown. Investment return and the principal value of an investment will fluctuate. Shares may be worth more or less than original cost when redeemed. Returns shown do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. The adjusted returns take into account the maximum sales charge of 3.75% on Class A shares and 1.00% CDSC on Class C shares. The Fund’s total annual operating expense ratio as stated in the Fund’s current prospectus, as supplemented to date, is 1.41% for the Institutional Class shares, 1.51% for the Class P shares, 1.76% for the Class A shares and 2.51% for the Class C shares. Details regarding any Fund’s operating expenses can be found in the Fund’s prospectus. For performance current to the most recent month-end, visit www.pimco.com.
Investment Objective and Strategy Overview
» | The PIMCO RAE Fundamental Global ex-US Fund seeks long-term capital appreciation by investing under normal circumstances substantially all of its assets in (i) Institutional Class shares of the PIMCO RAE Fundamental International Fund (“International Fund”) and the PIMCO RAE Fundamental Emerging Markets Fund (“Emerging Markets Fund”) (together, the International Fund and the Emerging Markets Fund are referred to as the “Underlying Funds”), (ii) equity securities of small companies economically tied to non-U.S. countries, and (iii) securities that are eligible investments for the Underlying Funds. Under normal circumstances, each of the Underlying Funds obtains exposure to a portfolio of stocks (each, a “RAE Fundamental Portfolio”). The stocks are selected by the Fund’s sub-adviser, Research Affiliates, LLC (“Sub-Adviser”), from a broad universe of companies which satisfy certain liquidity and capacity requirements. |
Portfolio Insights
» | The Fund commenced operations on June 5, 2015. |
ANNUAL REPORT | JUNE 30, 2015 | 11 |
Table of Contents
PIMCO RAE Fundamental International Fund
Institutional Class - PPYIX | Class A - PPYAX | |
Class P - PPYPX | Class C - PPYCX | |
A line graph is not included since the Fund has less than six months of performance.
Cumulative Total Return for the period ended June 30, 2015 | ||||
Fund Inception (06/05/15) | ||||
PIMCO RAE Fundamental International Fund Institutional Class | -1.70 | % | ||
PIMCO RAE Fundamental International Fund Class P | -1.70 | % | ||
PIMCO RAE Fundamental International Fund Class A | -1.70 | % | ||
PIMCO RAE Fundamental International Fund Class A (adjusted) | -5.39 | % | ||
PIMCO RAE Fundamental International Fund Class C | -1.70 | % | ||
PIMCO RAE Fundamental International Fund Class C (adjusted) | -2.68 | % | ||
MSCI EAFE Net Dividend Index (USD Unhedged)± | -1.14 | % |
All Fund returns are net of fees and expenses.
± MSCI EAFE Net Dividend Index (USD Unhedged) is an unmanaged index of issuers in countries of Europe, Australia, and the Far East represented in U.S. Dollars on a unhedged basis. It is not possible to invest directly in the index.
Performance quoted represents past performance. Past performance is not a guarantee or a reliable indicator of future results. Current performance may be lower or higher than performance shown. Investment return and the principal value of an investment will fluctuate. Shares may be worth more or less than original cost when redeemed. Returns shown do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. The adjusted returns take into account the maximum sales charge of 3.75% on Class A shares and 1.00% CDSC on Class C shares. The Fund’s total annual operating expense ratio as stated in the Fund’s current prospectus, as supplemented to date, is 0.65% for the Institutional Class shares, 0.75% for the Class P shares, 1.00% for the Class A shares and 1.75% for the Class C shares. Details regarding any Fund’s operating expenses can be found in the Fund’s prospectus. For performance current to the most recent month-end, visit www.pimco.com.
Investment Objective and Strategy Overview
» | The PIMCO RAE Fundamental International Fund seeks long-term capital appreciation by investing under normal circumstances by obtaining exposure to a portfolio of stocks economically tied to at least three foreign (non-U.S.) countries (“RAE Fundamental International Portfolio”). The stocks are selected by the Fund’s sub-adviser, Research Affiliates, LLC (“Sub-Adviser”), from a broad universe of companies which satisfy certain liquidity and capacity requirements. |
Portfolio Insights
» | The Fund commenced operations on June 5, 2015. |
12 | PIMCO EQUITY SERIES |
Table of Contents
Institutional Class - PKAIX | Class A - PKAAX | |
Class P - PKAPX | Class C - PKACX |
Cumulative Returns Through June 30, 2015
Cumulative Total Return for the period ended June 30, 2015** | ||||||||||||||||||
1 Year | 5 Year | 10 Year | Fund Inception (12/22/04) | |||||||||||||||
![]() | PIMCO RAE Fundamental US Fund Institutional Class | 3.28% | 17.49% | 8.30% | 7.95% | |||||||||||||
PIMCO RAE Fundamental US Fund Class P | 3.28% | 17.49% | 8.30% | 7.95% | ||||||||||||||
PIMCO RAE Fundamental US Fund Class A | 3.39% | 17.51% | 8.31% | 7.96% | ||||||||||||||
PIMCO RAE Fundamental US Fund Class A (adjusted) | -0.49% | 16.61% | 7.90% | 7.57% | ||||||||||||||
PIMCO RAE Fundamental US Fund Class C | 3.28% | 17.49% | 8.30% | 7.95% | ||||||||||||||
PIMCO RAE Fundamental US Fund Class C (adjusted) | 2.28% | 17.49% | 8.30% | 7.95% | ||||||||||||||
![]() | S&P 500 Index± | 7.42% | 17.34% | 7.89% | 7.42% | * |
All Fund returns are net of fees and expenses.
* Average annual total return since 12/31/2004.
± S&P 500 Index is an unmanaged market index generally considered representative of the stock market as a whole. The Index focuses on the large-cap segment of the U.S. equities market. It is not possible to invest directly in an unmanaged index.
Performance quoted represents past performance. Past performance is not a guarantee or a reliable indicator of future results. Current performance may be lower or higher than performance shown. Investment return and the principal value of an investment will fluctuate. Shares may be worth more or less than original cost when redeemed. Returns shown do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. The adjusted returns take into account the maximum sales charge of 3.75% on Class A shares and 1.00% CDSC on Class C shares. Adjusted returns shown for the periods since December 22, 2004, the date the Fund began operations as a partnership, take into account the maximum sales charge for Class A and Class C shares, respectively. Returns shown for Class C shares are shown with and without the 1.00% CDSC for the one year period only. The Fund’s total annual operating expense ratio as stated in the Fund’s current prospectus, as supplemented to date, is 0.52% for the Institutional Class shares, 0.62% for the Class P shares, 0.92% for the Class A shares and 1.67% for the Class C shares. Details regarding any Fund’s operating expenses can be found in the Fund’s prospectus. For performance current to the most recent month-end, visit www.pimco.com.
** For periods prior to June 5, 2015, the Fund’s performance reflects the performance when the Fund was a partnership, net of actual fees and expenses charged to individual partnership accounts in the aggregate. If the performance had been restated to reflect the applicable fees and expenses of each share class, the performance may have been higher or lower. The Fund began operations as a partnership on December 22, 2004 and, on June 5, 2015, was reorganized into a newly-formed fund that was registered as an investment company under the Investment Company Act of 1940. Prior to the reorganization, the Fund had an investment objective, investment strategies, investment guidelines, and restrictions that were substantially similar to those currently applicable to the Fund; however, the Fund was not registered as an investment company under the Investment Company Act of 1940 and was not subject to its requirements or requirements imposed by the Internal Revenue Code of 1986 which, if applicable, may have adversely affected its performance. The performance of each class of shares will differ as a result of the different levels of fees and expenses applicable to each class of shares.
Investment Objective and Strategy Overview
» | The PIMCO RAE Fundamental US Fund seeks long-term capital appreciation by investing under normal circumstances at least 80% of its assets in securities of U.S. companies. Specifically, under normal circumstances, the Fund will obtain exposure to a portfolio of stocks of U.S. companies (“RAE Fundamental US Portfolio”). The stocks are selected by the Fund’s sub-adviser, Research Affiliates, LLC (“Sub-Adviser”), from a broad universe of companies which satisfy certain liquidity and capacity requirements. |
Portfolio Insights
» | The Fund commenced operations on June 5, 2015. |
ANNUAL REPORT | JUNE 30, 2015 | 13 |
Table of Contents
PIMCO RAE Fundamental US Small Fund
Institutional Class - PMJIX | Class A - PMJAX | |
Class P - PMJPX | Class C - PMJCX |
Cumulative Returns Through June 30, 2015
Cumulative Total Return for the period ended June 30, 2015* | ||||||||||||||
1 Year | 5 Year | Fund Inception (09/29/05) | ||||||||||||
![]() | PIMCO RAE Fundamental US Small Fund Institutional Class | 5.10% | 17.42% | 8.64% | ||||||||||
PIMCO RAE Fundamental US Small Fund Class P | 5.00% | 17.40% | 8.63% | |||||||||||
PIMCO RAE Fundamental US Small Fund Class A | 5.00% | 17.40% | 8.63% | |||||||||||
PIMCO RAE Fundamental US Small Fund Class A (adjusted) | 1.06% | 16.50% | 8.21% | |||||||||||
PIMCO RAE Fundamental US Small Fund Class C | 4.89% | 17.37% | 8.62% | |||||||||||
PIMCO RAE Fundamental US Small Fund Class C (adjusted) | 3.89% | 17.37% | 8.62% | |||||||||||
![]() | Russell 2000® Index± | 6.49% | 17.08% | 8.12% |
All Fund returns are net of fees and expenses.
± Russell 2000® Index is composed of 2,000 of the smallest companies in the Russell 3000 Index and is considered to be representative of the small cap market in general. It is not possible to invest directly in an unmanaged index.
Performance quoted represents past performance. Past performance is not a guarantee or a reliable indicator of future results. Current performance may be lower or higher than performance shown. Investment return and the principal value of an investment will fluctuate. Shares may be worth more or less than original cost when redeemed. Returns shown do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. The adjusted returns take into account the maximum sales charge of 3.75% on Class A shares and 1.00% CDSC on Class C shares. Adjusted returns shown for the periods since September 29, 2005, the date the Fund began operations as a partnership, take into account the maximum sales charge for Class A and Class C shares, respectively. Returns shown for Class C shares are shown with and without the 1.00% CDSC for the one year period only. The Fund’s total annual operating expense ratio as stated in the Fund’s current prospectus, as supplemented to date, is 0.68% for the Institutional Class shares, 0.78% for the Class P shares, 1.08% for the Class A shares and 1.83% for the Class C shares. Details regarding any Fund’s operating expenses can be found in the Fund’s prospectus. For performance current to the most recent month-end, visit www.pimco.com.
* For periods prior to June 5, 2015, the Fund’s performance reflects the performance when the Fund was a partnership, net of actual fees and expenses charged to individual partnership accounts in the aggregate. If the performance had been restated to reflect the applicable fees and expenses of each share class, the performance may have been higher or lower. The Fund began operations as a partnership on September 29, 2005 and, on June 5, 2015, was reorganized into a newly-formed fund that was registered as an investment company under the Investment Company Act of 1940. Prior to the reorganization, the Fund had an investment objective, investment strategies, investment guidelines, and restrictions that were substantially similar to those currently applicable to the Fund; however, the Fund was not registered as an investment company under the Investment Company Act of 1940 and was not subject to its requirements or requirements imposed by the Internal Revenue Code of 1986 which, if applicable, may have adversely affected its performance. The performance of each class of shares will differ as a result of the different levels of fees and expenses applicable to each class of shares.
Investment Objective and Strategy Overview
» | The PIMCO RAE Fundamental US Small Fund seeks long-term capital appreciation by investing under normal circumstances at least 80% of its assets in securities of U.S. small companies. Specifically, under normal circumstances, the Fund will obtain exposure to a portfolio of stocks of U.S. small companies (“RAE Fundamental US Small Portfolio”). The stocks are selected by the Fund’s sub-adviser, Research Affiliates, LLC (“Sub-Adviser”), from a broad universe of companies which satisfy certain liquidity and capacity requirements. |
Portfolio Insights
» | The Fund commenced operations on June 5, 2015. |
14 | PIMCO EQUITY SERIES |
Table of Contents
Example
As a shareholder of a Fund, you incur two types of costs: (1) transaction costs, including sales charges (loads) on purchase payments and exchange fees and (2) ongoing costs, including management fees, distribution and/or service (12b-1) fees, and other Fund expenses. The Example is intended to help you understand your ongoing costs (in dollars) of investing in a Fund and to compare these costs with the ongoing costs of investing in other mutual funds.
The Example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period indicated, which for all Funds and share classes is from January 1, 2015 to June 30, 2015 unless noted otherwise in the table and footnotes below.
Actual Expenses
The information in the table under the heading “Actual” provides information about actual account values and actual expenses. You may use the information in these columns, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = $8.60), then multiply the result by the number in the appropriate column for your share class, in the column entitled “Expenses Paid During Period” to estimate the expenses you paid on your account during this period.
Hypothetical Example for Comparison Purposes
The information in the table under the heading “Hypothetical (5% return before expenses)” provides information about hypothetical account values and hypothetical expenses based on a Fund’s actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Fund’s actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in a Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transactional costs, such as sales charges (loads) on purchase payments and exchange fees. Therefore, the information under the heading “Hypothetical (5% return before expenses)” is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.
Expense ratios may vary from period to period because of various factors such as an increase in expenses that are not covered by the management fees, such as fees and expenses of the independent trustees and their counsel, extraordinary expenses and interest expense.
Actual | Hypothetical (5% return before expenses) | |||||||||||||||||||||||||||||||||
Beginning Account Value (01/01/15)(a) | Ending Account Value (06/30/15) | Expenses Paid During Period(b) | Beginning Account Value (01/01/15) | Ending Account Value (06/30/15) | Expenses Paid During Period | Net Annualized Expense Ratio* | ||||||||||||||||||||||||||||
PIMCO RAE Fundamental Emerging Markets Fund** | ||||||||||||||||||||||||||||||||||
Institutional Class | $ | 1,000.00 | $ | 992.40 | $ | 0.47 | $ | 1,000.00 | $ | 1,020.96 | $ | 3.74 | 0.75 | % | ||||||||||||||||||||
Class P | 1,000.00 | 992.90 | 0.53 | 1,000.00 | 1,020.47 | 4.23 | 0.85 | |||||||||||||||||||||||||||
Class A | 1,000.00 | 991.90 | 0.69 | 1,000.00 | 1,019.23 | 5.48 | 1.10 | |||||||||||||||||||||||||||
Class C | 1,000.00 | 987.70 | 1.16 | 1,000.00 | 1,015.53 | 9.19 | 1.85 | |||||||||||||||||||||||||||
PIMCO RAE Fundamental Global Fund | ||||||||||||||||||||||||||||||||||
Institutional Class | $ | 1,000.00 | $ | 986.00 | $ | 0.03 | $ | 1,000.00 | $ | 1,024.46 | $ | 0.20 | 0.04 | % | ||||||||||||||||||||
Class P | 1,000.00 | 985.00 | 0.09 | 1,000.00 | 1,023.97 | 0.70 | 0.14 | |||||||||||||||||||||||||||
Class A | 1,000.00 | 985.00 | 0.24 | 1,000.00 | 1,022.73 | 1.95 | 0.39 | |||||||||||||||||||||||||||
Class C | 1,000.00 | 984.00 | 0.71 | 1,000.00 | 1,019.04 | 5.68 | 1.14 | |||||||||||||||||||||||||||
PIMCO RAE Fundamental Global ex-US Fund | ||||||||||||||||||||||||||||||||||
Institutional Class | $ | 1,000.00 | $ | 986.00 | $ | 0.01 | $ | 1,000.00 | $ | 1,024.61 | $ | 0.05 | 0.01 | % | ||||||||||||||||||||
Class P | 1,000.00 | 986.00 | 0.07 | 1,000.00 | 1,024.12 | 0.55 | 0.11 | |||||||||||||||||||||||||||
Class A | 1,000.00 | 986.00 | 0.23 | 1,000.00 | 1,022.88 | 1.80 | 0.36 | |||||||||||||||||||||||||||
Class C | 1,000.00 | 985.00 | 0.70 | 1,000.00 | 1,019.18 | 5.53 | 1.11 |
ANNUAL REPORT | JUNE 30, 2015 | 15 |
Table of Contents
Expense Examples (Cont.)
Actual | Hypothetical (5% return before expenses) | |||||||||||||||||||||||||||||||||
Beginning Account Value (01/01/15)(a) | Ending Account Value (06/30/15) | Expenses Paid During Period(b) | Beginning Account Value (01/01/15) | Ending Account Value (06/30/15) | Expenses Paid During Period | Net Annualized Expense Ratio* | ||||||||||||||||||||||||||||
PIMCO RAE Fundamental International Fund | ||||||||||||||||||||||||||||||||||
Institutional Class | $ | 1,000.00 | $ | 983.00 | $ | 0.31 | $ | 1,000.00 | $ | 1,022.19 | $ | 2.49 | 0.50 | % | ||||||||||||||||||||
Class P | 1,000.00 | 983.00 | 0.37 | 1,000.00 | 1,021.70 | 2.99 | 0.60 | |||||||||||||||||||||||||||
Class A | 1,000.00 | 983.00 | 0.53 | 1,000.00 | 1,020.47 | 4.23 | 0.85 | |||||||||||||||||||||||||||
Class C | 1,000.00 | 983.00 | 1.00 | 1,000.00 | 1,016.77 | 7.96 | 1.60 | |||||||||||||||||||||||||||
PIMCO RAE Fundamental US Fund** | ||||||||||||||||||||||||||||||||||
Institutional Class | $ | 1,000.00 | $ | 994.50 | $ | 0.25 | $ | 1,000.00 | $ | 1,022.68 | $ | 2.00 | 0.40 | % | ||||||||||||||||||||
Class P | 1,000.00 | 994.10 | 0.31 | 1,000.00 | 1,022.19 | 2.49 | 0.50 | |||||||||||||||||||||||||||
Class A | 1,000.00 | 993.80 | 0.50 | 1,000.00 | 1,020.71 | 3.99 | 0.80 | |||||||||||||||||||||||||||
Class C | 1,000.00 | 989.70 | 0.97 | 1,000.00 | 1,017.01 | 7.71 | 1.55 | |||||||||||||||||||||||||||
PIMCO RAE Fundamental US Small Fund** | ||||||||||||||||||||||||||||||||||
Institutional Class | $ | 1,000.00 | $ | 1,024.90 | $ | 0.32 | $ | 1,000.00 | $ | 1,022.19 | $ | 2.49 | 0.50 | % | ||||||||||||||||||||
Class P | 1,000.00 | 1,023.40 | 0.38 | 1,000.00 | 1,021.70 | 2.99 | 0.60 | |||||||||||||||||||||||||||
Class A | 1,000.00 | 1,022.10 | 0.57 | 1,000.00 | 1,020.22 | 4.48 | 0.90 | |||||||||||||||||||||||||||
Class C | 1,000.00 | 1,017.80 | 1.05 | 1,000.00 | 1,016.52 | 8.20 | 1.65 |
(a) The Beginning Account Value is reflective as of 06/05/15 for Actual expense, which is the inception date of the Funds.
(b) Expenses Paid During Period in the Actual expense section are equal to the Net Annualized Expense Ratio for the Class, multiplied by the average account value over the period, multiplied by 26/365 (to reflect the period since inception date of 06/05/15). Hypothetical expenses reflect amounts as if the Class had been operational for the entire fiscal half year.
* The Net Annualized Expense Ratio is reflective of any applicable waivers related to contractual agreements for contractual fee waivers or voluntary fee waivers. Details regarding fee waivers can be found in Note 6 in the Notes to Financial Statements.
** For the period from January 1, 2015 to June 5, 2015, the Fund’s performance reflects the performance when the Fund was a partnership, net of actual fees and expenses charged to individual partnership accounts in the aggregate. If the performance had been restated to reflect the applicable fees and expenses of each share class, the performance may have been higher or lower. The Fund began operations as a partnership prior to January 1, 2015 and, on June 5, 2015, was reorganized into a newly-formed fund that was registered as an investment company under the Investment Company Act of 1940. Prior to the reorganization, the Fund had an investment objective, investment strategies, investment guidelines, and restrictions that were substantially similar to those currently applicable to the Fund; however, the Fund was not registered as an investment company under the Investment Company Act of 1940 and was not subject to its requirements or requirements imposed by the Internal Revenue Code of 1986 which, if applicable, may have adversely affected its performance. The performance of each class of shares will differ as a result of the different levels of fees and expenses applicable to each class of shares.
16 | PIMCO EQUITY SERIES |
Table of Contents
(THIS PAGE INTENTIONALLY LEFT BLANK)
ANNUAL REPORT | JUNE 30, 2015 | 17 |
Table of Contents
Selected Per Share Data for Period Ended: | Net Asset Value Beginning of Period | Net Investment Income (Loss) (a) | Net Realized/ Unrealized Loss | Total from Investment Operations | | Distributions from Net Realized Capital Gains | Total Distributions | |||||||||||||||||||||
PIMCO RAE Fundamental Emerging Markets Fund | ||||||||||||||||||||||||||||
Institutional Class | ||||||||||||||||||||||||||||
06/05/2015 - 06/30/2015 | $ | 10.00 | $ | 0.06 | $ | (0.11 | ) | $ | (0.05 | ) | $ | 0.00 | $ | 0.00 | $ | 0.00 | ||||||||||||
Class P | ||||||||||||||||||||||||||||
06/05/2015 - 06/30/2015 | 10.00 | 0.06 | (0.10 | ) | (0.04 | ) | 0.00 | 0.00 | 0.00 | |||||||||||||||||||
Class A | ||||||||||||||||||||||||||||
06/05/2015 - 06/30/2015 | 10.00 | 0.08 | (0.12 | ) | (0.04 | ) | 0.00 | 0.00 | 0.00 | |||||||||||||||||||
Class C | ||||||||||||||||||||||||||||
06/05/2015 - 06/30/2015 | 10.00 | 0.06 | (0.11 | ) | (0.05 | ) | 0.00 | 0.00 | 0.00 | |||||||||||||||||||
PIMCO RAE Fundamental Global Fund | ||||||||||||||||||||||||||||
Institutional Class | ||||||||||||||||||||||||||||
06/05/2015 - 06/30/2015 | $ | 10.00 | $ | (0.00 | )^ | $ | (0.14 | ) | $ | (0.14 | ) | $ | 0.00 | $ | 0.00 | $ | 0.00 | |||||||||||
Class P | ||||||||||||||||||||||||||||
06/05/2015 - 06/30/2015 | 10.00 | (0.00 | )^ | (0.15 | ) | (0.15 | ) | 0.00 | 0.00 | 0.00 | ||||||||||||||||||
Class A | ||||||||||||||||||||||||||||
06/05/2015 - 06/30/2015 | 10.00 | (0.00 | )^ | (0.15 | ) | (0.15 | ) | 0.00 | 0.00 | 0.00 | ||||||||||||||||||
Class C | ||||||||||||||||||||||||||||
06/05/2015 - 06/30/2015 | 10.00 | (0.01 | ) | (0.15 | ) | (0.16 | ) | 0.00 | 0.00 | 0.00 | ||||||||||||||||||
PIMCO RAE Fundamental Global ex-US Fund | ||||||||||||||||||||||||||||
Institutional Class | ||||||||||||||||||||||||||||
06/05/2015 - 06/30/2015 | $ | 10.00 | $ | (0.00 | )^ | $ | (0.14 | ) | $ | (0.14 | ) | $ | 0.00 | $ | 0.00 | $ | 0.00 | |||||||||||
Class P | ||||||||||||||||||||||||||||
06/05/2015 - 06/30/2015 | 10.00 | (0.00 | )^ | (0.14 | ) | (0.14 | ) | 0.00 | 0.00 | 0.00 | ||||||||||||||||||
Class A | ||||||||||||||||||||||||||||
06/05/2015 - 06/30/2015 | 10.00 | (0.00 | )^ | (0.14 | ) | (0.14 | ) | 0.00 | 0.00 | 0.00 | ||||||||||||||||||
Class C | ||||||||||||||||||||||||||||
06/05/2015 - 06/30/2015 | 10.00 | (0.01 | ) | (0.14 | ) | (0.15 | ) | 0.00 | 0.00 | 0.00 | ||||||||||||||||||
PIMCO RAE Fundamental International Fund | ||||||||||||||||||||||||||||
Institutional Class | ||||||||||||||||||||||||||||
06/05/2015 - 06/30/2015 | $ | 10.00 | $ | 0.02 | $ | (0.19 | ) | $ | (0.17 | ) | $ | 0.00 | $ | 0.00 | $ | 0.00 | ||||||||||||
Class P | ||||||||||||||||||||||||||||
06/05/2015 - 06/30/2015 | 10.00 | 0.02 | (0.19 | ) | (0.17 | ) | 0.00 | 0.00 | 0.00 | |||||||||||||||||||
Class A | ||||||||||||||||||||||||||||
06/05/2015 - 06/30/2015 | 10.00 | 0.01 | (0.18 | ) | (0.17 | ) | 0.00 | 0.00 | 0.00 | |||||||||||||||||||
Class C | ||||||||||||||||||||||||||||
06/05/2015 - 06/30/2015 | 10.00 | 0.01 | (0.18 | ) | (0.17 | ) | 0.00 | 0.00 | 0.00 | |||||||||||||||||||
PIMCO RAE Fundamental US Fund | ||||||||||||||||||||||||||||
Institutional Class | ||||||||||||||||||||||||||||
06/05/2015 - 06/30/2015 | $ | 10.00 | $ | 0.01 | $ | (0.16 | ) | $ | (0.15 | ) | $ | 0.00 | $ | 0.00 | $ | 0.00 | ||||||||||||
Class P | ||||||||||||||||||||||||||||
06/05/2015 - 06/30/2015 | 10.00 | 0.01 | (0.16 | ) | (0.15 | ) | 0.00 | 0.00 | 0.00 | |||||||||||||||||||
Class A | ||||||||||||||||||||||||||||
06/05/2015 - 06/30/2015 | 10.00 | 0.01 | (0.15 | ) | (0.14 | ) | 0.00 | 0.00 | 0.00 | |||||||||||||||||||
Class C | ||||||||||||||||||||||||||||
06/05/2015 - 06/30/2015 | 10.00 | 0.01 | (0.16 | ) | (0.15 | ) | 0.00 | 0.00 | 0.00 | |||||||||||||||||||
PIMCO RAE Fundamental US Small Fund | ||||||||||||||||||||||||||||
Institutional Class | ||||||||||||||||||||||||||||
06/05/2015 - 06/30/2015 | $ | 10.00 | $ | 0.01 | $ | (0.08 | ) | $ | (0.07 | ) | $ | 0.00 | $ | 0.00 | $ | 0.00 | ||||||||||||
Class P | ||||||||||||||||||||||||||||
06/05/2015 - 06/30/2015 | 10.00 | 0.01 | (0.09 | ) | (0.08 | ) | 0.00 | 0.00 | 0.00 | |||||||||||||||||||
Class A | ||||||||||||||||||||||||||||
06/05/2015 - 06/30/2015 | 10.00 | 0.01 | (0.09 | ) | (0.08 | ) | 0.00 | 0.00 | 0.00 | |||||||||||||||||||
Class C | ||||||||||||||||||||||||||||
06/05/2015 - 06/30/2015 | 10.00 | 0.00 | ^ | (0.09 | ) | (0.09 | ) | 0.00 | 0.00 | 0.00 |
* | Annualized |
^ | Reflects an amount rounding to less than one cent. |
(a) | Per share amounts based on average numbers of shares outstanding during the period. |
18 | PIMCO EQUITY SERIES | See Accompanying Notes |
Table of Contents
Net Asset Value End of Period | Total Return | Net Assets End of Period (000s) | Ratio of Expenses to Average Net Assets | Ratio of Expenses to Average Net Assets Excluding Waivers | Ratio of Expenses to Average Net Assets Excluding Interest Expense | Ratio of Expenses to Average Net Assets Excluding Interest Expense and Waivers | Ratio of Net Investment Income (Loss) to Average Net Assets | Portfolio Turnover Rate | ||||||||||||||||||||||||||
$ | 9.95 | (0.50 | )% | $ | 199,378 | 0.75 | %* | 0.98 | %* | 0.75 | %* | 0.98 | %* | 10.11 | %* | 7 | % | |||||||||||||||||
9.96 | (0.40 | ) | 10 | 0.85 | * | 1.08 | * | 0.85 | * | 1.08 | * | 10.09 | * | 7 | ||||||||||||||||||||
9.96 | (0.40 | ) | 19 | 1.10 | * | 1.33 | * | 1.10 | * | 1.33 | * | 13.46 | * | 7 | ||||||||||||||||||||
9.95 | (0.50 | ) | 10 | 1.85 | * | 2.08 | * | 1.85 | * | 2.08 | * | 9.08 | * | 7 | ||||||||||||||||||||
$ | 9.86 | (1.40 | )% | $ | 38,160 | 0.04 | %* | 0.86 | %* | 0.04 | %* | 0.86 | %* | (0.04 | )%* | 2 | % | |||||||||||||||||
9.85 | (1.50 | ) | 10 | 0.14 | * | 0.96 | * | 0.14 | * | 0.96 | * | (0.14 | )* | 2 | ||||||||||||||||||||
9.85 | (1.50 | ) | 10 | 0.39 | * | 1.21 | * | 0.39 | * | 1.21 | * | (0.40 | )* | 2 | ||||||||||||||||||||
9.84 | (1.60 | ) | 17 | 1.14 | * | 1.96 | * | 1.14 | * | 1.96 | * | (1.06 | )* | 2 | ||||||||||||||||||||
$ | 9.86 | (1.40 | )% | $ | 70,077 | 0.01 | %* | 0.84 | %* | 0.01 | %* | 0.84 | %* | (0.02 | )%* | 2 | % | |||||||||||||||||
9.86 | (1.40 | ) | 10 | 0.11 | * | 0.94 | * | 0.11 | * | 0.94 | * | (0.11 | )* | 2 | ||||||||||||||||||||
9.86 | (1.40 | ) | 10 | 0.36 | * | 1.19 | * | 0.36 | * | 1.19 | * | (0.37 | )* | 2 | ||||||||||||||||||||
9.85 | (1.50 | ) | 10 | 1.11 | * | 1.94 | * | 1.11 | * | 1.94 | * | (1.12 | )* | 2 | ||||||||||||||||||||
$ | 9.83 | (1.70 | )% | $ | 151,532 | 0.50 | %* | 0.64 | %* | 0.50 | %* | 0.64 | %* | 2.68 | %* | 7 | % | |||||||||||||||||
9.83 | (1.70 | ) | 10 | 0.60 | * | 0.74 | * | 0.60 | * | 0.74 | * | 2.57 | * | 7 | ||||||||||||||||||||
9.83 | (1.70 | ) | 10 | 0.85 | * | 0.99 | * | 0.85 | * | 0.99 | * | 2.32 | * | 7 | ||||||||||||||||||||
9.83 | (1.70 | ) | 10 | 1.60 | * | 1.74 | * | 1.60 | * | 1.74 | * | 1.56 | * | 7 | ||||||||||||||||||||
$ | 9.85 | (1.50 | )% | $ | 447,755 | 0.40 | %* | 0.51 | %* | 0.40 | %* | 0.51 | %* | 2.03 | %* | 5 | % | |||||||||||||||||
9.85 | (1.50 | ) | 10 | 0.50 | * | 0.61 | * | 0.50 | * | 0.61 | * | 1.92 | * | 5 | ||||||||||||||||||||
9.86 | (1.40 | ) | 14 | 0.80 | * | 0.91 | * | 0.80 | * | 0.91 | * | 1.67 | * | 5 | ||||||||||||||||||||
9.85 | (1.50 | ) | 10 | 1.55 | * | 1.66 | * | 1.55 | * | 1.66 | * | 0.86 | * | 5 | ||||||||||||||||||||
$ | 9.93 | (0.70 | )% | $ | 46,426 | 0.50 | %* | 0.73 | %* | 0.50 | %* | 0.73 | %* | 1.44 | %* | 9 | % | |||||||||||||||||
9.92 | (0.80 | ) | 10 | 0.60 | * | 0.83 | * | 0.60 | * | 0.83 | * | 1.33 | * | 9 | ||||||||||||||||||||
9.92 | (0.80 | ) | 10 | 0.90 | * | 1.13 | * | 0.90 | * | 1.13 | * | 1.04 | * | 9 | ||||||||||||||||||||
9.91 | (0.90 | ) | 10 | 1.65 | * | 1.88 | * | 1.65 | * | 1.88 | * | 0.28 | * | 9 |
ANNUAL REPORT | JUNE 30, 2015 | 19 |
Table of Contents
Statements of Assets and Liabilities
(Amounts in thousands†, except per share amounts) | PIMCO RAE Fundamental Emerging Markets Fund | PIMCO RAE Fundamental Global Fund | PIMCO RAE Fundamental Global ex-US Fund | PIMCO RAE Fundamental International Fund | PIMCO RAE Fundamental US Fund | PIMCO RAE Fundamental US Small Fund | ||||||||||||||||||
Assets: | ||||||||||||||||||||||||
Investments, at value | ||||||||||||||||||||||||
Investments in securities | $ | 196,234 | $ | 0 | $ | 0 | $ | 150,459 | $ | 445,500 | $ | 46,172 | ||||||||||||
Investments in Affiliates | 0 | 38,160 | 70,037 | 0 | 0 | 0 | ||||||||||||||||||
Cash | 0 | 10 | 12 | 608 | 2,391 | 252 | ||||||||||||||||||
Foreign currency, at value | 86 | 0 | 0 | 76 | 0 | 0 | ||||||||||||||||||
Receivable for investments sold | 0 | 0 | 0 | 2,007 | 1 | 1 | ||||||||||||||||||
Receivable for investments in Affiliates sold | 0 | 895 | 1,645 | 0 | 0 | 0 | ||||||||||||||||||
Receivable for Fund shares sold | 1,898 | 0 | 0 | 0 | 557 | 0 | ||||||||||||||||||
Interest and dividends receivable | 2,006 | 1 | 0 | 846 | 582 | 45 | ||||||||||||||||||
Receivable from PIMCO | 548 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||
Other assets | 10,067 | 0 | 0 | 188 | 172 | 1 | ||||||||||||||||||
Total Assets | 210,839 | 39,066 | 71,694 | 154,184 | 449,203 | 46,471 | ||||||||||||||||||
Liabilities: | ||||||||||||||||||||||||
Payable for investments purchased | $ | 2,209 | $ | 0 | $ | 0 | $ | 0 | $ | 1,299 | $ | 0 | ||||||||||||
Payable for investments in Affiliates purchased | 0 | 868 | 1,586 | 0 | 0 | 0 | ||||||||||||||||||
Payable for Fund shares redeemed | 0 | 0 | 0 | 2,540 | 0 | 0 | ||||||||||||||||||
Overdraft due to custodian | 8,972 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||
Accrued investment advisory fees | 38 | 0 | 0 | 20 | 43 | 7 | ||||||||||||||||||
Accrued supervisory and administrative fees | 56 | 1 | 1 | 29 | 72 | 8 | ||||||||||||||||||
Other liabilities | 147 | 0 | 0 | 33 | 0 | 0 | ||||||||||||||||||
Total Liabilities | 11,422 | 869 | 1,587 | 2,622 | 1,414 | 15 | ||||||||||||||||||
Net Assets | $ | 199,417 | $ | 38,197 | $ | 70,107 | $ | 151,562 | $ | 447,789 | $ | 46,456 | ||||||||||||
Net Assets Consist of: | ||||||||||||||||||||||||
Paid in capital | $ | 206,946 | $ | 38,754 | $ | 71,087 | $ | 127,170 | $ | 338,029 | $ | 38,198 | ||||||||||||
Undistributed (overdistributed) net investment income | 1,099 | (1 | ) | (1 | ) | 9 | 566 | 11 | ||||||||||||||||
Accumulated undistributed net realized gain (loss) | (3,348 | ) | (12 | ) | (22 | ) | 1,514 | 2,694 | 736 | |||||||||||||||
Net unrealized appreciation (depreciation) | (5,280 | ) | (544 | ) | (957 | ) | 22,869 | 106,500 | 7,511 | |||||||||||||||
$ | 199,417 | $ | 38,197 | $ | 70,107 | $ | 151,562 | $ | 447,789 | $ | 46,456 | |||||||||||||
Cost of Investments in securities | $ | 201,514 | $ | 0 | $ | 0 | $ | 127,590 | $ | 339,000 | $ | 38,661 | ||||||||||||
Cost of Investments in Affiliates | $ | 0 | $ | 38,704 | $ | 70,994 | $ | 0 | $ | 0 | $ | 0 | ||||||||||||
Cost of Foreign Currency Held | $ | 86 | $ | 0 | $ | 0 | $ | 76 | $ | 0 | $ | 0 |
† | A zero balance may reflect actual amounts rounding to less than one thousand. |
20 | PIMCO EQUITY SERIES | See Accompanying Notes |
Table of Contents
June 30, 2015
(Amounts in thousands†, except per share amounts) | PIMCO RAE Fundamental Emerging Markets Fund | PIMCO RAE Fundamental Global Fund | PIMCO RAE Fundamental Global ex-US Fund | PIMCO RAE Fundamental International Fund | PIMCO RAE Fundamental US Fund | PIMCO RAE Fundamental US Small Fund | ||||||||||||||||||
Net Assets: | ||||||||||||||||||||||||
Institutional Class | $ | 199,378 | $ | 38,160 | $ | 70,077 | $ | 151,532 | $ | 447,755 | $ | 46,426 | ||||||||||||
Class P | 10 | 10 | 10 | 10 | 10 | 10 | ||||||||||||||||||
Class A | 19 | 10 | 10 | 10 | 14 | 10 | ||||||||||||||||||
Class C | 10 | 17 | 10 | 10 | 10 | 10 | ||||||||||||||||||
Shares Issued and Outstanding: | ||||||||||||||||||||||||
Institutional Class | 20,035 | 3,871 | 7,106 | 15,408 | 45,440 | 4,677 | ||||||||||||||||||
Class P | 1 | 1 | 1 | 1 | 1 | 1 | ||||||||||||||||||
Class A | 2 | 1 | 1 | 1 | 1 | 1 | ||||||||||||||||||
Class C | 1 | 2 | 1 | 1 | 1 | 1 | ||||||||||||||||||
Net Asset Value and Redemption Price^ Per Share Outstanding: | ||||||||||||||||||||||||
Institutional Class | $ | 9.95 | $ | 9.86 | $ | 9.86 | $ | 9.83 | $ | 9.85 | $ | 9.93 | ||||||||||||
Class P | 9.96 | 9.85 | 9.86 | 9.83 | 9.85 | 9.92 | ||||||||||||||||||
Class A | 9.96 | 9.85 | 9.86 | 9.83 | 9.86 | 9.92 | ||||||||||||||||||
Class C | 9.95 | 9.84 | 9.85 | 9.83 | 9.85 | 9.91 |
^ | With respect to the A and C Classes, the redemption price varies by the length of time the shares are held. |
ANNUAL REPORT | JUNE 30, 2015 | 21 |
Table of Contents
Period Ended June 30, 2015 | ||||||||||||||||||||||||
(Amounts in thousands†) | PIMCO RAE Fundamental Emerging Markets Fund (1) | PIMCO RAE Fundamental Global Fund (1) | PIMCO RAE Fundamental Global ex-US Fund (1) | PIMCO RAE Fundamental International Fund (1) | PIMCO RAE Fundamental US Fund (1) | PIMCO RAE Fundamental US Small Fund (1) | ||||||||||||||||||
Investment Income: | ||||||||||||||||||||||||
Dividends, net of foreign taxes* | $ | 1,359 | $ | 0 | $ | 0 | $ | 315 | $ | 696 | $ | 58 | ||||||||||||
Total Income | 1,359 | 0 | 0 | 315 | 696 | 58 | ||||||||||||||||||
Expenses: | ||||||||||||||||||||||||
Investment advisory fees | 63 | 10 | 18 | 30 | 72 | 10 | ||||||||||||||||||
Supervisory and administrative fees | 56 | 7 | 16 | 30 | 72 | 7 | ||||||||||||||||||
Organizational expense | 61 | 61 | 60 | 60 | 60 | 61 | ||||||||||||||||||
Total Expenses | 180 | 78 | 94 | 120 | 204 | 78 | ||||||||||||||||||
Waiver and/or Reimbursement by PIMCO | (86 | ) | (77 | ) | (93 | ) | (70 | ) | (89 | ) | (63 | ) | ||||||||||||
Net Expenses | 94 | 1 | 1 | 50 | 115 | 15 | ||||||||||||||||||
Net Investment Income (Loss) | 1,265 | (1 | ) | (1 | ) | 265 | 581 | 43 | ||||||||||||||||
Net Realized Gain (Loss): | ||||||||||||||||||||||||
Investments in securities | (1,634 | ) | 0 | 0 | 1,958 | 4,427 | 918 | |||||||||||||||||
Investments in Affiliates | 0 | (12 | ) | (22 | ) | 0 | 0 | 0 | ||||||||||||||||
Over the counter financial derivative instruments | (7 | ) | 0 | 0 | 0 | 0 | 0 | |||||||||||||||||
Foreign currency | 127 | 0 | 0 | (4 | ) | 0 | 0 | |||||||||||||||||
Net Realized Gain (Loss) | (1,514 | ) | (12 | ) | (22 | ) | 1,954 | 4,427 | 918 | |||||||||||||||
Net Change in Unrealized (Depreciation): | ||||||||||||||||||||||||
Investments in securities | (1,205 | ) | 0 | 0 | (4,949 | ) | (11,647 | ) | (1,306 | ) | ||||||||||||||
Investments in Affiliates | 0 | (544 | ) | (957 | ) | 0 | 0 | 0 | ||||||||||||||||
Net Change in Unrealized (Depreciation) | (1,205 | ) | (544 | ) | (957 | ) | (4,949 | ) | (11,647 | ) | (1,306 | ) | ||||||||||||
Net (Decrease) in Net Assets Resulting from Operations | $ | (1,454 | ) | $ | (557 | ) | $ | (980 | ) | $ | (2,730 | ) | $ | (6,639 | ) | $ | (345 | ) | ||||||
* Foreign tax withholdings - Dividends | $ | 158 | $ | 0 | $ | 0 | $ | 47 | $ | 0 | $ | 0 |
† | A zero balance may reflect actual amounts rounding to less than one thousand. |
(1) | Inception date of the Fund was June 5, 2015. |
22 | PIMCO EQUITY SERIES | See Accompanying Notes |
Table of Contents
Statements of Changes in Net Assets
PIMCO RAE Fundamental Emerging Markets Fund | PIMCO RAE Fundamental Global Fund | PIMCO RAE Fundamental Global ex-US Fund | PIMCO RAE Fundamental International Fund | PIMCO RAE Fundamental US Fund | PIMCO RAE Fundamental US Small Fund | |||||||||||||||||||
(Amounts in thousands†) | Period from | Period from June 5, 2015 to June 30, 2015 | Period from June 5, 2015 to June 30, 2015 | Period from June 5, 2015 to June 30, 2015 | Period from June 5, 2015 to June 30, 2015 | Period from June 5, 2015 to June 30, 2015 | ||||||||||||||||||
Increase (Decrease) in Net Assets from: | ||||||||||||||||||||||||
Operations: | ||||||||||||||||||||||||
Net investment income (loss) | $ | 1,265 | $ | (1 | ) | $ | (1 | ) | $ | 265 | $ | 581 | $ | 43 | ||||||||||
Net realized gain (loss) | (1,514 | ) | (12 | ) | (22 | ) | 1,954 | 4,427 | 918 | |||||||||||||||
Net change in unrealized (depreciation) | (1,205 | ) | (544 | ) | (957 | ) | (4,949 | ) | (11,647 | ) | (1,306 | ) | ||||||||||||
Net (decrease) in net assets resulting from operations | (1,454 | ) | (557 | ) | (980 | ) | (2,730 | ) | (6,639 | ) | (345 | ) | ||||||||||||
Portfolio Share Transactions: | ||||||||||||||||||||||||
Net increase resulting from Fund share transactions** | 200,871 | 38,754 | 71,087 | 154,292 | 454,428 | 46,801 | ||||||||||||||||||
Total Increase in Net Assets | 199,417 | 38,197 | 70,107 | 151,562 | 447,789 | 46,456 | ||||||||||||||||||
Net Assets: | ||||||||||||||||||||||||
Beginning of period | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||
End of period* | $ | 199,417 | $ | 38,197 | $ | 70,107 | $ | 151,562 | $ | 447,789 | $ | 46,456 | ||||||||||||
* Including undistributed (overdistributed) net investment income of: | $ | 1,099 | $ | (1 | ) | $ | (1 | ) | $ | 9 | $ | 566 | $ | 11 |
† | A zero balance may reflect actual amounts rounding to less than one thousand. |
** | See Note 10 in the Notes to Financial Statements. |
ANNUAL REPORT | JUNE 30, 2015 | 23 |
Table of Contents
Schedule of Investments PIMCO RAE Fundamental Emerging Markets Fund
SHARES | MARKET VALUE (000S) | |||||||||||
INVESTMENTS IN SECURITIES 98.4% | ||||||||||||
COMMON STOCKS 83.7% | ||||||||||||
BRAZIL 9.2% |
| |||||||||||
CONSUMER DISCRETIONARY 0.0% | ||||||||||||
Lojas Renner S.A. | 2,500 | $ | 91 | |||||||||
|
| |||||||||||
CONSUMER STAPLES 0.7% | ||||||||||||
AMBEV S.A. - ADR | 67,957 | 415 | ||||||||||
BRF S.A. | 3,800 | 80 | ||||||||||
Cielo S.A. | 2,260 | 32 | ||||||||||
JBS S.A. | 53,500 | 281 | ||||||||||
Marfrig Global Foods S.A. (a) | 107,800 | 197 | ||||||||||
Natura Cosmeticos S.A. | 29,400 | 260 | ||||||||||
Souza Cruz S.A. | 9,000 | 71 | ||||||||||
|
| |||||||||||
1,336 | ||||||||||||
|
| |||||||||||
ENERGY 0.9% | ||||||||||||
Petroleo Brasileiro S.A. - ADR (a) | 187,994 | 1,701 | ||||||||||
Ultrapar Participacoes S.A. | 1,300 | 28 | ||||||||||
|
| |||||||||||
1,729 | ||||||||||||
|
| |||||||||||
FINANCIALS 4.6% | ||||||||||||
Banco Bradesco S.A. - ADR | 250,594 | 2,296 | ||||||||||
Banco do Brasil S.A. | 331,300 | 2,587 | ||||||||||
BM&FBovespa S.A. - Bolsa de Valores Mercadorias e Futuros | 29,000 | 109 | ||||||||||
BR Malls Participacoes S.A. | 5,000 | 23 | ||||||||||
Grupo BTG Pactual | 2,300 | 21 | ||||||||||
Itau Unibanco Holding S.A. SP - ADR | 363,206 | 3,977 | ||||||||||
Sul America S.A. | 51,559 | 252 | ||||||||||
|
| |||||||||||
9,265 | ||||||||||||
|
| |||||||||||
INDUSTRIALS 0.1% | ||||||||||||
CCR S.A. | 6,000 | 29 | ||||||||||
Embraer S.A. - ADR | 4,440 | 134 | ||||||||||
Rumo Logistica Operadora Multimodal S.A. (a) | 190,700 | 78 | ||||||||||
|
| |||||||||||
241 | ||||||||||||
|
| |||||||||||
MATERIALS 0.5% | ||||||||||||
Cia Siderurgica Nacional S.A. - ADR | 312,876 | 516 | ||||||||||
Fibria Celulose S.A. - ADR | 6,361 | 87 | ||||||||||
Gerdau S.A. - ADR | 129,787 | 313 | ||||||||||
Klabin S.A. | 5,300 | 32 | ||||||||||
|
| |||||||||||
948 | ||||||||||||
|
| |||||||||||
TELECOMMUNICATION SERVICES 0.6% | ||||||||||||
Telefonica Brasil S.A. - ADR | 62,339 | 869 | ||||||||||
Tim Participacoes S.A. - ADR | 17,679 | 289 | ||||||||||
|
| |||||||||||
1,158 | ||||||||||||
|
| |||||||||||
UTILITIES 1.8% |
| |||||||||||
Alupar Investimento S.A. | 4,600 | 25 | ||||||||||
Cia de Saneamento Basico do Estado de Sao Paulo - ADR | 90,584 | 469 |
SHARES | MARKET VALUE (000S) | |||||||||||
Cia de Saneamento de Minas Gerais - COPASA | 16,500 | $ | 73 | |||||||||
Cia Energetica de Minas Gerais - ADR | 303,859 | 1,158 | ||||||||||
CPFL Energia S.A. - ADR | 44,261 | 542 | ||||||||||
EDP - Energias do Brasil S.A. | 126,700 | 469 | ||||||||||
Light S.A. | 66,000 | 359 | ||||||||||
Tractebel Energia S.A. | 27,100 | 298 | ||||||||||
Transmissora Alianca de Energia Eletrica S.A. | 18,700 | 124 | ||||||||||
|
| |||||||||||
3,517 | ||||||||||||
|
| |||||||||||
Total Brazil | 18,285 | |||||||||||
|
| |||||||||||
CHINA 19.3% | ||||||||||||
CONSUMER DISCRETIONARY 0.2% | ||||||||||||
Dongfeng Motor Group Co. Ltd. ‘H’ | 90,000 | 120 | ||||||||||
GOME Electrical Appliances Holding Ltd. | 1,105,000 | 245 | ||||||||||
Great Wall Motor Co. Ltd. ‘H’ | 4,500 | 21 | ||||||||||
Weichai Power Co. Ltd. | 22,000 | 74 | ||||||||||
|
| |||||||||||
460 | ||||||||||||
|
| |||||||||||
CONSUMER STAPLES 0.0% | ||||||||||||
Hengan International Group Co. Ltd. | 3,000 | 35 | ||||||||||
|
| |||||||||||
ENERGY 2.9% | ||||||||||||
China Coal Energy Co. Ltd. | 55,000 | 33 | ||||||||||
China Petroleum & Chemical Corp. ‘H’ | 2,426,400 | 2,079 | ||||||||||
China Shenhua Energy Co. Ltd. ‘H’ | 279,500 | 636 | ||||||||||
CNOOC Ltd. | 1,057,000 | 1,502 | ||||||||||
Inner Mongolia Yitai Coal Co. Ltd. | 99,300 | 142 | ||||||||||
PetroChina Co. Ltd. | 1,256,000 | 1,396 | ||||||||||
Yanzhou Coal Mining Co. Ltd. | 64,000 | 50 | ||||||||||
|
| |||||||||||
5,838 | ||||||||||||
|
| |||||||||||
FINANCIALS 14.0% | ||||||||||||
Agile Property Holdings Ltd. | 818,000 | 550 | ||||||||||
Agricultural Bank of China Ltd. | 3,266,000 | 1,763 | ||||||||||
Bank of China Ltd. | 9,105,000 | 5,921 | ||||||||||
Bank of Communications Co. Ltd. | 1,245,000 | 1,296 | ||||||||||
China CITIC Bank Corp. Ltd. | 846,000 | 674 | ||||||||||
China Construction Bank Corp. ‘H’ | 7,683,000 | 7,018 | ||||||||||
China Everbright Bank Co. Ltd. | 191,000 | 114 | ||||||||||
China Life Insurance Co. Ltd. | 196,000 | 847 | ||||||||||
China Merchants Bank Co. Ltd. | 426,500 | 1,244 | ||||||||||
China Minsheng Banking Corp. Ltd. | 307,600 | 402 | ||||||||||
China Vanke Co. Ltd. ‘H’ | 13,000 | 32 | ||||||||||
Chongqing Rural Commercial Bank Co. Ltd. | 186,000 | 150 | ||||||||||
Country Garden Holdings Co. Ltd. | 67,000 | 29 | ||||||||||
Evergrande Real Estate Group Ltd. | 730,000 | 433 |
SHARES | MARKET VALUE (000S) | |||||||||||
Guangzhou R&F Properties Co. Ltd. | 375,200 | $ | 459 | |||||||||
Industrial & Commercial Bank of China Ltd. ‘H’ | 7,491,000 | 5,935 | ||||||||||
New China Life Insurance Co. Ltd. ‘H’ | 65,600 | 392 | ||||||||||
People’s Insurance Co. Group of China Ltd. | 46,000 | 29 | ||||||||||
PICC Property & Casualty Co. Ltd. | 12,000 | 27 | ||||||||||
Ping An Insurance Group Co. of China Ltd. | 23,000 | 310 | ||||||||||
Sino-Ocean Land Holdings Ltd. | 48,000 | 36 | ||||||||||
SOHO China Ltd. | 367,500 | 238 | ||||||||||
|
| |||||||||||
27,899 | ||||||||||||
|
| |||||||||||
INDUSTRIALS 0.9% | ||||||||||||
China Communications Construction Co. Ltd. | 437,000 | 650 | ||||||||||
China Railway Construction Corp. Ltd. | 233,500 | 359 | ||||||||||
China Railway Group Ltd. | 421,000 | 456 | ||||||||||
Metallurgical Corp. of China Ltd. | 94,000 | 41 | ||||||||||
Shanghai Electric Group Co. Ltd. ‘H’ | 50,000 | 41 | ||||||||||
Zhejiang Expressway Co. Ltd. ‘H’ | 96,000 | 133 | ||||||||||
|
| |||||||||||
1,680 | ||||||||||||
|
| |||||||||||
INFORMATION TECHNOLOGY 0.2% | ||||||||||||
Lenovo Group Ltd. | 196,000 | 271 | ||||||||||
Semiconductor Manufacturing International Corp. (a) | 264,000 | 29 | ||||||||||
|
| |||||||||||
300 | ||||||||||||
|
| |||||||||||
MATERIALS 0.3% | ||||||||||||
Anhui Conch Cement Co. Ltd. | 7,500 | 26 | ||||||||||
China National Building Material Co. Ltd. | 566,000 | 534 | ||||||||||
Jiangxi Copper Co. Ltd. | 18,000 | 30 | ||||||||||
|
| |||||||||||
590 | ||||||||||||
|
| |||||||||||
TELECOMMUNICATION SERVICES 0.6% | ||||||||||||
China Telecom Corp. Ltd. | 2,152,000 | 1,260 | ||||||||||
|
| |||||||||||
UTILITIES 0.2% | ||||||||||||
Datang International Power Generation Co. Ltd. | 86,000 | 44 | ||||||||||
Huaneng Power International, Inc. | 296,000 | 411 | ||||||||||
|
| |||||||||||
455 | ||||||||||||
|
| |||||||||||
Total China | 38,517 | |||||||||||
|
| |||||||||||
GREECE 0.3% | ||||||||||||
CONSUMER DISCRETIONARY 0.1% | ||||||||||||
OPAP S.A. | 26,610 | 212 | ||||||||||
|
| |||||||||||
ENERGY 0.0% | ||||||||||||
Motor Oil Hellas Corinth Refineries S.A. | 3,333 | 30 | ||||||||||
|
| |||||||||||
24 | PIMCO EQUITY SERIES | See Accompanying Notes |
Table of Contents
June 30, 2015
SHARES | MARKET VALUE (000S) | |||||||||||
TELECOMMUNICATION SERVICES 0.2% | ||||||||||||
Hellenic Telecommunications Organization S.A. | 32,932 | $ | 278 | |||||||||
|
| |||||||||||
UTILITIES 0.0% | ||||||||||||
Public Power Corp. S.A. (a) | 16,221 | 77 | ||||||||||
|
| |||||||||||
Total Greece | 597 | |||||||||||
|
| |||||||||||
HONG KONG 4.5% | ||||||||||||
CONSUMER STAPLES 0.3% | ||||||||||||
China Resources Enterprise Ltd. | 194,000 | 626 | ||||||||||
|
| |||||||||||
FINANCIALS 0.7% | ||||||||||||
BOC Hong Kong Holdings Ltd. | 111,000 | 463 | ||||||||||
China Overseas Land & Investment Ltd. | 30,000 | 106 | ||||||||||
China Resources Land Ltd. | 12,000 | 39 | ||||||||||
China Taiping Insurance Holdings Co. Ltd. (a) | 114,200 | 409 | ||||||||||
Poly Property Group Co. Ltd. | 342,000 | 164 | ||||||||||
Shanghai Industrial Holdings Ltd. | 37,000 | 125 | ||||||||||
Yuexiu Property Co. Ltd. | 150,000 | 33 | ||||||||||
|
| |||||||||||
1,339 | ||||||||||||
|
| |||||||||||
INDUSTRIALS 0.1% | ||||||||||||
China Merchants Holdings International Co. Ltd. | 6,000 | 26 | ||||||||||
CITIC Ltd. | 105,000 | 189 | ||||||||||
|
| |||||||||||
215 | ||||||||||||
|
| |||||||||||
TELECOMMUNICATION SERVICES 3.3% | ||||||||||||
China Mobile Ltd. | 432,500 | 5,542 | ||||||||||
China Unicom Hong Kong Ltd. | 608,000 | 949 | ||||||||||
|
| |||||||||||
6,491 | ||||||||||||
|
| |||||||||||
UTILITIES 0.1% | ||||||||||||
China Resources Power Holdings Co. Ltd. | 74,000 | 205 | ||||||||||
Guangdong Investment Ltd. | 22,000 | 30 | ||||||||||
|
| |||||||||||
235 | ||||||||||||
|
| |||||||||||
Total Hong Kong | 8,906 | |||||||||||
|
| |||||||||||
INDIA 2.7% | ||||||||||||
CONSUMER DISCRETIONARY 0.4% | ||||||||||||
Tata Motors Ltd. SP - ADR | 25,316 | 873 | ||||||||||
|
| |||||||||||
ENERGY 0.5% | ||||||||||||
Reliance Industries Ltd. GDR | 33,044 | 1,029 | ||||||||||
|
| |||||||||||
FINANCIALS 1.4% | ||||||||||||
State Bank of India GDR | 65,509 | 2,709 | ||||||||||
|
| |||||||||||
INFORMATION TECHNOLOGY 0.2% | ||||||||||||
Infosys Ltd. - ADR | 31,696 | 502 | ||||||||||
|
| |||||||||||
MATERIALS 0.2% | ||||||||||||
Vedanta Resources PLC | 37,522 | 307 | ||||||||||
|
| |||||||||||
Total India | 5,420 | |||||||||||
|
|
SHARES | MARKET VALUE (000S) | |||||||||||
INDONESIA 1.8% | ||||||||||||
CONSUMER DISCRETIONARY 0.1% | ||||||||||||
Astra International Tbk PT | 318,400 | $ | 169 | |||||||||
|
| |||||||||||
CONSUMER STAPLES 0.0% | ||||||||||||
Indofood Sukses Makmur Tbk PT | 162,800 | 80 | ||||||||||
|
| |||||||||||
ENERGY 0.2% | ||||||||||||
Adaro Energy Tbk PT | 2,392,200 | 136 | ||||||||||
Bumi Resources Tbk PT (a) | 15,577,800 | 70 | ||||||||||
Indo Tambangraya Megah Tbk PT | 63,500 | 61 | ||||||||||
Tambang Batubara Bukit Asam Persero Tbk PT | 34,900 | 22 | ||||||||||
|
| |||||||||||
289 | ||||||||||||
|
| |||||||||||
FINANCIALS 0.7% | ||||||||||||
Bank Central Asia Tbk PT | 197,700 | 200 | ||||||||||
Bank Danamon Indonesia Tbk PT | 226,900 | 73 | ||||||||||
Bank Mandiri Persero Tbk PT | 504,600 | 379 | ||||||||||
Bank Negara Indonesia Persero Tbk PT | 412,400 | 164 | ||||||||||
Bank Rakyat Indonesia Persero Tbk PT | 701,700 | 543 | ||||||||||
|
| |||||||||||
1,359 | ||||||||||||
|
| |||||||||||
INDUSTRIALS 0.0% | ||||||||||||
Berlian Laju Tanker Tbk PT (a) | 707,200 | 0 | ||||||||||
United Tractors Tbk PT | 48,000 | 73 | ||||||||||
|
| |||||||||||
73 | ||||||||||||
|
| |||||||||||
MATERIALS 0.0% | ||||||||||||
Indocement Tunggal Prakarsa Tbk PT | 16,100 | 25 | ||||||||||
Semen Indonesia Persero Tbk PT | 25,900 | 23 | ||||||||||
|
| |||||||||||
48 | ||||||||||||
|
| |||||||||||
TELECOMMUNICATION SERVICES 0.8% | ||||||||||||
Telekomunikasi Indonesia Persero Tbk PT | 6,765,500 | 1,483 | ||||||||||
XL Axiata Tbk PT | 80,500 | 22 | ||||||||||
|
| |||||||||||
1,505 | ||||||||||||
|
| |||||||||||
UTILITIES 0.0% | ||||||||||||
Perusahaan Gas Negara Persero Tbk PT | 185,500 | 60 | ||||||||||
|
| |||||||||||
Total Indonesia | 3,583 | |||||||||||
|
| |||||||||||
MEXICO 2.6% | ||||||||||||
CONSUMER DISCRETIONARY 0.0% | ||||||||||||
Grupo Televisa S.A.B. - ADR | 760 | 30 | ||||||||||
TV Azteca S.A.B. de C.V. | 213,300 | 51 | ||||||||||
Urbi Desarrollos Urbanos S.A.B. de C.V. (a) | 212,200 | 0 | ||||||||||
|
| |||||||||||
81 | ||||||||||||
|
| |||||||||||
SHARES | MARKET VALUE (000S) | |||||||||||
CONSUMER STAPLES 0.3% | ||||||||||||
Fomento Economico Mexicano S.A.B. de C.V. - ADR | 1,378 | $ | 123 | |||||||||
Grupo Bimbo S.A.B. de C.V. (a) | 44,500 | 115 | ||||||||||
Kimberly-Clark de Mexico S.A.B. de C.V. | 105,300 | 228 | ||||||||||
Wal-Mart de Mexico S.A.B. de C.V. | 47,600 | 116 | ||||||||||
|
| |||||||||||
582 | ||||||||||||
|
| |||||||||||
FINANCIALS 0.2% | ||||||||||||
Grupo Financiero Inbursa S.A.B. de C.V. | 10,700 | 24 | ||||||||||
Grupo Financiero Santander Mexico S.A.B. de C.V. - ADR | 42,231 | 387 | ||||||||||
|
| |||||||||||
411 | ||||||||||||
|
| |||||||||||
INDUSTRIALS 0.1% | ||||||||||||
Alfa S.A.B. de C.V. | 13,800 | 27 | ||||||||||
Corp. GEO S.A.B. de C.V. (a) | 95,700 | 0 | ||||||||||
Empresas ICA S.A.B. de C.V. (a) | 83,900 | 65 | ||||||||||
Grupo Aeromexico S.A.B. de C.V. (a) | 16,222 | 26 | ||||||||||
Grupo Aeroportuario del Pacifico S.A.B. de C.V. | 13,470 | 92 | ||||||||||
|
| |||||||||||
210 | ||||||||||||
|
| |||||||||||
MATERIALS 0.6% | ||||||||||||
Cemex S.A.B. de C.V. - ADR (a) | 94,317 | 864 | ||||||||||
Fresnillo PLC | 2,567 | 28 | ||||||||||
Grupo Mexico S.A.B. de C.V. | 49,999 | 150 | ||||||||||
Industrias Penoles S.A.B. de C.V. | 3,835 | 63 | ||||||||||
Southern Copper Corp. | 2,662 | 78 | ||||||||||
|
| |||||||||||
1,183 | ||||||||||||
|
| |||||||||||
TELECOMMUNICATION SERVICES 1.4% | ||||||||||||
America Movil S.A.B. de C.V. - ADR ‘L’ | 128,058 | 2,729 | ||||||||||
Axtel S.A.B. de C.V. (a) | 143,600 | 44 | ||||||||||
|
| |||||||||||
2,773 | ||||||||||||
|
| |||||||||||
Total Mexico | 5,240 | |||||||||||
|
| |||||||||||
POLAND 1.9% | ||||||||||||
ENERGY 0.5% | ||||||||||||
Grupa Lotos S.A. (a) | 4,249 | 34 | ||||||||||
Polski Koncern Naftowy Orlen S.A. | 41,046 | 806 | ||||||||||
Polskie Gornictwo Naftowe i Gazownictwo S.A. | 71,279 | 125 | ||||||||||
|
| |||||||||||
965 | ||||||||||||
|
| |||||||||||
FINANCIALS 0.4% | ||||||||||||
Bank Pekao S.A. | 4,072 | 195 | ||||||||||
Powszechna Kasa Oszczednosci Bank Polski S.A. | 35,823 | 296 | ||||||||||
Powszechny Zaklad Ubezpieczen S.A. | 1,961 | 226 | ||||||||||
|
| |||||||||||
717 | ||||||||||||
|
| |||||||||||
INDUSTRIALS 0.0% | ||||||||||||
PKP Cargo S.A. | 1,265 | 28 | ||||||||||
|
|
See Accompanying Notes | ANNUAL REPORT | JUNE 30, 2015 | 25 |
Table of Contents
Schedule of Investments PIMCO RAE Fundamental Emerging Markets Fund (Cont.)
SHARES | MARKET VALUE (000S) | |||||||||||
INFORMATION TECHNOLOGY 0.0% | ||||||||||||
Asseco Poland S.A. | 2,046 | $ | 32 | |||||||||
|
| |||||||||||
MATERIALS 0.5% | ||||||||||||
Jastrzebska Spolka Weglowa S.A. | 8,410 | 26 | ||||||||||
KGHM Polska Miedz S.A. | 31,832 | 902 | ||||||||||
|
| |||||||||||
928 | ||||||||||||
|
| |||||||||||
TELECOMMUNICATION SERVICES 0.2% | ||||||||||||
Orange Polska S.A. | 217,179 | 470 | ||||||||||
|
| |||||||||||
UTILITIES 0.3% | ||||||||||||
Enea S.A. | 6,825 | 29 | ||||||||||
PGE Polska Grupa Energetyczna S.A. | 88,152 | 432 | ||||||||||
Tauron Polska Energia S.A. | 177,494 | 207 | ||||||||||
|
| |||||||||||
668 | ||||||||||||
|
| |||||||||||
Total Poland | 3,808 | |||||||||||
|
| |||||||||||
RUSSIA 10.1% | ||||||||||||
CONSUMER STAPLES 0.2% | ||||||||||||
Lenta Ltd. GDR (a) | 4,731 | 35 | ||||||||||
X5 Retail Group NV SP - GDR (a) | 22,154 | 369 | ||||||||||
|
| |||||||||||
404 | ||||||||||||
|
| |||||||||||
ENERGY 6.7% | ||||||||||||
Gazprom Neft OAO - ADR | 9,875 | 120 | ||||||||||
Gazprom OAO SP - ADR | 736,060 | 3,879 | ||||||||||
Lukoil OAO - ADR | 99,143 | 4,453 | ||||||||||
Rosneft OAO GDR | 140,654 | 580 | ||||||||||
Surgutneftegas OAO - ADR | 650,636 | 3,832 | ||||||||||
Tatneft OAO - ADR | 16,098 | 515 | ||||||||||
|
| |||||||||||
13,379 | ||||||||||||
|
| |||||||||||
FINANCIALS 0.3% | ||||||||||||
Sberbank of Russia SP - ADR | 74,053 | 393 | ||||||||||
VTB Bank OJSC GDR | 92,766 | 253 | ||||||||||
|
| |||||||||||
646 | ||||||||||||
|
| |||||||||||
INDUSTRIALS 0.2% | ||||||||||||
Aeroflot - Russian Airlines OJSC | 381,460 | 265 | ||||||||||
|
| |||||||||||
MATERIALS 1.4% | ||||||||||||
Alrosa AO | 61,468 | 71 | ||||||||||
Mechel SP - ADR | 65,977 | 81 | ||||||||||
MMC Norilsk Nickel PJSC | 122,187 | 2,061 | ||||||||||
PhosAgro OAO GDR | 12,115 | 155 | ||||||||||
Severstal PAO GDR | 37,603 | 398 | ||||||||||
|
| |||||||||||
2,766 | ||||||||||||
|
| |||||||||||
TELECOMMUNICATION SERVICES 1.2% | ||||||||||||
MegaFon OAO GDR | 24,147 | 336 | ||||||||||
Mobile TeleSystems OJSC | 195,500 | 866 | ||||||||||
Mobile Telesystems OJSC (a) | 8,860 | 39 |
SHARES | MARKET VALUE (000S) | |||||||||||
Rostelecom OJSC | 136,320 | $ | 223 | |||||||||
Rostelecom OJSC (a) | 24,230 | 39 | ||||||||||
Sistema JSFC GDR | 100,504 | 889 | ||||||||||
|
| |||||||||||
2,392 | ||||||||||||
|
| |||||||||||
UTILITIES 0.1% | ||||||||||||
Federal Grid Co. Unified Energy System JSC | 69,990,000 | 80 | ||||||||||
Inter RAO UES PJSC | 1,990,000 | 44 | ||||||||||
Rossetti JSC (a) | 12,966,000 | 113 | ||||||||||
|
| |||||||||||
237 | ||||||||||||
|
| |||||||||||
Total Russia | 20,089 | |||||||||||
|
| |||||||||||
SOUTH AFRICA 9.3% | ||||||||||||
CONSUMER DISCRETIONARY 0.7% | ||||||||||||
Foschini Group Ltd. | 15,635 | 204 | ||||||||||
Imperial Holdings Ltd. | 14,227 | 217 | ||||||||||
Lewis Group Ltd. | 10,880 | 88 | ||||||||||
Mr Price Group Ltd. | 10,774 | 222 | ||||||||||
Steinhoff International Holdings Ltd. | 89,555 | 567 | ||||||||||
Sun International Ltd. | 10,486 | 95 | ||||||||||
Truworths International Ltd. | 3,921 | 28 | ||||||||||
Woolworths Holdings Ltd. | 11,785 | 95 | ||||||||||
|
| |||||||||||
1,516 | ||||||||||||
|
| |||||||||||
CONSUMER STAPLES 0.2% | ||||||||||||
AVI Ltd. | 6,687 | 45 | ||||||||||
Clicks Group Ltd. | 6,343 | 47 | ||||||||||
Massmart Holdings Ltd. | 4,076 | 50 | ||||||||||
Shoprite Holdings Ltd. | 2,100 | 30 | ||||||||||
SPAR Group Ltd. | 7,774 | 121 | ||||||||||
Tiger Brands Ltd. | 4,381 | 102 | ||||||||||
|
| |||||||||||
395 | ||||||||||||
|
| |||||||||||
ENERGY 0.8% | ||||||||||||
Exxaro Resources Ltd. | 4,140 | 29 | ||||||||||
Sasol Ltd. | 43,690 | 1,618 | ||||||||||
|
| |||||||||||
1,647 | ||||||||||||
|
| |||||||||||
FINANCIALS 3.7% | ||||||||||||
African Bank Investments Ltd. | 90,857 | 0 | ||||||||||
Barclays Africa Group Ltd. | 82,837 | 1,245 | ||||||||||
Bidvest Group Ltd. | 13,978 | 354 | ||||||||||
Discovery Ltd. | 2,910 | 30 | ||||||||||
FirstRand Ltd. | 206,880 | 907 | ||||||||||
Investec Ltd. | 21,156 | 190 | ||||||||||
Liberty Holdings Ltd. | 27,431 | 327 | ||||||||||
MMI Holdings Ltd. | 67,871 | 168 | ||||||||||
Nedbank Group Ltd. | 31,328 | 622 | ||||||||||
Sanlam Ltd. | 191,191 | 1,041 | ||||||||||
Standard Bank Group Ltd. | 197,550 | 2,600 | ||||||||||
|
| |||||||||||
7,484 | ||||||||||||
|
|
SHARES | MARKET VALUE (000S) | |||||||||||
HEALTH CARE 0.1% | ||||||||||||
Aspen Pharmacare Holdings Ltd. | 840 | $ | 25 | |||||||||
Netcare Ltd. | 51,466 | 162 | ||||||||||
|
| |||||||||||
187 | ||||||||||||
|
| |||||||||||
INDUSTRIALS 0.2% | ||||||||||||
Aveng Ltd. | 71,944 | 34 | ||||||||||
Barloworld Ltd. | 39,350 | 312 | ||||||||||
|
| |||||||||||
346 | ||||||||||||
|
| |||||||||||
INFORMATION TECHNOLOGY 0.1% | ||||||||||||
Reunert Ltd. | 23,430 | 128 | ||||||||||
|
| |||||||||||
MATERIALS 1.7% | ||||||||||||
Aeci Ltd. | 5,960 | 56 | ||||||||||
African Rainbow Minerals Ltd. | 3,860 | 26 | ||||||||||
AngloGold Ashanti Ltd. SP - ADR (a) | 56,950 | 510 | ||||||||||
ArcelorMittal South Africa Ltd. (a) | 29,891 | 30 | ||||||||||
Gold Fields Ltd. SP - ADR | 412,976 | 1,334 | ||||||||||
Impala Platinum Holdings Ltd. (a) | 50,541 | 225 | ||||||||||
Kumba Iron Ore Ltd. | 22,837 | 283 | ||||||||||
Nampak Ltd. | 68,351 | 190 | ||||||||||
PPC Ltd. | 34,028 | 49 | ||||||||||
Sappi Ltd. (a) | 66,172 | 235 | ||||||||||
Sibanye Gold Ltd. | 256,034 | 410 | ||||||||||
|
| |||||||||||
3,348 | ||||||||||||
|
| |||||||||||
TELECOMMUNICATION SERVICES 1.8% | ||||||||||||
MTN Group Ltd. | 137,060 | 2,575 | ||||||||||
Telkom S.A. SOC Ltd. (a) | 123,717 | 652 | ||||||||||
Vodacom Group Ltd. | 31,928 | 364 | ||||||||||
|
| |||||||||||
3,591 | ||||||||||||
|
| |||||||||||
Total South Africa | 18,642 | |||||||||||
|
| |||||||||||
SOUTH KOREA 10.0% | ||||||||||||
CONSUMER DISCRETIONARY 1.4% | ||||||||||||
Hyundai Department Store Co. Ltd. | 231 | 31 | ||||||||||
Hyundai Mobis Co. Ltd. | 149 | 28 | ||||||||||
Hyundai Motor Co. | 9,655 | 1,175 | ||||||||||
Kia Motors Corp. | 12,451 | 505 | ||||||||||
LG Corp. | 2,899 | 160 | ||||||||||
LG Electronics, Inc. | 17,760 | 751 | ||||||||||
Lotte Shopping Co. Ltd. | 337 | 71 | ||||||||||
STX Offshore & Shipbuilding (a) | 7,896 | 0 | ||||||||||
|
| |||||||||||
2,721 | ||||||||||||
|
| |||||||||||
CONSUMER STAPLES 0.2% | ||||||||||||
E-Mart Co. Ltd. | 926 | 192 | ||||||||||
KT&G Corp. | 1,638 | 139 | ||||||||||
|
| |||||||||||
331 | ||||||||||||
|
| |||||||||||
ENERGY 0.8% | ||||||||||||
GS Holdings Corp. | 660 | 29 | ||||||||||
SK Holdings Co. Ltd. | 7,372 | 1,307 |
26 | PIMCO EQUITY SERIES | See Accompanying Notes |
Table of Contents
June 30, 2015
SHARES | MARKET VALUE (000S) | |||||||||||
SK Innovation Co. Ltd. | 1,540 | $ | 168 | |||||||||
|
| |||||||||||
1,504 | ||||||||||||
|
| |||||||||||
FINANCIALS 2.7% | ||||||||||||
BNK Financial Group, Inc. | 13,089 | 166 | ||||||||||
DGB Financial Group, Inc. | 18,033 | 189 | ||||||||||
Dongbu Insurance Co. Ltd. | 3,711 | 188 | ||||||||||
Hana Financial Group, Inc. | 10,623 | 276 | ||||||||||
Hanwha Life Insurance Co. Ltd. | 26,551 | 189 | ||||||||||
Hyundai Marine & Fire Insurance Co. Ltd. | 5,212 | 138 | ||||||||||
Industrial Bank of Korea | 32,863 | 425 | ||||||||||
KB Financial Group, Inc. | 25,520 | 843 | ||||||||||
LIG Insurance Co. Ltd. | 5,349 | 138 | ||||||||||
Meritz Fire & Marine Insurance Co. Ltd. | 8,410 | 123 | ||||||||||
Samsung Card Co. Ltd. | 871 | 29 | ||||||||||
Samsung Fire & Marine Insurance Co. Ltd. | 793 | 209 | ||||||||||
Samsung Life Insurance Co. Ltd. | 6,539 | 630 | ||||||||||
Shinhan Financial Group Co. Ltd. | 35,319 | 1,315 | ||||||||||
Tongyang Life Insurance | 8,961 | 122 | ||||||||||
Woori Bank | 57,972 | 508 | ||||||||||
|
| |||||||||||
5,488 | ||||||||||||
|
| |||||||||||
INDUSTRIALS 0.9% | ||||||||||||
CJ Corp. | 2,682 | 711 | ||||||||||
Daelim Industrial Co. Ltd. | 1,009 | 74 | ||||||||||
Doosan Corp. | 994 | 97 | ||||||||||
Doosan Heavy Industries & Construction Co. Ltd. | 3,611 | 78 | ||||||||||
Doosan Infracore Co. Ltd. (a) | 3,490 | 31 | ||||||||||
GS Engineering & Construction Corp. | 3,810 | 91 | ||||||||||
Hyundai Heavy Industries Co. Ltd. | 814 | 81 | ||||||||||
Korean Air Lines Co. Ltd. (a) | 7,512 | 272 | ||||||||||
LS Corp. | 637 | 25 | ||||||||||
Samsung Engineering Co. Ltd. | 904 | 25 | ||||||||||
SK Networks Co. Ltd. | 26,954 | 217 | ||||||||||
|
| |||||||||||
1,702 | ||||||||||||
|
| |||||||||||
INFORMATION TECHNOLOGY 2.1% | ||||||||||||
LG Display Co. Ltd. | 15,467 | 357 | ||||||||||
Samsung Electro-Mechanics Co. Ltd. | 560 | 25 | ||||||||||
Samsung Electronics Co. Ltd. | 2,952 | 3,349 | ||||||||||
SK C&C Co. Ltd. | 2,141 | 530 | ||||||||||
SK Hynix, Inc. | 680 | 26 | ||||||||||
|
| |||||||||||
4,287 | ||||||||||||
|
| |||||||||||
MATERIALS 0.5% | ||||||||||||
Hanwha Chemical Corp. | 2,331 | 39 | ||||||||||
Hanwha Corp. | 4,635 | 196 | ||||||||||
Hyosung Corp. | 241 | 31 | ||||||||||
POSCO Processing & Service Co. Ltd. | 4,105 | 822 | ||||||||||
|
| |||||||||||
1,088 | ||||||||||||
|
| |||||||||||
SHARES | MARKET VALUE (000S) | |||||||||||
TELECOMMUNICATION SERVICES 0.9% | ||||||||||||
KT Corp. - ADR (a) | 47,594 | $ | 603 | |||||||||
LG Uplus Corp. | 62,012 | 548 | ||||||||||
SK Telecom Co. Ltd. - ADR | 28,346 | 702 | ||||||||||
|
| |||||||||||
1,853 | ||||||||||||
|
| |||||||||||
UTILITIES 0.5% | ||||||||||||
Korea Electric Power Corp. | 23,458 | 959 | ||||||||||
|
| |||||||||||
Total South Korea | 19,933 | |||||||||||
|
| |||||||||||
TAIWAN 9.1% | ||||||||||||
CONSUMER DISCRETIONARY 0.2% | ||||||||||||
Pou Chen Corp. | 311,000 | 444 | ||||||||||
|
| |||||||||||
CONSUMER STAPLES 0.2% | ||||||||||||
Uni-President Enterprises Corp. | 166,000 | 294 | ||||||||||
|
| |||||||||||
FINANCIALS 1.3% | ||||||||||||
Cathay Financial Holding Co. Ltd. | 109,000 | 190 | ||||||||||
Chang Hwa Commercial Bank Ltd. | 134,000 | 77 | ||||||||||
China Development Financial Holding Corp. | 86,000 | 33 | ||||||||||
China Life Insurance Co. Ltd. | 213,000 | 218 | ||||||||||
CTBC Financial Holding Co. Ltd. | 304,000 | 240 | ||||||||||
First Financial Holding Co. Ltd. | 260,000 | 159 | ||||||||||
Fubon Financial Holding Co. Ltd. | 135,000 | 268 | ||||||||||
Highwealth Construction Corp. | 44,000 | 105 | ||||||||||
Hua Nan Financial Holdings Co. Ltd. | 254,000 | 146 | ||||||||||
Mega Financial Holding Co. Ltd. | 353,000 | 318 | ||||||||||
Shanghai Commercial & Savings Bank Ltd. (a) | 23,736 | 29 | ||||||||||
Shin Kong Financial Holding Co. Ltd. | 365,000 | 111 | ||||||||||
SinoPac Financial Holdings Co. Ltd. | 165,000 | 73 | ||||||||||
Taishin Financial Holding Co. Ltd. | 673,000 | 280 | ||||||||||
Taiwan Business Bank (a) | 297,000 | 92 | ||||||||||
Taiwan Cooperative Financial Holding Co. Ltd. | 313,000 | 164 | ||||||||||
Yuanta Financial Holding Co. Ltd. | 120,000 | 65 | ||||||||||
|
| |||||||||||
2,568 | ||||||||||||
|
| |||||||||||
INDUSTRIALS 0.1% | ||||||||||||
Far Eastern New Century Corp. | 226,000 | 239 | ||||||||||
|
| |||||||||||
INFORMATION TECHNOLOGY 5.7% | ||||||||||||
Acer, Inc. (a) | 870,000 | 421 | ||||||||||
Advanced Semiconductor Engineering, Inc. | 23,000 | 31 | ||||||||||
Asustek Computer, Inc. | 70,000 | 682 | ||||||||||
AU Optronics Corp. | 1,606,000 | 713 | ||||||||||
Compal Electronics, Inc. | 1,059,000 | 805 | ||||||||||
Coretronic Corp. | 72,000 | 88 |
SHARES | MARKET VALUE (000S) | |||||||||||
D-Link Corp. | 127,000 | $ | 53 | |||||||||
Delta Electronics, Inc. | 25,000 | 128 | ||||||||||
Gigabyte Technology Co. Ltd. | 67,000 | 68 | ||||||||||
Hon Hai Precision Industry Co. Ltd. | 463,000 | 1,455 | ||||||||||
HTC Corp. (a) | 312,000 | 727 | ||||||||||
Innolux Corp. | 612,000 | 319 | ||||||||||
Inventec Corp. | 43,000 | 30 | ||||||||||
Lite-On Technology Corp. | 354,000 | 415 | ||||||||||
Macronix International (a) | 137,000 | 26 | ||||||||||
MediaTek, Inc. | 3,000 | 41 | ||||||||||
Novatek Microelectronics Corp. | 10,000 | 48 | ||||||||||
Pegatron Corp. | 178,000 | 521 | ||||||||||
Powertech Technology, Inc. | 132,000 | 286 | ||||||||||
Quanta Computer, Inc. | 181,000 | 428 | ||||||||||
Siliconware Precision Industries Co. Ltd. | 109,000 | 166 | ||||||||||
Synnex Technology International Corp. | 20,000 | 30 | ||||||||||
Taiwan Semiconductor Manufacturing Co. Ltd. SP - ADR | 138,890 | 3,154 | ||||||||||
TPK Holding Co. Ltd. | 4,000 | 23 | ||||||||||
Unimicron Technology Corp. | 74,000 | 38 | ||||||||||
United Microelectronics Corp. | 878,000 | 371 | ||||||||||
Wistron Corp. | 356,000 | 270 | ||||||||||
WPG Holdings Ltd. | 23,000 | 29 | ||||||||||
|
| |||||||||||
11,366 | ||||||||||||
|
| |||||||||||
MATERIALS 0.5% | ||||||||||||
Asia Cement Corp. | 146,000 | 173 | ||||||||||
China Petrochemical Development Corp. | 209,000 | 65 | ||||||||||
China Steel Corp. | 262,000 | 209 | ||||||||||
Formosa Chemicals & Fibre Corp. | 79,000 | 190 | ||||||||||
Formosa Plastics Corp. | 76,000 | 179 | ||||||||||
Nan Ya Plastics Corp. | 13,000 | 30 | ||||||||||
Taiwan Cement Corp. | 98,000 | 124 | ||||||||||
|
| |||||||||||
970 | ||||||||||||
|
| |||||||||||
TELECOMMUNICATION SERVICES 1.1% | ||||||||||||
Chunghwa Telecom Co. Ltd. | 543,000 | 1,733 | ||||||||||
Far EasTone Telecommunications Co. Ltd. | 146,000 | 353 | ||||||||||
Taiwan Mobile Co. Ltd. | 24,000 | 80 | ||||||||||
|
| |||||||||||
2,166 | ||||||||||||
|
| |||||||||||
Total Taiwan | 18,047 | |||||||||||
|
| |||||||||||
THAILAND 2.9% | ||||||||||||
CONSUMER STAPLES 0.0% | ||||||||||||
Charoen Pokphand Foods PCL | 41,500 | 29 | ||||||||||
CP ALL PCL | 24,100 | 33 | ||||||||||
|
| |||||||||||
62 | ||||||||||||
|
| |||||||||||
ENERGY 1.3% | ||||||||||||
Banpu PCL | 939,700 | 708 | ||||||||||
PTT Exploration & Production PCL | 120,200 | 387 |
See Accompanying Notes | ANNUAL REPORT | JUNE 30, 2015 | 27 |
Table of Contents
Schedule of Investments PIMCO RAE Fundamental Emerging Markets Fund (Cont.)
SHARES | MARKET VALUE (000S) | |||||||||||
PTT PCL | 134,200 | $ | 1,422 | |||||||||
Thai Oil PCL | 91,800 | 149 | ||||||||||
|
| |||||||||||
2,666 | ||||||||||||
|
| |||||||||||
FINANCIALS 1.1% | ||||||||||||
Bangkok Bank PCL | 142,700 | 753 | ||||||||||
Kasikornbank PCL | 73,800 | 412 | ||||||||||
Kiatnakin Bank PCL | 24,600 | 26 | ||||||||||
Krung Thai Bank PCL | 641,975 | 324 | ||||||||||
Siam Commercial Bank PCL | 110,300 | 506 | ||||||||||
Thanachart Capital PCL | 111,100 | 109 | ||||||||||
|
| |||||||||||
2,130 | ||||||||||||
|
| |||||||||||
INDUSTRIALS 0.2% | ||||||||||||
Delta Electronics Thailand PCL | 64,500 | 173 | ||||||||||
Thai Airways International PCL | 600,800 | 232 | ||||||||||
|
| |||||||||||
405 | ||||||||||||
|
| |||||||||||
MATERIALS 0.2% | ||||||||||||
PTT Global Chemical PCL | 118,100 | 242 | ||||||||||
Siam Cement PCL | 10,000 | 153 | ||||||||||
|
| |||||||||||
395 | ||||||||||||
|
| |||||||||||
TELECOMMUNICATION SERVICES 0.1% | ||||||||||||
Advanced Info Service PCL | 19,000 | 135 | ||||||||||
|
| |||||||||||
Total Thailand | 5,793 | |||||||||||
|
| |||||||||||
Total Common Stocks |
| 166,860 | ||||||||||
|
| |||||||||||
EQUITY-LINKED SECURITIES 10.3% | ||||||||||||
INDIA 0.8% | ||||||||||||
FINANCIALS 0.8% | ||||||||||||
JP Morgan Chase Bank, N.A., Axis Bank Ltd. - Exp. 01/25/2018 | 179,494 | 1,577 | ||||||||||
|
| |||||||||||
Total India | 1,577 | |||||||||||
|
| |||||||||||
LUXEMBOURG 3.3% | ||||||||||||
CONSUMER DISCRETIONARY 0.5% | ||||||||||||
Merrill Lynch International & Co., Apollo Tyres Ltd. - Exp. 03/04/2019 | 76,513 | 205 | ||||||||||
Merrill Lynch International & Co., Ashok Leyland Ltd. - Exp. 05/13/2019 | 330,946 | 377 | ||||||||||
Merrill Lynch International & Co., ITC Ltd. - Exp. 05/22/2018 | 63,247 | 313 | ||||||||||
|
| |||||||||||
895 | ||||||||||||
|
| |||||||||||
CONSUMER STAPLES 0.4% | ||||||||||||
Merrill Lynch International & Co., Hindustan Unilever Ltd. - Exp. 06/17/2019 | 10,614 | 153 | ||||||||||
Merrill Lynch International & Co., Larsen & Toubro Ltd. - Exp. 05/29/2018 | 20,652 | 579 | ||||||||||
|
| |||||||||||
732 | ||||||||||||
|
|
SHARES | MARKET VALUE (000S) | |||||||||||
ENERGY 0.2% | ||||||||||||
JP Morgan Chase Bank, N.A., Crompton Greaves Ltd. - Exp. 09/04/2019 | 49,588 | $ | 127 | |||||||||
JP Morgan Chase Bank, N.A., Essar Oil Ltd. - Exp. 11/02/2016 | 23,830 | 52 | ||||||||||
JP Morgan Chase Bank, N.A., Indian Oil Corp. Ltd. - Exp. 04/26/2016 | 9,284 | 56 | ||||||||||
JP Morgan Chase Bank, N.A., Indian Oil Corp. Ltd. - Exp. 09/02/2019 | 11,668 | 71 | ||||||||||
Merrill Lynch International & Co., Cairn India Ltd. - Exp. 05/31/2018 | 35,057 | 100 | ||||||||||
|
| |||||||||||
406 | ||||||||||||
|
| |||||||||||
FINANCIALS 1.1% | ||||||||||||
JP Morgan Chase Bank, N.A., ICICI Bank Ltd. - Exp. 07/02/2019 | 422,243 | 2,044 | ||||||||||
JP Morgan Chase Bank, N.A., Indian Bank - Exp. 10/29/2018 | 14,238 | 32 | ||||||||||
JP Morgan Chase Bank, N.A., Indian Overseas Bank - Exp. 05/03/2019 | 84,172 | 49 | ||||||||||
JP Morgan Chase Bank, N.A., Jammu & Kashmir Bank Ltd. - Exp. 07/02/2019 | 16,965 | 27 | ||||||||||
JP Morgan Chase Bank, N.A., Karur Vysya Bank Ltd. - Exp. 03/03/2020 | 3,176 | 24 | ||||||||||
Merrill Lynch International & Co., Housing Development Finance Corp. Ltd. - Exp. 05/29/2018 | 1,376 | 28 | ||||||||||
Merrill Lynch International & Co., Shriram Transport Finance Co. Ltd. - Exp. 01/30/2019 | 4,374 | 59 | ||||||||||
|
| |||||||||||
2,263 | ||||||||||||
|
| |||||||||||
HEALTH CARE 0.1% | ||||||||||||
JP Morgan Chase Bank, N.A., Dr Reddy’s Laboratories Ltd. - Exp. 03/03/2020 | 566 | 32 | ||||||||||
JP Morgan Chase Bank, N.A., Sun Pharmaceutical Industries Ltd. - Exp. 04/03/2018 | 14,197 | 195 | ||||||||||
|
| |||||||||||
227 | ||||||||||||
|
| |||||||||||
INDUSTRIALS 0.4% | ||||||||||||
JP Morgan Chase Bank, N.A., India Cements Ltd. - Exp. 04/30/2019 | 45,733 | 68 | ||||||||||
Merrill Lynch International & Co., Hindalco Industries Ltd. - Exp. 11/25/2019 | 332,635 | 585 | ||||||||||
Merrill Lynch International & Co., Steel Authority of India Ltd. - Exp. 05/30/2018 | 151,981 | 147 | ||||||||||
|
| |||||||||||
800 | ||||||||||||
|
| |||||||||||
INFORMATION TECHNOLOGY 0.0% | ||||||||||||
Merrill Lynch International & Co., Tata Consultancy Services Ltd. - Exp. 01/08/2019 | 690 | 28 | ||||||||||
|
| |||||||||||
MATERIALS 0.2% | ||||||||||||
Merrill Lynch International & Co., UPL Ltd. - Exp. 03/18/2019 | 41,390 | 348 | ||||||||||
|
|
SHARES | MARKET VALUE (000S) | |||||||||||
TELECOMMUNICATION SERVICES 0.0% | ||||||||||||
Merrill Lynch International & Co., Idea Cellular Ltd. - Exp. 06/07/2018 | 11,162 | $ | 31 | |||||||||
|
| |||||||||||
UTILITIES 0.4% | ||||||||||||
JP Morgan Chase Bank, N.A., Power Grid Corp. of India Ltd. - Exp. 12/05/2018 | 44,854 | 98 | ||||||||||
JP Morgan Chase Bank, N.A., Reliance Infrastructure Ltd. - Exp. 07/09/2019 | 14,728 | 90 | ||||||||||
JP Morgan Chase Bank, N.A., Tata Power Co. Ltd. - Exp. 04/05/2019 | 261,265 | 304 | ||||||||||
Merrill Lynch International & Co., CESC Ltd. - Exp. 05/22/2018 | 30,608 | 269 | ||||||||||
|
| |||||||||||
761 | ||||||||||||
|
| |||||||||||
Total Luxembourg | 6,491 | |||||||||||
|
| |||||||||||
NETHERLANDS 1.1% | ||||||||||||
FINANCIALS 0.3% | ||||||||||||
JP Morgan Chase Bank, N.A., Punjab National Bank - Exp. 05/05/2016 | 309,739 | 676 | ||||||||||
|
| |||||||||||
INDUSTRIALS 0.8% | ||||||||||||
JP Morgan Chase Bank, N.A., Tata Steel Ltd. - Exp. 12/21/2015 | 310,989 | 1,489 | ||||||||||
|
| |||||||||||
Total Netherlands | 2,165 | |||||||||||
|
| |||||||||||
UNITED KINGDOM 2.3% | ||||||||||||
ENERGY 0.1% | ||||||||||||
HSBC Bank PLC, Suzlon Energy - Exp. 06/30/2016 | 286,294 | 100 | ||||||||||
|
| |||||||||||
FINANCIALS 0.8% | ||||||||||||
HSBC Bank PLC, Allahabad Bank - Exp. 06/30/2016 | 70,458 | 96 | ||||||||||
HSBC Bank PLC, Andhra Bank - Exp. 10/28/2016 | 97,969 | 105 | ||||||||||
HSBC Bank PLC, Bank of Boroda - Exp. 06/30/2016 | 300,641 | 681 | ||||||||||
HSBC Bank PLC, Canara Bank - Exp. 06/30/2016 | 64,529 | 282 | ||||||||||
HSBC Bank PLC, Indiabulls Housing Finance Ltd. - Exp. 09/01/2017 | 12,855 | 126 | ||||||||||
HSBC Bank PLC, Oriental Bank of Commerce - Exp. 06/30/2016 | 36,080 | 95 | ||||||||||
HSBC Bank PLC, Syndicate Bank - Exp. 10/20/2016 | 78,998 | 122 | ||||||||||
HSBC Bank PLC, Union Bank of India - Exp. 06/30/2016 | 98,234 | 228 | ||||||||||
|
| |||||||||||
1,735 | ||||||||||||
|
| |||||||||||
INDUSTRIALS 0.9% | ||||||||||||
HSBC Bank PLC, Aban Offshore Ltd. - Exp. 10/28/2016 | 24,134 | 115 | ||||||||||
HSBC Bank PLC, ACC Ltd. - Exp. 06/30/2016 | 3,866 | 88 | ||||||||||
HSBC Bank PLC, Ambuja Cements Ltd. - Exp. 11/25/2016 | 25,976 | 94 |
28 | PIMCO EQUITY SERIES | See Accompanying Notes |
Table of Contents
June 30, 2015
SHARES | MARKET VALUE (000S) | |||||||||||
HSBC Bank PLC, Bharat Heavy Electricals Ltd. - Exp. 06/30/2016 | 215,411 | $ | 839 | |||||||||
HSBC Bank PLC, Jaiprakash Associates Ltd. - Exp. 10/28/2016 | 780,354 | 137 | ||||||||||
HSBC Bank PLC, JSW Steel Ltd. - Exp. 06/30/2016 | 29,082 | 399 | ||||||||||
HSBC Bank PLC, Vedanta - Exp. 06/30/2016 | 39,072 | 107 | ||||||||||
|
| |||||||||||
1,779 | ||||||||||||
|
| |||||||||||
TELECOMMUNICATION SERVICES 0.1% | ||||||||||||
HSBC Bank PLC, Aditya Birla Nuvo Ltd. - Exp. 06/30/2016 | 9,447 | 265 | ||||||||||
|
| |||||||||||
UTILITIES 0.4% | ||||||||||||
HSBC Bank PLC, GAIL India Ltd. - Exp. 03/10/2016 | 43,082 | 266 | ||||||||||
HSBC Bank PLC, NTPC Ltd. - Exp. 03/10/2016 | 187,217 | 405 | ||||||||||
HSBC Bank PLC, Tata Power Co. Ltd. - Exp. 10/28/2016 | 11,666 | 77 | ||||||||||
|
| |||||||||||
748 | ||||||||||||
|
| |||||||||||
Total United Kingdom | 4,627 | |||||||||||
|
| |||||||||||
UNITED STATES 2.8% | ||||||||||||
CONSUMER DISCRETIONARY 0.3% | ||||||||||||
Citigroup Global Markets Holdings, Inc., Hero MotoCorp Ltd. - Exp. 02/12/2016 | 6,634 | 263 | ||||||||||
Citigroup Global Markets Holdings, Inc., Mahindra & Mahindra Ltd. - Exp. 02/12/2016 | 12,983 | 262 | ||||||||||
JP Morgan Chase Bank, N.A., Bajaj Auto Ltd. - Exp. 07/29/2016 | 1,314 | 52 | ||||||||||
|
| |||||||||||
577 | ||||||||||||
|
| |||||||||||
ENERGY 1.6% | ||||||||||||
Citigroup Global Markets Holdings, Inc., Bharat Petroleum Corp. Ltd. - Exp. 02/12/2016 | 53,692 | 742 | ||||||||||
Citigroup Global Markets Holdings, Inc., Coal India Ltd. - Exp. 02/12/2016 | 71,174 | 472 | ||||||||||
Citigroup Global Markets Holdings, Inc., Hindustan Petroleum Corp. Ltd. - Exp. 02/12/2016 | 82,180 | 942 | ||||||||||
Citigroup Global Markets Holdings, Inc., Jindal Steel & Power Ltd. - Exp. 02/12/2016 | 61,545 | 83 | ||||||||||
Citigroup Global Markets Holdings, Inc., Oil & Natural Gas Corp. Ltd. - Exp. 02/12/2016 | 204,856 | 997 | ||||||||||
|
| |||||||||||
3,236 | ||||||||||||
|
|
SHARES | MARKET VALUE (000S) | |||||||||||
FINANCIALS 0.5% | ||||||||||||
Citigroup Global Markets Holdings, Inc., Bank of India - Exp. 02/12/2016 | 76,768 | $ | 207 | |||||||||
Citigroup Global Markets Holdings, Inc., Federal Bank Ltd. - Exp. 02/12/2016 | 97,452 | 226 | ||||||||||
Citigroup Global Markets Holdings, Inc., South Indian Bank Ltd. - Exp. 02/12/2016 | 144,141 | 54 | ||||||||||
Citigroup Global Markets Holdings, Inc., Yes Bank Ltd. - Exp. 02/12/2016 | 39,661 | 526 | ||||||||||
|
| |||||||||||
1,013 | ||||||||||||
|
| |||||||||||
INDUSTRIALS 0.1% | ||||||||||||
Citigroup Global Markets Holdings, Inc., NMDC Ltd. - Exp. 02/12/2016 | 71,108 | 133 | ||||||||||
|
| |||||||||||
INFORMATION TECHNOLOGY 0.0% | ||||||||||||
Citigroup Global Markets Holdings, Inc., HCL Technologies Ltd. - Exp. 02/12/2016 | 1,831 | 26 | ||||||||||
|
| |||||||||||
TELECOMMUNICATION SERVICES 0.2% | ||||||||||||
Citigroup Global Markets Holdings, Inc., Bharti Airtel Ltd. - Exp. 02/12/2016 | 28,086 | 186 | ||||||||||
Citigroup Global Markets Holdings, Inc., Reliance Communications Ltd. - Exp. 02/12/2016 | 254,142 | 248 | ||||||||||
|
| |||||||||||
434 | ||||||||||||
|
| |||||||||||
UTILITIES 0.1% | ||||||||||||
JP Morgan Chase Bank, N.A., Reliance Infrastructure Ltd. - Exp. 04/26/2016 | 3,334 | 20 | ||||||||||
JP Morgan Chase Bank, N.A., Tata Power Co. Ltd. - Exp. 04/26/2016 | 122,392 | 143 | ||||||||||
|
| |||||||||||
163 | ||||||||||||
|
| |||||||||||
Total United States | 5,582 | |||||||||||
|
| |||||||||||
Total Equity-Linked Securities (Cost $21,039) |
| 20,442 | ||||||||||
|
| |||||||||||
PREFERRED STOCKS 4.4% | ||||||||||||
BRAZIL 3.9% | ||||||||||||
BANKING & FINANCE 0.1% | ||||||||||||
Banco do Estado do Rio Grande do Sul S.A. | 59,100 | 169 | ||||||||||
|
| |||||||||||
CONSUMER STAPLES 0.1% | ||||||||||||
Cia Brasileira de Distribuicao | 10,000 | 236 | ||||||||||
|
|
SHARES | MARKET VALUE (000S) | |||||||||||
INDUSTRIALS 2.5% | ||||||||||||
Braskem S.A. | 40,200 | $ | 176 | |||||||||
Metalurgica Gerdau S.A. | 107,000 | 219 | ||||||||||
Oi S.A. | 271,270 | 511 | ||||||||||
Suzano Papel e Celulose S.A. | 5,700 | 31 | ||||||||||
Usinas Siderurgicas de Minas Gerais S.A. | 25,000 | 33 | ||||||||||
Vale S.A. | 791,300 | 3,965 | ||||||||||
|
| |||||||||||
4,935 | ||||||||||||
|
| |||||||||||
UTILITIES 1.2% | ||||||||||||
AES Tiete S.A. | 62,800 | 353 | ||||||||||
Centrais Eletricas Brasileiras S.A. | 368,400 | 1,004 | ||||||||||
Cia Energetica de Sao Paulo | 62,000 | 391 | ||||||||||
Cia Paranaense de Energia | 24,500 | 275 | ||||||||||
Eletropaulo Metropolitana Eletricidade de Sao Paulo S.A. | 75,800 | 434 | ||||||||||
|
| |||||||||||
2,457 | ||||||||||||
|
| |||||||||||
Total Brazil | 7,797 | |||||||||||
|
| |||||||||||
RUSSIA 0.5% | ||||||||||||
UTILITIES 0.5% | ||||||||||||
AK Transneft OAO | 363 | 860 | ||||||||||
Bashneft OAO | 7,519 | 194 | ||||||||||
|
| |||||||||||
1,054 | ||||||||||||
|
| |||||||||||
Total Russia | 1,054 | |||||||||||
|
| |||||||||||
Total Preferred Stocks |
| 8,851 | ||||||||||
|
| |||||||||||
REAL ESTATE INVESTMENT TRUSTS 0.0% | ||||||||||||
SOUTH AFRICA 0.0% | ||||||||||||
FINANCIALS 0.0% | ||||||||||||
Growthpoint Properties Ltd. | 23,695 | 52 | ||||||||||
Redefine Properties Ltd. | 34,876 | 29 | ||||||||||
|
| |||||||||||
81 | ||||||||||||
|
| |||||||||||
Total Real Estate Investment Trusts (Cost $77) | 81 | |||||||||||
|
| |||||||||||
Total Investments in Securities (Cost $201,514) | 196,234 | |||||||||||
Total Investments 98.4% (Cost $201,514) | $ | 196,234 | ||||||||||
Other Assets and Liabilities, net 1.6% | 3,183 | |||||||||||
|
| |||||||||||
Net Assets 100.0% | $ | 199,417 | ||||||||||
|
|
NOTES TO SCHEDULE OF INVESTMENTS (AMOUNTS IN THOUSANDS*):
* | A zero balance may reflect actual amounts rounding to less than one thousand. |
(a) | Security did not produce income within the last twelve months. |
See Accompanying Notes | ANNUAL REPORT | JUNE 30, 2015 | 29 |
Table of Contents
Schedule of Investments PIMCO RAE Fundamental Emerging Markets Fund (Cont.)
FAIR VALUE OF FINANCIAL DERIVATIVE INSTRUMENTS
The following is a summary of the fair valuation of the Fund’s derivative instruments categorized by risk exposure. See Note 5, Principal Risks, in the Notes to Financial Statements on risks of the Fund.
The Effect of Financial Derivative Instruments on the Consolidated Statements of Operations for the period ended June 30, 2015:
Derivatives not accounted for as hedging instruments | ||||||||||||||||||||||||
Commodity Contracts | Credit Contracts | Equity Contracts | Foreign Exchange Contracts | Interest Rate Contracts | Total | |||||||||||||||||||
Net Realized Gain on Financial Derivative Instruments | ||||||||||||||||||||||||
Over the counter | ||||||||||||||||||||||||
Forward Foreign Currency Contracts | $ | 0 | $ | 0 | $ | 0 | $ | (7 | ) | $ | 0 | $ | (7 | ) | ||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
FAIR VALUE MEASUREMENTS
The following is a summary of the fair valuations according to the inputs used as of June 30, 2015 in valuing the Fund’s assets and liabilities: :
Category and Subcategory | Level 1 | Level 2 | Level 3 | Fair Value at 06/30/2015 | ||||||||||||
Investments in Securities, at Value | ||||||||||||||||
Common Stocks | ||||||||||||||||
Brazil | ||||||||||||||||
Consumer Discretionary | $ | 91 | $ | 0 | $ | 0 | $ | 91 | ||||||||
Consumer Staples | 1,336 | 0 | 0 | 1,336 | ||||||||||||
Energy | 1,729 | 0 | 0 | 1,729 | ||||||||||||
Financials | 9,265 | 0 | 0 | 9,265 | ||||||||||||
Industrials | 241 | 0 | 0 | 241 | ||||||||||||
Materials | 948 | 0 | 0 | 948 | ||||||||||||
Telecommunication Services | 1,158 | 0 | 0 | 1,158 | ||||||||||||
Utilities | 3,517 | 0 | 0 | 3,517 | ||||||||||||
China | ||||||||||||||||
Consumer Discretionary | 0 | 439 | 21 | 460 | ||||||||||||
Consumer Staples | 0 | 35 | 0 | 35 | ||||||||||||
Energy | �� | 142 | 5,696 | 0 | 5,838 | |||||||||||
Financials | 0 | 27,899 | 0 | 27,899 | ||||||||||||
Industrials | 0 | 1,680 | 0 | 1,680 | ||||||||||||
Information Technology | 0 | 300 | 0 | 300 | ||||||||||||
Materials | 0 | 590 | 0 | 590 | ||||||||||||
Telecommunication Services | 0 | 1,260 | 0 | 1,260 | ||||||||||||
Utilities | 0 | 455 | 0 | 455 | ||||||||||||
Greece | ||||||||||||||||
Consumer Discretionary | 0 | 212 | 0 | 212 | ||||||||||||
Energy | 0 | 30 | 0 | 30 | ||||||||||||
Telecommunication Services | 0 | 278 | 0 | 278 | ||||||||||||
Utilities | 0 | 77 | 0 | 77 | ||||||||||||
Hong Kong | ||||||||||||||||
Consumer Staples | 0 | 626 | 0 | 626 | ||||||||||||
Financials | 0 | 1,339 | 0 | 1,339 | ||||||||||||
Industrials | 0 | 215 | 0 | 215 | ||||||||||||
Telecommunication Services | 0 | 6,491 | 0 | 6,491 | ||||||||||||
Utilities | 0 | 235 | 0 | 235 | ||||||||||||
India | ||||||||||||||||
Consumer Discretionary | 873 | 0 | 0 | 873 | ||||||||||||
Energy | 1,029 | 0 | 0 | 1,029 | ||||||||||||
Financials | 2,709 | 0 | 0 | 2,709 | ||||||||||||
Information Technology | 502 | 0 | 0 | 502 | ||||||||||||
Materials | 0 | 307 | 0 | 307 | ||||||||||||
Indonesia | ||||||||||||||||
Consumer Discretionary | 0 | 169 | 0 | 169 | ||||||||||||
Consumer Staples | 0 | 80 | 0 | 80 | ||||||||||||
Energy | 0 | 289 | 0 | 289 | ||||||||||||
Financials | 0 | 1,359 | 0 | 1,359 | ||||||||||||
Industrials | 0 | 73 | 0 | 73 | ||||||||||||
Materials | 0 | 48 | 0 | 48 | ||||||||||||
Telecommunication Services | 0 | 1,505 | 0 | 1,505 | ||||||||||||
Utilities | 0 | 60 | 0 | 60 | ||||||||||||
Mexico | ||||||||||||||||
Consumer Discretionary | 81 | 0 | 0 | 81 | ||||||||||||
Consumer Staples | 582 | 0 | 0 | 582 |
Category and Subcategory | Level 1 | Level 2 | Level 3 | Fair Value at 06/30/2015 | ||||||||||||
Financials | $ | 411 | $ | 0 | $ | 0 | $ | 411 | ||||||||
Industrials | 210 | 0 | 0 | 210 | ||||||||||||
Materials | 1,155 | 28 | 0 | 1,183 | ||||||||||||
Telecommunication Services | 2,773 | 0 | 0 | 2,773 | ||||||||||||
Poland | ||||||||||||||||
Energy | 34 | 931 | 0 | 965 | ||||||||||||
Financials | 226 | 491 | 0 | 717 | ||||||||||||
Industrials | 0 | 28 | 0 | 28 | ||||||||||||
Information Technology | 0 | 32 | 0 | 32 | ||||||||||||
Materials | 26 | 902 | 0 | 928 | ||||||||||||
Telecommunication Services | 0 | 470 | 0 | 470 | ||||||||||||
Utilities | 29 | 639 | 0 | 668 | ||||||||||||
Russia | ||||||||||||||||
Consumer Staples | 369 | 35 | 0 | 404 | ||||||||||||
Energy | 13,379 | 0 | 0 | 13,379 | ||||||||||||
Financials | 646 | 0 | 0 | 646 | ||||||||||||
Industrials | 0 | 265 | 0 | 265 | ||||||||||||
Materials | 2,695 | 71 | 0 | 2,766 | ||||||||||||
Telecommunication Services | 1,225 | 1,167 | 0 | 2,392 | ||||||||||||
Utilities | 0 | 237 | 0 | 237 | ||||||||||||
South Africa | ||||||||||||||||
Consumer Discretionary | 183 | 1,333 | 0 | 1,516 | ||||||||||||
Consumer Staples | 0 | 395 | 0 | 395 | ||||||||||||
Energy | 0 | 1,647 | 0 | 1,647 | ||||||||||||
Financials | 496 | 6,988 | 0 | 7,484 | ||||||||||||
Health Care | 0 | 187 | 0 | 187 | ||||||||||||
Industrials | 0 | 346 | 0 | 346 | ||||||||||||
Information Technology | 128 | 0 | 0 | 128 | ||||||||||||
Materials | 2,240 | 1,108 | 0 | 3,348 | ||||||||||||
Telecommunication Services | 0 | 3,591 | 0 | 3,591 | ||||||||||||
South Korea | ||||||||||||||||
Consumer Discretionary | 0 | 2,721 | 0 | 2,721 | ||||||||||||
Consumer Staples | 139 | 192 | 0 | 331 | ||||||||||||
Energy | 0 | 1,504 | 0 | 1,504 | ||||||||||||
Financials | 0 | 5,488 | 0 | 5,488 | ||||||||||||
Industrials | 0 | 1,702 | 0 | 1,702 | ||||||||||||
Information Technology | 0 | 4,287 | 0 | 4,287 | ||||||||||||
Materials | 0 | 1,088 | 0 | 1,088 | ||||||||||||
Telecommunication Services | 1,306 | 547 | 0 | 1,853 | ||||||||||||
Utilities | 0 | 959 | 0 | 959 | ||||||||||||
Taiwan | ||||||||||||||||
Consumer Discretionary | 0 | 444 | 0 | 444 | ||||||||||||
Consumer Staples | 0 | 294 | 0 | 294 | ||||||||||||
Financials | 0 | 2,568 | 0 | 2,568 | ||||||||||||
Industrials | 0 | 239 | 0 | 239 | ||||||||||||
Information Technology | 3,154 | 8,212 | 0 | 11,366 | ||||||||||||
Materials | 0 | 970 | 0 | 970 | ||||||||||||
Telecommunication Services | 0 | 2,166 | 0 | 2,166 | ||||||||||||
Thailand | ||||||||||||||||
Consumer Staples | 0 | 62 | 0 | 62 |
30 | PIMCO EQUITY SERIES | See Accompanying Notes |
Table of Contents
June 30, 2015
Category and Subcategory | Level 1 | Level 2 | Level 3 | Fair Value at 06/30/2015 | ||||||||||||
Energy | $ | 0 | $ | 2,666 | $ | 0 | $ | 2,666 | ||||||||
Financials | 0 | 2,130 | 0 | 2,130 | ||||||||||||
Industrials | 173 | 232 | 0 | 405 | ||||||||||||
Materials | 0 | 395 | 0 | 395 | ||||||||||||
Telecommunication Services | 0 | 135 | 0 | 135 | ||||||||||||
Equity-Linked Securities | ||||||||||||||||
India | ||||||||||||||||
Financials | 0 | 1,577 | 0 | 1,577 | ||||||||||||
Luxembourg | ||||||||||||||||
Consumer Discretionary | 0 | 895 | 0 | 895 | ||||||||||||
Consumer Staples | 0 | 732 | 0 | 732 | ||||||||||||
Energy | 0 | 406 | 0 | 406 | ||||||||||||
Financials | 0 | 2,263 | 0 | 2,263 | ||||||||||||
Health Care | 0 | 227 | 0 | 227 | ||||||||||||
Industrials | 0 | 800 | 0 | 800 | ||||||||||||
Information Technology | 0 | 28 | 0 | 28 | ||||||||||||
Materials | 0 | 348 | 0 | 348 | ||||||||||||
Telecommunication Services | 0 | 31 | 0 | 31 | ||||||||||||
Utilities | 0 | 761 | 0 | 761 | ||||||||||||
Netherlands | ||||||||||||||||
Financials | 0 | 676 | 0 | 676 | ||||||||||||
Industrials | 0 | 1,489 | 0 | 1,489 | ||||||||||||
United Kingdom | ||||||||||||||||
Energy | 0 | 100 | 0 | 100 | ||||||||||||
Financials | 0 | 1,735 | 0 | 1,735 |
Category and Subcategory | Level 1 | Level 2 | Level 3 | Fair Value at 06/30/2015 | ||||||||||||
Industrials | $ | 0 | $ | 1,779 | $ | 0 | $ | 1,779 | ||||||||
Telecommunication Services | 0 | 265 | 0 | 265 | ||||||||||||
Utilities | 0 | 748 | 0 | 748 | ||||||||||||
United States | ||||||||||||||||
Consumer Discretionary | 0 | 577 | 0 | 577 | ||||||||||||
Energy | 0 | 3,236 | 0 | 3,236 | ||||||||||||
Financials | 0 | 1,013 | 0 | 1,013 | ||||||||||||
Industrials | 0 | 133 | 0 | 133 | ||||||||||||
Information Technology | 0 | 26 | 0 | 26 | ||||||||||||
Telecommunication Services | 0 | 434 | 0 | 434 | ||||||||||||
Utilities | 0 | 163 | 0 | 163 | ||||||||||||
Preferred Stocks | ||||||||||||||||
Brazil | ||||||||||||||||
Banking & Finance | 169 | 0 | 0 | 169 | ||||||||||||
Consumer Staples | 236 | 0 | 0 | 236 | ||||||||||||
Industrials | 4,935 | 0 | 0 | 4,935 | ||||||||||||
Utilities | 2,457 | 0 | 0 | 2,457 | ||||||||||||
Russia | ||||||||||||||||
Utilities | 1,054 | 0 | 0 | 1,054 | ||||||||||||
Real Estate Investment Trusts | ||||||||||||||||
South Africa | ||||||||||||||||
Financials | 0 | 81 | 0 | 81 | ||||||||||||
Total Investments | $ | 64,051 | $ | 132,162 | $ | 21 | $ | 196,234 |
There were no significant transfers between Levels 1, 2, or 3 during the period ended June 30, 2015.
See Accompanying Notes | ANNUAL REPORT | JUNE 30, 2015 | 31 |
Table of Contents
Schedule of Investments PIMCO RAE Fundamental Global Fund
June 30, 2015
SHARES | MARKET VALUE (000S) | |||||||||||
INVESTMENTS IN AFFILIATES 99.9% | ||||||||||||
MUTUAL FUNDS (a) 99.9% | ||||||||||||
UNITED STATES 99.9% | ||||||||||||
PIMCO RAE Fundamental Emerging Markets Fund | 479,059 | $ | 4,767 | |||||||||
PIMCO RAE Fundamental International Fund | 1,378,036 | 13,546 | ||||||||||
PIMCO RAE Fundamental US Fund | 2,014,913 | 19,847 | ||||||||||
|
| |||||||||||
Total Mutual Funds (Cost $38,704) |
| 38,160 | ||||||||||
|
| |||||||||||
Total Investments in Affiliates (Cost $38,704) | 38,160 | |||||||||||
Total Investments 99.9% (Cost $38,704) | $ | 38,160 | ||||||||||
Other Assets and Liabilities, net 0.1% | 37 | |||||||||||
|
| |||||||||||
Net Assets 100.0% | $ | 38,197 | ||||||||||
|
|
NOTES TO SCHEDULE OF INVESTMENTS (AMOUNTS IN THOUSANDS*):
* | A zero balance may reflect actual amounts rounding to less than one thousand. |
(a) | Institutional Class Shares of each Fund. |
FAIR VALUE MEASUREMENTS
The following is a summary of the fair valuations according to the inputs used as of June 30, 2015 in valuing the Fund’s assets and liabilities:
Category and Subcategory | Level 1 | Level 2 | Level 3 | Fair Value at 06/30/2015 | ||||||||||||
Investments in Affiliates, at Value | ||||||||||||||||
Mutual Funds | ||||||||||||||||
United States | $ | 38,160 | $ | 0 | $ | 0 | $ | 38,160 | ||||||||
Totals | $ | 38,160 | $ | 0 | $ | 0 | $ | 38,160 |
There were no significant transfers between Levels 1, 2, or 3 during the period ended June 30, 2015.
32 | PIMCO EQUITY SERIES | See Accompanying Notes |
Table of Contents
Schedule of Investments PIMCO RAE Fundamental Global ex-US Fund
June 30, 2015
SHARES | MARKET VALUE (000S) | |||||||||||
INVESTMENTS IN AFFILIATES 99.9% | ||||||||||||
MUTUAL FUNDS (a) 99.9% | ||||||||||||
UNITED STATES 99.9% | ||||||||||||
PIMCO RAE Fundamental Emerging Markets Fund | 1,832,290 | $ | 18,231 | |||||||||
PIMCO RAE Fundamental International Fund | 5,270,160 | 51,806 | ||||||||||
|
| |||||||||||
Total Mutual Funds (Cost $70,994) |
| 70,037 | ||||||||||
|
| |||||||||||
Total Investments in Affiliates (Cost $70,994) | 70,037 | |||||||||||
Total Investments 99.9% (Cost $70,994) | $ | 70,037 | ||||||||||
Other Assets and Liabilities, net 0.1% | 70 | |||||||||||
|
| |||||||||||
Net Assets 100.0% | $ | 70,107 | ||||||||||
|
|
NOTES TO SCHEDULE OF INVESTMENTS (AMOUNTS IN THOUSANDS*):
* | A zero balance may reflect actual amounts rounding to less than one thousand. |
(a) | Institutional Class Shares of each Fund. |
FAIR VALUE MEASUREMENTS
The following is a summary of the fair valuations according to the inputs used as of June 30, 2015 in valuing the Fund’s assets and liabilities:
Category and Subcategory | Level 1 | Level 2 | Level 3 | Fair Value at 06/30/2015 | ||||||||||||
Investments in Affiliates, at Value |
| |||||||||||||||
Mutual Funds | ||||||||||||||||
United States | $ | 70,037 | $ | 0 | $ | 0 | $ | 70,037 | ||||||||
Totals | $ | 70,037 | $ | 0 | $ | 0 | $ | 70,037 |
There were no significant transfers between Levels 1, 2, or 3 during the period ended June 30, 2015.
See Accompanying Notes | ANNUAL REPORT | JUNE 30, 2015 | 33 |
Table of Contents
Schedule of Investments PIMCO RAE Fundamental International Fund
SHARES | MARKET VALUE (000S) | |||||||||||
INVESTMENTS IN SECURITIES 99.3% | ||||||||||||
COMMON STOCKS 97.8% | ||||||||||||
AUSTRALIA 8.0% | ||||||||||||
CONSUMER DISCRETIONARY 0.3% | ||||||||||||
Crown Resorts Ltd. | 2,898 | $ | 27 | |||||||||
Echo Entertainment Group Ltd. | 20,813 | 70 | ||||||||||
Fairfax Media Ltd. | 188,211 | 118 | ||||||||||
Myer Holdings Ltd. | 37,690 | 36 | ||||||||||
Tabcorp Holdings Ltd. | 26,554 | 93 | ||||||||||
Tatts Group Ltd. | 41,210 | 118 | ||||||||||
|
| |||||||||||
462 | ||||||||||||
|
| |||||||||||
CONSUMER STAPLES 0.6% | ||||||||||||
Coca-Cola Amatil Ltd. | 17,078 | 120 | ||||||||||
Metcash Ltd. | 115,784 | 99 | ||||||||||
Wesfarmers Ltd. | 12,917 | 388 | ||||||||||
Woolworths Ltd. | 16,655 | 346 | ||||||||||
|
| |||||||||||
953 | ||||||||||||
|
| |||||||||||
ENERGY 0.2% | ||||||||||||
APA Group | 2,237 | 14 | ||||||||||
Santos Ltd. | 17,507 | 106 | ||||||||||
Woodside Petroleum Ltd. | 8,421 | 222 | ||||||||||
|
| |||||||||||
342 | ||||||||||||
|
| |||||||||||
FINANCIALS 4.0% | ||||||||||||
AMP Ltd. | 103,509 | 480 | ||||||||||
Australia & New Zealand Banking Group Ltd. | 38,950 | 967 | ||||||||||
Bank of Queensland Ltd. | 1,904 | 19 | ||||||||||
Bendigo & Adelaide Bank Ltd. | 7,540 | 71 | ||||||||||
BGP NPV | 20,033 | 1 | ||||||||||
Commonwealth Bank of Australia | 15,774 | 1,035 | ||||||||||
Insurance Australia Group Ltd. | 23,317 | 100 | ||||||||||
Macquarie Group Ltd. | 5,975 | 374 | ||||||||||
National Australia Bank Ltd. | 38,944 | 1,000 | ||||||||||
Prime Infrastrusture Group ‘D’ | 2 | 0 | ||||||||||
QBE Insurance Group Ltd. | 26,528 | 279 | ||||||||||
Suncorp Group Ltd. | 54,317 | 562 | ||||||||||
Westpac Banking Corp. | 44,175 | 1,093 | ||||||||||
|
| |||||||||||
5,981 | ||||||||||||
|
| |||||||||||
HEALTH CARE 0.2% | ||||||||||||
CSL Ltd. | 2,898 | 193 | ||||||||||
Primary Health Care Ltd. | 20,007 | 78 | ||||||||||
Ramsay Health Care Ltd. | 398 | 19 | ||||||||||
Sonic Healthcare Ltd. | 2,299 | 38 | ||||||||||
|
| |||||||||||
328 | ||||||||||||
|
| |||||||||||
INDUSTRIALS 0.7% | ||||||||||||
ALS Ltd. | 3,672 | 17 | ||||||||||
Asciano Ltd. | 12,439 | 64 | ||||||||||
Aurizon Holdings Ltd. | 4,416 | 17 | ||||||||||
Brambles Ltd. | 8,198 | 67 | ||||||||||
CIMIC Group Ltd. | 4,627 | 77 |
SHARES | MARKET VALUE (000S) | |||||||||||
Downer EDI Ltd. | 34,409 | $ | 127 | |||||||||
Lend Lease Group | 3,521 | 41 | ||||||||||
Qantas Airways Ltd. (a) | 148,590 | 361 | ||||||||||
Transfield Services Ltd. | 29,452 | 32 | ||||||||||
Transpacific Industries Group Ltd. | 54,999 | 33 | ||||||||||
Transurban Group | 2,488 | 18 | ||||||||||
UGL Ltd. | 15,005 | 24 | ||||||||||
WorleyParsons Ltd. | 16,401 | 132 | ||||||||||
|
| |||||||||||
1,010 | ||||||||||||
|
| |||||||||||
MATERIALS 1.5% | ||||||||||||
Amcor Ltd. | 4,999 | 53 | ||||||||||
BHP Billiton Ltd. | 42,543 | 868 | ||||||||||
BHP Billiton PLC | 28,308 | 557 | ||||||||||
BlueScope Steel Ltd. | 22,538 | 52 | ||||||||||
Boral Ltd. | 19,454 | 88 | ||||||||||
CSR Ltd. | 51,971 | 146 | ||||||||||
Fortescue Metals Group Ltd. | 26,690 | 39 | ||||||||||
Iluka Resources Ltd. | 4,180 | 25 | ||||||||||
Incitec Pivot Ltd. | 38,443 | 114 | ||||||||||
Newcrest Mining Ltd. | 2,333 | 23 | ||||||||||
Orica Ltd. | 10,268 | 168 | ||||||||||
OZ Minerals Ltd. | 34,741 | 106 | ||||||||||
South32 Ltd. (a) | 70,851 | 97 | ||||||||||
|
| |||||||||||
2,336 | ||||||||||||
|
| |||||||||||
TELECOMMUNICATION SERVICES 0.3% | ||||||||||||
Telstra Corp. Ltd. | 95,319 | 451 | ||||||||||
|
| |||||||||||
UTILITIES 0.2% | ||||||||||||
AGL Energy Ltd. | 4,521 | 54 | ||||||||||
DUET Group | 37,705 | 67 | ||||||||||
Origin Energy Ltd. | 13,254 | 123 | ||||||||||
|
| |||||||||||
244 | ||||||||||||
|
| |||||||||||
Total Australia | 12,107 | |||||||||||
|
| |||||||||||
AUSTRIA 0.5% | ||||||||||||
BANKING & FINANCE 0.0% | ||||||||||||
Immoeast Anspr Nachb | 657 | 0 | ||||||||||
|
| |||||||||||
ENERGY 0.2% | ||||||||||||
OMV AG | 8,244 | 227 | ||||||||||
|
| |||||||||||
FINANCIALS 0.2% | ||||||||||||
Erste Group Bank AG | 7,456 | 212 | ||||||||||
Raiffeisen Bank International AG | 6,920 | 101 | ||||||||||
|
| |||||||||||
313 | ||||||||||||
|
| |||||||||||
INDUSTRIALS 0.0% | ||||||||||||
Oesterreichische Post AG | 717 | 33 | ||||||||||
|
| |||||||||||
MATERIALS 0.1% | ||||||||||||
voestalpine AG | 3,428 | 143 | ||||||||||
Wienerberger AG | 1,984 | 31 | ||||||||||
|
| |||||||||||
174 | ||||||||||||
|
| |||||||||||
Total Austria | 747 | |||||||||||
|
|
SHARES | MARKET VALUE (000S) | |||||||||||
BELGIUM 0.9% | ||||||||||||
CONSUMER STAPLES 0.4% | ||||||||||||
Anheuser-Busch InBev NV | 2,047 | $ | 246 | |||||||||
Delhaize Group S.A. | 4,524 | 368 | ||||||||||
|
| |||||||||||
614 | ||||||||||||
|
| |||||||||||
FINANCIALS 0.2% | ||||||||||||
Ageas | 5,525 | 213 | ||||||||||
KBC Groep NV | 1,513 | 102 | ||||||||||
|
| |||||||||||
315 | ||||||||||||
|
| |||||||||||
MATERIALS 0.1% | ||||||||||||
NV Bekaert S.A. | 1,034 | 29 | ||||||||||
Solvay S.A. | 647 | 89 | ||||||||||
Umicore S.A. | 363 | 17 | ||||||||||
|
| |||||||||||
135 | ||||||||||||
|
| |||||||||||
TELECOMMUNICATION SERVICES 0.2% | ||||||||||||
Mobistar S.A. | 2,390 | 45 | ||||||||||
Proximus | 7,190 | 255 | ||||||||||
|
| |||||||||||
300 | ||||||||||||
|
| |||||||||||
Total Belgium | 1,364 | |||||||||||
|
| |||||||||||
CANADA 8.9% | ||||||||||||
CONSUMER DISCRETIONARY 0.3% | ||||||||||||
Aimia, Inc. | 1,626 | 18 | ||||||||||
Canadian Tire Corp. Ltd. | 334 | 36 | ||||||||||
Magna International, Inc. | 4,337 | 243 | ||||||||||
Quebecor, Inc. ‘B’ | 3,766 | 94 | ||||||||||
Shaw Communications, Inc. | 1,378 | 30 | ||||||||||
Superior Plus Corp. | 2,713 | 27 | ||||||||||
|
| |||||||||||
448 | ||||||||||||
|
| |||||||||||
CONSUMER STAPLES 0.2% | ||||||||||||
Empire Co. Ltd. | 385 | 27 | ||||||||||
George Weston Ltd. | 1,669 | 131 | ||||||||||
Loblaw Cos. Ltd. | 1,352 | 69 | ||||||||||
Metro, Inc. | 820 | 22 | ||||||||||
|
| |||||||||||
249 | ||||||||||||
|
| |||||||||||
ENERGY 1.9% | ||||||||||||
Baytex Energy Corp. | 1,163 | 18 | ||||||||||
Bonavista Energy Corp. | 14,064 | 76 | ||||||||||
Canadian Natural Resources Ltd. | 8,087 | 220 | ||||||||||
Canadian Oil Sands Ltd. | 35,327 | 286 | ||||||||||
Cenovus Energy, Inc. | 24,210 | 387 | ||||||||||
Crescent Point Energy Corp. | 681 | 14 | ||||||||||
Enbridge, Inc. | 457 | 21 | ||||||||||
Encana Corp. | 19,454 | 214 | ||||||||||
Enerplus Corp. | 16,384 | 144 | ||||||||||
Husky Energy, Inc. | 8,780 | 168 | ||||||||||
Imperial Oil Ltd. | 1,245 | 48 | ||||||||||
Inter Pipeline Ltd. | 803 | 18 | ||||||||||
Lightstream Resources Ltd. | 31,282 | 26 | ||||||||||
Pengrowth Energy Corp. | 45,692 | 114 |
34 | PIMCO EQUITY SERIES | See Accompanying Notes |
Table of Contents
June 30, 2015
SHARES | MARKET VALUE (000S) | |||||||||||
Penn West Petroleum Ltd. | 89,263 | $ | 154 | |||||||||
Precision Drilling Corp. | 5,306 | 36 | ||||||||||
Suncor Energy, Inc. | 23,829 | 656 | ||||||||||
TransCanada Corp. | 5,378 | 219 | ||||||||||
|
| |||||||||||
2,819 | ||||||||||||
|
| |||||||||||
FINANCIALS 3.5% | ||||||||||||
Bank of Montreal | 9,046 | 536 | ||||||||||
Bank of Nova Scotia | 10,902 | 563 | ||||||||||
Brookfield Asset Management, Inc. ‘A’ | 5,420 | 189 | ||||||||||
Canadian Imperial Bank of Commerce | 6,150 | 453 | ||||||||||
Fairfax Financial Holdings Ltd. | 58 | 29 | ||||||||||
Genworth MI Canada, Inc. | 2,600 | 68 | ||||||||||
Great-West Lifeco, Inc. | 7,511 | 219 | ||||||||||
IGM Financial, Inc. | 1,009 | 32 | ||||||||||
Intact Financial Corp. | 525 | 36 | ||||||||||
Manulife Financial Corp. | 27,537 | 512 | ||||||||||
National Bank of Canada | 3,875 | 146 | ||||||||||
Onex Corp. | 2,721 | 150 | ||||||||||
Power Corp. of Canada | 10,726 | 274 | ||||||||||
Power Financial Corp. | 4,592 | 132 | ||||||||||
Royal Bank of Canada | 13,909 | 851 | ||||||||||
Sun Life Financial, Inc. | 12,569 | 420 | ||||||||||
Toronto-Dominion Bank | 17,850 | 758 | ||||||||||
|
| |||||||||||
5,368 | ||||||||||||
|
| |||||||||||
INDUSTRIALS 0.8% | ||||||||||||
Air Canada (a) | 52,305 | 553 | ||||||||||
Bombardier, Inc. | 49,919 | 90 | ||||||||||
Canadian National Railway Co. | 5,911 | 341 | ||||||||||
Canadian Pacific Railway Ltd. | 528 | 85 | ||||||||||
Finning International, Inc. | 2,981 | 56 | ||||||||||
Transcontinental, Inc. ‘A’ | 4,100 | 50 | ||||||||||
WestJet Airlines Ltd. | 1,900 | 40 | ||||||||||
|
| |||||||||||
1,215 | ||||||||||||
|
| |||||||||||
INFORMATION TECHNOLOGY 0.3% | ||||||||||||
BlackBerry Ltd. (a) | 40,897 | 334 | ||||||||||
Celestica, Inc. (a) | 6,223 | 73 | ||||||||||
|
| |||||||||||
407 | ||||||||||||
|
| |||||||||||
MATERIALS 1.2% | ||||||||||||
Agrium, Inc. | 1,895 | 201 | ||||||||||
Barrick Gold Corp. | 30,327 | 323 | ||||||||||
Centerra Gold, Inc. | 5,059 | 29 | ||||||||||
Domtar Corp. | 4,549 | 188 | ||||||||||
Goldcorp, Inc. | 7,578 | 123 | ||||||||||
HudBay Minerals, Inc. | 5,777 | 48 | ||||||||||
IAMGOLD Corp. (a) | 43,785 | 88 | ||||||||||
Kinross Gold Corp. (a) | 77,366 | 180 | ||||||||||
Lundin Mining Corp. (a) | 6,400 | 26 | ||||||||||
Potash Corp. of Saskatchewan, Inc. | 8,015 | 248 | ||||||||||
Resolute Forest Products, Inc. (a) | 1,975 | 22 | ||||||||||
Sherritt International Corp. | 19,400 | 33 |
SHARES | MARKET VALUE (000S) | |||||||||||
Teck Resources Ltd. | 27,120 | $ | 269 | |||||||||
Yamana Gold, Inc. | 38,140 | 114 | ||||||||||
|
| |||||||||||
1,892 | ||||||||||||
|
| |||||||||||
TELECOMMUNICATION SERVICES 0.5% | ||||||||||||
BCE, Inc. | 4,843 | 206 | ||||||||||
Manitoba Telecom Services, Inc. | 4,184 | 93 | ||||||||||
Rogers Communications, Inc. | 9,777 | 347 | ||||||||||
TELUS Corp. | 4,772 | 164 | ||||||||||
|
| |||||||||||
810 | ||||||||||||
|
| |||||||||||
UTILITIES 0.2% | ||||||||||||
Atco Ltd. | 2,203 | 70 | ||||||||||
Capital Power Corp. | 4,320 | 74 | ||||||||||
Emera, Inc. | 400 | 12 | ||||||||||
Fortis, Inc. | 1,670 | 47 | ||||||||||
Just Energy Group, Inc. | 4,024 | 21 | ||||||||||
TransAlta Corp. | 15,842 | 123 | ||||||||||
|
| |||||||||||
347 | ||||||||||||
|
| |||||||||||
Total Canada | 13,555 | |||||||||||
|
| |||||||||||
COLOMBIA 0.1% | ||||||||||||
ENERGY 0.1% | ||||||||||||
Pacific Rubiales Energy Corp. | 28,376 | 107 | ||||||||||
|
| |||||||||||
Total Colombia | 107 | |||||||||||
|
| |||||||||||
DENMARK 1.2% | ||||||||||||
CONSUMER STAPLES 0.1% | ||||||||||||
Carlsberg A/S ‘B’ | 1,553 | 141 | ||||||||||
|
| |||||||||||
ENERGY 0.1% | ||||||||||||
Vestas Wind Systems A/S | 1,802 | 90 | ||||||||||
|
| |||||||||||
FINANCIALS 0.2% | ||||||||||||
Danske Bank A/S | 9,447 | 278 | ||||||||||
Sydbank A/S | 1,506 | 57 | ||||||||||
|
| |||||||||||
335 | ||||||||||||
|
| |||||||||||
HEALTH CARE 0.4% | ||||||||||||
H Lundbeck A/S | 874 | 17 | ||||||||||
Novo Nordisk A/S | 9,781 | 537 | ||||||||||
|
| |||||||||||
554 | ||||||||||||
|
| |||||||||||
INDUSTRIALS 0.2% | ||||||||||||
AP Moeller - Maersk A/S | 163 | 295 | ||||||||||
FLSmidth & Co. A/S | 554 | 26 | ||||||||||
ISS A/S | 873 | 29 | ||||||||||
|
| |||||||||||
350 | ||||||||||||
|
| |||||||||||
TELECOMMUNICATION SERVICES 0.2% | ||||||||||||
TDC A/S | 39,338 | 288 | ||||||||||
|
| |||||||||||
Total Denmark | 1,758 | |||||||||||
|
| |||||||||||
SHARES | MARKET VALUE (000S) | |||||||||||
FINLAND 0.7% | ||||||||||||
CONSUMER STAPLES 0.0% | ||||||||||||
Kesko OYJ ‘B’ | 1,326 | $ | 46 | |||||||||
|
| |||||||||||
ENERGY 0.1% | ||||||||||||
Neste OYJ | 2,890 | 74 | ||||||||||
|
| |||||||||||
FINANCIALS 0.1% | ||||||||||||
Sampo OYJ ‘A’ | 1,650 | 78 | ||||||||||
|
| |||||||||||
HEALTH CARE 0.0% | ||||||||||||
Orion OYJ | 1,075 | 38 | ||||||||||
|
| |||||||||||
INDUSTRIALS 0.0% | ||||||||||||
Metso OYJ | 955 | 26 | ||||||||||
|
| |||||||||||
INFORMATION TECHNOLOGY 0.2% | ||||||||||||
Nokia OYJ | 36,892 | 251 | ||||||||||
Tieto OYJ | 3,452 | 81 | ||||||||||
|
| |||||||||||
332 | ||||||||||||
|
| |||||||||||
MATERIALS 0.2% | ||||||||||||
Stora Enso OYJ ‘R’ | 13,309 | 137 | ||||||||||
UPM-Kymmene OYJ | 13,398 | 237 | ||||||||||
|
| |||||||||||
374 | ||||||||||||
|
| |||||||||||
TELECOMMUNICATION SERVICES 0.0% | ||||||||||||
Elisa OYJ | 1,148 | 36 | ||||||||||
|
| |||||||||||
UTILITIES 0.1% | ||||||||||||
Fortum OYJ | 4,784 | 85 | ||||||||||
|
| |||||||||||
Total Finland | 1,089 | |||||||||||
|
| |||||||||||
FRANCE 10.0% | ||||||||||||
CONSUMER DISCRETIONARY 1.6% | ||||||||||||
Accor S.A. | 1,774 | 90 | ||||||||||
Christian Dior SE | 659 | 129 | ||||||||||
Cie Generale des Etablissements Michelin | 1,969 | 207 | ||||||||||
Kering | 635 | 114 | ||||||||||
Lagardere S.C.A. | 3,150 | 92 | ||||||||||
LVMH Moet Hennessy Louis Vuitton SE | 995 | 175 | ||||||||||
Peugeot S.A. (a) | 12,208 | 252 | ||||||||||
Publicis Groupe S.A. | 1,248 | 92 | ||||||||||
Renault S.A. | 1,855 | 194 | ||||||||||
Sodexo S.A. | 261 | 25 | ||||||||||
Technicolor S.A. | 10,378 | 68 | ||||||||||
Teleperformance S.A. | 998 | 71 | ||||||||||
Valeo S.A. | 855 | 135 | ||||||||||
Vivendi S.A. | 31,471 | 798 | ||||||||||
|
| |||||||||||
2,442 | ||||||||||||
|
| |||||||||||
CONSUMER STAPLES 0.4% | ||||||||||||
Carrefour S.A. | 9,734 | 313 | ||||||||||
Casino Guichard Perrachon S.A. | 970 | 74 |
See Accompanying Notes | ANNUAL REPORT | JUNE 30, 2015 | 35 |
Table of Contents
Schedule of Investments PIMCO RAE Fundamental International Fund (Cont.)
SHARES | MARKET VALUE (000S) | |||||||||||
Danone S.A. | 1,903 | $ | 123 | |||||||||
L’Oreal S.A. | 158 | 28 | ||||||||||
Pernod-Ricard S.A. | 250 | 29 | ||||||||||
Rallye S.A. | 873 | 26 | ||||||||||
|
| |||||||||||
593 | ||||||||||||
|
| |||||||||||
ENERGY 1.6% | ||||||||||||
CGG S.A. (a) | 25,737 | 145 | ||||||||||
Technip S.A. | 260 | 16 | ||||||||||
Total S.A. | 45,462 | 2,230 | ||||||||||
|
| |||||||||||
2,391 | ||||||||||||
|
| |||||||||||
FINANCIALS 1.4% | ||||||||||||
AXA S.A. | 23,485 | 595 | ||||||||||
BNP Paribas S.A. | 13,424 | 814 | ||||||||||
CNP Assurances | 2,500 | 42 | ||||||||||
Credit Agricole S.A. | 20,872 | 312 | ||||||||||
SCOR SE | 2,086 | 74 | ||||||||||
Societe Generale S.A. | 6,878 | 323 | ||||||||||
|
| |||||||||||
2,160 | ||||||||||||
|
| |||||||||||
HEALTH CARE 0.6% | ||||||||||||
Sanofi | 8,798 | 870 | ||||||||||
|
| |||||||||||
INDUSTRIALS 1.2% | ||||||||||||
Air France-KLM (a) | 34,878 | 246 | ||||||||||
Airbus Group SE | 2,099 | 137 | ||||||||||
Alstom S.A. | 4,315 | 123 | ||||||||||
Bouygues S.A. | 9,647 | 361 | ||||||||||
Eiffage S.A. | 3,103 | 173 | ||||||||||
Rexel S.A. | 2,241 | 36 | ||||||||||
Safran S.A. | 1,330 | 90 | ||||||||||
Schneider Electric SE | 1,896 | 131 | ||||||||||
Thales S.A. | 840 | 51 | ||||||||||
Vallourec S.A. | 1,287 | 26 | ||||||||||
Vinci S.A. | 6,375 | 370 | ||||||||||
Wendel S.A. | 537 | 66 | ||||||||||
|
| |||||||||||
1,810 | ||||||||||||
|
| |||||||||||
INFORMATION TECHNOLOGY 0.2% | ||||||||||||
Alcatel-Lucent (a) | 33,290 | 121 | ||||||||||
Altran Technologies S.A. | 1,603 | 17 | ||||||||||
Atos SE | 716 | 54 | ||||||||||
Cap Gemini S.A. | 1,408 | 125 | ||||||||||
UBISOFT Entertainment (a) | 2,249 | 40 | ||||||||||
|
| |||||||||||
�� | 357 | |||||||||||
|
| |||||||||||
MATERIALS 0.4% | ||||||||||||
Air Liquide S.A. | 1,506 | 191 | ||||||||||
Arkema S.A. | 263 | 19 | ||||||||||
Cie de Saint-Gobain | 6,086 | 275 | ||||||||||
Lafarge S.A. | 2,343 | 155 | ||||||||||
|
| |||||||||||
640 | ||||||||||||
|
| |||||||||||
SHARES | MARKET VALUE (000S) | |||||||||||
TELECOMMUNICATION SERVICES 1.3% | ||||||||||||
Orange S.A. | 129,931 | $ | 2,008 | |||||||||
|
| |||||||||||
UTILITIES 1.3% | ||||||||||||
Electricite de France S.A. | 8,580 | 192 | ||||||||||
GDF Suez | 61,313 | 1,142 | ||||||||||
Suez Environnement Co. | 12,846 | 240 | ||||||||||
Veolia Environnement S.A. | 18,475 | 378 | ||||||||||
|
| |||||||||||
1,952 | ||||||||||||
|
| |||||||||||
Total France | 15,223 | |||||||||||
|
| |||||||||||
GERMANY 8.3% | ||||||||||||
CONSUMER DISCRETIONARY 1.0% | ||||||||||||
adidas AG | 1,228 | 94 | ||||||||||
Bayerische Motoren Werke AG | 3,892 | 426 | ||||||||||
Continental AG | 309 | 73 | ||||||||||
Daimler AG | 6,446 | 587 | ||||||||||
ProSiebenSat.1 Media AG | 1,574 | 78 | ||||||||||
Rheinmetall AG | 2,735 | 139 | ||||||||||
TUI AG | 5,709 | 92 | ||||||||||
|
| |||||||||||
1,489 | ||||||||||||
|
| |||||||||||
CONSUMER STAPLES 0.3% | ||||||||||||
METRO AG | 11,502 | 363 | ||||||||||
Suedzucker AG | 7,886 | 132 | ||||||||||
|
| |||||||||||
495 | ||||||||||||
|
| |||||||||||
FINANCIALS 1.2% | ||||||||||||
Commerzbank AG (a) | 25,264 | 323 | ||||||||||
Deutsche Bank AG | 20,165 | 606 | ||||||||||
Deutsche Boerse AG | 832 | 69 | ||||||||||
Hannover Rueck SE | 1,337 | 129 | ||||||||||
Muenchener Rueckversicherungs-Gesellschaft AG in Muenchen | 3,441 | 610 | ||||||||||
Talanx AG (a) | 2,166 | 67 | ||||||||||
|
| |||||||||||
1,804 | ||||||||||||
|
| |||||||||||
HEALTH CARE 0.9% | ||||||||||||
Bayer AG | 5,078 | 711 | ||||||||||
Celesio AG | 2,230 | 65 | ||||||||||
Fresenius Medical Care AG & Co. KGaA | 1,539 | 127 | ||||||||||
Fresenius SE & Co. KGaA | 2,738 | 176 | ||||||||||
Merck KGaA | 906 | 90 | ||||||||||
Rhoen Klinikum AG | 4,505 | 121 | ||||||||||
STADA Arzneimittel AG | 1,316 | 44 | ||||||||||
|
| |||||||||||
1,334 | ||||||||||||
|
| |||||||||||
INDUSTRIALS 1.2% | ||||||||||||
Bilfinger SE | 1,880 | 71 | ||||||||||
Deutsche Lufthansa AG | 27,888 | 360 | ||||||||||
Deutsche Post AG | 14,450 | 422 | ||||||||||
Fraport AG Frankfurt Airport Services Worldwide | 483 | 30 | ||||||||||
Heidelberger Druckmaschinen AG (a) | 24,625 | 55 |
SHARES | MARKET VALUE (000S) | |||||||||||
HOCHTIEF AG | 1,679 | $ | 130 | |||||||||
Kloeckner & Co. SE | 4,151 | 38 | ||||||||||
Siemens AG | 6,069 | 614 | ||||||||||
Sixt SE | 620 | 27 | ||||||||||
|
| |||||||||||
1,747 | ||||||||||||
|
| |||||||||||
INFORMATION TECHNOLOGY 0.2% | ||||||||||||
SAP SE | 3,324 | 233 | ||||||||||
Wincor Nixdorf AG | 890 | 35 | ||||||||||
|
| |||||||||||
268 | ||||||||||||
|
| |||||||||||
MATERIALS 1.4% | ||||||||||||
Aurubis AG | 1,743 | 102 | ||||||||||
BASF SE | 8,836 | 778 | ||||||||||
Evonik Industries AG | 1,792 | 69 | ||||||||||
HeidelbergCement AG | 2,744 | 218 | ||||||||||
K+S AG | 6,672 | 281 | ||||||||||
LANXESS AG | 2,292 | 135 | ||||||||||
Linde AG | 1,110 | 210 | ||||||||||
Salzgitter AG | 4,033 | 144 | ||||||||||
Symrise AG | 848 | 53 | ||||||||||
ThyssenKrupp AG | 7,385 | 192 | ||||||||||
|
| |||||||||||
2,182 | ||||||||||||
|
| |||||||||||
TELECOMMUNICATION SERVICES 0.9% | ||||||||||||
Deutsche Telekom AG | 82,795 | 1,427 | ||||||||||
|
| |||||||||||
UTILITIES 1.2% | ||||||||||||
E.ON SE | 65,299 | 871 | ||||||||||
RWE AG | 42,857 | 922 | ||||||||||
|
| |||||||||||
1,793 | ||||||||||||
|
| |||||||||||
Total Germany | 12,539 | |||||||||||
|
| |||||||||||
HONG KONG 2.2% | ||||||||||||
CONSUMER DISCRETIONARY 0.1% | ||||||||||||
Belle International Holdings Ltd. | 23,000 | 26 | ||||||||||
Esprit Holdings Ltd. | 56,014 | 53 | ||||||||||
Li & Fung Ltd. | 46,000 | 37 | ||||||||||
SJM Holdings Ltd. | 62,000 | 67 | ||||||||||
Yue Yuen Industrial Holdings Ltd. | 11,500 | 38 | ||||||||||
|
| |||||||||||
221 | ||||||||||||
|
| |||||||||||
FINANCIALS 1.6% | ||||||||||||
AIA Group Ltd. | 68,000 | 443 | ||||||||||
Bank of East Asia Ltd. | 11,800 | 52 | ||||||||||
Cheung Kong Property Holdings Ltd. (a) | 28,489 | 236 | ||||||||||
CK Hutchison Holdings Ltd. | 28,043 | 414 | ||||||||||
Dah Sing Financial Holdings Ltd. | 6,800 | 44 | ||||||||||
First Pacific Co. Ltd. | 36,000 | 30 | ||||||||||
Hang Lung Properties Ltd. | 18,000 | 54 | ||||||||||
Hang Seng Bank Ltd. | 10,500 | 205 | ||||||||||
Henderson Land Development Co. Ltd. | 4,400 | 30 | ||||||||||
Hong Kong Exchanges and Clearing Ltd. | 4,300 | 152 |
36 | PIMCO EQUITY SERIES | See Accompanying Notes |
Table of Contents
June 30, 2015
SHARES | MARKET VALUE (000S) | |||||||||||
Hongkong Land Holdings Ltd. | 14,300 | $ | 117 | |||||||||
Hysan Development Co. Ltd. | 3,000 | 13 | ||||||||||
Kerry Properties Ltd. | 14,000 | 55 | ||||||||||
New World Development Co. Ltd. | 110,000 | 144 | ||||||||||
Shimao Property Holdings Ltd. | 30,000 | 59 | ||||||||||
Sino Land Co. Ltd. | 18,000 | 30 | ||||||||||
Sun Hung Kai Properties Ltd. | 14,000 | 227 | ||||||||||
Swire Properties Ltd. | 12,800 | 41 | ||||||||||
Wheelock & Co. Ltd. | 8,000 | 41 | ||||||||||
|
| |||||||||||
2,387 | ||||||||||||
|
| |||||||||||
INDUSTRIALS 0.3% | ||||||||||||
Cathay Pacific Airways Ltd. | 44,000 | 108 | ||||||||||
Jardine Matheson Holdings Ltd. | 700 | 40 | ||||||||||
Orient Overseas International Ltd. | 6,500 | 33 | ||||||||||
Swire Pacific Ltd. | 13,000 | 163 | ||||||||||
Wharf Holdings Ltd. | 6,000 | 40 | ||||||||||
|
| |||||||||||
384 | ||||||||||||
|
| |||||||||||
MATERIALS 0.0% | ||||||||||||
Kingboard Chemical Holdings Ltd. | 21,700 | 38 | ||||||||||
|
| |||||||||||
TELECOMMUNICATION SERVICES 0.1% | ||||||||||||
PCCW Ltd. | 229,000 | 136 | ||||||||||
|
| |||||||||||
UTILITIES 0.1% | ||||||||||||
CLP Holdings Ltd. | 15,000 | 127 | ||||||||||
|
| |||||||||||
Total Hong Kong | 3,293 | |||||||||||
|
| |||||||||||
IRELAND 0.6% | ||||||||||||
ENERGY 0.0% | ||||||||||||
DCC PLC | 938 | 74 | ||||||||||
|
| |||||||||||
HEALTH CARE 0.4% | ||||||||||||
Endo International PLC (a) | 340 | 27 | ||||||||||
Medtronic PLC | 3,523 | 261 | ||||||||||
Perrigo Co. PLC | 202 | 37 | ||||||||||
Shire PLC | 2,676 | 215 | ||||||||||
|
| |||||||||||
540 | ||||||||||||
|
| |||||||||||
INDUSTRIALS 0.0% | ||||||||||||
Experian PLC | 1,457 | 26 | ||||||||||
Ryanair Holdings PLC | 1,573 | 21 | ||||||||||
|
| |||||||||||
47 | ||||||||||||
|
| |||||||||||
MATERIALS 0.2% | ||||||||||||
CRH PLC | 5,194 | 147 | ||||||||||
Smurfit Kappa Group PLC | 6,032 | 166 | ||||||||||
|
| |||||||||||
313 | ||||||||||||
|
| |||||||||||
Total Ireland | 974 | |||||||||||
|
| |||||||||||
ISRAEL 1.0% | ||||||||||||
FINANCIALS 0.3% | ||||||||||||
Bank Hapoalim BM | 26,346 | 142 | ||||||||||
Bank Leumi Le-Israel BM (a) | 52,165 | 220 |
SHARES | MARKET VALUE (000S) | |||||||||||
Israel Discount Bank Ltd. (a) | 54,907 | $ | 105 | |||||||||
Mizrahi Tefahot Bank Ltd. | 1,595 | 20 | ||||||||||
|
| |||||||||||
487 | ||||||||||||
|
| |||||||||||
HEALTH CARE 0.5% | ||||||||||||
Teva Pharmaceutical Industries Ltd. SP - ADR | 11,262 | 666 | ||||||||||
|
| |||||||||||
MATERIALS 0.1% | ||||||||||||
Israel Chemicals Ltd. | 24,469 | 171 | ||||||||||
|
| |||||||||||
TELECOMMUNICATION SERVICES 0.1% | ||||||||||||
Bezeq The Israeli Telecommunication Corp. Ltd. | 115,245 | 196 | ||||||||||
|
| |||||||||||
Total Israel | 1,520 | |||||||||||
|
| |||||||||||
ITALY 3.7% | ||||||||||||
CONSUMER DISCRETIONARY 0.1% | ||||||||||||
Mediaset SpA | 14,241 | 69 | ||||||||||
|
| |||||||||||
ENERGY 0.9% | ||||||||||||
Eni SpA | 71,572 | 1,272 | ||||||||||
Saipem SpA | 10,426 | 110 | ||||||||||
|
| |||||||||||
1,382 | ||||||||||||
|
| |||||||||||
FINANCIALS 1.2% | ||||||||||||
Assicurazioni Generali SpA | 6,917 | 125 | ||||||||||
Banca Popolare dell’Emilia Romagna SC | 8,227 | 73 | ||||||||||
Banca Popolare di Milano Scarl | 13,851 | 15 | ||||||||||
Banca Popolare di Sondrio SCARL | 4,790 | 23 | ||||||||||
Banco Popolare SC | 2,847 | 47 | ||||||||||
Credito Valtellinese | 22,289 | 29 | ||||||||||
Intesa Sanpaolo SpA | 204,867 | 744 | ||||||||||
UniCredit SpA | 86,928 | 584 | ||||||||||
Unione di Banche Italiane SCpA | 25,266 | 203 | ||||||||||
Unipol Gruppo Finanziario SpA | 8,246 | 42 | ||||||||||
|
| |||||||||||
1,885 | ||||||||||||
|
| |||||||||||
INDUSTRIALS 0.2% | ||||||||||||
Atlantia SpA | 3,269 | 81 | ||||||||||
Finmeccanica SpA (a) | 19,150 | 241 | ||||||||||
Prysmian SpA | 1,639 | 35 | ||||||||||
|
| |||||||||||
357 | ||||||||||||
|
| |||||||||||
MATERIALS 0.0% | ||||||||||||
Italcementi SpA | 9,387 | 62 | ||||||||||
|
| |||||||||||
TELECOMMUNICATION SERVICES 0.5% | ||||||||||||
Telecom Italia SpA | 606,904 | 771 | ||||||||||
|
| |||||||||||
UTILITIES 0.8% | ||||||||||||
A2A SpA | 100,720 | 120 | ||||||||||
Enel SpA | 222,798 | 1,010 | ||||||||||
|
| |||||||||||
1,130 | ||||||||||||
|
| |||||||||||
Total Italy | 5,656 | |||||||||||
|
| |||||||||||
SHARES | MARKET VALUE (000S) | |||||||||||
JAPAN 15.4% | ||||||||||||
CONSUMER DISCRETIONARY 2.0% | ||||||||||||
Aisin Seiki Co. Ltd. | 1,100 | $ | 47 | |||||||||
Bandai Namco Holdings, Inc. | 1,600 | 31 | ||||||||||
Bridgestone Corp. | 2,900 | 107 | ||||||||||
Daihatsu Motor Co. Ltd. | 1,700 | 24 | ||||||||||
Daiwa House Industry Co. Ltd. | 3,800 | 89 | ||||||||||
Fuji Heavy Industries Ltd. | 500 | 18 | ||||||||||
Hakuhodo DY Holdings, Inc. | 5,000 | 53 | ||||||||||
Honda Motor Co. Ltd. | 11,000 | 356 | ||||||||||
Isetan Mitsukoshi Holdings Ltd. | 3,600 | 64 | ||||||||||
Nikon Corp. | 1,200 | 14 | ||||||||||
Nissan Motor Co. Ltd. | 26,800 | 280 | ||||||||||
Panasonic Corp. | 27,200 | 373 | ||||||||||
Sekisui Chemical Co. Ltd. | 6,000 | 74 | ||||||||||
Sekisui House Ltd. | 2,600 | 41 | ||||||||||
Sony Corp. (a) | 27,500 | 781 | ||||||||||
Sumitomo Electric Industries Ltd. | 6,100 | 94 | ||||||||||
Suzuki Motor Corp. | 2,900 | 98 | ||||||||||
Takashimaya Co. Ltd. | 4,000 | 36 | ||||||||||
Toyota Motor Corp. | 4,935 | 330 | ||||||||||
Yamada Denki Co. Ltd. | 10,500 | 42 | ||||||||||
Yamaha Corp. | 1,700 | 34 | ||||||||||
Yamaha Motor Co. Ltd. | 1,600 | 35 | ||||||||||
|
| |||||||||||
3,021 | ||||||||||||
|
| |||||||||||
CONSUMER STAPLES 1.1% | ||||||||||||
Aeon Co. Ltd. | 17,147 | 243 | ||||||||||
Ajinomoto Co., Inc. | 5,000 | 108 | ||||||||||
Asahi Group Holdings Ltd. | 1,700 | 54 | ||||||||||
Coca-Cola West Co. Ltd. | 1,100 | 20 | ||||||||||
Japan Tobacco, Inc. | 3,656 | 130 | ||||||||||
Kao Corp. | 2,400 | 112 | ||||||||||
Kirin Holdings Co. Ltd. | 15,500 | 214 | ||||||||||
Lion Corp. | 4,000 | 32 | ||||||||||
MEIJI Holdings Co. Ltd. | 1,700 | 219 | ||||||||||
Morinaga Milk Industry Co. Ltd. | 13,000 | 48 | ||||||||||
NH Foods Ltd. | 3,000 | 68 | ||||||||||
Nisshin Seifun Group, Inc. | 2,300 | 31 | ||||||||||
Seven & Holdings Co. Ltd. | 3,500 | 150 | ||||||||||
Shiseido Co. Ltd. | 5,200 | 118 | ||||||||||
UNY Group Holdings Co. Ltd. | 10,600 | 68 | ||||||||||
Yamazaki Baking Co. Ltd. | 5,000 | 83 | ||||||||||
|
| |||||||||||
1,698 | ||||||||||||
|
| |||||||||||
ENERGY 0.6% | ||||||||||||
Cosmo Oil Co. Ltd. (a) | 35,000 | 57 | ||||||||||
Idemitsu Kosan Co. Ltd. | 6,700 | 131 | ||||||||||
Inpex Corp. | 29,400 | 334 | ||||||||||
JX Holdings, Inc. | 64,100 | 276 | ||||||||||
Showa Shell Sekiyu KK | 4,200 | 37 | ||||||||||
TonenGeneral Sekiyu KK | 1,000 | 9 | ||||||||||
|
| |||||||||||
844 | ||||||||||||
|
| |||||||||||
FINANCIALS 2.8% | ||||||||||||
77 Bank Ltd. | 10,000 | 61 |
See Accompanying Notes | ANNUAL REPORT | JUNE 30, 2015 | 37 |
Table of Contents
Schedule of Investments PIMCO RAE Fundamental International Fund (Cont.)
SHARES | MARKET VALUE (000S) | |||||||||||
Bank of Kyoto Ltd. | 1,000 | $ | 11 | |||||||||
Bank of Yokohama Ltd. | 15,000 | 92 | ||||||||||
Chiba Bank Ltd. | 6,000 | 46 | ||||||||||
Chugoku Bank Ltd. | 1,600 | 25 | ||||||||||
Dai-ichi Life Insurance Co. Ltd. | 23,000 | 452 | ||||||||||
Daito Trust Construction Co. Ltd. | 200 | 21 | ||||||||||
Fukuoka Financial Group, Inc. | 26,000 | 135 | ||||||||||
Gunma Bank Ltd. | 7,000 | 52 | ||||||||||
Hachijuni Bank Ltd. | 6,000 | 45 | ||||||||||
Hiroshima Bank Ltd. | 5,000 | 30 | ||||||||||
Hokuhoku Financial Group, Inc. | 42,000 | 99 | ||||||||||
Iyo Bank Ltd. | 3,300 | 41 | ||||||||||
Joyo Bank Ltd. | 2,000 | 11 | ||||||||||
Mitsubishi UFJ Financial Group, Inc. | 164,000 | 1,180 | ||||||||||
Mizuho Financial Group, Inc. | 258,200 | 559 | ||||||||||
MS&AD Insurance Group Holdings, Inc. | 1,900 | 59 | ||||||||||
Nishi-Nippon City Bank Ltd. | 14,000 | 40 | ||||||||||
Resona Holdings, Inc. | 48,700 | 266 | ||||||||||
Shinsei Bank Ltd. | 11,000 | 22 | ||||||||||
Shizuoka Bank Ltd. | 1,000 | 10 | ||||||||||
Sompo Japan Nipponkoa Holdings, Inc. | 2,200 | 81 | ||||||||||
Sony Financial Holdings, Inc. | 1,000 | 17 | ||||||||||
Sumitomo Mitsui Financial Group, Inc. | 13,800 | 614 | ||||||||||
Sumitomo Mitsui Trust Holdings, Inc. | 17,000 | 78 | ||||||||||
T&D Holdings, Inc. | 5,100 | 76 | ||||||||||
Tokio Marine Holdings, Inc. | 1,400 | 58 | ||||||||||
Yamaguchi Financial Group, Inc. | 5,000 | 62 | ||||||||||
|
| |||||||||||
4,243 | ||||||||||||
|
| |||||||||||
HEALTH CARE 0.6% | ||||||||||||
Alfresa Holdings Corp. | 4,000 | 62 | ||||||||||
Astellas Pharma, Inc. | 8,000 | 114 | ||||||||||
Daiichi Sankyo Co. Ltd. | 8,816 | 163 | ||||||||||
Eisai Co. Ltd. | 3,200 | 215 | ||||||||||
Medipal Holdings Corp. | 2,600 | 42 | ||||||||||
Otsuka Holdings Co. Ltd. | 2,628 | 84 | ||||||||||
Suzuken Co. Ltd/Aichi Japan | 1,450 | 46 | ||||||||||
Takeda Pharmaceutical Co. Ltd. | 4,100 | 198 | ||||||||||
|
| |||||||||||
924 | ||||||||||||
|
| |||||||||||
INDUSTRIALS 2.7% | ||||||||||||
Central Japan Railway Co. | 700 | 126 | ||||||||||
Dai Nippon Printing Co. Ltd. | 14,000 | 145 | ||||||||||
East Japan Railway Co. | 1,700 | 153 | ||||||||||
FANUC Corp. | 700 | 143 | ||||||||||
Furukawa Electric Co. Ltd. | 15,000 | 27 | ||||||||||
Hitachi Ltd. | 70,000 | 461 | ||||||||||
Hoya Corp. | 3,200 | 128 | ||||||||||
ITOCHU Corp. | 19,100 | 252 | ||||||||||
Japan Airlines Co. Ltd. | 8,500 | 296 | ||||||||||
Komatsu Ltd. | 4,900 | 98 | ||||||||||
Marubeni Corp. | 9,200 | 53 | ||||||||||
Mitsubishi Corp. | 13,200 | 290 | ||||||||||
Mitsubishi Electric Corp. | 11,000 | 142 |
SHARES | MARKET VALUE (000S) | |||||||||||
Mitsubishi Heavy Industries Ltd. | 4,000 | $ | 24 | |||||||||
Mitsui & Co. Ltd. | 29,100 | 395 | ||||||||||
Mitsui Engineering & Shipbuilding Co. Ltd. | 32,000 | 55 | ||||||||||
Mitsui OSK Lines Ltd. | 15,000 | 48 | ||||||||||
Nippon Express Co. Ltd. | 6,000 | 30 | ||||||||||
Nippon Yusen KK | 17,000 | 47 | ||||||||||
NTN Corp. | 3,000 | 19 | ||||||||||
Secom Co. Ltd. | 1,100 | 72 | ||||||||||
Seino Holdings Co. Ltd. | 3,700 | 42 | ||||||||||
Shimizu Corp. | 9,000 | 76 | ||||||||||
Sojitz Corp. | 33,100 | 80 | ||||||||||
Sumitomo Corp. | 19,200 | 224 | ||||||||||
Sumitomo Heavy Industries Ltd. | 11,000 | 64 | ||||||||||
Taisei Corp. | 12,000 | 69 | ||||||||||
Toppan Printing Co. Ltd. | 9,000 | 75 | ||||||||||
Toshiba Corp. | 51,000 | 175 | ||||||||||
West Japan Railway Co. | 3,300 | 211 | ||||||||||
|
| |||||||||||
4,020 | ||||||||||||
|
| |||||||||||
INFORMATION TECHNOLOGY 1.9% | ||||||||||||
Brother Industries Ltd. | 5,800 | 82 | ||||||||||
Canon, Inc. | 17,250 | 560 | ||||||||||
DeNA Co. Ltd. | 3,400 | 67 | ||||||||||
FUJIFILM Holdings Corp. | 12,100 | 432 | ||||||||||
Fujitsu Ltd. | 70,000 | 391 | ||||||||||
Ibiden Co. Ltd. | 1,600 | 27 | ||||||||||
Konica Minolta, Inc. | 16,500 | 192 | ||||||||||
Kyocera Corp. | 700 | 36 | ||||||||||
Murata Manufacturing Co. Ltd. | 200 | 35 | ||||||||||
NEC Corp. | 94,000 | 285 | ||||||||||
Nintendo Co. Ltd. | 300 | 50 | ||||||||||
Nippon Electric Glass Co. Ltd. | 11,500 | 58 | ||||||||||
NTT Data Corp. | 1,100 | 48 | ||||||||||
Ricoh Co. Ltd. | 19,900 | 206 | ||||||||||
Rohm Co. Ltd. | 1,300 | 87 | ||||||||||
Seiko Epson Corp. | 6,400 | 113 | ||||||||||
TDK Corp. | 2,200 | 169 | ||||||||||
|
| |||||||||||
2,838 | ||||||||||||
|
| |||||||||||
MATERIALS 1.5% | ||||||||||||
Asahi Glass Co. Ltd. | 47,000 | 282 | ||||||||||
Asahi Kasei Corp. | 16,000 | 131 | ||||||||||
Daicel Corp. | 4,500 | 58 | ||||||||||
Denki Kagaku Kogyo KK | 8,000 | 36 | ||||||||||
DIC Corp. | 23,000 | 57 | ||||||||||
JFE Holdings, Inc. | 4,500 | 100 | ||||||||||
Kaneka Corp. | 6,000 | 44 | ||||||||||
Kobe Steel Ltd. | 64,000 | 108 | ||||||||||
Mitsubishi Chemical Holdings Corp. | 47,000 | 295 | ||||||||||
Mitsubishi Materials Corp. | 16,000 | 61 | ||||||||||
Mitsui Chemicals, Inc. | 32,000 | 119 | ||||||||||
Nippon Paper Industries Co. Ltd. | 1,518 | 27 | ||||||||||
Nitto Denko Corp. | 800 | 66 | ||||||||||
Oji Holdings Corp. | 28,000 | 122 | ||||||||||
Rengo Co. Ltd. | 3,000 | 12 |
SHARES | MARKET VALUE (000S) | |||||||||||
Shin-Etsu Chemical Co. Ltd. | 600 | $ | 37 | |||||||||
Sumitomo Chemical Co. Ltd. | 47,000 | 282 | ||||||||||
Sumitomo Forestry Co. Ltd. | 5,300 | 65 | ||||||||||
Sumitomo Metal Mining Co. Ltd. | 4,000 | 61 | ||||||||||
Teijin Ltd. | 35,000 | 136 | ||||||||||
Tosoh Corp. | 15,000 | 93 | ||||||||||
Toyo Seikan Group Holdings Ltd. | 1,600 | 26 | ||||||||||
Ube Industries Ltd. | 28,000 | 53 | ||||||||||
|
| |||||||||||
2,271 | ||||||||||||
|
| |||||||||||
TELECOMMUNICATION SERVICES 1.4% | ||||||||||||
KDDI Corp. | 12,700 | 306 | ||||||||||
Nippon Telegraph & Telephone Corp. | 35,600 | 1,289 | ||||||||||
NTT DOCOMO, Inc. | 21,600 | 415 | ||||||||||
SoftBank Corp. | 1,200 | 71 | ||||||||||
|
| |||||||||||
2,081 | ||||||||||||
|
| |||||||||||
UTILITIES 0.8% | ||||||||||||
Chubu Electric Power Co., Inc. | 20,600 | 307 | ||||||||||
Chugoku Electric Power Co., Inc. | 5,300 | 77 | ||||||||||
Electric Power Development Co. Ltd. | 3,000 | 106 | ||||||||||
Hokkaido Electric Power Co., Inc. (a) | 2,700 | 31 | ||||||||||
Hokuriku Electric Power Co. | 7,488 | 111 | ||||||||||
Kansai Electric Power Co., Inc. | 13,100 | 145 | ||||||||||
Kyushu Electric Power Co., Inc. | 5,800 | 67 | ||||||||||
Osaka Gas Co. Ltd. | 5,000 | 20 | ||||||||||
Tohoku Electric Power Co., Inc. | 16,600 | 225 | ||||||||||
Tokyo Electric Power Co., Inc. (a) | 19,400 | 106 | ||||||||||
Tokyo Gas Co. Ltd. | 6,000 | 32 | ||||||||||
|
| |||||||||||
1,227 | ||||||||||||
|
| |||||||||||
Total Japan | 23,167 | |||||||||||
|
| |||||||||||
LUXEMBOURG 0.5% | ||||||||||||
CONSUMER DISCRETIONARY 0.1% | ||||||||||||
RTL Group S.A. | 703 | 63 | ||||||||||
SES S.A. | 2,974 | 101 | ||||||||||
|
| |||||||||||
164 | ||||||||||||
|
| |||||||||||
MATERIALS 0.4% | ||||||||||||
APERAM S.A. (a) | 3,219 | 130 | ||||||||||
ArcelorMittal | 40,947 | 397 | ||||||||||
|
| |||||||||||
527 | ||||||||||||
|
| |||||||||||
TELECOMMUNICATION SERVICES 0.0% | ||||||||||||
Millicom International Cellular S.A. | 515 | 38 | ||||||||||
|
| |||||||||||
Total Luxembourg | 729 | |||||||||||
|
| |||||||||||
NETHERLANDS 4.5% | ||||||||||||
CONSUMER DISCRETIONARY 0.0% | ||||||||||||
Wolters Kluwer NV | 2,511 | 75 | ||||||||||
|
| |||||||||||
CONSUMER STAPLES 0.3% | ||||||||||||
Heineken Holding NV | 1,581 | 111 |
38 | PIMCO EQUITY SERIES | See Accompanying Notes |
Table of Contents
June 30, 2015
SHARES | MARKET VALUE (000S) | |||||||||||
Heineken NV | 219 | $ | 17 | |||||||||
Koninklijke Ahold NV | 19,575 | 367 | ||||||||||
|
| |||||||||||
495 | ||||||||||||
|
| |||||||||||
ENERGY 2.5% | ||||||||||||
Fugro NV | 5,280 | 116 | ||||||||||
Royal Dutch Shell PLC ‘A’ | 128,603 | 3,658 | ||||||||||
|
| |||||||||||
3,774 | ||||||||||||
|
| |||||||||||
FINANCIALS 0.7% | ||||||||||||
Aegon NV | 27,333 | 201 | ||||||||||
Delta Lloyd NV | 1,579 | 26 | ||||||||||
ING Groep NV - Dutch Certificate | 48,424 | 804 | ||||||||||
SNS REAAL COMMON STOCK EUR1.63 | 100,388 | 0 | ||||||||||
|
| |||||||||||
1,031 | ||||||||||||
|
| |||||||||||
INDUSTRIALS 0.3% | ||||||||||||
Koninklijke BAM Groep NV | 8,076 | 34 | ||||||||||
Koninklijke Philips Electronics NV | 5,547 | 141 | ||||||||||
PostNL NV (a) | 34,980 | 156 | ||||||||||
Randstad Holding NV | 547 | 36 | ||||||||||
TNT Express NV | 2,541 | 22 | ||||||||||
|
| |||||||||||
389 | ||||||||||||
|
| |||||||||||
MATERIALS 0.3% | ||||||||||||
Akzo Nobel NV | 5,337 | 390 | ||||||||||
Koninklijke DSM NV | 1,266 | 73 | ||||||||||
|
| |||||||||||
463 | ||||||||||||
|
| |||||||||||
TELECOMMUNICATION SERVICES 0.4% | ||||||||||||
Koninklijke KPN NV | 113,450 | 435 | ||||||||||
VimpelCom Ltd. - ADR | 26,752 | 133 | ||||||||||
|
| |||||||||||
568 | ||||||||||||
|
| |||||||||||
Total Netherlands | 6,795 | |||||||||||
|
| |||||||||||
NEW ZEALAND 0.2% | ||||||||||||
MATERIALS 0.0% | ||||||||||||
Fletcher Building Ltd. | 3,777 | 21 | ||||||||||
|
| |||||||||||
TELECOMMUNICATION SERVICES 0.2% | ||||||||||||
Spark New Zealand Ltd. | 108,603 | 206 | ||||||||||
|
| |||||||||||
UTILITIES 0.0% | ||||||||||||
Meridian Energy Ltd. | 18,061 | 26 | ||||||||||
|
| |||||||||||
Total New Zealand | 253 | |||||||||||
|
| |||||||||||
NORWAY 1.3% | ||||||||||||
CONSUMER STAPLES 0.1% | ||||||||||||
Marine Harvest ASA | 2,437 | 28 | ||||||||||
Orkla ASA | 9,243 | 72 | ||||||||||
|
| |||||||||||
100 | ||||||||||||
|
| |||||||||||
ENERGY 0.8% | ||||||||||||
Akastor ASA | 2,398 | 4 |
SHARES | MARKET VALUE (000S) | |||||||||||
Petroleum Geo-Services ASA | 29,083 | $ | 156 | |||||||||
Statoil ASA | 60,659 | 1,085 | ||||||||||
|
| |||||||||||
1,245 | ||||||||||||
|
| |||||||||||
FINANCIALS 0.1% | ||||||||||||
DNB ASA | 8,624 | 144 | ||||||||||
Gjensidige Forsikring ASA | 1,931 | 31 | ||||||||||
|
| |||||||||||
175 | ||||||||||||
|
| |||||||||||
INDUSTRIALS 0.0% | ||||||||||||
Ship Finance International Ltd. | 1,077 | 18 | ||||||||||
|
| |||||||||||
INFORMATION TECHNOLOGY 0.0% | ||||||||||||
REC Silicon ASA (a) | 72,632 | 15 | ||||||||||
|
| |||||||||||
MATERIALS 0.2% | ||||||||||||
Norsk Hydro ASA | 17,277 | 73 | ||||||||||
Yara International ASA | 3,419 | 178 | ||||||||||
|
| |||||||||||
251 | ||||||||||||
|
| |||||||||||
TELECOMMUNICATION SERVICES 0.1% | ||||||||||||
Telenor ASA | 7,475 | 164 | ||||||||||
|
| |||||||||||
Total Norway | 1,968 | |||||||||||
|
| |||||||||||
PORTUGAL 0.2% | ||||||||||||
FINANCIALS 0.0% | ||||||||||||
Banco Comercial Portugues S.A. (a) | 301,181 | 26 | ||||||||||
Banco Espirito Santo S.A. (a) | 59,573 | 1 | ||||||||||
|
| |||||||||||
27 | ||||||||||||
|
| |||||||||||
UTILITIES 0.2% | ||||||||||||
EDP - Energias de Portugal S.A. | 73,609 | 280 | ||||||||||
|
| |||||||||||
Total Portugal | 307 | |||||||||||
|
| |||||||||||
SINGAPORE 1.2% | ||||||||||||
CONSUMER DISCRETIONARY 0.1% | ||||||||||||
City Developments Ltd. | 6,400 | 46 | ||||||||||
Jardine Cycle & Carriage Ltd. | 1,000 | 25 | ||||||||||
Singapore Press Holdings Ltd. | 19,700 | 60 | ||||||||||
|
| |||||||||||
131 | ||||||||||||
|
| |||||||||||
FINANCIALS 0.6% | ||||||||||||
CapitaLand Ltd. | 23,600 | 61 | ||||||||||
DBS Group Holdings Ltd. | 20,310 | 311 | ||||||||||
Oversea-Chinese Banking Corp. Ltd. | 27,500 | 208 | ||||||||||
United Overseas Bank Ltd. | 14,600 | 250 | ||||||||||
UOL Group Ltd. | 3,100 | 16 | ||||||||||
|
| |||||||||||
846 | ||||||||||||
|
| |||||||||||
INDUSTRIALS 0.3% | ||||||||||||
ComfortDelGro Corp. Ltd. | 35,600 | 83 | ||||||||||
Hutchison Port Holdings Trust | 143,400 | 90 | ||||||||||
Keppel Corp. Ltd. | 16,600 | 101 | ||||||||||
Sembcorp Industries Ltd. | 15,700 | 45 |
SHARES | MARKET VALUE (000S) | |||||||||||
Sembcorp Marine Ltd. | 7,800 | $ | 17 | |||||||||
Singapore Airlines Ltd. | 15,867 | 126 | ||||||||||
|
| |||||||||||
462 | ||||||||||||
|
| |||||||||||
INFORMATION TECHNOLOGY 0.1% | ||||||||||||
Avago Technologies Ltd. | 783 | 104 | ||||||||||
|
| |||||||||||
TELECOMMUNICATION SERVICES 0.1% | ||||||||||||
Singapore Telecommunications Ltd. | 75,200 | 237 | ||||||||||
|
| |||||||||||
Total Singapore | 1,780 | |||||||||||
|
| |||||||||||
SOUTH AFRICA 0.1% | ||||||||||||
FINANCIALS 0.0% | ||||||||||||
Investec PLC | 8,785 | 79 | ||||||||||
|
| |||||||||||
MATERIALS 0.1% | ||||||||||||
Lonmin PLC (a) | 123 | 0 | ||||||||||
Mondi PLC | 6,306 | 136 | ||||||||||
|
| |||||||||||
136 | ||||||||||||
|
| |||||||||||
Total South Africa | 215 | |||||||||||
|
| |||||||||||
SPAIN 4.2% | ||||||||||||
CONSUMER DISCRETIONARY 0.0% | ||||||||||||
Inditex S.A. | 884 | 29 | ||||||||||
Promotora de Informaciones S.A. (a) | 3,322 | 29 | ||||||||||
|
| |||||||||||
58 | ||||||||||||
|
| |||||||||||
ENERGY 0.2% | ||||||||||||
Repsol S.A. | 21,416 | 378 | ||||||||||
|
| |||||||||||
FINANCIALS 1.8% | ||||||||||||
Banco Bilbao Vizcaya Argentaria S.A. | 70,863 | 698 | ||||||||||
Banco de Sabadell S.A. | 27,853 | 67 | ||||||||||
Banco Santander S.A. | 276,646 | 1,946 | ||||||||||
Caja de Ahorros del Mediterraneo (a) | 1,436 | 0 | ||||||||||
Mapfre S.A. | 9,401 | 33 | ||||||||||
|
| |||||||||||
2,744 | ||||||||||||
|
| |||||||||||
INDUSTRIALS 0.6% | ||||||||||||
Abengoa S.A. ‘B’ | 34,194 | 108 | ||||||||||
Abertis Infraestructuras S.A. | 3,690 | 61 | ||||||||||
Acciona S.A. (a) | 1,714 | 130 | ||||||||||
ACS Actividades de Construccion y Servicios S.A. | 5,406 | 174 | ||||||||||
Ferrovial S.A. | 9,551 | 207 | ||||||||||
Fomento de Construcciones y Contratas S.A. | 6,929 | 71 | ||||||||||
Gamesa Corp. Tecnologica S.A. (a) | 6,493 | 102 | ||||||||||
|
| |||||||||||
853 | ||||||||||||
|
| |||||||||||
TELECOMMUNICATION SERVICES 1.1% | ||||||||||||
Telefonica S.A. | 111,845 | 1,593 | ||||||||||
|
| |||||||||||
See Accompanying Notes | ANNUAL REPORT | JUNE 30, 2015 | 39 |
Table of Contents
Schedule of Investments PIMCO RAE Fundamental International Fund (Cont.)
SHARES | MARKET VALUE (000S) | |||||||||||
UTILITIES 0.5% | ||||||||||||
Endesa S.A. | 12,804 | $ | 245 | |||||||||
Gas Natural SDG S.A. | 5,304 | 121 | ||||||||||
Iberdrola S.A. | 66,781 | 451 | ||||||||||
|
| |||||||||||
817 | ||||||||||||
|
| |||||||||||
Total Spain | 6,443 | |||||||||||
|
| |||||||||||
SWEDEN 1.6% | ||||||||||||
CONSUMER DISCRETIONARY 0.2% | ||||||||||||
Electrolux AB ‘B’ | 3,635 | 114 | ||||||||||
Hennes & Mauritz AB ‘B’ | 2,481 | 95 | ||||||||||
Volvo AB ‘B’ | 8,788 | 109 | ||||||||||
|
| |||||||||||
318 | ||||||||||||
|
| |||||||||||
CONSUMER STAPLES 0.1% | ||||||||||||
Svenska Cellulosa AB S.C.A. | 3,774 | 96 | ||||||||||
Swedish Match AB | 3,519 | 100 | ||||||||||
|
| |||||||||||
196 | ||||||||||||
|
| |||||||||||
FINANCIALS 0.4% | ||||||||||||
Nordea Bank AB | 25,369 | 317 | ||||||||||
Skandinaviska Enskilda Banken AB | 9,278 | 119 | ||||||||||
Svenska Handelsbanken AB ‘A’ | 5,231 | 76 | ||||||||||
Swedbank AB ‘A’ | 1,257 | 29 | ||||||||||
|
| |||||||||||
541 | ||||||||||||
|
| |||||||||||
INDUSTRIALS 0.3% | ||||||||||||
Atlas Copco AB ‘A’ | 3,929 | 110 | ||||||||||
NCC AB ‘B’ | 2,591 | 79 | ||||||||||
S.A.S. AB (a) | 9,052 | 16 | ||||||||||
Saab AB | 1,635 | 40 | ||||||||||
Sandvik AB | 3,445 | 38 | ||||||||||
Securitas AB ‘B’ | 5,301 | 70 | ||||||||||
Skanska AB ‘B’ | 6,292 | 128 | ||||||||||
SKF AB ‘B’ | 1,581 | 36 | ||||||||||
|
| |||||||||||
517 | ||||||||||||
|
| |||||||||||
INFORMATION TECHNOLOGY 0.2% | ||||||||||||
Telefonaktiebolaget LM Ericsson ‘B’ | 23,641 | 246 | ||||||||||
|
| |||||||||||
MATERIALS 0.1% | ||||||||||||
Boliden AB | 4,796 | 87 | ||||||||||
Holmen AB ‘B’ | 942 | 28 | ||||||||||
|
| |||||||||||
115 | ||||||||||||
|
| |||||||||||
TELECOMMUNICATION SERVICES 0.3% | ||||||||||||
Tele2 AB ‘B’ | 21,392 | 249 | ||||||||||
TeliaSonera AB | 38,634 | 228 | ||||||||||
|
| |||||||||||
477 | ||||||||||||
|
| |||||||||||
Total Sweden | 2,410 | |||||||||||
|
| |||||||||||
SWITZERLAND 5.0% | ||||||||||||
CONSUMER DISCRETIONARY 0.1% | ||||||||||||
Garmin Ltd. | 1,253 | 55 | ||||||||||
Georg Fischer AG | 65 | 45 | ||||||||||
|
| |||||||||||
100 | ||||||||||||
|
| |||||||||||
SHARES | MARKET VALUE (000S) | |||||||||||
CONSUMER STAPLES 0.5% | ||||||||||||
Coca-Cola HBC AG | 2,577 | $ | 55 | |||||||||
Nestle S.A. | 10,210 | 737 | ||||||||||
|
| |||||||||||
792 | ||||||||||||
|
| |||||||||||
ENERGY 0.3% | ||||||||||||
Petroplus Holdings AG (a) | 2,921 | 0 | ||||||||||
Transocean Ltd. | 13,611 | 219 | ||||||||||
Weatherford International PLC (a) | 16,027 | 197 | ||||||||||
|
| |||||||||||
416 | ||||||||||||
|
| |||||||||||
FINANCIALS 1.5% | ||||||||||||
Allied World Assurance Co. Holdings AG | 2,288 | 99 | ||||||||||
Baloise Holding AG | 673 | 82 | ||||||||||
Credit Suisse Group AG | 13,600 | 375 | ||||||||||
Helvetia Holding AG | 158 | 90 | ||||||||||
Swiss Life Holding AG | 909 | 208 | ||||||||||
Swiss Re AG | 5,633 | 499 | ||||||||||
UBS Group AG | 10,476 | 222 | ||||||||||
Zurich Financial Services AG | 2,502 | 762 | ||||||||||
|
| |||||||||||
2,337 | ||||||||||||
|
| |||||||||||
HEALTH CARE 1.8% | ||||||||||||
Novartis AG | 16,815 | 1,654 | ||||||||||
Roche Holding AG | 3,814 | 1,070 | ||||||||||
|
| |||||||||||
2,724 | ||||||||||||
|
| |||||||||||
INDUSTRIALS 0.3% | ||||||||||||
ABB Ltd. | 11,475 | 241 | ||||||||||
Adecco S.A. | 899 | 73 | ||||||||||
Wolseley PLC | 2,560 | 163 | ||||||||||
|
| |||||||||||
477 | ||||||||||||
|
| |||||||||||
INFORMATION TECHNOLOGY 0.2% | ||||||||||||
STMicroelectronics NV | 8,209 | 67 | ||||||||||
TE Connectivity Ltd. | 3,781 | 243 | ||||||||||
|
| |||||||||||
310 | ||||||||||||
|
| |||||||||||
MATERIALS 0.3% | ||||||||||||
Clariant AG | 2,656 | 54 | ||||||||||
Glencore PLC | 19,733 | 79 | ||||||||||
Holcim Ltd. | 1,191 | 88 | ||||||||||
Syngenta AG | 362 | 148 | ||||||||||
|
| |||||||||||
369 | ||||||||||||
|
| |||||||||||
TELECOMMUNICATION SERVICES 0.0% | ||||||||||||
Swisscom AG | 29 | 16 | ||||||||||
|
| |||||||||||
Total Switzerland | 7,541 | |||||||||||
|
| |||||||||||
UNITED KINGDOM 17.3% | ||||||||||||
CONSUMER DISCRETIONARY 1.5% | ||||||||||||
British Sky Broadcasting Group PLC | 6,801 | 111 | ||||||||||
Burberry Group PLC | 662 | 16 | ||||||||||
Compass Group PLC | 17,956 | 297 |
SHARES | MARKET VALUE (000S) | |||||||||||
Dixons Carphone PLC | 12,782 | $ | 91 | |||||||||
Fiat Chrysler Automobiles NV (a) | 18,953 | 275 | ||||||||||
Halfords Group PLC | 9,458 | 78 | ||||||||||
Home Retail Group PLC | 60,056 | 160 | ||||||||||
Inchcape PLC | 4,252 | 54 | ||||||||||
InterContinental Hotels Group PLC | 1,603 | 65 | ||||||||||
Kingfisher PLC | 20,529 | 112 | ||||||||||
Marks & Spencer Group PLC | 19,423 | 164 | ||||||||||
Next PLC | 990 | 116 | ||||||||||
Pearson PLC | 6,148 | 116 | ||||||||||
Reed Elsevier PLC | 1,434 | 23 | ||||||||||
Thomas Cook Group PLC (a) | 69,873 | 150 | ||||||||||
WH Smith PLC | 4,039 | 97 | ||||||||||
WPP PLC | 14,615 | 328 | ||||||||||
|
| |||||||||||
2,253 | ||||||||||||
|
| |||||||||||
CONSUMER STAPLES 2.7% | ||||||||||||
Associated British Foods PLC | 625 | 28 | ||||||||||
British American Tobacco PLC | 19,978 | 1,076 | ||||||||||
Dairy Crest Group PLC | 2,433 | 20 | ||||||||||
Diageo PLC | 12,271 | 355 | ||||||||||
Greggs PLC | 2,085 | 39 | ||||||||||
Imperial Tobacco Group PLC | 8,990 | 433 | ||||||||||
J Sainsbury PLC | 24,514 | 102 | ||||||||||
Premier Foods PLC (a) | 36,793 | 22 | ||||||||||
Reckitt Benckiser Group PLC | 3,823 | 330 | ||||||||||
SABMiller PLC | 4,725 | 245 | ||||||||||
Tesco PLC | 95,559 | 318 | ||||||||||
Unilever NV - Dutch Certificate | 10,729 | 449 | ||||||||||
Unilever PLC | 7,858 | 337 | ||||||||||
WM Morrison Supermarkets PLC | 110,963 | 315 | ||||||||||
|
| |||||||||||
4,069 | ||||||||||||
|
| |||||||||||
ENERGY 2.0% | ||||||||||||
Amec Foster Wheeler PLC | 1,268 | 16 | ||||||||||
BG Group PLC | 15,732 | 262 | ||||||||||
BP PLC | 403,523 | 2,678 | ||||||||||
Cairn Energy PLC (a) | 8,805 | 24 | ||||||||||
Subsea 7 S.A. | 1,946 | 19 | ||||||||||
|
| |||||||||||
2,999 | ||||||||||||
|
| |||||||||||
FINANCIALS 5.1% | ||||||||||||
Amlin PLC | 3,878 | 29 | ||||||||||
Aviva PLC | 70,403 | 545 | ||||||||||
Barclays PLC | 257,196 | 1,054 | ||||||||||
Direct Line Insurance Group PLC | 16,241 | 86 | ||||||||||
HSBC Holdings PLC | 335,162 | 3,001 | ||||||||||
ICAP PLC | 20,781 | 173 | ||||||||||
Lancashire Holdings Ltd. | 9,836 | 95 | ||||||||||
Legal & General Group PLC | 35,894 | 140 | ||||||||||
Lloyds Banking Group PLC | 466,843 | 627 | ||||||||||
Man Group PLC | 177,781 | 438 | ||||||||||
Old Mutual PLC | 71,253 | 226 | ||||||||||
Prudential PLC | 9,843 | 237 | ||||||||||
Royal Bank of Scotland Group PLC (a) | 53,941 | 298 |
40 | PIMCO EQUITY SERIES | See Accompanying Notes |
Table of Contents
June 30, 2015
SHARES | MARKET VALUE (000S) | |||||||||||
RSA Insurance Group PLC | 12,729 | $ | 80 | |||||||||
Standard Chartered PLC | 30,696 | 492 | ||||||||||
Standard Life PLC | 18,220 | 127 | ||||||||||
Tullett Prebon PLC | 6,619 | 38 | ||||||||||
|
| |||||||||||
7,686 | ||||||||||||
|
| |||||||||||
HEALTH CARE 1.6% | ||||||||||||
AstraZeneca PLC | 23,045 | 1,459 | ||||||||||
GlaxoSmithKline PLC | 48,361 | 1,005 | ||||||||||
Smith & Nephew PLC | 3,925 | 66 | ||||||||||
|
| |||||||||||
2,530 | ||||||||||||
|
| |||||||||||
INDUSTRIALS 1.1% | ||||||||||||
BAE Systems PLC | 82,845 | 587 | ||||||||||
Berendsen PLC | 2,466 | 39 | ||||||||||
Carillion PLC | 5,103 | 27 | ||||||||||
CNH Industrial NV | 3,317 | 30 | ||||||||||
Cobham PLC | 3,674 | 15 | ||||||||||
Firstgroup PLC | 35,515 | 67 | ||||||||||
Go-Ahead Group PLC | 2,239 | 93 | ||||||||||
Hays PLC | 47,431 | 122 | ||||||||||
IMI PLC | 1,692 | 30 | ||||||||||
International Consolidated Airlines Group S.A. (a) | 24,580 | 191 | ||||||||||
National Express Group PLC | 14,508 | 70 | ||||||||||
QinetiQ Group PLC | 13,681 | 48 | ||||||||||
Rentokil Initial PLC | 44,234 | 103 | ||||||||||
Rolls-Royce Holdings PLC | 8,531 | 117 | ||||||||||
Royal Mail PLC | 18,100 | 146 | ||||||||||
WS Atkins PLC | 1,012 | 24 | ||||||||||
|
| |||||||||||
1,709 | ||||||||||||
|
| |||||||||||
INFORMATION TECHNOLOGY 0.1% | ||||||||||||
ARM Holdings PLC | 1,038 | 17 | ||||||||||
Sage Group PLC | 9,314 | 75 | ||||||||||
|
| |||||||||||
92 | ||||||||||||
|
| |||||||||||
MATERIALS 1.3% | ||||||||||||
Anglo American PLC | 43,828 | 633 | ||||||||||
Antofagasta PLC | 13,433 | 145 | ||||||||||
KAZ Minerals PLC | 22,650 | 72 | ||||||||||
Rexam PLC | 6,452 | 56 | ||||||||||
Rio Tinto Ltd. | 8,907 | 369 | ||||||||||
Rio Tinto PLC | 17,198 | 708 | ||||||||||
|
| |||||||||||
1,983 | ||||||||||||
|
| |||||||||||
TELECOMMUNICATION SERVICES 1.2% | ||||||||||||
BT Group PLC | 75,534 | 535 | ||||||||||
Cable & Wireless Communications PLC | 121,585 | 127 | ||||||||||
TalkTalk Telecom Group PLC | 5,166 | 31 | ||||||||||
Vodafone Group PLC | 310,198 | 1,132 | ||||||||||
|
| |||||||||||
1,825 | ||||||||||||
|
| |||||||||||
UTILITIES 0.7% | ||||||||||||
Centrica PLC | 65,204 | 271 | ||||||||||
National Grid PLC | 28,285 | 364 |
SHARES | MARKET VALUE (000S) | |||||||||||
Pennon Group PLC | 3,359 | $ | 43 | |||||||||
Severn Trent PLC | 3,142 | 103 | ||||||||||
SSE PLC | 7,270 | 175 | ||||||||||
United Utilities Group PLC | 12,878 | 180 | ||||||||||
|
| |||||||||||
1,136 | ||||||||||||
|
| |||||||||||
Total United Kingdom | 26,282 | |||||||||||
|
| |||||||||||
UNITED STATES 0.2% | ||||||||||||
CONSUMER DISCRETIONARY 0.1% | ||||||||||||
Thomson Reuters Corp. | 3,411 | 130 | ||||||||||
|
| |||||||||||
INFORMATION TECHNOLOGY 0.1% | ||||||||||||
Seagate Technology PLC | 3,200 | 152 | ||||||||||
|
| |||||||||||
MATERIALS 0.0% | ||||||||||||
Alacer Gold Corp. | 8,400 | 19 | ||||||||||
Sims Metal Management Ltd. | 5,105 | 41 | ||||||||||
|
| |||||||||||
60 | ||||||||||||
|
| |||||||||||
Total United States | 342 | |||||||||||
|
| |||||||||||
Total Common Stocks (Cost $125,574) | 148,164 | |||||||||||
|
| |||||||||||
EQUITY-LINKED SECURITIES 0.1% | ||||||||||||
FRANCE 0.1% | ||||||||||||
CONSUMER DISCRETIONARY 0.1% | ||||||||||||
Peugeot S.A. 04/29/2017 | 40,209 | 189 | ||||||||||
|
| |||||||||||
Total Equity-Linked Securities (Cost $40) | 189 | |||||||||||
|
| |||||||||||
PREFERRED STOCKS 0.4% | ||||||||||||
GERMANY 0.4% | ||||||||||||
CONSUMER DISCRETIONARY 0.3% | ||||||||||||
Volkswagen AG | 2,122 | 493 | ||||||||||
|
| |||||||||||
CONSUMER STAPLES 0.1% | ||||||||||||
Henkel AG & Co. KGaA | 1,204 | 135 | ||||||||||
|
| |||||||||||
Total Preferred Stocks (Cost $512) | 628 | |||||||||||
|
| |||||||||||
REAL ESTATE INVESTMENT TRUSTS 1.0% | ||||||||||||
AUSTRALIA 0.5% | ||||||||||||
FINANCIALS 0.5% | ||||||||||||
Dexus Property Group | 18,939 | 106 | ||||||||||
Federation Centres | 27,104 | 61 | ||||||||||
GPT Group | 19,467 | 64 | ||||||||||
Mirvac Group | 79,863 | 114 | ||||||||||
Scentre Group | 18,957 | 55 | ||||||||||
Stockland | 79,185 | 250 | ||||||||||
Westfield Corp. | 20,376 | 143 | ||||||||||
|
| |||||||||||
793 | ||||||||||||
|
| |||||||||||
Total Australia | 793 | |||||||||||
|
| |||||||||||
CANADA 0.1% | ||||||||||||
FINANCIALS 0.1% | ||||||||||||
Boardwalk Real Estate Investment Trust | 1,280 | 58 | ||||||||||
Calloway Real Estate Investment Trust | 700 | 16 |
SHARES | MARKET VALUE (000S) | |||||||||||
Cominar Real Estate Investment Trust | 2,217 | $ | 32 | |||||||||
RioCan Real Estate Investment Trust | 741 | 16 | ||||||||||
|
| |||||||||||
122 | ||||||||||||
|
| |||||||||||
Total Canada | 122 | |||||||||||
|
| |||||||||||
FRANCE 0.1% | ||||||||||||
FINANCIALS 0.1% | ||||||||||||
Fonciere Des Regions | 490 | 42 | ||||||||||
Unibail-Rodamco SE | 309 | 78 | ||||||||||
|
| |||||||||||
120 | ||||||||||||
|
| |||||||||||
Total France | 120 | |||||||||||
|
| |||||||||||
HONG KONG 0.1% | ||||||||||||
FINANCIALS 0.1% | ||||||||||||
Champion REIT | 104,000 | 57 | ||||||||||
Link REIT | 17,500 | 102 | ||||||||||
|
| |||||||||||
159 | ||||||||||||
|
| |||||||||||
Total Hong Kong | 159 | |||||||||||
|
| |||||||||||
UNITED KINGDOM 0.2% | ||||||||||||
FINANCIALS 0.2% | ||||||||||||
Hammerson PLC | 3,537 | 34 | ||||||||||
Land Securities Group PLC | 6,959 | 132 | ||||||||||
Segro PLC | 18,354 | 117 | ||||||||||
|
| |||||||||||
283 | ||||||||||||
|
| |||||||||||
Total United Kingdom | 283 | |||||||||||
|
| |||||||||||
Total Real Estate Investment Trusts |
| 1,477 | ||||||||||
|
| |||||||||||
RIGHTS 0.0% | ||||||||||||
AUSTRIA 0.0% | ||||||||||||
FINANCIALS 0.0% | ||||||||||||
Bank Austria | 80 | 0 | ||||||||||
|
| |||||||||||
Total Austria | 0 | |||||||||||
|
| |||||||||||
ITALY 0.0% | ||||||||||||
FINANCIALS 0.0% | ||||||||||||
Unipol Gruppo Finanziario SpA Rights | 8,246 | 0 | ||||||||||
|
| |||||||||||
Total Italy | 0 | |||||||||||
|
| |||||||||||
SINGAPORE 0.0% | ||||||||||||
CONSUMER DISCRETIONARY 0.0% | ||||||||||||
Jardine Cycle & Carriage Ltd. | 244 | 1 | ||||||||||
|
| |||||||||||
Total Singapore | 1 | |||||||||||
|
| |||||||||||
Total Rights (Cost $0) |
| 1 | ||||||||||
|
| |||||||||||
Total Investments in Securities (Cost $127,590) | 150,459 | |||||||||||
Total Investments 99.3% (Cost $127,590) | $ | 150,459 | ||||||||||
Other Assets and Liabilities, net 0.7% | 1,103 | |||||||||||
|
| |||||||||||
Net Assets 100.0% | $ | 151,562 | ||||||||||
|
|
See Accompanying Notes | ANNUAL REPORT | JUNE 30, 2015 | 41 |
Table of Contents
Schedule of Investments PIMCO RAE Fundamental International Fund (Cont.)
NOTES TO SCHEDULE OF INVESTMENTS (AMOUNTS IN THOUSANDS*):
* | A zero balance may reflect actual amounts rounding to less than one thousand. |
(a) | Security did not produce income within the last twelve months. |
FAIR VALUE MEASUREMENTS
The following is a summary of the fair valuations according to the inputs used as of June 30, 2015 in valuing the Fund’s assets and liabilities:
Category and Subcategory | Level 1 | Level 2 | Level 3 | Fair Value at 06/30/2015 | ||||||||||||
Investments in Securities, at Value |
| |||||||||||||||
Common Stocks | ||||||||||||||||
Australia | ||||||||||||||||
Consumer Discretionary | $ | 0 | $ | 462 | $ | 0 | $ | 462 | ||||||||
Consumer Staples | 0 | 953 | 0 | 953 | ||||||||||||
Energy | 0 | 342 | 0 | 342 | ||||||||||||
Financials | 0 | 5,980 | 1 | 5,981 | ||||||||||||
Health Care | 0 | 328 | 0 | 328 | ||||||||||||
Industrials | 0 | 1,010 | 0 | 1,010 | ||||||||||||
Materials | 97 | 2,239 | 0 | 2,336 | ||||||||||||
Telecommunication Services | 0 | 451 | 0 | 451 | ||||||||||||
Utilities | 0 | 244 | 0 | 244 | ||||||||||||
Austria | ||||||||||||||||
Energy | 0 | 227 | 0 | 227 | ||||||||||||
Financials | 0 | 313 | 0 | 313 | ||||||||||||
Industrials | 33 | 0 | 0 | 33 | ||||||||||||
Materials | 0 | 174 | 0 | 174 | ||||||||||||
Belgium | ||||||||||||||||
Consumer Staples | 0 | 614 | 0 | 614 | ||||||||||||
Financials | 0 | 315 | 0 | 315 | ||||||||||||
Materials | 0 | 135 | 0 | 135 | ||||||||||||
Telecommunication Services | 45 | 255 | 0 | 300 | ||||||||||||
Canada | ||||||||||||||||
Consumer Discretionary | 448 | 0 | 0 | 448 | ||||||||||||
Consumer Staples | 249 | 0 | 0 | 249 | ||||||||||||
Energy | 2,819 | 0 | 0 | 2,819 | ||||||||||||
Financials | 5,368 | 0 | 0 | 5,368 | ||||||||||||
Industrials | 1,215 | 0 | 0 | 1,215 | ||||||||||||
Information Technology | 407 | 0 | 0 | 407 | ||||||||||||
Materials | 1,892 | 0 | 0 | 1,892 | ||||||||||||
Telecommunication Services | 810 | 0 | 0 | 810 | ||||||||||||
Utilities | 347 | 0 | 0 | 347 | ||||||||||||
Colombia | ||||||||||||||||
Energy | 107 | 0 | 0 | 107 | ||||||||||||
Denmark | ||||||||||||||||
Consumer Staples | 0 | 141 | 0 | 141 | ||||||||||||
Energy | 0 | 90 | 0 | 90 | ||||||||||||
Financials | 0 | 335 | 0 | 335 | ||||||||||||
Health Care | 0 | 554 | 0 | 554 | ||||||||||||
Industrials | 0 | 350 | 0 | 350 | ||||||||||||
Telecommunication Services | 0 | 288 | 0 | 288 | ||||||||||||
Finland | ||||||||||||||||
Consumer Staples | 0 | 46 | 0 | 46 | ||||||||||||
Energy | 0 | 74 | 0 | 74 | ||||||||||||
Financials | 0 | 78 | 0 | 78 | ||||||||||||
Health Care | 0 | 38 | 0 | 38 | ||||||||||||
Industrials | 0 | 26 | 0 | 26 | ||||||||||||
Information Technology | 0 | 332 | 0 | 332 | ||||||||||||
Materials | 0 | 374 | 0 | 374 | ||||||||||||
Telecommunication Services | 0 | 36 | 0 | 36 | ||||||||||||
Utilities | 0 | 85 | 0 | 85 | ||||||||||||
France | ||||||||||||||||
Consumer Discretionary | 71 | 2,371 | 0 | 2,442 | ||||||||||||
Consumer Staples | 0 | 593 | 0 | 593 | ||||||||||||
Energy | 0 | 2,391 | 0 | 2,391 | ||||||||||||
Financials | 0 | 2,160 | 0 | 2,160 | ||||||||||||
Health Care | 0 | 870 | 0 | 870 | ||||||||||||
Industrials | 361 | 1,449 | 0 | 1,810 | ||||||||||||
Information Technology | 17 | 340 | 0 | 357 | ||||||||||||
Materials | 0 | 640 | 0 | 640 | ||||||||||||
Telecommunication Services | 0 | 2,008 | 0 | 2,008 | ||||||||||||
Utilities | 0 | 1,952 | 0 | 1,952 |
Category and Subcategory | Level 1 | Level 2 | Level 3 | Fair Value at 06/30/2015 | ||||||||||||
Germany | ||||||||||||||||
Consumer Discretionary | $ | 0 | $ | 1,489 | $ | 0 | $ | 1,489 | ||||||||
Consumer Staples | 0 | 495 | 0 | 495 | ||||||||||||
Financials | 0 | 1,804 | 0 | 1,804 | ||||||||||||
Health Care | 0 | 1,334 | 0 | 1,334 | ||||||||||||
Industrials | 71 | 1,676 | 0 | 1,747 | ||||||||||||
Information Technology | 0 | 268 | 0 | 268 | ||||||||||||
Materials | 0 | 2,182 | 0 | 2,182 | ||||||||||||
Telecommunication Services | 0 | 1,427 | 0 | 1,427 | ||||||||||||
Utilities | 0 | 1,793 | 0 | 1,793 | ||||||||||||
Hong Kong | ||||||||||||||||
Consumer Discretionary | 26 | 195 | 0 | 221 | ||||||||||||
Financials | 383 | 2,004 | 0 | 2,387 | ||||||||||||
Industrials | 0 | 384 | 0 | 384 | ||||||||||||
Materials | 0 | 38 | 0 | 38 | ||||||||||||
Telecommunication Services | 0 | 136 | 0 | 136 | ||||||||||||
Utilities | 0 | 127 | 0 | 127 | ||||||||||||
Ireland | ||||||||||||||||
Energy | 0 | 74 | 0 | 74 | ||||||||||||
Health Care | 325 | 215 | 0 | 540 | ||||||||||||
Industrials | 0 | 47 | 0 | 47 | ||||||||||||
Materials | 0 | 313 | 0 | 313 | ||||||||||||
Israel | ||||||||||||||||
Financials | 0 | 487 | 0 | 487 | ||||||||||||
Health Care | 666 | 0 | 0 | 666 | ||||||||||||
Materials | 0 | 171 | 0 | 171 | ||||||||||||
Telecommunication Services | 0 | 196 | 0 | 196 | ||||||||||||
Italy | ||||||||||||||||
Consumer Discretionary | 0 | 69 | 0 | 69 | ||||||||||||
Energy | 0 | 1,382 | 0 | 1,382 | ||||||||||||
Financials | 0 | 1,885 | 0 | 1,885 | ||||||||||||
Industrials | 0 | 357 | 0 | 357 | ||||||||||||
Materials | 0 | 62 | 0 | 62 | ||||||||||||
Telecommunication Services | 0 | 771 | 0 | 771 | ||||||||||||
Utilities | 0 | 1,130 | 0 | 1,130 | ||||||||||||
Japan | ||||||||||||||||
Consumer Discretionary | 0 | 3,021 | 0 | 3,021 | ||||||||||||
Consumer Staples | 0 | 1,698 | 0 | 1,698 | ||||||||||||
Energy | 0 | 844 | 0 | 844 | ||||||||||||
Financials | 0 | 4,243 | 0 | 4,243 | ||||||||||||
Health Care | 0 | 924 | 0 | 924 | ||||||||||||
Industrials | 0 | 4,020 | 0 | 4,020 | ||||||||||||
Information Technology | 0 | 2,838 | 0 | 2,838 | ||||||||||||
Materials | 0 | 2,271 | 0 | 2,271 | ||||||||||||
Telecommunication Services | 0 | 2,081 | 0 | 2,081 | ||||||||||||
Utilities | 0 | 1,227 | 0 | 1,227 | ||||||||||||
Luxembourg | ||||||||||||||||
Consumer Discretionary | 0 | 164 | 0 | 164 | ||||||||||||
Materials | 130 | 397 | 0 | 527 | ||||||||||||
Telecommunication Services | 0 | 38 | 0 | 38 | ||||||||||||
Netherlands | ||||||||||||||||
Consumer Discretionary | 0 | 75 | 0 | 75 | ||||||||||||
Consumer Staples | 0 | 495 | 0 | 495 | ||||||||||||
Energy | 0 | 3,774 | 0 | 3,774 | ||||||||||||
Financials | 26 | 1,005 | 0 | 1,031 | ||||||||||||
Industrials | 0 | 389 | 0 | 389 | ||||||||||||
Materials | 0 | 463 | 0 | 463 | ||||||||||||
Telecommunication Services | 133 | 435 | 0 | 568 | ||||||||||||
New Zealand | ||||||||||||||||
Materials | 0 | 21 | 0 | 21 | ||||||||||||
Telecommunication Services | 0 | 206 | 0 | 206 | ||||||||||||
Utilities | 26 | 0 | 0 | 26 |
42 | PIMCO EQUITY SERIES | See Accompanying Notes |
Table of Contents
June 30, 2015
Category and Subcategory | Level 1 | Level 2 | Level 3 | Fair Value at 06/30/2015 | ||||||||||||
Norway | ||||||||||||||||
Consumer Staples | $ | 0 | $ | 100 | $ | 0 | $ | 100 | ||||||||
Energy | 0 | 1,245 | 0 | 1,245 | ||||||||||||
Financials | 0 | 175 | 0 | 175 | ||||||||||||
Industrials | 18 | 0 | 0 | 18 | ||||||||||||
Information Technology | 0 | 15 | 0 | 15 | ||||||||||||
Materials | 0 | 251 | 0 | 251 | ||||||||||||
Telecommunication Services | 0 | 164 | 0 | 164 | ||||||||||||
Portugal | ||||||||||||||||
Financials | 0 | 26 | 1 | 27 | ||||||||||||
Utilities | 0 | 280 | 0 | 280 | ||||||||||||
Singapore | ||||||||||||||||
Consumer Discretionary | 0 | 131 | 0 | 131 | ||||||||||||
Financials | 0 | 846 | 0 | 846 | ||||||||||||
Industrials | 0 | 462 | 0 | 462 | ||||||||||||
Information Technology | 104 | 0 | 0 | 104 | ||||||||||||
Telecommunication Services | 0 | 237 | 0 | 237 | ||||||||||||
South Africa | ||||||||||||||||
Financials | 0 | 79 | 0 | 79 | ||||||||||||
Materials | 0 | 136 | 0 | 136 | ||||||||||||
Spain | ||||||||||||||||
Consumer Discretionary | 0 | 58 | 0 | 58 | ||||||||||||
Energy | 0 | 378 | 0 | 378 | ||||||||||||
Financials | 0 | 2,744 | 0 | 2,744 | ||||||||||||
Industrials | 0 | 853 | 0 | 853 | ||||||||||||
Telecommunication Services | 0 | 1,593 | 0 | 1,593 | ||||||||||||
Utilities | 0 | 817 | 0 | 817 | ||||||||||||
Sweden | ||||||||||||||||
Consumer Discretionary | 0 | 318 | 0 | 318 | ||||||||||||
Consumer Staples | 0 | 196 | 0 | 196 | ||||||||||||
Financials | 0 | 541 | 0 | 541 | ||||||||||||
Industrials | 0 | 517 | 0 | 517 | ||||||||||||
Information Technology | 0 | 246 | 0 | 246 | ||||||||||||
Materials | 0 | 115 | 0 | 115 | ||||||||||||
Telecommunication Services | 0 | 477 | 0 | 477 | ||||||||||||
Switzerland | ||||||||||||||||
Consumer Discretionary | 55 | 45 | 0 | 100 | ||||||||||||
Consumer Staples | 0 | 792 | 0 | 792 | ||||||||||||
Energy | 416 | 0 | 0 | 416 | ||||||||||||
Financials | 99 | 2,238 | 0 | 2,337 | ||||||||||||
Health Care | 0 | 2,724 | 0 | 2,724 | ||||||||||||
Industrials | 0 | 477 | 0 | 477 |
Category and Subcategory | Level 1 | Level 2 | Level 3 | Fair Value at 06/30/2015 | ||||||||||||
Information Technology | $ | 243 | $ | 67 | $ | 0 | $ | 310 | ||||||||
Materials | 0 | 369 | 0 | 369 | ||||||||||||
Telecommunication Services | 0 | 16 | 0 | 16 | ||||||||||||
United Kingdom | ||||||||||||||||
Consumer Discretionary | 435 | 1,818 | 0 | 2,253 | ||||||||||||
Consumer Staples | 0 | 4,069 | 0 | 4,069 | ||||||||||||
Energy | 0 | 2,999 | 0 | 2,999 | ||||||||||||
Financials | 86 | 7,600 | 0 | 7,686 | ||||||||||||
Health Care | 0 | 2,530 | 0 | 2,530 | ||||||||||||
Industrials | 0 | 1,709 | 0 | 1,709 | ||||||||||||
Information Technology | 0 | 92 | 0 | 92 | ||||||||||||
Materials | 0 | 1,983 | 0 | 1,983 | ||||||||||||
Telecommunication Services | 0 | 1,825 | 0 | 1,825 | ||||||||||||
Utilities | 175 | 961 | 0 | 1,136 | ||||||||||||
United States | ||||||||||||||||
Consumer Discretionary | 130 | 0 | 0 | 130 | ||||||||||||
Information Technology | 152 | 0 | 0 | 152 | ||||||||||||
Materials | 19 | 41 | 0 | 60 | ||||||||||||
Equity-Linked Securities | ||||||||||||||||
France | ||||||||||||||||
Consumer Discretionary | 189 | 0 | 0 | 189 | ||||||||||||
Preferred Stocks | ||||||||||||||||
Germany | ||||||||||||||||
Consumer Discretionary | 0 | 493 | 0 | 493 | ||||||||||||
Consumer Staples | 0 | 135 | 0 | 135 | ||||||||||||
Real Estate Investment Trusts | ||||||||||||||||
Australia | ||||||||||||||||
Financials | 0 | 793 | 0 | 793 | ||||||||||||
Canada | ||||||||||||||||
Financials | 122 | 0 | 0 | 122 | ||||||||||||
France | ||||||||||||||||
Financials | 0 | 120 | 0 | 120 | ||||||||||||
Hong Kong | ||||||||||||||||
Financials | 57 | 102 | 0 | 159 | ||||||||||||
United Kingdom | ||||||||||||||||
Financials | 0 | 283 | 0 | 283 | ||||||||||||
Rights | ||||||||||||||||
Singapore | ||||||||||||||||
Consumer Discretionary | 0 | 0 | 1 | 1 | ||||||||||||
Total Investments | $ | 18,372 | $ | 132,084 | $ | 3 | $ | 150,459 |
There were no significant transfers between Levels 1, 2, or 3 during the period ended June 30, 2015.
See Accompanying Notes | ANNUAL REPORT | JUNE 30, 2015 | 43 |
Table of Contents
Schedule of Investments PIMCO RAE Fundamental US Fund
SHARES | MARKET VALUE (000S) | |||||||||||
INVESTMENTS IN SECURITIES 99.5% | ||||||||||||
COMMON STOCKS 98.5% | ||||||||||||
IRELAND 0.5% | ||||||||||||
FINANCIALS 0.1% | ||||||||||||
XL Group PLC | 4,894 | $ | 182 | |||||||||
|
| |||||||||||
HEALTH CARE 0.2% | ||||||||||||
Medtronic PLC | 13,624 | 1,009 | ||||||||||
|
| |||||||||||
INFORMATION TECHNOLOGY 0.2% | ||||||||||||
Accenture PLC ‘A’ | 10,611 | 1,027 | ||||||||||
|
| |||||||||||
Total Ireland | 2,218 | |||||||||||
|
| |||||||||||
MEXICO 0.1% | ||||||||||||
MATERIALS 0.1% | ||||||||||||
Southern Copper Corp. | 13,402 | 394 | ||||||||||
|
| |||||||||||
Total Mexico | 394 | |||||||||||
|
| |||||||||||
SWITZERLAND 0.1% | ||||||||||||
FINANCIALS 0.1% | ||||||||||||
ACE Ltd. | 2,501 | 254 | ||||||||||
|
| |||||||||||
Total Switzerland | 254 | |||||||||||
|
| |||||||||||
UNITED STATES 97.8% | ||||||||||||
CONSUMER DISCRETIONARY 14.0% | ||||||||||||
Aaron’s, Inc. | 13,125 | 475 | ||||||||||
Abercrombie & Fitch Co. ‘A’ | 18,448 | 397 | ||||||||||
Advance Auto Parts, Inc. | 1,465 | 233 | ||||||||||
Amazon.com, Inc. (a) | 3,047 | 1,323 | ||||||||||
American Eagle Outfitters, Inc. | 29,604 | 510 | ||||||||||
ANN, Inc. (a) | 5,020 | 242 | ||||||||||
Apollo Education Group, Inc. (a) | 33,975 | 438 | ||||||||||
AutoNation, Inc. (a) | 1,510 | 95 | ||||||||||
AutoZone, Inc. (a) | 299 | 199 | ||||||||||
Barnes & Noble, Inc. (a) | 16,450 | 427 | ||||||||||
Bed Bath & Beyond, Inc. (a) | 12,782 | 882 | ||||||||||
Best Buy Co., Inc. | 24,422 | 796 | ||||||||||
Big Lots, Inc. | 13,325 | 599 | ||||||||||
Bloomin’ Brands, Inc. | 11,098 | 237 | ||||||||||
Bob Evans Farms, Inc. | 3,631 | 185 | ||||||||||
Boyd Gaming Corp. (a) | 7,439 | 111 | ||||||||||
Brinker International, Inc. | 7,130 | 411 | ||||||||||
Burlington Stores, Inc. (a) | 5,250 | 269 | ||||||||||
Cablevision Systems Corp. | 29,472 | 706 | ||||||||||
Caesars Entertainment Corp. (a) | 22,600 | 138 | ||||||||||
Career Education Corp. (a) | 13,271 | 44 | ||||||||||
Carnival Corp. | 9,866 | 487 | ||||||||||
Cash America International, Inc. | 1,843 | 48 | ||||||||||
Cato Corp. | 1,849 | 72 | ||||||||||
CBS Corp. ‘B’ | 4,787 | 266 | ||||||||||
Charter Communications, Inc. ‘A’ (a) | 893 | 153 | ||||||||||
Cheesecake Factory, Inc. | 2,534 | 138 | ||||||||||
Chico’s FAS, Inc. | 5,441 | 90 | ||||||||||
Chipotle Mexican Grill, Inc. (a) | 58 | 35 | ||||||||||
Choice Hotels International, Inc. | 1,317 | 71 |
SHARES | MARKET VALUE (000S) | |||||||||||
Cinemark Holdings, Inc. | 3,754 | $ | 151 | |||||||||
Coach, Inc. | 26,003 | 900 | ||||||||||
Columbia Sportswear Co. | 936 | 57 | ||||||||||
Comcast Corp. ‘A’ | 42,387 | 2,549 | ||||||||||
Cracker Barrel Old Country Store, Inc. | 533 | 79 | ||||||||||
Crocs, Inc. (a) | 3,338 | 49 | ||||||||||
CST Brands, Inc. | 6,491 | 254 | ||||||||||
Dana Holding Corp. | 5,045 | 104 | ||||||||||
Darden Restaurants, Inc. | 1,841 | 131 | ||||||||||
Deckers Outdoor Corp. (a) | 1,579 | 114 | ||||||||||
DeVry Education Group, Inc. | 5,846 | 175 | ||||||||||
Dillard’s, Inc. ‘A’ | 3,157 | 332 | ||||||||||
DIRECTV (a) | 38,559 | 3,578 | ||||||||||
DISH Network Corp. (a) | 1,962 | 133 | ||||||||||
Dollar General Corp. | 1,155 | 90 | ||||||||||
Dollar Tree, Inc. (a) | 3,299 | 261 | ||||||||||
Expedia, Inc. | 2,914 | 319 | ||||||||||
Finish Line, Inc. ‘A’ | 3,578 | 100 | ||||||||||
Foot Locker, Inc. | 6,964 | 467 | ||||||||||
Ford Motor Co. | 27,391 | 411 | ||||||||||
Fossil Group, Inc. (a) | 2,281 | 158 | ||||||||||
GameStop Corp. | 11,755 | 505 | ||||||||||
Gannett Co., Inc. (a) | 3,747 | 52 | ||||||||||
Gap, Inc. | 15,118 | 577 | ||||||||||
General Motors Co. | 11,094 | 370 | ||||||||||
Genesco, Inc. (a) | 3,102 | 205 | ||||||||||
Genuine Parts Co. | 4,587 | 411 | ||||||||||
Goodyear Tire & Rubber Co. | 8,332 | 251 | ||||||||||
Graham Holdings Co. | 484 | 520 | ||||||||||
Guess?, Inc. | 16,059 | 308 | ||||||||||
Hanesbrands, Inc. | 6,997 | 233 | ||||||||||
Harley-Davidson, Inc. | 1,627 | 92 | ||||||||||
Harman International Industries, Inc. | 393 | 47 | ||||||||||
Hasbro, Inc. | 6,543 | 489 | ||||||||||
Home Depot, Inc. | 26,832 | 2,982 | ||||||||||
Houghton Mifflin Harcourt Co. (a) | 4,042 | 102 | ||||||||||
Interpublic Group of Cos., Inc. | 36,675 | 707 | ||||||||||
ITT Educational Services, Inc. (a) | 9,553 | 38 | ||||||||||
Jack in the Box, Inc. | 1,776 | 157 | ||||||||||
JC Penney Co., Inc. (a) | 9,743 | 83 | ||||||||||
John Wiley & Sons, Inc. | 2,144 | 117 | ||||||||||
Johnson Controls, Inc. | 4,505 | 223 | ||||||||||
Kohl’s Corp. | 21,896 | 1,371 | ||||||||||
L Brands, Inc. | 13,391 | 1,148 | ||||||||||
Lear Corp. | 1,857 | 208 | ||||||||||
Leggett & Platt, Inc. | 4,961 | 241 | ||||||||||
Liberty Interactive Corp. ‘A’ (a) | 12,437 | 345 | ||||||||||
Live Nation Entertainment, Inc. (a) | 5,071 | 139 | ||||||||||
Lowe’s Cos., Inc. | 35,679 | 2,389 | ||||||||||
Macy’s, Inc. | 13,182 | 889 | ||||||||||
Marriott International, Inc. ‘A’ | 1,120 | 83 | ||||||||||
Marriott Vacations Worldwide Corp. | 2,439 | 224 | ||||||||||
Mattel, Inc. | 14,528 | 373 | ||||||||||
McDonald’s Corp. | 27,391 | 2,604 | ||||||||||
Men’s Wearhouse, Inc. | 1,271 | 81 | ||||||||||
MGM Resorts International (a) | 10,488 | 191 |
SHARES | MARKET VALUE (000S) | |||||||||||
Murphy USA, Inc. (a) | 4,006 | $ | 224 | |||||||||
New York Times Co. | 5,995 | 82 | ||||||||||
Newell Rubbermaid, Inc. | 4,029 | 166 | ||||||||||
News Corp. ‘A’ (a) | 2,657 | 39 | ||||||||||
Nielsen NV | 2,241 | 100 | ||||||||||
NIKE, Inc. ‘B’ | 10,229 | 1,105 | ||||||||||
Nordstrom, Inc. | 4,749 | 354 | ||||||||||
Norwegian Cruise Line Holdings Ltd. (a) | 1,637 | 92 | ||||||||||
O’Reilly Automotive, Inc. (a) | 1,951 | 441 | ||||||||||
Office Depot, Inc. (a) | 24,554 | 213 | ||||||||||
Omnicom Group, Inc. | 18,269 | 1,270 | ||||||||||
Outerwall, Inc. | 1,262 | 96 | ||||||||||
PACCAR, Inc. | 6,109 | 390 | ||||||||||
Priceline Group, Inc. (a) | 68 | 78 | ||||||||||
Ralph Lauren Corp. | 1,548 | 205 | ||||||||||
Regal Entertainment Group ‘A’ | 9,480 | 198 | ||||||||||
Regis Corp. (a) | 4,319 | 68 | ||||||||||
Rent-A-Center, Inc. | 12,854 | 364 | ||||||||||
Ross Stores, Inc. | 1,839 | 89 | ||||||||||
Royal Caribbean Cruises Ltd. | 6,247 | 492 | ||||||||||
Safeway Casa Ley CVR | 38,866 | 5 | ||||||||||
Safeway PDC LLC CVR | 38,866 | 2 | ||||||||||
Scholastic Corp. | 2,342 | 103 | ||||||||||
Sears Holdings Corp. (a) | 4,387 | 117 | ||||||||||
SeaWorld Entertainment, Inc. | 14,802 | 273 | ||||||||||
Service Corp. International/US | 3,883 | 114 | ||||||||||
Skechers U.S.A., Inc. ‘A’ (a) | 784 | 86 | ||||||||||
Staples, Inc. | 82,679 | 1,266 | ||||||||||
Starbucks Corp. | 7,343 | 394 | ||||||||||
Starwood Hotels & Resorts Worldwide, Inc. | 1,157 | 94 | ||||||||||
Steelcase, Inc. ‘A’ | 8,806 | 167 | ||||||||||
Strayer Education, Inc. (a) | 2,265 | 98 | ||||||||||
Target Corp. | 38,913 | 3,176 | ||||||||||
TEGNA, Inc. | 7,494 | 240 | ||||||||||
Tenneco, Inc. (a) | 1,754 | 101 | ||||||||||
Tiffany & Co. | 1,482 | 136 | ||||||||||
Time Warner Cable, Inc. | 11,278 | 2,009 | ||||||||||
Time Warner, Inc. | 32,866 | 2,873 | ||||||||||
Time, Inc. | 7,544 | 174 | ||||||||||
TJX Cos., Inc. | 7,101 | 470 | ||||||||||
Tribune Media Co. ‘A’ | 1,663 | 89 | ||||||||||
Tupperware Brands Corp. | 882 | 57 | ||||||||||
Twenty-First Century Fox, Inc. | 5,832 | 190 | ||||||||||
Urban Outfitters, Inc. (a) | 2,451 | 86 | ||||||||||
VF Corp. | 3,943 | 275 | ||||||||||
Viacom, Inc. | 15,224 | 984 | ||||||||||
Visteon Corp. (a) | 1,032 | 108 | ||||||||||
Walt Disney Co. | 16,869 | 1,925 | ||||||||||
Weight Watchers International, Inc. (a) | 7,674 | 37 | ||||||||||
Wendy’s Co. | 8,680 | 98 | ||||||||||
West Corp. | 1,263 | 38 | ||||||||||
Whirlpool Corp. | 1,627 | 282 | ||||||||||
Williams-Sonoma, Inc. | 1,121 | 92 | ||||||||||
Wyndham Worldwide Corp. | 3,278 | 268 |
44 | PIMCO EQUITY SERIES | See Accompanying Notes |
Table of Contents
June 30, 2015
SHARES | MARKET VALUE (000S) | |||||||||||
Wynn Resorts Ltd. | 2,896 | $ | 286 | |||||||||
Yum! Brands, Inc. | 6,252 | 563 | ||||||||||
|
| |||||||||||
62,586 | ||||||||||||
|
| |||||||||||
CONSUMER STAPLES 10.1% | ||||||||||||
Altria Group, Inc. | 54,720 | 2,676 | ||||||||||
Archer-Daniels-Midland Co. | 6,921 | 334 | ||||||||||
Automatic Data Processing, Inc. | 11,581 | 929 | ||||||||||
Avon Products, Inc. | 33,219 | 208 | ||||||||||
Booz Allen Hamilton Holding Corp. | 9,655 | 244 | ||||||||||
Brown-Forman Corp. | 475 | 48 | ||||||||||
Bunge Ltd. | 3,586 | 315 | ||||||||||
Campbell Soup Co. | 5,374 | 256 | ||||||||||
Clorox Co. | 2,085 | 217 | ||||||||||
Coca-Cola Co. | 72,430 | 2,841 | ||||||||||
Coca-Cola Enterprises, Inc. | 9,425 | 409 | ||||||||||
Colgate-Palmolive Co. | 14,892 | 974 | ||||||||||
ConAgra Foods, Inc. | 12,564 | 549 | ||||||||||
Costco Wholesale Corp. | 4,603 | 622 | ||||||||||
CVS Caremark Corp. | 24,144 | 2,532 | ||||||||||
Dr Pepper Snapple Group, Inc. | 11,898 | 867 | ||||||||||
Edgewell Personal Care Co. | 1,483 | 195 | ||||||||||
Estee Lauder Cos., Inc. ‘A’ | 1,140 | 99 | ||||||||||
Euronet Worldwide, Inc. (a) | 1,888 | 116 | ||||||||||
General Mills, Inc. | 12,297 | 685 | ||||||||||
Global Payments, Inc. | 1,110 | 115 | ||||||||||
Herbalife Ltd. (a) | 9,703 | 535 | ||||||||||
HRG Group, Inc. (a) | 5,898 | 77 | ||||||||||
Ingredion, Inc. | 1,223 | 98 | ||||||||||
JM Smucker Co. | 2,709 | 294 | ||||||||||
Kellogg Co. | 6,398 | 401 | ||||||||||
Kimberly-Clark Corp. | 1,871 | 198 | ||||||||||
Kraft Foods Group, Inc. | 7,649 | 651 | ||||||||||
Kroger Co. | 34,004 | 2,466 | ||||||||||
Mastercard, Inc. ‘A’ | 8,737 | 817 | ||||||||||
Molson Coors Brewing Co. | 1,261 | 88 | ||||||||||
Mondelez International, Inc. | 35,097 | 1,444 | ||||||||||
Monster Beverage Corp. (a) | 2,104 | 282 | ||||||||||
Monster Worldwide, Inc. (a) | 15,685 | 103 | ||||||||||
Nu Skin Enterprises, Inc. | 630 | 30 | ||||||||||
PepsiCo, Inc. | 36,503 | 3,407 | ||||||||||
Philip Morris International, Inc. | 43,460 | 3,484 | ||||||||||
Procter & Gamble Co. | 65,914 | 5,157 | ||||||||||
Reynolds American, Inc. | 18,280 | 1,365 | ||||||||||
Rite Aid Corp. (a) | 83,006 | 693 | ||||||||||
SUPERVALU, Inc. (a) | 28,236 | 228 | ||||||||||
Sysco Corp. | 30,179 | 1,089 | ||||||||||
Universal Corp. | 2,866 | 164 | ||||||||||
Wal-Mart Stores, Inc. | 57,616 | 4,087 | ||||||||||
Walgreens Boots Alliance, Inc. | 20,470 | 1,728 | ||||||||||
Western Union Co. | 44,791 | 911 | ||||||||||
|
| |||||||||||
45,028 | ||||||||||||
|
| |||||||||||
ENERGY 9.4% | ||||||||||||
Alpha Natural Resources, Inc. (a) | 12,636 | 4 | ||||||||||
Anadarko Petroleum Corp. | 5,106 | 399 |
SHARES | MARKET VALUE (000S) | |||||||||||
Apache Corp. | 9,583 | $ | 552 | |||||||||
Baker Hughes, Inc. | 9,736 | 601 | ||||||||||
Basic Energy Services, Inc. (a) | 5,277 | 40 | ||||||||||
Bill Barrett Corp. (a) | 7,734 | 66 | ||||||||||
California Resources Corp. | 89,056 | 538 | ||||||||||
Cameron International Corp. (a) | 4,240 | 222 | ||||||||||
Chesapeake Energy Corp. | 55,560 | 621 | ||||||||||
Chevron Corp. | 87,911 | 8,481 | ||||||||||
Cimarex Energy Co. | 962 | 106 | ||||||||||
Cloud Peak Energy, Inc. (a) | 8,416 | 39 | ||||||||||
Comstock Resources, Inc. | 1,963 | 7 | ||||||||||
ConocoPhillips | 73,313 | �� 4,502 | ||||||||||
CONSOL Energy, Inc. | 1,233 | 27 | ||||||||||
Denbury Resources, Inc. | 7,690 | 49 | ||||||||||
Devon Energy Corp. | 13,763 | 819 | ||||||||||
Diamond Offshore Drilling, Inc. | 9,277 | 239 | ||||||||||
Dresser-Rand Group, Inc. (a) | 520 | 44 | ||||||||||
Energen Corp. | 2,472 | 169 | ||||||||||
Energy Ltd. | 26,866 | 71 | ||||||||||
EOG Resources, Inc. | 5,001 | 438 | ||||||||||
Exterran Holdings, Inc. | 2,309 | 75 | ||||||||||
Exxon Mobil Corp. | 139,137 | 11,576 | ||||||||||
First Solar, Inc. (a) | 2,635 | 124 | ||||||||||
Halliburton Co. | 8,017 | 345 | ||||||||||
Helmerich & Payne, Inc. | 1,469 | 103 | ||||||||||
Hess Corp. | 11,575 | 774 | ||||||||||
HollyFrontier Corp. | 12,638 | 539 | ||||||||||
Key Energy Services, Inc. (a) | 6,526 | 12 | ||||||||||
Kinder Morgan, Inc. | 998 | 38 | ||||||||||
LinnCo LLC | 13,419 | 127 | ||||||||||
Marathon Oil Corp. | 47,479 | 1,260 | ||||||||||
Marathon Petroleum Corp. | 11,084 | 580 | ||||||||||
McDermott International, Inc. (a) | 36,509 | 195 | ||||||||||
Murphy Oil Corp. | 15,146 | 630 | ||||||||||
National Oilwell Varco, Inc. | 9,699 | 468 | ||||||||||
Newfield Exploration Co. (a) | 18,234 | 659 | ||||||||||
Noble Energy, Inc. | 1,413 | 60 | ||||||||||
Occidental Petroleum Corp. | 21,516 | 1,673 | ||||||||||
Parker Drilling Co. (a) | 14,034 | 47 | ||||||||||
Patterson-UTI Energy, Inc. | 8,500 | 160 | ||||||||||
Peabody Energy Corp. | 14,227 | 31 | ||||||||||
Penn Virginia Corp. (a) | 15,269 | 67 | ||||||||||
Phillips 66 | 2,873 | 231 | ||||||||||
Pioneer Energy Services Corp. (a) | 8,624 | 55 | ||||||||||
QEP Resources, Inc. | 4,617 | 85 | ||||||||||
Quicksilver Resources, Inc. (a) | 16,978 | 0 | ||||||||||
Rowan Cos. PLC | 3,968 | 84 | ||||||||||
Sabine Oil & Gas Corp. (a) | 22,047 | 2 | ||||||||||
SandRidge Energy, Inc. (a) | 21,149 | 19 | ||||||||||
Schlumberger Ltd. | 17,992 | 1,551 | ||||||||||
SEACOR Holdings, Inc. (a) | 4,339 | 308 | ||||||||||
Seventy Seven Energy, Inc. (a) | 15,437 | 66 | ||||||||||
Southwestern Energy Co. (a) | 2,167 | 49 | ||||||||||
Spectra Energy Corp. | 1,827 | 60 | ||||||||||
Stone Energy Corp. (a) | 15,466 | 195 | ||||||||||
SunEdison, Inc. (a) | 2,111 | 63 |
SHARES | MARKET VALUE (000S) | |||||||||||
Swift Energy Co. (a) | 3,881 | $ | 8 | |||||||||
Tesoro Corp. | 4,302 | 363 | ||||||||||
Unit Corp. (a) | 2,829 | 77 | ||||||||||
VAALCO Energy, Inc. (a) | 10,235 | 22 | ||||||||||
Valero Energy Corp. | 12,482 | 781 | ||||||||||
Whiting Petroleum Corp. (a) | 5,817 | 195 | ||||||||||
Williams Cos., Inc. | 1,822 | 105 | ||||||||||
WPX Energy, Inc. (a) | 31,704 | 389 | ||||||||||
|
| |||||||||||
42,285 | ||||||||||||
|
| |||||||||||
FINANCIALS 11.6% | ||||||||||||
Aflac, Inc. | 4,347 | 270 | ||||||||||
Aircastle Ltd. | 2,042 | 46 | ||||||||||
Allstate Corp. | 12,457 | 808 | ||||||||||
Ally Financial, Inc. (a) | 10,751 | 241 | ||||||||||
American Equity Investment Life Holding Co. | 7,502 | 202 | ||||||||||
American Express Co. | 11,093 | 862 | ||||||||||
American Financial Group, Inc. | 4,811 | 313 | ||||||||||
American International Group, Inc. | 29,711 | 1,837 | ||||||||||
Ameriprise Financial, Inc. | 2,488 | 311 | ||||||||||
Assurant, Inc. | 4,862 | 326 | ||||||||||
Bank of America Corp. | 287,792 | 4,898 | ||||||||||
Bank of Hawaii Corp. | 798 | 53 | ||||||||||
Bank of New York Mellon Corp. | 27,594 | 1,158 | ||||||||||
BB&T Corp. | 15,103 | 609 | ||||||||||
Berkshire Hathaway, Inc. ‘B’ (a) | 11,732 | 1,597 | ||||||||||
BlackRock, Inc. | 690 | 239 | ||||||||||
Capital One Financial Corp. | 22,942 | 2,018 | ||||||||||
Chubb Corp. | 8,830 | 840 | ||||||||||
Cincinnati Financial Corp. | 2,577 | 129 | ||||||||||
Citigroup, Inc. | 52,129 | 2,880 | ||||||||||
CME Group, Inc. | 4,783 | 445 | ||||||||||
CNO Financial Group, Inc. | 5,568 | 102 | ||||||||||
Comerica, Inc. | 2,219 | 114 | ||||||||||
CoreLogic, Inc. (a) | 2,305 | 91 | ||||||||||
Discover Financial Services | 7,679 | 442 | ||||||||||
E*TRADE Financial Corp. (a) | 12,838 | 385 | ||||||||||
Federated Investors, Inc. ‘B’ | 1,950 | 65 | ||||||||||
Fifth Third Bancorp | 13,582 | 283 | ||||||||||
First Niagara Financial Group, Inc. | 5,045 | 48 | ||||||||||
Franklin Resources, Inc. | 2,575 | 126 | ||||||||||
Genworth Financial, Inc. ‘A’ (a) | 11,610 | 88 | ||||||||||
Goldman Sachs Group, Inc. | 6,912 | 1,443 | ||||||||||
Hanover Insurance Group, Inc. | 2,349 | 174 | ||||||||||
Hartford Financial Services Group, Inc. | 15,331 | 637 | ||||||||||
HCC Insurance Holdings, Inc. | 3,247 | 250 | ||||||||||
Hudson City Bancorp, Inc. | 17,816 | 176 | ||||||||||
Huntington Bancshares, Inc. | 14,062 | 159 | ||||||||||
Interactive Brokers Group, Inc. ‘A’ | 6,325 | 263 | ||||||||||
JPMorgan Chase & Co. | 109,633 | 7,429 | ||||||||||
Kemper Corp. | 3,036 | 117 | ||||||||||
KeyCorp | 18,854 | 283 | ||||||||||
Legg Mason, Inc. | 7,053 | 363 | ||||||||||
Lincoln National Corp. | 3,888 | 230 | ||||||||||
Loews Corp. | 5,000 | 193 |
See Accompanying Notes | ANNUAL REPORT | JUNE 30, 2015 | 45 |
Table of Contents
Schedule of Investments PIMCO RAE Fundamental US Fund (Cont.)
SHARES | MARKET VALUE (000S) | |||||||||||
M&T Bank Corp. | 1,094 | $ | 137 | |||||||||
McGraw Hill Financial, Inc. | 6,609 | 664 | ||||||||||
MetLife, Inc. | 9,851 | 552 | ||||||||||
Morgan Stanley | 7,087 | 275 | ||||||||||
NASDAQ OMX Group, Inc. | 5,820 | 284 | ||||||||||
New York Community Bancorp, Inc. | 9,726 | 179 | ||||||||||
Northern Trust Corp. | 2,740 | 210 | ||||||||||
People’s United Financial, Inc. | 16,411 | 266 | ||||||||||
PHH Corp. (a) | 15,119 | 394 | ||||||||||
PNC Financial Services Group, Inc. | 10,873 | 1,040 | ||||||||||
Primerica, Inc. | 3,250 | 149 | ||||||||||
Principal Financial Group, Inc. | 2,891 | 148 | ||||||||||
Progressive Corp. | 11,435 | 318 | ||||||||||
Prudential Financial, Inc. | 4,280 | 375 | ||||||||||
Raymond James Financial, Inc. | 1,633 | 97 | ||||||||||
Regions Financial Corp. | 34,949 | 362 | ||||||||||
Reinsurance Group of America, Inc. | 2,774 | 263 | ||||||||||
RLI Corp. | 1,968 | 101 | ||||||||||
Santander Consumer USA Holdings, Inc. | 6,218 | 159 | ||||||||||
SLM Corp. (a) | 39,086 | 386 | ||||||||||
Springleaf Holdings, Inc. (a) | 1,878 | 86 | ||||||||||
StanCorp Financial Group, Inc. | 2,411 | 182 | ||||||||||
State Street Corp. | 6,539 | 504 | ||||||||||
SunTrust Banks, Inc. | 18,037 | 776 | ||||||||||
Symetra Financial Corp. | 7,645 | 185 | ||||||||||
Synchrony Financial (a) | 2,709 | 89 | ||||||||||
TCF Financial Corp. | 4,184 | 70 | ||||||||||
Torchmark Corp. | 2,041 | 119 | ||||||||||
Travelers Cos., Inc. | 23,855 | 2,306 | ||||||||||
U.S. Bancorp | 9,043 | 392 | ||||||||||
Unum Group | 13,101 | 468 | ||||||||||
Visa, Inc. ‘A’ | 22,178 | 1,489 | ||||||||||
Voya Financial, Inc. | 9,067 | 421 | ||||||||||
Wells Fargo & Co. | 82,066 | 4,615 | ||||||||||
WR Berkley Corp. | 2,944 | 153 | ||||||||||
Zions BanCorp. | 2,626 | 83 | ||||||||||
|
| |||||||||||
51,840 | ||||||||||||
|
| |||||||||||
HEALTH CARE 12.8% | ||||||||||||
Abbott Laboratories | 17,765 | 872 | ||||||||||
AbbVie, Inc. | 22,369 | 1,503 | ||||||||||
Aetna, Inc. | 14,803 | 1,887 | ||||||||||
Alere, Inc. (a) | 4,960 | 262 | ||||||||||
Alexion Pharmaceuticals, Inc. (a) | 766 | 138 | ||||||||||
AmerisourceBergen Corp. | 2,628 | 279 | ||||||||||
Amgen, Inc. | 18,122 | 2,782 | ||||||||||
Anthem, Inc. | 22,264 | 3,654 | ||||||||||
Baxter International, Inc. | 15,599 | 1,091 | ||||||||||
Becton Dickinson and Co. | 6,355 | 900 | ||||||||||
Bio-Rad Laboratories, Inc. (a) | 1,540 | 232 | ||||||||||
Biogen, Inc. (a) | 2,190 | 885 | ||||||||||
Boston Scientific Corp. (a) | 47,438 | 840 | ||||||||||
Bristol-Myers Squibb Co. | 41,165 | 2,739 | ||||||||||
Cardinal Health, Inc. | 6,607 | 553 | ||||||||||
Celgene Corp. (a) | 9,552 | 1,106 |
SHARES | MARKET VALUE (000S) | |||||||||||
Centene Corp. (a) | 3,862 | $ | 311 | |||||||||
Charles River Laboratories International, Inc. (a) | 795 | 56 | ||||||||||
Cigna Corp. | 4,039 | 654 | ||||||||||
Community Health Systems, Inc. (a) | 14,499 | 913 | ||||||||||
CR Bard, Inc. | 1,362 | 233 | ||||||||||
Danaher Corp. | 2,911 | 249 | ||||||||||
DaVita HealthCare Partners, Inc. (a) | 1,467 | 117 | ||||||||||
Edwards Lifesciences Corp. (a) | 1,418 | 202 | ||||||||||
Eli Lilly & Co. | 31,563 | 2,635 | ||||||||||
Envision Healthcare Holdings, Inc. (a) | 3,625 | 143 | ||||||||||
Express Scripts Holding Co. (a) | 4,211 | 375 | ||||||||||
Gilead Sciences, Inc. | 15,925 | 1,865 | ||||||||||
Halyard Health, Inc. (a) | 2,104 | 85 | ||||||||||
HCA Holdings, Inc. (a) | 37,909 | 3,439 | ||||||||||
Health Net, Inc. (a) | 12,828 | 823 | ||||||||||
HealthSouth Corp. | 3,771 | 174 | ||||||||||
Henry Schein, Inc. (a) | 1,065 | 151 | ||||||||||
Hologic, Inc. (a) | 2,318 | 88 | ||||||||||
Hospira, Inc. (a) | 6,011 | 533 | ||||||||||
Humana, Inc. | 6,000 | 1,148 | ||||||||||
Invacare Corp. | 3,125 | 68 | ||||||||||
Johnson & Johnson | 54,754 | 5,336 | ||||||||||
Kindred Healthcare, Inc. | 14,288 | 290 | ||||||||||
Laboratory Corp. of America Holdings (a) | 693 | 84 | ||||||||||
LifePoint Hospitals, Inc. (a) | 4,674 | 406 | ||||||||||
Magellan Health, Inc. (a) | 1,689 | 118 | ||||||||||
Mallinckrodt PLC (a) | 4,625 | 544 | ||||||||||
Masimo Corp. (a) | 2,761 | 107 | ||||||||||
McKesson Corp. | 4,537 | 1,020 | ||||||||||
Merck & Co., Inc. | 46,482 | 2,646 | ||||||||||
Mylan NV (a) | 1,778 | 121 | ||||||||||
Omnicare, Inc. | 3,866 | 364 | ||||||||||
Owens & Minor, Inc. | 2,844 | 97 | ||||||||||
Pfizer, Inc. | 151,697 | 5,086 | ||||||||||
Quest Diagnostics, Inc. | 12,233 | 887 | ||||||||||
Regeneron Pharmaceuticals, Inc. (a) | 180 | 92 | ||||||||||
St Jude Medical, Inc. | 6,261 | 457 | ||||||||||
STERIS Corp. | 1,628 | 105 | ||||||||||
Stryker Corp. | 3,979 | 380 | ||||||||||
Tenet Healthcare Corp. (a) | 9,975 | 577 | ||||||||||
United Therapeutics Corp. (a) | 482 | 84 | ||||||||||
UnitedHealth Group, Inc. | 26,928 | 3,285 | ||||||||||
Universal Health Services, Inc. | 1,591 | 226 | ||||||||||
Valeant Pharmaceuticals International, Inc. (a) | 384 | 85 | ||||||||||
VCA, Inc. (a) | 1,781 | 97 | ||||||||||
WellCare Health Plans, Inc. (a) | 4,141 | 351 | ||||||||||
Zimmer Biomet Holdings, Inc. | 2,634 | 288 | ||||||||||
Zoetis, Inc. | 4,578 | 221 | ||||||||||
|
| |||||||||||
57,339 | ||||||||||||
|
| |||||||||||
INDUSTRIALS 8.2% | ||||||||||||
3M Co. | 13,874 | 2,141 | ||||||||||
ADT Corp. | 7,087 | 238 | ||||||||||
AECOM (a) | 3,245 | 107 |
SHARES | MARKET VALUE (000S) | |||||||||||
AGCO Corp. | 6,176 | $ | 351 | |||||||||
Agilent Technologies, Inc. | 4,584 | 177 | ||||||||||
Alaska Air Group, Inc. | 2,691 | 173 | ||||||||||
American Airlines Group, Inc. | 6,961 | 278 | ||||||||||
Atlas Air Worldwide Holdings, Inc. (a) | 846 | 47 | ||||||||||
Avis Budget Group, Inc. (a) | 12,044 | 531 | ||||||||||
Boeing Co. | 4,775 | 662 | ||||||||||
Brady Corp. ‘A’ | 1,525 | 38 | ||||||||||
Brink’s Co. | 1,604 | 47 | ||||||||||
Caterpillar, Inc. | 20,527 | 1,741 | ||||||||||
CH Robinson Worldwide, Inc. | 2,019 | 126 | ||||||||||
Cintas Corp. | 1,241 | 105 | ||||||||||
Civeo Corp. | 22,642 | 70 | ||||||||||
Covanta Holding Corp. | 4,527 | 96 | ||||||||||
Crane Co. | 1,539 | 90 | ||||||||||
CSX Corp. | 32,698 | 1,068 | ||||||||||
Cummins, Inc. | 2,929 | 384 | ||||||||||
Deere & Co. | 16,513 | 1,603 | ||||||||||
Delta Air Lines, Inc. | 5,265 | 216 | ||||||||||
Deluxe Corp. | 1,877 | 116 | ||||||||||
Dover Corp. | 3,261 | 229 | ||||||||||
Emerson Electric Co. | 23,528 | 1,304 | ||||||||||
Expeditors International of Washington, Inc. | 1,652 | 76 | ||||||||||
FedEx Corp. | 3,855 | 657 | ||||||||||
Flowserve Corp. | 1,655 | 87 | ||||||||||
Fluor Corp. | 2,983 | 158 | ||||||||||
FTI Consulting, Inc. (a) | 4,377 | 181 | ||||||||||
GATX Corp. | 1,589 | 85 | ||||||||||
General Cable Corp. | 2,643 | 52 | ||||||||||
General Dynamics Corp. | 9,137 | 1,295 | ||||||||||
General Electric Co. | 135,913 | 3,611 | ||||||||||
H&E Equipment Services, Inc. | 1,364 | 27 | ||||||||||
Harsco Corp. | 8,829 | 146 | ||||||||||
HD Supply Holdings, Inc. (a) | 2,680 | 94 | ||||||||||
Hertz Global Holdings, Inc. (a) | 4,515 | 82 | ||||||||||
Honeywell International, Inc. | 8,185 | 835 | ||||||||||
Illinois Tool Works, Inc. | 10,059 | 923 | ||||||||||
Ingersoll-Rand PLC | 6,911 | 466 | ||||||||||
Jacobs Engineering Group, Inc. (a) | 2,542 | 103 | ||||||||||
JetBlue Airways Corp. (a) | 29,229 | 607 | ||||||||||
Joy Global, Inc. | 2,211 | 80 | ||||||||||
KBR, Inc. | 13,319 | 259 | ||||||||||
Kennametal, Inc. | 2,586 | 88 | ||||||||||
Korn/Ferry International | 3,971 | 138 | ||||||||||
L-3 Communications Holdings, Inc. | 4,520 | 513 | ||||||||||
Lockheed Martin Corp. | 7,854 | 1,460 | ||||||||||
ManpowerGroup, Inc. | 3,417 | 305 | ||||||||||
Norfolk Southern Corp. | 7,108 | 621 | ||||||||||
Northrop Grumman Corp. | 11,901 | 1,888 | ||||||||||
Orbital ATK, Inc. | 1,578 | 116 | ||||||||||
Oshkosh Corp. | 1,429 | 61 | ||||||||||
Parker-Hannifin Corp. | 3,566 | 415 | ||||||||||
Raytheon Co. | 12,593 | 1,205 | ||||||||||
Republic Airways Holdings, Inc. (a) | 12,598 | 116 | ||||||||||
Republic Services, Inc. | 8,319 | 326 |
46 | PIMCO EQUITY SERIES | See Accompanying Notes |
Table of Contents
June 30, 2015
SHARES | MARKET VALUE (000S) | |||||||||||
Robert Half International, Inc. | 1,626 | $ | 90 | |||||||||
Rockwell Collins, Inc. | 2,918 | 270 | ||||||||||
RR Donnelley & Sons Co. | 31,816 | 555 | ||||||||||
Ryder System, Inc. | 4,252 | 372 | ||||||||||
SkyWest, Inc. | 11,190 | 168 | ||||||||||
Southwest Airlines Co. | 7,898 | 261 | ||||||||||
Spirit AeroSystems Holdings, Inc. ‘A’ (a) | 1,504 | 83 | ||||||||||
SPX Corp. | 3,667 | 265 | ||||||||||
Stanley Black & Decker, Inc. | 1,391 | 146 | ||||||||||
Terex Corp. | 1,678 | 39 | ||||||||||
Textron, Inc. | 4,776 | 213 | ||||||||||
Thermo Fisher Scientific, Inc. | 1,658 | 215 | ||||||||||
Tidewater, Inc. | 4,280 | 97 | ||||||||||
Timken Co. | 1,666 | 61 | ||||||||||
Towers Watson & Co. ‘A’ | 1,654 | 208 | ||||||||||
Tutor Perini Corp. (a) | 4,318 | 93 | ||||||||||
Tyco International PLC | 3,673 | 141 | ||||||||||
Union Pacific Corp. | 16,542 | 1,578 | ||||||||||
United Continental Holdings, Inc. (a) | 4,963 | 263 | ||||||||||
United Parcel Service, Inc. ‘B’ | 5,442 | 527 | ||||||||||
United Rentals, Inc. (a) | 642 | 56 | ||||||||||
United Technologies Corp. | 12,089 | 1,341 | ||||||||||
Waste Management, Inc. | 17,740 | 822 | ||||||||||
|
| |||||||||||
36,878 | ||||||||||||
|
| |||||||||||
INFORMATION TECHNOLOGY 18.2% | ||||||||||||
Activision Blizzard, Inc. | 37,515 | 908 | ||||||||||
Adobe Systems, Inc. (a) | 1,102 | 89 | ||||||||||
Advanced Micro Devices, Inc. (a) | 24,588 | 59 | ||||||||||
Altera Corp. | 2,608 | 134 | ||||||||||
Amdocs Ltd. | 5,211 | 285 | ||||||||||
Amkor Technology, Inc. (a) | 11,218 | 67 | ||||||||||
Analog Devices, Inc. | 2,791 | 179 | ||||||||||
Anixter International, Inc. (a) | 3,062 | 200 | ||||||||||
Apple, Inc. | 82,010 | 10,286 | ||||||||||
Applied Materials, Inc. | 31,371 | 603 | ||||||||||
Arrow Electronics, Inc. (a) | 11,734 | 655 | ||||||||||
Atmel Corp. | 9,937 | 98 | ||||||||||
Autodesk, Inc. (a) | 2,998 | 150 | ||||||||||
Avnet, Inc. | 17,586 | 723 | ||||||||||
Benchmark Electronics, Inc. (a) | 4,748 | 103 | ||||||||||
Broadcom Corp. ‘A’ | 8,642 | 445 | ||||||||||
Broadridge Financial Solutions, Inc. | 2,109 | 106 | ||||||||||
Brocade Communications Systems, Inc. | 36,744 | 437 | ||||||||||
CA, Inc. | 22,430 | 657 | ||||||||||
Cabot Microelectronics Corp. (a) | 1,461 | 69 | ||||||||||
CACI International, Inc. ‘A’ (a) | 2,491 | 202 | ||||||||||
CDW Corp. | 1,196 | 41 | ||||||||||
Cisco Systems, Inc. | 172,212 | 4,729 | ||||||||||
Cognizant Technology Solutions Corp. (a) | 1,568 | 96 | ||||||||||
Computer Sciences Corp. | 8,414 | 552 | ||||||||||
Comtech Telecommunications Corp. | 2,124 | 62 | ||||||||||
Convergys Corp. | 7,836 | 200 |
SHARES | MARKET VALUE (000S) | |||||||||||
Corning, Inc. | 67,455 | $ | 1,331 | |||||||||
Cypress Semiconductor Corp. | 7,668 | 90 | ||||||||||
Diebold, Inc. | 9,093 | 318 | ||||||||||
Dun & Bradstreet Corp. | 2,233 | 272 | ||||||||||
EarthLink Holdings Corp. | 10,622 | 80 | ||||||||||
eBay, Inc. (a) | 8,333 | 502 | ||||||||||
EchoStar Corp. (a) | 1,835 | 89 | ||||||||||
Electronic Arts, Inc. (a) | 9,344 | 621 | ||||||||||
EMC Corp. | 54,021 | 1,426 | ||||||||||
F5 Networks, Inc. (a) | 326 | 39 | ||||||||||
Facebook, Inc. (a) | 1,099 | 94 | ||||||||||
Fairchild Semiconductor International, Inc. (a) | 7,991 | 139 | ||||||||||
Fidelity National Information Services, Inc. | 2,135 | 132 | ||||||||||
Fiserv, Inc. (a) | 1,192 | 99 | ||||||||||
Flextronics International Ltd. (a) | 43,073 | 487 | ||||||||||
Freescale Semiconductor Ltd. (a) | 2,725 | 109 | ||||||||||
Google, Inc. ‘A’ (a) | 1,782 | 962 | ||||||||||
Google, Inc. ‘C’ (a) | 3,692 | 1,922 | ||||||||||
Harris Corp. | 11,234 | 864 | ||||||||||
Hewlett-Packard Co. | 198,794 | 5,966 | ||||||||||
Ingram Micro, Inc. ‘A’ (a) | 15,274 | 382 | ||||||||||
Insight Enterprises, Inc. (a) | 4,701 | 141 | ||||||||||
Intel Corp. | 286,111 | 8,702 | ||||||||||
InterActiveCorp | 5,281 | 421 | ||||||||||
InterDigital, Inc. | 760 | 43 | ||||||||||
International Business Machines Corp. | 58,063 | 9,445 | ||||||||||
Intersil Corp. | 18,006 | 225 | ||||||||||
Intuit, Inc. | 1,800 | 181 | ||||||||||
Itron, Inc. (a) | 3,678 | 127 | ||||||||||
Jabil Circuit, Inc. | 17,106 | 364 | ||||||||||
Juniper Networks, Inc. | 36,344 | 944 | ||||||||||
KLA-Tencor Corp. | 3,887 | 219 | ||||||||||
Lam Research Corp. | 1,025 | 83 | ||||||||||
Leidos Holdings, Inc. | 3,738 | 151 | ||||||||||
Lexmark International, Inc. | 15,106 | 668 | ||||||||||
Maxim Integrated Products, Inc. | 13,892 | 480 | ||||||||||
Micron Technology, Inc. (a) | 10,268 | 193 | ||||||||||
Microsoft Corp. | 184,359 | 8,139 | ||||||||||
MicroStrategy, Inc. ‘A’ (a) | 253 | 43 | ||||||||||
Motorola Solutions, Inc. | 7,303 | 419 | ||||||||||
NCR Corp. (a) | 1,710 | 52 | ||||||||||
NetApp, Inc. | 10,640 | 336 | ||||||||||
NeuStar, Inc. (a) | 6,263 | 183 | ||||||||||
NVIDIA Corp. | 4,243 | 85 | ||||||||||
OmniVision Technologies, Inc. (a) | 1,887 | 49 | ||||||||||
ON Semiconductor Corp. (a) | 23,347 | 273 | ||||||||||
Oracle Corp. | 74,792 | 3,014 | ||||||||||
Paychex, Inc. | 2,842 | 133 | ||||||||||
Pitney Bowes, Inc. | 37,701 | 785 | ||||||||||
PMC-Sierra, Inc. (a) | 7,364 | 63 | ||||||||||
Polycom, Inc. (a) | 27,213 | 311 | ||||||||||
Progress Software Corp. (a) | 3,370 | 93 | ||||||||||
PTC, Inc. (a) | 1,137 | 47 | ||||||||||
QLogic Corp. (a) | 12,355 | 175 |
SHARES | MARKET VALUE (000S) | |||||||||||
Qorvo, Inc. (a) | 726 | $ | 58 | |||||||||
QUALCOMM, Inc. | 10,042 | 629 | ||||||||||
SanDisk Corp. | 2,156 | 126 | ||||||||||
Sanmina Corp. (a) | 5,164 | 104 | ||||||||||
Seagate Technology PLC | 7,485 | 356 | ||||||||||
Skyworks Solutions, Inc. | 1,588 | 165 | ||||||||||
Symantec Corp. | 37,883 | 881 | ||||||||||
SYNNEX Corp. | 2,285 | 167 | ||||||||||
Synopsys, Inc. (a) | 2,725 | 138 | ||||||||||
Take-Two Interactive Software, Inc. (a) | 5,961 | 164 | ||||||||||
Tech Data Corp. (a) | 7,439 | 428 | ||||||||||
Teradata Corp. (a) | 2,334 | 86 | ||||||||||
Teradyne, Inc. | 5,069 | 98 | ||||||||||
Texas Instruments, Inc. | 30,074 | 1,549 | ||||||||||
Unisys Corp. (a) | 14,238 | 285 | ||||||||||
United Online, Inc. (a) | 9,279 | 145 | ||||||||||
Veeco Instruments, Inc. (a) | 1,219 | 35 | ||||||||||
Vishay Intertechnology, Inc. | 21,165 | 247 | ||||||||||
WebMD Health Corp. (a) | 2,245 | 99 | ||||||||||
Western Digital Corp. | 2,845 | 223 | ||||||||||
Xerox Corp. | 61,854 | 658 | ||||||||||
Xilinx, Inc. | 1,842 | 81 | ||||||||||
Yahoo!, Inc. (a) | 3,484 | 137 | ||||||||||
|
| |||||||||||
81,505 | ||||||||||||
|
| |||||||||||
MATERIALS 3.0% | ||||||||||||
A Schulman, Inc. | 1,771 | 77 | ||||||||||
Air Products & Chemicals, Inc. | 4,317 | 591 | ||||||||||
Airgas, Inc. | 1,058 | 112 | ||||||||||
AK Steel Holding Corp. (a) | 11,029 | 43 | ||||||||||
Albemarle Corp. | 1,087 | 60 | ||||||||||
Alcoa, Inc. | 75,127 | 838 | ||||||||||
Allegheny Technologies, Inc. | 3,516 | 106 | ||||||||||
Armstrong World Industries, Inc. (a) | 6,570 | 350 | ||||||||||
Ashland, Inc. | 1,391 | 170 | ||||||||||
Avery Dennison Corp. | 843 | 51 | ||||||||||
Ball Corp. | 4,050 | 284 | ||||||||||
Bemis Co., Inc. | 4,235 | 191 | ||||||||||
Celanese Corp. | 884 | 64 | ||||||||||
CF Industries Holdings, Inc. | 11,220 | 721 | ||||||||||
Chemtura Corp. (a) | 2,149 | 61 | ||||||||||
Cliffs Natural Resources, Inc. | 10,985 | 48 | ||||||||||
Coeur Mining, Inc. (a) | 24,003 | 137 | ||||||||||
Commercial Metals Co. | 10,727 | 172 | ||||||||||
Cytec Industries, Inc. | 1,682 | 102 | ||||||||||
Dow Chemical Co. | 20,360 | 1,042 | ||||||||||
E.I. du Pont de Nemours & Co. | 14,779 | 945 | ||||||||||
Ecolab, Inc. | 407 | 46 | ||||||||||
Freeport-McMoRan, Inc. | 68,792 | 1,281 | ||||||||||
Graphic Packaging Holding Co. | 5,521 | 77 | ||||||||||
Huntsman Corp. | 5,814 | 128 | ||||||||||
International Paper Co. | 6,923 | 329 | ||||||||||
Kraton Performance Polymers, Inc. (a) | 1,976 | 47 | ||||||||||
LyondellBasell Industries NV ‘A’ | 4,744 | 491 | ||||||||||
Masco Corp. | 2,867 | 76 |
See Accompanying Notes | ANNUAL REPORT | JUNE 30, 2015 | 47 |
Table of Contents
Schedule of Investments PIMCO RAE Fundamental US Fund (Cont.)
SHARES | MARKET VALUE (000S) | |||||||||||
MeadWestvaco Corp. | 5,893 | $ | 278 | |||||||||
Monsanto Co. | 6,706 | 715 | ||||||||||
Mosaic Co. | 18,562 | 870 | ||||||||||
Newmont Mining Corp. | 44,802 | 1,047 | ||||||||||
OM Group, Inc. | 1,403 | 47 | ||||||||||
Owens Corning | 2,473 | 102 | ||||||||||
Owens-Illinois, Inc. (a) | 2,144 | 49 | ||||||||||
PPG Industries, Inc. | 3,730 | 428 | ||||||||||
Praxair, Inc. | 3,152 | 377 | ||||||||||
Reliance Steel & Aluminum Co. | 928 | 56 | ||||||||||
RPM International, Inc. | 2,073 | 101 | ||||||||||
Schnitzer Steel Industries, Inc. | 1,856 | 32 | ||||||||||
Sealed Air Corp. | 1,107 | 57 | ||||||||||
Sherwin-Williams Co. | 336 | 92 | ||||||||||
Sigma-Aldrich Corp. | 1,169 | 163 | ||||||||||
Sonoco Products Co. | 3,708 | 159 | ||||||||||
Steel Dynamics, Inc. | 3,977 | 82 | ||||||||||
SunCoke Energy, Inc. | 5,232 | 68 | ||||||||||
Thompson Creek Metals Co., Inc. (a) | 35,215 | 29 | ||||||||||
U.S. Steel Corp. | 8,711 | 180 | ||||||||||
|
| |||||||||||
13,572 | ||||||||||||
|
| |||||||||||
TELECOMMUNICATION SERVICES 4.8% | ||||||||||||
AT&T, Inc. | 366,257 | 13,009 | ||||||||||
CenturyLink, Inc. | 53,956 | 1,585 | ||||||||||
Cincinnati Bell, Inc. (a) | 24,252 | 93 | ||||||||||
Frontier Communications Corp. | 199,894 | 990 | ||||||||||
Leap Wireless | 22,373 | 56 | ||||||||||
Level 3 Communications, Inc. (a) | 8,798 | 463 | ||||||||||
Sprint Corp. (a) | 49,100 | 224 | ||||||||||
Telephone & Data Systems, Inc. | 13,124 | 386 | ||||||||||
Verizon Communications, Inc. | 97,897 | 4,563 | ||||||||||
Vonage Holdings Corp. (a) | 22,384 | 110 | ||||||||||
Windstream Holdings, Inc. | 31,807 | 203 | ||||||||||
|
| |||||||||||
21,682 | ||||||||||||
|
| |||||||||||
UTILITIES 5.7% | ||||||||||||
AES Corp. | 30,305 | 402 | ||||||||||
AGL Resources, Inc. | 3,928 | 183 | ||||||||||
Alliant Energy Corp. | 4,773 | 276 | ||||||||||
Ameren Corp. | 19,747 | 744 | ||||||||||
American Electric Power Co., Inc. | 22,758 | 1,206 | ||||||||||
American Water Works Co., Inc. | 3,107 | 151 | ||||||||||
Atmos Energy Corp. | 3,519 | 180 |
SHARES | MARKET VALUE (000S) | |||||||||||
Avista Corp. | 4,339 | $ | 133 | |||||||||
Calpine Corp. (a) | 13,017 | 234 | ||||||||||
CenterPoint Energy, Inc. | 21,012 | 400 | ||||||||||
CMS Energy Corp. | 14,735 | 469 | ||||||||||
Consolidated Edison, Inc. | 25,269 | 1,463 | ||||||||||
Dominion Resources, Inc. | 9,636 | 644 | ||||||||||
DTE Energy Co. | 10,742 | 802 | ||||||||||
Duke Energy Corp. | 11,966 | 845 | ||||||||||
Dynegy, Inc. (a) | 2,428 | 71 | ||||||||||
Edison International | 19,231 | 1,069 | ||||||||||
El Paso Electric Co. | 2,247 | 78 | ||||||||||
Entergy Corp. | 22,778 | 1,606 | ||||||||||
Exelon Corp. | 55,135 | 1,732 | ||||||||||
FirstEnergy Corp. | 30,650 | 998 | ||||||||||
Great Plains Energy, Inc. | 6,546 | 158 | ||||||||||
Hawaiian Electric Industries, Inc. | 4,803 | 143 | ||||||||||
IDACORP, Inc. | 630 | 35 | ||||||||||
Laclede Group, Inc. | 2,821 | 147 | ||||||||||
MDU Resources Group, Inc. | 16,904 | 330 | ||||||||||
National Fuel Gas Co. | 1,205 | 71 | ||||||||||
New Jersey Resources Corp. | 5,063 | 139 | ||||||||||
NextEra Energy, Inc. | 8,994 | 882 | ||||||||||
NiSource, Inc. | 12,035 | 549 | ||||||||||
NorthWestern Corp. | 2,851 | 139 | ||||||||||
NRG Energy, Inc. | 1,765 | 40 | ||||||||||
ONE Gas, Inc. | 2,113 | 90 | ||||||||||
Pepco Holdings, Inc. | 22,916 | 617 | ||||||||||
PG&E Corp. | 23,814 | 1,169 | ||||||||||
Pinnacle West Capital Corp. | 8,987 | 511 | ||||||||||
PNM Resources, Inc. | 8,349 | 205 | ||||||||||
Portland General Electric Co. | 5,524 | 183 | ||||||||||
PPL Corp. | 17,105 | 504 | ||||||||||
Public Service Enterprise Group, Inc. | 30,426 | 1,195 | ||||||||||
SCANA Corp. | 5,008 | 254 | ||||||||||
Sempra Energy | 6,349 | 628 | ||||||||||
Southern Co. | 32,604 | 1,366 | ||||||||||
Southwest Gas Corp. | 2,202 | 117 | ||||||||||
Talen Energy Corp. (a) | 2,136 | 37 | ||||||||||
TECO Energy, Inc. | 18,474 | 326 | ||||||||||
UGI Corp. | 1,571 | 54 | ||||||||||
UIL Holdings Corp. | 2,022 | 93 | ||||||||||
Vectren Corp. | 4,223 | 163 | ||||||||||
WEC Energy Group, Inc. | 12,449 | 560 | ||||||||||
Westar Energy, Inc. | 6,747 | 231 | ||||||||||
WGL Holdings, Inc. | 4,769 | 259 |
SHARES | MARKET VALUE (000S) | |||||||||||
Xcel Energy, Inc. | 22,195 | $ | 714 | |||||||||
|
| |||||||||||
25,595 | ||||||||||||
|
| |||||||||||
Total United States | 438,310 | |||||||||||
|
| |||||||||||
Total Common Stocks (Cost $334,519) | 441,176 | |||||||||||
|
| |||||||||||
REAL ESTATE INVESTMENT TRUSTS 1.0% | ||||||||||||
UNITED STATES 1.0% | ||||||||||||
FINANCIALS 1.0% | ||||||||||||
American Capital Agency Corp. | 5,899 | 108 | ||||||||||
American Capital Mortgage Investment Corp. | 8,952 | 143 | ||||||||||
Annaly Capital Management, Inc. | 118,424 | 1,088 | ||||||||||
Anworth Mortgage Asset Corp. | 14,855 | 73 | ||||||||||
Apartment Investment & Management Co. ‘A’ | 4,679 | 173 | ||||||||||
Brandywine Realty Trust | 3,733 | 50 | ||||||||||
Capstead Mortgage Corp. | 7,802 | 87 | ||||||||||
Columbia Property Trust, Inc. | 6,875 | 169 | ||||||||||
Corrections Corp. of America | 2,625 | 87 | ||||||||||
Crown Castle International Corp. | 474 | 38 | ||||||||||
CYS Investments, Inc. | 4,878 | 38 | ||||||||||
Digital Realty Trust, Inc. | 1,472 | 98 | ||||||||||
Hatteras Financial Corp. | 10,501 | 171 | ||||||||||
Hospitality Properties Trust | 3,661 | 106 | ||||||||||
Iron Mountain, Inc. | 17,465 | 541 | ||||||||||
Mack-Cali Realty Corp. | 2,187 | 40 | ||||||||||
MFA Financial, Inc. | 9,578 | 71 | ||||||||||
New Residential Investment Corp. | 5,862 | 89 | ||||||||||
Piedmont Office Realty Trust, Inc. | 7,318 | 129 | ||||||||||
Plum Creek Timber Co., Inc. | 2,220 | 90 | ||||||||||
Public Storage | 433 | 80 | ||||||||||
Redwood Trust, Inc. | 2,668 | 42 | ||||||||||
Simon Property Group, Inc. | 445 | 77 | ||||||||||
Weyerhaeuser Co. | 23,369 | 736 | ||||||||||
|
| |||||||||||
4,324 | ||||||||||||
|
| |||||||||||
Total Real Estate Investment Trusts (Cost $4,481) | 4,324 | |||||||||||
|
| |||||||||||
Total Investments in Securities (Cost $339,000) | 445,500 | |||||||||||
Total Investments 99.5% (Cost $339,000) | $ | 445,500 | ||||||||||
Other Assets and Liabilities, net 0.5% | 2,289 | |||||||||||
|
| |||||||||||
Net Assets 100.0% | $ | 447,789 | ||||||||||
|
|
NOTES TO SCHEDULE OF INVESTMENTS (AMOUNTS IN THOUSANDS*):
* | A zero balance may reflect actual amounts rounding to less than one thousand. |
(a) | Security did not produce income within the last twelve months. |
48 | PIMCO EQUITY SERIES | See Accompanying Notes |
Table of Contents
June 30, 2015
FAIR VALUE MEASUREMENTS
The following is a summary of the fair valuations according to the inputs used as of June 30, 2015 in valuing the Fund’s assets and liabilities:
Category and Subcategory | Level 1 | Level 2 | Level 3 | Fair Value at 06/30/2015 | ||||||||||||
Investments in Securities, at Value | ||||||||||||||||
Common Stocks | ||||||||||||||||
Ireland | ||||||||||||||||
Financials | $ | 182 | $ | 0 | $ | 0 | $ | 182 | ||||||||
Health Care | 1,009 | 0 | 0 | 1,009 | ||||||||||||
Information Technology | 1,027 | 0 | 0 | 1,027 | ||||||||||||
Mexico | ||||||||||||||||
Materials | 394 | 0 | 0 | 394 | ||||||||||||
Switzerland | ||||||||||||||||
Financials | 254 | 0 | 0 | 254 | ||||||||||||
United States | ||||||||||||||||
Consumer Discretionary | 62,579 | 0 | 7 | 62,586 | ||||||||||||
Consumer Staples | 45,028 | 0 | 0 | 45,028 |
Category and Subcategory | Level 1 | Level 2 | Level 3 | Fair Value at 06/30/2015 | ||||||||||||
Energy | $ | 42,285 | $ | 0 | $ | 0 | $ | 42,285 | ||||||||
Financials | 51,840 | 0 | 0 | 51,840 | ||||||||||||
Health Care | 57,339 | 0 | 0 | 57,339 | ||||||||||||
Industrials | 36,878 | 0 | 0 | 36,878 | ||||||||||||
Information Technology | 81,505 | 0 | 0 | 81,505 | ||||||||||||
Materials | 13,572 | 0 | 0 | 13,572 | ||||||||||||
Telecommunication Services | 21,626 | 0 | 56 | 21,682 | ||||||||||||
Utilities | 25,595 | 0 | 0 | 25,595 | ||||||||||||
Real Estate Investment Trusts | ||||||||||||||||
United States | ||||||||||||||||
Financials | 4,324 | 0 | 0 | 4,324 | ||||||||||||
Total Investments | $ | 445,437 | $ | 0 | $ | 63 | $ | 445,500 |
There were no significant transfers between Levels 1, 2, or 3 during the period ended June 30, 2015.
See Accompanying Notes | ANNUAL REPORT | JUNE 30, 2015 | 49 |
Table of Contents
Schedule of Investments PIMCO RAE Fundamental US Small Fund
SHARES | MARKET VALUE (000S) | |||||||||||
INVESTMENTS IN SECURITIES 99.4% | ||||||||||||
COMMON STOCKS 94.5% | ||||||||||||
UNITED STATES 94.5% | ||||||||||||
CONSUMER DISCRETIONARY 21.2% | ||||||||||||
1-800-Flowers.com, Inc. ‘A’ (a) | 3,020 | $ | 32 | |||||||||
A H Belo Corp. | 667 | 4 | ||||||||||
ACCO Brands Corp. (a) | 8,173 | 64 | ||||||||||
Accuride Corp. (a) | 4,714 | 18 | ||||||||||
Aeropostale, Inc. (a) | 1,999 | 3 | ||||||||||
AMC Entertainment Holdings, Inc. ‘A’ | 2,919 | 90 | ||||||||||
America’s Car-Mart, Inc. (a) | 343 | 17 | ||||||||||
American Public Education, Inc. (a) | 1,155 | 30 | ||||||||||
Arctic Cat, Inc. | 504 | 17 | ||||||||||
Asbury Automotive Group, Inc. (a) | 930 | 84 | ||||||||||
Ascena Retail Group, Inc. (a) | 1,428 | 24 | ||||||||||
Ascent Capital Group, Inc. (a) | 616 | 26 | ||||||||||
Bassett Furniture Industries, Inc. | 645 | 18 | ||||||||||
Beazer Homes USA, Inc. (a) | 883 | 18 | ||||||||||
bebe stores, Inc. | 7,493 | 15 | ||||||||||
Big 5 Sporting Goods Corp. | 2,577 | 37 | ||||||||||
Biglari Holdings, Inc. (a) | 124 | 51 | ||||||||||
BJ’s Restaurants, Inc. (a) | 1,949 | 94 | ||||||||||
Blue Nile, Inc. (a) | 254 | 8 | ||||||||||
Blyth, Inc. (a) | 1,017 | 6 | ||||||||||
Bon-Ton Stores, Inc. | 3,358 | 16 | ||||||||||
Boyd Gaming Corp. (a) | 10,135 | 152 | ||||||||||
Bravo Brio Restaurant Group, Inc. (a) | 2,340 | 32 | ||||||||||
Bridgepoint Education, Inc. (a) | 6,430 | 61 | ||||||||||
Bright Horizons Family Solutions, Inc. (a) | 264 | 15 | ||||||||||
Buckle, Inc. | 3,302 | 151 | ||||||||||
Build-A-Bear Workshop, Inc. (a) | 2,072 | 33 | ||||||||||
Caleres, Inc. | 5,208 | 166 | ||||||||||
Callaway Golf Co. | 4,923 | 44 | ||||||||||
Capella Education Co. | 1,729 | 93 | ||||||||||
Career Education Corp. (a) | 3,228 | 11 | ||||||||||
Carmike Cinemas, Inc. (a) | 636 | 17 | ||||||||||
Carriage Services, Inc. | 1,112 | 27 | ||||||||||
Carrols Restaurant Group, Inc. (a) | 5,304 | 55 | ||||||||||
Cash America International, Inc. | 2,534 | 66 | ||||||||||
Cato Corp. | 2,058 | 80 | ||||||||||
Cavco Industries, Inc. (a) | 129 | 10 | ||||||||||
Champion Enterprises, Inc. | 4,160 | 0 | ||||||||||
Cheesecake Factory, Inc. | 330 | 18 | ||||||||||
Children’s Place, Inc. | 2,297 | 150 | ||||||||||
Choice Hotels International, Inc. | 1,727 | 94 | ||||||||||
Christopher & Banks Corp. (a) | 3,581 | 14 | ||||||||||
Churchill Downs, Inc. | 207 | 26 | ||||||||||
Citi Trends, Inc. (a) | 2,697 | 65 | ||||||||||
Clear Channel Outdoor Holdings, Inc. ‘A’ | 3,973 | 40 | ||||||||||
ClubCorp Holdings, Inc. | 731 | 17 | ||||||||||
Collectors Universe, Inc. | 449 | 9 | ||||||||||
Columbia Sportswear Co. | 1,429 | 86 | ||||||||||
Commercial Vehicle Group, Inc. (a) | 1,435 | 10 | ||||||||||
Conn’s, Inc. (a) | 652 | 26 |
SHARES | MARKET VALUE (000S) | |||||||||||
Container Store Group, Inc. (a) | 1,215 | $ | 21 | |||||||||
Cooper Tire & Rubber Co. | 1,562 | 53 | ||||||||||
Core-Mark Holding Co., Inc. | 2,151 | 127 | ||||||||||
Crocs, Inc. (a) | 8,240 | 121 | ||||||||||
CSS Industries, Inc. | 592 | 18 | ||||||||||
Cumulus Media, Inc. ‘A’ (a) | 4,497 | 9 | ||||||||||
Del Frisco’s Restaurant Group, Inc. (a) | 548 | 10 | ||||||||||
Demand Media, Inc. (a) | 335 | 2 | ||||||||||
Denny’s Corp. (a) | 9,973 | 116 | ||||||||||
Destination Maternity Corp. | 1,082 | 13 | ||||||||||
Destination XL Group, Inc. (a) | 6,009 | 30 | ||||||||||
Diamond Resorts International, Inc. (a) | 944 | 30 | ||||||||||
DigitalGlobe, Inc. (a) | 1,020 | 28 | ||||||||||
DineEquity, Inc. | 838 | 83 | ||||||||||
Douglas Dynamics, Inc. | 1,134 | 24 | ||||||||||
DreamWorks Animation SKG, Inc. (a) | 510 | 13 | ||||||||||
DSW, Inc. | 188 | 6 | ||||||||||
Entercom Communications Corp. ‘A’ (a) | 2,394 | 27 | ||||||||||
Eros International PLC (a) | 915 | 23 | ||||||||||
Ethan Allen Interiors, Inc. | 1,508 | 40 | ||||||||||
EVINE Live, Inc. (a) | 3,575 | 10 | ||||||||||
EW Scripps Co. | 2,138 | 49 | ||||||||||
Express, Inc. (a) | 7,352 | 133 | ||||||||||
Extended Stay America, Inc. | 1,937 | 36 | ||||||||||
Ezcorp, Inc. ‘A’ (a) | 6,066 | 45 | ||||||||||
Famous Dave’s of America, Inc. (a) | 425 | 9 | ||||||||||
Federal-Mogul Holdings Corp. (a) | 3,291 | 37 | ||||||||||
Fiesta Restaurant Group, Inc. (a) | 1,069 | 53 | ||||||||||
Finish Line, Inc. ‘A’ | 5,938 | 165 | ||||||||||
First Cash Financial Services, Inc. (a) | 836 | 38 | ||||||||||
Five Below, Inc. (a) | 435 | 17 | ||||||||||
Francesca’s Holdings Corp. (a) | 967 | 13 | ||||||||||
Fred’s, Inc. | 4,526 | 87 | ||||||||||
FTD Cos., Inc. (a) | 910 | 26 | ||||||||||
Fuel Systems Solutions, Inc. (a) | 2,976 | 22 | ||||||||||
G&K Services, Inc. ‘A’ | 1,540 | 107 | ||||||||||
G-III Apparel Group Ltd. (a) | 931 | 66 | ||||||||||
Gentherm, Inc. (a) | 350 | 19 | ||||||||||
Gerber Scientific, Inc. | 496 | 0 | ||||||||||
Grand Canyon Education, Inc. (a) | 812 | 34 | ||||||||||
Gray Television, Inc. (a) | 1,041 | 16 | ||||||||||
Group 1 Automotive, Inc. | 566 | 51 | ||||||||||
Harte-Hanks, Inc. | 6,264 | 37 | ||||||||||
Haverty Furniture Cos., Inc. | 1,801 | 39 | ||||||||||
Herman Miller, Inc. | 1,492 | 43 | ||||||||||
hhgregg, Inc. (a) | 2,607 | 9 | ||||||||||
Hibbett Sports, Inc. (a) | 815 | 38 | ||||||||||
HNI Corp. | 548 | 28 | ||||||||||
Hooker Furniture Corp. | 270 | 7 | ||||||||||
Houghton Mifflin Harcourt Co. (a) | 1,008 | 25 | ||||||||||
HSN, Inc. | 1,728 | 121 | ||||||||||
Hyatt Hotels Corp. ‘A’ (a) | 1,603 | 91 | ||||||||||
Iconix Brand Group, Inc. (a) | 501 | 13 | ||||||||||
Interface, Inc. | 1,495 | 37 | ||||||||||
International Speedway Corp. ‘A’ | 1,948 | 71 |
SHARES | MARKET VALUE (000S) | |||||||||||
Interval Leisure Group, Inc. | 1,854 | $ | 42 | |||||||||
iRobot Corp. (a) | 721 | 23 | ||||||||||
Isle of Capri Casinos, Inc. (a) | 5,405 | 98 | ||||||||||
JAKKS Pacific, Inc. (a) | 6,559 | 65 | ||||||||||
Jamba, Inc. (a) | 1,303 | 20 | ||||||||||
Johnson Outdoors, Inc. | 189 | 4 | ||||||||||
K12, Inc. (a) | 3,753 | 47 | ||||||||||
KB Home | 1,353 | 22 | ||||||||||
Kimball International, Inc. | 3,493 | 42 | ||||||||||
Kirkland’s, Inc. | 1,676 | 47 | ||||||||||
Knoll, Inc. | 4,429 | 111 | ||||||||||
Kona Grill, Inc. (a) | 431 | 8 | ||||||||||
Krispy Kreme Doughnuts, Inc. (a) | 663 | 13 | ||||||||||
La Quinta Holdings, Inc. (a) | 349 | 8 | ||||||||||
La-Z-Boy, Inc. | 1,243 | 33 | ||||||||||
Lands’ End, Inc. (a) | 3,400 | 84 | ||||||||||
LeapFrog Enterprises, Inc. (a) | 1,464 | 2 | ||||||||||
Lee Enterprises, Inc. (a) | 6,248 | 21 | ||||||||||
Libbey, Inc. | 1,393 | 58 | ||||||||||
Liberty TripAdvisor Holdings, Inc. (a) | 2,131 | 69 | ||||||||||
LifeLock, Inc. (a) | 516 | 8 | ||||||||||
Lions Gate Entertainment Corp. | 737 | 27 | ||||||||||
Lithia Motors, Inc. ‘A’ | 261 | 30 | ||||||||||
Loral Space & Communications, Inc. (a) | 808 | 51 | ||||||||||
Lumber Liquidators Holdings, Inc. (a) | 752 | 16 | ||||||||||
Marchex, Inc. | 3,289 | 16 | ||||||||||
Marcus Corp. | 2,784 | 53 | ||||||||||
MarineMax, Inc. (a) | 713 | 17 | ||||||||||
Marriott Vacations Worldwide Corp. | 1,661 | 152 | ||||||||||
Martha Stewart Living Omnimedia, Inc. (a) | 1,658 | 10 | ||||||||||
Mattress Firm Holding Corp. (a) | 421 | 26 | ||||||||||
McClatchy Co. (a) | 9,681 | 10 | ||||||||||
MDC Partners, Inc. | 771 | 15 | ||||||||||
Media General, Inc. (a) | 1,594 | 26 | ||||||||||
Meritage Homes Corp. (a) | 161 | 8 | ||||||||||
Meritor, Inc. (a) | 5,135 | 67 | ||||||||||
Michaels Cos., Inc. (a) | 1,290 | 35 | ||||||||||
Miller Industries, Inc. | 269 | 5 | ||||||||||
Mobile Mini, Inc. | 2,097 | 88 | ||||||||||
Modine Manufacturing Co. (a) | 3,371 | 36 | ||||||||||
Monarch Casino & Resort, Inc. (a) | 685 | 14 | ||||||||||
Monro Muffler Brake, Inc. | 942 | 59 | ||||||||||
Morningstar, Inc. | 582 | 46 | ||||||||||
Motorcar Parts of America, Inc. (a) | 313 | 9 | ||||||||||
Movado Group, Inc. | 1,243 | 34 | ||||||||||
NACCO Industries, Inc. ‘A’ | 616 | 37 | ||||||||||
National CineMedia, Inc. | 4,057 | 65 | ||||||||||
Nautilus, Inc. (a) | 1,564 | 34 | ||||||||||
New York & Co., Inc. (a) | 5,713 | 15 | ||||||||||
Nexstar Broadcasting Group, Inc. | 653 | 37 | ||||||||||
Nutrisystem, Inc. | 4,487 | 112 | ||||||||||
Orbitz Worldwide, Inc. (a) | 10,819 | 124 | ||||||||||
Outerwall, Inc. | 1,012 | 77 | ||||||||||
Oxford Industries, Inc. | 844 | 74 | ||||||||||
Pacific Sunwear of California, Inc. (a) | 12,445 | 14 |
50 | PIMCO EQUITY SERIES | See Accompanying Notes |
Table of Contents
June 30, 2015
SHARES | MARKET VALUE (000S) | |||||||||||
Papa John’s International, Inc. | 1,780 | $ | 135 | |||||||||
Penn National Gaming, Inc. (a) | 9,019 | 166 | ||||||||||
Penske Automotive Group, Inc. | 1,165 | 61 | ||||||||||
Pep Boys-Manny Moe & Jack (a) | 6,373 | 78 | ||||||||||
Perry Ellis International, Inc. (a) | 2,261 | 54 | ||||||||||
PetMed Express, Inc. | 2,813 | 49 | ||||||||||
Pier 1 Imports, Inc. | 12,673 | 160 | ||||||||||
Pinnacle Entertainment, Inc. (a) | 2,287 | 85 | ||||||||||
Pool Corp. | 237 | 17 | ||||||||||
Popeyes Louisiana Kitchen, Inc. (a) | 363 | 22 | ||||||||||
Potbelly Corp. (a) | 501 | 6 | ||||||||||
Preformed Line Products Co. | 53 | 2 | ||||||||||
Quiksilver, Inc. (a) | 6,425 | 4 | ||||||||||
Radio One, Inc. ‘D’ (a) | 3,125 | 10 | ||||||||||
Red Robin Gourmet Burgers, Inc. (a) | 737 | 63 | ||||||||||
Regis Corp. (a) | 1,879 | 30 | ||||||||||
Remy International, Inc. | 929 | 21 | ||||||||||
Rentrak Corp. (a) | 134 | 9 | ||||||||||
Ruby Tuesday, Inc. (a) | 2,631 | 17 | ||||||||||
Rush Enterprises, Inc. ‘A’ (a) | 2,605 | 68 | ||||||||||
Ruth’s Hospitality Group, Inc. | 3,876 | 63 | ||||||||||
Scientific Games Corp. (a) | 2,118 | 33 | ||||||||||
Sears Hometown and Outlet Stores, Inc. (a) | 797 | 8 | ||||||||||
Select Comfort Corp. (a) | 2,758 | 83 | ||||||||||
Shoe Carnival, Inc. | 1,464 | 42 | ||||||||||
Shutterfly, Inc. (a) | 873 | 42 | ||||||||||
Sinclair Broadcast Group, Inc. | 856 | 24 | ||||||||||
Skechers U.S.A., Inc. ‘A’ (a) | 1,148 | 126 | ||||||||||
Skullcandy, Inc. (a) | 3,310 | 25 | ||||||||||
Smith & Wesson Holding Corp. (a) | 5,295 | 88 | ||||||||||
Sonic Automotive, Inc. | 2,673 | 64 | ||||||||||
Sonic Corp. | 3,763 | 108 | ||||||||||
Sotheby’s | 401 | 18 | ||||||||||
Spartan Motors, Inc. | 2,405 | 11 | ||||||||||
Speedway Motorsports, Inc. | 560 | 13 | ||||||||||
Sportsman’s Warehouse Holdings, Inc. (a) | 639 | 7 | ||||||||||
Stage Stores, Inc. | 3,359 | 59 | ||||||||||
Standard Motor Products, Inc. | 840 | 30 | ||||||||||
Steelcase, Inc. ‘A’ | 2,273 | 43 | ||||||||||
Stein Mart, Inc. | 3,054 | 32 | ||||||||||
Steven Madden Ltd. (a) | 1,098 | 47 | ||||||||||
Stoneridge, Inc. (a) | 2,384 | 28 | ||||||||||
Strayer Education, Inc. (a) | 999 | 43 | ||||||||||
Sturm Ruger & Co., Inc. | 1,410 | 81 | ||||||||||
Superior Industries International, Inc. | 2,295 | 42 | ||||||||||
Systemax, Inc. (a) | 344 | 3 | ||||||||||
Taylor Morrison Home Corp. (a) | 855 | 17 | ||||||||||
Texas Roadhouse, Inc. | 3,661 | 137 | ||||||||||
Thor Industries, Inc. | 193 | 11 | ||||||||||
Tilly’s, Inc. (a) | 1,257 | 12 | ||||||||||
Titan International, Inc. | 2,006 | 22 | ||||||||||
Tower International, Inc. (a) | 4,320 | 113 | ||||||||||
Town Sports International Holdings, Inc. | 3,905 | 11 | ||||||||||
TravelCenters of America LLC (a) | 2,869 | 43 |
SHARES | MARKET VALUE (000S) | |||||||||||
Tuesday Morning Corp. (a) | 3,083 | $ | 35 | |||||||||
UniFirst Corp. | 329 | 37 | ||||||||||
Universal Electronics, Inc. (a) | 668 | 33 | ||||||||||
Universal Technical Institute, Inc. | 1,765 | 15 | ||||||||||
Vera Bradley, Inc. (a) | 1,230 | 14 | ||||||||||
Vitamin Shoppe, Inc. (a) | 1,741 | 65 | ||||||||||
VOXX International Corp. (a) | 1,036 | 9 | ||||||||||
Wesco Aircraft Holdings, Inc. (a) | 2,534 | 38 | ||||||||||
West Corp. | 2,248 | 68 | ||||||||||
West Marine, Inc. (a) | 350 | 3 | ||||||||||
Weyco Group, Inc. | 68 | 2 | ||||||||||
World Wrestling Entertainment, Inc. | 2,265 | 37 | ||||||||||
ZAGG, Inc. (a) | 1,712 | 14 | ||||||||||
Zumiez, Inc. (a) | 329 | 9 | ||||||||||
|
| |||||||||||
9,855 | ||||||||||||
|
| |||||||||||
CONSUMER STAPLES 5.0% | ||||||||||||
Andersons, Inc. | 1,286 | 50 | ||||||||||
B&G Foods, Inc. | 294 | 8 | ||||||||||
Boston Beer Co., Inc. (a) | 221 | 51 | ||||||||||
Boulder Brands, Inc. (a) | 1,156 | 8 | ||||||||||
Cal-Maine Foods, Inc. | 1,666 | 87 | ||||||||||
Cardtronics, Inc. (a) | 1,156 | 43 | ||||||||||
Central Garden & Pet Co. (a) | 4,562 | 52 | ||||||||||
Coca-Cola Bottling Co. Consolidated | 661 | 100 | ||||||||||
Coty, Inc. ‘A’ | 5,795 | 185 | ||||||||||
Diamond Foods, Inc. (a) | 872 | 27 | ||||||||||
Eddie Bauer Holdings, Inc. | 5,029 | 0 | ||||||||||
Electro Rent Corp. | 989 | 11 | ||||||||||
Elizabeth Arden, Inc. (a) | 3,466 | 49 | ||||||||||
Euronet Worldwide, Inc. (a) | 223 | 14 | ||||||||||
Farmer Bros Co. (a) | 321 | 8 | ||||||||||
Forrester Research, Inc. | 899 | 32 | ||||||||||
Fresh Del Monte Produce, Inc. | 2,996 | 116 | ||||||||||
Fresh Market, Inc. (a) | 581 | 19 | ||||||||||
Global Cash Access Holdings, Inc. (a) | 5,115 | 40 | ||||||||||
Hackett Group, Inc. | 1,588 | 21 | ||||||||||
Heartland Payment Systems, Inc. | 673 | 36 | ||||||||||
HRG Group, Inc. (a) | 2,403 | 31 | ||||||||||
Information Services Group, Inc. | 6,306 | 30 | ||||||||||
Ingles Markets, Inc. | 2,399 | 115 | ||||||||||
Inter Parfums, Inc. | 1,053 | 36 | ||||||||||
J&J Snack Foods Corp. | 562 | 62 | ||||||||||
John B Sanfilippo & Son, Inc. | 333 | 17 | ||||||||||
Lancaster Colony Corp. | 824 | 75 | ||||||||||
Medifast, Inc. (a) | 993 | 32 | ||||||||||
MoneyGram International, Inc. (a) | 2,320 | 21 | ||||||||||
Monster Worldwide, Inc. (a) | 12,647 | 83 | ||||||||||
National Beverage Corp. (a) | 446 | 10 | ||||||||||
Nature’s Sunshine Products, Inc. | 497 | 7 | ||||||||||
Nutraceutical International Corp. (a) | 220 | 5 | ||||||||||
Omega Protein Corp. (a) | 2,853 | 39 | ||||||||||
Pinnacle Foods, Inc. | 663 | 30 | ||||||||||
Post Holdings, Inc. (a) | 153 | 8 | ||||||||||
PRGX Global, Inc. (a) | 3,422 | 15 | ||||||||||
PriceSmart, Inc. | 328 | 30 |
SHARES | MARKET VALUE (000S) | |||||||||||
Revlon, Inc. (a) | 1,255 | $ | 46 | |||||||||
Roundy’s, Inc. (a) | 11,429 | 37 | ||||||||||
Sanderson Farms, Inc. | 88 | 7 | ||||||||||
Seaboard Corp. (a) | 6 | 22 | ||||||||||
Seneca Foods Corp. ‘A’ (a) | 515 | 14 | ||||||||||
Snyder’s-Lance, Inc. | 1,442 | 47 | ||||||||||
SpartanNash Co. | 4,234 | 138 | ||||||||||
Spectrum Brands Holdings, Inc. | 1,115 | 114 | ||||||||||
USANA Health Sciences, Inc. (a) | 524 | 72 | ||||||||||
Vector Group Ltd. | 4,465 | 105 | ||||||||||
Village Super Market, Inc. | 332 | 10 | ||||||||||
WD-40 Co. | 722 | 63 | ||||||||||
Weis Markets, Inc. | 1,137 | 48 | ||||||||||
|
| |||||||||||
2,326 | ||||||||||||
|
| |||||||||||
ENERGY 4.2% | ||||||||||||
Abraxas Petroleum Corp. (a) | 4,002 | 12 | ||||||||||
Alon USA Energy, Inc. | 2,351 | 44 | ||||||||||
Antero Resources Corp. (a) | 227 | 8 | ||||||||||
Basic Energy Services, Inc. (a) | 3,216 | 24 | ||||||||||
Bonanza Creek Energy, Inc. (a) | 787 | 14 | ||||||||||
BPZ Resources, Inc. (a) | 3,922 | 0 | ||||||||||
C&J Energy Services Ltd. (a) | 2,969 | 39 | ||||||||||
Callon Petroleum Co. (a) | 7,231 | 60 | ||||||||||
CARBO Ceramics, Inc. | 2,621 | 109 | ||||||||||
Carrizo Oil & Gas, Inc. (a) | 1,282 | 63 | ||||||||||
Clayton Williams Energy, Inc. (a) | 949 | 62 | ||||||||||
Clean Energy Fuels Corp. (a) | 1,334 | 8 | ||||||||||
Comstock Resources, Inc. | 2,428 | 8 | ||||||||||
Contango Oil & Gas Co. (a) | 2,049 | 25 | ||||||||||
CVR Energy, Inc. | 1,531 | 58 | ||||||||||
Dawson Geophysical Co. (a) | 536 | 3 | ||||||||||
Delek U.S. Holdings, Inc. | 2,973 | 109 | ||||||||||
Enbridge Energy Management LLC (a) | 458 | 15 | ||||||||||
EXCO Resources, Inc. | 13,927 | 16 | ||||||||||
FMSA Holdings, Inc. (a) | 2,096 | 17 | ||||||||||
Forum Energy Technologies, Inc. (a) | 2,761 | 56 | ||||||||||
Geospace Technologies Corp. (a) | 2,050 | 47 | ||||||||||
Goodrich Petroleum Corp. (a) | 1,524 | 3 | ||||||||||
Green Plains, Inc. | 1,920 | 53 | ||||||||||
Gulf Island Fabrication, Inc. | 577 | 6 | ||||||||||
Gulfmark Offshore, Inc. ‘A’ | 3,729 | 43 | ||||||||||
Helix Energy Solutions Group, Inc. (a) | 1,836 | 23 | ||||||||||
Hercules Offshore, Inc. (a) | 11,684 | 3 | ||||||||||
ION Geophysical Corp. (a) | 13,569 | 15 | ||||||||||
Jones Energy, Inc. (a) | 521 | 5 | ||||||||||
Key Energy Services, Inc. (a) | 14,853 | 27 | ||||||||||
Kosmos Energy Ltd. (a) | 1,434 | 12 | ||||||||||
Laredo Petroleum, Inc. (a) | 3,298 | �� | 41 | |||||||||
Matador Resources Co. (a) | 511 | 13 | ||||||||||
Matrix Service Co. (a) | 1,357 | 25 | ||||||||||
McDermott International, Inc. (a) | 6,308 | 34 | ||||||||||
Memorial Resource Development Corp. (a) | 328 | 6 | ||||||||||
Miller Energy Resources, Inc. (a) | 5,969 | 2 | ||||||||||
Mitcham Industries, Inc. (a) | 560 | 2 |
See Accompanying Notes | ANNUAL REPORT | JUNE 30, 2015 | 51 |
Table of Contents
Schedule of Investments PIMCO RAE Fundamental US Small Fund (Cont.)
SHARES | MARKET VALUE (000S) | |||||||||||
Natural Gas Services Group, Inc. (a) | 1,094 | $ | 25 | |||||||||
Newpark Resources, Inc. (a) | 4,937 | 40 | ||||||||||
Noble International Ltd. | 5,008 | 0 | ||||||||||
Northern Oil and Gas, Inc. (a) | 8,677 | 59 | ||||||||||
Nuverra Environmental Solutions, Inc. (a) | 1,355 | 9 | ||||||||||
Oil-Dri Corp. of America | 113 | 3 | ||||||||||
Pacific Drilling S.A. (a) | 8,933 | 25 | ||||||||||
Pacific Ethanol, Inc. (a) | 719 | 7 | ||||||||||
Panhandle Oil and Gas, Inc. | 552 | 11 | ||||||||||
Parker Drilling Co. (a) | 16,767 | 56 | ||||||||||
Parsley Energy, Inc. (a) | 371 | 6 | ||||||||||
PDC Energy, Inc. (a) | 1,079 | 58 | ||||||||||
Penn Virginia Corp. (a) | 4,173 | 18 | ||||||||||
PetroQuest Energy, Inc. (a) | 8,849 | 18 | ||||||||||
PHI, Inc. (a) | 392 | 12 | ||||||||||
Pioneer Energy Services Corp. (a) | 3,632 | 23 | ||||||||||
Plug Power, Inc. (a) | 2,828 | 7 | ||||||||||
Primoris Services Corp. | 1,397 | 28 | ||||||||||
Renewable Energy Group, Inc. (a) | 1,219 | 14 | ||||||||||
Resolute Energy Corp. (a) | 7,015 | 7 | ||||||||||
REX American Resources Corp. (a) | 533 | 34 | ||||||||||
Rex Energy Corp. (a) | 3,932 | 22 | ||||||||||
Rice Energy, Inc. (a) | 638 | 13 | ||||||||||
Rosetta Resources, Inc. (a) | 281 | 7 | ||||||||||
RPC, Inc. | 5,936 | 82 | ||||||||||
RSP Permian, Inc. (a) | 233 | 7 | ||||||||||
Sanchez Energy Corp. (a) | 2,319 | 23 | ||||||||||
Tesco Corp. | 4,333 | 47 | ||||||||||
TETRA Technologies, Inc. (a) | 8,314 | 53 | ||||||||||
Thermon Group Holdings, Inc. (a) | 1,112 | 27 | ||||||||||
U.S. Silica Holdings, Inc. | 183 | 5 | ||||||||||
Ultra Petroleum Corp. (a) | 1,169 | 15 | ||||||||||
VAALCO Energy, Inc. (a) | 5,496 | 12 | ||||||||||
W&T Offshore, Inc. | 8,760 | 48 | ||||||||||
Warren Resources, Inc. (a) | 7,553 | 3 | ||||||||||
Westmoreland Coal Co. (a) | 1,231 | 26 | ||||||||||
Willbros Group, Inc. (a) | 4,588 | 6 | ||||||||||
|
| |||||||||||
1,966 | ||||||||||||
|
| |||||||||||
FINANCIALS 12.1% | ||||||||||||
1st Source Corp. | 1,255 | 43 | ||||||||||
Aircastle Ltd. | 2,998 | 68 | ||||||||||
Alexander & Baldwin, Inc. | 173 | 7 | ||||||||||
Amcore Finanical, Inc. | 1,006 | 0 | ||||||||||
American National Bankshares, Inc. | 95 | 2 | ||||||||||
Ameris Bancorp | 178 | 5 | ||||||||||
AMERISAFE, Inc. | 621 | 29 | ||||||||||
Ames National Corp. | 132 | 3 | ||||||||||
AmTrust Financial Services, Inc. | 875 | 57 | ||||||||||
Arrow Financial Corp. | 1,426 | 39 | ||||||||||
Artisan Partners Asset Management, Inc. | 369 | 17 | ||||||||||
Baldwin & Lyons, Inc. ‘B’ | 186 | 4 | ||||||||||
BancFirst Corp. | 373 | 24 | ||||||||||
Bancorp, Inc. (a) | 873 | 8 | ||||||||||
Bank Mutual Corp. | 2,585 | 20 |
SHARES | MARKET VALUE (000S) | |||||||||||
Bank of Marin Bancorp | 35 | $ | 2 | |||||||||
Bank of the Ozarks, Inc. | 505 | 23 | ||||||||||
Banner Corp. | 307 | 15 | ||||||||||
BB&T Corp. | 216 | 9 | ||||||||||
Beneficial Bancorp, Inc. (a) | 668 | 8 | ||||||||||
Berkshire Hills Bancorp, Inc. | 1,440 | 41 | ||||||||||
BGC Partners, Inc. ‘A’ | 9,224 | 81 | ||||||||||
Blackhawk Network Holdings, Inc. (a) | 873 | 36 | ||||||||||
BNC Bancorp | 969 | 19 | ||||||||||
BofI Holding, Inc. (a) | 135 | 14 | ||||||||||
BOK Financial Corp. | 264 | 18 | ||||||||||
Boston Private Financial Holdings, Inc. | 1,291 | 17 | ||||||||||
Brookline Bancorp, Inc. | 7,292 | 82 | ||||||||||
Bryn Mawr Bank Corp. | 374 | 11 | ||||||||||
Calamos Asset Management, Inc. | 4,330 | 53 | ||||||||||
Camden National Corp. | 226 | 9 | ||||||||||
Capital Bank Financial Corp. ‘A’ (a) | 2,451 | 71 | ||||||||||
Capital City Bank Group, Inc. | 326 | 5 | ||||||||||
Capitol Federal Financial, Inc. | 2,458 | 30 | ||||||||||
Cass Information Systems, Inc. | 180 | 10 | ||||||||||
Cathay General Bancorp | 249 | 8 | ||||||||||
CenterState Banks, Inc. | 1,179 | 16 | ||||||||||
Chemical Financial Corp. | 1,905 | 63 | ||||||||||
Citizens, Inc. (a) | 752 | 6 | ||||||||||
City Holding Co. | 1,108 | 55 | ||||||||||
CNA Financial Corp. | 1,936 | 74 | ||||||||||
CoBiz Financial, Inc. | 1,252 | 16 | ||||||||||
Cohen & Steers, Inc. | 1,048 | 36 | ||||||||||
Columbia Bancorp | 455 | 0 | ||||||||||
Columbia Banking System, Inc. | 704 | 23 | ||||||||||
Community Bank System, Inc. | 1,246 | 47 | ||||||||||
Community Trust Bancorp, Inc. | 1,201 | 42 | ||||||||||
ConnectOne Bancorp, Inc. | 401 | 9 | ||||||||||
Consumer Portfolio Services, Inc. (a) | 796 | 5 | ||||||||||
Crawford & Co. ‘B’ | 1,568 | 13 | ||||||||||
Credit Acceptance Corp. (a) | 177 | 44 | ||||||||||
Customers Bancorp, Inc. (a) | 856 | 23 | ||||||||||
CVB Financial Corp. | 636 | 11 | ||||||||||
Dime Community Bancshares, Inc. | 2,808 | 48 | ||||||||||
Eagle Bancorp, Inc. (a) | 125 | 5 | ||||||||||
eHealth, Inc. (a) | 1,923 | 24 | ||||||||||
Ellie Mae, Inc. (a) | 157 | 11 | ||||||||||
EMC Insurance Group, Inc. | 342 | 9 | ||||||||||
Employers Holdings, Inc. | 2,276 | 52 | ||||||||||
Encore Capital Group, Inc. (a) | 622 | 27 | ||||||||||
Enova International, Inc. (a) | 1,476 | 28 | ||||||||||
Enterprise Financial Services Corp. | 1,172 | 27 | ||||||||||
Erie Indemnity Co. ‘A’ | 132 | 11 | ||||||||||
EverBank Financial Corp. | 3,281 | 64 | ||||||||||
FBL Financial Group, Inc. ‘A’ | 1,024 | 59 | ||||||||||
FBR & Co. (a) | 817 | 19 | ||||||||||
Federated National Holding Co. | 307 | 7 | ||||||||||
Fidelity & Guaranty Life | 414 | 10 | ||||||||||
Fidelity Southern Corp. | 359 | 6 | ||||||||||
Financial Institutions, Inc. | 524 | 13 | ||||||||||
First Bancorp/Southern Pines | 758 | 13 |
SHARES | MARKET VALUE (000S) | |||||||||||
First Busey Corp. | 3,692 | $ | 24 | |||||||||
First Commonwealth Financial Corp. | 6,027 | 58 | ||||||||||
First Community Bancshares, Inc. | 1,136 | 21 | ||||||||||
First Connecticut Bancorp, Inc. | 389 | 6 | ||||||||||
First Defiance Financial Corp. | 504 | 19 | ||||||||||
First Financial Bancorp | 4,340 | 78 | ||||||||||
First Financial Corp. | 876 | 31 | ||||||||||
First Interstate BancSystem, Inc. | 2,097 | 58 | ||||||||||
First Merchants Corp. | 933 | 23 | ||||||||||
First Midwest Bancorp, Inc. | 1,455 | 28 | ||||||||||
First of Long Island Corp. | 138 | 4 | ||||||||||
Flagstar Bancorp, Inc. (a) | 1,782 | 33 | ||||||||||
Flushing Financial Corp. | 2,557 | 54 | ||||||||||
FNB Corp. | 5,059 | 72 | ||||||||||
Forestar Group, Inc. (a) | 600 | 8 | ||||||||||
FXCM, Inc. | 5,001 | 7 | ||||||||||
GAIN Capital Holdings, Inc. | 2,052 | 20 | ||||||||||
GAMCO Investors, Inc. | 290 | 20 | ||||||||||
German American Bancorp, Inc. | 132 | 4 | ||||||||||
GFI Group, Inc. | 8,350 | 49 | ||||||||||
Glacier Bancorp, Inc. | 235 | 7 | ||||||||||
Great Southern Bancorp, Inc. | 323 | 14 | ||||||||||
Green Dot Corp. (a) | 1,595 | 30 | ||||||||||
Greenhill & Co., Inc. | 1,433 | 59 | ||||||||||
Hanmi Financial Corp. | 476 | 12 | ||||||||||
HCI Group, Inc. | 155 | 7 | ||||||||||
Heartland Financial USA, Inc. | 492 | 18 | ||||||||||
Heritage Financial Corp. | 889 | 16 | ||||||||||
HFF, Inc. | 951 | 40 | ||||||||||
Hilltop Holdings, Inc. (a) | 876 | 21 | ||||||||||
HomeStreet, Inc. (a) | 842 | 19 | ||||||||||
Horace Mann Educators Corp. | 2,566 | 93 | ||||||||||
Hudson Valley Holding Corp. | 831 | 23 | ||||||||||
IBERIABANK Corp. | 953 | 65 | ||||||||||
Independent Bank Corp. | 4,053 | 98 | ||||||||||
Infinity Property & Casualty Corp. | 899 | 68 | ||||||||||
INTL. FCStone, Inc. (a) | 1,090 | 36 | ||||||||||
Investment Technology Group, Inc. | 2,571 | 64 | ||||||||||
Janus Capital Group, Inc. | 5,398 | 92 | ||||||||||
Kansas City Life Insurance Co. | 165 | 8 | ||||||||||
KCG Holdings, Inc. ‘A’ (a) | 1,864 | 23 | ||||||||||
Lakeland Bancorp, Inc. | 1,019 | 12 | ||||||||||
Lakeland Financial Corp. | 771 | 33 | ||||||||||
LendingTree, Inc. (a) | 295 | 23 | ||||||||||
MainSource Financial Group, Inc. | 296 | 7 | ||||||||||
MarketAxess Holdings, Inc. | 99 | 9 | ||||||||||
Marlin Business Services Corp. | 1,070 | 18 | ||||||||||
MB Financial, Inc. | 1,040 | 36 | ||||||||||
Meadowbrook Insurance Group, Inc. | 2,739 | 24 | ||||||||||
Mercury General Corp. | 2,117 | 118 | ||||||||||
Meridian Bancorp, Inc. (a) | 1,142 | 15 | ||||||||||
Metro Bancorp, Inc. | 587 | 15 | ||||||||||
National Bankshares, Inc. | 59 | 2 | ||||||||||
National Interstate Corp. | 206 | 6 | ||||||||||
National Penn Bancshares, Inc. | 2,576 | 29 | ||||||||||
National Western Life Insurance Co. ‘A’ | 188 | 45 |
52 | PIMCO EQUITY SERIES | See Accompanying Notes |
Table of Contents
June 30, 2015
SHARES | MARKET VALUE (000S) | |||||||||||
Navigators Group, Inc. (a) | 805 | $ | 62 | |||||||||
NBT Bancorp, Inc. | 2,500 | 65 | ||||||||||
Nelnet, Inc. ‘A’ | 1,424 | 62 | ||||||||||
Northwest Bancshares, Inc. | 560 | 7 | ||||||||||
OceanFirst Financial Corp. | 967 | 18 | ||||||||||
Old National Bancorp | 3,049 | 44 | ||||||||||
OneBeacon Insurance Group Ltd. | 4,381 | 64 | ||||||||||
Oppenheimer Holdings, Inc. ‘A’ | 131 | 3 | ||||||||||
Pacific Premier Bancorp, Inc. (a) | 411 | 7 | ||||||||||
Park National Corp. | 784 | 69 | ||||||||||
Park Sterling Corp. | 1,424 | 10 | ||||||||||
Peoples Bancorp, Inc. | 634 | 15 | ||||||||||
Phoenix Cos., Inc. (a) | 163 | 3 | ||||||||||
Pinnacle Financial Partners, Inc. | 532 | 29 | ||||||||||
Piper Jaffray Cos. (a) | 831 | 36 | ||||||||||
PrivateBancorp, Inc. | 309 | 12 | ||||||||||
Provident Financial Holdings, Inc. | 194 | 3 | ||||||||||
Provident Financial Services, Inc. | 4,643 | 88 | ||||||||||
RE/MAX Holdings, Inc. ‘A’ | 354 | 13 | ||||||||||
Regional Management Corp. (a) | 546 | 10 | ||||||||||
Renasant Corp. | 1,634 | 53 | ||||||||||
Republic Bancorp, Inc. | 740 | 19 | ||||||||||
S&T Bancorp, Inc. | 1,063 | 31 | ||||||||||
Safety Insurance Group, Inc. | 1,236 | 71 | ||||||||||
Sandy Spring Bancorp, Inc. | 1,515 | 42 | ||||||||||
Selective Insurance Group, Inc. | 666 | 19 | ||||||||||
Sierra Bancorp | 129 | 2 | ||||||||||
Simmons First National Corp. ‘A’ | 747 | 35 | ||||||||||
South State Corp. | 192 | 15 | ||||||||||
Southside Bancshares, Inc. | 1,132 | 33 | ||||||||||
Southwest Bancorp, Inc. | 890 | 17 | ||||||||||
Springleaf Holdings, Inc. (a) | 1,765 | 81 | ||||||||||
State Auto Financial Corp. | 543 | 13 | ||||||||||
State Bank Financial Corp. | 1,840 | 40 | ||||||||||
Sterling Bancorp | 2,537 | 37 | ||||||||||
Stock Yards Bancorp, Inc. | 1,535 | 58 | ||||||||||
Sun Bancorp, Inc. (a) | 92 | 2 | ||||||||||
Territorial Bancorp, Inc. | 987 | 24 | ||||||||||
Teton Advisors, Inc. ‘B’ | 4 | 0 | ||||||||||
TFS Financial Corp. | 1,381 | 23 | ||||||||||
Tompkins Financial Corp. | 639 | 34 | ||||||||||
Towne Bank | 1,296 | 21 | ||||||||||
TriCo Bancshares | 943 | 23 | ||||||||||
TrustCo Bank Corp. | 5,994 | 42 | ||||||||||
UCBH Holdings, Inc. | 4,193 | 0 | ||||||||||
UMB Financial Corp. | 187 | 11 | ||||||||||
Union Bankshares Corp. | 1,017 | 24 | ||||||||||
United Community Banks, Inc. | 510 | 11 | ||||||||||
United Financial Bancorp, Inc. | 1,126 | 15 | ||||||||||
United Fire Group, Inc. | 1,549 | 51 | ||||||||||
United Insurance Holdings Corp. | 777 | 12 | ||||||||||
Universal Insurance Holdings, Inc. | 5,493 | 133 | ||||||||||
Univest Corp. of Pennsylvania | 1,517 | 31 | ||||||||||
Virtus Investment Partners, Inc. | 79 | 10 | ||||||||||
WageWorks, Inc. (a) | 424 | 17 | ||||||||||
Washington Trust Bancorp, Inc. | 516 | 20 |
SHARES | MARKET VALUE (000S) | |||||||||||
Waterstone Financial, Inc. | 2,716 | $ | 36 | |||||||||
WesBanco, Inc. | 1,376 | 47 | ||||||||||
Westamerica BanCorp. | 622 | 32 | ||||||||||
Western Alliance Bancorp (a) | 351 | 12 | ||||||||||
Westwood Holdings Group, Inc. | 373 | 22 | ||||||||||
World Acceptance Corp. (a) | 1,674 | 103 | ||||||||||
WSFS Financial Corp. | 1,669 | 46 | ||||||||||
|
| |||||||||||
5,614 | ||||||||||||
|
| |||||||||||
HEALTH CARE 9.9% | ||||||||||||
Abaxis, Inc. | 290 | 15 | ||||||||||
ABIOMED, Inc. (a) | 302 | 20 | ||||||||||
Accuray, Inc. (a) | 3,122 | 21 | ||||||||||
Acorda Therapeutics, Inc. (a) | 595 | 20 | ||||||||||
Addus HomeCare Corp. (a) | 962 | 27 | ||||||||||
Affymetrix, Inc. (a) | 5,660 | 62 | ||||||||||
Air Methods Corp. (a) | 726 | 30 | ||||||||||
Albany Molecular Research, Inc. (a) | 1,072 | 22 | ||||||||||
Alliance HealthCare Services, Inc. (a) | 1,015 | 19 | ||||||||||
Almost Family, Inc. (a) | 1,648 | 66 | ||||||||||
AMAG Pharmaceuticals, Inc. (a) | 570 | 39 | ||||||||||
Amedisys, Inc. (a) | 6,514 | 259 | ||||||||||
AMN Healthcare Services, Inc. (a) | 888 | 28 | ||||||||||
Amsurg Corp. (a) | 781 | 55 | ||||||||||
Anacor Pharmaceuticals, Inc. (a) | 240 | 19 | ||||||||||
Analogic Corp. | 605 | 48 | ||||||||||
AngioDynamics, Inc. (a) | 2,562 | 42 | ||||||||||
ANI Pharmaceuticals, Inc. (a) | 221 | 14 | ||||||||||
Anika Therapeutics, Inc. (a) | 715 | 24 | ||||||||||
AtriCure, Inc. (a) | 730 | 18 | ||||||||||
Bio-Reference Laboratories, Inc. (a) | 950 | 39 | ||||||||||
BioDelivery Sciences International, Inc. (a) | 1,824 | 15 | ||||||||||
BioScrip, Inc. (a) | 10,618 | 39 | ||||||||||
BioTelemetry, Inc. (a) | 4,426 | 42 | ||||||||||
Bruker Corp. (a) | 2,491 | 51 | ||||||||||
Cambrex Corp. (a) | 1,767 | 78 | ||||||||||
Cantel Medical Corp. | 516 | 28 | ||||||||||
Capital Senior Living Corp. (a) | 353 | 9 | ||||||||||
Cardiovascular Systems, Inc. (a) | 614 | 16 | ||||||||||
Catalent, Inc. (a) | 774 | 23 | ||||||||||
Chelsea Therapeutics International | 5,771 | 0 | ||||||||||
Chemed Corp. | 1,809 | 237 | ||||||||||
Civitas Solutions, Inc. (a) | 322 | 7 | ||||||||||
CONMED Corp. | 1,344 | 78 | ||||||||||
CorVel Corp. (a) | 596 | 19 | ||||||||||
Cross Country Healthcare, Inc. (a) | 2,574 | 33 | ||||||||||
CryoLife, Inc. | 2,070 | 23 | ||||||||||
Cyberonics, Inc. (a) | 660 | 39 | ||||||||||
Cynosure, Inc. (a) | 361 | 14 | ||||||||||
Depomed, Inc. (a) | 1,872 | 40 | ||||||||||
Emergent BioSolutions, Inc. (a) | 3,412 | 112 | ||||||||||
Ensign Group, Inc. | 316 | 16 | ||||||||||
Enzo Biochem, Inc. (a) | 1,645 | 5 | ||||||||||
Exactech, Inc. (a) | 323 | 7 | ||||||||||
ExamWorks Group, Inc. (a) | 265 | 10 |
SHARES | MARKET VALUE (000S) | |||||||||||
Five Star Quality Care, Inc. (a) | 3,442 | $ | 17 | |||||||||
Genesis Healthcare, Inc. (a) | 2,325 | 15 | ||||||||||
Geron Corp. (a) | 1,705 | 7 | ||||||||||
Globus Medical, Inc. (a) | 3,401 | 87 | ||||||||||
Greatbatch, Inc. (a) | 2,161 | 117 | ||||||||||
Haemonetics Corp. (a) | 1,387 | 57 | ||||||||||
Hanger, Inc. (a) | 4,682 | 110 | ||||||||||
Healthways, Inc. (a) | 4,620 | 55 | ||||||||||
HeartWare International, Inc. (a) | 172 | 13 | ||||||||||
HMS Holdings Corp. (a) | 1,234 | 21 | ||||||||||
ICU Medical, Inc. (a) | 331 | 32 | ||||||||||
Impax Laboratories, Inc. (a) | 2,271 | 104 | ||||||||||
Insulet Corp. (a) | 516 | 16 | ||||||||||
Integra LifeSciences Holdings Corp. (a) | 1,706 | 115 | ||||||||||
Invacare Corp. | 2,679 | 58 | ||||||||||
IPC Healthcare, Inc. (a) | 485 | 27 | ||||||||||
Ironwood Pharmaceuticals, Inc. (a) | 706 | 9 | ||||||||||
KYTHERA Biopharmaceuticals, Inc. (a) | 271 | 20 | ||||||||||
Lannett Co., Inc. (a) | 591 | 35 | ||||||||||
LHC Group, Inc. (a) | 1,328 | 51 | ||||||||||
Luminex Corp. (a) | 1,082 | 19 | ||||||||||
Masimo Corp. (a) | 2,696 | 104 | ||||||||||
Medcath Corp. (a) | 418 | 0 | ||||||||||
Medicines Co. (a) | 1,748 | 50 | ||||||||||
Meridian Bioscience, Inc. | 741 | 14 | ||||||||||
Merit Medical Systems, Inc. (a) | 2,107 | 45 | ||||||||||
Molina Healthcare, Inc. (a) | 1,608 | 113 | ||||||||||
Myriad Genetics, Inc. (a) | 680 | 23 | ||||||||||
National HealthCare Corp. | 300 | 20 | ||||||||||
Natus Medical, Inc. (a) | 2,167 | 92 | ||||||||||
Nektar Therapeutics (a) | 1,139 | 14 | ||||||||||
Neogen Corp. (a) | 553 | 26 | ||||||||||
NuVasive, Inc. (a) | 3,150 | 149 | ||||||||||
NxStage Medical, Inc. (a) | 1,133 | 16 | ||||||||||
OraSure Technologies, Inc. (a) | 1,543 | 8 | ||||||||||
PDL BioPharma, Inc. | 19,268 | 124 | ||||||||||
PharMerica Corp. (a) | 3,977 | 132 | ||||||||||
POZEN, Inc. (a) | 1,458 | 15 | ||||||||||
Premier, Inc. (a) | 683 | 26 | ||||||||||
Prestige Brands Holdings, Inc. (a) | 1,394 | 64 | ||||||||||
Providence Service Corp. (a) | 657 | 29 | ||||||||||
Quidel Corp. (a) | 802 | 18 | ||||||||||
RadNet, Inc. (a) | 8,250 | 55 | ||||||||||
Repligen Corp. (a) | 704 | 29 | ||||||||||
Rigel Pharmaceuticals, Inc. (a) | 1,994 | 6 | ||||||||||
RTI Surgical, Inc. (a) | 5,472 | 35 | ||||||||||
Sagent Pharmaceuticals, Inc. (a) | 294 | 7 | ||||||||||
SciClone Pharmaceuticals, Inc. (a) | 1,658 | 16 | ||||||||||
Select Medical Holdings Corp. | 13,163 | 213 | ||||||||||
Spectranetics Corp. (a) | 348 | 8 | ||||||||||
Spectrum Pharmaceuticals, Inc. (a) | 2,518 | 17 | ||||||||||
Surgical Care Affiliates, Inc. (a) | 1,003 | 38 | ||||||||||
SurModics, Inc. (a) | 1,608 | 38 | ||||||||||
Thoratec Corp. (a) | 1,392 | 62 | ||||||||||
Universal American Corp. (a) | 4,682 | 47 | ||||||||||
Vascular Solutions, Inc. (a) | 945 | 33 |
See Accompanying Notes | ANNUAL REPORT | JUNE 30, 2015 | 53 |
Table of Contents
Schedule of Investments PIMCO RAE Fundamental US Small Fund (Cont.)
SHARES | MARKET VALUE (000S) | |||||||||||
Wright Medical Group, Inc. (a) | 2,953 | $ | 78 | |||||||||
Zeltiq Aesthetics, Inc. (a) | 1,004 | 30 | ||||||||||
|
| |||||||||||
4,607 | ||||||||||||
|
| |||||||||||
INDUSTRIALS 13.3% | ||||||||||||
AAR Corp. | 3,239 | 103 | ||||||||||
ABM Industries, Inc. | 2,887 | 95 | ||||||||||
Actuant Corp. | 2,271 | 52 | ||||||||||
Advisory Board Co. (a) | 574 | 31 | ||||||||||
Aegion Corp. (a) | 1,200 | 23 | ||||||||||
Aerovironment, Inc. (a) | 899 | 23 | ||||||||||
Air Transport Services Group, Inc. (a) | 4,913 | 52 | ||||||||||
Albany International Corp. ‘A’ | 2,000 | 80 | ||||||||||
Allegiant Travel Co. | 173 | 31 | ||||||||||
Altra Industrial Motion Corp. | 1,324 | 36 | ||||||||||
AMERCO | 263 | 86 | ||||||||||
American Science & Engineering, Inc. | 918 | 40 | ||||||||||
Applied Industrial Technologies, Inc. | 1,632 | 65 | ||||||||||
ARC Document Solutions, Inc. (a) | 6,350 | 48 | ||||||||||
ArcBest Corp. | 675 | 21 | ||||||||||
Argan, Inc. | 403 | 16 | ||||||||||
Astec Industries, Inc. | 1,031 | 43 | ||||||||||
Astronics Corp. (a) | 301 | 21 | ||||||||||
Atlas Air Worldwide Holdings, Inc. (a) | 603 | 33 | ||||||||||
AZZ, Inc. | 292 | 15 | ||||||||||
Barnes Group, Inc. | 2,469 | 96 | ||||||||||
Beacon Roofing Supply, Inc. (a) | 1,768 | 59 | ||||||||||
Blount International, Inc. (a) | 4,018 | 44 | ||||||||||
Brady Corp. ‘A’ | 2,027 | 50 | ||||||||||
Briggs & Stratton Corp. | 3,938 | 76 | ||||||||||
Casella Waste Systems, Inc. (a) | 3,107 | 17 | ||||||||||
CBIZ, Inc. (a) | 6,511 | 63 | ||||||||||
CDI Corp. | 1,719 | 22 | ||||||||||
CEB, Inc. | 152 | 13 | ||||||||||
Cenveo, Inc. (a) | 9,231 | 20 | ||||||||||
Chart Industries, Inc. (a) | 1,611 | 58 | ||||||||||
CIRCOR International, Inc. | 360 | 20 | ||||||||||
Columbus McKinnon Corp. | 1,028 | 26 | ||||||||||
Comfort Systems USA, Inc. | 2,979 | 68 | ||||||||||
Covenant Transportation Group, Inc. ‘A’ (a) | 792 | 20 | ||||||||||
CRA International, Inc. (a) | 1,183 | 33 | ||||||||||
Cubic Corp. | 1,085 | 52 | ||||||||||
Dorian LPG Ltd. (a) | 507 | 8 | ||||||||||
Ducommun, Inc. (a) | 895 | 23 | ||||||||||
DXP Enterprises, Inc. (a) | 318 | 15 | ||||||||||
Dycom Industries, Inc. (a) | 1,765 | 104 | ||||||||||
Dynamic Materials Corp. | 480 | 5 | ||||||||||
Echo Global Logistics, Inc. (a) | 771 | 25 | ||||||||||
Encore Wire Corp. | 375 | 17 | ||||||||||
Ennis, Inc. | 2,951 | 55 | ||||||||||
EnPro Industries, Inc. | 1,347 | 77 | ||||||||||
Era Group, Inc. (a) | 920 | 19 | ||||||||||
ESCO Technologies, Inc. | 991 | 37 | ||||||||||
Essendant, Inc. | 1,078 | 42 | ||||||||||
Exponent, Inc. | 1,388 | 62 |
SHARES | MARKET VALUE (000S) | |||||||||||
Federal Signal Corp. | 1,086 | $ | 16 | |||||||||
Fluidigm Corp. (a) | 374 | 9 | ||||||||||
Forward Air Corp. | 858 | 45 | ||||||||||
Franklin Covey Co. (a) | 1,342 | 27 | ||||||||||
Franklin Electric Co., Inc. | 736 | 24 | ||||||||||
FreightCar America, Inc. | 744 | 16 | ||||||||||
Global Brass & Copper Holdings, Inc. | 1,694 | 29 | ||||||||||
Global Power Equipment Group, Inc. | 997 | 8 | ||||||||||
Gorman-Rupp Co. | 558 | 16 | ||||||||||
GrafTech International Ltd. (a) | 4,396 | 22 | ||||||||||
Granite Construction, Inc. | 2,106 | 75 | ||||||||||
Great Lakes Dredge & Dock Corp. (a) | 3,766 | 22 | ||||||||||
Greenbrier Cos., Inc. | 671 | 31 | ||||||||||
H&E Equipment Services, Inc. | 1,702 | 34 | ||||||||||
Hardinge, Inc. | 345 | 3 | ||||||||||
Hawaiian Holdings, Inc. (a) | 9,724 | 231 | ||||||||||
Healthcare Services Group, Inc. | 566 | 19 | ||||||||||
Heartland Express, Inc. | 5,098 | 103 | ||||||||||
Heidrick & Struggles International, Inc. | 2,739 | 71 | ||||||||||
Hill International, Inc. (a) | 5,104 | 27 | ||||||||||
Hillenbrand, Inc. | 2,903 | 89 | ||||||||||
Hornbeck Offshore Services, Inc. (a) | 2,184 | 45 | ||||||||||
Houston Wire & Cable Co. | 956 | 10 | ||||||||||
Hub Group, Inc. ‘A’ (a) | 668 | 27 | ||||||||||
Hurco Cos., Inc. | 578 | 20 | ||||||||||
Huron Consulting Group, Inc. (a) | 1,040 | 73 | ||||||||||
Hyster-Yale Materials Handling, Inc. | 415 | 29 | ||||||||||
ICF International, Inc. (a) | 2,269 | 79 | ||||||||||
Insperity, Inc. | 2,160 | 110 | ||||||||||
Insteel Industries, Inc. | 337 | 6 | ||||||||||
John Bean Technologies Corp. | 1,122 | 42 | ||||||||||
Kadant, Inc. | 843 | 40 | ||||||||||
Kaman Corp. | 1,559 | 65 | ||||||||||
Kelly Services, Inc. | 3,166 | 49 | ||||||||||
Kforce, Inc. | 3,036 | 69 | ||||||||||
Knight Transportation, Inc. | 4,308 | 115 | ||||||||||
Korn/Ferry International | 2,276 | 79 | ||||||||||
Kratos Defense & Security Solutions, Inc. (a) | 5,436 | 34 | ||||||||||
Layne Christensen Co. (a) | 2,444 | 22 | ||||||||||
LB Foster Co. | 530 | 18 | ||||||||||
Lindsay Corp. | 194 | 17 | ||||||||||
Lydall, Inc. (a) | 1,007 | 30 | ||||||||||
Marten Transport Ltd. | 1,591 | 35 | ||||||||||
MasTec, Inc. (a) | 3,423 | 68 | ||||||||||
Matson, Inc. | 1,170 | 49 | ||||||||||
Matthews International Corp. | 2,076 | 110 | ||||||||||
McGrath RentCorp | 1,912 | 58 | ||||||||||
Mesa Air Group, Inc. | 17,303 | 0 | ||||||||||
Mistras Group, Inc. (a) | 575 | 11 | ||||||||||
MSA Safety, Inc. | 882 | 43 | ||||||||||
Mueller Industries, Inc. | 2,216 | 77 | ||||||||||
Mueller Water Products, Inc. | 1,871 | 17 | ||||||||||
Multi-Color Corp. | 569 | 36 | ||||||||||
MYR Group, Inc. (a) | 1,060 | 33 | ||||||||||
National Presto Industries, Inc. | 838 | 67 |
SHARES | MARKET VALUE (000S) | |||||||||||
Navigant Consulting, Inc. (a) | 4,537 | $ | 67 | |||||||||
NN, Inc. | 595 | 15 | ||||||||||
Northwest Pipe Co. (a) | 720 | 15 | ||||||||||
On Assignment, Inc. (a) | 400 | 16 | ||||||||||
Orion Marine Group, Inc. (a) | 1,808 | 13 | ||||||||||
PAM Transportation Services, Inc. (a) | 267 | 16 | ||||||||||
Park-Ohio Holdings Corp. | 362 | 18 | ||||||||||
Polypore International, Inc. (a) | 1,297 | 78 | ||||||||||
Powell Industries, Inc. | 577 | 20 | ||||||||||
Quad/Graphics, Inc. | 946 | 18 | ||||||||||
Quality Distribution, Inc. (a) | 620 | 10 | ||||||||||
Raven Industries, Inc. | 1,021 | 21 | ||||||||||
RBC Bearings, Inc. (a) | 566 | 41 | ||||||||||
Resources Connection, Inc. | 3,034 | 49 | ||||||||||
Rexnord Corp. (a) | 2,159 | 52 | ||||||||||
Roadrunner Transportation Systems, Inc. (a) | 334 | 9 | ||||||||||
Rollins, Inc. | 2,605 | 74 | ||||||||||
RPX Corp. (a) | 1,218 | 21 | ||||||||||
RR Donnelley & Sons Co. | 111 | 2 | ||||||||||
Saia, Inc. (a) | 1,507 | 59 | ||||||||||
Sparton Corp. (a) | 705 | 19 | ||||||||||
Standex International Corp. | 375 | 30 | ||||||||||
Sterling Construction Co., Inc. (a) | 1,136 | 5 | ||||||||||
Sun Hydraulics Corp. | 386 | 15 | ||||||||||
Swift Transportation Co. (a) | 1,054 | 24 | ||||||||||
TAL International Group, Inc. | 2,498 | 79 | ||||||||||
TASER International, Inc. (a) | 1,261 | 42 | ||||||||||
Team, Inc. (a) | 631 | 25 | ||||||||||
Tennant Co. | 665 | 43 | ||||||||||
Tetra Tech, Inc. | 1,773 | 45 | ||||||||||
Titan Machinery, Inc. (a) | 867 | 13 | ||||||||||
TriMas Corp. (a) | 1,598 | 47 | ||||||||||
TrueBlue, Inc. (a) | 1,399 | 42 | ||||||||||
Tutor Perini Corp. (a) | 1,405 | 30 | ||||||||||
Twin Disc, Inc. | 580 | 11 | ||||||||||
U.S. Ecology, Inc. | 714 | 35 | ||||||||||
USA Truck, Inc. (a) | 503 | 11 | ||||||||||
UTi Worldwide, Inc. (a) | 6,809 | 68 | ||||||||||
Veritiv Corp. (a) | 585 | 21 | ||||||||||
Viad Corp. | 1,268 | 34 | ||||||||||
Vicor Corp. (a) | 1,191 | 15 | ||||||||||
Watts Water Technologies, Inc. | 1,762 | 91 | ||||||||||
Werner Enterprises, Inc. | 2,985 | 78 | ||||||||||
Xerium Technologies, Inc. (a) | 4,843 | 88 | ||||||||||
|
| |||||||||||
6,165 | ||||||||||||
|
| |||||||||||
INFORMATION TECHNOLOGY 19.6% | ||||||||||||
ACI Worldwide, Inc. (a) | 2,946 | 72 | ||||||||||
Acxiom Corp. (a) | 3,087 | 54 | ||||||||||
ADTRAN, Inc. | 4,617 | 75 | ||||||||||
Advanced Energy Industries, Inc. (a) | 2,174 | 60 | ||||||||||
Advent Software, Inc. | 1,682 | 74 | ||||||||||
Agilysys, Inc. (a) | 705 | 6 | ||||||||||
Alpha & Omega Semiconductor Ltd. (a) | 1,081 | 9 | ||||||||||
Ambarella, Inc. (a) | 452 | 46 |
54 | PIMCO EQUITY SERIES | See Accompanying Notes |
Table of Contents
June 30, 2015
SHARES | MARKET VALUE (000S) | |||||||||||
Amkor Technology, Inc. (a) | 14,985 | $ | 90 | |||||||||
Applied Micro Circuits Corp. (a) | 1,263 | 9 | ||||||||||
Arista Networks, Inc. (a) | 221 | 18 | ||||||||||
Avid Technology, Inc. (a) | 1,120 | 15 | ||||||||||
AVX Corp. | 4,126 | 56 | ||||||||||
Axcelis Technologies, Inc. (a) | 6,645 | 20 | ||||||||||
Badger Meter, Inc. | 435 | 28 | ||||||||||
Bankrate, Inc. (a) | 2,457 | 26 | ||||||||||
Bel Fuse, Inc. ‘B’ | 842 | 17 | ||||||||||
Benchmark Electronics, Inc. (a) | 4,637 | 101 | ||||||||||
Black Box Corp. | 1,129 | 23 | ||||||||||
Blackbaud, Inc. | 1,668 | 95 | ||||||||||
Blucora, Inc. (a) | 1,866 | 30 | ||||||||||
Bottomline Technologies de, Inc. (a) | 658 | 18 | ||||||||||
BroadSoft, Inc. (a) | 415 | 14 | ||||||||||
Brooks Automation, Inc. | 4,104 | 47 | ||||||||||
Cabot Microelectronics Corp. (a) | 2,185 | 103 | ||||||||||
Calix, Inc. (a) | 2,168 | 17 | ||||||||||
Callidus Software, Inc. (a) | 675 | 11 | ||||||||||
Checkpoint Systems, Inc. | 1,771 | 18 | ||||||||||
Ciber, Inc. (a) | 7,481 | 26 | ||||||||||
Ciena Corp. (a) | 2,197 | 52 | ||||||||||
Cirrus Logic, Inc. (a) | 4,806 | 164 | ||||||||||
Coherent, Inc. (a) | 1,136 | 72 | ||||||||||
Cohu, Inc. | 1,372 | 18 | ||||||||||
CommScope Holding Co., Inc. (a) | 2,805 | 86 | ||||||||||
CommVault Systems, Inc. (a) | 504 | 21 | ||||||||||
comScore, Inc. (a) | 1,286 | 68 | ||||||||||
Comtech Telecommunications Corp. | 1,747 | 51 | ||||||||||
Comverse, Inc. (a) | 475 | 10 | ||||||||||
Constant Contact, Inc. (a) | 1,263 | 36 | ||||||||||
Cray, Inc. (a) | 1,250 | 37 | ||||||||||
CSG Systems International, Inc. | 3,242 | 103 | ||||||||||
CTS Corp. | 2,527 | 49 | ||||||||||
Cypress Semiconductor Corp. | 7,524 | 88 | ||||||||||
Daktronics, Inc. | 3,438 | 41 | ||||||||||
Datalink Corp. (a) | 2,819 | 25 | ||||||||||
Dealertrack Technologies, Inc. (a) | 689 | 43 | ||||||||||
DHI Group, Inc. (a) | 5,575 | 50 | ||||||||||
Digi International, Inc. (a) | 2,602 | 25 | ||||||||||
Diodes, Inc. (a) | 2,419 | 58 | ||||||||||
Dolby Laboratories, Inc. ‘A’ | 3,148 | 125 | ||||||||||
Dot Hill Systems Corp. (a) | 3,646 | 22 | ||||||||||
DSP Group, Inc. (a) | 3,121 | 32 | ||||||||||
DTS, Inc. (a) | 717 | 22 | ||||||||||
EarthLink Holdings Corp. | 10,409 | 78 | ||||||||||
Eastman Kodak Co. (a) | 488 | 8 | ||||||||||
Ebix, Inc. | 1,368 | 45 | ||||||||||
Electro Scientific Industries, Inc. | 2,692 | 14 | ||||||||||
Electronics For Imaging, Inc. (a) | 2,604 | 113 | ||||||||||
Engility Holdings, Inc. | 1,533 | 39 | ||||||||||
Entegris, Inc. (a) | 4,005 | 58 | ||||||||||
Envestnet, Inc. (a) | 447 | 18 | ||||||||||
EPAM Systems, Inc. (a) | 816 | 58 | ||||||||||
Epiq Systems, Inc. | 1,905 | 32 | ||||||||||
ePlus, Inc. (a) | 515 | 39 |
SHARES | MARKET VALUE (000S) | |||||||||||
ExlService Holdings, Inc. (a) | 681 | $ | 24 | |||||||||
Extreme Networks, Inc. (a) | 18,276 | 49 | ||||||||||
Fair Isaac Corp. | 1,217 | 110 | ||||||||||
Fairchild Semiconductor International, Inc. (a) | 6,638 | 115 | ||||||||||
FARO Technologies, Inc. (a) | 765 | 36 | ||||||||||
Finisar Corp. (a) | 2,244 | 40 | ||||||||||
FormFactor, Inc. (a) | 2,184 | 20 | ||||||||||
Freescale Semiconductor Ltd. (a) | 2,866 | 115 | ||||||||||
Glu Mobile, Inc. (a) | 3,636 | 23 | ||||||||||
GSI Group, Inc. (a) | 2,305 | 35 | ||||||||||
GTT Communications, Inc. (a) | 640 | 15 | ||||||||||
Harmonic, Inc. (a) | 15,105 | 103 | ||||||||||
iGate Corp. (a) | 575 | 27 | ||||||||||
II-VI, Inc. (a) | 2,948 | 56 | ||||||||||
Imation Corp. (a) | 4,440 | 18 | ||||||||||
Imperva, Inc. (a) | 183 | 12 | ||||||||||
Infinera Corp. (a) | 2,073 | 43 | ||||||||||
Insight Enterprises, Inc. (a) | 3,672 | 110 | ||||||||||
Integrated Device Technology, Inc. (a) | 5,222 | 113 | ||||||||||
Integrated Silicon Solution, Inc. | 2,526 | 56 | ||||||||||
Interactive Intelligence Group, Inc. (a) | 325 | 14 | ||||||||||
InterDigital, Inc. | 3,302 | 188 | ||||||||||
Internap Corp. (a) | 3,173 | 29 | ||||||||||
Intersil Corp. | 6,101 | 76 | ||||||||||
Intralinks Holdings, Inc. (a) | 3,868 | 46 | ||||||||||
InvenSense, Inc. (a) | 1,007 | 15 | ||||||||||
IPG Photonics Corp. (a) | 115 | 10 | ||||||||||
Itron, Inc. (a) | 1,906 | 66 | ||||||||||
Ixia (a) | 5,627 | 70 | ||||||||||
IXYS Corp. | 2,969 | 45 | ||||||||||
j2 Global, Inc. | 1,037 | 70 | ||||||||||
Kemet Corp. (a) | 1,123 | 3 | ||||||||||
Lattice Semiconductor Corp. (a) | 9,488 | 56 | ||||||||||
Limelight Networks, Inc. (a) | 2,073 | 8 | ||||||||||
Lionbridge Technologies, Inc. (a) | 4,395 | 27 | ||||||||||
Liquidity Services, Inc. (a) | 3,443 | 33 | ||||||||||
Littelfuse, Inc. | 618 | 59 | ||||||||||
LivePerson, Inc. (a) | 1,320 | 13 | ||||||||||
LogMeIn, Inc. (a) | 1,018 | 66 | ||||||||||
M/A-COM Technology Solutions Holdings, Inc. (a) | 393 | 15 | ||||||||||
Manhattan Associates, Inc. (a) | 841 | 50 | ||||||||||
ManTech International Corp. | 2,751 | 80 | ||||||||||
Maxwell Technologies, Inc. (a) | 2,167 | 13 | ||||||||||
MedAssets, Inc. (a) | 4,685 | 103 | ||||||||||
Medidata Solutions, Inc. (a) | 231 | 13 | ||||||||||
Mentor Graphics Corp. | 613 | 16 | ||||||||||
Mercury Systems, Inc. (a) | 2,453 | 36 | ||||||||||
Merge Healthcare, Inc. (a) | 2,660 | 13 | ||||||||||
Methode Electronics, Inc. | 844 | 23 | ||||||||||
Micrel, Inc. | 4,949 | 69 | ||||||||||
Microsemi Corp. (a) | 1,732 | 61 | ||||||||||
MicroStrategy, Inc. ‘A’ (a) | 324 | 55 | ||||||||||
MKS Instruments, Inc. | 2,745 | 104 | ||||||||||
ModusLink Global Solutions, Inc. (a) | 1,177 | 4 | ||||||||||
Monolithic Power Systems, Inc. | 1,087 | 55 |
SHARES | MARKET VALUE (000s) | |||||||||||
Monotype Imaging Holdings, Inc. | 1,240 | $ | 30 | |||||||||
MTS Systems Corp. | 982 | 68 | ||||||||||
Multi-Fineline Electronix, Inc. (a) | 556 | 12 | ||||||||||
Nanometrics, Inc. (a) | 1,740 | 28 | ||||||||||
NETGEAR, Inc. (a) | 3,544 | 106 | ||||||||||
NetScout Systems, Inc. (a) | 1,862 | 68 | ||||||||||
NeuStar, Inc. (a) | 688 | 20 | ||||||||||
Newport Corp. (a) | 3,302 | 63 | ||||||||||
NIC, Inc. | 971 | 18 | ||||||||||
Oclaro, Inc. (a) | 8,765 | 20 | ||||||||||
Omnicell, Inc. (a) | 1,591 | 60 | ||||||||||
OmniVision Technologies, Inc. (a) | 4,239 | 111 | ||||||||||
OSI Systems, Inc. (a) | 467 | 33 | ||||||||||
Park Electrochemical Corp. | 961 | 18 | ||||||||||
PC Connection, Inc. | 1,945 | 48 | ||||||||||
Pegasystems, Inc. | 1,644 | 38 | ||||||||||
Perficient, Inc. (a) | 557 | 11 | ||||||||||
Pericom Semiconductor Corp. | 789 | 10 | ||||||||||
Photronics, Inc. (a) | 7,656 | 73 | ||||||||||
Plantronics, Inc. | 1,394 | 79 | ||||||||||
Plexus Corp. (a) | 1,925 | 84 | ||||||||||
PMC-Sierra, Inc. (a) | 9,410 | 81 | ||||||||||
Power Integrations, Inc. | 924 | 42 | ||||||||||
Progress Software Corp. (a) | 3,986 | 110 | ||||||||||
PROS Holdings, Inc. (a) | 456 | 10 | ||||||||||
QAD, Inc. | 120 | 3 | ||||||||||
Qlik Technologies, Inc. (a) | 552 | 19 | ||||||||||
Quality Systems, Inc. | 3,622 | 60 | ||||||||||
Qualys, Inc. (a) | 285 | 12 | ||||||||||
Quantum Corp. (a) | 11,161 | 19 | ||||||||||
QuinStreet, Inc. (a) | 2,206 | 14 | ||||||||||
Rambus, Inc. (a) | 2,361 | 34 | ||||||||||
RealD, Inc. (a) | 1,110 | 14 | ||||||||||
RealNetworks, Inc. (a) | 4,409 | 24 | ||||||||||
RealPage, Inc. (a) | 610 | 12 | ||||||||||
Rofin-Sinar Technologies, Inc. (a) | 2,403 | 66 | ||||||||||
Rogers Corp. (a) | 567 | 38 | ||||||||||
Rosetta Stone, Inc. (a) | 2,595 | 21 | ||||||||||
Rovi Corp. (a) | 5,450 | 87 | ||||||||||
Ruckus Wireless, Inc. (a) | 590 | 6 | ||||||||||
Rudolph Technologies, Inc. (a) | 2,020 | 24 | ||||||||||
Sanmina Corp. (a) | 4,368 | 88 | ||||||||||
ScanSource, Inc. (a) | 1,162 | 44 | ||||||||||
Science Applications International Corp. | 2,322 | 123 | ||||||||||
Seachange International, Inc. (a) | 2,978 | 21 | ||||||||||
Semtech Corp. (a) | 845 | 17 | ||||||||||
ShoreTel, Inc. (a) | 3,708 | 25 | ||||||||||
Shutterstock, Inc. (a) | 140 | 8 | ||||||||||
Sigma Designs, Inc. (a) | 3,613 | 43 | ||||||||||
Silicon Graphics International Corp. (a) | 2,480 | 16 | ||||||||||
Silicon Laboratories, Inc. (a) | 1,430 | 77 | ||||||||||
Sonus Networks, Inc. (a) | 3,295 | 23 | ||||||||||
Stamps.com, Inc. (a) | 223 | 16 | ||||||||||
SunPower Corp. (a) | 1,276 | 36 | ||||||||||
Super Micro Computer, Inc. (a) | 1,689 | 50 |
See Accompanying Notes | ANNUAL REPORT | JUNE 30, 2015 | 55 |
Table of Contents
Schedule of Investments PIMCO RAE Fundamental US Small Fund (Cont.)
SHARES | MARKET VALUE (000S) | |||||||||||
Sykes Enterprises, Inc. (a) | 4,060 | $ | 98 | |||||||||
Synaptics, Inc. (a) | 527 | 46 | ||||||||||
Synchronoss Technologies, Inc. (a) | 550 | 25 | ||||||||||
Syntel, Inc. (a) | 484 | 23 | ||||||||||
Take-Two Interactive Software, Inc. (a) | 2,248 | 62 | ||||||||||
TechTarget, Inc. (a) | 968 | 9 | ||||||||||
TeleCommunication Systems, Inc. (a) | 3,215 | 11 | ||||||||||
Telenav, Inc. (a) | 3,139 | 25 | ||||||||||
TeleTech Holdings, Inc. | 2,148 | 58 | ||||||||||
TESSCO Technologies, Inc. | 316 | 6 | ||||||||||
Tessera Technologies, Inc. | 2,222 | 84 | ||||||||||
THQ, Inc. (a) | 18 | 0 | ||||||||||
TiVo, Inc. (a) | 1,239 | 13 | ||||||||||
Travelzoo, Inc. (a) | 755 | 9 | ||||||||||
TTM Technologies, Inc. (a) | 9,837 | 98 | ||||||||||
Ultra Clean Holdings, Inc. (a) | 1,280 | 8 | ||||||||||
Ultratech, Inc. (a) | 834 | 15 | ||||||||||
United Online, Inc. (a) | 1,928 | 30 | ||||||||||
Unwired Planet, Inc. (a) | 5,831 | 4 | ||||||||||
VASCO Data Security International, Inc. (a) | 2,705 | 82 | ||||||||||
Veeco Instruments, Inc. (a) | 1,409 | 41 | ||||||||||
Veeva Systems, Inc. (a) | 559 | 16 | ||||||||||
Virtusa Corp. (a) | 492 | 25 | ||||||||||
Vishay Precision Group, Inc. (a) | 678 | 10 | ||||||||||
Web.com Group, Inc. (a) | 540 | 13 | ||||||||||
WebMD Health Corp. (a) | 3,067 | 136 | ||||||||||
Xcerra Corp. (a) | 3,538 | 27 | ||||||||||
XO Group, Inc. (a) | 2,558 | 42 | ||||||||||
Zynga, Inc. ‘A’ (a) | 37,184 | 106 | ||||||||||
|
| |||||||||||
9,105 | ||||||||||||
|
| |||||||||||
MATERIALS 5.6% | ||||||||||||
A Schulman, Inc. | 1,480 | 65 | ||||||||||
AAON, Inc. | 650 | 15 | ||||||||||
AEP Industries, Inc. (a) | 533 | 29 | ||||||||||
AK Steel Holding Corp. (a) | 1,435 | 6 | ||||||||||
AM Castle & Co. (a) | 1,314 | 8 | ||||||||||
American Vanguard Corp. | 1,425 | 20 | ||||||||||
Ampco-Pittsburgh Corp. | 369 | 6 | ||||||||||
Apogee Enterprises, Inc. | 614 | 32 | ||||||||||
Axalta Coating Systems Ltd. (a) | 200 | 7 | ||||||||||
Balchem Corp. | 702 | 39 | ||||||||||
Boise Cascade Co. (a) | 992 | 36 | ||||||||||
Builders FirstSource, Inc. (a) | 496 | 6 | ||||||||||
Calgon Carbon Corp. | 1,266 | 25 | ||||||||||
Carpenter Technology Corp. | 951 | 37 | ||||||||||
Century Aluminum Co. (a) | 3,494 | 36 | ||||||||||
Chemtura Corp. (a) | 2,491 | 71 | ||||||||||
Clearwater Paper Corp. (a) | 1,914 | 110 | ||||||||||
Ferro Corp. (a) | 5,320 | 89 | ||||||||||
Flotek Industries, Inc. (a) | 1,426 | 18 | ||||||||||
FutureFuel Corp. | 1,522 | 20 | ||||||||||
Gibraltar Industries, Inc. (a) | 1,329 | 27 | ||||||||||
Globe Specialty Metals, Inc. | 1,990 | 35 |
SHARES | MARKET VALUE (000S) | |||||||||||
Gold Resource Corp. | 5,520 | $ | 15 | |||||||||
Griffon Corp. | 4,220 | 67 | ||||||||||
Hawkins, Inc. | 124 | 5 | ||||||||||
Haynes International, Inc. | 591 | 29 | ||||||||||
HB Fuller Co. | 1,249 | 51 | ||||||||||
Headwaters, Inc. (a) | 2,088 | 38 | ||||||||||
Hecla Mining Co. | 17,789 | 47 | ||||||||||
Horsehead Holding Corp. (a) | 1,583 | 19 | ||||||||||
Innophos Holdings, Inc. | 1,145 | 60 | ||||||||||
Innospec, Inc. | 1,553 | 70 | ||||||||||
Intrepid Potash, Inc. (a) | 2,587 | 31 | ||||||||||
Kaiser Aluminum Corp. | 1,396 | 116 | ||||||||||
Koppers Holdings, Inc. | 2,261 | 56 | ||||||||||
Kraton Performance Polymers, Inc. (a) | 1,510 | 36 | ||||||||||
Kronos Worldwide, Inc. | 1,784 | 20 | ||||||||||
Louisiana-Pacific Corp. (a) | 1,045 | 18 | ||||||||||
LSB Industries, Inc. (a) | 892 | 36 | ||||||||||
LSI Industries, Inc. | 536 | 5 | ||||||||||
Materion Corp. | 2,027 | 71 | ||||||||||
Minerals Technologies, Inc. | 244 | 17 | ||||||||||
Myers Industries, Inc. | 2,038 | 39 | ||||||||||
Neenah Paper, Inc. | 872 | 51 | ||||||||||
Noranda Aluminum Holding Corp. | 8,063 | 7 | ||||||||||
Nortek, Inc. (a) | 774 | 64 | ||||||||||
Olympic Steel, Inc. | 544 | 9 | ||||||||||
OM Group, Inc. | 4,146 | 139 | ||||||||||
OMNOVA Solutions, Inc. (a) | 3,377 | 25 | ||||||||||
PGT, Inc. (a) | 802 | 12 | ||||||||||
PH Glatfelter Co. | 2,827 | 62 | ||||||||||
Ply Gem Holdings, Inc. (a) | 598 | 7 | ||||||||||
Quaker Chemical Corp. | 140 | 12 | ||||||||||
Quanex Building Products Corp. | 2,182 | 47 | ||||||||||
RTI International Metals, Inc. (a) | 1,064 | 34 | ||||||||||
Ryerson Holding Corp. (a) | 894 | 8 | ||||||||||
Schnitzer Steel Industries, Inc. | 688 | 12 | ||||||||||
Schweitzer-Mauduit International, Inc. | 1,440 | 57 | ||||||||||
Shiloh Industries, Inc. (a) | 933 | 12 | ||||||||||
Simpson Manufacturing Co., Inc. | 1,537 | 52 | ||||||||||
Stepan Co. | 893 | 48 | ||||||||||
Stillwater Mining Co. (a) | 1,826 | 21 | ||||||||||
SunCoke Energy, Inc. | 3,798 | 49 | ||||||||||
Tredegar Corp. | 1,254 | 28 | ||||||||||
Trex Co., Inc. (a) | 123 | 6 | ||||||||||
Trinseo S.A. (a) | 242 | 7 | ||||||||||
Tronox Ltd. ‘A’ | 5,896 | 86 | ||||||||||
U.S. Concrete, Inc. (a) | 526 | 20 | ||||||||||
Universal Forest Products, Inc. | 415 | 22 | ||||||||||
Wausau Paper Corp. | 3,285 | 30 | ||||||||||
Worthington Industries, Inc. | 2,620 | 79 | ||||||||||
|
| |||||||||||
2,589 | ||||||||||||
|
| |||||||||||
TELECOMMUNICATION SERVICES 2.0% | ||||||||||||
Atlantic Tele-Network, Inc. | 799 | 55 | ||||||||||
Boingo Wireless, Inc. (a) | 2,025 | 17 | ||||||||||
Cogent Communications Holdings, Inc. | 1,012 | 34 |
SHARES | MARKET VALUE (000S) | |||||||||||
Consolidated Communications Holdings, Inc. | 5,353 | $ | 113 | |||||||||
Fairpoint Communications, Inc. | 3,095 | 0 | ||||||||||
FairPoint Communications, Inc. (a) | 559 | 10 | ||||||||||
General Communication, Inc. (a) | 4,703 | 80 | ||||||||||
Hawaiian Telcom Holdco, Inc. (a) | 690 | 18 | ||||||||||
IDT Corp. | 2,032 | 37 | ||||||||||
Inteliquent, Inc. | 9,194 | 169 | ||||||||||
Iridium Communications, Inc. (a) | 10,874 | 99 | ||||||||||
Lumos Networks Corp. | 1,524 | 23 | ||||||||||
NTELOS Holdings Corp. | 5,837 | 27 | ||||||||||
Premiere Global Services, Inc. (a) | 5,372 | 55 | ||||||||||
Shenandoah Telecommunications Co. | 913 | 31 | ||||||||||
Spok Holdings, Inc. | 1,746 | 29 | ||||||||||
U.S. Cellular Corp. (a) | 1,578 | 59 | ||||||||||
Vonage Holdings Corp. (a) | 16,595 | 82 | ||||||||||
|
| |||||||||||
938 | ||||||||||||
|
| |||||||||||
UTILITIES 1.6% | ||||||||||||
ALLETE, Inc. | 951 | 44 | ||||||||||
Ameresco, Inc. ‘A’ (a) | 1,526 | 12 | ||||||||||
American States Water Co. | 2,495 | 93 | ||||||||||
Atlantic Power Corp. | 9,601 | 30 | ||||||||||
California Water Service Group | 3,624 | 83 | ||||||||||
Chesapeake Utilities Corp. | 1,282 | 69 | ||||||||||
Empire District Electric Co. | 3,986 | 87 | ||||||||||
EnerNOC, Inc. (a) | 2,208 | 21 | ||||||||||
MGE Energy, Inc. | 2,221 | 86 | ||||||||||
Middlesex Water Co. | 481 | 11 | ||||||||||
New Jersey Resources Corp. | 249 | 7 | ||||||||||
Northwest Natural Gas Co. | 1,720 | 73 | ||||||||||
NRG Yield, Inc. | 558 | 12 | ||||||||||
Otter Tail Corp. | 258 | 7 | ||||||||||
Pattern Energy Group, Inc. | 255 | 7 | ||||||||||
SJW Corp. | 1,123 | 34 | ||||||||||
South Jersey Industries, Inc. | 584 | 14 | ||||||||||
Unitil Corp. | 1,137 | 38 | ||||||||||
|
| |||||||||||
728 | ||||||||||||
|
| |||||||||||
Total Common Stocks (Cost $36,286) | 43,893 | |||||||||||
|
| |||||||||||
REAL ESTATE INVESTMENT TRUSTS 4.9% | ||||||||||||
UNITED STATES 4.9% | ||||||||||||
FINANCIALS 4.9% | ||||||||||||
Acadia Realty Trust | 624 | 18 | ||||||||||
AG Mortgage Investment Trust, Inc. | 3,753 | 65 | ||||||||||
American Assets Trust, Inc. | 1,595 | 63 | ||||||||||
American Capital Mortgage Investment Corp. | 2,458 | 39 | ||||||||||
Anworth Mortgage Asset Corp. | 8,424 | 42 | ||||||||||
Apollo Commercial Real Estate Finance, Inc. | 2,513 | 41 | ||||||||||
Apollo Residential Mortgage, Inc. | 4,113 | 60 | ||||||||||
Arbor Realty Trust, Inc. | 2,405 | 16 | ||||||||||
ARMOUR Residential REIT, Inc. | 21,012 | 59 | ||||||||||
Ashford Hospitality Trust, Inc. | 6,420 | 54 | ||||||||||
Associated Estates Realty Corp. | 650 | 19 |
56 | PIMCO EQUITY SERIES | See Accompanying Notes |
Table of Contents
June 30, 2015
SHARES | MARKET VALUE (000S) | |||||||||||
Campus Crest Communities, Inc. | 1,285 | $ | 7 | |||||||||
Capstead Mortgage Corp. | 2,930 | 33 | ||||||||||
Cedar Realty Trust, Inc. | 9,331 | 60 | ||||||||||
Chambers Street Properties | 2,630 | 21 | ||||||||||
Chesapeake Lodging Trust | 822 | 25 | ||||||||||
CoreSite Realty Corp. | 321 | 15 | ||||||||||
CyrusOne, Inc. | 1,774 | 52 | ||||||||||
CYS Investments, Inc. | 12,549 | 97 | ||||||||||
DiamondRock Hospitality Co. | 6,011 | 77 | ||||||||||
DuPont Fabros Technology, Inc. | 2,303 | 68 | ||||||||||
Dynex Capital, Inc. | 3,424 | 26 | ||||||||||
EastGroup Properties, Inc. | 260 | 15 | ||||||||||
Equity One, Inc. | 863 | 20 | ||||||||||
First Industrial Realty Trust, Inc. | 2,387 | 45 | ||||||||||
First Potomac Realty Trust | 3,641 | 37 | ||||||||||
Franklin Street Properties Corp. | 3,927 | 44 | ||||||||||
Getty Realty Corp. | 1,347 | 22 | ||||||||||
Gladstone Commercial Corp. | 1,580 | 26 | ||||||||||
Government Properties Income Trust | 2,004 | 37 | ||||||||||
Healthcare Realty Trust, Inc. | 1,333 | 31 | ||||||||||
Hersha Hospitality Trust | 363 | 9 | ||||||||||
Inland Real Estate Corp. | 6,254 | 59 | ||||||||||
Investors Real Estate Trust | 6,935 | 50 | ||||||||||
iStar Financial, Inc. (a) | 3,637 | 48 |
SHARES | MARKET VALUE (000S) | |||||||||||
JAVELIN Mortgage Investment Corp. | 754 | $ | 5 | |||||||||
Kite Realty Group Trust | 580 | 14 | ||||||||||
Lexington Realty Trust | 4,636 | 39 | ||||||||||
LTC Properties, Inc. | 786 | 33 | ||||||||||
Medical Properties Trust, Inc. | 359 | 5 | ||||||||||
New York Mortgage Trust, Inc. | 1,266 | 9 | ||||||||||
One Liberty Properties, Inc. | 927 | 20 | ||||||||||
Pennsylvania Real Estate Investment Trust | 3,603 | 77 | ||||||||||
PennyMac Mortgage Investment Trust | 3,919 | 68 | ||||||||||
Potlatch Corp. | 1,610 | 57 | ||||||||||
PS Business Parks, Inc. | 236 | 17 | ||||||||||
RAIT Financial Trust | 7,288 | 45 | ||||||||||
Ramco-Gershenson Properties Trust | 1,456 | 24 | ||||||||||
Redwood Trust, Inc. | 5,094 | 80 | ||||||||||
Resource Capital Corp. | 10,537 | 41 | ||||||||||
Ryman Hospitality Properties, Inc. | 844 | 45 | ||||||||||
Sabra Health Care REIT, Inc. | 1,372 | 35 | ||||||||||
Saul Centers, Inc. | 236 | 12 | ||||||||||
Select Income REIT | 1,136 | 23 | ||||||||||
Silver Bay Realty Trust Corp. | 1,306 | 21 | ||||||||||
Starwood Waypoint Residential Trust | 282 | 7 | ||||||||||
Summit Hotel Properties, Inc. | 1,339 | 17 | ||||||||||
Sun Communities, Inc. | 244 | 15 |
SHARES | MARKET VALUE (000S) | |||||||||||
United Development Funding | 400 | $ | 7 | |||||||||
Urstadt Biddle Properties, Inc. ‘A’ | 1,584 | 30 | ||||||||||
Washington Real Estate Investment Trust | 2,089 | 54 | ||||||||||
Western Asset Mortgage Capital Corp. | 3,112 | 46 | ||||||||||
Winthrop Realty Trust | 2,167 | 33 | ||||||||||
|
| |||||||||||
2,279 | ||||||||||||
|
| |||||||||||
Total Real Estate Investment Trusts | 2,279 | |||||||||||
|
| |||||||||||
RIGHTS 0.0% | ||||||||||||
UNITED STATES 0.0% | ||||||||||||
HEALTHCARE 0.0% | ||||||||||||
BioScrip, Inc. | 30 | 0 | ||||||||||
|
| |||||||||||
Total Rights (Cost $0) | 0 | |||||||||||
|
| |||||||||||
Total Investments in Securities (Cost $38,661) | 46,172 | |||||||||||
Total Investments 99.4% (Cost $38,661) | $ | 46,172 | ||||||||||
Other Assets and Liabilities, net 0.6% | 284 | |||||||||||
|
| |||||||||||
Net Assets 100.0% | $ | 46,456 | ||||||||||
|
|
NOTES TO SCHEDULE OF INVESTMENTS (AMOUNTS IN THOUSANDS*):
* | A zero balance may reflect actual amounts rounding to less than one thousand. |
(a) | Security did not produce income within the last twelve months. |
FAIR VALUE MEASUREMENTS
The following is a summary of the fair valuations according to the inputs used as of June 30, 2015 in valuing the Fund’s assets and liabilities:
Category and Subcategory | Level 1 | Level 2 | Level 3 | Fair Value at 06/30/2015 | ||||||||||||
Investments in Securities, at Value | ||||||||||||||||
Common Stocks | ||||||||||||||||
United States | ||||||||||||||||
Consumer Discretionary | $ | 9,855 | $ | 0 | $ | 0 | $ | 9,855 | ||||||||
Consumer Staples | 2,326 | 0 | 0 | 2,326 | ||||||||||||
Energy | 1,966 | 0 | 0 | 1,966 | ||||||||||||
Financials | 5,614 | 0 | 0 | 5,614 | ||||||||||||
Health Care | 4,607 | 0 | 0 | 4,607 | ||||||||||||
Industrials | 6,165 | 0 | 0 | 6,165 |
Category and Subcategory | Level 1 | Level 2 | Level 3 | Fair Value at 06/30/2015 | ||||||||||||
Information Technology | $ | 9,105 | $ | 0 | $ | 0 | $ | 9,105 | ||||||||
Materials | 2,589 | 0 | 0 | 2,589 | ||||||||||||
Telecommunication Services | 938 | 0 | 0 | 938 | ||||||||||||
Utilities | 728 | 0 | 0 | 728 | ||||||||||||
Real Estate Investment Trusts | ||||||||||||||||
United States | ||||||||||||||||
Financials | 2,279 | 0 | 0 | 2,279 | ||||||||||||
Total Investments | $ | 46,172 | $ | 0 | $ | 0 | $ | 46,172 |
There were no significant transfers between Levels 1, 2, or 3 during the period ended June 30, 2015.
See Accompanying Notes | ANNUAL REPORT | JUNE 30, 2015 | 57 |
Table of Contents
1. ORGANIZATION
PIMCO Equity Series (the “Trust”) was established as a Delaware statutory trust on December 28, 2009. The Trust is registered under the Investment Company Act of 1940, as amended (the “Act”), as an open-end management investment company. Information presented in these financial statements pertains to the Institutional Class, Class P, Class A, and Class C shares of the funds (each a “Fund” and
collectively the “Funds”) indicated on the cover of this report. Pacific Investment Management Company LLC (“PIMCO”) serves as the investment adviser (the “Adviser”) for the Funds. Research Affiliates, LLC (“Research Affiliates”) serves as the sub-adviser for the Funds. PIMCO and Research Affiliates have also engaged Parametric Portfolio Associates, LLC to implement all or a portion of each Fund’s investment strategies.
On June 5, 2015, each Fund acquired substantially all of the assets and assumed certain liabilities of a corresponding privately offered fund managed by Research Affiliates (each, a “Predecessor Fund”) in exchange for Institutional Class shares of each Fund pursuant to the terms and conditions of an Agreement and Plan of Reorganization and Exchange. Each Predecessor Fund had an investment objective and strategies that were, in all material respects, the same as those of its corresponding Fund and was managed in a manner that, in all material respects, complied with the investment guidelines and restrictions of its corresponding Fund. However, the Predecessor Funds were not registered as investment companies under the Act, and were not subject to certain investment limitations, diversification requirements, liquidity requirements and other restrictions imposed by the Act and the Internal Revenue Code (the “Code”). This transaction was structured to qualify as a tax-free transaction under the Code. The investment portfolio of each Predecessor Fund was the principal asset acquired by its corresponding Fund. In connection with the reorganization, each Predecessor Fund and its corresponding Fund valued its respective securities and other assets pursuant to the same valuation procedures. For financial statement purposes, assets received and shares issued by each Fund were recorded at fair value, and each Fund recorded the cost of such investments at their historical cost as recorded by its corresponding Predecessor Fund. The cost basis of the investments received from each Predecessor Fund was carried forward to align ongoing reporting of its corresponding Fund’s realized and unrealized gains and losses with amounts distributable for tax purposes. Each Fund had no assets or liabilities prior to the reorganization (amounts in thousands†):
Fund Name | Predecessor Fund Investments, at value at time of reorganization | Predecessor Fund cost of investments at time of reorganization | Predecessor Fund net assets at time of reorganization | Predecessor Fund unrealized appreciation (depreciation) at time of reorganization | Net assets of the Fund immediately after reorganization | |||||||||||||||||
PIMCO RAE Fundamental Emerging Markets Fund* | 133,992 | 138,110 | 198,415 | (4,074 | ) | 198,415 | ||||||||||||||||
PIMCO RAE Fundamental Global Fund | 38,686 | 38,686 | 38,691 | 0 | 38,691 | |||||||||||||||||
PIMCO RAE Fundamental Global ex-US Fund | 71,035 | 71,035 | 71,057 | 0 | 71,057 | |||||||||||||||||
PIMCO RAE Fundamental International Fund | 153,429 | 125,939 | 156,592 | 27,818 | 156,592 | |||||||||||||||||
PIMCO RAE Fundamental US Fund | 451,461 | 333,314 | 454,480 | 118,147 | 454,480 | |||||||||||||||||
PIMCO RAE Fundamental US Small Fund | 46,372 | 37,555 | 46,771 | 8,817 | 46,771 |
† | A zero balance may reflect actual amounts rounding to less than one thousand. |
* | Because of local market regulations, certain foreign securities were sold by the Predecessor Fund in advance of the reorganization. The proceeds from the sale became assets of the Fund as a result of the reorganization. The Adviser or Research Affiliates reimbursed the Fund for certain trading costs, including any commissions, taxes and the impact of exchange rates. |
2. SIGNIFICANT ACCOUNTING POLICIES
The following is a summary of significant accounting policies consistently followed by the Trust in the preparation of its financial statements in conformity with accounting principles generally accepted in the United States of America (“U.S. GAAP”). Each Fund is treated as an investment company under the reporting requirements of U.S. GAAP. The preparation of financial statements in accordance with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of increases and decreases in net assets from operations during the reporting period. Actual results could differ from those estimates.
(a) Securities Transactions and Investment Income Securities transactions are recorded as of the trade date for financial reporting purposes. Realized gains and losses from securities sold are recorded on the identified cost basis. Dividend income is recorded on the ex-dividend date, except certain dividends from foreign securities where the ex-dividend date may have passed, which are recorded as soon as the Fund is informed of the ex-dividend date. Interest income, adjusted for the accretion of discounts and amortization of premiums, is recorded on the accrual basis from settlement date. For convertible securities, premiums attributable to the conversion feature are not amortized. Estimated tax liabilities on certain foreign securities are recorded on an accrual basis and are reflected as components of interest income or net change in unrealized appreciation/depreciation on investments on the Statements of Operations, as appropriate. Tax liabilities realized as a result of such security sales are reflected as a
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component of net realized gain/loss on investments on the Statements of Operations. Income or short-term capital gain distributions received from underlying funds are recorded as dividend income. Long-term capital gain distributions received from underlying funds are recorded as realized gains.
(b) Cash and Foreign Currency The functional and reporting currency for the Funds is the U.S. dollar. The market values of foreign securities, currency holdings and other assets and liabilities are translated into U.S. dollars based on the current exchange rates each business day. Purchases and sales of securities and income and expense items denominated in foreign currencies, if any, are translated into U.S. dollars at the exchange rate in effect on the transaction date. The Funds do not separately report the effects of changes in foreign exchange rates from changes in market prices on securities held. Such changes are included in net realized and net changes in unrealized gain or loss from investments on the Statements of Operations. The Funds may invest in foreign currency-denominated securities and may engage in foreign currency transactions either on a spot (cash) basis at the rate prevailing in the currency exchange market at the time or through a forward foreign currency contract (see financial derivative instruments). Realized foreign exchange gains or losses arising from sales of spot foreign currencies, currency gains or losses realized between the trade and settlement dates on securities transactions and the difference between the recorded amounts of dividends, interest, and foreign withholding taxes and the U.S. dollar equivalent of the amounts actually received or paid are included in net realized gain or loss on foreign currency transactions on the Statements of Operations. Net unrealized foreign exchange gains and losses arising from changes in foreign exchange rates on foreign denominated assets and liabilities other than investments in securities held at the end of the reporting period are included in net change in unrealized appreciation or depreciation on foreign currency assets and liabilities on the Statements of Operations.
(c) Multiclass Operations Each class offered by the Trust has equal rights as to assets and voting privileges (except that shareholders of a class have exclusive voting rights regarding any matter relating solely to that class of shares). Income and non-class specific expenses are allocated daily to each class on the basis of the relative value of settled shares. Realized and unrealized capital gains and losses are allocated daily based on the relative net assets of each class of the Fund. Class specific expenses, where applicable, currently include supervisory and administrative and distribution and servicing fees.
(d) Dividends and Distributions to Shareholders Dividends from net investment income, if any, of each Fund, are declared and distributed to shareholders annually. Net realized capital gains earned by each Fund, if any, will be distributed no less frequently than once each year.
Income dividends and capital gain distributions are determined in accordance with income tax regulations which may differ from U.S. GAAP. Differences between tax regulations and U.S. GAAP may cause timing differences between income and capital gain recognition. Examples of events that give rise to timing differences include wash sales, straddles and capital loss carryforwards. Further, the character of investment income and capital gains may be different for certain transactions under the two methods of accounting. Examples of characterization differences include the treatment of paydowns on mortgage-backed securities, swaps, foreign currency transactions and contingent debt instruments. As a result, income dividends and capital gain distributions declared during a fiscal period may differ significantly from the net investment income (loss) and realized gains (losses) reported on each Fund’s annual financial statements presented under U.S. GAAP.
Distributions classified as a tax basis return of capital, if any, are reflected on the accompanying Statements of Changes in Net Assets and have been recorded to paid in capital. In addition, other amounts have been reclassified between undistributed (overdistributed) net investment income(loss), accumulated undistributed/(overdistributed) net realized gains (losses) and/or paid in capital to more appropriately conform financial accounting to tax characterizations of dividend distributions.
(e) Statements of Cash Flows U.S. GAAP requires entities providing financial statements that report both financial position and results of operations to also provide a statement of cash flows for each period for which results of operations are provided, but exempts investment companies meeting certain conditions. One of the conditions is that substantially all of the enterprise’s investments were carried at fair value during the period and classified as Level 1 or Level 2 in the fair value hierarchy in accordance with the requirements of U.S. GAAP. Another condition is that the enterprise had little or no debt, based on the average debt outstanding during the period, in relation to average total assets. Funds with certain degrees of borrowing activity, typically through the use of reverse repurchase agreements, sale-buyback transactions, or a line of credit, have been determined to be at a level requiring a Statement of Cash Flows. Statements of Cash Flows, as applicable, have been prepared using the indirect method which requires net change in net assets resulting from operations to be adjusted to reconcile to net cash flows from operating activities.
(f) New Accounting Pronouncements In June 2014, the Financial Accounting Standards Board (“FASB”) issued an Accounting Standards Update (“ASU”), ASU 2014-11, that expanded secured borrowing accounting for certain repurchase agreements. The ASU also sets forth additional disclosure requirements for certain transactions accounted for as sales in order to provide financial statement users with information to compare to similar transactions accounted for as secured borrowings.
ANNUAL REPORT | JUNE 30, 2015 | 59 |
Table of Contents
Notes to Financial Statements (Cont.)
The ASU became effective prospectively for annual periods beginning after December 15, 2014, and interim periods beginning after March 15, 2015. The Funds have adopted the ASU as they follow the investment company reporting requirements under U.S. GAAP. The implementation of the ASU did not have an impact on the Funds’ financial statements.
In May 2015, the FASB issued ASU 2015-07 which removes the requirement to categorize within the fair value hierarchy all investments for which fair value is measured using the net asset value per share practical expedient. The ASU also removes the requirement to make certain disclosures for all investments that are eligible to be measured at fair value using the net asset value per share practical expedient. The ASU is effective for annual periods beginning after December 15, 2015 and interim periods within those annual periods. At this time, management is evaluating the implications of these changes on the financial statements.
3. INVESTMENT VALUATION AND FAIR VALUE MEASUREMENTS
(a) Investment Valuation Policies The price of a Fund’s shares is based on the Fund’s NAV. The NAV of a Fund’s shares is determined by dividing the total value of a Fund’s portfolio investments and other assets attributable to that class, less any liabilities, by the total number of shares outstanding of that class.
Fund shares are ordinarily valued as of the NYSE Close on each day that the NYSE is open. Information that becomes known to the Funds or their agents after the time as of which NAV has been calculated on a particular day will not generally be used to retroactively adjust the price of a security or the NAV determined earlier that day. Each Fund reserves the right to change the time its respective NAV is calculated if the Fund closes earlier, or as permitted by the SEC.
For purposes of calculating NAV, portfolio securities and other assets for which market quotes are readily available are valued at market value. Market value is generally determined on the basis of official closing prices or the last reported sales prices, or if no sales are reported, based on quotes obtained from established market makers or prices (including evaluated prices) supplied by the Funds’ approved pricing services, quotation reporting systems and other third-party sources (together, “Pricing Services”). The Funds will normally use pricing data for domestic equity securities received shortly after the NYSE Close and do not normally take into account trading, clearances or settlements that take place after the NYSE Close. A foreign (non-U.S.) equity security traded on a foreign exchange or on more than one exchange is typically valued using pricing information from the exchange considered by the manager to be the primary exchange. A foreign (non-U.S.) equity security will be valued as of the close of
trading on the foreign exchange, or the NYSE Close, if the NYSE Close occurs before the end of trading on the foreign exchange. Domestic and foreign (non-U.S.) fixed income securities, non-exchange traded derivatives, and equity options are normally valued on the basis of quotes obtained from brokers and dealers or Pricing Services using data reflecting the earlier closing of the principal markets for those securities. Prices obtained from Pricing Services may be based on, among other things, information provided by market makers or estimates of market values obtained from yield data relating to investments or securities with similar characteristics. Certain fixed income securities purchased on a delayed-delivery basis are marked to market daily until settlement at the forward settlement date. Exchange-traded options, except equity options, futures and options on futures are valued at the settlement price determined by the relevant exchange. Swap agreements are valued on the basis of bid quotes obtained from brokers and dealers or market-based prices supplied by Pricing Services or other pricing sources. With respect to any portion of the Fund’s assets that are invested in one or more open-end management investment companies, a Fund’s NAV will be calculated based upon the NAVs of such investments.
If a foreign (non-U.S.) equity security’s value has materially changed after the close of the security’s primary exchange or principal market but before the NYSE Close, the security may be valued at fair value based on procedures established and approved by the Board of Trustees. Foreign (non-U.S.) equity securities that do not trade when the NYSE is open are also valued at fair value. With respect to foreign (non-U.S.) equity securities, the Fund may determine the fair value of investments based on information provided by Pricing Services and other third-party vendors, which may recommend fair value or adjustments with reference to other securities, indices or assets. In considering whether fair valuation is required and in determining fair values, the Fund may, among other things, consider significant events (which may be considered to include changes in the value of U.S. securities or securities indices) that occur after the close of the relevant market and before the NYSE Close. A Fund may utilize modeling tools provided by third-party vendors to determine fair values of non-U.S. securities. Foreign (non-U.S.) exchanges may permit trading in foreign (non-U.S.) equity securities on days when the Trust is not open for business, which may result in a Fund’s portfolio investments being affected when you are unable to buy or sell shares.
Senior secured floating rate loans for which an active secondary market exists to a reliable degree will be valued at the mean of the last available bid/ask prices in the market for such loans, as provided by a Pricing Service. Senior secured floating rate loans for which an active secondary market does not exist to a reliable degree will be valued at fair value, which is intended to approximate market value. In valuing a
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senior secured floating rate loan at fair value, the factors considered may include, but are not limited to, the following: (a) the creditworthiness of the borrower and any intermediate participants, (b) the terms of the loan, (c) recent prices in the market for similar loans, if any, and (d) recent prices in the market for instruments of similar quality, rate, period until next interest rate reset and maturity.
Investments valued in currencies other than the U.S. dollar are converted to the U.S. dollar using exchange rates obtained from Pricing Services. As a result, the NAV of the Fund’s shares may be affected by changes in the value of currencies in relation to the U.S. dollar. The value of securities traded in markets outside the United States or denominated in currencies other than the U.S. dollar may be affected significantly on a day that the Trust is not open for business. As a result, to the extent that a Fund holds foreign (non-U.S.) securities, the NAV of the Fund’s shares may change at times when you cannot purchase, redeem or exchange shares.
Investments for which market quotes or market based valuations are not readily available are valued at fair value as determined in good faith by the Board of Trustees or persons acting at their direction. The Board of Trustees has adopted methods for valuing securities and other assets in circumstances where market quotes are not readily available, and has delegated to PIMCO the responsibility for applying the fair valuation methods. In the event that market quotes or market based valuations are not readily available, and the security or asset cannot be valued pursuant to a Board approved valuation method, the value of the security or asset will be determined in good faith by the Valuation Oversight Committee of the Board of Trustees, generally based on recommendations provided by PIMCO. PIMCO may consult with the
Sub-Adviser or Parametric in providing such recommendations or otherwise with respect to valuation of a Fund’s portfolio securities or other assets. Market quotes are considered not readily available in circumstances where there is an absence of current or reliable market-based data (e.g., trade information, bid/ask information, broker quotes, Pricing Services prices), including where events occur after the close of the relevant market, but prior to the NYSE Close, that materially affect the values of the Fund’s securities or assets. In addition, market quotes are considered not readily available when, due to extraordinary circumstances, the exchanges or markets on which the securities trade do not open for trading for the entire day and no other market prices are available. The Board has delegated to PIMCO the responsibility for monitoring significant events that may materially affect the values of the Fund’s securities or assets and for determining whether the value of the applicable securities or assets should be reevaluated in light of such significant events.
When the Fund uses fair valuation to determine its NAV, securities will not be priced on the basis of quotes from the primary market in which
they are traded, but rather may be priced by another method that the Board of Trustees or persons acting at their direction believe reflects fair value. Fair valuation may require subjective determinations about the value of a security. While the Trust’s policy is intended to result in a calculation of the Fund’s NAV that fairly reflects security values as of the time of pricing, the Trust cannot ensure that fair values determined by the Board of Trustees or persons acting at their direction would accurately reflect the price that a Fund could obtain for a security if it were to dispose of that security as of the time of pricing (for instance, in a forced or distressed sale). The prices used by the Fund may differ from the value that would be realized if the securities were sold. The Funds’ use of fair valuation may also help to deter “stale price arbitrage” as discussed under the “Abusive Trading Practices” section in the Funds’ prospectuses.
Under certain circumstances, the per share NAV of a class of the Fund’s shares may be different from the per share NAV of another class of shares as a result of the different daily expense accruals applicable to each class of shares.
(b) Fair Value Hierarchy U.S. GAAP describes fair value as the price that a Fund would receive to sell an asset or pay to transfer a liability in an orderly transaction between market participants at the measurement date. It establishes a fair value hierarchy that prioritizes inputs to valuation methods and requires disclosure of the fair value hierarchy, separately for each major category of assets and liabilities, that segregates fair value measurements into levels (Level 1, 2, or 3). The inputs or methodology used for valuing securities are not necessarily an indication of the risks associated with investing in those securities. Levels 1, 2, and 3 of the fair value hierarchy are defined as follows:
n | Level 1 — Inputs using (unadjusted) quoted prices in active markets or exchanges for identical assets and liabilities. |
n | Level 2 — Significant other observable inputs, which may include, but are not limited to, quoted prices for similar assets or liabilities in markets that are active, quoted prices for identical or similar assets or liabilities in markets that are not active, inputs other than quoted prices that are observable for the assets or liabilities (such as interest rates, yield curves, volatilities, prepayment speeds, loss severities, credit risks and default rates) or other market corroborated inputs. |
n | Level 3 — Significant unobservable inputs based on the best information available in the circumstances, to the extent observable inputs are not available, which may include assumptions made by the Board or persons acting at their direction that are used in determining the fair value of investments. |
ANNUAL REPORT | JUNE 30, 2015 | 61 |
Table of Contents
Notes to Financial Statements (Cont.)
In accordance with the requirements of U.S. GAAP, the amounts of transfers between Levels 1 and 2 and transfers in and out of Level 3, if material, are disclosed in the Notes to Schedule of Investments for each respective Fund.
For fair valuations using significant unobservable inputs, U.S. GAAP requires a reconciliation of the beginning to ending balances for reported fair values that presents changes attributable to total realized and unrealized gains or losses, purchases and sales, and transfers in or out of the Level 3 category during the period. The end of period timing recognition is used for the transfers between Levels of a Fund’s assets and liabilities. Additionally, U.S. GAAP requires quantitative information regarding the significant unobservable inputs used in the determination of fair value of assets or liabilities categorized as Level 3 in the fair value hierarchy. In accordance with the requirements of U.S. GAAP, a fair value hierarchy, and if material, a Level 3 reconciliation and details of significant unobservable inputs, have been included in the Notes to Schedule of Investments for each respective Fund.
(c) Valuation Techniques and the Fair Value Hierarchy Level 1 and Level 2 trading assets and trading liabilities, at fair value The valuation methods (or “techniques”) and significant inputs used in determining the fair values of portfolio securities or other assets categorized as Level 1 and Level 2 of the fair value hierarchy are as follows:
Common stocks, exchange-traded funds, exchange-traded notes and financial derivative instruments, such as futures contracts or options on futures that are traded on a national securities exchange, are stated at the last reported sale or settlement price on the day of valuation. To the extent these securities are actively traded and valuation adjustments are not applied, they are categorized as Level 1 of the fair value hierarchy.
Investments valued (denominated) in currencies other than the U.S. dollar are converted to the U.S. dollar using exchange rates (currency spot and forward rates) obtained from pricing service providers. As a result, the NAV of a Fund’s shares may be affected by changes in the value of currencies in relation to the U.S. dollar. The value of securities traded in markets outside the United States or denominated in currencies other than the U.S. dollar may be affected significantly on a day that the Trust is not open for business. Valuation adjustments may be applied to certain securities that are solely traded on a foreign exchange to account for the market movement between the close of the foreign market and the NYSE Close. These securities are valued using pricing service providers that consider the correlation of the trading patterns of the foreign security to the intraday trading in the U.S. markets for investments. Securities using these valuation adjustments are categorized as Level 2 of the fair value hierarchy.
Preferred securities and other equities traded on inactive markets or valued by reference to similar instruments are also categorized as Level 2 of the fair value hierarchy.
Equity-linked securities are valued by referencing the last reported sale or settlement price of the linked referenced equity on the day of valuation. Foreign exchange adjustments are applied to the last reported price to convert the linked equity’s trading currency to the contract’s settling currency. These investments are categorized as Level 2 of the fair value hierarchy.
Level 3 trading assets and trading liabilities, at fair value When a fair valuation method is applied by PIMCO that uses significant unobservable inputs, securities will be priced by a method that the Board or persons acting at their direction believe reflects fair value and are categorized as Level 3 of the fair value hierarchy.
4. SECURITIES AND OTHER INVESTMENTS
(a) Investments in Securities
Equity-Linked Securities Certain Funds may purchase equity-linked securities, also known as participation notes, equity swaps, and zero strike calls and warrants. Equity-linked securities are primarily used by a Fund as an alternative means to more efficiently and effectively access what is generally an emerging securities market. A Fund deposits cash with its custodian (or broker, if legally permitted) in an amount near or equal to the selling price of the underlying security in exchange for an equity-linked security. Upon sale, a Fund receives cash from the broker or custodian equal to the value of the underlying security. Aside from market risk of the underlying securities, there is a risk of default by the counterparty to the transaction. In the event of insolvency of the counterparty, a Fund might be unable to obtain its expected benefit. In addition, while a Fund will seek to enter into such transactions only with parties that are capable of entering into closing transactions with the Fund, there can be no assurance that the Fund will be able to close out such a transaction with the counterparty or obtain an offsetting position with any counterparty, at any time prior to the end of the term of the underlying agreement. This may impair a Fund’s ability to enter into other transactions at a time when doing so might be advantageous.
Warrants Certain Funds may invest in or acquire warrants to purchase equity or fixed income securities. Warrants are instruments that give the holder the right, but not the obligation, to buy a security at a specific price for a specific period of time. Changes in the value of a warrant do not necessarily correspond to changes in the value of its underlying security. The price of a warrant may be more volatile than the price of its underlying security, and a warrant may offer greater potential for capital appreciation as well as capital loss. Warrants do not entitle a holder to dividends or voting rights with respect to the
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underlying security and do not represent any rights in the assets of the issuing company. A warrant ceases to have value if it is not exercised prior to its expiration date. These factors can make warrants more speculative than other types of investments. Bonds with warrants attached to purchase equity securities have many characteristics of convertible bonds and their prices may, to some degree, reflect the
performance of the underlying stock. Bonds also may be issued with warrants attached to purchase additional fixed income securities at the same coupon rate. A decline in interest rates would permit a Fund to buy additional bonds at the favorable rate or to sell the warrants at a profit. If interest rates rise, the warrants would generally expire with no value.
(b) Investments in Affiliates
The PIMCO RAE Fundamental Global and PIMCO RAE Fundamental Global ex-US Funds invest substantially all of their assets in Institutional Class shares of the Underlying Funds and may also invest in other affiliated funds, and unaffiliated funds, which may or may not be registered under the Act (together with the Underlying Funds, “Acquired Funds”). The Underlying Funds are considered to be affiliated with the PIMCO RAE Fundamental Global and PIMCO RAE Fundamental Global ex-US Funds. The table below shows the transactions in and earnings from investments in the Underlying Funds for the period ended June 30, 2015 (amounts in thousands†):
PIMCO RAE Fundamental Global Fund | ||||||||||||||||||||||||||||||||||
Underlying PIMCO Funds | Market Value 06/30/2014 | Purchases at Cost | Proceeds from Sales | Net Realized Gain/(Loss) | Change in Unrealized Appreciation/ (Depreciation) | Market Value 06/30/2015 | Dividend Income (1) | Realized Net Capital Gain Distributions (1) | ||||||||||||||||||||||||||
PIMCO RAE Fundamental Emerging Markets Fund | $ | 0 | $ | 4,785 | $ | 0 | $ | 0 | $ | (18 | ) | $ | 4,767 | $ | 0 | $ | 0 | |||||||||||||||||
PIMCO RAE Fundamental International Fund | 0 | 14,686 | (895 | ) | (12 | ) | (233 | ) | 13,546 | 0 | 0 | |||||||||||||||||||||||
PIMCO RAE Fundamental US Fund | 0 | 20,140 | 0 | 0 | (293 | ) | 19,847 | 0 | 0 | |||||||||||||||||||||||||
Totals | $ | 0 | $ | 39,611 | $ | (895 | ) | $ | (12 | ) | $ | (544 | ) | $ | 38,160 | $ | 0 | $ | 0 |
† | A zero balance may reflect actual amounts rounding to less than one thousand. |
(1) | A portion of this may be recharacterized to return of capital and reflected as such on tax forms mailed to shareholders on or about January 31st following each calendar year. |
PIMCO RAE Fundamental Global ex-US Fund | ||||||||||||||||||||||||||||||||||
Underlying PIMCO Funds | Market Value 06/30/2014 | Purchases at Cost | Proceeds from Sales | Net Realized Gain/(Loss) | Change in Unrealized Appreciation/ (Depreciation) | Market Value 06/30/2015 | Dividend Income (1) | Realized Net Capital Gain Distributions (1) | ||||||||||||||||||||||||||
PIMCO RAE Fundamental Emerging Markets Fund | $ | 0 | $ | 18,294 | $ | 0 | $ | 0 | $ | (63 | ) | $ | 18,231 | $ | 0 | $ | 0 | |||||||||||||||||
PIMCO RAE Fundamental International Fund | 0 | 54,367 | $ | (1,645 | ) | $ | (22 | ) | $ | (894 | ) | $ | 51,806 | 0 | 0 | |||||||||||||||||||
Totals | $ | 0 | $ | 72,661 | $ | (1,645 | ) | $ | (22 | ) | $ | (957 | ) | $ | 70,037 | $ | 0 | $ | 0 |
† | A zero balance may reflect actual amounts rounding to less than one thousand. |
(1) | A portion of this may be recharacterized to return of capital and reflected as such on tax forms mailed to shareholders on or about January 31st following each calendar year. |
5. PRINCIPAL RISKS
In the normal course of business, the Funds (or Acquired Funds) trade financial instruments and enter into financial transactions where risk of potential loss exists due to such things as changes in the market (market risk) or failure or inability of the other party to a transaction to perform (credit and counterparty risk). See below for a detailed description of select principal risks. For a more comprehensive list of potential risks the Funds may be subject to, please see the Important Information About the Funds.
Investments in Mutual Funds To the extent that certain Funds invest substantially all of their respective assets in Acquired Funds, the risks associated with investing in these Funds will be closely related to the risks associated with the securities and other investments held by the Acquired Funds. The ability of the Funds to achieve their respective
investment objectives may depend upon the ability of the Acquired Funds to achieve their respective investment objectives. There can be no assurance that the investment objective of any Acquired Fund will be achieved. The net asset value of each Fund will fluctuate in response to changes in the respective net asset values of the Acquired Funds in which it invests. The extent to which the investment performance and risks associated with the Funds correlate to those of a particular Acquired Fund will depend upon the extent to which the assets of the Funds are allocated from time to time for investment in the Acquired Funds, which will vary.
Investing in Acquired Funds involves certain additional expenses and tax results that would not be present in a direct investment in the Acquired Funds.
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Certain Funds’ investment performance depends upon how each Fund’s assets are allocated and reallocated according to each Fund’s asset allocation targets and ranges. A principal risk of investing in each Fund is that the Funds’ asset allocation sub-adviser will make less than optimal or poor asset allocation decisions. The asset allocation sub-adviser attempts to identify investment allocations for the Acquired Funds that will provide consistent, quality performance for the Funds, but there is no guarantee that such allocation techniques will produce the desired results.
Market Risks A Fund’s (or Acquired Funds’) investments in financial derivatives and other financial instruments expose the Fund to various risks such as, but not limited to, equity, interest rate, foreign currency and commodity risks.
The market values of equities, such as common stocks and preferred securities or equity related investments such as futures and options, have historically risen and fallen in periodic cycles and may decline due to general market conditions which are not specifically related to a particular company, such as real or perceived adverse economic conditions, changes in the general outlook for corporate earnings, changes in interest or currency rates or adverse investor sentiment generally. They may also decline due to factors which affect a particular industry or industries, such as labor shortages or increased production costs and competitive conditions within an industry. Different types of equity securities may react differently to these developments. Equity securities and equity related investments generally have greater market price volatility than fixed income securities.
Interest rate risk is the risk that fixed income securities will decline in value because of an increase in interest rates. As nominal interest rates rise, the value of certain fixed income securities held by a Fund (or Acquired Funds) is likely to decrease. A nominal interest rate can be described as the sum of a real interest rate and an expected inflation rate. Interest rate changes can be sudden and unpredictable, and a Fund (or Acquired Funds) may lose money if these changes are not anticipated by Fund (or Acquired Funds) management. A Fund (or Acquired Funds) may not be able to hedge against changes in interest rates or may choose not to do so for cost or other reasons. In addition, any hedges may not work as intended.
Fixed income securities with longer durations tend to be more sensitive to changes in interest rates, usually making them more volatile than securities with shorter durations. Duration is useful primarily as a measure of the sensitivity of a fixed income security’s market price to interest rate (i.e., yield) movements. A wide variety of factors can cause interest rates to rise (e.g., central bank monetary policies, inflation rates, general economic conditions). At present, the U.S. is experiencing historically low interest rates. This, combined with recent
economic recovery and the end of the Fed’s quantitative easing program in October 2014, may increase the probability of an upward interest rate environment in the near future. Further, while U.S. bond markets have steadily grown over the past three decades, dealer “market making” ability has remained relatively stagnant. Given the importance of intermediary “market making” in creating a robust and active market, fixed income securities are currently facing increased volatility and liquidity risks. All of these factors, collectively and/or individually, could cause a Fund (or Acquired Funds) to lose value. If a Fund (or Acquired Funds) lost enough value, the Fund (or Acquired Funds) could face increased redemptions by shareholders, which could further impair its performance.
Certain Funds (or Acquired Funds) may invest in securities and instruments that are economically tied to Russia. Investments in Russia are subject to various risks such as, but not limited to political, economic, legal, market and currency risks. The risks include uncertain political and economic policies, short-term market volatility, poor accounting standards, corruption and crime, an inadequate regulatory system, and unpredictable taxation. Investments in Russia are particularly subject to the risk that further economic sanctions may be imposed by the United States and/or other countries. Such sanctions — which may impact companies in many sectors, including energy, financial services and defense, among others — may negatively impact a Fund’s (or Acquired Funds’) performance and/or ability to achieve its investment objective. The Russian securities market is characterized by limited volume of trading, resulting in difficulty in obtaining accurate prices. The Russian securities market, as compared to U.S. markets, has significant price volatility, less liquidity, a smaller market capitalization and a smaller number of traded securities. There may be little publicly available information about issuers. Settlement, clearing and registration of securities transactions are subject to risks because of registration systems that may not be subject to effective government supervision. This may result in significant delays or problems in registering the transfer of securities. Russian securities laws may not recognize foreign nominee accounts held with a custodian bank, and therefore the custodian may be considered the ultimate owner of securities they hold for their clients. Ownership of securities issued by Russian companies is recorded by companies themselves and by registrars instead of through a central registration system. It is possible that the ownership rights of certain Funds (or Acquired Funds) could be lost through fraud or negligence. While applicable Russian regulations impose liability on registrars for losses resulting from their errors, it may be difficult for certain Funds (or Acquired Funds) to enforce any rights it may have against the registrar or issuer of the securities in the event of loss of share registration. Adverse currency exchange rates are a risk and there may be a lack of available currency hedging instruments. Investments in Russia may be subject to the risk of nationalization or
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expropriation of assets. Oil, natural gas, metals, and timber account for a significant portion of Russia’s exports, leaving the country vulnerable to swings in world prices.
If a Fund (or Acquired Funds) invests directly in foreign (non-U.S.) currencies or in securities that trade in, and receive revenues in, foreign (non-U.S.) currencies, or in financial derivatives that provide exposure to foreign (non-U.S.) currencies, it will be subject to the risk that those currencies will decline in value relative to the base currency of the Fund (or Acquired Funds), or, in the case of hedging positions, that the Fund’s (or Acquired Funds’) base currency will decline in value relative to the currency being hedged. Currency rates in foreign countries may fluctuate significantly over short periods of time for a number of reasons, including changes in interest rates, intervention (or the failure to intervene) by U.S. or foreign governments, central banks or supranational entities such as the International Monetary Fund, or by the imposition of currency controls or other political developments in the United States or abroad. As a result, a Fund’s (or Acquired Funds’) investments in foreign currency-denominated securities may reduce the returns of the Fund (or Acquired Funds).
A Fund’s (or Acquired Funds’) investments in commodity-linked financial derivative instruments may subject the Fund (or Acquired Funds) to greater market price volatility than investments in traditional securities. The value of commodity-linked financial derivative instruments may be affected by changes in overall market movements, commodity index volatility, changes in interest rates, or factors affecting a particular industry or commodity, such as drought, floods, weather, livestock disease, embargoes, tariffs and international economic, political and regulatory developments.
Credit and Counterparty Risks A Fund (or Acquired Funds) will be exposed to credit risk to parties with whom it trades and will also bear the risk of settlement default. A Fund (or Acquired Funds) minimizes concentrations of credit risk by undertaking transactions with a large number of customers and counterparties on recognized and reputable exchanges where applicable. For derivatives traded on exchanges, the primary credit risk is the creditworthiness of a Fund’s clearing broker or the exchange itself. A Fund (or Acquired Funds) could lose money if the issuer or guarantor of a fixed income security, or the counterparty to a financial derivatives contract, repurchase agreement or a loan of portfolio securities, is unable or unwilling to make timely principal and/or interest payments, or to otherwise honor its obligations. Securities are subject to varying degrees of credit risk, which are often reflected in credit ratings.
Similar to credit risk, a Fund (or Acquired Funds) may be exposed to counterparty risk, or the risk that an institution or other entity with which the Fund (or Acquired Funds) has unsettled or open transactions
will default. PIMCO, as the Adviser, minimizes counterparty risks to the Funds (or Acquired Funds) through a number of ways. Prior to entering into transactions with a new counterparty, the PIMCO Counterparty Risk Committee conducts an extensive credit review of such counterparty and must approve the use of such counterparty. Furthermore, pursuant to the terms of the underlying contract, to the extent that unpaid amounts owed to a Fund (or Acquired Funds) exceed a predetermined threshold, such counterparty shall advance collateral to the Fund (or Acquired Funds) in the form of cash or securities equal in value to the unpaid amount owed to the Fund (or Acquired Funds). A Fund (or Acquired Funds) may invest such collateral in securities or other instruments and will typically pay interest to the counterparty on the collateral received. If the unpaid amount owed to a Fund (or Acquired Funds) subsequently decreases, the Fund (or Acquired Funds) would be required to return to the counterparty all or a portion of the collateral previously advanced.
All transactions in listed securities are settled/paid for upon delivery using approved counterparties. The risk of default is considered minimal, as delivery of securities sold is only made once a Fund (or Acquired Funds) has received payment. Payment is made on a purchase once the securities have been delivered by the counterparty. The trade will fail if either party fails to meet its obligation.
Master Netting Arrangements A Fund may be subject to various netting arrangements with select counterparties (“Master Agreements”). Master Agreements govern the terms of certain transactions, and reduce the counterparty risk associated with relevant transactions by specifying credit protection mechanisms and providing standardization that improves legal certainty. Each type of Master Agreement governs certain types of transactions. Different types of transactions may be traded out of different legal entities or affiliates of a particular organization, resulting in the need for multiple agreements with a single counterparty. As the Master Agreements are specific to unique operations of different asset types, they allow a Fund to close out and net its total exposure to a counterparty in the event of a default with respect to all the transactions governed under a single Master Agreement with a counterparty. For financial reporting purposes the Statements of Assets and Liabilities generally show derivative assets and liabilities on a gross basis, which reflects the full risks and exposures prior to netting.
Master Agreements can also help limit counterparty risk by specifying collateral posting arrangements at pre-arranged exposure levels. Under the Master Agreements, collateral is routinely transferred if the total net exposure to certain transactions (net of existing collateral already in place) governed under the relevant Master Agreement with a counterparty in a given account exceeds a specified threshold, which typically ranges from zero to $250,000 depending on the counterparty
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and the type of Master Agreement. United States Treasury Bills and U.S. dollar cash are generally the preferred forms of collateral, although other forms of AAA rated paper or sovereign securities may be used. Securities and cash pledged as collateral are reflected as assets on the Statements of Assets and Liabilities as either a component of Investments at value (securities) or Deposits due from Counterparties (cash). Cash collateral received is not typically held in a segregated account and as such is reflected as a liability on the Statements of Assets and Liabilities as Deposits due to Counterparties. The market value of any securities received as collateral is not reflected as a component of NAV. A Fund’s overall exposure to counterparty risk can change substantially within a short period, as it is affected by each transaction subject to the relevant Master Agreement.
Master Repurchase Agreements and Global Master Repurchase Agreements (individually and collectively “Master Repo Agreements”) govern repurchase, reverse repurchase, and sale-buyback transactions between a Fund and select counterparties. Master Repo Agreements maintain provisions for, among other things, initiation, income payments, events of default, and maintenance of collateral. The market value of transactions under the Master Repo Agreement, collateral pledged or received, and the net exposure by counterparty as of period end are disclosed in the Notes to Schedule of Investments.
Master Securities Forward Transaction Agreements (“Master Forward Agreements”) govern certain forward settling transactions, such as To-Be-Announced securities, delayed-delivery or sale-buyback transactions by and between a Fund and select counterparties. The Master Forward Agreements maintain provisions for, among other things, initiation and confirmation, payment and transfer, events of default, termination, and maintenance of collateral. The market value of forward settling transactions, collateral pledged or received, and the net exposure by counterparty as of period end is disclosed in the Notes to Schedule of Investments.
Customer Account Agreements and related addendums govern cleared derivatives transactions such as futures, options on futures, and cleared Over the Counter (“OTC”) derivatives. Such transactions require posting of initial margin as determined by each relevant clearing agency which is segregated at a broker account registered with the Commodity Futures Trading Commission (“CFTC”), or the applicable regulator. In the United States, counterparty risk is significantly reduced as creditors of a futures broker cannot have a claim to Fund assets in the segregated account. Additionally, portability of exposure in the event of a default scenario further reduces risk to the Funds. Variation margin, or changes in market value, are exchanged daily, but may not be netted between futures and cleared OTC derivatives. The market value or accumulated unrealized appreciation or depreciation, initial margin posted, and any unsettled variation margin as of period end is disclosed in the Notes to Schedule of Investments.
International Swaps and Derivatives Association, Inc. Master Agreements and Credit Support Annexes (“ISDA Master Agreements”) govern OTC derivative transactions entered into by a Fund with select counterparties. ISDA Master Agreements maintain provisions for general obligations, representations, agreements, collateral and events of default or termination. Events of termination include conditions that may entitle counterparties to elect to terminate early and cause settlement of all outstanding transactions under the applicable ISDA Master Agreement. Any election to terminate early could be material to the financial statements. In limited circumstances, the ISDA Master Agreement may contain additional provisions that add counterparty protection beyond coverage of existing daily exposure if the counterparty has a decline in credit quality below a predefined level. These amounts, if any, may be segregated with a third-party custodian. The market value of OTC financial derivative instruments, collateral received or pledged, and net exposure by counterparty as of period end are disclosed in the Notes to Schedule of Investments.
6. FEES AND EXPENSES
(a) Investment Advisory Fee PIMCO is a majority-owned subsidiary of Allianz Asset Management of America L.P. (“Allianz Asset Management”) and serves as the Adviser to the Trust, pursuant to an investment advisory contract. The Adviser receives a monthly fee from each Fund at an annual rate based on average daily net assets (the “Investment Advisory Fee”). The Investment Advisory Fee for all classes is charged at an annual rate as noted in the table below.
(b) Supervisory and Administrative Fee PIMCO serves as administrator (the “Administrator”) and provides supervisory and administrative services to the Trust for which it receives a monthly supervisory and administrative fee based on each share class’s average daily net assets (the “Supervisory and Administrative Fee”). As the Administrator, PIMCO bears the costs of various third-party services, including audit, custodial, portfolio accounting, legal, transfer agency and printing costs.
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The Investment Advisory and Supervisory and Administrative Fees for all classes are charged at an annual rate as noted in the following table:
Investment Advisory Fee | Supervisory and Administrative Fee | |||||||||||||||||||
Fund Name | All Classes | Institutional Class | Class P | A and C Classes | ||||||||||||||||
PIMCO RAE Fundamental Emerging Markets Fund | 0.50% | 0.45% | 0.55% | 0.55% | ||||||||||||||||
PIMCO RAE Fundamental Global Fund | 0.40% | 0.30% | 0.40% | 0.40% | ||||||||||||||||
PIMCO RAE Fundamental Global ex-US Fund | 0.40% | 0.35% | 0.45% | 0.45% | ||||||||||||||||
PIMCO RAE Fundamental International Fund | 0.30% | 0.30% | 0.40% | 0.40% | ||||||||||||||||
PIMCO RAE Fundamental US Fund | 0.25% | 0.25% | 0.35% | 0.40% | ||||||||||||||||
PIMCO RAE Fundamental US Small Fund | 0.35% | 0.25% | 0.35% | 0.40% |
(c) Distribution and Servicing Fees PIMCO Investments LLC (“PI”), a wholly-owned subsidiary of PIMCO, serves as the distributor (“Distributor”) of the Trust’s shares.
The Trust has adopted separate Distribution and Servicing Plans with respect to the Class A, Class C and Class R shares of the Trust pursuant to Rule 12b-1 under the Act. In connection with the distribution of Class C and Class R shares of the Trust, the Distributor receives distribution fees from the Trust of up to 0.75% for Class C shares and 0.25% for Class R shares, and in connection with personal services rendered to Class A, Class C and Class R shareholders and the maintenance of such shareholder accounts, the Distributor receives servicing fees from the Trust of up to 0.25% for each of Class A, Class C and Class R shares (percentages reflect annual rates of the average daily net assets attributable to the applicable class).
The Trust has adopted a Distribution and Servicing Plan with respect to the Class D shares of each Fund pursuant to Rule 12b-1 under the Act (the “Class D Plan”). Under the terms of the Class D Plan, a Fund is permitted to compensate the Distributor out of the assets attributable to the Class D shares of the Fund, in an amount up to 0.25% on an annual basis of the average daily net assets of the Fund’s Class D shares for providing, or procuring through financial intermediaries, distribution, shareholder services, and/or maintenance of shareholder accounts with respect to Class D shareholders of the Fund, some of which may be deemed to be primarily intended to result in the sale of Class D shares.
The Trust has adopted a Distribution and Servicing Plan with respect to the Administrative Class shares of each Fund pursuant to Rule 12b-1 under the Act (the “Administrative Class Plan”). Under the terms of the Administrative Class Plan, a Fund may compensate the Distributor for providing, or procuring through financial intermediaries, distribution, administrative, recordkeeping, shareholder and/or related services with respect to Administrative Class shares. The Administrative Class Plan permits a Fund to make total payments at an annual rate of up to 0.25% of the average daily net assets attributable to the Administrative Class shares.
The Trust paid distribution and servicing fees at effective rates as set forth in the following table (calculated as a percentage of each Fund’s average daily net assets attributable to each class):
Distribution Fee | Servicing Fee | |||||||||
Class A | — | 0.25% | ||||||||
Class C | 0.75% | 0.25% |
The Distributor also received the proceeds of the initial sales charges paid by the shareholders upon the purchase of Class A shares and the contingent deferred sales charges paid by the shareholders upon certain redemptions of Class A and Class C Class shares. For the period ended June 30, 2015, the Distributor retained $360,600 representing commissions (sales charges) and contingent deferred sales charges from the Trust.
(d) Fund Expenses PIMCO provides or procures supervisory and administrative services for shareholders and also bears the costs of various third-party services required by the Funds, including audit, custodial, portfolio accounting, legal, transfer agency and printing costs. The Trust is responsible for the following expenses: (i) taxes and
governmental fees; (ii) brokerage fees and commissions and other portfolio transaction expenses; (iii) the costs of borrowing money, including interest expense; (iv) fees and expenses of the Trustees who are not “interested persons” of PIMCO or the Trust, and any counsel retained exclusively for their benefit; (v) extraordinary expense, including costs of litigation and indemnification expenses; (vi) organizational expenses; and (vii) any expenses allocated or allocable to a specific class of shares, which include service fees payable with respect to the Administrative Class Shares, and may include certain other expenses as permitted by the Trust’s Multi-Class Plan adopted pursuant to Rule 18f-3 under the Act and subject to review and approval by the Trustees. The ratio of expenses to average net assets per share class, as disclosed on the Financial Highlights, may differ from the annual fund operating expenses per share class as disclosed in the Prospectus for the reasons set forth above.
Each unaffiliated Trustee receives an annual retainer of $62,000, plus $6,250 for each Board meeting attended in person, $375 ($750 in the case of the audit committee chair with respect to audit committee
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meetings) for each committee meeting attended, plus reimbursement of related expenses. In addition, the audit committee chair receives an additional annual retainer of $9,000, the valuation oversight committee lead receives an additional annual retainer of $2,000 (to the extent there are co-leads of the valuation oversight committee, the annual retainer will be split evenly between the co-leads) and the governance committee chair receives an additional annual retainer of $750.
These expenses are allocated on a pro rata basis to each Fund of the Trust according to its respective net assets. The Trust pays no compensation directly to any Trustee or any other officer who is affiliated with the Administrator, all of whom receive remuneration for their services to the Trust from the Administrator or its affiliates.
(e) Expense Limitation PIMCO has agreed to waive a portion of the Funds’ Supervisory and Administrative Fees in each Fund’s first fiscal year, to the extent that the payment of each Fund’s pro rata share of organizational expenses and Trustee Fees cause the actual expense ratio to rise above the rates disclosed in the then-current prospectus plus 0.0049% (calculated as a percentage of each Fund’s average daily net assets attributable to each class).
PIMCO has contractually agreed to waive a portion of the Investment Advisory Fee as set forth in the following table (calculated as a percentage of each Fund’s average daily net assets).
Fund Name | Fee Waiver | Date | ||||||||
PIMCO RAE Fundamental Emerging Markets Fund | 0.20% | 10/31/2016 | ||||||||
PIMCO RAE Fundamental Global Fund | 0.20% | 10/31/2016 | ||||||||
PIMCO RAE Fundamental Global ex-US Fund | 0.20% | 10/31/2016 | ||||||||
PIMCO RAE Fundamental International Fund | 0.10% | 10/31/2016 | ||||||||
PIMCO RAE Fundamental US Fund | 0.10% | 10/31/2016 | ||||||||
PIMCO RAE Fundamental US Small Fund | 0.10% | 10/31/2016 |
Under the Fee Limitation Agreement, PIMCO is entitled to reimbursement by each Fund of any portion of the Supervisory and Administrative Fee and/or Investment Advisory Fee waived, reduced or reimbursed pursuant to the Fee Limitation Agreement (the “Reimbursement Amount”) during the previous three years, provided that such amount paid to PIMCO will not: 1) together with any recoupment of organizational expenses and pro rata Trustees’ fees pursuant to the Expense Limitation Agreement, exceed the Expense Limit; 2) exceed the total Reimbursement Amount; or 3) include any amounts previously reimbursed to PIMCO. The Fee Limitation Agreement will automatically renew for one-year terms unless PIMCO provides written notice to the Trust at least 30 days prior to the end of the then current term.
PIMCO may be reimbursed for these waived amounts in future periods, not to exceed thirty-six months after the waiver. Expenses that have been waived may still be reimbursed by the Administrator, to the extent the Fund’s annualized total portfolio operating expenses plus the
amount reimbursed does not exceed the operating expense limitation. The recoverable amounts to PIMCO at June 30, 2015, were as follows (amounts in thousands):
Fund Name | Recoverable Amounts | |||||
PIMCO RAE Fundamental Emerging Markets Fund | $ | 86 | ||||
PIMCO RAE Fundamental Global Fund | 66 | |||||
PIMCO RAE Fundamental Global ex-US Fund | 69 | |||||
PIMCO RAE Fundamental International Fund | 70 | |||||
PIMCO RAE Fundamental US Fund | 89 | |||||
PIMCO RAE Fundamental US Small Fund | 63 |
(f) Acquired Fund Fees and Expenses The Underlying Fund expenses for the Funds are based upon an allocation of a Fund’s assets among the Underlying Funds and upon the total annual operating expenses of the Institutional Class shares of these Underlying Funds. Underlying Fund expenses will vary with changes in the expenses of the Underlying Funds, as well as the allocation of a Fund’s assets.
PIMCO has contractually agreed, through October 31, 2016, to waive, first, the advisory fee and, second, the supervisory and administrative fee it receives of the PIMCO RAE Fundamental Global Fund in an amount equal to the expenses attributable to the advisory fees and the supervisory and administrative fees of the PIMCO RAE Fundamental US Fund, PIMCO RAE Fundamental International Fund and PIMCO RAE Fundamental Emerging Markets Fund indirectly incurred by the PIMCO RAE Fundamental Global Fund in connection with its investments in such Funds, to the extent the PIMCO RAE Fundamental Global Fund’s advisory fee and supervisory and administrative fee are greater than or equal to the advisory fees and supervisory and administrative fees of such Funds. 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.
PIMCO has contractually agreed, through October 31, 2016, to waive, first, the advisory fee and, second, the supervisory and administrative fee it receives from the PIMCO RAE Fundamental Global ex-US Fund in an amount equal to the expenses attributable to the advisory fees and the supervisory and administrative fees of the PIMCO RAE Fundamental International Fund and PIMCO RAE Fundamental Emerging Markets Fund indirectly incurred by the PIMCO RAE Fundamental Global ex-US Fund in connection with its investments in such Funds, to the extent the PIMCO RAE Fundamental Global ex-US Fund’s advisory fee and supervisory and administrative fee are greater than or equal to the advisory fees and supervisory and administrative fees of such Funds. 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.
The waivers are reflected on the Statements of Operations as a component of Waiver and/or Reimbursement by PIMCO. During the
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period ended March 31, 2015, the Funds below waived the following fees (amounts in thousands):
Fund Name | Waived Fees | |||||
PIMCO RAE Fundamental Global Fund | $ | 11 | ||||
PIMCO RAE Fundamental Global ex-US Fund | 24 |
7. RELATED PARTY TRANSACTIONS
The Adviser, Administrator, and Distributor are related parties. Fees payable to these parties are disclosed in Note 6 and the accrued related party fee amounts are disclosed on the Statements of Assets and Liabilities.
8. GUARANTEES AND INDEMNIFICATIONS
Under the Trust’s organizational documents, each Trustee or officer of the Trust is indemnified and each employee or other agent of the Trust (including the Trust’s investment manager) may be indemnified, to the extent permitted by the Act, against certain liabilities that may arise out of performance of their duties to the Funds. Additionally, in the normal course of business, the Funds enter into contracts that contain a variety of indemnification clauses. The Funds’ maximum exposure under these
arrangements is unknown as this would involve future claims that may be made against the Funds that have not yet occurred. However, the Funds have not had prior claims or losses pursuant to these contracts.
9. PURCHASES AND SALES OF SECURITIES
The length of time a Fund has held a particular security is not generally a consideration in investment decisions. A change in the securities held by a Fund is known as “portfolio turnover.” Each Fund may engage in frequent and active trading of portfolio securities to achieve its investment objective, particularly during periods of volatile market movements. High portfolio turnover involves correspondingly greater expenses to a Fund, including brokerage commissions or dealer mark-ups and other transaction costs on the sale of securities and reinvestments in other securities. Such sales may also result in realization of taxable capital gains, including short-term capital gains (which are generally taxed at ordinary income tax rates). The trading costs and tax effects associated with portfolio turnover may adversely affect a Fund’s performance. The portfolio turnover rates are reported in the Financial Highlights.
Purchases and sales of securities (excluding short-term investments) for the period ended June 30, 2015, were as follows (amounts in thousands†):
U.S. Government/Agency | All Other | |||||||||||||||||
Fund Name | Purchases | Sales | Purchases | Sales | ||||||||||||||
PIMCO RAE Fundamental Emerging Markets Fund | $ | 0 | $ | 0 | $ | 72,228 | $ | 13,212 | ||||||||||
PIMCO RAE Fundamental Global Fund | 0 | 0 | 925 | 895 | ||||||||||||||
PIMCO RAE Fundamental Global ex-US Fund | 0 | 0 | 1,625 | 1,645 | ||||||||||||||
PIMCO RAE Fundamental International Fund | 0 | 0 | 9,860 | 9,945 | ||||||||||||||
PIMCO RAE Fundamental US Fund | 0 | 0 | 22,826 | 20,552 | ||||||||||||||
PIMCO RAE Fundamental US Small Fund | 0 | 0 | 4,519 | 4,324 | ||||||||||||||
† | A zero balance may reflect actual amounts rounding to less than one thousand. |
10. SHARES OF BENEFICIAL INTEREST
The Trust may issue an unlimited number of shares of beneficial interest with a $0.0001 par value. Changes in shares of beneficial interest were as follows (shares and amounts in thousands†):
PIMCO RAE Fundamental Emerging Markets Fund (1) | PIMCO RAE Fundamental Global Fund (2) | PIMCO RAE Fundamental Global ex-US Fund (3) | PIMCO RAE Fundamental International Fund (4) | PIMCO RAE Fundamental US Fund | PIMCO RAE | |||||||||||||||||||||||||||||||||||||||||||||
Period from 06/05/2015 to 06/30/2015 | Period from 06/05/2015 to 06/30/2015 | Period from 06/05/2015 to 06/30/2015 | Period from 06/05/2015 to 06/30/2015 | Period from 06/05/2015 to 06/30/2015 | Period from 06/05/2015 to 06/30/2015 | |||||||||||||||||||||||||||||||||||||||||||||
Shares | Amount | Shares | Amount | Shares | Amount | Shares | Amount | Shares | Amount | Shares | Amount | |||||||||||||||||||||||||||||||||||||||
Receipts for shares sold | ||||||||||||||||||||||||||||||||||||||||||||||||||
Institutional Class | 193 | $ | 2,417 | 2 | $ | 26 | 0 | $ | 0 | 6 | $ | 210 | 63 | $ | 615 | 0 | $ | 0 | ||||||||||||||||||||||||||||||||
Class P | 1 | 10 | 1 | 10 | 1 | 10 | 1 | 10 | 1 | 10 | 1 | 10 | ||||||||||||||||||||||||||||||||||||||
Class A | 2 | 19 | 1 | 10 | 1 | 10 | 1 | 10 | 1 | 14 | 1 | 10 | ||||||||||||||||||||||||||||||||||||||
Class C | 1 | 10 | 2 | 17 | 1 | 10 | 1 | 10 | 1 | 10 | 1 | 10 | ||||||||||||||||||||||||||||||||||||||
Issued as reinvestment of distributions | ||||||||||||||||||||||||||||||||||||||||||||||||||
Institutional Class | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||||||||||||||||||||
Class P | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||||||||||||||||||||
Class A | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||||||||||||||||||||
Class C | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
ANNUAL REPORT | JUNE 30, 2015 | 69 |
Table of Contents
Notes to Financial Statements (Cont.)
PIMCO RAE Fundamental Emerging Markets Fund (1) | PIMCO RAE Fundamental Global Fund (2) | PIMCO RAE Fundamental Global ex-US Fund (3) | PIMCO RAE Fundamental International Fund (4) | PIMCO RAE Fundamental US Fund | PIMCO RAE | |||||||||||||||||||||||||||||||||||||||||||||
Period from 06/05/2015 to 06/30/2015 | Period from 06/05/2015 to 06/30/2015 | Period from 06/05/2015 to 06/30/2015 | Period from 06/05/2015 to 06/30/2015 | Period from 06/05/2015 to 06/30/2015 | Period from 06/05/2015 to 06/30/2015 | |||||||||||||||||||||||||||||||||||||||||||||
Shares | Amount | Shares | Amount | Shares | Amount | Shares | Amount | Shares | Amount | Shares | Amount | |||||||||||||||||||||||||||||||||||||||
Issued in reorganization^ | ||||||||||||||||||||||||||||||||||||||||||||||||||
Institutional Class | 19,842 | 198,415 | 3,869 | 38,691 | 7,106 | 71,057 | 15,659 | 156,592 | 45,448 | 454,480 | 4,677 | 46,771 | ||||||||||||||||||||||||||||||||||||||
Cost of shares redeemed | ||||||||||||||||||||||||||||||||||||||||||||||||||
Institutional Class | 0 | 0 | 0 | 0 | 0 | 0 | (257 | ) | (2,540 | ) | (71 | ) | (701 | ) | 0 | 0 | ||||||||||||||||||||||||||||||||||
Class P | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||||||||||||||||||||
Class A | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||||||||||||||||||||
Class C | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||||||||||||||||||||
Net increase resulting from Fund share transactions | 20,039 | $ | 200,871 | 3,875 | $ | 38,754 | 7,109 | $ | 71,087 | 15,411 | $ | 154,292 | 45,443 | $ | 454,428 | 4,680 | $ | 46,801 | ||||||||||||||||||||||||||||||||
† | A zero balance may reflect actual amounts rounding to less than one thousand. |
^ | See Note 1 in the Notes to Financial Statements. |
(1) | As of June 30, 2015, two shareholders owned 10% or more of the Fund’s total outstanding shares comprising 31% of the Fund. |
(2) | As of June 30, 2015, two shareholders owned 10% or more of the Fund’s total outstanding shares comprising 81% of the Fund. |
(3) | As of June 30, 2015, three shareholders owned 10% or more of the Fund’s total outstanding shares comprising 100% of the Fund. |
(4) | As of June 30, 2015, two shareholders each owned 10% or more of the Fund’s total outstanding shares comprising 54% of the Fund. One shareholder is a related party and comprises 35% of the Fund.* |
(5) | As of June 30, 2015, two shareholders owned 10% or more of the Fund’s total outstanding shares comprising 52% of the Fund. |
* | Related parties may include, but are not limited to, the investment manager and its affiliates, affiliated broker dealers, fund of funds and directors or employees of the Trust or Adviser. |
11. REGULATORY AND LITIGATION MATTERS
The Trust is not named as a defendant in any material litigation or arbitration proceedings and are not aware of any material litigation or claim pending or threatened against it.
PIMCO has received a Wells Notice from the staff of the U.S. Securities and Exchange Commission (“SEC”) that relates to the PIMCO Total Return Active Exchange-Traded Fund (“BOND”), a series of PIMCO ETF Trust. The notice indicates the staff’s preliminary determination to recommend that the SEC commence a civil action against PIMCO stemming from a nonpublic investigation relating to BOND. A Wells Notice is neither a formal allegation of wrongdoing nor a finding that any law was violated.
This matter principally pertains to the valuation of smaller sized positions in non-agency mortgage-backed securities purchased by BOND between its inception on February 29, 2012 and June 30, 2012, BOND’s performance disclosures for that period, and PIMCO’s compliance policies and procedures related to these matters.
The Wells process provides PIMCO with its opportunity to demonstrate to the SEC staff why it believes its conduct was appropriate, in keeping with industry standards, and that no action should be taken. PIMCO believes that this matter is unlikely to have a material adverse effect on any Fund or on PIMCO’s ability to provide investment management services to any Fund.
The foregoing speaks only as of the date of this report.
12. FEDERAL INCOME TAX MATTERS
Each Fund intends to qualify as a regulated investment company under Subchapter M of the Internal Revenue Code (the “Code”) and distribute all of its taxable income and net realized gains, if applicable, to shareholders. Accordingly, no provision for Federal income taxes has been made.
The Funds may be subject to local withholding taxes, including those imposed on realized capital gains. Any applicable foreign capital gains tax is accrued daily based upon net unrealized gains, and may be payable following the sale of any applicable investments.
In accordance with U.S. GAAP, the Adviser has reviewed the Funds’ tax positions for all open tax years. As of June 30, 2015, the Funds have recorded no liability for net unrecognized tax benefits relating to uncertain income tax positions they have taken or expect to take in future tax returns.
The Funds file U.S. tax returns. While the statute of limitations remains open to examine the Funds’ U.S. tax returns filed for the fiscal years ending in 2012-2014, no examinations are in progress or anticipated at this time. The Funds are not aware of any tax positions for which it is reasonably possible that the total amounts of unrecognized tax benefits will significantly change in the next twelve months.
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June 30, 2015
As of June 30, 2015, the components of distributable taxable earnings are as follows (amounts in thousands):
Undistributed Ordinary Income | Undistributed Long-Term Capital Gains | Net Tax Basis Unrealized Appreciation/ (Depreciation) (1) | Other Book-to-Tax Accounting Differences (2) | Accumulated Capital Losses (3) | Qualified Late-Year Loss Deferral - Capital (4) | Qualified Late-Year Loss Deferral - Ordinary (5) | ||||||||||||||||||||||||
PIMCO RAE Fundamental Emerging Markets Fund | $ | 1,351 | $ | — | $ | (7,093 | ) | $ | (111 | ) | $ | (1,676 | ) | $ | — | $ | — | |||||||||||||
PIMCO RAE Fundamental Global Fund | — | — | (546 | ) | — | (11 | ) | — | — | |||||||||||||||||||||
PIMCO RAE Fundamental Global Ex-US Fund | — | — | (958 | ) | — | (21 | ) | — | (1 | ) | ||||||||||||||||||||
PIMCO RAE Fundamental International Fund | 267 | 2,015 | 22,299 | (189 | ) | — | — | — | ||||||||||||||||||||||
PIMCO RAE Fundamental US Fund | 569 | 4,392 | 104,799 | — | — | — | — | |||||||||||||||||||||||
PIMCO RAE Fundamental US Small Fund | 102 | 821 | 7,335 | — | — | — | — |
(1) | Adjusted for open wash sale loss deferrals and accelerated recognition of unrealized gain on certain forward contracts, adjustments for real estate investment trusts, and passive foreign investment companies for federal income tax purposes. |
(2) | Represents differences in income tax regulations and financial accounting principles generally accepted in the United States of America, namely for additional income due to transfer and Stamp Duty Tax adjustment. |
(3) | Capital losses available to offset future net capital gains expire in varying amounts in the years shown below. |
(4) | Capital losses realized during the period November 1, 2014 through June 30, 2015 which the Fund elected to defer to the following taxable year pursuant to income tax regulations. |
(5) | Specified losses realized during the period November 1, 2014 through June 30, 2015 and Ordinary losses realized during the period January 1, 2015 through June 30, 2015, which the Fund elected to defer to the following taxable year pursuant to income tax regulations. |
Under the Regulated Investment Company Act of 2010, a Fund is permitted to carry forward any new capital losses for an unlimited period. Additionally, such capital losses that are carried forward will retain their character as either short-term or long-term capital losses rather than being considered all short-term under previous law.
As of June 30, 2015, the Funds had the following post-effective capital losses with no expiration:
Short-Term | Long-Term | |||||||||
PIMCO RAE Fundamental Emerging Markets Fund | $ | 1,209 | $ | 467 | ||||||
PIMCO RAE Fundamental Global Fund | 11 | — | ||||||||
PIMCO RAE Fundamental Global Ex-US Fund | 21 | — | ||||||||
PIMCO RAE Fundamental International Fund | — | — | ||||||||
PIMCO RAE Fundamental US Fund | — | — | ||||||||
PIMCO RAE Fundamental US Small Fund | — | — |
As of June 30, 2015, the aggregate cost and the net unrealized appreciation/(depreciation) of investments for federal income tax purposes are as follows (amounts in thousands):
Federal Tax Cost | Unrealized Appreciation | Unrealized (Depreciation) | Net Unrealized Appreciation/ (Depreciation) (6) | |||||||||||||||
PIMCO RAE Fundamental Emerging Markets Fund | $ | 203,327 | $ | 15,721 | $ | (22,814 | ) | $ | (7,093 | ) | ||||||||
PIMCO RAE Fundamental Global Fund | 38,705 | — | (545 | ) | (545 | ) | ||||||||||||
PIMCO RAE Fundamental Global Ex-US Fund | 70,995 | — | (958 | ) | (958 | ) | ||||||||||||
PIMCO RAE Fundamental International Fund | 128,160 | 29,503 | (7,204 | ) | 22,299 | |||||||||||||
PIMCO RAE Fundamental US Fund | 340,701 | 113,545 | (8,746 | ) | 104,799 | |||||||||||||
PIMCO RAE Fundamental US Small Fund | 38,837 | 10,283 | (2,948 | ) | 7,335 |
(6) | Primary differences, if any, between book and tax net unrealized appreciation/(depreciation) on investments are attributable to open wash sale loss deferrals, partnership investments, adjustments for real estate investment trusts, and passive foreign investment companies. |
ANNUAL REPORT | JUNE 30, 2015 | 71 |
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Notes to Financial Statements (Cont.)
June 30, 2015
For the fiscal year ended June 30, 2015, the Funds made the following tax basis distributions (amounts in thousands):
June 30, 2015 | ||||||||||||||
Ordinary Income Distributions (7) | Long-Term Capital Gain Distributions | Return of Capital (8) | ||||||||||||
PIMCO RAE Fundamental Emerging Markets Fund | $ | — | $ | — | $ | — | ||||||||
PIMCO RAE Fundamental Global Fund | — | — | — | |||||||||||
PIMCO RAE Fundamental Global Ex-US Fund | — | — | — | |||||||||||
PIMCO RAE Fundamental International Fund | — | — | — | |||||||||||
PIMCO RAE Fundamental US Fund | — | — | — | |||||||||||
PIMCO RAE Fundamental US Small Fund | — | — | — | |||||||||||
(7) | Includes short-term capital gains, if any, distributed. |
(8) | A portion of the distributions made represents a tax return of capital. Return of capital distributions have been reclassified from undistributed net investment income to paid-in capital to more appropriately conform financial accounting to tax accounting. |
13. SUBSEQUENT EVENTS
Effective August 10, 2015, the contingent deferred sales charges holding period is reduced from 18 months to 12 months for purchases of such Class A shares on or after August 10, 2015.
There were no other subsequent events identified that require recognition or disclosure.
72 | PIMCO EQUITY SERIES |
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Report of Independent Registered Public Accounting Firm
To the Board of Trustees and Shareholders of the PIMCO Equity Series®
In our opinion, the accompanying statements of assets and liabilities, including the schedules of investments, and the related statements of operations and of changes in net assets and the financial highlights present fairly, in all material respects, the financial position of PIMCO RAE Fundamental US Fund, PIMCO RAE Fundamental US Small Fund, PIMCO RAE Fundamental International Fund, PIMCO RAE Fundamental Emerging Markets Fund, PIMCO RAE Fundamental Global Fund, and PIMCO RAE Fundamental Global ex-US Fund (six series constituting the PIMCO Equity Series®, hereinafter referred to as the “Funds”) at June 30, 2015, the results of each of their operations, the changes in each of their net assets and the financial highlights for the period June 5, 2015 (commencement of operations) through June 30, 2015, in conformity with accounting principles generally accepted in the United States of America. These financial statements and financial highlights (hereafter referred to as “financial statements”) are the responsibility of the Funds’ management. Our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits of these financial statements in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audits to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, and evaluating the overall financial statement presentation. We believe that our audits, which included confirmation of securities at June 30, 2015 by correspondence with the transfer agent, custodian and brokers, and the application of alternative auditing procedures where applicable, provide a reasonable basis for our opinion.
PricewaterhouseCoopers LLP
Kansas City, Missouri
August 20, 2015
ANNUAL REPORT | JUNE 30, 2015 | 73 |
Table of Contents
Federal Income Tax Information
(Unaudited)
As required by the Internal Revenue Code (“Code”) and Treasury Regulations, if applicable, shareholders must be notified of the Trust’s fiscal year end (June 30, 2015) regarding the status of dividend received deduction, qualified dividend income, qualified interest income, and qualified short-term capital gain.
Dividend Received Deduction. Corporate shareholders are generally entitled to take the dividend received deduction on the portion of a Fund’s dividend distribution that qualifies under tax law. The percentage of each Fund’s fiscal 2015 ordinary income dividends that qualifies for the corporate dividend received deduction is set forth below.
Qualified Dividend Income. Under the Jobs and Growth Tax Relief Reconciliation Act of 2003 (the “Act”), the following percentages of ordinary dividends paid during the fiscal year ended June 30, 2015 are designated as “qualified dividend income”, as defined in the Act, subject to reduced tax rates.
Qualified Interest Income and Qualified Short-Term Capital Gain (for non-U.S. resident shareholders only). Under the American Jobs Creation Act of 2004, the following amounts of ordinary dividends paid during the fiscal year ended June 30, 2015 are considered to be derived from “qualified interest income,” as defined in Section 871(k)(1)(E) of the Code, and therefore are designated as interest-related dividends, as defined in Section 871(k)(1)(C) of the Code. Further, the following amounts of ordinary dividends paid during the fiscal year ended June 30, 2015 are considered to be derived from “qualified short-term capital gain,” as defined in Section 871(k)(2)(D) of the Code, and therefore are designated as qualified short-term gain dividends, as defined by Section 871(k)(2)(C) of the Code.
Dividend Received Deduction % | Qualified Dividend Income % | Qualified Interest Income (000s) | Qualified Short-Term Capital Gain (000s) | |||||||||||||||
PIMCO RAE Fundamental Emerging Markets Fund | 0.00% | 0.00% | $ | 0 | $ | 0 | ||||||||||||
PIMCO RAE Fundamental Global Ex-US Fund | 0.00% | 0.00% | 0 | 0 | ||||||||||||||
PIMCO RAE Fundamental Global Fund | 0.00% | 0.00% | 0 | 0 | ||||||||||||||
PIMCO RAE Fundamental International Fund | 0.00% | 0.00% | 0 | 0 | ||||||||||||||
PIMCO RAE Fundamental US Fund | 0.00% | 0.00% | 0 | 0 | ||||||||||||||
PIMCO RAE Fundamental US Small Fund | 0.00% | 0.00% | 0 | 0 |
Foreign Taxes. PIMCO RAE Fundamental Emerging Markets Fund and PIMCO RAE Fundamental International Fund earned foreign source income of $1,517,281 and $358,905 respectively, during the year ended June 30, 2015. The Funds have made an election under Internal Revenue Code Section 853 to pass through foreign taxes paid in the amount of $155,979 and $45,885 respectively, to shareholders. Shareholders will receive more detailed information along with their Form 1099-DIV.
Shareholders are advised to consult their own tax advisor with respect to the tax consequences of their investment in the Trust. In January 2016, you will be advised on IRS Form 1099-DIV as to the federal tax status of the dividends and distributions received by you in calendar year 2015.
74 | PIMCO EQUITY SERIES |
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Glossary: (abbreviations that may be used in the preceding statements)
(Unaudited)
Currency Abbreviations: | ||||||||||
USD (or $) | United States Dollar | |||||||||
Other Abbreviations: | ||||||||||
ADR | American Depositary Receipt | JSC | Joint Stock Company | SP-ADR | Sponsored American Depositary Receipt | |||||
GDR | Global Depositary Receipt | REIT | Real Estate Investment Trust | SP-GDR | Sponsored Global Depositary Receipt |
ANNUAL REPORT | JUNE 30, 2015 | 75 |
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The charts below identify the Trustees and executive officers of the Trust. Unless otherwise indicated, the address of all persons below is 650 Newport Center Drive, Newport Beach, CA 92660. The Funds’ Statement of Additional Information includes more information about the Trustees and Officers. To request a free copy, call PIMCO at (888) 877-4626 or visit the Funds’ website at www.pimco.com.
Name, Year of Birth and Position Held with Trust | Term of Office and Length of Time Served** | Principal Occupation(s) During Past 5 Years | Number of Funds in Fund Complex Overseen by Trustee | Other Public Company and Investment Company Directorships Held by Trustee During the Past 5 Years | ||||
Interested Trustees* | ||||||||
Brent R. Harris (1959) Chairman of the Board and Trustee | 03/2010 to present | Managing Director and member of Executive Committee, PIMCO. | 177 | Chairman and Trustee, PIMCO Funds; Chairman and Trustee, PIMCO Variable Insurance Trust; Chairman and Trustee, PIMCO ETF Trust; Chairman and Trustee, PIMCO Equity Series VIT; Director, StocksPLUS® Management, Inc; and member of Board of Governors, Investment Company Institute. Board Member and Owner, Harris Holdings, LLC (1992-present). | ||||
Independent Trustees | ||||||||
E. Philip Cannon (1940) Trustee | 03/2010 to present | Private Investor. Formerly, President, Houston Zoo. | 177 | Trustee, PIMCO Funds; Trustee, PIMCO Variable Insurance Trust; Trustee, PIMCO ETF Trust; and Trustee, PIMCO Equity Series VIT. Formerly, Trustee, Allianz Funds (formerly, PIMCO Funds: Multi-Manager Series. | ||||
Peter B. McCarthy (1950) Trustee | 09/2011 to present | Formerly, Assistant Secretary and Chief Financial Officer, United States Department of Treasury; Deputy Managing Director, Institute of International Finance. | 177 | Trustee, PIMCO Funds; Trustee, PIMCO Variable Insurance Trust; Trustee, PIMCO ETF Trust; and Trustee, PIMCO Equity Series VIT. |
(*) Mr. Harris is an “interested persons” of the Trust (as that term is defined in the 1940 Act) because of his affiliations with PIMCO.
(**) Trustees serve until their successors are duly elected and qualified.
76 | PIMCO EQUITY SERIES |
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(Unaudited)
Executive Officers
Name, Year of Birth and Position Held with Trust* | Term of Office and Length of Time Served | Principal Occupation(s) During Past 5 Years* | ||
Peter G. Strelow (1970) President | 02/2014 to present
Senior Vice President 11/2013 to 02/2014
Vice President 03/2010 to 11/2013 | Managing Director, PIMCO. President, PIMCO Funds, PIMCO Variable Insurance Trust, PIMCO ETF Trust, PIMCO Equity Series VIT, PIMCO Managed Accounts Trust and PIMCO Closed-End Funds. | ||
David C. Flattum (1964) Chief Legal Officer | 03/2010 to present | Managing Director and General Counsel, PIMCO. Chief Legal Officer, PIMCO Funds, PIMCO Variable Insurance Trust, PIMCO ETF Trust and PIMCO Equity Series VIT. Formerly, Managing Director, Chief Operating Officer and General Counsel, Allianz Asset Management of America L.P. | ||
Jennifer E. Durham (1970) Chief Compliance Officer | 03/2010 to present | Managing Director and Chief Compliance Officer, PIMCO. Chief Compliance Officer, PIMCO Funds, PIMCO Variable Insurance Trust, PIMCO ETF Trust and PIMCO Equity Series VIT. | ||
Brent R. Harris (1959) Senior Vice President | 03/2010 to present | Managing Director and current member of Executive Committee, PIMCO. Senior Vice President, PIMCO Funds, PIMCO Variable Insurance Trust, PIMCO ETF Trust and PIMCO Equity Series VIT. | ||
Douglas M. Hodge (1957) Senior Vice President | 02/2014 to present
President 05/2013 to 02/2014 | Managing Director, Chief Executive Officer, PIMCO (since 2/14); Chief Operating Officer, PIMCO (7/09 - 2/14); Member of Executive Committee and Head of PIMCO’s Asia Pacific region. Member Global Executive Committee, Allianz Asset Management. Senior Vice President, PIMCO Funds, PIMCO Variable Insurance Trust, PIMCO ETF Trust and PIMCO Equity Series VIT. | ||
Kevin M. Broadwater (1964) Vice President - Senior Counsel | 05/2012 to present | Executive Vice President and Deputy General Counsel, PIMCO. Vice President - Senior Counsel, PIMCO Funds, PIMCO Variable Insurance Trust, PIMCO ETF Trust and PIMCO Equity Series VIT. | ||
Joshua D. Ratner (1976)** Vice President - Senior Counsel, Secretary | 11/2013 to present
Assistant Secretary 03/2010 to 01/2011 | Executive Vice President and Senior Counsel, PIMCO. Chief Legal Officer, PIMCO Investments LLC. Vice President - Senior Counsel, Secretary, PIMCO Funds, PIMCO Variable Insurance Trust, PIMCO ETF Trust and PIMCO Equity Series VIT. Vice President, Secretary and Chief Legal Officer, PIMCO Managed Accounts Trust and PIMCO Closed-End Funds. | ||
Ryan G. Leshaw (1980) Assistant Secretary | 05/2012 to present | Vice President and Counsel, PIMCO. Assistant Secretary, PIMCO Funds, PIMCO Variable Insurance Trust, PIMCO ETF Trust, PIMCO Equity Series VIT, PIMCO Managed Accounts Trust and PIMCO Closed-End Funds. Formerly, Associate, Willkie Farr & Gallagher LLP. | ||
Stacie D. Anctil (1969) Vice President | 05/2015 to present
Assistant Treasurer 03/2010 to 05/2015 | Senior Vice President, PIMCO. Vice President, PIMCO Funds, PIMCO Variable Insurance Trust, PIMCO ETF Trust, PIMCO Equity Series VIT, PIMCO Managed Accounts Trust and PIMCO Closed-End Funds. | ||
William G. Galipeau (1974) Vice President | 11/2013 to present | Executive Vice President, PIMCO. Vice President, PIMCO Funds, PIMCO Variable Insurance Trust, PIMCO ETF Trust and PIMCO Equity Series VIT. Treasurer, PIMCO Managed Accounts Trust and PIMCO Closed-End Funds. Formerly, Vice President, Fidelity Investments. | ||
Eric D. Johnson (1970)** Vice President | 05/2011 to present | Executive Vice President, PIMCO. Vice President, PIMCO Funds, PIMCO Variable Insurance Trust, PIMCO ETF Trust, PIMCO Equity Series VIT, PIMCO Managed Accounts Trust and PIMCO Closed-End Funds. | ||
Henrik P. Larsen (1970) Vice President | 03/2010 to present | Senior Vice President, PIMCO. Vice President, PIMCO Funds, PIMCO Variable Insurance Trust, PIMCO ETF Trust and PIMCO Equity Series VIT. | ||
Greggory S. Wolf (1970) Vice President | 05/2011 to present | Senior Vice President, PIMCO. Vice President, PIMCO Funds, PIMCO Variable Insurance Trust, PIMCO ETF Trust and PIMCO Equity Series VIT. | ||
Trent W. Walker (1974) Treasurer | 11/2013 to present
Assistant Treasurer 03/2010 to 11/2013 | Senior Vice President, PIMCO. Treasurer, PIMCO Funds, PIMCO Variable Insurance Trust, PIMCO ETF Trust and PIMCO Equity Series VIT. Assistant Treasurer, PIMCO Managed Accounts Trust and PIMCO Closed-End Funds. | ||
Erik C. Brown (1967) Assistant Treasurer | 03/2010 to present | Executive Vice President, PIMCO. Assistant Treasurer, PIMCO Funds, PIMCO Variable Insurance Trust, PIMCO ETF Trust, PIMCO Equity Series VIT, PIMCO Managed Accounts Trust and PIMCO Closed-End Funds. | ||
Jason J. Nagler (1982)** Assistant Treasurer | 05/2015 to present | Vice President, PIMCO. Assistant Treasurer, PIMCO Funds, PIMCO Variable Insurance Trust, PIMCO ETF Trust, PIMCO Equity Series VIT, PIMCO Managed Accounts Trust and PIMCO Closed-End Funds. Formerly, Head of Mutual Fund Reporting, GMO and Assistant Treasurer, GMO Trust and GMO Series Trust Funds. |
(*) The term “PIMCO Closed-End Funds” as used herein includes: PIMCO California Municipal Income Fund, PIMCO California Municipal Income Fund II, PIMCO California Municipal Income Fund III, PIMCO Municipal Income Fund, PIMCO Municipal Income Fund II, PIMCO Municipal Income Fund III, PIMCO New York Municipal Income Fund, PIMCO New York Municipal Income Fund II, PIMCO New York Municipal Income Fund III, PCM Fund Inc., PIMCO Corporate & Income Opportunity Fund, PIMCO Corporate & Income Strategy Fund, PIMCO Dynamic Credit Income Fund, PIMCO Dynamic Income Fund, PIMCO Global StocksPLUS & Income Fund, PIMCO High Income Fund, PIMCO Income Opportunity Fund, PIMCO Income Strategy Fund, PIMCO Income Strategy Fund II and PIMCO Strategic Income Fund, Inc.
(**) The address of these officers is Pacific Investment Management Company LLC, 1633 Broadway, New York, New York 10019.
ANNUAL REPORT | JUNE 30, 2015 | 77 |
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The Funds2,3 consider customer privacy to be a fundamental aspect of their relationships with shareholders and are committed to maintaining the confidentiality, integrity and security of their current, prospective and former shareholders’ non-public personal information. The Funds have developed policies that are designed to protect this confidentiality, while allowing shareholder needs to be served.
Obtaining Personal Information
In the course of providing shareholders with products and services, the Funds and certain service providers to the Funds, such as the Funds’ investment advisers or sub-advisers (“Advisers”), may obtain non-public personal information about shareholders, which may come from sources such as account applications and other forms, from other written, electronic or verbal correspondence, from shareholder transactions, from a shareholder’s brokerage or financial advisory firm, financial advisor or consultant, and/or from information captured on applicable websites.
Respecting Your Privacy
As a matter of policy, the Funds do not disclose any non-public personal information provided by shareholders or gathered by the Funds to non-affiliated third parties, except as required or permitted by law or as necessary for such third parties to perform their agreements with respect to the Funds. As is common in the industry, non-affiliated companies may from time to time be used to provide certain services, such as preparing and mailing prospectuses, reports, account statements and other information, conducting research on shareholder satisfaction and gathering shareholder proxies. The Funds or their affiliates may also retain non-affiliated companies to market Fund shares or products which use Fund shares and enter into joint marketing arrangements with them and other companies. These companies may have access to a shareholder’s personal and account information, but are permitted to use this information solely to provide the specific service or as otherwise permitted by law. In most cases, the shareholders will be clients of a third party, but the Funds may also provide a shareholder’s personal and account information to the shareholder’s respective brokerage or financial advisory firm and/or financial advisor or consultant.
Sharing Information with Third Parties
The Funds reserve the right to disclose or report personal or account information to non-affiliated third parties in limited circumstances where the Funds believe in good faith that disclosure is required under law, to cooperate with regulators or law enforcement authorities, to protect their rights or property, or upon reasonable request by any fund advised by PIMCO in which a shareholder has invested. In addition, the Funds may disclose information about a shareholder or a shareholder’s accounts to a non-affiliated third party at the shareholder’s request or with the consent of the shareholder.
Sharing Information with Affiliates
The Funds may share shareholder information with their affiliates in connection with servicing shareholders’ accounts, and subject to applicable law may provide shareholders with information about products and services that the Funds or their Advisers, distributors or their affiliates (“Service Affiliates”) believe may be of interest to such shareholders. The information that the Funds may share may include, for example, a shareholder’s participation in the Funds or in other investment programs sponsored by a Service Affiliate, a shareholder’s ownership of certain types of accounts (such as IRAs), information about the Funds’ experiences or transactions with a shareholder, information captured on applicable websites, or other data about a shareholder’s accounts, subject to applicable law. The Funds’ Service Affiliates, in turn, are not permitted to share shareholder information with non-affiliated entities, except as required or permitted by law.
Procedures to Safeguard Private Information
The Funds take seriously the obligation to safeguard shareholder non-public personal information. In addition to this policy, the Funds have implemented procedures that are designed to restrict access to a shareholder’s non-public personal information to internal personnel who need to know that information to perform their jobs, such as servicing shareholder accounts or notifying shareholders of new products or services. Physical, electronic and procedural safeguards are in place to guard a shareholder’s non-public personal information.
Information Collected from Websites
Websites maintained by the Funds or their service providers may use a variety of technologies to collect information that help the Funds and their service providers understand how the website is used. Information collected from your web browser (including small files stored on your device that are commonly referred to as “cookies”) allow the websites to recognize your web browser and help to personalize and improve your user experience and enhance navigation of the website. In addition, the Funds or their Service Affiliates may use third parties to place advertisements for the Funds on other websites, including banner advertisements. Such third parties may collect anonymous information through the use of cookies or action tags (such as web beacons). The information these third parties collect is generally limited to technical and web navigation information, such as your IP address, web pages visited and browser type, and does not include personally identifiable information such as name, address, phone number or email address.
You can change your cookie preferences by changing the setting on your web browser to delete or reject cookies. If you delete or reject cookies, some website pages may not function properly.
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Changes to the Privacy Policy
From time to time, the Funds may update or revise this privacy policy. If there are changes to the terms of this privacy policy, documents containing the revised policy on the relevant website will be updated.
1 Effective as of September 5, 2014.
2 PIMCO Investments LLC (“PI”) serves as the Funds’ distributor. This Privacy Policy applies to the activities of PI to the extent that PI regularly effects or engages in transactions with or for a Fund shareholder who is the record owner of such shares. For purposes of this Privacy Policy, references to “the Funds” shall include PI when acting in this capacity.
3 When distributing this Policy, a Fund may combine the distribution with any similar distribution of its investment adviser’s privacy policy. The distributed, combined policy may be written in the first person (i.e., by using “we” instead of “the Funds”).
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Approval of the Investment Advisory Contract and Second Amended and Restated Supervision and Administration Agreement
Approval of the Investment Advisory Contract, Second Amended and Restated Supervision and Administration Agreement, Sub-Advisory Agreement and Portfolio Implementation Agreement for PIMCO RAE Fundamental Emerging Markets Fund, PIMCO RAE Fundamental Global Fund, PIMCO RAE Fundamental Global ex-US Fund, PIMCO RAE Fundamental International Fund, PIMCO RAE Fundamental US Fund and PIMCO RAE Fundamental US Small Fund
At a meeting held on February 25, 2015, the Board of Trustees (the “Board”) of PIMCO Equity Series (the “Trust”), including all of the independent Trustees (the “Independent Trustees”), approved for an initial two-year term the Investment Advisory Contract (the “Investment Advisory Contract”) and the Second Amended and Restated Supervision and Administration Agreement (the “Supervision and Administration Agreement”) with Pacific Investment Management Company LLC (“PIMCO”), on behalf of the PIMCO RAE Fundamental Emerging Markets Fund, PIMCO RAE Fundamental Global Fund, PIMCO RAE Fundamental Global ex-US Fund, PIMCO RAE Fundamental International Fund, PIMCO RAE Fundamental US Fund and PIMCO RAE Fundamental US Small Fund, each a new series of the Trust (each a “New Fund” and, together, the “New Funds”). On February 25, 2015, the Board also approved for an initial two-year term the Amended and Restated Sub-Advisory Agreement (the “Sub-Advisory Agreement”) with Research Affiliates, LLC (“Research Affiliates”) and the Portfolio Implementation Agreement (the “Portfolio Implementation Agreement”) with Parametric Portfolio Associates LLC (“Parametric”) (together with the Investment Advisory Contract and the Supervision and Administration Agreement, the “Agreements”) on behalf of the New Funds.
The information, material factors and conclusions that formed the basis for the Board’s approvals are described below.
1. INFORMATION RECEIVED
(a) Materials Reviewed: The Board received a wide variety of materials relating to the services to be provided by PIMCO, Research Affiliates and Parametric, both in connection with the New Funds’ meeting and the August 13, 2014 meeting at which the Board considered the renewal of the Investment Advisory Contract and the Supervision and Administration Agreement, between PIMCO and the existing series of the Trust. The Board reviewed information relating to proposed fund operations, including the New Funds’ compliance program, shareholder services, valuation, custody, distribution, and other information relating to the nature, extent and quality of services proposed to be provided by PIMCO, Research Affiliates and Parametric. In considering whether or not to approve the Agreements, the Board also reviewed materials provided by PIMCO, which included, among other things, comparative industry data with regard to expense ratios of funds with investment objectives and policies similar to those of the New Funds. The Board also reviewed material provided by counsel to the Trust and the Independent Trustees, which included, among other things, memoranda outlining legal duties of the Board. The Board also reviewed information about the personnel who would be providing investment management and administrative services to the New Funds.
(b) Review Process: In connection with the approval of the Agreements, the Board reviewed written materials prepared by PIMCO, which included, among other things, comparative fee data prepared at the Board’s request by Lipper, Inc. (“Lipper”), an independent provider of investment company performance and fee and expense data. The Board also requested and received assistance and advice regarding applicable legal standards from Trust counsel. The Board also heard oral presentations on matters related to the Agreements. The approval determinations were made on the basis of each Trustee’s business judgment after consideration of all the information presented. Individual Trustees may have given different weights to certain factors and assigned various degrees of materiality to information received in connection with the approval process. In deciding to approve the Agreements, the Board did not identify any single factor or particular information that, in isolation, was controlling. This summary describes the most important, but not all, of the factors considered by the Board.
2. NATURE, EXTENT AND QUALITY OF SERVICES
(a) PIMCO, Research Affiliates, Parametric, their Personnel, and Resources: The Board considered the depth and quality of the investment management process of PIMCO, Research Affiliates and Parametric, including for each entity, the experience and capabilities of its senior management and other personnel, and the overall financial strength and stability of its organization. The Board also considered the various services that PIMCO provides under the Investment Advisory Contract. The Board reviewed the nature, extent and quality of services providing to the Trust’s existing Funds under the Investment Advisory Contract. The Board noted that PIMCO makes available to its investment professionals a variety of resources and systems relating to compliance, performance and portfolio accounting. The Board also noted PIMCO’s commitment to investing in information technology supporting compliance, as well as PIMCO’s continuing efforts to attract and retain qualified personnel and to maintain and enhance its resources and systems. The Board considered PIMCO’s policies, procedures and systems to assure compliance with applicable laws and regulations and to conduct effective oversight of Research Affiliates and Parametric, and its commitment to these programs; its attention to matters that may involve conflicts of interest between the New Funds’ investments and those of other accounts; and its efforts to keep the Board informed about matters relevant to the New Funds and their shareholders.
Similarly, the Board considered the sub-advisory services proposed to be provided by Research Affiliates to the New Funds and the portfolio implementation services proposed to be provided by Parametric to the
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New Funds. The Board also considered information about the Research Affiliates’ and Parametric’s investment personnel responsible for providing services under the Sub-Advisory Agreement and the Portfolio Implementation Agreement. The Board reviewed the nature and quality of Research Affiliates’ investment management and research capabilities, the experience and capabilities of its portfolio management personnel, and in particular the experience and capabilities of Robert Arnott, Jason Hsu, and Chris Brightman, principals in the firm of Research Affiliates, and the overall financial strength of the organization. The Board also considered the nature and quality of Parametric’s trading, risk management, and compliance capabilities and resources, which are integral parts of its role as portfolio implementer.
Ultimately, the Board concluded that the nature, extent and quality of services proposed to be provided by PIMCO, Research Affiliates and Parametric under the Agreements are likely to benefit the New Funds and their shareholders.
(b) Other Services: The Board also considered the nature, extent, quality and cost of administrative and shareholder services to be provided by PIMCO to the New Funds under the Agreements. The Board considered the terms of the Trust’s Supervision and Administration Agreement, under which the New Funds will pay for the supervisory and administrative services they require under what is essentially an all-in fee structure (the “unified fee”). In return, PIMCO would provide or procure supervisory and administrative services and bear the costs of various third party services required by the New Funds, including audit, custodial, portfolio accounting, legal, transfer agency and printing costs. The Board considered PIMCO’s provision of these services to other series of the Trust and its supervision of the Trust’s third party service providers to assure that these service providers continue to provide a high level of service relative to alternatives in the market.
Ultimately, the Board concluded that the nature, extent and quality of the services to be provided by PIMCO would likely benefit the New Funds and their shareholders.
3. INVESTMENT PERFORMANCE
As the New Funds had not yet commenced operations at the time the Agreements were considered, the Board did not receive or consider investment performance information.
4. ADVISORY FEES, SUPERVISORY AND ADMINISTRATIVE FEES AND TOTAL EXPENSES
PIMCO reported to the Board that, in proposing fees and expenses for each New Fund, PIMCO considers a number of factors, including the type and complexity of the services provided, the cost of providing services, the risk assumed by PIMCO in the provision of services, the impact on potential returns from different levels of fees, the competitive
marketplace for financial products, and the attractiveness of potential returns to prospective investors in the New Funds. Fees proposed for the New Funds for advisory services and supervisory and administrative services may vary in light of these various factors.
The Board reviewed the proposed advisory fee, supervisory and administrative fee and estimated total expenses of each New Fund (each as a percentage of average net assets) and compared such amounts with the average and median fees and expense levels of other similar funds. With respect to advisory fees, the Board reviewed data from Lipper that compared the average and median advisory fees of other funds in a “Peer Group” of comparable funds, as well as the universe of other similar funds. The Board noted fees proposed for different Funds and classes for advisory, sub-advisory, portfolio implementation and supervisory and administrative services may vary in light of different factors. The Board also noted that Lipper’s methodology for the New Funds resulted in a limited Peer Group. The Board compared each New Fund’s total expenses to other funds in the Expense Group provided by Lipper and found the total expenses of each New Fund to be reasonable. The Board also found the fees to be paid by PIMCO to Research Affiliates and Parametric to be reasonable.
The Board also considered the New Funds’ proposed supervisory and administrative fees, comparing them to similar funds in the report supplied by Lipper. The Board considered the Trust’s unified fee structure, under which each New Fund would pay for the supervisory and administrative services it requires for one set fee, and in return, PIMCO would provide or procure supervisory and administrative services and bear the costs of various third party services required by the New Fund, including audit, custodial, portfolio accounting, legal, transfer agency and printing costs. The Board considered that many other funds pay for those services separately, and thus it is difficult to directly compare the New Funds’ unified supervisory and administrative fees with the fees paid by other funds for administrative services alone. The Board considered that the unified supervisory and administrative fee leads to fund fees that are fixed, rather than variable. The Board concluded that each New Fund’s proposed supervisory and administrative fees were reasonable in relation to the value of the services to be provided, including the services provided to different classes of shareholders, and that the expenses assumed contractually by PIMCO under the Supervision and Administration Agreement represent, in effect, a cap on overall fund expenses, which is beneficial to each New Fund and its shareholders.
The Board also noted that PIMCO had contractually agreed to reduce total annual fund operating expenses for each class of each New Fund by waiving a portion of its supervisory and administrative fee, or reimbursing the New Fund, to the extent that any organizational expenses and the pro rata share of the Trust’s Trustees’ fees attributable to a class of the New Fund exceeds 0.49 basis points in
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Approval of the Investment Advisory Contract and Second Amended and Restated Supervision and Administration Agreement (Cont.)
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any year. Furthermore, the Board noted that PIMCO had contractually agreed to reduce the advisory fee for each of PIMCO RAE Fundamental International Fund, PIMCO RAE Fundamental US Fund and PIMCO RAE Fundamental US Small Fund by 10 basis points through October 31, 2016 and to reduce the advisory fee for each of PIMCO RAE Fundamental Emerging Markets Fund, PIMCO RAE Fundamental Global Fund and PIMCO RAE Fundamental Global ex-US Fund by 20 basis points through October 31, 2016. The Board also considered Research Affiliates’ corresponding sub-advisory fee waiver.
The Board also noted that the PIMCO RAE Fundamental Global Fund and PIMCO RAE Fundamental Global ex-US Fund each operate as fund of funds (the “Funds of Funds”). Furthermore, the Board noted that the Funds of Funds would have a “fund of funds” waiver, under which PIMCO will waive the advisory and supervisory and administrative fees it receives from the Funds of Funds, in an amount equal to the Underlying PIMCO Funds’ advisory and supervisory and administrative fees, to avoid duplication of fees. The Board also considered that the agreements with Research Affiliates and Parametric also included certain waivers, to avoid duplication of fees, in connection with the Funds of Funds.
Based on the information presented by PIMCO, Research Affiliates, Parametric and Lipper, members of the Board then determined, in the exercise of their business judgment, that the level of the advisory fees and supervisory and administrative fees to be charged by PIMCO, the level of the sub-advisory fees to be paid by PIMCO to Research Affiliates and the level of the portfolio implementation fees to be paid by PIMCO to Parametric, as well as the estimated total expenses of each New Fund, are reasonable and approval of the Agreements would likely benefit each New Fund and its shareholders.
5. ADVISER COSTS, LEVEL OF PROFITS AND ECONOMIES OF SCALE
As the New Funds are newly organized, information regarding PIMCO’s costs in providing services to the New Funds and the profitability of PIMCO’s relationship with the New Funds was not available.
The Board further noted that, although the unified fee structure does not have breakpoints, it implicitly reflects economies of scale by fixing the absolute level of each New Fund’s expenses at competitive levels even if the New Fund’s operating costs later rise when assets remain flat or decrease. The Board considered that the unified fee is a transparent means of informing the New Funds’ shareholders of the fees associated with the New Funds, and that the New Funds bears certain expenses that are not covered by the advisory fee or the unified supervision and administration fee. The Board further considered that, in contrast, breakpoints are a proxy for charging higher fees on lower asset levels and that when a fund’s assets decline, breakpoints may reverse, which causes expense ratios to increase. The Board also
considered that, unlike the New Funds’ proposed unified fee structure, funds with “pass through” administrative fee structures may experience increased expense ratios when fixed dollar fees are charged against declining fund assets. The Board also considered that the unified fee protects shareholders from a rise in operating costs that may result from, including, among other things, PIMCO’s investments in various business enhancements and infrastructure, including those described above. The Board noted that PIMCO’s investments in these areas are extensive.
Ultimately, the Board concluded that each New Fund’s proposed cost structure was reasonable.
6. ANCILLARY BENEFITS
The Board considered other benefits received by PIMCO and its affiliates as a result of PIMCO’s relationship with the Trust, including possible ancillary benefits to PIMCO’s institutional investment management business due to the reputation and market penetration of the Trust. The Board also considered that affiliates of PIMCO will provide distribution and shareholder services to the New Funds and their shareholders, for which they may be compensated under the unified fee, or through distribution fees paid pursuant to the New Funds’ Rule 12b-1 plans. The Board also noted the nature of the services to be provided by affiliates of PIMCO pursuant to the New Funds 12b-1 plan. The Board considered the nature and quality of services provided to shareholders by other intermediaries that sell and/or service shares of the Trust. The Board reviewed PIMCO’s soft dollar policies and procedures, noting that while PIMCO has the authority to receive the benefit of research provided by broker-dealers executing portfolio transactions on behalf of the New Funds, it has adopted a policy not to enter into contractual soft dollar arrangements.
7. CONCLUSIONS
Based on its review, including its consideration of each of the factors referred to above, the Board concluded that the nature, extent and quality of the services to be rendered to the New Funds by PIMCO, Research Affiliates and Parametric supported the approval of the Agreements. The Board concluded that the Agreements were fair and reasonable to the New Funds and their shareholders, that the New Funds’ shareholders would likely receive reasonable value in return for the advisory fees and other amounts paid to PIMCO by each New Fund, the sub-advisory fees paid to Research Affiliates by PIMCO and the portfolio implementation fees paid to Parametric by PIMCO, and that the approval of the Agreements was in the best interests of the New Funds and their shareholders.
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General Information
Investment Adviser and Administrator
Pacific Investment Management Company LLC
650 Newport Center Drive
Newport Beach, CA 92660
Distributor
PIMCO Investments LLC
1633 Broadway
New York, NY 10019
Custodian
State Street Bank and Trust Company
801 Pennsylvania Avenue
Kansas City, MO 64105
Transfer Agent
Boston Financial Data Services
Institutional Class, Class P, Administrative Class, Class D
330 W. 9th Street, 5th Floor
Kansas City, MO 64105
Boston Financial Data Services
Class A, Class C, Class R
P.O. Box 55060
Boston, MA 02205-5060
Legal Counsel
Dechert LLP
1900 K Street, N.W.
Washington, D.C. 20006
Independent Registered Public Accounting Firm
PricewaterhouseCoopers LLP
1100 Walnut Street, Suite 1300
Kansas City, MO 64106
This report is submitted for the general information of the shareholders of the PIMCO Equity Series.
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PES3003AR_063015
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Item 2. | Code of Ethics. |
As of the end of the period covered by this report, the Registrant has adopted a code of ethics (the “Code”) that applies to the Registrant’s principal executive officer and principal financial officer. The Registrant did not grant any waivers, including implicit waivers, from any provisions of the Code to the principal executive officer or principal financial officer during the period covered by this report.
A copy of the Code is included as an exhibit to this report.
Item 3. | Audit Committee Financial Expert. |
(a) | The Board of Trustees has determined that Peter B. McCarthy, who serves on the Board’s audit committee, qualifies as an “audit committee financial expert” as such term is defined in the instructions to this Item 3. The Board has also determined that Mr. McCarthy is “independent” as such term is interpreted under this Item 3. |
Item 4. | Principal Accountant Fees and Services. |
(a) | Fiscal Year Ended | Audit Fees | ||||||||
June 30, 2015 | $ | 483,201 | ||||||||
June 30, 2014 | $ | 161,099 | ||||||||
(b) | Fiscal Year Ended | Audit-Related Fees | ||||||||
June 30, 2015 | $ | 410,500 | ||||||||
June 30, 2014 | $ | 4,500 | ||||||||
(c) | Fiscal Year Ended | Tax Fees | ||||||||
June 30, 2015 | $ | 24,650 | ||||||||
June 30, 2014 | $ | 14,700 | ||||||||
(d) | Fiscal Year Ended | All Other Fees(1) | ||||||||
June 30, 2015 | $ | — | ||||||||
June 30, 2014 | $ | — |
“Audit Fees” represents fees billed for each of the last two fiscal years for professional services rendered for the audit of the PIMCO Equity Series (the “Trust” or “Registrant”) annual financial statements for those fiscal years or services that are normally provided by the accountant in connection with statutory or regulatory filings or engagements for those fiscal years. |
“Audit-Related Fees” represents fees billed for each of the last two fiscal years for assurance and related services reasonably related to the performance of the audit of the Trust’s annual financial statements for those years. |
“Tax Fees” represents fees billed for each of the last two fiscal years for professional services related to tax compliance, tax advice and tax planning, including review of federal and state income tax returns, review of excise tax distribution requirements and preparation of excise tax returns. |
“All Other Fees” represents fees, if any, billed for other products and services rendered by the principal accountant to the Trust for the last two fiscal years. |
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(1)There were no “All Other Fees” for the last two fiscal years.
(e) | Pre-approval policies and procedures |
(1) The Registrant’s Audit Oversight Committee has adopted pre-approval policies and procedures (the “Procedures”) to govern the Audit Oversight Committee’s pre-approval of (i) all audit services and permissible non-audit services to be provided to the Registrant by its independent accountant, and (ii) all permissible non-audit services to be provided by such independent accountant to the Registrant’s investment adviser and to any entity controlling, controlled by, or under common control with the investment adviser that provides ongoing services to the Registrant (collectively, the “Service Affiliates”) if the services provided directly relate to the Registrant’s operations and financial reporting. In accordance with the Procedures, the Audit Oversight Committee is responsible for the engagement of the independent accountant to certify the Registrant’s financial statements for each fiscal year. With respect to the pre-approval of non-audit services provided to the Registrant and its Service Affiliates, the Procedures provide that the Audit Oversight Committee may annually pre-approve a list of types or categories of non-audit services that may be provided to the Registrant or its Service Affiliates, or the Audit Oversight Committee may pre-approve such services on a project-by-project basis as they arise. Unless a type of service has received general pre-approval, it will require specific pre-approval by the Audit Oversight Committee if it is to be provided by the independent accountant. The Procedures also permit the Audit Oversight Committee to delegate authority to one or more of its members to pre-approve any proposed non-audit services that have not been previously pre-approved by the Audit Oversight Committee, subject to the ratification by the full Audit Oversight Committee no later than its next scheduled meeting. |
(2) With respect to the services described in paragraphs (b) through (d) of this Item 4, no amount was approved by the Audit Oversight Committee pursuant to paragraph (c)(7)(i)(C) of Rule 2-01 of Regulation S-X. |
f) | Not applicable. |
g)
Aggregate Non-Audit Fees Billed to Entity | ||||||||||||
Entity | June 30, 2015 | June 30, 2014 | ||||||||||
PIMCO Equity Series Trust | $ | 435,150 | $ | 19,200 | ||||||||
Pacific Investment Management Company LLC (“PIMCO”) | 9,815,893 | 6,674,889 | ||||||||||
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Total | $ | 10,251,043 | $ | 6,694,089 | ||||||||
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h) The Registrant’s Audit Oversight Committee has considered whether the provision of non-audit services that were rendered to the Registrant’s investment adviser, and any entity controlling, controlled by, or under common control with the investment adviser that provides ongoing services to the Registrant which were not pre-approved (not requiring pre-approval) is compatible with maintaining the principal accountant’s independence.
Item 5. | Audit Committee of Listed Registrants. |
The Registrant has a separately-designated standing audit committee established in accordance with Section 3(a)(58)(A) of the Securities Exchange Act of 1934, as amended. The audit committee is comprised of:
E. Philip Cannon;
Peter B. McCarthy
Item 6. | Schedule of Investments. |
The Schedule of Investments is included as part of the reports to shareholders under Item 1.
Item 7. | Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies. |
Not applicable.
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Item 8. | Portfolio Managers of Closed-End Management Investment Companies. |
Not applicable.
Item 9. | Purchases of Equity Securities by Closed-End Management Investment Company and Affiliated Purchasers. |
Not applicable.
Item 10. | Submission of Matters to a Vote of Security Holders. |
Not applicable.
Item 11. | Controls and Procedures. |
(a) | The principal executive officer and principal financial & accounting officer have concluded that the Registrant’s disclosure controls and procedures (as defined in Rule 30a-3(c) under the 1940 Act) provide reasonable assurances that material information relating to the Registrant is made known to them by the appropriate persons, based on their evaluation of these controls and procedures as of a date within 90 days of the filing of this report. |
(b) | There were no changes in the Registrant’s internal control over financial reporting (as defined in Rule 30a-3(d) under the 1940 Act) that occurred during the second fiscal quarter of the period covered by this report that have materially affected, or are reasonably likely to materially affect, the Registrant’s internal control over financial reporting. |
Item 12. | Exhibits. |
(a)(1) | Exhibit 99.CODE— Code of Ethics pursuant to Section 406 of the Sarbanes-Oxley Act of 2002. |
(a)(2) | Exhibit 99.CERT—Certifications pursuant to Section 302 of the Sarbanes-Oxley Act of 2002. |
(b) | Exhibit 99.906CERT—Certifications pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. |
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Signatures
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
PIMCO Equity Series | ||||
By: | /s/ PETER G. STRELOW
| |||
Peter G. Strelow | ||||
President (Principal Executive Officer) | ||||
Date: August 27, 2015 | ||||
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated. | ||||
By: | /s/ PETER G. STRELOW
| |||
Peter G. Strelow | ||||
President (Principal Executive Officer) | ||||
Date: August 27, 2015 | ||||
By: | /s/ TRENT W. WALKER
| |||
Trent W. Walker | ||||
Treasurer (Principal Financial & Accounting Officer) | ||||
Date: August 27, 2015 |