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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:
Brendan 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: December 31, 2017
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 are copies of the reports transmitted to shareholders pursuant to Rule 30e-1 under the Investment Company Act of 1940, as amended (the “Act”) (17 CFR 270.30e-1).
• | PIMCO Equity Series Funds |
• | PIMCO Equity Series RAE Fundamental Funds |
• | PIMCO Equity Series RealPath® Blend Funds |
• | PIMCO RAFI Dynamic Multi-Factor U.S. Equity ETF |
• | PIMCO RAFI Dynamic Multi-Factor Emerging Markets Equity ETF |
• | PIMCO RAFI Dynamic Multi-Factor International Equity ETF |
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PIMCO Equity Series®
Semiannual
Report
December 31, 2017
PIMCO Dividend and Income Fund
PIMCO EqS® Long/Short Fund
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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 Semiannual Report for the PIMCO Equity Series covering the six-month reporting period ended December 31, 2017. The following pages contain 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 the six-month reporting period include:
∎ | During the reporting period, geopolitical concerns remained an investor focus but the global economy provided a solid fundamental backdrop with robust consumer confidence in both the eurozone and the U.S. This environment gave room for developed market central banks to adopt a more “dovish taper”. The European Central Bank (“ECB”), for example, announced a tapering in its monthly asset purchases, but President Mario Draghi emphasized the ECB’s overall accommodative stance. In September, the Federal Reserve (“Fed”) provided details on its plan to unwind its balance sheet and kept rates on hold through its November meeting, but raised the Federal Funds Rate in December by 0.25% to a range of 1.25% to 1.50% (marking the third rate increase during 2017, following rate increases in March and in June). The Bank of England (“BOE”) raised its policy rate and suggested reduced stimulus on the horizon and the Bank of Canada (“BOC”) raised interest rates twice after a seven-year gap. Furthermore, President Xi Jinping was extended a second five-year term following the 19th National Party Congress in China, while Japan’s Prime Minister Shinzo Abe won a decisive victory in snap elections. |
∎ | As a result, many developed market yield curves flattened over the reporting period as front-end rates moved higher alongside less accommodative monetary policy. In the U.S., solid growth momentum and the Fed’s three rate hikes throughout the year pushed the two-year yield to its highest level in nearly a decade. In turn, this drove the spread between two-year and 10-year rates to its narrowest level since November 2007. Front-end yields also moved higher in the U.K. and Canada as the BOE and BOC both raised policy rates for the first time in years. |
∎ | Global stock markets reached new highs as increasingly solid economic data, rising corporate earnings, and non-restrictive central bank policy underpinned robust risk sentiment. U.S. equities, as represented by the S&P 500 Index, returned 11.42% over the reporting period. Developed market equities outside the U.S. and Canada, as represented by the MSCI EAFE Net Dividend Index (USD Hedged) and the MSCI EAFE Net Dividend Index (USD Unhedged), returned 7.92% and 9.86%, respectively, over the reporting period. Japanese equities, as represented by the Nikkei 225 Index (in JPY), returned 14.63% over the reporting period and European equities, as represented by the MSCI Europe Index (in EUR), returned 3.34% over the reporting period. |
∎ | EM equities, as represented by the MSCI Emerging Markets Index (Net Dividends in USD), returned 15.92% over the reporting period as fundamentals remained healthy in select economies. Emerging markets benefited from broad-based and synchronized global growth, robust liquidity conditions, rising commodity prices, and a weak U.S. dollar. |
∎ | U.S. Treasuries, as represented by the Bloomberg Barclays U.S. Treasury Index, returned 0.43% for the reporting period. Yields rose across the majority of the yield curve through 10-year maturities, but declined across 20- and 30-year maturities. The benchmark 10-year U.S. Treasury note yielded 2.40% at the end of the reporting period, up from 2.31% on June 30, 2017. The Bloomberg Barclays U.S. Aggregate Index, a widely used index of U.S. investment-grade bonds, returned 1.24% for the reporting period. |
If you have any questions regarding the funds, please contact your account manager or financial adviser, or call one of our shareholder associates at 888.87.PIMCO. We also invite you to visit our website at www.pimco.com to learn more about our views and global thought leadership.
2 | PIMCO EQUITY SERIES |
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Thank you for the assets you have placed with us. We deeply value your trust, and we work diligently to meet your broad investment needs.
![]() | Sincerely,
Brent R. Harris Chairman of the Board,
February 21, 2018 |
Past performance is no guarantee of future results. Unless otherwise noted, index returns reflect the reinvestment of income distributions and capital gains, if any, but do not reflect fees, brokerage commissions or other expenses of investing. It is not possible to invest directly in an unmanaged index.
SEMIANNUAL REPORT | DECEMBER 31, 2017 | 3 |
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Important Information About the Funds
PIMCO Equity Series (the “Trust”) is an open-end management investment company that includes PIMCO Dividend and Income Fund and PIMCO EqS® Long/Short Fund (each, a “Fund” and collectively, 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 securities, 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 equity securities.
The Funds may be subject to various risks as described in each Fund’s prospectus and in the Principal Risks in the Notes to Financial Statements.
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.
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. Returns do not reflect the deduction of taxes that a shareholder would pay on (i) Fund distributions or (ii) the redemption of Fund shares. The Cumulative Returns chart and Average Annual Total Return table reflect any sales load that would have applied at the time of purchase or any Contingent Deferred Sales Charge (“CDSC”) that would have applied if a full redemption occurred on the last business day of the period shown in the Cumulative Returns chart. Class A shares are subject to an initial sales charge. A 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 12 months after purchase. Class C shares are subject to a 1% CDSC, which may apply in the first year. The Cumulative Returns chart reflects only Institutional Class performance. Performance may vary by share class based on each class’s expense ratios. Performance shown is net of fees and expenses. The minimum initial investment amount for Institutional Class and Class P shares is $1,000,000. The minimum initial investment amount for Class A, Class C and Class D shares is $1,000. Each Fund measures its performance against at least one 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. There is no assurance that any Fund, including any Fund that has experienced high or unusual performance for one or more periods, will experience similar levels of performance in the future. High performance is defined as a significant increase in either 1) a Fund’s total return in excess of that of the Fund’s benchmark between reporting periods or 2) a Fund’s total return in excess of the Fund’s historical returns between reporting periods. Unusual performance is defined as a significant change in a Fund’s performance as compared to one or more previous reporting periods.
The following table discloses the inception dates of each Fund and its respective share classes along with each Fund’s diversification status as of period end:
Fund Name | Fund Inception | Institutional Class | Class P | Class D | Class A | Class C | Diversification Status | |||||||||||||||||||||||
PIMCO Dividend and Income Fund | 12/14/11 | 12/14/11 | 12/14/11 | 12/14/11 | 12/14/11 | 12/14/11 | Diversified | |||||||||||||||||||||||
PIMCO EqS® Long/Short Fund | 04/20/12 | 04/20/12 | 04/30/12 | 04/30/12 | 04/30/12 | 04/30/12 | Non-diversified |
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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.
The Trustees are responsible generally for overseeing the management of the Trust. The Trustees authorize the Trust to enter into service agreements with the Adviser, the Distributor, the Administrator and other service providers in order to provide, and in some cases authorize service providers to procure through other parties, necessary or desirable services on behalf of the Trust and the Funds. Shareholders are not parties to or third-party beneficiaries of such service agreements. Neither a Fund’s prospectus nor a Fund’s summary prospectus, the Trust’s Statement of Additional Information (“SAI”), any contracts filed as exhibits to the Trust’s registration statement, nor any other communications, disclosure documents or regulatory filings (including this report) from or on behalf of the Trust or a Fund creates a contract between or among any shareholder of a Fund, on the one hand, and the Trust, a Fund, a service provider to the Trust or a Fund, and/or the Trustees or officers of the Trust, on the other hand. The Trustees (or the Trust and its officers, service providers or other delegates acting under authority of the Trustees) may amend the most recent prospectus or use a new prospectus, summary prospectus or SAI with respect to a Fund or the Trust, and/or amend, file and/or issue any other communications, disclosure documents or regulatory filings, and may amend or enter into any contracts to which the Trust or a Fund is a party, and interpret the investment objective(s), policies, restrictions and contractual provisions applicable to any Fund, without shareholder
input or approval, except in circumstances in which shareholder approval is specifically required by law (such as changes to fundamental investment policies) or where a shareholder approval requirement is specifically disclosed in the Trust’s then-current prospectus or SAI.
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 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.
The Trust files a complete schedule of each Fund’s 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 is also 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.
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PIMCO Dividend and Income Fund
Cumulative Returns Through December 31, 2017
$1,000,000 invested at the end of the month when the Fund’s Institutional Class commenced operations.
Investment Objective and Strategy Overview
PIMCO Dividend and Income 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 80% of its assets in a diversified portfolio of income-producing investments, and will typically invest between 60-80% of its assets in equity and equity-related securities (such portion of the Fund’s portfolio, the “Equity Sleeve”) providing exposure to a portfolio of stocks (the “RAE Income Global Portfolio”) through investment in the securities that comprise the RAE Income Global Portfolio. The stocks for the Equity Sleeve are selected by the Fund’s sub-adviser, Research Affiliates, LLC, from a broad universe of global equities. Fund strategies may change from time to time. Please refer to the Fund’s current prospectus for more information regarding the Fund’s strategy.
Average Annual Total Return for the period ended December 31, 2017 | ||||||||||||||||||
6 Months* | 1 Year | 5 Year | Fund Inception (12/14/11) | |||||||||||||||
![]() | PIMCO Dividend and Income Fund Institutional Class | 9.28% | 16.20% | 7.01% | 8.50% | |||||||||||||
PIMCO Dividend and Income Fund Class P | 9.22% | 16.08% | 6.93% | 8.43% | ||||||||||||||
PIMCO Dividend and Income Fund Class D | 9.10% | 15.81% | 6.65% | 8.14% | ||||||||||||||
PIMCO Dividend and Income Fund Class A | 9.11% | 15.73% | 6.64% | 8.13% | ||||||||||||||
PIMCO Dividend and Income Fund Class A (adjusted) | 3.15% | 9.39% | 5.45% | 7.12% | ||||||||||||||
PIMCO Dividend and Income Fund Class C | 8.65% | 14.84% | 5.83% | 7.31% | ||||||||||||||
PIMCO Dividend and Income Fund Class C (adjusted) | 7.65% | 13.84% | 5.83% | 7.31% | ||||||||||||||
![]() | MSCI World Index± | 10.61% | 22.40% | 11.64% | 12.92% | |||||||||||||
![]() | 75% MSCI World Index/25% Bloomberg Barclays Global Aggregate USD Unhedged±± | 8.64% | 18.49% | 8.93% | 10.07% |
All Fund returns are net of fees and expenses.
* Cumulative return.
± 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.
±± The benchmark is a blend of 75% MSCI World Index/25% Bloomberg Barclays Global Aggregate USD Unhedged. 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. Bloomberg 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. Differences in the Fund’s performance versus the index and related attribution information with respect to particular categories of securities or individual positions may be attributable, in part, to differences in the pricing methodologies used by the Fund and the index. 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. For performance data current to the most recent month-end, visit www.pimco.com or via (888) 87-PIMCO.
The Fund’s total annual operating expense ratio in effect as of period end, were 0.81% for the Institutional Class shares, 0.91% for the Class P shares, 1.16% for the Class D shares, 1.16% for the Class A shares, and 1.91% for the Class C shares. Details regarding any changes to the Fund’s operating expenses, subsequent to period end, can be found in the Fund’s current prospectus, as supplemented.
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Institutional Class - PQIIX | Class P - PQIPX | Class D - PQIDX | Class A - PQIZX | Class C - PQICX |
Geographic Breakdown as of 12/31/20171§
United States | 50.5% | |||||||
Japan | 10.1% | |||||||
United Kingdom | 8.4% | |||||||
France | 5.6% | |||||||
Germany | 4.6% | |||||||
Australia | 3.3% | |||||||
Spain | 2.3% | |||||||
Netherlands | 1.9% | |||||||
Switzerland | 1.8% | |||||||
Canada | 1.5% | |||||||
Cayman Islands | 1.2% | |||||||
Italy | 1.2% | |||||||
Other | 5.5% |
Sector Breakdown as of 12/31/20171§
Financials | 24.4% | |||||||
Industrials | 8.5% | |||||||
Energy | 6.9% | |||||||
U.S. Treasury Obligations | 6.7% | |||||||
Consumer Discretionary | 6.5% | |||||||
Health Care | 6.2% | |||||||
Asset-Backed Securities | 5.7% | |||||||
Utilities | 5.5% | |||||||
Information Technology | 5.1% | |||||||
Consumer Staples | 4.5% | |||||||
U.S. Government Agencies | 3.9% | |||||||
Materials | 3.9% | |||||||
Telecommunication Services | 3.8% | |||||||
Non-Agency Mortgage-Backed Securities | 3.2% | |||||||
Loan Participations and Assignments | 1.1% | |||||||
Other | 2.0% |
1 % of Investments, at value.
§ Geographic and Sector Breakdown and % of Investments exclude securities sold short, financial derivative instruments and short-term instruments, if any.
Fund Insights
The following affected performance during the reporting period:
» | Security selection in the industrial sector contributed to relative returns, as the Fund’s holdings outperformed the benchmark index. |
» | Overweight exposure to, and security selection in, the energy sector contributed to relative returns, as the sector and the Fund’s holdings outperformed the benchmark index. |
» | Overweight exposure to, and security selection in, the materials sector contributed to relative returns, as the sector and the Fund’s holdings outperformed the benchmark index. |
» | Holdings of non-agency mortgage-backed securities contributed to absolute returns, as these securities generated positive total returns. |
» | Underweight exposure to, and security selection in, the information technology sector detracted from relative returns, as the sector and the Fund’s holdings underperformed the benchmark index. |
» | Security selection in the financial sector detracted from relative returns, as the Fund’s holdings underperformed the benchmark index. |
» | Exposure to U.S. duration detracted from absolute returns, as yields generally rose. |
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Cumulative Returns Through December 31, 2017
$1,000,000 invested at the end of the month when the Fund’s Institutional Class commenced operations.
Investment Objective and Strategy Overview
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 securities (and securities convertible into, or that PIMCO expects to be exchanged for, common or preferred securities), 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. Fund strategies may change from time to time. Please refer to the Fund’s current prospectus for more information regarding the Fund’s strategy.
Average Annual Total Return for the period ended December 31, 2017* | ||||||||||||||||||||||
6 Months** | 1 Year | 5 Year | 10 Year | Fund Inception (01/01/03) | ||||||||||||||||||
![]() | PIMCO EqS® Long/Short Fund Institutional Class | 1.34% | 9.95% | 8.41% | 5.72% | 10.96% | ||||||||||||||||
PIMCO EqS® Long/Short Fund Class P | 1.27% | 9.83% | 8.31% | 5.67% | 10.92% | |||||||||||||||||
PIMCO EqS® Long/Short Fund Class D | 1.20% | 9.55% | 8.02% | 5.50% | 10.80% | |||||||||||||||||
PIMCO EqS® Long/Short Fund Class A | 1.20% | 9.66% | 8.04% | 5.51% | 10.81% | |||||||||||||||||
PIMCO EqS® Long/Short Fund Class A (adjusted) | (4.36)% | 3.61% | 6.83% | 4.91% | 10.39% | |||||||||||||||||
PIMCO EqS® Long/Short Fund Class C | 0.81% | 8.74% | 7.23% | 5.05% | 10.49% | |||||||||||||||||
PIMCO EqS® Long/Short Fund Class C (adjusted) | (0.15)% | 7.74% | 7.23% | 5.05% | 10.49% | |||||||||||||||||
![]() | 3 Month USD LIBOR Index± | 0.66% | 1.20% | 0.54% | 0.82% | 1.65% |
All Fund returns are net of fees and expenses.
** Cumulative return.
± 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 directly in an unmanaged index.
* 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. 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.
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. Differences in the Fund’s performance versus the index and related attribution information with respect to particular categories of securities or individual positions may be attributable, in part, to differences in the pricing methodologies used by the Fund and the index. 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. For performance data current to the most recent month-end, visit www.pimco.com or via (888) 87-PIMCO.
The Fund’s total annual operating expense ratio in effect as of period end, were 1.87% for the Institutional Class shares, 1.97% for the Class P shares, 2.22% for the Class D shares, 2.22% for the Class A shares, and 2.97% for the Class C shares. Details regarding any changes to the Fund’s operating expenses, subsequent to period end, can be found in the Fund’s current prospectus, as supplemented.
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Institutional Class - PMHIX | Class P - PMHBX | Class D - PMHDX | Class A - PMHAX | Class C - PMHCX |
Top 10 Holdings as of 12/31/20171§
Alphabet, Inc. ‘C’ | 4.9% | |||||||
American Express Co. | 4.4% | |||||||
Berkshire Hathaway, Inc. ‘B’ | 4.3% | |||||||
Johnson & Johnson | 4.1% | |||||||
SPDR S&P Oil & Gas Exploration & Production ETF | 3.5% | |||||||
Union Pacific Corp. | 3.1% | |||||||
Norfolk Southern Corp. | 3.1% | |||||||
SPDR S&P Regional Banking ETF | 3.0% | |||||||
Facebook, Inc. ‘A’ | 2.9% | |||||||
Discover Financial Services | 2.9% |
Sector Breakdown as of 12/31/20172§
Financials | 16.1% | |||||||
Health Care | 13.4% | |||||||
Energy | 11.6% | |||||||
Industrials | 10.1% | |||||||
Information Technology | 9.3% | |||||||
Consumer Discretionary | 7.5% | |||||||
Materials | 2.7% | |||||||
Other | (1.5% | ) |
1 % of Investments, at value.
2 % of net exposure (Investments, at value less Securities Sold Short). Financial derivative instruments and short-term instruments are not taken into consideration.
§ Top 10 Holdings and Sector Breakdown and % of Investments exclude securities sold short, financial derivative instruments and short-term instruments, if any.
Fund Insights
The following affected performance during the reporting period:
» | The Fund’s long position in Berkshire Hathaway Inc. contributed to absolute returns, as the price of that security rose. |
» | The Fund’s long position in Union Pacific Corporation contributed to absolute returns, as the price of that security rose. |
» | The Fund’s long position in Alphabet Inc. contributed to absolute returns, as the price of that security rose. |
» | The Fund’s short equity positions detracted from absolute returns, as the prices of these securities generally rose. |
» | The Fund’s long position in Newell Brands Inc. detracted from absolute returns, as the price of that security fell. |
» | The Fund’s long position in Signature Bank detracted from absolute returns, as the price of that security fell. |
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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 July 1, 2017 to December 31, 2017 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 this information, 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 row 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 (07/01/17) | Ending Account Value (12/31/17) | Expenses Paid During Period* | Beginning Account Value (07/01/17) | Ending Account Value (12/31/17) | Expenses Paid During Period* | Net Annualized Expense Ratio** | ||||||||||||||||||||||||||||||||||
PIMCO Dividend and Income Fund | ||||||||||||||||||||||||||||||||||||||||
Institutional Class | $ | 1,000.00 | $ | 1,092.80 | $ | 4.41 | $ | 1,000.00 | $ | 1,020.86 | $ | 4.26 | 0.84 | % | ||||||||||||||||||||||||||
Class P | 1,000.00 | 1,092.20 | 4.93 | 1,000.00 | 1,020.36 | 4.76 | 0.94 | |||||||||||||||||||||||||||||||||
Class D | 1,000.00 | 1,091.00 | 6.24 | 1,000.00 | 1,019.10 | 6.02 | 1.19 | |||||||||||||||||||||||||||||||||
Class A | 1,000.00 | 1,091.10 | 6.24 | 1,000.00 | 1,019.10 | 6.02 | 1.19 | |||||||||||||||||||||||||||||||||
Class C | 1,000.00 | 1,086.50 | 10.15 | 1,000.00 | 1,015.34 | 9.80 | 1.94 | |||||||||||||||||||||||||||||||||
PIMCO EqS® Long/Short Fund | ||||||||||||||||||||||||||||||||||||||||
Institutional Class | $ | 1,000.00 | $ | 1,013.40 | $ | 9.69 | $ | 1,000.00 | $ | 1,015.44 | $ | 9.70 | 1.92 | % | ||||||||||||||||||||||||||
Class P | 1,000.00 | 1,012.70 | 10.19 | 1,000.00 | 1,014.94 | 10.20 | 2.02 | |||||||||||||||||||||||||||||||||
Class D | 1,000.00 | 1,012.00 | 11.45 | 1,000.00 | 1,013.69 | 11.46 | 2.27 | |||||||||||||||||||||||||||||||||
Class A | 1,000.00 | 1,012.00 | 11.45 | 1,000.00 | 1,013.69 | 11.46 | 2.27 | |||||||||||||||||||||||||||||||||
Class C | 1,000.00 | 1,008.10 | 15.20 | 1,000.00 | 1,009.93 | 15.22 | 3.02 |
* 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 183/365 (to reflect the one-half year period).
** Net Annualized Expense Ratio is reflective of any applicable contractual fee waivers and/or expense reimbursements or voluntary fee waivers. Details regarding fee waivers, if any, can be found in Note 9, Fees and Expenses, in the Notes to Financial Statements.
10 | PIMCO EQUITY SERIES |
Table of Contents
(THIS PAGE INTENTIONALLY LEFT BLANK)
SEMIANNUAL REPORT | DECEMBER 31, 2017 | 11 |
Table of Contents
Investment Operations | Less Distributions(b) | |||||||||||||||||||||||||||||||||||
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 Net Investment Income | From Net Realized Capital Gains | Tax Basis Return of Capital | Total | ||||||||||||||||||||||||||||
PIMCO Dividend and Income Fund | ||||||||||||||||||||||||||||||||||||
Institutional Class | ||||||||||||||||||||||||||||||||||||
07/01/2017 - 12/31/2017+ | $ | 11.09 | $ | 0.15 | $ | 0.88 | $ | 1.03 | $ | (0.24 | ) | $ | 0.00 | $ | 0.00 | $ | (0.24 | ) | ||||||||||||||||||
06/30/2017 | 9.94 | 0.30 | 1.08 | 1.38 | (0.23 | ) | 0.00 | 0.00 | (0.23 | ) | ||||||||||||||||||||||||||
06/30/2016 | 12.29 | 0.43 | (1.58 | ) | (1.15 | ) | (0.44 | ) | (0.76 | ) | 0.00 | (1.20 | ) | |||||||||||||||||||||||
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 | ) | |||||||||||||||||||||||||
Class P | ||||||||||||||||||||||||||||||||||||
07/01/2017 - 12/31/2017+ | 11.11 | 0.15 | 0.87 | 1.02 | (0.23 | ) | 0.00 | 0.00 | (0.23 | ) | ||||||||||||||||||||||||||
06/30/2017 | 9.96 | 0.30 | 1.07 | 1.37 | (0.22 | ) | 0.00 | 0.00 | (0.22 | ) | ||||||||||||||||||||||||||
06/30/2016 | 12.30 | 0.39 | (1.54 | ) | (1.15 | ) | (0.43 | ) | (0.76 | ) | 0.00 | (1.19 | ) | |||||||||||||||||||||||
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 | ) | |||||||||||||||||||||||||
Class D | ||||||||||||||||||||||||||||||||||||
07/01/2017 - 12/31/2017+ | 11.09 | 0.13 | 0.88 | 1.01 | (0.22 | ) | 0.00 | 0.00 | (0.22 | ) | ||||||||||||||||||||||||||
06/30/2017 | 9.94 | 0.27 | 1.07 | 1.34 | (0.19 | ) | 0.00 | 0.00 | (0.19 | ) | ||||||||||||||||||||||||||
06/30/2016 | 12.29 | 0.36 | (1.54 | ) | (1.18 | ) | (0.41 | ) | (0.76 | ) | 0.00 | (1.17 | ) | |||||||||||||||||||||||
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 | ) | |||||||||||||||||||||||||
Class A | ||||||||||||||||||||||||||||||||||||
07/01/2017 - 12/31/2017+ | 11.08 | 0.13 | 0.88 | 1.01 | (0.22 | ) | 0.00 | 0.00 | (0.22 | ) | ||||||||||||||||||||||||||
06/30/2017 | 9.94 | 0.27 | 1.07 | 1.34 | (0.20 | ) | 0.00 | 0.00 | (0.20 | ) | ||||||||||||||||||||||||||
06/30/2016 | 12.29 | 0.39 | (1.57 | ) | (1.18 | ) | (0.41 | ) | (0.76 | ) | 0.00 | (1.17 | ) | |||||||||||||||||||||||
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 | ) | |||||||||||||||||||||||||
Class C | ||||||||||||||||||||||||||||||||||||
07/01/2017 - 12/31/2017+ | 11.06 | 0.09 | 0.86 | 0.95 | (0.17 | ) | 0.00 | 0.00 | (0.17 | ) | ||||||||||||||||||||||||||
06/30/2017 | 9.92 | 0.18 | 1.07 | 1.25 | (0.11 | ) | 0.00 | 0.00 | (0.11 | ) | ||||||||||||||||||||||||||
06/30/2016 | 12.27 | 0.31 | (1.57 | ) | (1.26 | ) | (0.33 | ) | (0.76 | ) | 0.00 | (1.09 | ) | |||||||||||||||||||||||
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 | ) | |||||||||||||||||||||||||
PIMCO EqS® Long/Short Fund | ||||||||||||||||||||||||||||||||||||
Institutional Class | ||||||||||||||||||||||||||||||||||||
07/01/2017 - 12/31/2017+ | $ | 12.26 | $ | (0.02 | ) | $ | 0.18 | $ | 0.16 | $ | 0.00 | $ | (0.64 | ) | $ | 0.00 | $ | (0.64 | ) | |||||||||||||||||
06/30/2017 | 11.69 | (0.04 | ) | 1.20 | 1.16 | (0.36 | ) | (0.23 | ) | 0.00 | (0.59 | ) | ||||||||||||||||||||||||
06/30/2016 | 12.07 | (0.17 | ) | (0.07 | ) | (0.24 | ) | 0.00 | (0.14 | ) | 0.00 | (0.14 | ) | |||||||||||||||||||||||
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 | ) | ||||||||||||||||||||||||||
Class P | ||||||||||||||||||||||||||||||||||||
07/01/2017 - 12/31/2017+ | 12.19 | (0.03 | ) | 0.18 | 0.15 | 0.00 | (0.64 | ) | 0.00 | (0.64 | ) | |||||||||||||||||||||||||
06/30/2017 | 11.63 | (0.05 | ) | 1.19 | 1.14 | (0.35 | ) | (0.23 | ) | 0.00 | (0.58 | ) | ||||||||||||||||||||||||
06/30/2016 | 12.02 | (0.18 | ) | (0.07 | ) | (0.25 | ) | 0.00 | (0.14 | ) | 0.00 | (0.14 | ) | |||||||||||||||||||||||
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 | ) | |||||||||||||||||||||||||
Class D | ||||||||||||||||||||||||||||||||||||
07/01/2017 - 12/31/2017+ | 12.07 | (0.04 | ) | 0.18 | 0.14 | 0.00 | (0.64 | ) | 0.00 | (0.64 | ) | |||||||||||||||||||||||||
06/30/2017 | 11.53 | (0.08 | ) | 1.18 | 1.10 | (0.33 | ) | (0.23 | ) | 0.00 | (0.56 | ) | ||||||||||||||||||||||||
06/30/2016 | 11.95 | (0.20 | ) | (0.08 | ) | (0.28 | ) | 0.00 | (0.14 | ) | 0.00 | (0.14 | ) | |||||||||||||||||||||||
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 | ) |
12 | PIMCO EQUITY SERIES | See Accompanying Notes |
Table of Contents
Ratios/Supplemental Data | ||||||||||||||||||||||||||||||||||
Ratios to Average Net Assets | ||||||||||||||||||||||||||||||||||
Net Asset Value End of Year or Period | Total Return | Net Assets End of Year or Period (000s) | Expenses | Expenses Excluding Waivers | Expenses Excluding Interest Expense | Expenses Excluding Interest Expense and Waivers | Net Investment Income (Loss) | Portfolio Turnover Rate | ||||||||||||||||||||||||||
$ | 11.88 | 9.28 | % | $ | 25,279 | 0.84 | %* | 0.85 | %* | 0.80 | %* | 0.81 | %* | 2.66 | %* | 40 | % | |||||||||||||||||
11.09 | 14.01 | 23,087 | 0.80 | 0.81 | 0.79 | 0.80 | 2.88 | 93 | ||||||||||||||||||||||||||
9.94 | (9.06 | ) | 31,840 | 0.83 | (c) | 1.00 | (c) | 0.83 | (c) | 1.00 | (c) | 4.03 | 114 | |||||||||||||||||||||
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 | ||||||||||||||||||||||||||
11.90 | 9.22 | 28,342 | 0.94 | * | 0.95 | * | 0.90 | * | 0.91 | * | 2.56 | * | 40 | |||||||||||||||||||||
11.11 | 13.86 | 24,731 | 0.90 | 0.91 | 0.89 | 0.90 | 2.79 | 93 | ||||||||||||||||||||||||||
9.96 | (9.05 | ) | 34,120 | 0.93 | (c) | 1.10 | (c) | 0.93 | (c) | 1.10 | (c) | 3.53 | 114 | |||||||||||||||||||||
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 | ||||||||||||||||||||||||||
11.88 | 9.10 | 8,132 | 1.19 | * | 1.20 | * | 1.15 | * | 1.16 | * | 2.33 | * | 40 | |||||||||||||||||||||
11.09 | 13.59 | 8,117 | 1.15 | 1.16 | 1.14 | 1.15 | 2.51 | 93 | ||||||||||||||||||||||||||
9.94 | (9.38 | ) | 10,623 | 1.18 | (c) | 1.35 | (c) | 1.18 | (c) | 1.35 | (c) | 3.37 | 114 | |||||||||||||||||||||
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 | ||||||||||||||||||||||||||
11.87 | 9.11 | 143,218 | 1.19 | * | 1.20 | * | 1.15 | * | 1.16 | * | 2.32 | * | 40 | |||||||||||||||||||||
11.08 | 13.54 | 144,912 | 1.15 | 1.16 | 1.14 | 1.15 | 2.53 | 93 | ||||||||||||||||||||||||||
9.94 | (9.38 | ) | 167,857 | 1.18 | (c) | 1.35 | (c) | 1.18 | (c) | 1.35 | (c) | 3.67 | 114 | |||||||||||||||||||||
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 | ||||||||||||||||||||||||||
11.84 | 8.65 | 133,967 | 1.94 | * | 1.95 | * | 1.90 | * | 1.91 | * | 1.58 | * | 40 | |||||||||||||||||||||
11.06 | 12.70 | 140,710 | 1.90 | 1.91 | 1.89 | 1.90 | 1.75 | 93 | ||||||||||||||||||||||||||
9.92 | (10.07 | ) | 195,393 | 1.93 | (c) | 2.10 | (c) | 1.93 | (c) | 2.10 | (c) | 2.91 | 114 | |||||||||||||||||||||
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 | ||||||||||||||||||||||||||
$ | 11.78 | 1.34 | % | $ | 197,381 | 1.92 | %* | 1.93 | %* | 1.50 | %* | 1.51 | %* | (0.32 | )%* | 132 | % | |||||||||||||||||
12.26 | 10.38 | 188,022 | 1.86 | 1.87 | 1.49 | 1.50 | (0.32 | ) | 251 | |||||||||||||||||||||||||
11.69 | (2.02 | ) | 243,341 | 2.44 | 2.45 | 1.50 | 1.51 | (1.46 | ) | 672 | ||||||||||||||||||||||||
12.07 | 1.74 | 299,808 | 1.91 | 1.92 | 1.49 | 1.50 | 0.20 | 450 | (d) | |||||||||||||||||||||||||
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 | ||||||||||||||||||||||||||
11.70 | 1.27 | 118,022 | 2.02 | * | 2.03 | * | 1.60 | * | 1.61 | * | (0.42 | )* | 132 | |||||||||||||||||||||
12.19 | 10.28 | 138,946 | 1.96 | 1.97 | 1.59 | 1.60 | (0.44 | ) | 251 | |||||||||||||||||||||||||
11.63 | (2.11 | ) | 249,973 | 2.54 | 2.55 | 1.60 | 1.61 | (1.51 | ) | 672 | ||||||||||||||||||||||||
12.02 | 1.66 | 207,511 | 2.01 | 2.02 | 1.59 | 1.60 | 0.16 | 450 | (d) | |||||||||||||||||||||||||
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 | |||||||||||||||||||||||||
11.57 | 1.20 | 49,915 | 2.27 | * | 2.28 | * | 1.85 | * | 1.86 | * | (0.66 | )* | 132 | |||||||||||||||||||||
12.07 | 9.93 | 46,418 | 2.21 | 2.22 | 1.84 | 1.85 | (0.70 | ) | 251 | |||||||||||||||||||||||||
11.53 | (2.37 | ) | 62,130 | 2.79 | 2.80 | 1.85 | 1.86 | (1.74 | ) | 672 | ||||||||||||||||||||||||
11.95 | 1.41 | 44,227 | 2.26 | 2.27 | 1.84 | 1.85 | (0.19 | ) | 450 | (d) | ||||||||||||||||||||||||
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 |
SEMIANNUAL REPORT | DECEMBER 31, 2017 | 13 |
Table of Contents
Financial Highlights (Cont.)
Investment Operations | Less Distributions(b) | |||||||||||||||||||||||||||||||||||
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 Net Investment Income | From Net Realized Capital Gains | Tax Basis Return of Capital | Total | ||||||||||||||||||||||||||||
PIMCO EqS® Long/Short Fund (Cont.) | ||||||||||||||||||||||||||||||||||||
Class A | ||||||||||||||||||||||||||||||||||||
07/01/2017 - 12/31/2017+ | $ | 12.05 | $ | (0.04 | ) | $ | 0.18 | $ | 0.14 | $ | 0.00 | $ | (0.64 | ) | $ | 0.00 | $ | (0.64 | ) | |||||||||||||||||
06/30/2017 | 11.52 | (0.08 | ) | 1.18 | 1.10 | (0.34 | ) | (0.23 | ) | 0.00 | (0.57 | ) | ||||||||||||||||||||||||
06/30/2016 | 11.94 | (0.21 | ) | (0.07 | ) | (0.28 | ) | 0.00 | (0.14 | ) | 0.00 | (0.14 | ) | |||||||||||||||||||||||
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 | ) | |||||||||||||||||||||||||
Class C | ||||||||||||||||||||||||||||||||||||
07/01/2017 - 12/31/2017+ | 11.65 | (0.08 | ) | 0.17 | 0.09 | 0.00 | (0.64 | ) | 0.00 | (0.64 | ) | |||||||||||||||||||||||||
06/30/2017 | 11.20 | (0.16 | ) | 1.13 | 0.97 | (0.29 | ) | (0.23 | ) | 0.00 | (0.52 | ) | ||||||||||||||||||||||||
06/30/2016 | 11.69 | (0.29 | ) | (0.06 | ) | (0.35 | ) | 0.00 | (0.14 | ) | 0.00 | (0.14 | ) | |||||||||||||||||||||||
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 | ) |
+ | Unaudited |
* | Annualized |
^ | A zero balance may reflect actual amounts rounding to less than $0.01 or 0.01%. |
(a) | Per share amounts based on average number of shares outstanding during the year or period. |
(b) | The tax characterization of distributions is determined in accordance with Federal income tax regulations. The actual tax characterization of distributions paid is determined at the end of the fiscal year. See Note 2, Distributions to Shareholders, in the Notes to Financial Statements for more information. |
(c) | Effective June 16, 2016, the Fund’s Investment advisory fee was decreased by 0.20% to an annual rate of 0.49%. |
(d) | The amount previously reported as 763% in the Fund’s annual report has been restated, as above. |
14 | PIMCO EQUITY SERIES | See Accompanying Notes |
Table of Contents
Ratios/Supplemental Data | ||||||||||||||||||||||||||||||||||
Ratios to Average Net Assets | ||||||||||||||||||||||||||||||||||
Net Asset Value End of Year or Period | Total Return | Net Assets End of Year or Period (000s) | Expenses | Expenses Excluding Waivers | Expenses Excluding Interest Expense | Expenses Excluding Interest Expense and Waivers | Net Investment Income (Loss) | Portfolio Turnover Rate | ||||||||||||||||||||||||||
$ | 11.55 | 1.20 | % | $ | 83,496 | 2.27 | %* | 2.28 | %* | 1.85 | %* | 1.86 | %* | (0.67 | )%* | 132 | % | |||||||||||||||||
12.05 | 9.97 | 88,636 | 2.21 | 2.22 | 1.84 | 1.85 | (0.67 | ) | 251 | |||||||||||||||||||||||||
11.52 | (2.38 | ) | 147,582 | 2.79 | 2.80 | 1.85 | 1.86 | (1.79 | ) | 672 | ||||||||||||||||||||||||
11.94 | 1.41 | 172,843 | 2.26 | 2.27 | 1.84 | 1.85 | (0.18 | ) | 450 | (d) | ||||||||||||||||||||||||
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 | |||||||||||||||||||||||||
11.10 | 0.81 | 80,290 | 3.02 | * | 3.03 | * | 2.60 | * | 2.61 | * | (1.42 | )* | 132 | |||||||||||||||||||||
11.65 | 9.07 | 91,557 | 2.96 | 2.97 | 2.59 | 2.60 | (1.41 | ) | 251 | |||||||||||||||||||||||||
11.20 | (3.03 | ) | 145,358 | 3.54 | 3.55 | 2.60 | 2.61 | (2.52 | ) | 672 | ||||||||||||||||||||||||
11.69 | 0.66 | 140,719 | 3.01 | 3.02 | 2.59 | 2.60 | (0.95 | ) | 450 | (d) | ||||||||||||||||||||||||
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 |
SEMIANNUAL REPORT | DECEMBER 31, 2017 | 15 |
Table of Contents
Statements of Assets and Liabilities
(Amounts in thousands†, except per share amounts) | PIMCO Dividend and Income Fund | PIMCO EqS® Long/Short Fund | ||||||
Assets: | ||||||||
Investments, at value | ||||||||
Investments in securities* | $ | 356,613 | $ | 446,850 | ||||
Investments in Affiliates | 5,299 | 85,566 | ||||||
Financial Derivative Instruments | ||||||||
Exchange-traded or centrally cleared | 70 | 94 | ||||||
Over the counter | 209 | 269 | ||||||
Cash | 1,048 | 1 | ||||||
Deposits with counterparty | 1,068 | 109,453 | ||||||
Foreign currency, at value | 501 | 716 | ||||||
Receivable for investments sold | 58,485 | 23,600 | ||||||
Receivable for Fund shares sold | 992 | 663 | ||||||
Interest and/or dividends receivable | 1,569 | 426 | ||||||
Dividends receivable from Affiliates | 4 | 145 | ||||||
Reimbursement receivable from PIMCO | 4 | 6 | ||||||
Other assets | 1 | 1 | ||||||
Total Assets | 425,863 | 667,790 | ||||||
Liabilities: | ||||||||
Borrowings & Other Financing Transactions | ||||||||
Payable for reverse repurchase agreements | $ | 9,126 | $ | 0 | ||||
Payable for sale-buyback transactions | 5,380 | 0 | ||||||
Payable for short sales | 3,001 | 106,320 | ||||||
Financial Derivative Instruments | ||||||||
Exchange-traded or centrally cleared | 32 | 175 | ||||||
Over the counter | 343 | 256 | ||||||
Payable for investments purchased | 68,022 | 30,168 | ||||||
Payable for investments in Affiliates purchased | 4 | 145 | ||||||
Deposits from counterparty | 40 | 260 | ||||||
Payable for Fund shares redeemed | 561 | 533 | ||||||
Accrued investment advisory fees | 145 | 482 | ||||||
Accrued supervisory and administrative fees | 116 | 238 | ||||||
Accrued distribution fees | 89 | 65 | ||||||
Accrued servicing fees | 61 | 36 | ||||||
Other liabilities | 5 | 8 | ||||||
Total Liabilities | 86,925 | 138,686 | ||||||
Net Assets | $ | 338,938 | $ | 529,104 | ||||
Net Assets Consist of: | ||||||||
Paid in capital | $ | 411,624 | $ | 499,574 | ||||
Undistributed (overdistributed) net investment income | (563 | ) | (482 | ) | ||||
Accumulated undistributed net realized gain (loss) | (110,405 | ) | 2,532 | |||||
Net unrealized appreciation (depreciation) | 38,282 | 27,480 | ||||||
Net Assets | $ | 338,938 | $ | 529,104 | ||||
Cost of investments in securities | $ | 318,071 | $ | 414,789 | ||||
Cost of investments in Affiliates | $ | 5,297 | $ | 85,557 | ||||
Cost of foreign currency held | $ | 502 | $ | 712 | ||||
Proceeds received on short sales | $ | 2,989 | $ | 102,332 | ||||
Cost or premiums of financial derivative instruments, net | $ | (200 | ) | $ | (3,368 | ) | ||
* Includes repurchase agreements of: | $ | 186 | $ | 524 |
† | A zero balance may reflect actual amounts rounding to less than one thousand. |
16 | PIMCO EQUITY SERIES | See Accompanying Notes |
Table of Contents
December 31, 2017 (Unaudited)
PIMCO Dividend and Income Fund | PIMCO EqS® Long/Short Fund | |||||||
Net Assets: | ||||||||
Institutional Class | $ | 25,279 | $ | 197,381 | ||||
Class P | 28,342 | 118,022 | ||||||
Class D | 8,132 | 49,915 | ||||||
Class A | 143,218 | 83,496 | ||||||
Class C | 133,967 | 80,290 | ||||||
Shares Issued and Outstanding: | ||||||||
Institutional Class | 2,128 | 16,759 | ||||||
Class P | 2,381 | 10,087 | ||||||
Class D | 685 | 4,315 | ||||||
Class A | 12,065 | 7,233 | ||||||
Class C | 11,311 | 7,234 | ||||||
Net Asset Value Per Share Outstanding: | ||||||||
Institutional Class | $ | 11.88 | $ | 11.78 | ||||
Class P | 11.90 | 11.70 | ||||||
Class D | 11.88 | 11.57 | ||||||
Class A | 11.87 | 11.55 | ||||||
Class C | 11.84 | 11.10 |
SEMIANNUAL REPORT | DECEMBER 31, 2017 | 17 |
Table of Contents
(Unaudited)
Six Months Ended December 31, 2017 | ||||||||
(Amounts in thousands†) | PIMCO Dividend and Income Fund | PIMCO EqS® Long/Short Fund | ||||||
Investment Income: | ||||||||
Interest | $ | 2,040 | $ | 593 | ||||
Dividends, net of foreign taxes* | 3,921 | 2,709 | ||||||
Dividends from Investments in Affiliates | 8 | 1,027 | ||||||
Total Income | 5,969 | 4,329 | ||||||
Expenses: | ||||||||
Investment advisory fees | 833 | 2,821 | ||||||
Supervisory and administrative fees | 669 | 1,396 | ||||||
Distribution and/or servicing fees - Class D | 10 | 61 | ||||||
Distribution fees - Class C | 513 | 323 | ||||||
Servicing fees - Class A | 181 | 107 | ||||||
Servicing fees - Class C | 171 | 108 | ||||||
Dividends on short sales | 0 | 1,049 | ||||||
Trustee fees | 10 | 16 | ||||||
Interest expense | 64 | 93 | ||||||
Miscellaneous expense | 13 | 20 | ||||||
Total Expenses | 2,464 | 5,994 | ||||||
Waiver and/or Reimbursement by PIMCO | (10 | ) | (16 | ) | ||||
Net Expenses | 2,454 | 5,978 | ||||||
Net Investment Income (Loss) | 3,515 | (1,649 | ) | |||||
Net Realized Gain (Loss): | ||||||||
Investments in securities | 10,097 | 15,183 | ||||||
Investments in Affiliates | 0 | (34 | ) | |||||
Exchange-traded or centrally cleared financial derivative instruments | 85 | (3,351 | ) | |||||
Over the counter financial derivative instruments | (248 | ) | (1,525 | ) | ||||
Short sales | (1 | ) | (5,336 | ) | ||||
Foreign currency | 9 | 79 | ||||||
Net Realized Gain (Loss) | 9,942 | 5,016 | ||||||
Net Change in Unrealized Appreciation (Depreciation): | ||||||||
Investments in securities | 15,800 | 5,639 | ||||||
Investments in Affiliates | 2 | 5 | ||||||
Exchange-traded or centrally cleared financial derivative instruments | (184 | ) | (282 | ) | ||||
Over the counter financial derivative instruments | 0 | 1,126 | ||||||
Short sales | (12 | ) | (3,320 | ) | ||||
Foreign currency assets and liabilities | 0 | (133 | ) | |||||
Net Change in Unrealized Appreciation (Depreciation) | 15,606 | 3,035 | ||||||
Net Increase (Decrease) in Net Assets Resulting from Operations | $ | 29,063 | $ | 6,402 | ||||
* Foreign tax withholdings - Dividends | $ | 145 | $ | 12 |
† | A zero balance may reflect actual amounts rounding to less than one thousand. |
18 | PIMCO EQUITY SERIES | See Accompanying Notes |
Table of Contents
Statements of Changes in Net Assets
PIMCO Dividend and Income Fund | PIMCO EqS® Long/Short Fund | |||||||||||||||
(Amounts in thousands†) | Six Months Ended December 31, 2017 (Unaudited) | Year Ended June 30, 2017 | Six Months Ended December 31, 2017 (Unaudited) | Year Ended June 30, 2017 | ||||||||||||
Increase (Decrease) in Net Assets from: | ||||||||||||||||
Operations: | ||||||||||||||||
Net investment income (loss) | $ | 3,515 | $ | 8,411 | $ | (1,649 | ) | $ | (4,055 | ) | ||||||
Net realized gain (loss) | 9,942 | 10,969 | 5,016 | 77,048 | ||||||||||||
Net change in unrealized appreciation (depreciation) | 15,606 | 27,793 | 3,035 | (15,261 | ) | |||||||||||
Net Increase (Decrease) in Net Assets Resulting from Operations | 29,063 | 47,173 | 6,402 | 57,732 | ||||||||||||
Distributions to Shareholders: | ||||||||||||||||
From net investment income | ||||||||||||||||
Institutional Class | (486 | ) | (525 | ) | 0 | (5,009 | ) | |||||||||
Class P | (542 | ) | (468 | ) | 0 | (4,762 | ) | |||||||||
Class D | (148 | ) | (156 | ) | 0 | (1,056 | ) | |||||||||
Class A | (2,629 | ) | (2,620 | ) | 0 | (3,239 | ) | |||||||||
Class C | (1,996 | ) | (1,732 | ) | 0 | (2,934 | ) | |||||||||
From net realized capital gains | ||||||||||||||||
Institutional Class | 0 | 0 | (9,995 | ) | (3,352 | ) | ||||||||||
Class P | 0 | 0 | (6,284 | ) | (3,145 | ) | ||||||||||
Class D | 0 | 0 | (2,640 | ) | (852 | ) | ||||||||||
Class A | 0 | 0 | (4,412 | ) | (2,245 | ) | ||||||||||
Class C | 0 | 0 | (4,484 | ) | (2,370 | ) | ||||||||||
Total Distributions(a) | (5,801 | ) | (5,501 | ) | (27,815 | ) | (28,964 | ) | ||||||||
Portfolio Share Transactions: | ||||||||||||||||
Net increase (decrease) resulting from Portfolio share transactions** | (25,881 | ) | (139,948 | ) | (3,062 | ) | (323,573 | ) | ||||||||
Total Increase (Decrease) in Net Assets | (2,619 | ) | (98,276 | ) | (24,475 | ) | (294,805 | ) | ||||||||
Net Assets: | ||||||||||||||||
Beginning of period | 341,557 | 439,833 | 553,579 | 848,384 | ||||||||||||
End of period* | $ | 338,938 | $ | 341,557 | $ | 529,104 | $ | 553,579 | ||||||||
* Including undistributed (overdistributed) net investment income of: | $ | (563 | ) | $ | 1,723 | $ | (482 | ) | $ | 1,167 |
† | A zero balance may reflect actual amounts rounding to less than one thousand. |
** | See Note 13, Shares of Beneficial Interest, in the Notes to Financial Statements. |
(a) | The tax characterization of distributions is determined in accordance with Federal income tax regulations. The actual tax characterization of distributions paid is determined at the end of the fiscal year. See Note 2, Distributions to Shareholders, in the Notes to Financial Statements for more information. |
SEMIANNUAL REPORT | DECEMBER 31, 2017 | 19 |
Table of Contents
Six Months Ended December 31, 2017 (Unaudited) | ||||
(Amounts in thousands) | PIMCO EqS® Long/Short Fund | |||
Cash Flows Provided by (Used for) Operating Activities: | ||||
Net increase (decrease) in net assets resulting from operations | $ | 6,402 | ||
Adjustments to Reconcile Net Increase (Decrease) in Net Assets from Operations to Net Cash Provided by (Used for) Operating Activities: | ||||
Purchases of long-term securities | (494,225 | ) | ||
Proceeds from sales of long-term securities | 470,657 | |||
(Purchases) Proceeds from sales of short-term portfolio investments, net | 62,359 | |||
(Increase) decrease in deposits with counterparty | (9,667 | ) | ||
(Increase) decrease in receivable for investments sold | (7,301 | ) | ||
(Increase) decrease in interest and/or dividends receivable | 324 | |||
(Increase) decrease in dividends receivable from Affiliates | 47 | |||
Proceeds from (Payments on) exchange-traded or centrally cleared financial derivative instruments | (3,621 | ) | ||
Proceeds from (Payments on) over the counter financial derivative instruments | (1,525 | ) | ||
Increase (Decrease) in reimbursement receivable from PIMCO | (3 | ) | ||
Increase (decrease) in payable for investments purchased | 17,035 | |||
Increase (decrease) in deposits from counterparty | 260 | |||
Increase (decrease) in accrued investment advisory fees | (22 | ) | ||
Increase (decrease) in accrued supervisory and administrative fees | (11 | ) | ||
Increase (decrease) in accrued distribution fees | (5 | ) | ||
Increase (decrease) in accrued servicing fees | (3 | ) | ||
Proceeds from (Payments on) short sales transactions, net | (94 | ) | ||
Proceeds from (Payments on) foreign currency transactions | (54 | ) | ||
Increase (decrease) in other liabilities | (44 | ) | ||
Net Realized (Gain) Loss | ||||
Investments in securities | (15,183 | ) | ||
Investments in Affiliates | 34 | |||
Exchange-traded or centrally cleared financial derivative instruments | 3,351 | |||
Over the counter financial derivative instruments | 1,525 | |||
Short sales | 5,336 | |||
Foreign currency | (79 | ) | ||
Net Change in Unrealized (Appreciation) Depreciation | ||||
Investments in securities | (5,639 | ) | ||
Investments in Affiliates | (5 | ) | ||
Exchange-traded or centrally cleared financial derivative instruments | 282 | |||
Over the counter financial derivative instruments | (1,126 | ) | ||
Short sales | 3,320 | |||
Foreign currency assets and liabilities | 133 | |||
Net amortization (accretion) on investments | (237 | ) | ||
Net Cash Provided by (Used for) Operating Activities | 32,221 | |||
Cash Flows Received from (Used for) Financing Activities: | ||||
Proceeds from shares sold | 81,055 | |||
Payments on shares redeemed | (112,748 | ) | ||
Cash distributions paid* | (47 | ) | ||
Net Cash Received from (Used for) Financing Activities | (31,740 | ) | ||
Net Increase (Decrease) in Cash and Foreign Currency | 481 | |||
Cash and Foreign Currency: | ||||
Beginning of period | 236 | |||
End of period | $ | 717 | ||
* Reinvestment of distributions | $ | 27,768 | ||
Supplemental Disclosure of Cash Flow Information: | ||||
Interest expense paid during the period | $ | 159 |
A Statement of Cash Flows is presented when the Fund has a significant amount of borrowing during the period, based on the average total borrowing outstanding in relation to total assets or when substantially all of the Fund’s investments are not classified as Level 1 or 2 in the fair value hierarchy.
20 | PIMCO EQUITY SERIES | See Accompanying Notes |
Table of Contents
Schedule of Investments PIMCO Dividend and Income Fund
December 31, 2017 (Unaudited)
PRINCIPAL AMOUNT (000S) | MARKET VALUE (000S) | |||||||||||
INVESTMENTS IN SECURITIES 105.2% | ||||||||||||
ASSET-BACKED SECURITIES 6.1% | ||||||||||||
CAYMAN ISLANDS 1.3% | ||||||||||||
NewMark Capital Funding CLO Ltd. |
| |||||||||||
2.607% (US0003M + 1.120%) due 06/02/2025 ~ | $ | 836 | $ | 838 | ||||||||
OZLM Ltd. |
| |||||||||||
2.653% (US0003M + 1.300%) due 04/17/2026 ~ | 1,000 | 1,006 | ||||||||||
Palmer Square CLO Ltd. |
| |||||||||||
2.573% (US0003M + 1.220%) due 10/17/2027 ~ | 700 | 703 | ||||||||||
TICP CLO Ltd. |
| |||||||||||
2.551% (US0003M + 1.180%) due 04/26/2026 ~ | 1,100 | 1,102 | ||||||||||
TruPS Financials Note Securitization Ltd. |
| |||||||||||
2.861% (US0003M + 1.570%) due 09/20/2039 ~ | 600 | 591 | ||||||||||
|
| |||||||||||
Total Cayman Islands | 4,240 | |||||||||||
|
| |||||||||||
NETHERLANDS 0.2% | ||||||||||||
Pallas CDO BV |
| |||||||||||
0.000% due 07/16/2082 • | EUR | 594 | 709 | |||||||||
|
| |||||||||||
Total Netherlands | 709 | |||||||||||
|
| |||||||||||
UNITED STATES 4.6% | ||||||||||||
Conseco Finance Corp. |
| |||||||||||
6.280% due 09/01/2030 | $ | 483 | 508 | |||||||||
Credit Suisse First Boston Mortgage Securities Corp. |
| |||||||||||
2.172% (US0001M + 0.620%) due 01/25/2032 ~ | 1,453 | 1,392 | ||||||||||
EMC Mortgage Loan Trust |
| |||||||||||
2.852% (LIBOR01M + 1.300%) due 02/25/2041 ~ | 39 | 38 | ||||||||||
HSI Asset Securitization Corp. Trust |
| |||||||||||
1.722% (US0001M + 0.170%) due 12/25/2036 ~ | 5,120 | 2,319 | ||||||||||
Morgan Stanley Home Equity Loan Trust |
| |||||||||||
1.652% (US0001M + 0.100%) due 12/25/2036 ~ | 1,955 | 1,205 | ||||||||||
1.972% (US0001M + 0.420%) due 12/25/2035 ~ | 3,600 | 3,569 | ||||||||||
Navient Student Loan Trust |
| |||||||||||
2.602% (US0001M + 1.050%) due 12/27/2066 ~ | 732 | 741 | ||||||||||
Progress Residential Trust |
| |||||||||||
2.960% (LIBOR01M + 1.500%) due 09/17/2033 ~ | 991 | 1,003 | ||||||||||
Residential Asset Securities Corp. Trust |
| |||||||||||
2.437% (US0001M + 0.885%) due 01/25/2034 ~ | 1,743 | 1,740 | ||||||||||
Structured Asset Investment Loan Trust |
| |||||||||||
1.702% (US0001M + 0.150%) due 09/25/2036 ~ | 3,326 | 3,183 | ||||||||||
|
| |||||||||||
Total United States | 15,698 | |||||||||||
|
| |||||||||||
Total Asset-Backed Securities (Cost $19,223) | 20,647 | |||||||||||
|
| |||||||||||
LOAN PARTICIPATIONS AND ASSIGNMENTS 1.1% | ||||||||||||
CANADA 0.0% | ||||||||||||
B.C. Unlimited Liability Co. |
| |||||||||||
3.819% (LIBOR03M + 2.250%) due 02/16/2024 ~ | 10 | 10 | ||||||||||
|
| |||||||||||
Total Canada | 10 | |||||||||||
|
| |||||||||||
IRELAND 0.0% | ||||||||||||
Avolon Holdings Ltd. |
| |||||||||||
3.751% (LIBOR03M + 2.250%) due 04/03/2022 ~ | 39 | 38 | ||||||||||
|
| |||||||||||
Total Ireland | 38 | |||||||||||
|
|
PRINCIPAL AMOUNT (000S) | MARKET VALUE (000S) | |||||||||||
UNITED STATES 1.1% | ||||||||||||
AmWINS Group, Inc. |
| |||||||||||
4.182% (LIBOR03M + 2.750%) due 01/25/2024 ~ | $ | 7 | $ | 7 | ||||||||
Beacon Roofing Supply, Inc. |
| |||||||||||
TBD% due 08/23/2024 | 10 | 10 | ||||||||||
BWAY Holding Co. |
| |||||||||||
4.599% (LIBOR03M + 3.250%) due 04/03/2024 ~ | 10 | 10 | ||||||||||
Caesars Resort Collection LLC |
| |||||||||||
4.336% (LIBOR03M + 2.750%) due 12/22/2024 ~ | 100 | 101 | ||||||||||
Centene Corp. |
| |||||||||||
TBD% due 09/13/2018 | 200 | 200 | ||||||||||
Core & Main LP |
| |||||||||||
4.455% (LIBOR03M + 3.000%) due 08/01/2024 ~ | 10 | 10 | ||||||||||
Diamond Resorts Corp. |
| |||||||||||
6.069% (LIBOR03M + 4.500%) due 08/11/2023 «~ | 99 | 100 | ||||||||||
Energy Future Intermediate Holding Co. LLC |
| |||||||||||
4.501% (LIBOR03M + 3.000%) due 06/30/2018 ~ | 2,228 | 2,236 | ||||||||||
Hilton Worldwide Finance LLC |
| |||||||||||
3.552% (LIBOR03M + 2.000%) due 10/25/2023 ~ | 290 | 292 | ||||||||||
iHeartCommunications, Inc. |
| |||||||||||
8.443% (LIBOR03M + 6.750%) due 01/30/2019 ~ | 300 | 226 | ||||||||||
Las Vegas Sands LLC |
| |||||||||||
3.569% (LIBOR03M + 2.000%) due 03/29/2024 ~ | 394 | 397 | ||||||||||
MH Sub LLC |
| |||||||||||
5.338% (LIBOR03M + 3.750%) due 09/13/2024 ~ | 20 | 20 | ||||||||||
Multi Color Corp. |
| |||||||||||
3.819% (LIBOR03M + 2.250%) due 10/31/2024 ~ | 2 | 2 | ||||||||||
Post Holdings, Inc. |
| |||||||||||
3.820% (LIBOR03M + 2.250%) due 05/24/2024 ~ | 10 | 10 | ||||||||||
Sprint Communications, Inc. |
| |||||||||||
4.125% (LIBOR03M + 2.500%) due 02/02/2024 ~ | 99 | 99 | ||||||||||
TEX Operations Co. LLC | ||||||||||||
3.834% (LIBOR03M + 2.500%) due 08/04/2023 ~ | 27 | 27 | ||||||||||
Valeant Pharmaceuticals International, Inc. | ||||||||||||
4.940% (LIBOR03M + 3.500%) due 04/01/2022 ~ | 5 | 5 | ||||||||||
West Corp. |
| |||||||||||
5.350% (LIBOR03M + 4.000%) due 10/10/2024 ~ | 22 | 22 | ||||||||||
|
| |||||||||||
Total United States | 3,774 | |||||||||||
|
| |||||||||||
Total Loan Participations and Assignments | 3,822 | |||||||||||
|
| |||||||||||
SHARES | ||||||||||||
COMMON STOCKS 73.1% | ||||||||||||
AUSTRALIA 3.5% | ||||||||||||
CONSUMER DISCRETIONARY 0.0% | ||||||||||||
Myer Holdings Ltd. | 147,257 | 76 | ||||||||||
Tabcorp Holdings Ltd. | 7,585 | 33 | ||||||||||
|
| |||||||||||
109 | ||||||||||||
|
| |||||||||||
CONSUMER STAPLES 0.6% | ||||||||||||
Coca-Cola Amatil Ltd. | 25,495 | 169 | ||||||||||
Metcash Ltd. | 122,191 | 296 | ||||||||||
Wesfarmers Ltd. | 11,465 | 397 | ||||||||||
Woolworths Ltd. | 53,107 | 1,128 | ||||||||||
|
| |||||||||||
1,990 | ||||||||||||
|
|
SHARES | MARKET VALUE (000S) | |||||||||||
ENERGY 0.2% | ||||||||||||
Woodside Petroleum Ltd. | 5,548 | $ | 143 | |||||||||
WorleyParsons Ltd. | 37,002 | 412 | ||||||||||
|
| |||||||||||
555 | ||||||||||||
|
| |||||||||||
FINANCIALS 1.4% | ||||||||||||
AMP Ltd. | 90,532 | 365 | ||||||||||
Australia & New Zealand Banking Group Ltd. | 78,699 | 1,756 | ||||||||||
Genworth Mortgage Insurance Australia Ltd. | 70,041 | 164 | ||||||||||
National Australia Bank Ltd. | 53,950 | 1,239 | ||||||||||
Suncorp Group Ltd. | 72,179 | 778 | ||||||||||
Westpac Banking Corp. | 16,615 | 404 | ||||||||||
|
| |||||||||||
4,706 | ||||||||||||
|
| |||||||||||
HEALTH CARE 0.1% | ||||||||||||
Primary Health Care Ltd. | 67,183 | 189 | ||||||||||
Sonic Healthcare Ltd. | 1,510 | 27 | ||||||||||
|
| |||||||||||
216 | ||||||||||||
|
| |||||||||||
INDUSTRIALS 0.1% | ||||||||||||
Downer EDI Ltd. | 56,497 | 304 | ||||||||||
|
| |||||||||||
MATERIALS 0.9% | ||||||||||||
BHP Billiton Ltd. | 124,046 | 2,849 | ||||||||||
Incitec Pivot Ltd. | 25,633 | 78 | ||||||||||
Mineral Resources Ltd. | 7,025 | 115 | ||||||||||
OZ Minerals Ltd. | 21,396 | 152 | ||||||||||
|
| |||||||||||
3,194 | ||||||||||||
|
| |||||||||||
TELECOMMUNICATION SERVICES 0.2% | ||||||||||||
Telstra Corp. Ltd. | 227,273 | 642 | ||||||||||
|
| |||||||||||
Total Australia | 11,716 | |||||||||||
|
| |||||||||||
AUSTRIA 0.4% | ||||||||||||
ENERGY 0.1% | ||||||||||||
OMV AG | 7,601 | 482 | ||||||||||
|
| |||||||||||
FINANCIALS 0.2% | ||||||||||||
Raiffeisen Bank International AG (c) | 20,604 | 746 | ||||||||||
Vienna Insurance Group AG Wiener Versicherung Gruppe | 927 | 29 | ||||||||||
|
| |||||||||||
775 | ||||||||||||
|
| |||||||||||
MATERIALS 0.1% | ||||||||||||
voestalpine AG | 3,136 | 187 | ||||||||||
|
| |||||||||||
Total Austria | 1,444 | |||||||||||
|
| |||||||||||
BELGIUM 0.1% | ||||||||||||
TELECOMMUNICATION SERVICES 0.1% | ||||||||||||
Proximus S.A. | 7,998 | 262 | ||||||||||
|
| |||||||||||
Total Belgium | 262 | |||||||||||
|
| |||||||||||
BRAZIL 0.0% | ||||||||||||
ENERGY 0.0% | ||||||||||||
Dommo Energia S.A. «(c)(i) | 347,360 | 12 | ||||||||||
Dommo Energia S.A. SP - ADR « | 6,334 | 0 | ||||||||||
|
| |||||||||||
12 | ||||||||||||
|
|
See Accompanying Notes | SEMIANNUAL REPORT | DECEMBER 31, 2017 | 21 |
Table of Contents
Schedule of Investments PIMCO Dividend and Income Fund (Cont.)
SHARES | MARKET VALUE (000S) | |||||||||||
UTILITIES 0.0% | ||||||||||||
Eneva S.A. (c)(i) | 239 | $ | 1 | |||||||||
|
| |||||||||||
Total Brazil | 13 | |||||||||||
|
| |||||||||||
CANADA 1.4% | ||||||||||||
CONSUMER DISCRETIONARY 0.0% | ||||||||||||
Hudson’s Bay Co. | 2,993 | 27 | ||||||||||
Shaw Communications, Inc. ‘B’ | 1,959 | 45 | ||||||||||
|
| |||||||||||
72 | ||||||||||||
|
| |||||||||||
ENERGY 0.1% | ||||||||||||
Baytex Energy Corp. (c) | 12,646 | 38 | ||||||||||
Bonavista Energy Corp. | 14,173 | 25 | ||||||||||
Husky Energy, Inc. (c) | 22,148 | 313 | ||||||||||
Obsidian Energy Ltd. (c) | 20,886 | 26 | ||||||||||
Pengrowth Energy Corp. (c) | 44,043 | 35 | ||||||||||
|
| |||||||||||
437 | ||||||||||||
|
| |||||||||||
FINANCIALS 0.8% | ||||||||||||
Bank of Montreal | 6,754 | 540 | ||||||||||
Canadian Imperial Bank of Commerce | 11,023 | 1,075 | ||||||||||
Home Capital Group, Inc. | 7,440 | 102 | ||||||||||
IGM Financial, Inc. | 4,679 | 164 | ||||||||||
National Bank of Canada | 9,527 | 475 | ||||||||||
Power Corp. of Canada | 14,351 | 370 | ||||||||||
Power Financial Corp. | 4,575 | 126 | ||||||||||
|
| |||||||||||
2,852 | ||||||||||||
|
| |||||||||||
INDUSTRIALS 0.1% | ||||||||||||
WestJet Airlines Ltd. | 8,476 | 178 | ||||||||||
|
| |||||||||||
MATERIALS 0.2% | ||||||||||||
Potash Corp. of Saskatchewan, Inc. | 20,478 | 423 | ||||||||||
Teck Resources Ltd. ‘B’ | 9,440 | 247 | ||||||||||
|
| |||||||||||
670 | ||||||||||||
|
| |||||||||||
UTILITIES 0.2% | ||||||||||||
Atco Ltd. ‘I’ | 9,141 | 327 | ||||||||||
Capital Power Corp. | 2,246 | 44 | ||||||||||
TransAlta Corp. | 43,916 | 260 | ||||||||||
|
| |||||||||||
631 | ||||||||||||
|
| |||||||||||
Total Canada | 4,840 | |||||||||||
|
| |||||||||||
DENMARK 0.3% | ||||||||||||
INDUSTRIALS 0.2% | ||||||||||||
AP Moller - Maersk A/S ‘B’ | 375 | 653 | ||||||||||
|
| |||||||||||
TELECOMMUNICATION SERVICES 0.1% | ||||||||||||
TDC A/S | 66,039 | 406 | ||||||||||
|
| |||||||||||
Total Denmark | 1,059 | |||||||||||
|
| |||||||||||
FINLAND 0.2% | ||||||||||||
INDUSTRIALS 0.0% | ||||||||||||
Metso Oyj | 1,150 | 39 | ||||||||||
|
| |||||||||||
MATERIALS 0.1% | ||||||||||||
Stora Enso Oyj ‘R’ | 23,795 | 377 | ||||||||||
|
|
SHARES | MARKET VALUE (000S) | |||||||||||
UTILITIES 0.1% | ||||||||||||
Fortum Oyj | 13,740 | $ | 272 | |||||||||
|
| |||||||||||
Total Finland | 688 | |||||||||||
|
| |||||||||||
FRANCE 5.4% | ||||||||||||
CONSUMER DISCRETIONARY 0.7% | ||||||||||||
Cie Generale des Etablissements Michelin | 5,347 | 765 | ||||||||||
Lagardere S.C.A. | 21,741 | 696 | ||||||||||
Television Francaise | 7,571 | 112 | ||||||||||
Vivendi S.A. | 36,851 | 989 | ||||||||||
|
| |||||||||||
2,562 | ||||||||||||
|
| |||||||||||
CONSUMER STAPLES 0.5% | ||||||||||||
Carrefour S.A. | 42,726 | 921 | ||||||||||
Casino Guichard Perrachon S.A. | 10,749 | 652 | ||||||||||
|
| |||||||||||
1,573 | ||||||||||||
|
| |||||||||||
ENERGY 0.2% | ||||||||||||
Total S.A. | 14,993 | 828 | ||||||||||
|
| |||||||||||
FINANCIALS 1.8% | ||||||||||||
BNP Paribas S.A. | 35,628 | 2,650 | ||||||||||
CNP Assurances | 7,648 | 176 | ||||||||||
Eurazeo S.A. | 2,437 | 225 | ||||||||||
Natixis S.A. | 37,240 | 294 | ||||||||||
Societe Generale S.A. | 50,614 | 2,610 | ||||||||||
|
| |||||||||||
5,955 | ||||||||||||
|
| |||||||||||
HEALTH CARE 0.9% | ||||||||||||
Sanofi | 34,183 | 2,943 | ||||||||||
|
| |||||||||||
INDUSTRIALS 0.6% | ||||||||||||
Alstom S.A. | 4,227 | 175 | ||||||||||
Bouygues S.A. | 19,294 | 1,001 | ||||||||||
Cie de Saint-Gobain | 12,028 | 662 | ||||||||||
Rexel S.A. | 15,242 | 276 | ||||||||||
|
| |||||||||||
2,114 | ||||||||||||
|
| |||||||||||
TELECOMMUNICATION SERVICES 0.2% | ||||||||||||
Orange S.A. | 43,101 | 747 | ||||||||||
|
| |||||||||||
UTILITIES 0.5% | ||||||||||||
Electricite de France S.A. | 84,372 | 1,055 | ||||||||||
Engie S.A. | 37,637 | 647 | ||||||||||
|
| |||||||||||
1,702 | ||||||||||||
|
| |||||||||||
Total France | 18,424 | |||||||||||
|
| |||||||||||
GERMANY 4.0% | ||||||||||||
CONSUMER DISCRETIONARY 0.9% | ||||||||||||
Bayerische Motoren Werke AG | 13,647 | 1,415 | ||||||||||
Ceconomy AG | 28,714 | 433 | ||||||||||
Daimler AG | 13,865 | 1,173 | ||||||||||
|
| |||||||||||
3,021 | ||||||||||||
|
| |||||||||||
CONSUMER STAPLES 0.1% | ||||||||||||
METRO AG (c) | 18,605 | 370 | ||||||||||
Suedzucker AG | 5,954 | 129 | ||||||||||
|
| |||||||||||
499 | ||||||||||||
|
|
SHARES | MARKET VALUE (000S) | |||||||||||
FINANCIALS 0.4% | ||||||||||||
Muenchener Rueckversicherungs-Gesellschaft AG in Muenchen | 5,899 | $ | 1,274 | |||||||||
Talanx AG | 3,072 | 125 | ||||||||||
|
| |||||||||||
1,399 | ||||||||||||
|
| |||||||||||
HEALTH CARE 0.4% | ||||||||||||
Bayer AG | 10,059 | 1,250 | ||||||||||
|
| |||||||||||
INDUSTRIALS 0.7% | ||||||||||||
Bilfinger SE | 6,094 | 288 | ||||||||||
Deutsche Lufthansa AG | 52,330 | 1,922 | ||||||||||
Deutsche Post AG | 7,463 | 355 | ||||||||||
|
| |||||||||||
2,565 | ||||||||||||
|
| |||||||||||
MATERIALS 0.8% | ||||||||||||
BASF SE | 19,195 | 2,104 | ||||||||||
Evonik Industries AG | 5,379 | 202 | ||||||||||
K+S AG | 14,859 | 369 | ||||||||||
|
| |||||||||||
2,675 | ||||||||||||
|
| |||||||||||
UTILITIES 0.7% | ||||||||||||
E.ON SE | 38,426 | 417 | ||||||||||
RWE AG (c) | 92,192 | 1,876 | ||||||||||
|
| |||||||||||
2,293 | ||||||||||||
|
| |||||||||||
Total Germany | 13,702 | |||||||||||
|
| |||||||||||
HONG KONG 0.7% | ||||||||||||
CONSUMER DISCRETIONARY 0.2% | ||||||||||||
I-CABLE Communications Ltd. (c) | 30,198 | 1 | ||||||||||
Li & Fung Ltd. | 404,000 | 221 | ||||||||||
SJM Holdings Ltd. | 369,000 | 330 | ||||||||||
|
| |||||||||||
552 | ||||||||||||
|
| |||||||||||
INFORMATION TECHNOLOGY 0.1% | ||||||||||||
Kingboard Chemical Holdings Ltd. | 55,000 | 297 | ||||||||||
|
| |||||||||||
REAL ESTATE 0.4% | ||||||||||||
Kerry Properties Ltd. | 64,500 | 290 | ||||||||||
New World Development Co. Ltd. | 34,000 | 51 | ||||||||||
Shimao Property Holdings Ltd. | 146,500 | 318 | ||||||||||
Swire Pacific Ltd. ‘A’ | 47,500 | 439 | ||||||||||
Wheelock & Co. Ltd. | 43,000 | 306 | ||||||||||
|
| |||||||||||
1,404 | ||||||||||||
|
| |||||||||||
Total Hong Kong | 2,253 | |||||||||||
|
| |||||||||||
ISRAEL 0.2% | ||||||||||||
FINANCIALS 0.0% | ||||||||||||
Bank Leumi Le-Israel BM | 19,388 | 117 | ||||||||||
|
| |||||||||||
MATERIALS 0.1% | ||||||||||||
Israel Chemicals Ltd. | 54,542 | 221 | ||||||||||
|
| |||||||||||
TELECOMMUNICATION SERVICES 0.1% | ||||||||||||
Bezeq The Israeli Telecommunication Corp. Ltd. | 131,980 | 199 | ||||||||||
|
| |||||||||||
Total Israel | 537 | |||||||||||
|
| |||||||||||
22 | PIMCO EQUITY SERIES | See Accompanying Notes |
Table of Contents
December 31, 2017 (Unaudited)
SHARES | MARKET VALUE (000S) | |||||||||||
ITALY 1.3% | ||||||||||||
ENERGY 0.4% | ||||||||||||
Eni SpA | 80,270 | $ | 1,328 | |||||||||
|
| |||||||||||
FINANCIALS 0.3% | ||||||||||||
Assicurazioni Generali SpA | 11,733 | 214 | ||||||||||
Poste Italiane SpA | 104,018 | 783 | ||||||||||
|
| |||||||||||
997 | ||||||||||||
|
| |||||||||||
INDUSTRIALS 0.0% | ||||||||||||
Societa Iniziative Autostradali e Servizi SpA | 2,665 | 50 | ||||||||||
|
| |||||||||||
UTILITIES 0.6% | ||||||||||||
Enel SpA | 315,054 | 1,937 | ||||||||||
|
| |||||||||||
Total Italy | 4,312 | |||||||||||
|
| |||||||||||
JAPAN 10.8% | ||||||||||||
CONSUMER DISCRETIONARY 1.5% | ||||||||||||
Aisin Seiki Co. Ltd. | 2,700 | 151 | ||||||||||
Benesse Holdings, Inc. | 5,600 | 197 | ||||||||||
Bridgestone Corp. | 11,800 | 546 | ||||||||||
EDION Corp. | 3,600 | 42 | ||||||||||
Geo Holdings Corp. | 5,500 | 106 | ||||||||||
Honda Motor Co. Ltd. | 30,800 | 1,051 | ||||||||||
Isuzu Motors Ltd. | 15,400 | 257 | ||||||||||
JVC Kenwood Corp. | 19,000 | 65 | ||||||||||
Kohnan Shoji Co. Ltd. | 1,200 | 26 | ||||||||||
KYB Corp. | 1,000 | 58 | ||||||||||
Mitsubishi Motors Corp. | 9,600 | 69 | ||||||||||
Nikon Corp. | 8,100 | 163 | ||||||||||
Nissan Motor Co. Ltd. | 103,900 | 1,035 | ||||||||||
Showa Corp. | 2,100 | 26 | ||||||||||
Sumitomo Rubber Industries Ltd. | 16,500 | 306 | ||||||||||
Toyoda Gosei Co. Ltd. | 1,000 | 26 | ||||||||||
Toyota Motor Corp. | 9,200 | 586 | ||||||||||
Yokohama Rubber Co. Ltd. | 10,600 | 259 | ||||||||||
|
| |||||||||||
4,969 | ||||||||||||
|
| |||||||||||
CONSUMER STAPLES 0.3% | ||||||||||||
Japan Tobacco, Inc. | 12,200 | 393 | ||||||||||
Kirin Holdings Co. Ltd. | 28,800 | 726 | ||||||||||
|
| |||||||||||
1,119 | ||||||||||||
|
| |||||||||||
ENERGY 0.3% | ||||||||||||
Idemitsu Kosan Co. Ltd. | 1,600 | 64 | ||||||||||
Inpex Corp. | 35,000 | 436 | ||||||||||
JXTG Holdings, Inc. | 79,600 | 511 | ||||||||||
|
| |||||||||||
1,011 | ||||||||||||
|
| |||||||||||
FINANCIALS 2.9% | ||||||||||||
Chiba Bank Ltd. | 25,000 | 207 | ||||||||||
Daiwa Securities Group, Inc. | 54,000 | 338 | ||||||||||
Fukuoka Financial Group, Inc. | 36,000 | 201 | ||||||||||
Gunma Bank Ltd. | 27,600 | 166 | ||||||||||
Hachijuni Bank Ltd. | 4,100 | 23 | ||||||||||
Hokuhoku Financial Group, Inc. | 10,200 | 159 | ||||||||||
Iyo Bank Ltd. | 6,100 | 49 | ||||||||||
Mitsubishi UFJ Financial Group, Inc. | 365,700 | 2,662 | ||||||||||
Mizuho Financial Group, Inc. | 859,000 | 1,553 | ||||||||||
North Pacific Bank Ltd. | 41,300 | 138 |
SHARES | MARKET VALUE (000S) | |||||||||||
Resona Holdings, Inc. | 107,700 | $ | 642 | |||||||||
SBI Holdings, Inc. | 13,600 | 283 | ||||||||||
Sumitomo Mitsui Financial Group, Inc. | 50,700 | 2,185 | ||||||||||
Sumitomo Mitsui Trust Holdings, Inc. | 15,100 | 598 | ||||||||||
T&D Holdings, Inc. | 31,700 | 541 | ||||||||||
Yamaguchi Financial Group, Inc. | 8,000 | 95 | ||||||||||
|
| |||||||||||
9,840 | ||||||||||||
|
| |||||||||||
HEALTH CARE 0.2% | ||||||||||||
Daiichi Sankyo Co. Ltd. | 14,800 | 385 | ||||||||||
Takeda Pharmaceutical Co. Ltd. | 6,900 | 391 | ||||||||||
|
| |||||||||||
776 | ||||||||||||
|
| |||||||||||
INDUSTRIALS 2.3% | ||||||||||||
Asahi Glass Co. Ltd. | 12,500 | 540 | ||||||||||
Dai Nippon Printing Co. Ltd. | 9,000 | 200 | ||||||||||
Hitachi Construction Machinery Co. Ltd. | 7,800 | 283 | ||||||||||
ITOCHU Corp. | 37,700 | 703 | ||||||||||
Japan Airlines Co. Ltd. | 11,200 | 438 | ||||||||||
Kanematsu Corp. | 4,700 | 65 | ||||||||||
Kawasaki Heavy Industries Ltd. | 5,100 | 178 | ||||||||||
Komatsu Ltd. | 15,300 | 553 | ||||||||||
Marubeni Corp. | 75,000 | 542 | ||||||||||
Mitsubishi Corp. | 25,800 | 711 | ||||||||||
Mitsubishi Heavy Industries Ltd. | 16,200 | 604 | ||||||||||
Mitsui & Co. Ltd. | 61,100 | 991 | ||||||||||
Mitsui Engineering & Shipbuilding Co. Ltd. | 5,500 | 82 | ||||||||||
Nippon Yusen KK | 12,900 | 314 | ||||||||||
Sumitomo Corp. | 60,300 | 1,023 | ||||||||||
Sumitomo Heavy Industries Ltd. | 2,200 | 93 | ||||||||||
Toppan Printing Co. Ltd. | 16,000 | 145 | ||||||||||
Toyota Tsusho Corp. | 8,400 | 337 | ||||||||||
|
| |||||||||||
7,802 | ||||||||||||
|
| |||||||||||
INFORMATION TECHNOLOGY 2.1% | ||||||||||||
Anritsu Corp. | 2,300 | 26 | ||||||||||
Canon, Inc. | 38,800 | 1,446 | ||||||||||
Fujitsu Ltd. | 159,000 | 1,127 | ||||||||||
Gree, Inc. | 15,900 | 100 | ||||||||||
Hitachi Ltd. | 349,000 | 2,707 | ||||||||||
Ibiden Co. Ltd. | 16,400 | 245 | ||||||||||
Nippon Electric Glass Co. Ltd. | 10,500 | 400 | ||||||||||
Oki Electric Industry Co. Ltd. | 8,500 | 119 | ||||||||||
Ricoh Co. Ltd. | 81,600 | 756 | ||||||||||
|
| |||||||||||
6,926 | ||||||||||||
|
| |||||||||||
MATERIALS 0.6% | ||||||||||||
Asahi Kasei Corp. | 13,700 | 176 | ||||||||||
Denka Co. Ltd. | 2,700 | 108 | ||||||||||
DIC Corp. | 6,300 | 237 | ||||||||||
Kobe Steel Ltd. | 18,100 | 167 | ||||||||||
Kuraray Co. Ltd. | 3,500 | 66 | ||||||||||
Mitsubishi Materials Corp. | 4,600 | 163 | ||||||||||
Oji Holdings Corp. | 38,000 | 253 | ||||||||||
Showa Denko KK | 13,800 | 587 | ||||||||||
Ube Industries Ltd. | 6,900 | 202 | ||||||||||
|
| |||||||||||
1,959 | ||||||||||||
|
| |||||||||||
REAL ESTATE 0.0% | ||||||||||||
Nomura Real Estate Holdings, Inc. | 5,700 | 127 | ||||||||||
|
|
SHARES | MARKET VALUE (000S) | |||||||||||
TELECOMMUNICATION SERVICES 0.4% | ||||||||||||
Nippon Telegraph & Telephone Corp. | 28,900 | $ | 1,359 | |||||||||
NTT DOCOMO, Inc. | 4,500 | 106 | ||||||||||
|
| |||||||||||
1,465 | ||||||||||||
|
| |||||||||||
UTILITIES 0.2% | ||||||||||||
Chugoku Electric Power Co., Inc. | 12,700 | 136 | ||||||||||
Electric Power Development Co. Ltd. | 7,900 | 213 | ||||||||||
Hokuriku Electric Power Co. | 22,900 | 184 | ||||||||||
Tokyo Gas Co. Ltd. | 6,800 | 156 | ||||||||||
|
| |||||||||||
689 | ||||||||||||
|
| |||||||||||
Total Japan | 36,683 | |||||||||||
|
| |||||||||||
LUXEMBOURG 0.0% | ||||||||||||
CONSUMER DISCRETIONARY 0.0% | ||||||||||||
RTL Group S.A. | 1,850 | 149 | ||||||||||
|
| |||||||||||
Total Luxembourg | 149 | |||||||||||
|
| |||||||||||
MACAU 0.0% | ||||||||||||
CONSUMER DISCRETIONARY 0.0% | ||||||||||||
Wynn Macau Ltd. | 38,000 | 120 | ||||||||||
|
| |||||||||||
Total Macau | 120 | |||||||||||
|
| |||||||||||
MEXICO 0.0% | ||||||||||||
CONSUMER DISCRETIONARY 0.0% | ||||||||||||
Desarrolladora Homex S.A.B. de C.V. (c) | 41,996 | 1 | ||||||||||
|
| |||||||||||
Total Mexico | 1 | |||||||||||
|
| |||||||||||
NETHERLANDS 1.8% | ||||||||||||
CONSUMER STAPLES 0.1% | ||||||||||||
Heineken Holding NV | 271 | 27 | ||||||||||
Koninklijke Ahold Delhaize NV | 19,583 | 430 | ||||||||||
|
| |||||||||||
457 | ||||||||||||
|
| |||||||||||
ENERGY 1.0% | ||||||||||||
Fugro NV (c) | 5,236 | 82 | ||||||||||
Royal Dutch Shell PLC ‘A’ | 93,930 | 3,130 | ||||||||||
|
| |||||||||||
3,212 | ||||||||||||
|
| |||||||||||
FINANCIALS 0.2% | ||||||||||||
Aegon NV | 123,037 | 782 | ||||||||||
|
| |||||||||||
HEALTH CARE 0.3% | ||||||||||||
Koninklijke Philips NV | 26,154 | 987 | ||||||||||
|
| |||||||||||
INDUSTRIALS 0.1% | ||||||||||||
PostNL NV | 32,903 | 161 | ||||||||||
|
| |||||||||||
TELECOMMUNICATION SERVICES 0.1% | ||||||||||||
VEON Ltd. ADR | 103,800 | 399 | ||||||||||
|
| |||||||||||
Total Netherlands | 5,998 | |||||||||||
|
| |||||||||||
NEW ZEALAND 0.0% | ||||||||||||
TELECOMMUNICATION SERVICES 0.0% | ||||||||||||
Spark New Zealand Ltd. | 28,653 | 74 | ||||||||||
|
| |||||||||||
Total New Zealand | 74 | |||||||||||
|
|
See Accompanying Notes | SEMIANNUAL REPORT | DECEMBER 31, 2017 | 23 |
Table of Contents
Schedule of Investments PIMCO Dividend and Income Fund (Cont.)
SHARES | MARKET VALUE (000S) | |||||||||||
NORWAY 0.5% | ||||||||||||
ENERGY 0.3% | ||||||||||||
Statoil ASA | 50,502 | $ | 1,081 | |||||||||
|
| |||||||||||
FINANCIALS 0.1% | ||||||||||||
DNB ASA | 16,250 | 301 | ||||||||||
|
| |||||||||||
MATERIALS 0.1% | ||||||||||||
Yara International ASA | 7,280 | 334 | ||||||||||
|
| |||||||||||
TELECOMMUNICATION SERVICES 0.0% | ||||||||||||
Telenor ASA | 5,974 | 128 | ||||||||||
|
| |||||||||||
Total Norway | 1,844 | |||||||||||
|
| |||||||||||
PORTUGAL 0.1% | ||||||||||||
CONSUMER STAPLES 0.0% | ||||||||||||
Sonae SGPS S.A. | 55,099 | 75 | ||||||||||
|
| |||||||||||
UTILITIES 0.1% | ||||||||||||
EDP - Energias de Portugal S.A. | 96,551 | 334 | ||||||||||
|
| |||||||||||
Total Portugal | 409 | |||||||||||
|
| |||||||||||
SINGAPORE 0.2% | ||||||||||||
INDUSTRIALS 0.2% | ||||||||||||
Keppel Corp. Ltd. | 86,800 | 475 | ||||||||||
|
| |||||||||||
INFORMATION TECHNOLOGY 0.0% | ||||||||||||
Venture Corp. Ltd. | 5,400 | 82 | ||||||||||
|
| |||||||||||
Total Singapore | 557 | |||||||||||
|
| |||||||||||
SPAIN 2.5% | ||||||||||||
CONSUMER STAPLES 0.0% | ||||||||||||
Distribuidora Internacional de Alimentacion S.A. | 29,820 | 154 | ||||||||||
|
| |||||||||||
FINANCIALS 1.6% | ||||||||||||
Banco Santander S.A. | 762,737 | 5,001 | ||||||||||
Mapfre S.A. | 80,622 | 258 | ||||||||||
|
| |||||||||||
5,259 | ||||||||||||
|
| |||||||||||
INDUSTRIALS 0.4% | ||||||||||||
Abertis Infraestructuras S.A. | 12,961 | 289 | ||||||||||
ACS Actividades de Construccion y Servicios S.A. | 18,743 | 732 | ||||||||||
Obrascon Huarte Lain S.A. (c) | 56,289 | 336 | ||||||||||
|
| |||||||||||
1,357 | ||||||||||||
|
| |||||||||||
TELECOMMUNICATION SERVICES 0.3% | ||||||||||||
Telefonica S.A. | 104,047 | 1,013 | ||||||||||
|
| |||||||||||
UTILITIES 0.2% | ||||||||||||
Endesa S.A. | 30,577 | 654 | ||||||||||
|
| |||||||||||
Total Spain | 8,437 | |||||||||||
|
| |||||||||||
SWEDEN 0.6% | ||||||||||||
FINANCIALS 0.3% | ||||||||||||
Nordea Bank AB | 59,471 | 720 | ||||||||||
Ratos AB ‘B’ | 24,746 | 108 | ||||||||||
|
| |||||||||||
828 | ||||||||||||
|
|
SHARES | MARKET VALUE (000S) | |||||||||||
HEALTH CARE 0.0% | ||||||||||||
Arjo AB ‘B’ (c) | 7,782 | $ | 22 | |||||||||
Getinge AB ‘B’ | 7,782 | 113 | ||||||||||
|
| |||||||||||
135 | ||||||||||||
|
| |||||||||||
TELECOMMUNICATION SERVICES 0.3% | ||||||||||||
Tele2 AB ‘B’ | 48,224 | 593 | ||||||||||
Telia Co. AB | 103,478 | 461 | ||||||||||
|
| |||||||||||
1,054 | ||||||||||||
|
| |||||||||||
Total Sweden | 2,017 | |||||||||||
|
| |||||||||||
SWITZERLAND 1.9% | ||||||||||||
CONSUMER DISCRETIONARY 0.0% | ||||||||||||
Garmin Ltd. | 2,839 | 169 | ||||||||||
|
| |||||||||||
ENERGY 0.1% | ||||||||||||
Transocean Ltd. | 26,318 | 281 | ||||||||||
|
| |||||||||||
FINANCIALS 1.1% | ||||||||||||
Baloise Holding AG | 982 | 153 | ||||||||||
Swiss Life Holding AG | 2,293 | 810 | ||||||||||
Swiss Re AG | 11,955 | 1,118 | ||||||||||
Zurich Insurance Group AG | 5,536 | 1,683 | ||||||||||
|
| |||||||||||
3,764 | ||||||||||||
|
| |||||||||||
HEALTH CARE 0.5% | ||||||||||||
Roche Holding AG | 6,401 | 1,619 | ||||||||||
|
| |||||||||||
INDUSTRIALS 0.0% | ||||||||||||
ABB Ltd. | 2,925 | 78 | ||||||||||
|
| |||||||||||
INFORMATION TECHNOLOGY 0.1% | ||||||||||||
TE Connectivity Ltd. | 2,598 | 247 | ||||||||||
|
| |||||||||||
TELECOMMUNICATION SERVICES 0.1% | ||||||||||||
Swisscom AG | 413 | 220 | ||||||||||
|
| |||||||||||
Total Switzerland | 6,378 | |||||||||||
|
| |||||||||||
UNITED KINGDOM 6.6% | ||||||||||||
CONSUMER DISCRETIONARY 0.4% | ||||||||||||
Kingfisher PLC | 41,338 | 189 | ||||||||||
Marks & Spencer Group PLC | 148,248 | 629 | ||||||||||
Next PLC | 1,637 | 100 | ||||||||||
Pearson PLC | 43,437 | 430 | ||||||||||
|
| |||||||||||
1,348 | ||||||||||||
|
| |||||||||||
CONSUMER STAPLES 0.3% | ||||||||||||
Avon Products, Inc. (c) | 64,765 | 139 | ||||||||||
J Sainsbury PLC | 147,206 | 479 | ||||||||||
Wm Morrison Supermarkets PLC | 166,661 | 495 | ||||||||||
|
| |||||||||||
1,113 | ||||||||||||
|
| |||||||||||
ENERGY 0.8% | ||||||||||||
BP PLC | 382,499 | 2,683 | ||||||||||
Subsea 7 S.A. | 2,630 | 40 | ||||||||||
|
| |||||||||||
2,723 | ||||||||||||
|
| |||||||||||
FINANCIALS 3.5% | ||||||||||||
Barclays PLC | 216,444 | 592 |
SHARES | MARKET VALUE (000S) | |||||||||||
Direct Line Insurance Group PLC | 70,040 | $ | 360 | |||||||||
HSBC Holdings PLC | 793,423 | 8,195 | ||||||||||
Old Mutual PLC | 306,826 | 960 | ||||||||||
Standard Chartered PLC (c) | 150,092 | 1,576 | ||||||||||
Standard Life Aberdeen PLC | 33,422 | 197 | ||||||||||
|
| |||||||||||
11,880 | ||||||||||||
|
| |||||||||||
HEALTH CARE 0.3% | ||||||||||||
GlaxoSmithKline PLC | 48,074 | 851 | ||||||||||
|
| |||||||||||
INDUSTRIALS 0.5% | ||||||||||||
Aggreko PLC | 5,168 | 56 | ||||||||||
BAE Systems PLC | 27,783 | 215 | ||||||||||
easyJet PLC | 10,192 | 201 | ||||||||||
Firstgroup PLC (c) | 126,140 | 188 | ||||||||||
Rolls-Royce Holdings PLC | 59,924 | 684 | ||||||||||
Royal Mail PLC | 29,375 | 179 | ||||||||||
Stagecoach Group PLC | 44,625 | 99 | ||||||||||
|
| |||||||||||
1,622 | ||||||||||||
|
| |||||||||||
MATERIALS 0.1% | ||||||||||||
Rio Tinto PLC | 7,770 | 408 | ||||||||||
|
| |||||||||||
TELECOMMUNICATION SERVICES 0.5% | ||||||||||||
Vodafone Group PLC | 510,690 | 1,614 | ||||||||||
|
| |||||||||||
UTILITIES 0.2% | ||||||||||||
Centrica PLC | 301,346 | 559 | ||||||||||
Drax Group PLC | 41,240 | 150 | ||||||||||
Severn Trent PLC | 2,378 | 69 | ||||||||||
|
| |||||||||||
778 | ||||||||||||
|
| |||||||||||
Total United Kingdom | 22,337 | |||||||||||
|
| |||||||||||
UNITED STATES 30.6% | ||||||||||||
CONSUMER DISCRETIONARY 2.5% | ||||||||||||
Abercrombie & Fitch Co. ‘A’ | 33,089 | 577 | ||||||||||
American Eagle Outfitters, Inc. | 7,059 | 133 | ||||||||||
Caesars Entertainment Corp. (c) | 18,338 | 232 | ||||||||||
Dillard’s, Inc. ‘A’ | 5,475 | 329 | ||||||||||
Ford Motor Co. | 34,543 | 431 | ||||||||||
GameStop Corp. ‘A’ | 23,803 | 427 | ||||||||||
Gap, Inc. | 22,217 | 757 | ||||||||||
GNC Holdings, Inc. ‘A’ | 54,832 | 202 | ||||||||||
Goodyear Tire & Rubber Co. | 6,475 | 209 | ||||||||||
H&R Block, Inc. | 2,699 | 71 | ||||||||||
Kohl’s Corp. | 25,296 | 1,372 | ||||||||||
L Brands, Inc. | 2,037 | 123 | ||||||||||
Macy’s, Inc. | 28,502 | 718 | ||||||||||
Mattel, Inc. | 4,937 | 76 | ||||||||||
Nordstrom, Inc. | 10,256 | 486 | ||||||||||
Regal Entertainment Group ‘A’ | 1,808 | 41 | ||||||||||
Tapestry, Inc. | 561 | 25 | ||||||||||
Tribune Media Co. ‘A’ | 1,359 | 58 | ||||||||||
Tupperware Brands Corp. | 3,797 | 238 | ||||||||||
Viacom, Inc. ‘B’ | 44,517 | 1,371 | ||||||||||
Weight Watchers International, Inc. (c) | 8,727 | 386 | ||||||||||
Wynn Resorts Ltd. | 883 | 149 | ||||||||||
|
| |||||||||||
8,411 | ||||||||||||
|
| |||||||||||
CONSUMER STAPLES 2.7% | ||||||||||||
Altria Group, Inc. | 2,087 | 149 |
24 | PIMCO EQUITY SERIES | See Accompanying Notes |
Table of Contents
December 31, 2017 (Unaudited)
SHARES | MARKET VALUE (000S) | |||||||||||
Archer-Daniels-Midland Co. | 12,123 | $ | 486 | |||||||||
Bunge Ltd. | 3,745 | 251 | ||||||||||
General Mills, Inc. | 1,768 | 105 | ||||||||||
Herbalife Ltd. (c) | 5,722 | 388 | ||||||||||
Nu Skin Enterprises, Inc. ‘A’ | 480 | 33 | ||||||||||
Philip Morris International, Inc. | 17,141 | 1,811 | ||||||||||
Procter & Gamble Co. | 22,880 | 2,102 | ||||||||||
Wal-Mart Stores, Inc. | 39,954 | 3,945 | ||||||||||
|
| |||||||||||
9,270 | ||||||||||||
|
| |||||||||||
ENERGY 3.8% | ||||||||||||
Andeavor | 1,828 | 209 | ||||||||||
Chevron Corp. | 21,195 | 2,653 | ||||||||||
CNX Resources Corp. (c) | 1,731 | 25 | ||||||||||
ConocoPhillips | 22,409 | 1,230 | ||||||||||
CONSOL Energy, Inc. (c) | 329 | 13 | ||||||||||
CVR Energy, Inc. | 3,659 | 136 | ||||||||||
Diamond Offshore Drilling, Inc. (c) | 12,225 | 227 | ||||||||||
Exxon Mobil Corp. | 51,707 | 4,325 | ||||||||||
Hess Corp. | 6,703 | 318 | ||||||||||
HollyFrontier Corp. | 12,783 | 655 | ||||||||||
Marathon Oil Corp. | 6,884 | 117 | ||||||||||
Marathon Petroleum Corp. | 11,894 | 785 | ||||||||||
Murphy Oil Corp. | 5,218 | 162 | ||||||||||
National Oilwell Varco, Inc. | 10,918 | 393 | ||||||||||
Occidental Petroleum Corp. | 3,814 | 281 | ||||||||||
Phillips 66 | 245 | 25 | ||||||||||
Valero Energy Corp. | 12,924 | 1,188 | ||||||||||
Williams Cos., Inc. | 5,105 | 156 | ||||||||||
|
| |||||||||||
12,898 | ||||||||||||
|
| |||||||||||
FINANCIALS 7.4% | ||||||||||||
Aflac, Inc. | 5,522 | 485 | ||||||||||
American Express Co. | 18,659 | 1,853 | ||||||||||
American International Group, Inc. | 60,740 | 3,619 | ||||||||||
Assurant, Inc. | 1,709 | 172 | ||||||||||
Capital One Financial Corp. | 17,366 | 1,729 | ||||||||||
Discover Financial Services | 12,371 | 952 | ||||||||||
Fifth Third Bancorp | 16,736 | 508 | ||||||||||
Franklin Resources, Inc. | 7,376 | 320 | ||||||||||
Goldman Sachs Group, Inc. | 1,208 | 308 | ||||||||||
JPMorgan Chase & Co. | 55,494 | 5,934 | ||||||||||
Loews Corp. | 2,941 | 147 | ||||||||||
LPL Financial Holdings, Inc. | 3,473 | 198 | ||||||||||
Navient Corp. | 48,427 | 645 | ||||||||||
New York Community Bancorp, Inc. | 4,118 | 54 | ||||||||||
People’s United Financial, Inc. | 10,698 | 200 | ||||||||||
PNC Financial Services Group, Inc. | 5,413 | 781 | ||||||||||
Progressive Corp. | 444 | 25 | ||||||||||
Santander Consumer USA Holdings, Inc. | 21,297 | 397 | ||||||||||
SLM Corp. (c) | 29,291 | 331 | ||||||||||
T Rowe Price Group, Inc. | 1,993 | 209 | ||||||||||
Travelers Cos., Inc. | 13,230 | 1,794 | ||||||||||
U.S. Bancorp | 10,505 | 563 | ||||||||||
VICI Properties, Inc. (c) | 26,432 | 542 | ||||||||||
Voya Financial, Inc. | 18,893 | 935 | ||||||||||
Wells Fargo & Co. | 39,015 | 2,367 | ||||||||||
|
| |||||||||||
25,068 | ||||||||||||
|
| |||||||||||
HEALTH CARE 4.0% | ||||||||||||
Anthem, Inc. | 10,927 | 2,459 | ||||||||||
Community Health Systems, Inc. (c) | 90,287 | 385 | ||||||||||
HCA Healthcare, Inc. (c) | 15,814 | 1,389 |
SHARES | MARKET VALUE (000S) | |||||||||||
Merck & Co., Inc. | 46,470 | $ | 2,615 | |||||||||
Pfizer, Inc. | 175,356 | 6,351 | ||||||||||
Quest Diagnostics, Inc. | 4,626 | 455 | ||||||||||
|
| |||||||||||
13,654 | ||||||||||||
|
| |||||||||||
INDUSTRIALS 2.3% | ||||||||||||
AGCO Corp. | 2,118 | 151 | ||||||||||
Caterpillar, Inc. | 11,384 | 1,794 | ||||||||||
CSX Corp. | 12,542 | 690 | ||||||||||
Cummins, Inc. | 658 | 116 | ||||||||||
Deere & Co. | 13,460 | 2,107 | ||||||||||
Emerson Electric Co. | 16,148 | 1,125 | ||||||||||
Fluor Corp. | 6,176 | 319 | ||||||||||
ManpowerGroup, Inc. | 220 | 28 | ||||||||||
Norfolk Southern Corp. | 4,216 | 611 | ||||||||||
Pitney Bowes, Inc. | 24,984 | 279 | ||||||||||
RR Donnelley & Sons Co. | 6,808 | 63 | ||||||||||
Ryder System, Inc. | 1,890 | 159 | ||||||||||
Trinity Industries, Inc. | 4,661 | 175 | ||||||||||
|
| |||||||||||
7,617 | ||||||||||||
|
| |||||||||||
INFORMATION TECHNOLOGY 3.2% | ||||||||||||
Avnet, Inc. | 2,868 | 114 | ||||||||||
Booz Allen Hamilton Holding Corp. | 9,116 | 348 | ||||||||||
CA, Inc. | 10,750 | 358 | ||||||||||
Corning, Inc. | 12,545 | 401 | ||||||||||
Intel Corp. | 22,050 | 1,018 | ||||||||||
International Business Machines Corp. | 32,726 | 5,021 | ||||||||||
Jabil, Inc. | 5,735 | 150 | ||||||||||
KLA-Tencor Corp. | 2,092 | 220 | ||||||||||
Seagate Technology PLC | 33,200 | 1,389 | ||||||||||
Symantec Corp. | 28,803 | 808 | ||||||||||
Western Digital Corp. | 3,428 | 273 | ||||||||||
Western Union Co. | 19,389 | 369 | ||||||||||
Xerox Corp. | 16,451 | 479 | ||||||||||
|
| |||||||||||
10,948 | ||||||||||||
|
| |||||||||||
MATERIALS 1.2% | ||||||||||||
CF Industries Holdings, Inc. | 9,539 | 406 | ||||||||||
Cleveland-Cliffs, Inc. (c) | 3,436 | 25 | ||||||||||
Domtar Corp. | 9,147 | 453 | ||||||||||
DowDuPont, Inc. | 4,292 | 306 | ||||||||||
Huntsman Corp. | 8,514 | 283 | ||||||||||
International Paper Co. | 4,885 | 283 | ||||||||||
LyondellBasell Industries NV ‘A’ | 13,860 | 1,529 | ||||||||||
Mosaic Co. | 28,742 | 737 | ||||||||||
|
| |||||||||||
4,022 | ||||||||||||
|
| |||||||||||
TELECOMMUNICATION SERVICES 1.7% | ||||||||||||
AT&T, Inc. | 21,010 | 817 | ||||||||||
CenturyLink, Inc. | 71,637 | 1,195 | ||||||||||
Frontier Communications Corp. | 44,147 | 298 | ||||||||||
Telephone & Data Systems, Inc. | 4,614 | 128 | ||||||||||
Verizon Communications, Inc. | 56,980 | 3,016 | ||||||||||
Windstream Holdings, Inc. | 98,268 | 182 | ||||||||||
|
| |||||||||||
5,636 | ||||||||||||
|
| |||||||||||
UTILITIES 1.8% | ||||||||||||
American Electric Power Co., Inc. | 7,416 | 546 | ||||||||||
CenterPoint Energy, Inc. | 15,207 | 431 | ||||||||||
Consolidated Edison, Inc. | 8,246 | 701 | ||||||||||
Entergy Corp. | 13,491 | 1,098 |
SHARES | MARKET VALUE (000S) | |||||||||||
Exelon Corp. | 30,422 | $ | 1,199 | |||||||||
FirstEnergy Corp. | 34,547 | 1,058 | ||||||||||
Pinnacle West Capital Corp. | 2,760 | 235 | ||||||||||
PPL Corp. | 6,084 | 188 | ||||||||||
Public Service Enterprise Group, Inc. | 12,339 | 635 | ||||||||||
|
| |||||||||||
6,091 | ||||||||||||
|
| |||||||||||
Total United States | 103,615 | |||||||||||
|
| |||||||||||
Total Common Stocks (Cost $211,381) | 247,869 | |||||||||||
|
| |||||||||||
PRINCIPAL AMOUNT (000S) | ||||||||||||
CORPORATE BONDS & NOTES 6.9% | ||||||||||||
AUSTRALIA 0.1% | ||||||||||||
BANKING & FINANCE 0.1% | ||||||||||||
National Australia Bank Ltd. |
| |||||||||||
1.375% due 07/12/2019 | 400 | 395 | ||||||||||
|
| |||||||||||
Total Australia | 395 | |||||||||||
|
| |||||||||||
AUSTRIA 0.0% | ||||||||||||
INDUSTRIALS 0.0% | ||||||||||||
OGX Austria GmbH |
| |||||||||||
8.500% due 06/01/2018 ^(b) | 200 | 0 | ||||||||||
8.375% due 04/01/2022 ^(b) | 200 | 0 | ||||||||||
|
| |||||||||||
0 | ||||||||||||
|
| |||||||||||
Total Austria | 0 | |||||||||||
|
| |||||||||||
BERMUDA 0.0% | ||||||||||||
INDUSTRIALS 0.0% | ||||||||||||
IHS Markit Ltd. |
| |||||||||||
4.000% due 03/01/2026 | 10 | 10 | ||||||||||
|
| |||||||||||
Total Bermuda | 10 | |||||||||||
|
| |||||||||||
BRAZIL 0.4% | ||||||||||||
UTILITIES 0.4% | ||||||||||||
Petrobras Global Finance BV |
| |||||||||||
6.125% due 01/17/2022 | 67 | 71 | ||||||||||
5.299% due 01/27/2025 | 535 | 538 | ||||||||||
5.999% due 01/27/2028 | 587 | 589 | ||||||||||
6.250% due 12/14/2026 | GBP | 100 | 148 | |||||||||
6.875% due 01/20/2040 | $ | 2 | 2 | |||||||||
|
| |||||||||||
1,348 | ||||||||||||
|
| |||||||||||
Total Brazil | 1,348 | |||||||||||
|
| |||||||||||
CANADA 0.0% | ||||||||||||
BANKING & FINANCE 0.0% | ||||||||||||
Brookfield Finance, Inc. |
| |||||||||||
4.700% due 09/20/2047 | 16 | 17 | ||||||||||
|
| |||||||||||
INDUSTRIALS 0.0% | ||||||||||||
Air Canada Pass-Through Trust |
| |||||||||||
3.300% due 07/15/2031 | 4 | 4 | ||||||||||
3.550% due 07/15/2031 | 2 | 2 | ||||||||||
3.700% due 07/15/2027 | 4 | 4 | ||||||||||
BC Unlimited Liability Co. |
| |||||||||||
4.250% due 05/15/2024 | 38 | 38 | ||||||||||
goeasy Ltd. |
| |||||||||||
7.875% due 11/01/2022 | 6 | 6 | ||||||||||
Valeant Pharmaceuticals International, Inc. |
| |||||||||||
6.500% due 03/15/2022 | 13 | 14 | ||||||||||
7.000% due 03/15/2024 | 25 | 27 | ||||||||||
|
| |||||||||||
95 | ||||||||||||
|
| |||||||||||
Total Canada | 112 | |||||||||||
|
|
See Accompanying Notes | SEMIANNUAL REPORT | DECEMBER 31, 2017 | 25 |
Table of Contents
Schedule of Investments PIMCO Dividend and Income Fund (Cont.)
PRINCIPAL AMOUNT (000S) | MARKET VALUE (000S) | |||||||||||
CAYMAN ISLANDS 0.1% | ||||||||||||
INDUSTRIALS 0.0% | ||||||||||||
Park Aerospace Holdings Ltd. |
| |||||||||||
5.250% due 08/15/2022 | $ | 23 | $ | 23 | ||||||||
5.500% due 02/15/2024 | 11 | 11 | ||||||||||
4.500% due 03/15/2023 | 23 | 22 | ||||||||||
3.625% due 03/15/2021 | 11 | 10 | ||||||||||
Transocean, Inc. |
| |||||||||||
7.500% due 01/15/2026 | 6 | 6 | ||||||||||
|
| |||||||||||
72 | ||||||||||||
|
| |||||||||||
UTILITIES 0.1% | ||||||||||||
Odebrecht Drilling Norbe Ltd. |
| |||||||||||
6.350% due 06/30/2022 ^(b) | 143 | 91 | ||||||||||
Transocean Phoenix Ltd. |
| |||||||||||
7.750% due 10/15/2024 | 5 | 5 | ||||||||||
|
| |||||||||||
96 | ||||||||||||
|
| |||||||||||
Total Cayman Islands | 168 | |||||||||||
|
| |||||||||||
DENMARK 0.3% | ||||||||||||
BANKING & FINANCE 0.3% | ||||||||||||
Nykredit Realkredit A/S |
| |||||||||||
3.000% due 10/01/2047 | DKK | 6,822 | 1,175 | |||||||||
|
| |||||||||||
Total Denmark | 1,175 | |||||||||||
|
| |||||||||||
FINLAND 0.0% | ||||||||||||
INDUSTRIALS 0.0% | ||||||||||||
Nokia Oyj |
| |||||||||||
4.375% due 06/12/2027 | $ | 6 | 6 | |||||||||
|
| |||||||||||
Total Finland | 6 | |||||||||||
|
| |||||||||||
FRANCE 0.5% | ||||||||||||
BANKING & FINANCE 0.3% | ||||||||||||
RCI Banque S.A. |
| |||||||||||
3.500% due 04/03/2018 | 1,000 | 1,003 | ||||||||||
|
| |||||||||||
INDUSTRIALS 0.2% | ||||||||||||
SFR Group S.A. |
| |||||||||||
7.375% due 05/01/2026 | 700 | 724 | ||||||||||
|
| |||||||||||
Total France | 1,727 | |||||||||||
|
| |||||||||||
GERMANY 0.2% | ||||||||||||
BANKING & FINANCE 0.2% | ||||||||||||
Deutsche Bank AG |
| |||||||||||
4.250% due 10/14/2021 | 590 | 616 | ||||||||||
2.700% due 07/13/2020 | 26 | 26 | ||||||||||
2.329% (US0003M + 0.970%) due 07/13/2020 ~ | 26 | 26 | ||||||||||
|
| |||||||||||
668 | ||||||||||||
|
| |||||||||||
Total Germany | 668 | |||||||||||
|
| |||||||||||
IRELAND 0.2% | ||||||||||||
INDUSTRIALS 0.2% | ||||||||||||
Russian Railways via RZD Capital PLC |
| |||||||||||
7.487% due 03/25/2031 | GBP | 300 | 517 | |||||||||
|
| |||||||||||
Total Ireland | 517 | |||||||||||
|
| |||||||||||
LUXEMBOURG 0.7% | ||||||||||||
BANKING & FINANCE 0.2% | ||||||||||||
Emerald Bay S.A. |
| |||||||||||
0.000% due 10/08/2020 ~ | EUR | 4 | 4 |
PRINCIPAL AMOUNT (000S) | MARKET VALUE (000S) | |||||||||||
Sberbank of Russia Via SB Capital S.A. |
| |||||||||||
3.352% due 11/15/2019 | EUR | 200 | $ | 252 | ||||||||
6.125% due 02/07/2022 | $ | 400 | 437 | |||||||||
|
| |||||||||||
693 | ||||||||||||
|
| |||||||||||
INDUSTRIALS 0.1% | ||||||||||||
Intelsat Jackson Holdings S.A. |
| |||||||||||
9.750% due 07/15/2025 | 18 | 17 | ||||||||||
7.250% due 10/15/2020 | 150 | 142 | ||||||||||
|
| |||||||||||
159 | ||||||||||||
|
| |||||||||||
UTILITIES 0.4% | ||||||||||||
Gazprom Neft OAO Via GPN Capital S.A. |
| |||||||||||
4.375% due 09/19/2022 | 300 | 308 | ||||||||||
6.000% due 11/27/2023 | 300 | 332 | ||||||||||
Gazprom OAO Via Gaz Capital S.A. |
| |||||||||||
9.250% due 04/23/2019 | 600 | 648 | ||||||||||
5.999% due 01/23/2021 | 30 | 32 | ||||||||||
6.605% due 02/13/2018 | EUR | 50 | 61 | |||||||||
|
| |||||||||||
1,381 | ||||||||||||
|
| |||||||||||
Total Luxembourg | 2,233 | |||||||||||
|
| |||||||||||
MEXICO 0.0% | ||||||||||||
INDUSTRIALS 0.0% | ||||||||||||
Corp. GEO S.A.B. de C.V. |
| |||||||||||
8.875% due 03/27/2022 ^(b) | $ | 300 | 0 | |||||||||
9.250% due 06/30/2020 ^(b) | 100 | 0 | ||||||||||
Petroleos Mexicanos |
| |||||||||||
6.500% due 03/13/2027 | 80 | 88 | ||||||||||
6.750% due 09/21/2047 | 40 | 42 | ||||||||||
|
| |||||||||||
130 | ||||||||||||
|
| |||||||||||
Total Mexico | 130 | |||||||||||
|
| |||||||||||
NETHERLANDS 0.1% | ||||||||||||
BANKING & FINANCE 0.1% | ||||||||||||
Cooperatieve Rabobank UA |
| |||||||||||
6.625% due 06/29/2021 •(g)(h) | EUR | 200 | 278 | |||||||||
Stichting AK Rabobank Certificaten |
| |||||||||||
6.500% (g) | 25 | 37 | ||||||||||
|
| |||||||||||
315 | ||||||||||||
|
| |||||||||||
INDUSTRIALS 0.0% | ||||||||||||
OI European Group BV |
| |||||||||||
4.000% due 03/15/2023 | $ | 4 | 4 | |||||||||
|
| |||||||||||
Total Netherlands | 319 | |||||||||||
|
| |||||||||||
SUPRANATIONAL 0.0% | ||||||||||||
BANKING & FINANCE 0.0% | ||||||||||||
European Investment Bank |
| |||||||||||
0.000% due 01/15/2018 • | EUR | 18 | 22 | |||||||||
|
| |||||||||||
Total Supranational | 22 | |||||||||||
|
| |||||||||||
UNITED KINGDOM 1.6% | ||||||||||||
BANKING & FINANCE 1.3% | ||||||||||||
Barclays Bank PLC |
| |||||||||||
7.625% due 11/21/2022 (h) | $ | 430 | 488 | |||||||||
14.000% due 06/15/2019 •(g) | GBP | 300 | 476 | |||||||||
HSBC Holdings PLC |
| |||||||||||
6.000% due 09/29/2023 •(g)(h) | EUR | 320 | 449 | |||||||||
3.600% due 05/25/2023 | $ | 200 | 206 | |||||||||
Lloyds Banking Group PLC |
| |||||||||||
7.875% due 06/27/2029 •(g)(h) | GBP | 200 | 329 | |||||||||
7.625% due 06/27/2023 •(g)(h) | 200 | 312 | ||||||||||
Royal Bank of Scotland Group PLC |
| |||||||||||
2.500% due 03/22/2023 | EUR | 350 | 454 |
PRINCIPAL AMOUNT (000S) | MARKET VALUE (000S) | |||||||||||
7.500% due 08/10/2020 •(g)(h) | $ | 360 | $ | 382 | ||||||||
Santander UK Group Holdings PLC |
| |||||||||||
4.750% due 09/15/2025 | 460 | 483 | ||||||||||
Tesco Property Finance PLC |
| |||||||||||
6.052% due 10/13/2039 | GBP | 410 | 670 | |||||||||
|
| |||||||||||
4,249 | ||||||||||||
|
| |||||||||||
INDUSTRIALS 0.3% | ||||||||||||
EI Group PLC |
| |||||||||||
6.875% due 02/15/2021 | 200 | 301 | ||||||||||
Marston’s Issuer PLC |
| |||||||||||
5.641% due 07/15/2035 • | 200 | 248 | ||||||||||
Mitchells & Butlers Finance PLC |
| |||||||||||
0.966% (BP0003M + 0.450%) due 12/15/2030 ~ | 139 | 176 | ||||||||||
Spirit Issuer PLC |
| |||||||||||
6.582% due 12/28/2027 | 200 | 288 | ||||||||||
3.221% (BP0003M + 2.700%) due 12/28/2031 ~ | 22 | 29 | ||||||||||
Unique Pub Finance Co. PLC |
| |||||||||||
5.659% due 06/30/2027 | 45 | 69 | ||||||||||
|
| |||||||||||
1,111 | ||||||||||||
|
| |||||||||||
Total United Kingdom | 5,360 | |||||||||||
|
| |||||||||||
UNITED STATES 2.7% | ||||||||||||
BANKING & FINANCE 1.4% | ||||||||||||
American Tower Corp. |
| |||||||||||
3.000% due 06/15/2023 | $ | 16 | 16 | |||||||||
Boston Properties LP |
| |||||||||||
3.200% due 01/15/2025 | 10 | 10 | ||||||||||
Brighthouse Financial, Inc. |
| |||||||||||
3.700% due 06/22/2027 | 12 | 12 | ||||||||||
4.700% due 06/22/2047 | 4 | 4 | ||||||||||
Cantor Fitzgerald LP |
| |||||||||||
7.875% due 10/15/2019 | 280 | 303 | ||||||||||
Crown Castle International Corp. |
| |||||||||||
4.000% due 03/01/2027 | 8 | 8 | ||||||||||
3.200% due 09/01/2024 | 10 | 10 | ||||||||||
3.650% due 09/01/2027 | 44 | 44 | ||||||||||
CTR Partnership LP |
| |||||||||||
5.250% due 06/01/2025 | 12 | 12 | ||||||||||
Digital Realty Trust LP |
| |||||||||||
3.700% due 08/15/2027 | 8 | 8 | ||||||||||
Duke Realty LP |
| |||||||||||
3.375% due 12/15/2027 | 4 | 4 | ||||||||||
ERP Operating LP |
| |||||||||||
3.250% due 08/01/2027 | 4 | 4 | ||||||||||
4.000% due 08/01/2047 | 2 | 2 | ||||||||||
Fortress Transportation & Infrastructure Investors LLC |
| |||||||||||
6.750% due 03/15/2022 | 8 | 8 | ||||||||||
Freedom Mortgage Corp. |
| |||||||||||
8.125% due 11/15/2024 | 8 | 8 | ||||||||||
Goodman U.S. Finance Four LLC |
| |||||||||||
4.500% due 10/15/2037 | 12 | 12 | ||||||||||
Howard Hughes Corp. |
| |||||||||||
5.375% due 03/15/2025 | 27 | 28 | ||||||||||
Hudson Pacific Properties LP |
| |||||||||||
3.950% due 11/01/2027 | 5 | 5 | ||||||||||
International Lease Finance Corp. |
| |||||||||||
7.125% due 09/01/2018 | 325 | 335 | ||||||||||
6.250% due 05/15/2019 | 1,110 | 1,164 | ||||||||||
Iron Mountain, Inc. |
| |||||||||||
5.250% due 03/15/2028 | 6 | 6 | ||||||||||
iStar, Inc. |
| |||||||||||
4.625% due 09/15/2020 | 2 | 2 | ||||||||||
5.250% due 09/15/2022 | 7 | 7 | ||||||||||
Life Storage LP |
| |||||||||||
3.875% due 12/15/2027 | 4 | 4 | ||||||||||
Navient Corp. |
| |||||||||||
6.500% due 06/15/2022 | 66 | 69 | ||||||||||
8.000% due 03/25/2020 | 600 | 650 |
26 | PIMCO EQUITY SERIES | See Accompanying Notes |
Table of Contents
December 31, 2017 (Unaudited)
PRINCIPAL AMOUNT (000S) | MARKET VALUE (000S) | |||||||||||
Oppenheimer Holdings, Inc. |
| |||||||||||
6.750% due 07/01/2022 | $ | 6 | $ | 6 | ||||||||
Oxford Finance LLC |
| |||||||||||
6.375% due 12/15/2022 | 6 | 6 | ||||||||||
Physicians Realty LP |
| |||||||||||
3.950% due 01/15/2028 | 8 | 8 | ||||||||||
Provident Funding Associates LP |
| |||||||||||
6.375% due 06/15/2025 | 4 | 4 | ||||||||||
Santander Holdings USA, Inc. |
| |||||||||||
3.700% due 03/28/2022 | 6 | 6 | ||||||||||
4.400% due 07/13/2027 | 7 | 7 | ||||||||||
3.400% due 01/18/2023 | 8 | 8 | ||||||||||
SL Green Operating Partnership LP |
| |||||||||||
3.250% due 10/15/2022 | 2 | 2 | ||||||||||
Springleaf Finance Corp. |
| |||||||||||
6.125% due 05/15/2022 | 292 | 304 | ||||||||||
8.250% due 12/15/2020 | 980 | 1,081 | ||||||||||
5.625% due 03/15/2023 | 200 | 201 | ||||||||||
Starwood Property Trust, Inc. |
| |||||||||||
4.750% due 03/15/2025 | 10 | 10 | ||||||||||
UDR, Inc. |
| |||||||||||
4.625% due 01/10/2022 | 2 | 2 | ||||||||||
3.500% due 01/15/2028 | 6 | 6 | ||||||||||
VEREIT Operating Partnership LP |
| |||||||||||
3.950% due 08/15/2027 | 8 | 8 | ||||||||||
Vici Properties LLC |
| |||||||||||
8.000% due 10/15/2023 | 125 | 141 | ||||||||||
4.847% (US0003M + 3.500%) due 10/15/2022 ~ | 34 | 35 | ||||||||||
Vornado Realty LP |
| |||||||||||
3.500% due 01/15/2025 | 4 | 4 | ||||||||||
Washington Prime Group LP |
| |||||||||||
5.950% due 08/15/2024 | 73 | 75 | ||||||||||
|
| |||||||||||
4,649 | ||||||||||||
|
| |||||||||||
INDUSTRIALS 0.8% | ||||||||||||
Allegion U.S. Holding Co., Inc. |
| |||||||||||
3.200% due 10/01/2024 | 4 | 4 | ||||||||||
3.550% due 10/01/2027 | 1 | 1 | ||||||||||
American Airlines Pass-Through Trust |
| |||||||||||
3.350% due 04/15/2031 | 10 | 10 | ||||||||||
Andeavor Logistics LP |
| |||||||||||
3.500% due 12/01/2022 | 2 | 2 | ||||||||||
5.200% due 12/01/2047 | 2 | 2 | ||||||||||
4.250% due 12/01/2027 | 2 | 2 | ||||||||||
Arrow Electronics, Inc. |
| |||||||||||
3.250% due 09/08/2024 | 6 | 6 | ||||||||||
Avantor, Inc. |
| |||||||||||
6.000% due 10/01/2024 | 4 | 4 | ||||||||||
BAT Capital Corp. |
| |||||||||||
3.222% due 08/15/2024 | 22 | 22 | ||||||||||
BMC Software Finance, Inc. |
| |||||||||||
8.125% due 07/15/2021 | 18 | 18 | ||||||||||
Boxer Parent Co., Inc. (9.000% Cash or 9.750% PIK) |
| |||||||||||
9.000% due 10/15/2019 (a) | 18 | 18 | ||||||||||
Broadcom Corp. |
| |||||||||||
3.000% due 01/15/2022 | 68 | 68 | ||||||||||
3.625% due 01/15/2024 | 6 | 6 | ||||||||||
3.875% due 01/15/2027 | 20 | 20 | ||||||||||
Caesars Entertainment Corp. |
| |||||||||||
5.000% due 10/01/2024 | 9 | 17 | ||||||||||
Central Garden & Pet Co. |
| |||||||||||
5.125% due 02/01/2028 | 4 | 4 | ||||||||||
Charter Communications Operating LLC |
| |||||||||||
4.200% due 03/15/2028 | 19 | 19 | ||||||||||
Cheniere Energy Partners LP |
| |||||||||||
5.250% due 10/01/2025 | 10 | 10 | ||||||||||
Cimarex Energy Co. |
| |||||||||||
3.900% due 05/15/2027 | 7 | 7 | ||||||||||
Cleveland-Cliffs, Inc. |
| |||||||||||
4.875% due 01/15/2024 | 4 | 4 | ||||||||||
Community Health Systems, Inc. |
| |||||||||||
6.250% due 03/31/2023 | 23 | 21 |
PRINCIPAL AMOUNT (000S) | MARKET VALUE (000S) | |||||||||||
CRC Escrow Issuer LLC |
| |||||||||||
5.250% due 10/15/2025 | $ | 8 | $ | 8 | ||||||||
CVS Pass-Through Trust |
| |||||||||||
8.353% due 07/10/2031 | 511 | 660 | ||||||||||
DAE Funding LLC |
| |||||||||||
4.500% due 08/01/2022 | 10 | 10 | ||||||||||
5.000% due 08/01/2024 | 20 | 20 | ||||||||||
4.000% due 08/01/2020 | 10 | 10 | ||||||||||
Diamond Resorts International, Inc. |
| |||||||||||
7.750% due 09/01/2023 | 103 | 112 | ||||||||||
Discovery Communications LLC |
| |||||||||||
2.950% due 03/20/2023 | 5 | 5 | ||||||||||
3.950% due 03/20/2028 | 6 | 6 | ||||||||||
EQT Corp. |
| |||||||||||
2.500% due 10/01/2020 | 2 | 2 | ||||||||||
2.465% (US0003M + 0.770%) due 10/01/2020 ~ | 15 | 15 | ||||||||||
Exela Intermediate LLC |
| |||||||||||
10.000% due 07/15/2023 | 16 | 16 | ||||||||||
Harland Clarke Holdings Corp. |
| |||||||||||
8.375% due 08/15/2022 | 10 | 10 | ||||||||||
HCA, Inc. |
| |||||||||||
5.500% due 06/15/2047 | 12 | 12 | ||||||||||
iHeartCommunications, Inc. |
| |||||||||||
9.000% due 03/01/2021 | 3 | 2 | ||||||||||
9.000% due 12/15/2019 | 54 | 40 | ||||||||||
9.000% due 09/15/2022 | 397 | 287 | ||||||||||
Intrepid Aviation Group Holdings LLC |
| |||||||||||
6.875% due 02/15/2019 | 10 | 10 | ||||||||||
Lennar Corp. |
| |||||||||||
4.750% due 11/29/2027 | 4 | 4 | ||||||||||
Mattel, Inc. |
| |||||||||||
6.750% due 12/31/2025 | 10 | 10 | ||||||||||
NetApp, Inc. |
| |||||||||||
3.300% due 09/29/2024 | 7 | 7 | ||||||||||
2.000% due 09/27/2019 | 4 | 4 | ||||||||||
Netflix, Inc. |
| |||||||||||
4.875% due 04/15/2028 | 8 | 8 | ||||||||||
PetSmart, Inc. |
| |||||||||||
5.875% due 06/01/2025 | 16 | 12 | ||||||||||
Pitney Bowes, Inc. |
| |||||||||||
4.700% due 04/01/2023 | 6 | 6 | ||||||||||
Post Holdings, Inc. |
| |||||||||||
5.625% due 01/15/2028 | 2 | 2 | ||||||||||
Priceline Group, Inc. |
| |||||||||||
2.750% due 03/15/2023 | 4 | 4 | ||||||||||
3.550% due 03/15/2028 | 8 | 8 | ||||||||||
Scientific Games International, Inc. |
| |||||||||||
5.000% due 10/15/2025 | 4 | 4 | ||||||||||
Service Corp. International |
| |||||||||||
4.625% due 12/15/2027 | 4 | 4 | ||||||||||
Simmons Foods, Inc. |
| |||||||||||
5.750% due 11/01/2024 | 4 | 4 | ||||||||||
Spirit Airlines Pass-Through Trust |
| |||||||||||
3.375% due 08/15/2031 | 10 | 10 | ||||||||||
Standard Industries, Inc. |
| |||||||||||
4.750% due 01/15/2028 | 10 | 10 | ||||||||||
Tech Data Corp. |
| |||||||||||
3.700% due 02/15/2022 | 5 | 5 | ||||||||||
4.950% due 02/15/2027 | 6 | 6 | ||||||||||
Tenet Healthcare Corp. |
| |||||||||||
4.625% due 07/15/2024 | 34 | 33 | ||||||||||
Textron, Inc. |
| |||||||||||
1.960% (US0003M + 0.550%) due 11/10/2020 ~ | 40 | 40 | ||||||||||
Time Warner Cable LLC |
| |||||||||||
6.750% due 07/01/2018 | 500 | 511 | ||||||||||
5.000% due 02/01/2020 | 600 | 627 | ||||||||||
Time Warner, Inc. |
| |||||||||||
3.800% due 02/15/2027 | 14 | 14 | ||||||||||
VMware, Inc. |
| |||||||||||
2.300% due 08/21/2020 | 10 | 10 | ||||||||||
2.950% due 08/21/2022 | 10 | 10 | ||||||||||
3.900% due 08/21/2027 | 10 | 10 |
PRINCIPAL AMOUNT (000S) | MARKET VALUE (000S) | |||||||||||
Wyndham Worldwide Corp. |
| |||||||||||
4.500% due 04/01/2027 | $ | 6 | $ | 6 | ||||||||
4.150% due 04/01/2024 | 5 | 5 | ||||||||||
|
| |||||||||||
2,864 | ||||||||||||
|
| |||||||||||
UTILITIES 0.5% | ||||||||||||
AT&T, Inc. |
| |||||||||||
2.309% (US0003M + 0.950%) due 07/15/2021 ~ | 158 | 160 | ||||||||||
2.850% due 02/14/2023 | 30 | 30 | ||||||||||
3.400% due 08/14/2024 | 60 | 60 | ||||||||||
3.900% due 08/14/2027 | 50 | 51 | ||||||||||
4.900% due 08/14/2037 | 50 | 51 | ||||||||||
5.150% due 02/14/2050 | 76 | 77 | ||||||||||
5.300% due 08/14/2058 | 22 | 22 | ||||||||||
5.650% due 02/15/2047 | 6 | 7 | ||||||||||
Calpine Corp. |
| |||||||||||
5.250% due 06/01/2026 | 4 | 4 | ||||||||||
Genesis Energy LP |
| |||||||||||
6.250% due 05/15/2026 | 4 | 4 | ||||||||||
Kinder Morgan Finance Co. LLC |
| |||||||||||
6.000% due 01/15/2018 | 800 | 801 | ||||||||||
Sprint Communications, Inc. |
| |||||||||||
7.000% due 08/15/2020 | 310 | 329 | ||||||||||
Verizon Communications, Inc. |
| |||||||||||
5.250% due 03/16/2037 | 50 | 55 | ||||||||||
4.125% due 03/16/2027 | 10 | 11 | ||||||||||
|
| |||||||||||
1,662 | ||||||||||||
|
| |||||||||||
Total United States |
| 9,175 | ||||||||||
|
| |||||||||||
VENEZUELA 0.0% | ||||||||||||
INDUSTRIALS 0.0% | ||||||||||||
Petroleos de Venezuela S.A. |
| |||||||||||
6.000% due 11/15/2026 | 300 | 67 | ||||||||||
6.000% due 05/16/2024 | 20 | 5 | ||||||||||
|
| |||||||||||
72 | ||||||||||||
|
| |||||||||||
Total Venezuela | 72 | |||||||||||
|
| |||||||||||
Total Corporate Bonds & Notes (Cost $23,181) |
| 23,437 | ||||||||||
|
| |||||||||||
NON-AGENCY MORTGAGE-BACKED SECURITIES 3.5% | ||||||||||||
UNITED KINGDOM 0.8% | ||||||||||||
Eurosail PLC |
| |||||||||||
1.470% (BP0003M + 0.950%) due 06/13/2045 ~ | GBP | 1,124 | 1,510 | |||||||||
Grifonas Finance PLC |
| |||||||||||
0.008% (EUR006M + 0.280%) due 08/28/2039 ~ | EUR | 403 | 421 | |||||||||
Juno Eclipse Ltd. |
| |||||||||||
0.000% due 11/20/2022 • | 259 | 309 | ||||||||||
RMAC PLC |
| |||||||||||
0.762% (BP0003M + 0.240%) due 06/12/2036 ~ | GBP | 288 | 389 | |||||||||
|
| |||||||||||
Total United Kingdom | 2,629 | |||||||||||
|
| |||||||||||
UNITED STATES 2.7% | ||||||||||||
Banc of America Alternative Loan Trust |
| |||||||||||
6.000% due 04/25/2036 ^ | $ | 51 | 52 | |||||||||
6.000% due 07/25/2046 ^ | 110 | 98 | ||||||||||
Banc of America Funding Trust |
| |||||||||||
3.444% due 05/20/2036 ^~ | 22 | 21 | ||||||||||
Banc of America Mortgage Trust |
| |||||||||||
3.669% due 11/20/2046 ^~ | 9 | 8 | ||||||||||
6.000% due 10/25/2036 ^ | 27 | 25 | ||||||||||
Bear Stearns Mortgage Funding Trust |
| |||||||||||
7.500% due 08/25/2036 | 130 | 133 | ||||||||||
Chase Mortgage Finance Trust |
| |||||||||||
3.614% due 09/25/2036 ^~ | 60 | 60 |
See Accompanying Notes | SEMIANNUAL REPORT | DECEMBER 31, 2017 | 27 |
Table of Contents
Schedule of Investments PIMCO Dividend and Income Fund (Cont.)
PRINCIPAL AMOUNT (000S) | MARKET VALUE (000S) | |||||||||||
Countrywide Alternative Loan Trust |
| |||||||||||
2.252% (US0001M + 0.700%) due 10/25/2037 ^~ | $ | 5,405 | $ | 1,924 | ||||||||
6.000% due 06/25/2036 ^ | 161 | 138 | ||||||||||
6.000% due 02/25/2037 ^ | 77 | 53 | ||||||||||
6.250% (US0001M + 0.650%) due 12/25/2036 ^~ | 32 | 25 | ||||||||||
Countrywide Home Loan Mortgage Pass-Through Trust |
| |||||||||||
2.052% (US0001M + 0.500%) due 07/25/2037 ^~ | 25 | 16 | ||||||||||
Credit Suisse First Boston Mortgage Securities Corp. |
| |||||||||||
6.000% due 01/25/2036 | 48 | 43 | ||||||||||
Credit Suisse First Boston Mortgage-Backed Pass-through Trust |
| |||||||||||
6.000% due 11/25/2035 ^ | 21 | 13 | ||||||||||
Credit Suisse Mortgage Capital Certificates |
| |||||||||||
3.191% due 12/29/2037 ~ | 197 | 164 | ||||||||||
First Horizon Alternative Mortgage Securities Trust |
| |||||||||||
3.342% due 06/25/2036 ~ | 477 | 443 | ||||||||||
HSI Asset Loan Obligation Trust |
| |||||||||||
6.000% due 06/25/2037 ^ | 12 | 11 | ||||||||||
JPMorgan Alternative Loan Trust |
| |||||||||||
5.656% due 05/26/2037 ~« | 100 | 86 | ||||||||||
JPMorgan Mortgage Trust |
| |||||||||||
6.500% due 07/25/2036 ^ | 118 | 92 | ||||||||||
Merrill Lynch Mortgage Investors Trust |
| |||||||||||
3.280% due 03/25/2036 ^~ | 18 | 14 | ||||||||||
Residential Accredit Loans, Inc. Trust |
| |||||||||||
1.952% (US0001M + 0.400%) due 10/25/2045 ~ | 123 | 112 | ||||||||||
5.500% due 03/25/2037 | 572 | 514 | ||||||||||
6.250% due 03/25/2037 ^ | 43 | 38 | ||||||||||
Structured Adjustable Rate Mortgage Loan Trust |
| |||||||||||
3.496% due 10/25/2036 ^~ | 2,894 | 2,438 | ||||||||||
Wells Fargo Alternative Loan Trust |
| |||||||||||
3.682% due 07/25/2037 ^~ | 1,491 | 1,391 | ||||||||||
Wells Fargo Commercial Mortgage Trust |
| |||||||||||
3.412% due 09/15/2058 | 1,156 | 1,190 | ||||||||||
|
| |||||||||||
Total United States | 9,102 | |||||||||||
|
| |||||||||||
Total Non-Agency Mortgage-Backed Securities (Cost $11,951) |
| 11,731 | ||||||||||
|
| |||||||||||
MUNICIPAL BONDS & NOTES 0.6% | ||||||||||||
CALIFORNIA 0.2% | ||||||||||||
California State Public Works Board Revenue Notes, Series 2011 |
| |||||||||||
5.786% due 12/01/2021 | 617 | 661 | ||||||||||
|
| |||||||||||
Total California | 661 | |||||||||||
|
| |||||||||||
ILLINOIS 0.1% | ||||||||||||
Illinois State General Obligation Bonds, (BABs), Series 2010 |
| |||||||||||
6.630% due 02/01/2035 | 15 | 17 | ||||||||||
7.350% due 07/01/2035 | 5 | 6 | ||||||||||
Illinois State General Obligation Bonds, Series 2003 |
| |||||||||||
5.100% due 06/01/2033 | 150 | 150 | ||||||||||
|
| |||||||||||
Total Illinois | 173 | |||||||||||
|
| |||||||||||
MICHIGAN 0.1% | ||||||||||||
Michigan Tobacco Settlement Finance Authority Revenue Bonds, Series 2006 |
| |||||||||||
7.309% due 06/01/2034 | 215 | 215 | ||||||||||
|
| |||||||||||
Total Michigan | 215 | |||||||||||
|
| |||||||||||
PUERTO RICO 0.0% | ||||||||||||
Commonwealth of Puerto Rico General Obligation Bonds, Series 2001 |
| |||||||||||
5.125% due 07/01/2031 ^(b) | 30 | 7 |
PRINCIPAL AMOUNT (000S) | MARKET VALUE (000S) | |||||||||||
Commonwealth of Puerto Rico General Obligation Bonds, Series 2007 |
| |||||||||||
5.250% due 07/01/2034 ^(b) | $ | 5 | $ | 1 | ||||||||
5.250% due 07/01/2037 ^(b) | 5 | 1 | ||||||||||
Commonwealth of Puerto Rico General Obligation Bonds, Series 2008 |
| |||||||||||
5.500% due 07/01/2032 ^(b) | 20 | 5 | ||||||||||
5.700% due 07/01/2023 ^(b) | 10 | 2 | ||||||||||
Commonwealth of Puerto Rico General Obligation Bonds, Series 2009 |
| |||||||||||
6.000% due 07/01/2039 ^(b) | 5 | 1 | ||||||||||
Commonwealth of Puerto Rico General Obligation Bonds, Series 2011 |
| |||||||||||
5.375% due 07/01/2030 ^(b) | 10 | 2 | ||||||||||
Commonwealth of Puerto Rico General Obligation Bonds, Series 2012 |
| |||||||||||
5.000% due 07/01/2041 ^(b) | 120 | 27 | ||||||||||
5.125% due 07/01/2037 ^(b) | 10 | 2 | ||||||||||
5.500% due 07/01/2039 ^(b) | 125 | 29 | ||||||||||
Commonwealth of Puerto Rico General Obligation Notes, Series 2012 |
| |||||||||||
5.000% due 07/01/2021 ^(b) | 10 | 2 | ||||||||||
Puerto Rico Electric Power Authority Revenue Bonds, (BABs), Series 2010 |
| |||||||||||
6.125% due 07/01/2040 ^(b) | 100 | 33 | ||||||||||
|
| |||||||||||
Total Puerto Rico | 112 | |||||||||||
|
| |||||||||||
VIRGINIA 0.1% | ||||||||||||
Tobacco Settlement Financing Corp., Virginia Revenue Bonds, Series 2007 |
| |||||||||||
6.706% due 06/01/2046 | 385 | 348 | ||||||||||
|
| |||||||||||
Total Virginia | 348 | |||||||||||
|
| |||||||||||
WEST VIRGINIA 0.1% | ||||||||||||
Tobacco Settlement Finance Authority, West Virginia Revenue Bonds, Series 2007 |
| |||||||||||
7.467% due 06/01/2047 | 360 | 351 | ||||||||||
|
| |||||||||||
Total West Virginia | 351 | |||||||||||
|
| |||||||||||
Total Municipal Bonds & Notes (Cost $1,745) |
| 1,860 | ||||||||||
|
| |||||||||||
SHARES | ||||||||||||
PREFERRED STOCKS 0.6% | ||||||||||||
GERMANY 0.6% | ||||||||||||
CONSUMER DISCRETIONARY 0.6% | ||||||||||||
Volkswagen AG | 10,793 | 2,144 | ||||||||||
|
| |||||||||||
Total Preferred Stocks (Cost $1,501) |
| 2,144 | ||||||||||
|
| |||||||||||
REAL ESTATE INVESTMENT TRUSTS 0.4% | ||||||||||||
CANADA 0.1% | ||||||||||||
REAL ESTATE 0.1% | ||||||||||||
Cominar Real Estate Investment Trust | 5,124 | 59 | ||||||||||
Dream Office Real Estate Investment Trust | 14,726 | 259 | ||||||||||
|
| |||||||||||
318 | ||||||||||||
|
| |||||||||||
Total Canada | 318 | |||||||||||
|
| |||||||||||
UNITED STATES 0.3% | ||||||||||||
FINANCIALS 0.2% | ||||||||||||
AGNC Investment Corp. | 11,539 | 233 | ||||||||||
Annaly Capital Management, Inc. | 32,674 | 388 | ||||||||||
Granite Point Mortgage Trust, Inc. | 1,521 | 27 | ||||||||||
Two Harbors Investment Corp. | 5,342 | 87 | ||||||||||
|
| |||||||||||
735 | ||||||||||||
|
|
SHARES | MARKET VALUE (000S) | |||||||||||
REAL ESTATE 0.1% | ||||||||||||
CoreCivic, Inc. | 6,119 | $ | 138 | |||||||||
Iron Mountain, Inc. | 4,896 | 185 | ||||||||||
|
| |||||||||||
323 | ||||||||||||
|
| |||||||||||
Total United States | 1,058 | |||||||||||
|
| |||||||||||
Total Real Estate Investment Trusts (Cost $1,355) |
| 1,376 | ||||||||||
|
| |||||||||||
PRINCIPAL AMOUNT (000S) | ||||||||||||
SOVEREIGN ISSUES 0.9% | ||||||||||||
ARGENTINA 0.3% | ||||||||||||
Argentina Government International Bond |
| |||||||||||
2.260% due 12/31/2038 | EUR | 124 | 109 | |||||||||
7.820% due 12/31/2033 | 76 | 106 | ||||||||||
25.413% (BADLARPP + 2.000%) due 04/03/2022 ~ | ARS | 2,218 | 119 | |||||||||
26.555% (BADLARPP + 3.250%) due 03/01/2020 ~ | 400 | 22 | ||||||||||
28.750% (ARPP7DRR) due 06/21/2020 ~ | 8,883 | 507 | ||||||||||
|
| |||||||||||
Total Argentina | 863 | |||||||||||
|
| |||||||||||
BRAZIL 0.2% | ||||||||||||
Brazil Notas do Tesouro Nacional |
| |||||||||||
6.000% due 05/15/2045 (f) | BRL | 1,518 | 491 | |||||||||
|
| |||||||||||
Total Brazil | 491 | |||||||||||
|
| |||||||||||
GREECE 0.1% | ||||||||||||
Republic of Greece Government International Bond |
| |||||||||||
4.750% due 04/17/2019 | EUR | 100 | 125 | |||||||||
|
| |||||||||||
Total Greece | 125 | |||||||||||
|
| |||||||||||
KUWAIT 0.1% | ||||||||||||
Kuwait International Government Bond |
| |||||||||||
3.500% due 03/20/2027 | $ | 385 | 392 | |||||||||
|
| |||||||||||
Total Kuwait | 392 | |||||||||||
|
| |||||||||||
PERU 0.0% | ||||||||||||
Peru Government International Bond |
| |||||||||||
6.150% due 08/12/2032 | PEN | 260 | 86 | |||||||||
6.900% due 08/12/2037 | 7 | 2 | ||||||||||
6.950% due 08/12/2031 | 100 | 35 | ||||||||||
|
| |||||||||||
Total Peru | 123 | |||||||||||
|
| |||||||||||
SAUDI ARABIA 0.2% | ||||||||||||
Saudi Government International Bond |
| |||||||||||
2.875% due 03/04/2023 | $ | 200 | 197 | |||||||||
3.625% due 03/04/2028 | 200 | 198 | ||||||||||
4.500% due 10/26/2046 | 200 | 200 | ||||||||||
4.625% due 10/04/2047 | 200 | 205 | ||||||||||
|
| |||||||||||
Total Saudi Arabia | 800 | |||||||||||
|
| |||||||||||
SPAIN 0.0% | ||||||||||||
Autonomous Community of Catalonia |
| |||||||||||
4.750% due 06/04/2018 | EUR | 3 | 4 | |||||||||
4.900% due 09/15/2021 | 50 | 63 | ||||||||||
|
| |||||||||||
Total Spain | 67 | |||||||||||
|
| |||||||||||
SWEDEN 0.0% | ||||||||||||
Sweden Government International Bond |
| |||||||||||
0.875% due 01/31/2018 | 100 | 120 | ||||||||||
|
| |||||||||||
Total Sweden | 120 | |||||||||||
|
| |||||||||||
28 | PIMCO EQUITY SERIES | See Accompanying Notes |
Table of Contents
December 31, 2017 (Unaudited)
PRINCIPAL AMOUNT (000S) | MARKET VALUE (000S) | |||||||||||
VENEZUELA 0.0% | ||||||||||||
Venezuela Government International Bond |
| |||||||||||
6.000% due 12/09/2020 ^ | $ | 100 | $ | 23 | ||||||||
9.250% due 09/15/2027 | 44 | 10 | ||||||||||
|
| |||||||||||
Total Venezuela | 33 | |||||||||||
|
| |||||||||||
Total Sovereign Issues (Cost $3,118) |
| 3,014 | ||||||||||
|
| |||||||||||
U.S. GOVERNMENT AGENCIES 4.2% | ||||||||||||
UNITED STATES 4.2% | ||||||||||||
Fannie Mae |
| |||||||||||
3.000% due 11/01/2029 | 29 | 30 | ||||||||||
Fannie Mae, TBA |
| |||||||||||
2.500% due 02/01/2033 | 1,000 | 998 | ||||||||||
3.000% due 01/01/2048 | 1,300 | 1,301 | ||||||||||
3.500% due 03/01/2048 | 3,500 | 3,584 | ||||||||||
4.000% due 03/01/2048 | 6,000 | 6,261 | ||||||||||
Freddie Mac, TBA |
| |||||||||||
3.000% due 02/01/2048 | 2,000 | 1,999 | ||||||||||
|
| |||||||||||
Total U.S. Government Agencies (Cost $14,127) | 14,173 | |||||||||||
|
| |||||||||||
U.S. TREASURY OBLIGATIONS 7.2% | ||||||||||||
UNITED STATES 7.2% | ||||||||||||
U.S. Treasury Bonds |
| |||||||||||
2.875% due 11/15/2046 | 1,000 | 1,025 | ||||||||||
U.S. Treasury Notes |
| |||||||||||
1.750% due 03/31/2022 | 300 | 295 | ||||||||||
1.750% due 05/15/2022 | 300 | 295 | ||||||||||
1.750% due 09/30/2022 | 500 | 490 | ||||||||||
1.750% due 05/15/2023 | 700 | 683 | ||||||||||
1.875% due 01/31/2022 | 1,600 | 1,584 | ||||||||||
1.875% due 02/28/2022 | 1,400 | 1,385 | ||||||||||
1.875% due 08/31/2022 | 500 | 493 | ||||||||||
1.875% due 08/31/2024 | 200 | 195 | ||||||||||
2.000% due 07/31/2022 | 400 | 397 |
PRINCIPAL AMOUNT (000S) | MARKET VALUE (000S) | |||||||||||
2.000% due 05/31/2024 | $ | 200 | $ | 196 | ||||||||
2.000% due 06/30/2024 | 4,300 | 4,217 | ||||||||||
2.000% due 11/15/2026 | 760 | 735 | ||||||||||
2.125% due 12/31/2021 (k) | 1,500 | 1,500 | ||||||||||
2.125% due 06/30/2022 | 1,000 | 998 | ||||||||||
2.125% due 02/29/2024 | 400 | 396 | ||||||||||
2.125% due 07/31/2024 | 400 | 395 | ||||||||||
2.250% due 12/31/2023 | 3,610 | 3,603 | ||||||||||
2.250% due 01/31/2024 | 190 | 190 | ||||||||||
2.250% due 10/31/2024 (k) | 3,500 | 3,484 | ||||||||||
2.250% due 11/15/2024 | 300 | 298 | ||||||||||
2.250% due 02/15/2027 | 500 | 493 | ||||||||||
2.375% due 05/15/2027 (k) | 470 | 469 | ||||||||||
2.500% due 05/15/2024 | 500 | 506 | ||||||||||
|
| |||||||||||
Total U.S. Treasury Obligations (Cost $24,388) | 24,322 | |||||||||||
|
| |||||||||||
SHORT-TERM INSTRUMENTS 0.6% | ||||||||||||
CERTIFICATES OF DEPOSIT 0.1% | ||||||||||||
Barclays Bank PLC |
| |||||||||||
1.940% due 09/04/2018 | 300 | 300 | ||||||||||
|
| |||||||||||
REPURCHASE AGREEMENTS (j) 0.1% | ||||||||||||
186 | ||||||||||||
|
| |||||||||||
FRANCE TREASURY BILLS 0.0% | ||||||||||||
(1.107)% due 01/17/2018 - 01/31/2018 (d)(e) | EUR | 120 | 144 | |||||||||
|
| |||||||||||
JAPAN TREASURY BILLS 0.2% | ||||||||||||
(0.298)% due 01/15/2018 - 04/05/2018 (d)(e) | JPY | 94,750 | 841 | |||||||||
|
| |||||||||||
U.K. TREASURY BILLS 0.1% | ||||||||||||
(0.097)% due 01/22/2018 - 01/29/2018 (d)(e) | GBP | 226 | 305 | |||||||||
|
|
PRINCIPAL AMOUNT (000S) | MARKET VALUE (000S) | |||||||||||
ARGENTINA TREASURY BILLS 0.1% | ||||||||||||
24.734% due 01/26/2018 - 07/13/2018 (d)(e) | $ | 207 | $ | 206 | ||||||||
24.734% due 03/16/2018 - 09/14/2018 (d)(e) | ARS | 5,176 | 236 | |||||||||
|
| |||||||||||
Total Argentina Treasury Bills | 442 | |||||||||||
|
| |||||||||||
Total Short-Term Instruments (Cost $2,222) | 2,218 | |||||||||||
|
| |||||||||||
Total Investments in Securities (Cost $318,071) | 356,613 | |||||||||||
|
| |||||||||||
SHARES | ||||||||||||
INVESTMENTS IN AFFILIATES 1.6% | ||||||||||||
SHORT-TERM INSTRUMENTS 1.6% | ||||||||||||
CENTRAL FUNDS USED FOR CASH MANAGEMENT PURPOSES 1.6% | ||||||||||||
PIMCO Short-Term | 536,087 | 5,299 | ||||||||||
|
| |||||||||||
Total Short-Term Instruments (Cost $5,297) | 5,299 | |||||||||||
|
| |||||||||||
Total Investments in Affiliates (Cost $5,297) | 5,299 | |||||||||||
Total Investments 106.8% (Cost $323,368) | $ | 361,912 | ||||||||||
Financial Derivative (Cost or Premiums, net $(200)) | (96 | ) | ||||||||||
Other Assets and Liabilities, net (6.8)% | (22,878 | ) | ||||||||||
|
| |||||||||||
Net Assets 100.0% | $ | 338,938 | ||||||||||
|
|
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. |
« | Security valued using significant unobservable inputs (Level 3). |
~ | Variable or Floating rate security. Rate shown is the rate in effect as of period end. Certain variable rate securities are not based on a published reference rate and spread, rather are determined by the issuer or agent and are based on current market conditions. Reference rate is as of reset date, which may vary by security. These securities may not indicate a reference rate and/or spread in their description. |
• | Rate shown is the rate in effect as of period end. The rate may be based on a fixed rate, a capped rate or a floor rate and may convert to a variable or floating rate in the future. These securities do not indicate a reference rate and spread in their description. |
(a) | Payment in-kind security. |
(b) | Security is not accruing income as of the date of this report. |
(c) | Security did not produce income within the last twelve months. |
(d) | Coupon represents a weighted average yield to maturity. |
(e) | Zero coupon security. |
(f) | Principal amount of security is adjusted for inflation. |
(g) | Perpetual maturity; date shown, if applicable, represents next contractual call date. |
(h) | Contingent convertible security. |
See Accompanying Notes | SEMIANNUAL REPORT | DECEMBER 31, 2017 | 29 |
Table of Contents
Schedule of Investments PIMCO Dividend and Income Fund (Cont.)
BORROWINGS AND OTHER FINANCING TRANSACTIONS
(i) RESTRICTED SECURITIES:
Issuer Description | Acquisition Date | Cost | Market Value | Market Value as Percentage of Net Assets | ||||||||||
Dommo Energia S.A. | 12/21/2017 - 12/26/2017 | $ | 9 | $ | 12 | 0.00% | ||||||||
Eneva S.A. | 12/21/2017 | 1 | 1 | 0.00 | ||||||||||
|
|
|
|
|
| |||||||||
$ | 2,169 | $ | 1,935 | 0.00% | ||||||||||
|
|
|
|
|
|
(j) REPURCHASE AGREEMENTS:
Counterparty | Lending Rate | Settlement Date | Maturity Date | Principal Amount | Collateralized By | Collateral (Received) | Repurchase Agreements, at Value | Repurchase Agreement Proceeds to be Received(1) | ||||||||||||||||||||||
FICC | 0.700 | % | 12/29/2017 | 01/02/2018 | $ | 186 | U.S. Treasury Notes 2.750% due 02/15/2024 | $ | (191 | ) | $ | 186 | $ | 186 | ||||||||||||||||
|
|
|
|
|
| |||||||||||||||||||||||||
Total Repurchase Agreements |
| $ | (191 | ) | $ | 186 | $ | 186 | ||||||||||||||||||||||
|
|
|
|
|
|
REVERSE REPURCHASE AGREEMENTS:
Counterparty | Borrowing Rate(2) | Settlement Date | Maturity Date | Amount Borrowed(2) | Payable for Reverse Repurchase Agreements | |||||||||||||||
BOS | 1.430 | % | 11/09/2017 | 02/09/2018 | $ | (1,604 | ) | $ | (1,607 | ) | ||||||||||
BSN | 1.340 | 11/03/2017 | 01/03/2018 | (4,380 | ) | (4,390 | ) | |||||||||||||
SCX | 1.510 | 11/21/2017 | 02/21/2018 | (299 | ) | (300 | ) | |||||||||||||
1.520 | 11/22/2017 | 02/22/2018 | (100 | ) | (100 | ) | ||||||||||||||
1.650 | 12/14/2017 | 01/16/2018 | (2,727 | ) | (2,729 | ) | ||||||||||||||
|
| |||||||||||||||||||
Total Reverse Repurchase Agreements |
| $ | (9,126 | ) | ||||||||||||||||
|
|
SALE-BUYBACK TRANSACTIONS:
Counterparty | Borrowing Rate(2) | Borrowing Date | Maturity Date | Amount Borrowed(2) | Payable for Sale-Buyback Transactions(3) | |||||||||||||||
GSC | 1.660 | % | 12/12/2017 | 01/12/2018 | $ | (4,909 | ) | $ | (4,907 | ) | ||||||||||
UBS | 1.370 | 11/10/2017 | 02/07/2018 | (474 | ) | (473 | ) | |||||||||||||
|
| |||||||||||||||||||
Total Sale-Buyback Transactions |
| $ | (5,380 | ) | ||||||||||||||||
|
|
SHORT SALES:
Description | Coupon | Maturity Date | Principal Amount | Proceeds | Payable for Short Sales | |||||||||||
U.S. Government Agencies (0.9)% | ||||||||||||||||
Fannie Mae, TBA | 3.000% | 01/01/2048 | $ | 3,000 | $ | (2,989 | ) | $ (3,001) | ||||||||
|
|
| ||||||||||||||
Total Short Sales (0.9)% | $ | (2,989 | ) | $ (3,001) | ||||||||||||
|
|
|
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 pledged/(received) as of December 31, 2017:
Counterparty | Repurchase Agreement Proceeds to be Received(1) | Payable for Reverse Repurchase Agreements | Payable for Sale-Buyback Transactions | Total Borrowings and Other Financing Transactions | Collateral Pledged/(Received) | Net Exposure(4) | ||||||||||||||||||
Global/Master Repurchase Agreement |
| |||||||||||||||||||||||
BOS | $ | 0 | $ | (1,607 | ) | $ | 0 | $ | (1,607 | ) | $ | 1,583 | $ | (24 | ) | |||||||||
BSN | 0 | (4,390 | ) | 0 | (4,390 | ) | 4,317 | (73 | ) | |||||||||||||||
FICC | 186 | 0 | 0 | 186 | (191 | ) | (5 | ) | ||||||||||||||||
SCX | 0 | (3,129 | ) | 0 | (3,129 | ) | 3,091 | (38 | ) | |||||||||||||||
Master Securities Forward Transaction Agreement |
| |||||||||||||||||||||||
GSC | 0 | 0 | (4,907 | ) | (4,907 | ) | 4,884 | (23 | ) | |||||||||||||||
UBS | 0 | 0 | (473 | ) | (473 | ) | 469 | (4 | ) | |||||||||||||||
|
|
|
|
|
| |||||||||||||||||||
Total Borrowings and Other Financing Transactions | $ | 186 | $ | (9,126 | ) | $ | (5,380 | ) | ||||||||||||||||
|
|
|
|
|
|
30 | PIMCO EQUITY SERIES | See Accompanying Notes |
Table of Contents
December 31, 2017 (Unaudited)
CERTAIN TRANSFERS ACCOUNTED FOR AS SECURED BORROWINGS
Remaining Contractual Maturity of the Agreements
Overnight and Continuous | Up to 30 days | 31-90 days | Greater Than 90 days | Total | ||||||||||||||||
Reverse Repurchase Agreements |
| |||||||||||||||||||
U.S. Treasury Obligations | $ | 0 | $ | (7,119 | ) | $ | (2,007 | ) | $ | 0 | $ | (9,126 | ) | |||||||
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|
|
|
|
|
|
|
|
| |||||||||||
Total | $ | 0 | $ | (7,119 | ) | $ | (2,007 | ) | $ | 0 | $ | (9,126 | ) | |||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Sale-Buyback Transactions |
| |||||||||||||||||||
U.S. Treasury Obligations | 0 | (4,907 | ) | (473 | ) | 0 | (5,380 | ) | ||||||||||||
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|
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|
| |||||||||||
Total | $ | 0 | $ | (4,907 | ) | $ | (473 | ) | $ | 0 | $ | (5,380 | ) | |||||||
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|
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|
|
|
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|
| |||||||||||
Total Borrowings | $ | 0 | $ | (12,026 | ) | $ | (2,480 | ) | $ | 0 | $ | (14,506 | ) | |||||||
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|
|
| |||||||||||
Payable for reverse repurchase agreements and sale-buyback financing transactions |
| $ | (14,506 | ) | ||||||||||||||||
|
|
(k) | Securities with an aggregate market value of $14,344 have been pledged as collateral under the terms of the above master agreements as of December 31, 2017. |
(1) | Includes accrued interest. |
(2) | The average amount of borrowings outstanding during the period ended December 31, 2017 was $(9,766) at a weighted average interest rate of 0.558%. Average borrowings may include sale-buyback transactions and reverse repurchase agreements, if held during the period. |
(3) | Payable for sale-buyback transactions includes $(3) of deferred price drop. |
(4) | 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 8, Master Netting Arrangements, in the Notes to Financial Statements for more information regarding master netting arrangements. |
(l) FINANCIAL DERIVATIVE INSTRUMENTS: EXCHANGE-TRADED OR CENTRALLY CLEARED
FUTURES CONTRACTS:
LONG FUTURES CONTRACTS
Description | Expiration Month | # of Contracts | Notional Amount | Unrealized Appreciation/ (Depreciation) | Variation Margin | |||||||||||||||||||||
Asset | Liability | |||||||||||||||||||||||||
Australia Government 10-Year Bond March Futures | 03/2018 | 2 | AUD | 202 | $ | (1 | ) | $ | 1 | $ | 0 | |||||||||||||||
U.S. Treasury 10-Year Note March Futures | 03/2018 | 16 | $ | 1,985 | (11 | ) | 3 | 0 | ||||||||||||||||||
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|
|
|
|
| |||||||||||||||||||||
Total Futures Contracts |
| $ | (12 | ) | $ | 4 | $ | 0 | ||||||||||||||||||
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|
|
|
|
|
SWAP AGREEMENTS:
CREDIT DEFAULT SWAPS ON CORPORATE ISSUES - SELL PROTECTION(1)
Reference Entity | Fixed Receive Rate | Payment Frequency | Maturity Date | Implied Credit Spread at December 31, 2017(3) | Notional Amount(4) | Premiums Paid/(Received) | Unrealized Appreciation/ (Depreciation) | Market Value(5) | Variation Margin | |||||||||||||||||||||||||||||
Asset | Liability | |||||||||||||||||||||||||||||||||||||
Ally Financial, Inc. | 5.000% | Quarterly | 12/20/2022 | 1.031% | $ 300 | $ | 51 | $ | 5 | $ | 56 | $ | 0 | $ | 0 | |||||||||||||||||||||||
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|
|
|
|
|
|
|
|
|
CREDIT DEFAULT SWAPS ON CREDIT INDICES - BUY PROTECTION(2)
Index/Tranches | Fixed (Pay) Rate | Payment Frequency | Maturity Date | Notional Amount(4) | Premiums Paid/(Received) | Unrealized Appreciation/ (Depreciation) | Market Value(5) | Variation Margin | ||||||||||||||||||||||||||
Asset | Liability | |||||||||||||||||||||||||||||||||
CDX.HY-29 5-Year Index | (5.000 | )% | Quarterly | 12/20/2022 | $ | 2,150 | $ | (165 | ) | $ | (17 | ) | $ | (182 | ) | $ | 0 | $ | (3 | ) | ||||||||||||||
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|
|
|
|
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|
|
INTEREST RATE SWAPS
Pay/Receive Floating Rate | Floating Rate Index | Fixed Rate | Payment Frequency | Maturity Date | Notional Amount | Premiums Paid/(Received) | Unrealized Appreciation/ (Depreciation) | Market Value | Variation Margin | |||||||||||||||||||||||||||||||
Asset | Liability | |||||||||||||||||||||||||||||||||||||||
Pay | 3-Month USD-LIBOR | 2.000 | % | Semi-Annual | 12/07/2022 | $ | 1,200 | $ | (2 | ) | $ | (11 | ) | $ | (13 | ) | $ | 1 | $ | 0 | ||||||||||||||||||||
Receive(6) | 3-Month USD-LIBOR | 2.250 | Semi-Annual | 06/20/2028 | 5,500 | 123 | (28 | ) | 95 | 0 | (11 | ) | ||||||||||||||||||||||||||||
Receive(6) | 3-Month USD-LIBOR | 2.500 | Semi-Annual | 06/20/2048 | 1,000 | 38 | (19 | ) | 19 | 0 | (4 | ) | ||||||||||||||||||||||||||||
Pay(6) | 3-Month ZAR-JIBAR | 7.000 | Quarterly | 03/22/2023 | ZAR | 900 | 0 | (1 | ) | (1 | ) | 0 | 0 | |||||||||||||||||||||||||||
Receive | 3-Month ZAR-JIBAR | 8.300 | Quarterly | 03/15/2027 | 600 | (2 | ) | 1 | (1 | ) | 0 | 0 | ||||||||||||||||||||||||||||
Pay | 6-Month AUD-BBR-BBSW | 2.750 | Semi-Annual | 06/17/2026 | AUD | 7,000 | 254 | (244 | ) | 10 | 24 | 0 | ||||||||||||||||||||||||||||
Pay | 6-Month AUD-BBR-BBSW | 3.000 | Semi-Annual | 03/21/2027 | 1,190 | 20 | 1 | 21 | 5 | 0 |
See Accompanying Notes | SEMIANNUAL REPORT | DECEMBER 31, 2017 | 31 |
Table of Contents
Schedule of Investments PIMCO Dividend and Income Fund (Cont.)
Pay/Receive Floating Rate | Floating Rate Index | Fixed Rate | Payment Frequency | Maturity Date | Notional Amount | Premiums Paid/(Received) | Unrealized Appreciation/ (Depreciation) | Market Value | Variation Margin | |||||||||||||||||||||||||||||||||
Asset | Liability | |||||||||||||||||||||||||||||||||||||||||
Receive(6) | 6-Month EUR-EURIBOR | 1.000 | % | Annual | 03/21/2028 | EUR | 800 | $ | (4 | ) | $ | (3 | ) | $ | (7 | ) | $ | 2 | $ | 0 | ||||||||||||||||||||||
Receive(6) | 6-Month GBP-LIBOR | 1.500 | Semi-Annual | 03/21/2028 | GBP | 1,793 | (62 | ) | 16 | (46 | ) | 4 | 0 | |||||||||||||||||||||||||||||
Receive(6) | 6-Month JPY-LIBOR | 0.450 | Semi-Annual | 03/20/2029 | JPY | 1,430,000 | (64 | ) | 42 | (22 | ) | 0 | (7 | ) | ||||||||||||||||||||||||||||
Receive(6) | 6-Month JPY-LIBOR | 0.415 | Semi-Annual | 03/25/2029 | 20,000 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||||||||||||||
Receive(6) | 6-Month JPY-LIBOR | 0.400 | Semi-Annual | 03/27/2029 | 40,000 | 0 | 1 | 1 | 0 | 0 | ||||||||||||||||||||||||||||||||
Receive(6) | 6-Month JPY-LIBOR | 0.450 | Semi-Annual | 03/29/2029 | 40,000 | (1 | ) | 0 | (1 | ) | 0 | 0 | ||||||||||||||||||||||||||||||
Pay | 28-Day MXN-TIIE | 5.610 | Lunar | 07/07/2021 | MXN | 700 | (2 | ) | 0 | (2 | ) | 0 | 0 | |||||||||||||||||||||||||||||
Pay | 28-Day MXN-TIIE | 6.750 | Lunar | 08/31/2021 | 2,000 | (1 | ) | (3 | ) | (4 | ) | 0 | 0 | |||||||||||||||||||||||||||||
Pay | 28-Day MXN-TIIE | 5.798 | Lunar | 09/06/2021 | 2,500 | (8 | ) | (1 | ) | (9 | ) | 1 | 0 | |||||||||||||||||||||||||||||
Pay | 28-Day MXN-TIIE | 7.350 | Lunar | 11/17/2021 | 600 | 0 | (1 | ) | (1 | ) | 0 | 0 | ||||||||||||||||||||||||||||||
Pay | 28-Day MXN-TIIE | 7.388 | Lunar | 11/17/2021 | 500 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||||||||||||||
Pay | 28-Day MXN-TIIE | 7.199 | Lunar | 12/03/2021 | 500 | 0 | (1 | ) | (1 | ) | 0 | 0 | ||||||||||||||||||||||||||||||
Pay | 28-Day MXN-TIIE | 7.538 | Lunar | 02/23/2022 | 1,000 | 0 | (1 | ) | (1 | ) | 0 | 0 | ||||||||||||||||||||||||||||||
Receive | 28-Day MXN-TIIE | 6.950 | Lunar | 06/17/2022 | 32,100 | (5 | ) | 62 | 57 | 0 | (7 | ) | ||||||||||||||||||||||||||||||
Pay | 28-Day MXN-TIIE | 7.875 | Lunar | 12/16/2022 | 400 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||||||||||||||
Pay | 28-Day MXN-TIIE | 5.950 | Lunar | 01/30/2026 | 600 | (4 | ) | 0 | (4 | ) | 0 | 0 | ||||||||||||||||||||||||||||||
Pay | 28-Day MXN-TIIE | 5.990 | Lunar | 01/30/2026 | 4,300 | (4 | ) | (22 | ) | (26 | ) | 2 | 0 | |||||||||||||||||||||||||||||
Pay | 28-Day MXN-TIIE | 6.080 | Lunar | 03/10/2026 | 15,500 | (15 | ) | (75 | ) | (90 | ) | 6 | 0 | |||||||||||||||||||||||||||||
Pay | 28-Day MXN-TIIE | 6.490 | Lunar | 09/08/2026 | 30,000 | 13 | (156 | ) | (143 | ) | 13 | 0 | ||||||||||||||||||||||||||||||
Pay | 28-Day MXN-TIIE | 7.380 | Lunar | 11/04/2026 | 100 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||||||||||||||
Pay | 28-Day MXN-TIIE | 8.090 | Lunar | 01/15/2027 | 3,300 | 0 | 2 | 2 | 2 | 0 | ||||||||||||||||||||||||||||||||
Pay | 28-Day MXN-TIIE | 8.120 | Lunar | 01/15/2027 | 700 | 0 | 1 | 1 | 0 | 0 | ||||||||||||||||||||||||||||||||
Pay | 28-Day MXN-TIIE | 7.865 | Lunar | 02/02/2027 | 2,400 | 0 | (1 | ) | (1 | ) | 1 | 0 | ||||||||||||||||||||||||||||||
Pay | 28-Day MXN-TIIE | 8.010 | Lunar | 02/04/2027 | 1,200 | 0 | 0 | 0 | 1 | 0 | ||||||||||||||||||||||||||||||||
Pay | 28-Day MXN-TIIE | 7.818 | Lunar | 02/17/2027 | 1,100 | 0 | (1 | ) | (1 | ) | 1 | 0 | ||||||||||||||||||||||||||||||
Pay | 28-Day MXN-TIIE | 7.150 | Lunar | 06/11/2027 | 1,200 | (1 | ) | (2 | ) | (3 | ) | 1 | 0 | |||||||||||||||||||||||||||||
Pay | 28-Day MXN-TIIE | 7.370 | Lunar | 10/11/2027 | 2,500 | 0 | (5 | ) | (5 | ) | 1 | 0 | ||||||||||||||||||||||||||||||
Receive | 28-Day MXN-TIIE | 7.984 | Lunar | 12/10/2027 | 200 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||||||||||||||
Pay | 28-Day MXN-TIIE | 7.165 | Lunar | 09/06/2032 | 400 | 0 | (2 | ) | (2 | ) | 0 | 0 | ||||||||||||||||||||||||||||||
Pay | 28-Day MXN-TIIE | 7.380 | Lunar | 08/14/2037 | 400 | 0 | (1 | ) | (1 | ) | 0 | 0 | ||||||||||||||||||||||||||||||
Pay | 28-Day MXN-TIIE | 7.360 | Lunar | 08/21/2037 | 700 | 0 | (3 | ) | (3 | ) | 1 | 0 | ||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||||||||||||||||||||||||
$ | 273 | $ | (455 | ) | $ | (182 | ) | $ | 66 | $ | (29 | ) | ||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||||||||||||||||||||||||
Total Swap Agreements |
| $ | 159 | $ | (467 | ) | $ | (308 | ) | $ | 66 | $ | (32 | ) | ||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
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 December 31, 2017:
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 | $ | 4 | $ | 66 | $ | 70 | $ | 0 | $ | 0 | $ | (32) | $ | (32) | ||||||||||||||||||||
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|
|
|
|
|
|
|
|
Cash of $1,068 has been pledged as collateral for exchange-traded and centrally cleared financial derivative instruments as of December 31, 2017. See Note 8, Master Netting Arrangements, in the Notes to Financial Statements for more information regarding master netting arrangements.
(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, securities or other deliverable obligations equal to the notional amount of the swap less the recovery value of the referenced obligation or underlying securities comprising the referenced index. |
(2) | If the Fund is a buyer of protection and a credit event occurs, as defined under the terms of that particular swap agreement, the 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 or underlying securities comprising the referenced index or (ii) receive a net settlement amount in the form of cash, securities or other deliverable obligations equal to the notional amount of the swap less the recovery value of the referenced obligation or underlying securities comprising the referenced index. |
(3) | 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 indicators 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. |
(4) | 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. |
(5) | The prices and resulting values for credit default swap agreements on credit indices serve as indicators 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. |
(6) | This instrument has a forward starting effective date. See Note 2, Securities Transactions and Investment Income, in the Notes to Financial Statements for further information. |
32 | PIMCO EQUITY SERIES | See Accompanying Notes |
Table of Contents
December 31, 2017 (Unaudited)
(m) FINANCIAL DERIVATIVE INSTRUMENTS: OVER THE COUNTER
FORWARD FOREIGN CURRENCY CONTRACTS:
Settlement | Currency to be Delivered | Currency to be Received | Unrealized Appreciation/ (Depreciation) | |||||||||||||||||||||
Counterparty | Asset | Liability | ||||||||||||||||||||||
BOA | 01/2018 | AUD | 2,333 | $ | 1,770 | $ | 0 | $ | (50 | ) | ||||||||||||||
01/2018 | $ | 904 | DKK | 5,676 | 10 | 0 | ||||||||||||||||||
01/2018 | 23 | TRY | 88 | 0 | 0 | |||||||||||||||||||
04/2018 | DKK | 5,676 | $ | 910 | 0 | (10 | ) | |||||||||||||||||
05/2018 | $ | 8 | ARS | 151 | 0 | 0 | ||||||||||||||||||
BPS | 01/2018 | BRL | 91 | $ | 28 | 1 | 0 | |||||||||||||||||
01/2018 | EUR | 2,842 | 3,388 | 0 | (23 | ) | ||||||||||||||||||
01/2018 | MXN | 1,089 | 57 | 2 | 0 | |||||||||||||||||||
01/2018 | $ | 28 | BRL | 91 | 0 | 0 | ||||||||||||||||||
01/2018 | 1,524 | MXN | 28,644 | 0 | (73 | ) | ||||||||||||||||||
01/2018 | 26 | TRY | 100 | 0 | 0 | |||||||||||||||||||
03/2018 | 218 | PEN | 710 | 0 | 0 | |||||||||||||||||||
05/2018 | 24 | ARS | 452 | 0 | (1 | ) | ||||||||||||||||||
BRC | 01/2018 | EUR | 10 | $ | 12 | 0 | 0 | |||||||||||||||||
01/2018 | GBP | 135 | 181 | 0 | (1 | ) | ||||||||||||||||||
04/2018 | JPY | 30,400 | 270 | 0 | (1 | ) | ||||||||||||||||||
CBK | 01/2018 | MXN | 1,092 | 55 | 0 | 0 | ||||||||||||||||||
01/2018 | $ | 16 | ARS | 298 | 0 | (1 | ) | |||||||||||||||||
01/2018 | 94 | AUD | 124 | 3 | 0 | |||||||||||||||||||
01/2018 | 220 | DKK | 1,395 | 4 | 0 | |||||||||||||||||||
01/2018 | 23 | IDR | 314,804 | 0 | 0 | |||||||||||||||||||
01/2018 | 452 | RUB | 26,436 | 6 | 0 | |||||||||||||||||||
01/2018 | 49 | TRY | 187 | 0 | 0 | |||||||||||||||||||
02/2018 | JPY | 44,850 | $ | 397 | 0 | (2 | ) | |||||||||||||||||
03/2018 | $ | 642 | INR | 42,071 | 13 | 0 | ||||||||||||||||||
04/2018 | DKK | 1,395 | $ | 222 | 0 | (4 | ) | |||||||||||||||||
DUB | 01/2018 | BRL | 305 | 94 | 3 | 0 | ||||||||||||||||||
01/2018 | JPY | 5,900 | 52 | 0 | 0 | |||||||||||||||||||
01/2018 | $ | 92 | BRL | 305 | 0 | 0 | ||||||||||||||||||
FBF | 01/2018 | 79 | IDR | 1,069,563 | 0 | 0 | ||||||||||||||||||
GLM | 01/2018 | BRL | 1,530 | $ | 463 | 1 | 0 | |||||||||||||||||
01/2018 | EUR | 18 | 21 | 0 | 0 | |||||||||||||||||||
01/2018 | $ | 28 | ARS | 500 | 0 | (2 | ) | |||||||||||||||||
01/2018 | 459 | BRL | 1,530 | 2 | 0 | |||||||||||||||||||
01/2018 | 15 | IDR | 207,377 | 0 | 0 | |||||||||||||||||||
01/2018 | 2,167 | JPY | 243,600 | 0 | (4 | ) | ||||||||||||||||||
02/2018 | BRL | 1,530 | $ | 457 | 0 | (2 | ) | |||||||||||||||||
JPM | 01/2018 | EUR | 110 | 131 | 0 | (1 | ) | |||||||||||||||||
01/2018 | GBP | 90 | 121 | 0 | (1 | ) | ||||||||||||||||||
01/2018 | $ | 1,348 | TRY | 5,383 | 63 | 0 | ||||||||||||||||||
02/2018 | JPY | 13,600 | $ | 120 | 0 | (1 | ) | |||||||||||||||||
MSB | 01/2018 | BRL | 1,134 | 346 | 5 | 0 | ||||||||||||||||||
01/2018 | $ | 343 | BRL | 1,134 | 0 | (1 | ) | |||||||||||||||||
05/2018 | 13 | ARS | 251 | 0 | (1 | ) | ||||||||||||||||||
NGF | 01/2018 | 108 | 1,991 | 0 | (2 | ) | ||||||||||||||||||
RBC | 01/2018 | AUD | 72 | $ | 56 | 0 | (1 | ) | ||||||||||||||||
SCX | 01/2018 | 137 | 104 | 0 | (3 | ) | ||||||||||||||||||
01/2018 | EUR | 100 | 119 | 0 | (1 | ) | ||||||||||||||||||
01/2018 | JPY | 260,085 | 2,343 | 34 | 0 | |||||||||||||||||||
01/2018 | $ | 443 | GBP | 329 | 2 | 0 | ||||||||||||||||||
01/2018 | 23 | IDR | 308,047 | 0 | 0 | |||||||||||||||||||
01/2018 | 18 | TRY | 71 | 0 | 0 | |||||||||||||||||||
SSB | 01/2018 | 738 | JPY | 83,177 | 0 | 0 | ||||||||||||||||||
UAG | 01/2018 | DKK | 7,710 | $ | 1,231 | 0 | (12 | ) | ||||||||||||||||
01/2018 | GBP | 4,417 | 5,879 | 0 | (86 | ) | ||||||||||||||||||
01/2018 | $ | 93 | DKK | 585 | 2 | 0 | ||||||||||||||||||
01/2018 | 23 | IDR | 313,979 | 0 | 0 | |||||||||||||||||||
|
|
|
| |||||||||||||||||||||
Total Forward Foreign Currency Contracts |
| $ | 151 | $ | (284 | ) | ||||||||||||||||||
|
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|
|
See Accompanying Notes | SEMIANNUAL REPORT | DECEMBER 31, 2017 | 33 |
Table of Contents
Schedule of Investments PIMCO Dividend and Income Fund (Cont.)
WRITTEN OPTIONS:
OPTIONS ON SECURITIES
Counterparty | Description | Strike Price | Expiration Date | Notional Amount | Premiums (Received) | Market Value | ||||||||||||||||
JPM | Call - OTC Fannie Mae, TBA 3.000% due 02/01/2048 | $ | 100.844 | 02/06/2018 | $ 300 | $ | (1 | ) | $ | 0 | ||||||||||||
SAL | Call - OTC Fannie Mae, TBA 3.000% due 02/01/2048 | 100.719 | 02/06/2018 | 200 | 0 | 0 | ||||||||||||||||
Call - OTC Fannie Mae, TBA 3.000% due 02/01/2048 | 100.797 | 02/06/2018 | 300 | (1 | ) | (1 | ) | |||||||||||||||
Call - OTC Fannie Mae, TBA 3.500% due 02/01/2048 | 102.602 | 02/06/2018 | 400 | (1 | ) | (1 | ) | |||||||||||||||
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| |||||||||||||||||||
$ | (3 | ) | $ | (2 | ) | |||||||||||||||||
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| |||||||||||||||||||
Total Written Options | $ | (3 | ) | $ | (2 | ) | ||||||||||||||||
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|
|
SWAP AGREEMENTS:
CREDIT DEFAULT SWAPS ON CORPORATE AND SOVEREIGN ISSUES - SELL PROTECTION(1)
Counterparty | Reference Entity | Fixed Receive Rate | Payment | Maturity | Implied Credit Spread at December 31, 2017(2) | Notional Amount(3) | Premiums | Unrealized Appreciation/ (Depreciation) | Swap Agreements, at Value | |||||||||||||||||||||||||||||
Asset | Liability | |||||||||||||||||||||||||||||||||||||
CBK | Brazil Government International Bond | 1.000 | % | Quarterly | 12/20/2022 | 1.605 | % | $ | 845 | $ | (28 | ) | $ | 4 | $ | 0 | $ | (24 | ) | |||||||||||||||||||
DUB | Argentine Republic Government International Bond | 5.000 | Quarterly | 12/20/2022 | 2.377 | 250 | 30 | 0 | 30 | 0 | ||||||||||||||||||||||||||||
GST | Petrobras Global Finance BV | 1.000 | Quarterly | 12/20/2021 | 1.701 | 200 | (37 | ) | 32 | 0 | (5 | ) | ||||||||||||||||||||||||||
JPM | Mexico Government International Bond | 1.000 | Quarterly | 12/20/2022 | 1.059 | 845 | (3 | ) | 1 | 0 | (2 | ) | ||||||||||||||||||||||||||
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| |||||||||||||||||||||||||||||||
$ | (38 | ) | $ | 37 | $ | 30 | $ | (31 | ) | |||||||||||||||||||||||||||||
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CREDIT DEFAULT SWAPS ON CREDIT INDICES - SELL PROTECTION(1)
Counterparty | Index/Tranches | Fixed | Payment | Maturity | Notional | Premiums | Unrealized Appreciation/ (Depreciation) | Swap Agreements, at Value(4) | ||||||||||||||||||||||||||
Asset | Liability | |||||||||||||||||||||||||||||||||
DUB | CMBX.NA.AAA.9 Index | 0.500 | % | Monthly | 09/17/2058 | $ 2,300 | $ | (128 | ) | $ | 133 | $ | 5 | $ | 0 | |||||||||||||||||||
FBF | CMBX.NA.AAA.9 Index | 0.500 | Monthly | 09/17/2058 | 600 | (24 | ) | 25 | 1 | 0 | ||||||||||||||||||||||||
GST | CMBX.NA.AAA.10 Index | 0.500 | Monthly | 11/17/2059 | 4,000 | (85 | ) | 77 | 0 | (8 | ) | |||||||||||||||||||||||
MYC | CMBX.NA.AAA.9 Index | 0.500 | Monthly | 09/17/2058 | 1,600 | (88 | ) | 91 | 3 | 0 | ||||||||||||||||||||||||
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| |||||||||||||||||||||||||||
$ | (325 | ) | $ | 326 | $ | 9 | $ | (8 | ) | |||||||||||||||||||||||||
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INTEREST RATE SWAPS
Counterparty | Pay/Receive Floating Rate | Floating Rate Index | Fixed Rate | Payment Frequency | Maturity Date | Notional Amount | Premiums Paid/(Received) | Unrealized Appreciation/ (Depreciation) | Swap Agreements, at Value | |||||||||||||||||||||||
Asset | Liability | |||||||||||||||||||||||||||||||
GLM | Receive | 3-Month USD-LIBOR | 2.200 | % | Semi-Annual | 01/18/2023 | $ | 10,000 | $ | 6 | $ | 1 | $ | 7 | $ | 0 | ||||||||||||||||
MYC | Pay | 3-Month USD-LIBOR | 2.050 | Semi-Annual | 01/11/2023 | 3,000 | 1 | (19 | ) | 0 | (18 | ) | ||||||||||||||||||||
Pay | 3-Month USD-LIBOR | 2.490 | Semi-Annual | 01/09/2028 | 2,600 | 0 | 12 | 12 | 0 | |||||||||||||||||||||||
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| |||||||||||||||||||||||||
$ | 7 | $ | (6 | ) | $ | 19 | $ | (18 | ) | |||||||||||||||||||||||
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| |||||||||||||||||||||||||
Total Swap Agreements | $ | (356 | ) | $ | 357 | $ | 58 | $ | (57 | ) | ||||||||||||||||||||||
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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 pledged/(received) as of December 31, 2017:
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 Pledged/ (Received) | Net Exposure(5) | |||||||||||||||||||||||||||||||||||||
BOA | $ | 10 | $ | 0 | $ | 0 | $ | 10 | $ | (60 | ) | $ | 0 | $ | 0 | $ | (60 | ) | $ | (50 | ) | $ | 0 | $ | (50 | ) | ||||||||||||||||||||||
BPS | 3 | 0 | 0 | 3 | (97 | ) | 0 | 0 | (97 | ) | (94 | ) | 0 | (94 | ) | |||||||||||||||||||||||||||||||||
BRC | 0 | 0 | 0 | 0 | (2 | ) | 0 | 0 | (2 | ) | (2 | ) | 0 | (2 | ) | |||||||||||||||||||||||||||||||||
CBK | 26 | 0 | 0 | 26 | (7 | ) | 0 | (24 | ) | (31 | ) | (5 | ) | 0 | (5 | ) | ||||||||||||||||||||||||||||||||
DUB | 3 | 0 | 35 | 38 | 0 | 0 | 0 | 0 | 38 | 0 | 38 |
34 | PIMCO EQUITY SERIES | See Accompanying Notes |
Table of Contents
December 31, 2017 (Unaudited)
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 Pledged/ (Received) | Net Exposure(5) | |||||||||||||||||||||||||||||||||||||
FBF | $ | 0 | $ | 0 | $ | 1 | $ | 1 | $ | 0 | $ | 0 | $ | 0 | $ | 0 | $ | 1 | $ | 0 | $ | 1 | ||||||||||||||||||||||||||
GLM | 3 | 0 | 7 | 10 | (8 | ) | 0 | 0 | (8 | ) | 2 | 0 | 2 | |||||||||||||||||||||||||||||||||||
GST | 0 | 0 | 0 | 0 | 0 | 0 | (13 | ) | (13 | ) | (13 | ) | 0 | (13 | ) | |||||||||||||||||||||||||||||||||
JPM | 63 | 0 | 0 | 63 | (3 | ) | 0 | (2 | ) | (5 | ) | 58 | 0 | 58 | ||||||||||||||||||||||||||||||||||
MSB | 5 | 0 | 0 | 5 | (2 | ) | 0 | 0 | (2 | ) | 3 | 0 | 3 | |||||||||||||||||||||||||||||||||||
MYC | 0 | 0 | 15 | 15 | 0 | 0 | (18 | ) | (18 | ) | (3 | ) | 0 | (3 | ) | |||||||||||||||||||||||||||||||||
NGF | 0 | 0 | 0 | 0 | (2 | ) | 0 | 0 | (2 | ) | (2 | ) | 0 | (2 | ) | |||||||||||||||||||||||||||||||||
RBC | 0 | 0 | 0 | 0 | (1 | ) | 0 | 0 | (1 | ) | (1 | ) | 0 | (1 | ) | |||||||||||||||||||||||||||||||||
SAL | 0 | 0 | 0 | 0 | 0 | (2 | ) | 0 | (2 | ) | (2 | ) | 0 | (2 | ) | |||||||||||||||||||||||||||||||||
SCX | 36 | 0 | 0 | 36 | (4 | ) | 0 | 0 | (4 | ) | 32 | 0 | 32 | |||||||||||||||||||||||||||||||||||
UAG | 2 | 0 | 0 | 2 | (98 | ) | 0 | 0 | (98 | ) | (96 | ) | 0 | (96 | ) | |||||||||||||||||||||||||||||||||
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| |||||||||||||||||||||||||||||||||
Total Over the Counter | $ | 151 | $ | 0 | $ | 58 | $ | 209 | $ | (284 | ) | $ | (2 | ) | $ | (57 | ) | $ | (343 | ) | ||||||||||||||||||||||||||||
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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, securities or other deliverable obligations 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 indicators 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 indicators 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. |
(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 8, Master Netting Arrangements, 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 December 31, 2017:
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 | $ | 0 | $ | 4 | $ | 4 | ||||||||||||
Swap Agreements | 0 | 0 | 0 | 0 | 66 | 66 | ||||||||||||||||||
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| |||||||||||||
$ | 0 | $ | 0 | $ | 0 | $ | 0 | $ | 70 | $ | 70 | |||||||||||||
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Over the counter | ||||||||||||||||||||||||
Forward Foreign Currency Contracts | $ | 0 | $ | 0 | $ | 0 | $ | 151 | $ | 0 | $ | 151 | ||||||||||||
Swap Agreements | 0 | 39 | 0 | 0 | 19 | 58 | ||||||||||||||||||
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$ | 0 | $ | 39 | $ | 0 | $ | 151 | $ | 19 | $ | 209 | |||||||||||||
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$ | 0 | $ | 39 | $ | 0 | $ | 151 | $ | 89 | $ | 279 | |||||||||||||
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Financial Derivative Instruments - Liabilities | ||||||||||||||||||||||||
Exchange-traded or centrally cleared | ||||||||||||||||||||||||
Swap Agreements | $ | 0 | $ | 3 | $ | 0 | $ | 0 | $ | 29 | $ | 32 | ||||||||||||
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Over the counter | ||||||||||||||||||||||||
Forward Foreign Currency Contracts | $ | 0 | $ | 0 | $ | 0 | $ | 284 | $ | 0 | $ | 284 | ||||||||||||
Written Options | 0 | 0 | 0 | 0 | 2 | 2 | ||||||||||||||||||
Swap Agreements | 0 | 39 | 0 | 0 | 18 | 57 | ||||||||||||||||||
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$ | 0 | $ | 39 | $ | 0 | $ | 284 | $ | 20 | $ | 343 | |||||||||||||
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$ | 0 | $ | 42 | $ | 0 | $ | 284 | $ | 49 | $ | 375 | |||||||||||||
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See Accompanying Notes | SEMIANNUAL REPORT | DECEMBER 31, 2017 | 35 |
Table of Contents
Schedule of Investments PIMCO Dividend and Income Fund (Cont.)
The effect of Financial Derivative Instruments on the Statements of Operations for the period ended December 31, 2017:
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 | $ | 0 | $ | (3 | ) | $ | (3 | ) | ||||||||||
Swap Agreements | 0 | (79 | ) | 0 | 0 | 167 | 88 | |||||||||||||||||
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$ | 0 | $ | (79 | ) | $ | 0 | $ | 0 | $ | 164 | $ | 85 | ||||||||||||
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Over the counter |
| |||||||||||||||||||||||
Forward Foreign Currency Contracts | $ | 0 | $ | 0 | $ | 0 | $ | (310 | ) | $ | 0 | $ | (310 | ) | ||||||||||
Written Options | 0 | 0 | 0 | 10 | 0 | 10 | ||||||||||||||||||
Swap Agreements | 0 | 26 | 0 | 0 | 26 | 52 | ||||||||||||||||||
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$ | 0 | $ | 26 | $ | 0 | $ | (300 | ) | $ | 26 | $ | (248 | ) | |||||||||||
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$ | 0 | $ | (53 | ) | $ | 0 | $ | (300 | ) | $ | 190 | $ | (163 | ) | ||||||||||
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Net Change in Unrealized Appreciation (Depreciation) on Financial Derivative Instruments |
| |||||||||||||||||||||||
Exchange-traded or centrally cleared |
| |||||||||||||||||||||||
Futures | $ | 0 | $ | 0 | $ | 0 | $ | 0 | $ | (11 | ) | $ | (11 | ) | ||||||||||
Swap Agreements | 0 | 8 | 0 | 0 | (181 | ) | (173 | ) | ||||||||||||||||
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$ | 0 | $ | 8 | $ | 0 | $ | 0 | $ | (192 | ) | $ | (184 | ) | |||||||||||
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Over the counter |
| |||||||||||||||||||||||
Forward Foreign Currency Contracts | $ | 0 | $ | 0 | $ | 0 | $ | (162 | ) | $ | 0 | $ | (162 | ) | ||||||||||
Written Options | 0 | 0 | 0 | (3 | ) | 1 | (2 | ) | ||||||||||||||||
Swap Agreements | 0 | 170 | 0 | 0 | (6 | ) | 164 | |||||||||||||||||
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$ | 0 | $ | 170 | $ | 0 | $ | (165 | ) | $ | (5 | ) | $ | 0 | |||||||||||
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$ | 0 | $ | 178 | $ | 0 | $ | (165 | ) | $ | (197 | ) | $ | (184 | ) | ||||||||||
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FAIR VALUE MEASUREMENTS
The following is a summary of the fair valuations according to the inputs used as of December 31, 2017 in valuing the Fund’s assets and liabilities:
Category and Subcategory | Level 1 | Level 2 | Level 3 | Fair Value at 12/31/2017 | ||||||||||||
Investments in Securities, at Value |
| |||||||||||||||
Asset-Backed Securities |
| |||||||||||||||
Cayman Islands | $ | 0 | $ | 4,240 | $ | 0 | $ | 4,240 | ||||||||
Netherlands | 0 | 709 | 0 | 709 | ||||||||||||
United States | 0 | 15,698 | 0 | 15,698 | ||||||||||||
Loan Participations and Assignments |
| |||||||||||||||
Canada | 0 | 10 | 0 | 10 | ||||||||||||
Ireland | 0 | 38 | 0 | 38 | ||||||||||||
United States | 0 | 3,674 | 100 | 3,774 | ||||||||||||
Common Stocks |
| |||||||||||||||
Australia |
| |||||||||||||||
Consumer Discretionary | 76 | 33 | 0 | 109 | ||||||||||||
Consumer Staples | 0 | 1,990 | 0 | 1,990 | ||||||||||||
Energy | 0 | 555 | 0 | 555 | ||||||||||||
Financials | 0 | 4,706 | 0 | 4,706 | ||||||||||||
Health Care | 0 | 216 | 0 | 216 | ||||||||||||
Industrials | 0 | 304 | 0 | 304 | ||||||||||||
Materials | 0 | 3,194 | 0 | 3,194 | ||||||||||||
Telecommunication Services | 0 | 642 | 0 | 642 | ||||||||||||
Austria |
| |||||||||||||||
Energy | 482 | 0 | 0 | 482 | ||||||||||||
Financials | 746 | 29 | 0 | 775 | ||||||||||||
Materials | 0 | 187 | 0 | 187 | ||||||||||||
Belgium |
| |||||||||||||||
Telecommunication Services | 262 | 0 | 0 | 262 | ||||||||||||
Brazil |
| |||||||||||||||
Energy | 0 | 0 | 12 | 12 | ||||||||||||
Utilities | 1 | 0 | 0 | 1 | ||||||||||||
Canada |
| |||||||||||||||
Consumer Discretionary | 72 | 0 | 0 | 72 | ||||||||||||
Energy | 437 | 0 | 0 | 437 | ||||||||||||
Financials | 2,852 | 0 | 0 | 2,852 | ||||||||||||
Industrials | 178 | 0 | 0 | 178 |
Category and Subcategory | Level 1 | Level 2 | Level 3 | Fair Value at 12/31/2017 | ||||||||||||
Materials | $ | 670 | $ | 0 | $ | 0 | $ | 670 | ||||||||
Utilities | 631 | 0 | 0 | 631 | ||||||||||||
Denmark |
| |||||||||||||||
Industrials | 0 | 653 | 0 | 653 | ||||||||||||
Telecommunication Services | 406 | 0 | 0 | 406 | ||||||||||||
Finland |
| |||||||||||||||
Industrials | 0 | 39 | 0 | 39 | ||||||||||||
Materials | 0 | 377 | 0 | 377 | ||||||||||||
Utilities | 0 | 272 | 0 | 272 | ||||||||||||
France |
| |||||||||||||||
Consumer Discretionary | 112 | 2,450 | 0 | 2,562 | ||||||||||||
Consumer Staples | 0 | 1,573 | 0 | 1,573 | ||||||||||||
Energy | 0 | 828 | 0 | 828 | ||||||||||||
Financials | 0 | 5,955 | 0 | 5,955 | ||||||||||||
Health Care | 0 | 2,943 | 0 | 2,943 | ||||||||||||
Industrials | 0 | 2,114 | 0 | 2,114 | ||||||||||||
Telecommunication Services | 0 | 747 | 0 | 747 | ||||||||||||
Utilities | 1,055 | 647 | 0 | 1,702 | ||||||||||||
Germany |
| |||||||||||||||
Consumer Discretionary | 0 | 3,021 | 0 | 3,021 | ||||||||||||
Consumer Staples | 0 | 499 | 0 | 499 | ||||||||||||
Financials | 0 | 1,399 | 0 | 1,399 | ||||||||||||
Health Care | 0 | 1,250 | 0 | 1,250 | ||||||||||||
Industrials | 0 | 2,565 | 0 | 2,565 | ||||||||||||
Materials | 0 | 2,675 | 0 | 2,675 | ||||||||||||
Utilities | 0 | 2,293 | 0 | 2,293 | ||||||||||||
Hong Kong |
| |||||||||||||||
Consumer Discretionary | 1 | 551 | 0 | 552 | ||||||||||||
Information Technology | 0 | 297 | 0 | 297 | ||||||||||||
Real Estate | 0 | 1,404 | 0 | 1,404 | ||||||||||||
Israel |
| |||||||||||||||
Financials | 0 | 117 | 0 | 117 | ||||||||||||
Materials | 0 | 221 | 0 | 221 | ||||||||||||
Telecommunication Services | 199 | 0 | 0 | 199 |
36 | PIMCO EQUITY SERIES | See Accompanying Notes |
Table of Contents
December 31, 2017 (Unaudited)
Category and Subcategory | Level 1 | Level 2 | Level 3 | Fair Value at 12/31/2017 | ||||||||||||
Italy |
| |||||||||||||||
Energy | $ | 0 | $ | 1,328 | $ | 0 | $ | 1,328 | ||||||||
Financials | 783 | 214 | 0 | 997 | ||||||||||||
Industrials | 50 | 0 | 0 | 50 | ||||||||||||
Utilities | 0 | 1,937 | 0 | 1,937 | ||||||||||||
Japan |
| |||||||||||||||
Consumer Discretionary | 0 | 4,969 | 0 | 4,969 | ||||||||||||
Consumer Staples | 0 | 1,119 | 0 | 1,119 | ||||||||||||
Energy | 0 | 1,011 | 0 | 1,011 | ||||||||||||
Financials | 0 | 9,840 | 0 | 9,840 | ||||||||||||
Health Care | 0 | 776 | 0 | 776 | ||||||||||||
Industrials | 0 | 7,802 | 0 | 7,802 | ||||||||||||
Information Technology | 0 | 6,926 | 0 | 6,926 | ||||||||||||
Materials | 0 | 1,959 | 0 | 1,959 | ||||||||||||
Real Estate | 0 | 127 | 0 | 127 | ||||||||||||
Telecommunication Services | 0 | 1,465 | 0 | 1,465 | ||||||||||||
Utilities | 0 | 689 | 0 | 689 | ||||||||||||
Luxembourg |
| |||||||||||||||
Consumer Discretionary | 0 | 149 | 0 | 149 | ||||||||||||
Macau |
| |||||||||||||||
Consumer Discretionary | 0 | 120 | 0 | 120 | ||||||||||||
Mexico |
| |||||||||||||||
Consumer Discretionary | 1 | 0 | 0 | 1 | ||||||||||||
Netherlands |
| |||||||||||||||
Consumer Staples | 0 | 457 | 0 | 457 | ||||||||||||
Energy | 0 | 3,212 | 0 | 3,212 | ||||||||||||
Financials | 0 | 782 | 0 | 782 | ||||||||||||
Health Care | 0 | 987 | 0 | 987 | ||||||||||||
Industrials | 0 | 161 | 0 | 161 | ||||||||||||
Telecommunication Services | 399 | 0 | 0 | 399 | ||||||||||||
New Zealand |
| |||||||||||||||
Telecommunication Services | 74 | 0 | 0 | 74 | ||||||||||||
Norway |
| |||||||||||||||
Energy | 0 | 1,081 | 0 | 1,081 | ||||||||||||
Financials | 0 | 301 | 0 | 301 | ||||||||||||
Materials | 0 | 334 | 0 | 334 | ||||||||||||
Telecommunication Services | 0 | 128 | 0 | 128 | ||||||||||||
Portugal |
| |||||||||||||||
Consumer Staples | 75 | 0 | 0 | 75 | ||||||||||||
Utilities | 334 | 0 | 0 | 334 | ||||||||||||
Singapore |
| |||||||||||||||
Industrials | 0 | 475 | 0 | 475 | ||||||||||||
Information Technology | 0 | 82 | 0 | 82 | ||||||||||||
Spain |
| |||||||||||||||
Consumer Staples | 0 | 154 | 0 | 154 | ||||||||||||
Financials | 0 | 5,259 | 0 | 5,259 | ||||||||||||
Industrials | 0 | 1,357 | 0 | 1,357 | ||||||||||||
Telecommunication Services | 0 | 1,013 | 0 | 1,013 | ||||||||||||
Utilities | 0 | 654 | 0 | 654 | ||||||||||||
Sweden |
| |||||||||||||||
Financials | 108 | 720 | 0 | 828 | ||||||||||||
Health Care | 22 | 113 | 0 | 135 | ||||||||||||
Telecommunication Services | 0 | 1,054 | 0 | 1,054 | ||||||||||||
Switzerland |
| |||||||||||||||
Consumer Discretionary | 169 | 0 | 0 | 169 | ||||||||||||
Energy | 281 | 0 | 0 | 281 | ||||||||||||
Financials | 0 | 3,764 | 0 | 3,764 | ||||||||||||
Health Care | 0 | 1,619 | 0 | 1,619 | ||||||||||||
Industrials | 0 | 78 | 0 | 78 | ||||||||||||
Information Technology | 247 | 0 | 0 | 247 | ||||||||||||
Telecommunication Services | 0 | 220 | 0 | 220 | ||||||||||||
United Kingdom |
| |||||||||||||||
Consumer Discretionary | 189 | 1,159 | 0 | 1,348 | ||||||||||||
Consumer Staples | 634 | 479 | 0 | 1,113 | ||||||||||||
Energy | 0 | 2,723 | 0 | 2,723 | ||||||||||||
Financials | 960 | 10,920 | 0 | 11,880 | ||||||||||||
Health Care | 0 | 851 | 0 | 851 | ||||||||||||
Industrials | 300 | 1,322 | 0 | 1,622 | ||||||||||||
Materials | 0 | 408 | 0 | 408 | ||||||||||||
Telecommunication Services | 0 | 1,614 | 0 | 1,614 | ||||||||||||
Utilities | 559 | 219 | 0 | 778 |
Category and Subcategory | Level 1 | Level 2 | Level 3 | Fair Value at 12/31/2017 | ||||||||||||
United States |
| |||||||||||||||
Consumer Discretionary | $ | 8,411 | $ | 0 | $ | 0 | $ | 8,411 | ||||||||
Consumer Staples | 9,270 | 0 | 0 | 9,270 | ||||||||||||
Energy | 12,898 | 0 | 0 | 12,898 | ||||||||||||
Financials | 25,068 | 0 | 0 | 25,068 | ||||||||||||
Health Care | 13,654 | 0 | 0 | 13,654 | ||||||||||||
Industrials | 7,617 | 0 | 0 | 7,617 | ||||||||||||
Information Technology | 10,948 | 0 | 0 | 10,948 | ||||||||||||
Materials | 4,022 | 0 | 0 | 4,022 | ||||||||||||
Telecommunication Services | 5,636 | 0 | 0 | 5,636 | ||||||||||||
Utilities | 6,091 | 0 | 0 | 6,091 | ||||||||||||
Corporate Bonds & Notes |
| |||||||||||||||
Australia |
| |||||||||||||||
Banking & Finance | 0 | 395 | 0 | 395 | ||||||||||||
Bermuda |
| |||||||||||||||
Industrials | 0 | 10 | 0 | 10 | ||||||||||||
Brazil |
| |||||||||||||||
Utilities | 0 | 1,348 | 0 | 1,348 | ||||||||||||
Canada |
| |||||||||||||||
Banking & Finance | 0 | 17 | 0 | 17 | ||||||||||||
Industrials | 0 | 95 | 0 | 95 | ||||||||||||
Cayman Islands |
| |||||||||||||||
Industrials | 0 | 72 | 0 | 72 | ||||||||||||
Utilities | 0 | 96 | 0 | 96 | ||||||||||||
Denmark |
| |||||||||||||||
Banking & Finance | 0 | 1,175 | 0 | 1,175 | ||||||||||||
Finland |
| |||||||||||||||
Industrials | 0 | 6 | 0 | 6 | ||||||||||||
France |
| |||||||||||||||
Banking & Finance | 0 | 1,003 | 0 | 1,003 | ||||||||||||
Industrials | 0 | 724 | 0 | 724 | ||||||||||||
Germany |
| |||||||||||||||
Banking & Finance | 0 | 668 | 0 | 668 | ||||||||||||
Ireland |
| |||||||||||||||
Industrials | 0 | 517 | 0 | 517 | ||||||||||||
Luxembourg |
| |||||||||||||||
Banking & Finance | 0 | 693 | 0 | 693 | ||||||||||||
Industrials | 0 | 159 | 0 | 159 | ||||||||||||
Utilities | 0 | 1,381 | 0 | 1,381 | ||||||||||||
Mexico |
| |||||||||||||||
Industrials | 0 | 130 | 0 | 130 | ||||||||||||
Netherlands |
| |||||||||||||||
Banking & Finance | 0 | 315 | 0 | 315 | ||||||||||||
Industrials | 0 | 4 | 0 | 4 | ||||||||||||
Supranational |
| |||||||||||||||
Banking & Finance | 0 | 22 | 0 | 22 | ||||||||||||
United Kingdom |
| |||||||||||||||
Banking & Finance | 0 | 4,249 | 0 | 4,249 | ||||||||||||
Industrials | 0 | 1,111 | 0 | 1,111 | ||||||||||||
United States |
| |||||||||||||||
Banking & Finance | 0 | 4,649 | 0 | 4,649 | ||||||||||||
Industrials | 0 | 2,864 | 0 | 2,864 | ||||||||||||
Utilities | 0 | 1,662 | 0 | 1,662 | ||||||||||||
Venezuela |
| |||||||||||||||
Industrials | 0 | 72 | 0 | 72 | ||||||||||||
Non-Agency Mortgage-Backed Securities |
| |||||||||||||||
United Kingdom | 0 | 2,629 | 0 | 2,629 | ||||||||||||
United States | 0 | 9,016 | 86 | 9,102 | ||||||||||||
Municipal Bonds & Notes |
| |||||||||||||||
California | 0 | 661 | 0 | 661 | ||||||||||||
Illinois | 0 | 173 | 0 | 173 | ||||||||||||
Michigan | 0 | 215 | 0 | 215 | ||||||||||||
Puerto Rico | 0 | 112 | 0 | 112 | ||||||||||||
Virginia | 0 | 348 | 0 | 348 | ||||||||||||
West Virginia | 0 | 351 | 0 | 351 | ||||||||||||
Preferred Stocks |
| |||||||||||||||
Germany |
| |||||||||||||||
Consumer Discretionary | 0 | 2,144 | 0 | 2,144 | ||||||||||||
Real Estate Investment Trusts |
| |||||||||||||||
Canada |
| |||||||||||||||
Real Estate | 318 | 0 | 0 | 318 |
See Accompanying Notes | SEMIANNUAL REPORT | DECEMBER 31, 2017 | 37 |
Table of Contents
Schedule of Investments PIMCO Dividend and Income Fund (Cont.)
December 31, 2017 (Unaudited)
Category and Subcategory | Level 1 | Level 2 | Level 3 | Fair Value at 12/31/2017 | ||||||||||||
United States |
| |||||||||||||||
Financials | $ | 735 | $ | 0 | $ | 0 | $ | 735 | ||||||||
Real Estate | 323 | 0 | 0 | 323 | ||||||||||||
Sovereign Issues |
| |||||||||||||||
Argentina | 0 | 863 | 0 | 863 | ||||||||||||
Brazil | 0 | 491 | 0 | 491 | ||||||||||||
Greece | 0 | 125 | 0 | 125 | ||||||||||||
Kuwait | 0 | 392 | 0 | 392 | ||||||||||||
Peru | 0 | 123 | 0 | 123 | ||||||||||||
Saudi Arabia | 0 | 800 | 0 | 800 | ||||||||||||
Spain | 0 | 67 | 0 | 67 | ||||||||||||
Sweden | 0 | 120 | 0 | 120 | ||||||||||||
Venezuela | 0 | 33 | 0 | 33 | ||||||||||||
U.S. Government Agencies |
| |||||||||||||||
United States | 0 | 14,173 | 0 | 14,173 | ||||||||||||
U.S. Treasury Obligations |
| |||||||||||||||
United States | 0 | 24,322 | 0 | 24,322 | ||||||||||||
Short-Term Instruments |
| |||||||||||||||
Certificates of Deposit | 0 | 300 | 0 | 300 | ||||||||||||
Repurchase Agreements | 0 | 186 | 0 | 186 | ||||||||||||
France Treasury Bills | 0 | 144 | 0 | 144 | ||||||||||||
Japan Treasury Bills | 0 | 841 | 0 | 841 | ||||||||||||
U.K. Treasury Bills | 0 | 305 | 0 | 305 | ||||||||||||
Argentina Treasury Bills | 0 | 442 | 0 | 442 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
$ | 118,356 | $ | 238,059 | $ | 198 | $ | 356,613 | |||||||||
|
|
|
|
|
|
|
|
Category and Subcategory | Level 1 | Level 2 | Level 3 | Fair Value at 12/31/2017 | ||||||||||||
Investments in Affiliates, at Value |
| |||||||||||||||
Short-Term Instruments |
| |||||||||||||||
Central Funds Used for Cash Management Purposes | $ | 5,299 | $ | 0 | $ | 0 | $ | 5,299 | ||||||||
|
|
|
|
|
|
|
| |||||||||
Total Investments | $ | 123,655 | $ | 238,059 | $ | 198 | $ | 361,912 | ||||||||
|
|
|
|
|
|
|
| |||||||||
Short Sales, at Value - Liabilities |
| |||||||||||||||
United States | $ | 0 | $ | (3,001 | ) | $ | 0 | $ | (3,001 | ) | ||||||
|
|
|
|
|
|
|
| |||||||||
Financial Derivative Instruments - Assets |
| |||||||||||||||
Exchange-traded or centrally cleared | 4 | 66 | 0 | 70 | ||||||||||||
Over the counter | 0 | 209 | 0 | 209 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
$ | 4 | $ | 275 | $ | 0 | $ | 279 | |||||||||
|
|
|
|
|
|
|
| |||||||||
Financial Derivative Instruments - Liabilities |
| |||||||||||||||
Exchange-traded or centrally cleared | 0 | (32 | ) | 0 | (32 | ) | ||||||||||
Over the counter | 0 | (343 | ) | 0 | (343 | ) | ||||||||||
|
|
|
|
|
|
|
| |||||||||
$ | 0 | $ | (375 | ) | $ | 0 | $ | (375 | ) | |||||||
|
|
|
|
|
|
|
| |||||||||
Total Financial Derivative Instruments | $ | 4 | $ | (100 | ) | $ | 0 | $ | (96 | ) | ||||||
|
|
|
|
|
|
|
| |||||||||
Totals | $ | 123,659 | $ | 234,958 | $ | 198 | $ | 358,815 | ||||||||
|
|
|
|
|
|
|
|
There were no significant transfers among Levels 1, 2, or 3 during the period ended December 31, 2017.
38 | PIMCO EQUITY SERIES | See Accompanying Notes |
Table of Contents
Schedule of Investments PIMCO EqS® Long/Short Fund
December 31, 2017 (Unaudited)
SHARES | MARKET VALUE (000S) | |||||||||||
INVESTMENTS IN SECURITIES 84.4% | ||||||||||||
COMMON STOCKS 70.5% | ||||||||||||
GERMANY 2.0% | ||||||||||||
FINANCIALS 1.1% | ||||||||||||
Deutsche Boerse AG | 50,000 | $ | 5,788 | |||||||||
|
| |||||||||||
HEALTH CARE 0.9% | ||||||||||||
Bayer AG | 39,844 | 4,951 | ||||||||||
|
| |||||||||||
Total Germany | 10,739 | |||||||||||
|
| |||||||||||
SWITZERLAND 3.1% | ||||||||||||
CONSUMER STAPLES 1.7% | ||||||||||||
Nestle S.A. | 105,000 | 9,028 | ||||||||||
|
| |||||||||||
HEALTH CARE 1.4% | ||||||||||||
Novartis AG | 88,000 | 7,405 | ||||||||||
|
| |||||||||||
Total Switzerland | 16,433 | |||||||||||
|
| |||||||||||
UNITED KINGDOM 1.5% | ||||||||||||
INDUSTRIALS 1.5% | ||||||||||||
IHS Markit Ltd. (a) | 175,000 | 7,901 | ||||||||||
|
| |||||||||||
Total United Kingdom | 7,901 | |||||||||||
|
| |||||||||||
UNITED STATES 63.9% | ||||||||||||
CONSUMER DISCRETIONARY 10.6% | ||||||||||||
Amazon.com, Inc. (a) | 5,000 | 5,847 | ||||||||||
Carnival Corp. (g) | 110,000 | 7,300 | ||||||||||
Comcast Corp. ‘A’ | 295,000 | 11,815 | ||||||||||
Domino’s Pizza, Inc. | 30,000 | 5,669 | ||||||||||
Las Vegas Sands Corp. | 165,000 | 11,466 | ||||||||||
Royal Caribbean Cruises Ltd. | 60,000 | 7,157 | ||||||||||
TJX Cos., Inc. | 85,000 | 6,499 | ||||||||||
|
| |||||||||||
55,753 | ||||||||||||
|
| |||||||||||
CONSUMER STAPLES 2.0% | ||||||||||||
Coca-Cola Co. | 230,000 | 10,552 | ||||||||||
|
| |||||||||||
ENERGY 8.9% | ||||||||||||
Concho Resources, Inc. (a)(g) | 45,000 | 6,760 | ||||||||||
Continental Resources, Inc. (a) | 130,000 | 6,886 | ||||||||||
Diamondback Energy, Inc. (a) | 60,000 | 7,575 | ||||||||||
ONEOK, Inc. | 225,000 | 12,026 | ||||||||||
Williams Cos., Inc. | 239,635 | 7,307 |
SHARES | MARKET VALUE (000S) | |||||||||||
Williams Partners LP | 171,822 | $ | 6,663 | |||||||||
|
| |||||||||||
47,217 | ||||||||||||
|
| |||||||||||
FINANCIALS 12.5% | ||||||||||||
American Express Co. | 190,000 | 18,869 | ||||||||||
Berkshire Hathaway, Inc. ‘B’ (a) | 93,000 | 18,435 | ||||||||||
Discover Financial Services | 160,000 | 12,307 | ||||||||||
JPMorgan Chase & Co. | 73,593 | 7,870 | ||||||||||
Morgan Stanley | 100,000 | 5,247 | ||||||||||
U.S. Bancorp | 65,601 | 3,515 | ||||||||||
|
| |||||||||||
66,243 | ||||||||||||
|
| |||||||||||
HEALTH CARE 10.3% | ||||||||||||
Abbott Laboratories | 150,000 | 8,560 | ||||||||||
Cigna Corp. (g) | 40,000 | 8,124 | ||||||||||
Johnson & Johnson | 125,000 | 17,465 | ||||||||||
Pfizer, Inc. | 330,000 | 11,953 | ||||||||||
UnitedHealth Group, Inc. | 38,000 | 8,377 | ||||||||||
|
| |||||||||||
54,479 | ||||||||||||
|
| |||||||||||
INDUSTRIALS 9.1% | ||||||||||||
Kansas City Southern | 110,000 | 11,574 | ||||||||||
KAR Auction Services, Inc. | 195,000 | 9,850 | ||||||||||
Norfolk Southern Corp. | 92,000 | 13,331 | ||||||||||
Union Pacific Corp. | 100,000 | 13,410 | ||||||||||
|
| |||||||||||
48,165 | ||||||||||||
|
| |||||||||||
INFORMATION TECHNOLOGY 8.3% | ||||||||||||
Alphabet, Inc. ‘C’ (a) | 20,000 | 20,928 | ||||||||||
Facebook, Inc. ‘A’ (a) | 70,000 | 12,352 | ||||||||||
salesforce.com, Inc. (a) | 105,000 | 10,734 | ||||||||||
|
| |||||||||||
44,014 | ||||||||||||
|
| |||||||||||
MATERIALS 2.2% | ||||||||||||
Vulcan Materials Co. | 89,000 | 11,425 | ||||||||||
|
| |||||||||||
Total United States | 337,848 | |||||||||||
|
| |||||||||||
Total Common Stocks (Cost $343,484) |
| 372,921 | ||||||||||
|
| |||||||||||
EXCHANGE-TRADED FUNDS 5.2% | ||||||||||||
UNITED STATES 5.2% | ||||||||||||
SPDR S&P Oil & Gas Exploration & Production ETF | 400,000 | 14,872 | ||||||||||
SPDR S&P Regional Banking ETF | 220,000 | 12,947 | ||||||||||
|
| |||||||||||
Total Exchange-Traded Funds (Cost $25,199) |
| 27,819 | ||||||||||
|
|
PRINCIPAL AMOUNT (000S) | MARKET VALUE (000S) | |||||||||||
U.S. TREASURY OBLIGATIONS 0.6% | ||||||||||||
UNITED STATES 0.6% | ||||||||||||
U.S. Treasury Floating Rate Notes |
| |||||||||||
1.624% (USBMMY3M + 0.174%) due 07/31/2018 ~ | $ | 3,200 | $ | 3,204 | ||||||||
|
| |||||||||||
Total U.S. Treasury Obligations (Cost $3,200) |
| 3,204 | ||||||||||
|
| |||||||||||
SHORT-TERM INSTRUMENTS 8.1% | ||||||||||||
REPURCHASE AGREEMENTS (e) 0.1% | ||||||||||||
524 | ||||||||||||
|
| |||||||||||
U.S. TREASURY BILLS 7.3% | ||||||||||||
1.074% due 01/04/2018 - 03/01/2018 (b)(c)(i) | 38,900 | 38,882 | ||||||||||
|
| |||||||||||
U.S. TREASURY CASH MANAGEMENT BILLS 0.7% | ||||||||||||
1.043% due 01/02/2018 (c)(d) | 3,500 | 3,500 | ||||||||||
|
| |||||||||||
Total Short-Term Instruments (Cost $42,906) | 42,906 | |||||||||||
|
| |||||||||||
Total Investments in Securities (Cost $414,789) | 446,850 | |||||||||||
|
| |||||||||||
SHARES | ||||||||||||
INVESTMENTS IN AFFILIATES 16.2% | ||||||||||||
SHORT-TERM INSTRUMENTS 16.2% | ||||||||||||
CENTRAL FUNDS USED FOR CASH MANAGEMENT PURPOSES 16.2% | ||||||||||||
PIMCO Short-Term Floating NAV Portfolio III | 8,656,167 | 85,566 | ||||||||||
|
| |||||||||||
Total Short-Term Instruments (Cost $85,557) | 85,566 | |||||||||||
|
| |||||||||||
Total Investments in Affiliates (Cost $85,557) | 85,566 | |||||||||||
Total Investments 100.6% (Cost $500,346) | $ | 532,416 | ||||||||||
Securities Sold Short (f) (20.1)% (Proceeds $102,332) | (106,320 | ) | ||||||||||
Financial Derivative Instruments (h)(j) 0.0% (Cost or Premiums, net $(3,368)) |
| (68 | ) | |||||||||
Other Assets and Liabilities, net 19.5% | 103,076 | |||||||||||
|
| |||||||||||
Net Assets 100.0% | $ | 529,104 | ||||||||||
|
|
NOTES TO SCHEDULE OF INVESTMENTS (AMOUNTS IN THOUSANDS*, EXCEPT NUMBER OF CONTRACTS, SHARES, AND UNITS):
* | A zero balance may reflect actual amounts rounding to less than one thousand. |
« | Security valued using significant unobservable inputs (Level 3). |
~ | Variable or Floating rate security. Rate shown is the rate in effect as of period end. Certain variable rate securities are not based on a published reference rate and spread, rather are determined by the issuer or agent and are based on current market conditions. Reference rate is as of reset date, which may vary by security. These securities may not indicate a reference rate and/or spread in their description. |
(a) | Security did not produce income within the last twelve months. |
(b) | Coupon represents a weighted average yield to maturity. |
(c) | Zero coupon security. |
(d) | Coupon represents a yield to maturity. |
See Accompanying Notes | SEMIANNUAL REPORT | DECEMBER 31, 2017 | 39 |
Table of Contents
Schedule of Investments PIMCO EqS® Long/Short Fund (Cont.)
BORROWINGS AND OTHER FINANCING TRANSACTIONS
(e) REPURCHASE AGREEMENTS:
Counterparty | Lending Rate | Settlement Date | Maturity Date | Principal Amount | Collateralized By | Collateral (Received) | Repurchase Agreements, at Value | Repurchase Agreement Proceeds to be Received(1) | ||||||||||||||||||||||
FICC | 0.700 | % | 12/29/2017 | 01/02/2018 | $ | 524 | U.S. Treasury Notes 1.375% due 06/30/2023 | $ | (538 | ) | $ | 524 | $ | 524 | ||||||||||||||||
|
|
|
|
|
| |||||||||||||||||||||||||
Total Repurchase Agreements |
| $ | (538 | ) | $ | 524 | $ | 524 | ||||||||||||||||||||||
|
|
|
|
|
|
(f) SECURITIES SOLD SHORT
Counterparty | Description | Shares | Proceeds | Payable for Short Sales(2) | ||||||||||
Common Stocks (18.5)% | ||||||||||||||
China (0.6)% | ||||||||||||||
Consumer Discretionary (0.6)% | ||||||||||||||
GSC | JD.com, Inc. ADR | 70,000 | $ | (2,689 | ) | $ | (2,899 | ) | ||||||
|
|
|
| |||||||||||
Total China | (2,689 | ) | (2,899 | ) | ||||||||||
|
|
|
| |||||||||||
Switzerland (0.9)% | ||||||||||||||
Information Technology (0.9)% | ||||||||||||||
Logitech International S.A. | 135,000 | (4,518 | ) | (4,548 | ) | |||||||||
|
|
|
| |||||||||||
Total Switzerland | (4,518 | ) | (4,548 | ) | ||||||||||
|
|
|
| |||||||||||
United Kingdom (0.4)% | ||||||||||||||
Industrials (0.4)% | ||||||||||||||
Rolls-Royce Holdings PLC | 200,000 | (1,900 | ) | (2,283 | ) | |||||||||
Rolls-Royce Holdings PLC | 9,200,000 | (12 | ) | (12 | ) | |||||||||
|
|
|
| |||||||||||
Total United Kingdom | (1,912 | ) | (2,295 | ) | ||||||||||
|
|
|
| |||||||||||
United States (16.6)% | ||||||||||||||
Consumer Discretionary (3.9)% | ||||||||||||||
Aramark | 65,000 | (2,771 | ) | (2,778 | ) | |||||||||
Brunswick Corp. | 88,000 | (4,814 | ) | (4,859 | ) | |||||||||
FOB | Buckle, Inc. | 130,430 | (4,040 | ) | (3,098 | ) | ||||||||
Gap, Inc. | 100,000 | (2,977 | ) | (3,406 | ) | |||||||||
GSC | Hasbro, Inc. | 40,000 | (3,677 | ) | (3,636 | ) | ||||||||
NIKE, Inc. ‘B’ | 50,000 | (3,019 | ) | (3,137 | ) | |||||||||
|
|
|
| |||||||||||
(21,298 | ) | (20,914 | ) | |||||||||||
|
|
|
| |||||||||||
Consumer Staples (3.3)% | ||||||||||||||
Church & Dwight Co., Inc. | 85,000 | (4,094 | ) | (4,264 | ) | |||||||||
Clorox Co. | 55,000 | (7,154 | ) | (8,181 | ) | |||||||||
Kraft Heinz Co. | 35,000 | (2,687 | ) | (2,722 | ) | |||||||||
Mondelez International, Inc. | 60,000 | (2,454 | ) | (2,581 | ) | |||||||||
|
|
|
| |||||||||||
(16,389 | ) | (17,748 | ) | |||||||||||
|
|
|
| |||||||||||
Energy (2.4)% | ||||||||||||||
Anadarko Petroleum Corp. | 60,000 | (2,924 | ) | (3,218 | ) | |||||||||
Exxon Mobil Corp. | 70,000 | (5,923 | ) | (5,855 | ) | |||||||||
Laredo Petroleum, Inc. | 100,000 | (1,033 | ) | (1,061 | ) | |||||||||
FOB | Occidental Petroleum Corp. | 35,000 | (2,450 | ) | (2,578 | ) | ||||||||
|
|
|
| |||||||||||
(12,330 | ) | (12,712 | ) | |||||||||||
|
|
|
| |||||||||||
Financials (3.1)% | ||||||||||||||
GSC | Affiliated Managers Group, Inc. | 27,000 | (4,461 | ) | (5,542 | ) | ||||||||
FOB | Bank of the Ozarks, Inc. | 115,000 | (5,396 | ) | (5,572 | ) | ||||||||
GSC | Franklin Resources, Inc. | 50,000 | (2,121 | ) | (2,178 | ) | ||||||||
Invesco Ltd. | 83,000 | (2,670 | ) | (3,033 | ) | |||||||||
|
|
|
| |||||||||||
(14,648 | ) | (16,325 | ) | |||||||||||
|
|
|
| |||||||||||
Health Care (1.9)% | ||||||||||||||
FOB | Community Health Systems, Inc. | 140,000 | (988 | ) | (596 | ) | ||||||||
GSC | Eli Lilly & Co. | 60,000 | (5,033 | ) | (5,068 | ) | ||||||||
FOB | Merck & Co., Inc. | 75,000 | (4,128 | ) | (4,256 | ) | ||||||||
|
|
|
| |||||||||||
(10,149 | ) | (9,920 | ) | |||||||||||
|
|
|
|
40 | PIMCO EQUITY SERIES | See Accompanying Notes |
Table of Contents
December 31, 2017 (Unaudited)
Counterparty | Description | Shares | Proceeds | Payable for Short Sales(2) | ||||||||||
Industrials (2.0)% | ||||||||||||||
Brink’s Co. | 50,000 | $ | (4,016 | ) | $ | (3,935 | ) | |||||||
GSC | CSX Corp. | 60,000 | (2,976 | ) | (3,301 | ) | ||||||||
FOB | Werner Enterprises, Inc. | 85,000 | (3,011 | ) | (3,291 | ) | ||||||||
|
|
|
| |||||||||||
(10,003 | ) | (10,527 | ) | |||||||||||
|
|
|
| |||||||||||
Total United States | (84,817 | ) | (88,146 | ) | ||||||||||
|
|
|
| |||||||||||
Total Common Stocks | (93,936 | ) | (97,888 | ) | ||||||||||
|
|
|
| |||||||||||
Exchange-Traded Funds (0.5)% | ||||||||||||||
United States (0.5)% | ||||||||||||||
iShares China Large-Cap ETF | 60,000 | (2,726 | ) | (2,770 | ) | |||||||||
|
|
|
| |||||||||||
Total Exchange-Traded Funds | (2,726 | ) | (2,770 | ) | ||||||||||
|
|
|
| |||||||||||
Preferred Stocks 0.0% | ||||||||||||||
United Kingdom 0.0% | ||||||||||||||
Industrials 0.0% | ||||||||||||||
GSC | Rolls Royce Group PLC ‘C’ | 1,455,967 | (2 | ) | (2 | ) | ||||||||
|
|
|
| |||||||||||
Total Preferred Stocks | (2 | ) | (2 | ) | ||||||||||
|
|
|
| |||||||||||
Real Estate Investment Trusts (1.1)% | ||||||||||||||
United States 0.0% | ||||||||||||||
GSC | Iron Mountain, Inc. | 150,000 | (5,668 | ) | (5,660 | ) | ||||||||
|
|
|
| |||||||||||
Total Real Estate Investment Trusts | (5,668 | ) | (5,660 | ) | ||||||||||
|
|
|
| |||||||||||
Total Short Sales (20.1)% | $ | (102,332 | ) | $ | (106,320 | ) | ||||||||
|
|
|
|
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 pledged/(received) as of December 31, 2017:
Counterparty | Repurchase Agreement Proceeds to be Received(1) | Payable for Reverse Repurchase Agreements | Payable for Sale-Buyback Transactions | Payable for Short Sales | Total Borrowings and Other Financing Transactions | Collateral Pledged/(Received) | Net Exposure(3) | |||||||||||||||||||||
Global/Master Repurchase Agreement | ||||||||||||||||||||||||||||
FICC | $ | 524 | $ | 0 | $ | 0 | $ | 0 | $ | 524 | $ | (538 | ) | $ | (14 | ) | ||||||||||||
Prime Brokerage Agreement | ||||||||||||||||||||||||||||
FOB | 0 | 0 | 0 | (29,502 | ) | (29,502 | ) | 29,308 | (194 | ) | ||||||||||||||||||
GSC | 0 | 0 | 0 | (76,818 | ) | (76,818 | ) | 104,875 | 28,057 | |||||||||||||||||||
|
|
|
|
|
|
|
| |||||||||||||||||||||
Total Borrowings and Other Financing Transactions | $ | 524 | $ | 0 | $ | 0 | $ | (106,320 | ) | |||||||||||||||||||
|
|
|
|
|
|
|
|
(g) | Securities with an aggregate market value of $19,676 and cash of $108,189 have been pledged as collateral as of December 31, 2017 for equity short sales and equity options as governed by prime brokerage agreements and agreements governing listed equity option transactions. |
(1) | Includes accrued interest. |
(2) | Payable for short sales includes $77 of dividends payable. |
(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 8, Master Netting Arrangements, in the Notes to Financial Statements for more information regarding master netting arrangements. |
(h) FINANCIAL DERIVATIVE INSTRUMENTS: EXCHANGE-TRADED OR CENTRALLY CLEARED
FUTURES CONTRACTS:
LONG FUTURES CONTRACTS
Description | Expiration Month | # of Contracts | Notional Amount | Unrealized Appreciation/ (Depreciation) | Variation Margin | |||||||||||||||||||||
Asset | Liability | |||||||||||||||||||||||||
Nikkei 225 Index March Futures | 03/2018 | 63 | JPY | 6,362 | $ | 71 | $ | 0 | $ | (35 | ) | |||||||||||||||
|
|
|
|
|
|
See Accompanying Notes | SEMIANNUAL REPORT | DECEMBER 31, 2017 | 41 |
Table of Contents
Schedule of Investments PIMCO EqS® Long/Short Fund (Cont.)
SHORT FUTURES CONTRACTS
Description | Expiration Month | # of Contracts | Notional Amount | Unrealized Appreciation/ (Depreciation) | Variation Margin | |||||||||||||||||||||
Asset | Liability | |||||||||||||||||||||||||
E-mini S&P 500 Index March Futures | 03/2018 | 193 | $ | (25,823 | ) | $ | (266 | ) | $ | 94 | $ | 0 | ||||||||||||||
WTI Crude December Futures | 12/2018 | 193 | (11,208 | ) | (608 | ) | 0 | (77 | ) | |||||||||||||||||
|
|
|
|
|
| |||||||||||||||||||||
$ | (874 | ) | $ | 94 | $ | (77 | ) | |||||||||||||||||||
|
|
|
|
|
| |||||||||||||||||||||
Total Futures Contracts |
| $ | (803 | ) | $ | 94 | $ | (112 | ) | |||||||||||||||||
|
|
|
|
|
|
SWAP AGREEMENTS:
CREDIT DEFAULT SWAPS ON CREDIT INDICES - BUY PROTECTION(1)
Fixed (Pay) Rate | Payment Frequency | Maturity Date | Notional Amount(2) | Premiums Paid/(Received) | Unrealized Appreciation/ (Depreciation) | Market Value(3) | Variation Margin | |||||||||||||||||||||||||||
Index/Tranches | Asset | Liability | ||||||||||||||||||||||||||||||||
CDX.HY-29 5-Year Index | (5.000 | )% | Quarterly | 12/20/2022 | $ | 41,800 | $ | (3,368 | ) | $ | (169 | ) | $ | (3,537 | ) | $ | 0 | $ | (63 | ) | ||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||||||||||||||||
Total Swap Agreements |
| $ | (3,368 | ) | $ | (169 | ) | $ | (3,537 | ) | $ | 0 | $ | (63 | ) | |||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
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 December 31, 2017:
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 | $ | 94 | $ | 0 | $ | 94 | $ | 0 | $ | (112) | $ | (63) | $ | (175) | ||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(i) | Securities with an aggregate market value of $1,756 and cash of $1,264 have been pledged as collateral for exchange-traded and centrally cleared financial derivative instruments as of December 31, 2017. See Note 8, Master Netting Arrangements, in the Notes to Financial Statements for more information regarding master netting arrangements. |
(1) | If the Fund is a buyer of protection and a credit event occurs, as defined under the terms of that particular swap agreement, the 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 or underlying securities comprising the referenced index or (ii) receive a net settlement amount in the form of cash, securities or other deliverable obligations 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 indicators 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. |
(j) 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 | 01/2018 | CHF | 8,480 | $ | 8,658 | $ | 0 | $ | (47 | ) | ||||||||||||||
BPS | 01/2018 | EUR | 5,625 | 6,706 | 0 | (46 | ) | |||||||||||||||||
CBK | 01/2018 | GBP | 864 | 1,168 | 2 | 0 | ||||||||||||||||||
GLM | 01/2018 | CAD | 6,738 | 5,266 | 0 | (96 | ) | |||||||||||||||||
HUS | 01/2018 | $ | 4,752 | CAD | 6,106 | 106 | 0 | |||||||||||||||||
JPM | 01/2018 | EUR | 3,746 | $ | 4,438 | 0 | (59 | ) | ||||||||||||||||
|
|
|
| |||||||||||||||||||||
Total Forward Foreign Currency Contracts |
| $ | 108 | $ | (248 | ) | ||||||||||||||||||
|
|
|
|
42 | PIMCO EQUITY SERIES | See Accompanying Notes |
Table of Contents
December 31, 2017 (Unaudited)
SWAP AGREEMENTS:
TOTAL RETURN SWAPS ON EQUITY INDICES
Counterparty | Pay/Receive(1) | Underlying Reference | # of Units | Financing Rate | Payment Frequency | Maturity Date | Notional Amount | Premiums Paid/(Received) | Unrealized Appreciation/ (Depreciation) | Swap Agreements, at Value | ||||||||||||||||||||||||
Asset | Liability | |||||||||||||||||||||||||||||||||
BOA | Receive | AMZX Index | 1 | 3-Month USD-LIBOR plus a specified spread | Quarterly | 05/15/2018 | $ | 5,303 | $ | 0 | $ | (8 | ) | $ | 0 | $ | (8 | ) | ||||||||||||||||
BPS | Receive | AMZX Index | 1 | 3-Month USD-LIBOR plus a specified spread | Quarterly | 11/28/2018 | 5,351 | 0 | 161 | 161 | 0 | |||||||||||||||||||||||
|
|
|
|
|
|
|
| |||||||||||||||||||||||||||
$ | 0 | $ | 153 | $ | 161 | $ | (8 | ) | ||||||||||||||||||||||||||
|
|
|
|
|
|
|
| |||||||||||||||||||||||||||
Total Swap Agreements | $ | 0 | $ | 153 | $ | 161 | $ | (8 | ) | |||||||||||||||||||||||||
|
|
|
|
|
|
|
|
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) as of December 31, 2017:
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) | Net Exposure(2) | |||||||||||||||||||||||||||||||||||||
BOA | $ | 0 | $ | 0 | $ | 0 | $ | 0 | $ | (47 | ) | $ | 0 | $ | (8 | ) | $ | (55 | ) | $ | (55 | ) | $ | (260 | ) | $ | (315 | ) | ||||||||||||||||||||
BPS | 0 | 0 | 161 | 161 | (46 | ) | 0 | 0 | (46 | ) | 115 | 0 | 115 | |||||||||||||||||||||||||||||||||||
CBK | 2 | 0 | 0 | 2 | 0 | 0 | 0 | 0 | 2 | 0 | 2 | |||||||||||||||||||||||||||||||||||||
GLM | 0 | 0 | 0 | 0 | (96 | ) | 0 | 0 | (96 | ) | (96 | ) | 0 | (96 | ) | |||||||||||||||||||||||||||||||||
HUS | 106 | 0 | 0 | 106 | 0 | 0 | 0 | 0 | 106 | 0 | 106 | |||||||||||||||||||||||||||||||||||||
JPM | 0 | 0 | 0 | 0 | (59 | ) | 0 | 0 | (59 | ) | (59 | ) | 0 | (59 | ) | |||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||||||||||||||||||
Total Over the Counter | $ | 108 | $ | 0 | $ | 161 | $ | 269 | $ | (248 | ) | $ | 0 | $ | (8 | ) | $ | (256 | ) | |||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(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. |
(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 8, Master Netting Arrangements, 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 December 31, 2017:
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 | $ | 94 | $ | 0 | $ | 0 | $ | 94 | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Over the counter | ||||||||||||||||||||||||
Forward Foreign Currency Contracts | $ | 0 | $ | 0 | $ | 0 | $ | 108 | $ | 0 | $ | 108 | ||||||||||||
Swap Agreements | 0 | 0 | 161 | 0 | 0 | 161 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
$ | 0 | $ | 0 | $ | 161 | $ | 108 | $ | 0 | $ | 269 | |||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
$ | 0 | $ | 0 | $ | 255 | $ | 108 | $ | 0 | $ | 363 | |||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Financial Derivative Instruments - Liabilities | ||||||||||||||||||||||||
Exchange-traded or centrally cleared | ||||||||||||||||||||||||
Futures | $ | 77 | $ | 0 | $ | 35 | $ | 0 | $ | 0 | $ | 112 | ||||||||||||
Swap Agreements | 0 | 63 | 0 | 0 | 0 | 63 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
$ | 77 | $ | 63 | $ | 35 | $ | 0 | $ | 0 | $ | 175 | |||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Over the counter |
| |||||||||||||||||||||||
Forward Foreign Currency Contracts | $ | 0 | $ | 0 | $ | 0 | $ | 248 | $ | 0 | $ | 248 | ||||||||||||
Swap Agreements | 0 | 0 | 8 | 0 | 0 | 8 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
$ | 0 | $ | 0 | $ | 8 | $ | 248 | $ | 0 | $ | 256 | |||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
$ | 77 | $ | 63 | $ | 43 | $ | 248 | $ | 0 | $ | 431 | |||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
See Accompanying Notes | SEMIANNUAL REPORT | DECEMBER 31, 2017 | 43 |
Table of Contents
Schedule of Investments PIMCO EqS® Long/Short Fund (Cont.)
December 31, 2017 (Unaudited)
The effect of Financial Derivative Instruments on the Statements of Operations for the period ended December 31, 2017:
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 | $ | (1,324 | ) | $ | 0 | $ | 0 | $ | (1,324 | ) | ||||||||||
Swap Agreements | 0 | (2,025 | ) | 0 | 0 | (2 | ) | (2,027 | ) | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
$ | 0 | $ | (2,025 | ) | $ | (1,324 | ) | $ | 0 | $ | (2 | ) | $ | (3,351 | ) | |||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Over the counter | ||||||||||||||||||||||||
Forward Foreign Currency Contracts | $ | 0 | $ | 0 | $ | 0 | $ | (1,773 | ) | $ | 0 | $ | (1,773 | ) | ||||||||||
Swap Agreements | 0 | 0 | 248 | 0 | 0 | 248 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
$ | 0 | $ | 0 | $ | 248 | $ | (1,773 | ) | $ | 0 | $ | (1,525 | ) | |||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
$ | 0 | $ | (2,025 | ) | $ | (1,076 | ) | $ | (1,773 | ) | $ | (2 | ) | $ | (4,876 | ) | ||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Net Change in Unrealized Appreciation (Depreciation) on Financial Derivative Instruments |
| |||||||||||||||||||||||
Exchange-traded or centrally cleared |
| |||||||||||||||||||||||
Futures | $ | (608 | ) | $ | 0 | $ | (163 | ) | $ | 0 | $ | 0 | $ | (771 | ) | |||||||||
Swap Agreements | 0 | 489 | 0 | 0 | 0 | 489 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
$ | (608 | ) | $ | 489 | $ | (163 | ) | $ | 0 | $ | 0 | $ | (282 | ) | ||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Over the counter | ||||||||||||||||||||||||
Forward Foreign Currency Contracts | $ | 0 | $ | 0 | $ | 0 | $ | 973 | $ | 0 | $ | 973 | ||||||||||||
Swap Agreements | 0 | 0 | 153 | 0 | 0 | 153 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
$ | 0 | $ | 0 | $ | 153 | $ | 973 | $ | 0 | $ | 1,126 | |||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
$ | (608 | ) | $ | 489 | $ | (10 | ) | $ | 973 | $ | 0 | $ | 844 | |||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
FAIR VALUE MEASUREMENTS
The following is a summary of the fair valuations according to the inputs used as of December 31, 2017 in valuing the Fund’s assets and liabilities:
Category and Subcategory | Level 1 | Level 2 | Level 3 | Fair Value at 12/31/2017 | ||||||||||||
Investments in Securities, at Value |
| |||||||||||||||
Common Stocks | ||||||||||||||||
Germany | ||||||||||||||||
Financials | $ | 0 | $ | 5,788 | $ | 0 | $ | 5,788 | ||||||||
Health Care | 0 | 4,951 | 0 | 4,951 | ||||||||||||
Switzerland | ||||||||||||||||
Consumer Staples | 0 | 9,028 | 0 | 9,028 | ||||||||||||
Health Care | 0 | 7,405 | 0 | 7,405 | ||||||||||||
United Kingdom | ||||||||||||||||
Industrials | 7,901 | 0 | 0 | 7,901 | ||||||||||||
United States | ||||||||||||||||
Consumer Discretionary | 55,753 | 0 | 0 | 55,753 | ||||||||||||
Consumer Staples | 10,552 | 0 | 0 | 10,552 | ||||||||||||
Energy | 47,217 | 0 | 0 | 47,217 | ||||||||||||
Financials | 66,243 | 0 | 0 | 66,243 | ||||||||||||
Health Care | 54,479 | 0 | 0 | 54,479 | ||||||||||||
Industrials | 48,165 | 0 | 0 | 48,165 | ||||||||||||
Information Technology | 44,014 | 0 | 0 | 44,014 | ||||||||||||
Materials | 11,425 | 0 | 0 | 11,425 | ||||||||||||
Exchange-Traded Funds | ||||||||||||||||
United States | 27,819 | 0 | 0 | 27,819 | ||||||||||||
U.S. Treasury Obligations | ||||||||||||||||
United States | 0 | 3,204 | 0 | 3,204 | ||||||||||||
Short-Term Instruments | ||||||||||||||||
Repurchase Agreements | 0 | 524 | 0 | 524 | ||||||||||||
U.S. Treasury Bills | 0 | 38,882 | 0 | 38,882 | ||||||||||||
U.S. Treasury Cash Management Bills | 0 | 3,500 | 0 | 3,500 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
$ | 373,568 | $ | 73,282 | $ | 0 | $ | 446,850 | |||||||||
|
|
|
|
|
|
|
| |||||||||
Investments in Affiliates, at Value |
| |||||||||||||||
Short-Term Instruments | ||||||||||||||||
Central Funds Used for Cash Management Purposes | $ | 85,566 | $ | 0 | $ | 0 | $ | 85,566 | ||||||||
|
|
|
|
|
|
|
| |||||||||
Total Investments | $ | 459,134 | $ | 73,282 | $ | 0 | $ | 532,416 | ||||||||
|
|
|
|
|
|
|
|
Category and Subcategory | Level 1 | Level 2 | Level 3 | Fair Value at 12/31/2017 | ||||||||||||
Short Sales, at Value - Liabilities |
| |||||||||||||||
China | ||||||||||||||||
Consumer Discretionary | $ | (2,899 | ) | $ | 0 | $ | 0 | $ | (2,899 | ) | ||||||
Switzerland | ||||||||||||||||
Information Technology | 0 | (4,548 | ) | 0 | (4,548 | ) | ||||||||||
United Kingdom | ||||||||||||||||
Industrials | 0 | (2,295 | ) | 0 | (2,295 | ) | ||||||||||
United States | ||||||||||||||||
Consumer Discretionary | (20,914 | ) | 0 | 0 | (20,914 | ) | ||||||||||
Consumer Staples | (17,748 | ) | 0 | 0 | (17,748 | ) | ||||||||||
Energy | (12,712 | ) | 0 | 0 | (12,712 | ) | ||||||||||
Financials | (16,325 | ) | 0 | 0 | (16,325 | ) | ||||||||||
Health Care | (9,920 | ) | 0 | 0 | (9,920 | ) | ||||||||||
Industrials | (10,527 | ) | 0 | 0 | (10,527 | ) | ||||||||||
United States | (2,770 | ) | 0 | 0 | (2,770 | ) | ||||||||||
United Kingdom |
| |||||||||||||||
Industrials | 0 | (2 | ) | 0 | (2 | ) | ||||||||||
United States | (5,660 | ) | 0 | 0 | (5,660 | ) | ||||||||||
|
|
|
|
|
|
|
| |||||||||
$ | (99,475 | ) | $ | (6,845 | ) | $ | 0 | $ | (106,320 | ) | ||||||
|
|
|
|
|
|
|
| |||||||||
Financial Derivative Instruments - Assets |
| |||||||||||||||
Exchange-traded or centrally cleared | 94 | 0 | 0 | 94 | ||||||||||||
Over the counter | 0 | 269 | 0 | 269 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
$ | 94 | $ | 269 | $ | 0 | $ | 363 | |||||||||
|
|
|
|
|
|
|
| |||||||||
Financial Derivative Instruments - Liabilities |
| |||||||||||||||
Exchange-traded or centrally cleared | (112 | ) | (63 | ) | 0 | (175 | ) | |||||||||
Over the counter | 0 | (256 | ) | 0 | (256 | ) | ||||||||||
|
|
|
|
|
|
|
| |||||||||
$ | (112 | ) | $ | (319 | ) | $ | 0 | $ | (431 | ) | ||||||
|
|
|
|
|
|
|
| |||||||||
Total Financial Derivative Instruments | $ | (18 | ) | $ | (50 | ) | $ | 0 | $ | (68 | ) | |||||
|
|
|
|
|
|
|
| |||||||||
Totals | $ | 359,641 | $ | 66,387 | $ | 0 | $ | 426,028 | ||||||||
|
|
|
|
|
|
|
|
There were no significant transfers among Levels 1, 2, or 3 during the period ended December 31, 2017.
44 | PIMCO EQUITY SERIES | See Accompanying Notes |
Table of Contents
December 31, 2017 (Unaudited)
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 D, 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 equity portion of the PIMCO Dividend and Income Fund. PIMCO and Research Affiliates have also engaged Parametric Portfolio Associates, LLC (“Parametric”) to implement the investment strategies of the equity portion of the PIMCO Dividend and Income Fund.
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 beyond a standard settlement period for the security after the trade date. Realized gains (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 a 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, with the exception of securities with a forward starting effective date, where interest income is recorded on the accrual basis from effective 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. Paydown gains (losses) on mortgage-related and other asset-backed securities, if any, are recorded as components of interest income on the Statements of Operations. Income or short-term capital gain distributions received from registered investment companies, if any, are recorded as dividend income. Long-term capital gain distributions received from registered investment companies, if any, 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 denominated in foreign currencies 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 gain (loss) and net change in unrealized appreciation (depreciation) 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. Realized foreign exchange gains (losses) arising from sales of spot foreign currencies, currency gains (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 (loss) on foreign currency transactions on the Statements of Operations. Net unrealized foreign exchange gains (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 (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
SEMIANNUAL REPORT | DECEMBER 31, 2017 | 45 |
Table of Contents
Notes to Financial Statements (Cont.)
that class of shares). Income and non-class specific expenses are allocated daily to each class on the basis of the relative net assets. Realized and unrealized capital gains (losses) are allocated daily based on the relative net assets of each class of the respective Fund. Class specific expenses, where applicable, currently include supervisory and administrative and distribution and servicing fees. Under certain circumstances, the per share net asset value (“NAV”) of a class of the respective 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.
(d) Distributions to Shareholders The following table shows the anticipated frequency of distributions from net investment income, if any, for each Fund.
Distribution Frequency | ||||||||||||
Fund Name | Declared | Distributed | ||||||||||
PIMCO Dividend and Income Fund | Quarterly | Quarterly | ||||||||||
PIMCO EqS® Long/Short Fund | Annually | Annually |
Net realized capital gains earned by each Fund, if any, will be distributed no less frequently than once each year.
Income distributions 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. Further, the character of investment income and capital gains may be different for certain transactions under the two methods of accounting. As a result, income distributions 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.
If a Fund estimates that a portion of one of its dividend distributions may be comprised of amounts from sources other than net investment income in accordance with its policies and good accounting practices, the Fund will notify shareholders of record of the estimated composition of such distribution through a Section 19 Notice. For these purposes, a Fund estimates the source or sources from which a distribution is paid, to the close of the period as of which it is paid, in reference to its internal accounting records and related accounting practices. If, based on such accounting records and practices, it is estimated that a particular distribution does not include capital gains or paid-in surplus or other capital sources, a Section 19 Notice generally would not be issued. It is important to note that differences exist between a Fund’s daily internal accounting records and practices, a Fund’s financial statements presented in accordance with U.S. GAAP, and recordkeeping practices under income tax regulations. For instance, a Fund’s internal accounting records and practices may take
into account, among other factors, tax-related characteristics of certain sources of distributions that differ from treatment under U.S. GAAP. Examples of such differences may include, among others, the treatment of paydowns on mortgage-backed securities purchased at a discount and periodic payments under interest rate swap contracts. Accordingly, among other consequences, it is possible that a Fund may not issue a Section 19 Notice in situations where the Fund’s financial statements prepared later and in accordance with U.S. GAAP and/or the final tax character of those distributions might later report that the sources of those distributions included capital gains and/or a return of capital. Please visit www.pimco.com for the most recent Section 19 Notice, if applicable, for additional information regarding the estimated composition of distributions. Final determination of a distribution’s tax character will be reported on Form 1099 DIV sent to shareholders for the calendar year.
Distributions classified as a tax basis return of capital, if any, are reflected on the 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 gain (loss) and/or paid in capital to more appropriately conform U.S. GAAP to tax characterizations of distributions.
(e) New Accounting Pronouncements In March 2016, the Financial Accounting Standards Board (“FASB”) issued an Accounting Standards Update (“ASU”), ASU 2016-05, which provides guidance related to the impact of derivative contract novations on certain relationships under Accounting Standards Codification (“ASC”) 815. The ASU is effective for annual periods beginning after December 15, 2016, and interim periods within those annual periods. The Funds have adopted the ASU. The implementation of the ASU did not have an impact on the Funds’ financial statements.
In August 2016, the FASB issued ASU 2016-15 which amends ASC 230 to clarify guidance on the classification of certain cash receipts and cash payments in the Statement of Cash Flows. The ASU is effective for annual periods beginning after December 15, 2017, and interim periods within those annual periods. At this time, management is evaluating the implications of these changes on the financial statements.
In October 2016, the U.S. Securities and Exchange Commission (“SEC”) adopted new rules and forms, and amendments to certain current rules and forms, to modernize reporting and disclosure of information by registered investment companies. The amendments to Regulation S-X require standardized, enhanced disclosure about derivatives in investment company financial statements, and also change the rules governing the form and content of such financial
46 | PIMCO EQUITY SERIES |
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December 31, 2017 (Unaudited)
statements. The compliance date for these amendments was August 1, 2017. Compliance is based on reporting period-end date. Management has adopted these amendments and the changes are incorporated in the financial statements.
In November 2016, the FASB issued ASU 2016-18 which amends ASC 230 to provide guidance on the classification and presentation of changes in restricted cash and restricted cash equivalents on the Statement of Cash Flows. The ASU is effective for annual periods beginning after December 15, 2017, and interim periods within those annual periods. At this time, management is evaluating the implications of these changes on the financial statements.
In March 2017, the FASB issued ASU 2017-08 which provides guidance related to the amortization period for certain purchased callable debt securities held at a premium. The ASU is effective for annual periods beginning after December 15, 2018, and interim periods within those annual periods. The Funds have adopted the ASU. The implementation of the ASU did not have an impact on the Funds’ 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, or each of its share classes, as applicable, is determined by dividing the total value of portfolio investments and other assets, less any liabilities attributable to that Fund or class, by the total number of shares outstanding of that Fund or class.
On each day that the New York Stock Exchange (“NYSE”) is open, Fund shares are ordinarily valued as of the close of regular trading (“NYSE Close”). 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 as of which its respective NAV is calculated if the Fund closes earlier, or as permitted by the SEC.
For purposes of calculating a 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. If market value
pricing is used, 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 Adviser 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. A Fund’s investments in open-end management investment companies, other than exchange-traded funds (“ETFs”), are valued at the NAVs of such investments. Open-end management investment companies may include affiliated funds.
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 of the Trust (the “Board”). 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, a 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, a 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 foreign (non-U.S.) securities. For these purposes, any movement in the applicable reference index or instrument (“zero trigger”) between the earlier close of the applicable foreign market and the NYSE Close may be deemed to be a significant event, prompting the application of the pricing model (effectively resulting in daily fair valuations). Foreign 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
SEMIANNUAL REPORT | DECEMBER 31, 2017 | 47 |
Table of Contents
Notes to Financial Statements (Cont.)
Fund’s portfolio investments being affected when shareholders 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 value of such investments and, in turn, 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 investments 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.) investments, the value of those investments may change at times when shareholders are unable to buy or sell shares and the value of such investments will be reflected in the Fund’s next calculated NAV.
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 or persons acting at their direction. The Board has adopted methods for valuing securities and other assets in circumstances where market quotes are not readily available, and has delegated to the Adviser 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 (“Valuation Oversight Committee”), generally based on recommendations provided by the Adviser. The Adviser may consult with the Sub-Adviser or Parametric in providing such recommendations or otherwise with respect to valuation of the PIMCO Dividend and Income 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, indicative market quotations (“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 a 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 the Adviser the responsibility for monitoring significant events that may materially affect the values of a 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 a Fund uses fair valuation to determine the value of a portfolio security or other asset for purposes of calculating its NAV, such investments 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 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 a 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 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 a 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 each Fund’s prospectus.
(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:
∎ | Level 1 — Quoted prices in active markets or exchanges for identical assets and liabilities. |
∎ | 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. |
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December 31, 2017 (Unaudited)
∎ | 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 into 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 realized gain (loss), unrealized appreciation (depreciation), purchases and sales, accrued discounts (premiums), and transfers into and out of the Level 3 category during the period. The end of period value 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 and liabilities 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 Services that use broker-dealer quotations, reported trades or valuation estimates from their internal pricing models. The Pricing Services’ internal models use inputs that are observable such as issuer details, interest rates, yield curves, prepayment speeds, credit risks/spreads, default rates and quoted 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 Services 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, ETFs, exchange-traded notes and financial derivative instruments, such as futures contracts, rights and warrants, 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.
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 Services 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.
Investments in registered open-end investment companies (other than ETFs) 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.
Equity exchange-traded options and over the counter financial derivative instruments, such as forward foreign currency contracts and options contracts derive their value from underlying asset prices, indices, reference rates, and other inputs or a combination of these factors. These contracts are normally valued on the basis of quotes
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Table of Contents
Notes to Financial Statements (Cont.)
obtained from a quotation reporting system, established market makers or Pricing Services (normally determined as of the NYSE Close). Depending on the product and the terms of the transaction, financial derivative instruments can be valued by Pricing Services 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 and over the counter swaps derive their value from underlying asset prices, indices, reference rates, and other inputs or a combination of these factors. They are valued using a broker-dealer bid quotation or on market-based prices provided by Pricing Services (normally determined as of the NYSE close). Centrally cleared swaps and over the counter swaps can be valued by Pricing Services using a series of techniques, including simulation pricing models. The
pricing models may use inputs that are observed from actively quoted markets such as the overnight index swap rate (“OIS”), London Interbank Offered Rate (“LIBOR”) forward rate, interest rates, yield curves and credit spreads. These securities 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 the Adviser that uses significant unobservable inputs, investments 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.
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 instruments is approximately the same as the fair value of the instrument as determined without the use of amortized cost valuation. These securities are categorized as Level 2 or Level 3 of the fair value hierarchy depending on the source of the base price.
4. SECURITIES AND OTHER INVESTMENTS
(a) Investments in Affiliates
Each Fund may invest in the PIMCO Short Asset Portfolio and the 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 other series of registered investment companies advised by the Adviser, 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 Fees or Supervisory and Administrative Fees to the Adviser. 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 affiliated Funds for the period ended December 31, 2017 (amounts in thousands†):
Investments in PIMCO Short-Term Floating NAV Portfolio III
Fund Name | Market Value 06/30/2017 | Purchases at Cost | Proceeds from Sales | Net Realized Gain (Loss) | Change in Unrealized Appreciation (Depreciation) | Market Value 12/31/2017 | Dividend Income(1) | Realized Net Capital Gain Distributions(1) | ||||||||||||||||||||||||||||
PIMCO Dividend and Income Fund | $ | 2,789 | $ | 18,308 | $ | (15,800 | ) | $ | 0 | $ | 2 | $ | 5,299 | $ | 8 | $ | 0 | |||||||||||||||||||
PIMCO EqS® Long/Short Fund | 166,968 | 203,827 | (285,200 | ) | (34 | ) | 5 | 85,566 | 1,027 | 0 |
† | A zero balance may reflect actual amounts rounding to less than one thousand. |
(1) | The tax characterization of distributions is determined in accordance with Federal income tax regulations and may contain a return of capital. The actual tax characterization of distributions received is determined at the end of the fiscal year of the affiliated fund. See Note 2, Distributions to Shareholders, in the Notes to Financial Statements for more information. |
(b) Investments in Securities
The Funds may utilize the investments and strategies described below to the extent permitted by each Fund’s respective investment policies.
Exchange-Traded Funds typically are index-based investment companies that hold substantially all of their assets in securities representing their specific index, but may also be actively-managed investment companies. Shares of ETFs trade throughout the day on an
exchange and represent an investment in a portfolio of securities and other assets. As a shareholder of another investment company, a Fund would bear their pro rata portion of the other investment company’s expenses, including advisory fees, in addition to the expenses the Funds bear directly in connection with their own operations. Investments in ETFs entail certain risks; in particular, investments in index ETFs involve the risk that the ETF’s performance may not track the performance of the index the ETF is designed to track.
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Loan Participations, Assignments and Originations are 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 or assignments of all or a portion of loans from third parties or investments in or originations of loans by the Fund or Funds. A loan is often administered by a bank or other financial institution (the “agent”) 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 agents it acquires direct rights against the borrowers of the loans. 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 agent selling the loan agreement and only upon receipt of payments by the agent 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 December 31, 2017, the Funds had $200,000 in unfunded loan commitments outstanding.
Mortgage-Related and Other Asset-Backed Securities 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 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 Debt Obligations (“CDOs”) include Collateralized Bond Obligations (“CBOs”), Collateralized Loan Obligations (“CLOs”) and other similarly structured securities. CBOs and CLOs are types of asset-backed securities. A CBO is a trust which is backed by a diversified pool of high risk, below investment grade fixed income securities. A CLO is a trust typically collateralized by a pool of loans, which may include, among others, domestic and foreign senior secured loans, senior unsecured loans, and subordinate corporate loans, including loans that may be rated below investment grade or equivalent unrated loans. The risks of an investment in a CDO depend largely on the type of the collateral securities and the class of the CDO in which a Fund invests. In addition to the normal risks associated with fixed income securities discussed elsewhere in this report and each Fund’s prospectus and statement of additional information (e.g., prepayment risk, credit risk, liquidity risk, market risk, structural risk, legal risk and interest rate risk (which may be exacerbated if the interest rate payable on a structured financing changes based on multiples of changes in interest rates or inversely to changes in interest rates)), CBOs, CLOs and other CDOs carry additional risks including, but not limited to, (i) the possibility that distributions from collateral securities will not be adequate to make
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interest or other payments, (ii) the quality of the collateral may decline in value or default, (iii) a Fund may invest in CBOs, CLOs, or other CDOs that are subordinate to other classes, and (iv) the complex structure of the security may not be fully understood at the time of investment and may produce disputes with the issuer or unexpected investment results.
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.
Real Estate Investment Trusts (“REITs”) are pooled investment vehicles that own, and typically operate, income-producing real estate. If a REIT meets certain requirements, including distributing to shareholders substantially all of its taxable income (other than net capital gains), then it is not taxed on the income distributed to shareholders. Distributions received from REITs may be characterized as income, capital gain or a return of capital. A return of capital is recorded by a Fund as a reduction to the cost basis of its investment in the REIT. REITs are subject to management fees and other expenses, and so the Funds that invest in REITs will bear their proportionate share of the costs of the REITs’ operations.
Payment In-Kind Securities (“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 (depreciation) on investments to interest receivable on the Statements of Assets and Liabilities.
Securities Issued by U.S. Government Agencies or Government-Sponsored Enterprises 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.
Roll-timing strategies can be used where a Fund seeks to extend the expiration or maturity of a position, such as a TBA security on an underlying asset, by closing out the position before expiration and opening a new position with respect to substantially the same underlying asset with a later expiration date. TBA securities purchased or sold are reflected on the Statements of Assets and Liabilities as an asset or liability, respectively.
5. BORROWINGS AND OTHER FINANCING TRANSACTIONS
The Funds may enter into the borrowings and other financing transactions described below to the extent permitted by each Fund’s respective investment policies.
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 of these instruments in each Fund’s financial statements is described below.
(a) Repurchase Agreements Under the terms of a typical repurchase agreement, a Fund purchases 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. In an open maturity repurchase agreement, there is no pre-determined repurchase date and the agreement can be terminated by the Fund or counterparty
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at any time. The underlying securities for all repurchase agreements are held by a Fund’s custodian or designated subcustodians under tri-party repurchase agreements and in certain instances will remain in custody with the counterparty. The market value of the collateral must be equal to or exceed the total amount of the repurchase obligations, including interest. Repurchase agreements, if any, 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 the receipt of collateral, which may result in interest expense to the Fund.
(b) Reverse Repurchase Agreements In a reverse repurchase agreement, a Fund delivers a security in exchange for cash 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. In an open maturity reverse repurchase agreement, there is no pre-determined repurchase date and the agreement can be terminated by the Fund or counterparty at any time. A Fund is entitled to receive principal and interest payments, if any, made on the security delivered to the counterparty during the term of the agreement. Cash received in exchange for securities delivered plus accrued interest payments to be made by a Fund to counterparties are reflected as a liability on the Statements of Assets and Liabilities. Interest payments 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 the Adviser or will otherwise cover its obligations under reverse repurchase agreements.
(c) Sale-Buybacks A sale-buyback financing 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 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 the Adviser or will otherwise cover its obligations under sale-buyback transactions.
(d) Short Sales Short sales are transactions in which a Fund sells a security that it may not own. A Fund may make short sales of securities to (i) offset potential declines in long positions in similar securities, (ii) to increase the flexibility of the Fund, (iii) for investment return, (iv) as part of a risk arbitrage strategy, and (v) as part of its overall portfolio management strategies involving the use of derivative instruments. When a Fund engages in a short sale, it may borrow the security sold short and deliver it to the counterparty. A Fund will ordinarily have to pay a fee or premium to borrow a security and be obligated to repay the lender of the security any dividend or interest that accrues on the security during the period of the loan. Securities sold in short sale transactions and the dividend or interest payable on such securities, if any, are reflected as payable for short sales on the Statements of Assets and Liabilities. Short sales expose a Fund to the risk that it will be required to cover its short position at a time when the security or other asset has appreciated in value, thus resulting in losses to a Fund. A short sale is “against the box” if a Fund holds in its portfolio or has the right to acquire the security sold short at no additional cost. A Fund will be subject to additional risks to the extent that it engages in short sales that are not “against the box.” A Fund’s loss on a short sale could theoretically be unlimited in cases where a Fund is unable, for whatever reason, to close out its short position.
6. FINANCIAL DERIVATIVE INSTRUMENTS
The Funds may enter into the financial derivative instruments described below to the extent permitted by each Fund’s respective investment policies.
The following disclosures contain information on how and why the Funds use financial derivative instruments, and how financial derivative instruments affect the Funds’ financial position, results of operations and cash flows. The location and fair value amounts of these instruments on the Statements of Assets and Liabilities and the net realized gain (loss) and net change in unrealized appreciation (depreciation) 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 net realized gain (loss) and net change in unrealized
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appreciation (depreciation) 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 may be engaged, 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 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 (loss). Realized gains (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 (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 are agreements to buy or sell a security or other asset for a set price on a future date. 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 (“Futures Variation Margin”). Gains (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 the Futures Variation Margin included within exchange traded or centrally cleared financial derivative instruments on the Statements of Assets and Liabilities.
(c) Options Contracts may be written or purchased to enhance returns or to hedge an existing position or future investment. A Fund may write call and put options on securities and financial derivative instruments it owns or in which it 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, swap, security or currency transaction to determine the realized gain (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.
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 (loss) when the underlying transaction is executed.
Foreign Currency Options may be written or purchased to be used as a short or long hedge against possible variations in foreign exchange rates or to gain exposure to foreign currencies. Purchasing foreign currency options gives a Fund the right, but not the obligation to buy or sell specified amounts of currency at a rate of exchange that may be exercised by a certain date.
Options on Securities may be written or purchased to enhance returns or to hedge an existing position or future investment. An option on a security uses a specified security as the underlying instrument for the option contract.
(d) Swap Agreements are bilaterally negotiated agreements between a Fund and a counterparty to exchange or swap investment cash flows,
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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.
Centrally Cleared 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 (“Swap Variation Margin”), if any, are disclosed within centrally cleared financial derivative instruments on the Statements of Assets and Liabilities. Centrally Cleared and 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 gain (loss) 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 (loss) on the Statements of Operations. Net periodic payments received or paid by a Fund are included as part of realized gain (loss) on the Statements of Operations.
For purposes of applying a Fund’s investment policies and restrictions, swap agreements are generally valued by a Fund at market value. In the case of a credit default swap, in applying certain of a Fund’s investment policies and restrictions, the Funds will value the credit default swap at its notional value or its full exposure value (i.e., the sum of the notional amount for the contract plus the market value), but may value the credit default swap at market value for purposes of applying certain of a Fund’s other investment policies and restrictions. For example, a Fund may value credit default swaps at full exposure value for purposes of a Fund’s credit quality guidelines (if any) because such value in general better reflects a Fund’s actual economic exposure
during the term of the credit default swap agreement. As a result, a Fund may, at times, have notional exposure to an asset class (before netting) that is greater or lesser than the stated limit or restriction noted in a Fund’s prospectus. In this context, both the notional amount and the market value may be positive or negative depending on whether a Fund is selling or buying protection through the credit default swap. The manner in which certain securities or other instruments are valued by a Fund for purposes of applying investment policies and restrictions may differ from the manner in which those investments are valued by other types of investors.
Entering into swap 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 or the values of the asset upon which the swap is based.
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 may be 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.
To the extent a Fund has a policy to limit the net amount owed to or to be received from a single counterparty under existing swap agreements, such limitation only applies to counterparties to OTC swaps and does not apply to centrally cleared swaps where the counterparty is a central counterparty or derivatives clearing organization.
Credit Default Swap Agreements on corporate, loan, sovereign, U.S. municipal or U.S. Treasury issues are entered into 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 involve one party making a stream of payments (referred to as the buyer of protection) to another party (the seller of protection) in exchange for the right to receive a specified return in the event that the referenced entity, obligation or index, as specified in the swap 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
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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. 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).
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, loan, sovereign, U.S. municipal or U.S. Treasury issues as of period end, if any, 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 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 may be entered into to help hedge against interest rate risk exposure and to maintain a Fund’s ability to generate income at prevailing market rates. The value of the fixed rate bonds that the Funds hold 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
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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.
Total Return Swap Agreements are entered into to gain or mitigate exposure to the underlying reference asset. Total return swap agreements involve commitments where single or multiple cash flows are exchanged based on the price of an underlying reference asset 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 underlying reference asset, which may include a single security, a basket of securities, or an index, 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 asset less a financing rate, if any. As a receiver, a Fund would receive payments based on any net positive total return and would owe payments in the event of a net 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 net negative total return.
7. PRINCIPAL RISKS
The principal risks of investing in a Fund, which could adversely affect its net asset value, yield and total return, are listed below.
PIMCO Dividend and Income Fund | PIMCO EqS® Long/Short Fund | |||||||||||
Risks | ||||||||||||
Equity | X | X | ||||||||||
Dividend-Oriented Stocks | X | |||||||||||
Value Investing | X | X | ||||||||||
Foreign (Non-U.S.) Investment | X | X | ||||||||||
Emerging Markets | X | X | ||||||||||
Sovereign Debt | X | X |
PIMCO Dividend and Income Fund | PIMCO EqS® Long/Short Fund | |||||||||||
Risks | ||||||||||||
Market | X | X | ||||||||||
Issuer | X | X | ||||||||||
Interest Rate | X | X | ||||||||||
Call | X | X | ||||||||||
Credit | X | X | ||||||||||
High Yield and Distressed Company | X | X | ||||||||||
Currency | X | X | ||||||||||
Real Estate | X | X | ||||||||||
Liquidity | X | X | ||||||||||
Leveraging | X | X | ||||||||||
Management | X | X | ||||||||||
Small-Cap and Mid-Cap Company | X | X | ||||||||||
Derivatives | X | X | ||||||||||
Model | X | |||||||||||
Mortgage-Related and Other Asset-Backed | X | |||||||||||
Short Exposure | X | X | ||||||||||
Convertible Securities | X | X | ||||||||||
Issuer Non-Diversification | X | |||||||||||
Cash Holdings | X |
Please see “Description of Principal Risks” in a Fund’s prospectus for a more detailed description of the risks of investing in a Fund.
Equity Risk is the risk that the value of equity securities, such as common stocks and preferred securities, may decline due to general market conditions which are not specifically related to a particular company or to factors affecting a particular industry or industries. Equity securities generally have greater price volatility than fixed income securities.
Dividend-Oriented Stocks Risk is the risk that companies that have paid regular dividends to shareholders may decrease or eliminate dividend payments in the future. A decrease in dividend payments by an issuer may result in a decrease in the value of the security held by a Fund or a Fund receiving less income. In addition, equity securities with higher dividend yields may be sensitive to changes in interest rates, and as interest rates rise, the prices of such securities may fall. A Fund’s use of a dividend capture strategy (i.e., purchasing an equity security shortly before the issuer pays a dividend and selling it shortly thereafter) exposes a Fund to higher portfolio turnover, increased trading costs, the potential for capital loss, particularly in the event of significant short-term price movements of stocks subject to dividend capture trading and may result in negative tax consequences.
Value Investing Risk is the risk that 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.
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Foreign (Non-U.S.) Investment Risk is the risk that investing in foreign (non-U.S.) securities may result in a Fund experiencing more rapid and extreme changes in value than a fund that invests exclusively in securities of U.S. companies, due to smaller markets, differing reporting, accounting and auditing standards, increased risk of delayed settlement of portfolio transactions or loss of certificates of portfolio securities, and the risk of unfavorable foreign government actions, including nationalization, expropriation or confiscatory taxation, currency blockage, or political changes or diplomatic developments. Foreign securities may also be less liquid and more difficult to value than securities of U.S. issuers.
Emerging Markets Risk is the risk of investing in emerging market securities, primarily increased foreign (non-U.S.) investment risk.
Sovereign Debt Risk is the risk that investments in fixed income instruments issued by sovereign entities may decline in value as a result of default or other adverse credit event resulting from an issuer’s inability or unwillingness to make principal or interest payments in a timely fashion.
Market Risk is the risk that the value of securities owned by a Fund may go up or down, sometimes rapidly or unpredictably, due to factors affecting securities markets generally or particular industries.
Issuer Risk is the risk that the value of a security may decline for a reason directly related to the issuer, such as management performance, financial leverage and reduced demand for the issuer’s goods or services.
Interest Rate Risk is the risk that fixed income securities and dividend-paying equity securities will decline in value because of an increase in interest rates; a fund with a longer average portfolio duration will be more sensitive to changes in interest rates than a fund with a shorter average portfolio duration.
Call Risk is the risk that an issuer may exercise its right to redeem a fixed income security earlier than expected (a call). Issuers may call outstanding securities prior to their maturity for a number of reasons (e.g., declining interest rates, changes in credit spreads and improvements in the issuer’s credit quality). If an issuer calls a security that a Fund has invested in, a Fund may not recoup the full amount of its initial investment and may be forced to reinvest in lower-yielding securities, securities with greater credit risks or securities with other, less favorable features.
Credit Risk is the risk that a Fund could lose money if the issuer or guarantor of a fixed income security, or the counterparty to a derivative contract, is unable or unwilling to meet its financial obligations.
High Yield and Distressed Company Risk is the risk that high yield securities and unrated securities of similar credit quality (commonly
known as “junk bonds”) and securities of distressed companies may be subject to greater levels of credit, issuer and liquidity risks. Securities of distressed companies include both debt and equity securities. High yield securities and debt securities of distressed companies are considered primarily speculative with respect to the issuer’s continuing ability to make principal and interest payments. Distressed companies may be engaged in restructurings or bankruptcy proceedings.
Currency Risk is the risk that foreign (non-U.S.) currencies will change in value relative to the U.S. dollar and affect a Fund’s investments in foreign (non-U.S.) currencies or in securities that trade in, and receive revenues in, or in derivatives that provide exposure to, foreign (non-U.S.) currencies.
Real Estate Risk is the risk that a Fund’s investments in Real Estate Investment Trusts (“REITs”) or real estate-linked derivative instruments will subject a Fund to risks similar to those associated with direct ownership of real estate, including losses from casualty or condemnation, and changes in local and general economic conditions, supply and demand, interest rates, zoning laws, regulatory limitations on rents, property taxes and operating expenses. A Fund’s investments in REITs or real estate-linked derivative instruments subject it to management and tax risks. In addition, privately traded REITs subject a Fund to liquidity and valuation risk.
Liquidity Risk is the risk that a particular investment may be difficult to purchase or sell and that a Fund may be unable to sell illiquid securities at an advantageous time or price or achieve its desired level of exposure to a certain sector.
Leveraging Risk is the risk that certain transactions of a Fund, such as reverse repurchase agreements, loans of portfolio securities, and the use of when-issued, delayed delivery or forward commitment transactions, or derivative instruments, may give rise to leverage, magnifying gains and losses and causing a Fund to be more volatile than if it had not been leveraged. This means that leverage entails a heightened risk of loss.
Issuer Non-Diversification Risk is the risk of focusing investments in a small number of issuers, including being more susceptible to risks associated with a single economic, political or regulatory occurrence than a more diversified portfolio might be. Funds that are “non-diversified” may invest a greater percentage of their assets in the securities of a single issuer than funds that are “diversified”.
Management Risk is the risk that the investment techniques and risk analyses applied by PIMCO will not produce the desired results and that legislative, regulatory, or tax restrictions, policies or developments may affect the investment techniques available to PIMCO and the individual portfolio manager in connection with managing a Fund. There is no guarantee that the investment objective of a Fund will be achieved.
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Small-Cap and Mid-Cap Company Risk is the risk that the value of securities issued by small-capitalization and mid-capitalization companies may go up or down, sometimes rapidly and unpredictably, due to narrow markets and limited managerial and financial resources.
Derivatives Risk is the risk of investing in derivative instruments (such as futures, swaps and structured securities), including leverage, liquidity, interest rate, market, credit and management risks, mispricing or valuation complexity. Changes in the value of the derivative may not correlate perfectly with, and may be more sensitive to market events than, the underlying asset, rate or index, and a Fund could lose more than the initial amount invested. A Fund’s use of derivatives may result in losses to the Fund, a reduction in a Fund’s returns and/or increased volatility. Over-the-counter (“OTC”) derivatives are also subject to the risk that a counterparty to the transaction will not fulfill its contractual obligations to the other party, as many of the protections afforded to centrally-cleared derivative transactions might not be available for OTC derivatives. For derivatives traded on an exchange or through a central counterparty, credit risk resides with a Fund’s clearing broker, or the clearinghouse itself, rather than with a counterparty in an OTC derivative transaction. Changes in regulation relating to a mutual fund’s use of derivatives and related instruments could potentially limit or impact a Fund’s ability to invest in derivatives, limit a Fund’s ability to employ certain strategies that use derivatives and/or adversely affect the value of derivatives and a Fund’s performance.
Model Risk is the risk that a Fund’s investment models used in making investment allocation decisions may not adequately take into account certain factors and may result in a decline in the value of an investment in a Fund.
Mortgage-Related and Other Asset-Backed Risk is the risk of investing in mortgage-related and other asset-backed securities, including interest rate risk, extension risk, prepayment risk and credit risk.
Short Exposure Risk is the risk of entering into short sales, including the potential loss of more money than the actual cost of the investment, and the risk that the third party to the short sale will not fulfill its contractual obligations, causing a loss to a Fund.
Convertible Securities Risk is the risk that arises when convertible securities share both fixed income and equity characteristics. Convertible securities are subject to risks to which fixed income and equity investments are subject. These risks include equity risk, interest rate risk and credit risk.
Cash Holdings Risk is the risk of holding large cash positions, including lower returns and potential lost opportunities to participate in market appreciation.
8. MASTER NETTING ARRANGEMENTS
A Fund may be subject to various netting arrangements (“Master Agreements”) with select counterparties. 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 present 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 most 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 depending on the terms outlined in the applicable Master Agreement. 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 with counterparty. 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 from counterparty. 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 Schedules of Investments.
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Master Securities Forward Transaction Agreements (“Master Forward Agreements”) govern certain forward settling transactions, such as TBA 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, transaction 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 Schedules of Investments.
Customer Account Agreements and related addenda govern cleared derivatives transactions such as futures, options on futures, and cleared OTC derivatives. Such transactions require posting of initial margin as determined by each relevant clearing agency which is segregated in an account at a futures commission merchant (“FCM”) registered with the Commodity Futures Trading Commission (“CFTC”). In the United States, counterparty risk may be reduced as creditors of an FCM cannot have a claim to Fund assets in the segregated account. Portability of exposure 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 unless the parties have agreed to a separate arrangement in respect of portfolio margining. The market value or accumulated unrealized appreciation (depreciation), initial margin posted, and any unsettled variation margin as of period end are disclosed in the Notes to Schedules 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 Schedules of Investments.
International Swaps and Derivatives Association, Inc. Master Agreements and Credit Support Annexes (“ISDA Master Agreements”) govern bilateral OTC derivative transactions entered into by a Fund with select counterparties. ISDA Master Agreements maintain provisions for general obligations, representations, agreements, collateral posting 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 Schedules of Investments.
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 in note (b) 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 Fees and Supervisory and Administrative Fees for all classes, as applicable, are charged at the annual rate as noted in the following table (calculated as a percentage of each Fund’s average daily net assets attributable to each class):
Investment Advisory Fee | Supervisory and Administrative Fee | |||||||||||||||||||||||||||||||
Fund Name | All Classes | Institutional Class | Class P | Class D | Class A | Class C | ||||||||||||||||||||||||||
PIMCO Dividend and Income Fund | 0.49% | 0.30% | 0.40% | 0.40% | 0.40% | 0.40% | ||||||||||||||||||||||||||
PIMCO EqS® Long/Short Fund | 1.04% | 0.45% | 0.55% | 0.55% | 0.55% | 0.55% |
(c) Distribution and Servicing Fees PIMCO Investments LLC, 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 and Class C shares of the Trust pursuant to Rule 12b-1 under the Act. In connection with the distribution of Class C
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shares of the Trust, the Distributor receives distribution fees from the Trust of up to 0.75% for Class C shares, and in connection with personal services rendered to Class A and Class C 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 and Class C 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 paid distribution and servicing fees at effective rates as noted 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 D | — | 0.25% | ||||||||||
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 shares. For the period ended December 31, 2017, the Distributor retained $40,489 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, 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.
Each Trustee, other than those affiliated with PIMCO or its affiliates, 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 and $750 for each Board meeting attended telephonically, 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, so that each co-lead individually receives an additional retainer of $1,000) 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 Pursuant to the Expense Limitation Agreement, PIMCO has agreed to waive a portion of the Funds’ Supervisory and Administrative Fee, or reimburse each Fund, to the extent that each Fund’s organizational expenses and pro rata share of Trustee Fees exceed 0.0049%, the “Expense Limit” (calculated as a percentage of each Fund’s average daily net assets attributable to each class). The Expense 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.
Pursuant to the Fee Waiver Agreement, PIMCO previously contractually agreed to reduce its Advisory Fee for the PIMCO Dividend and Income Fund. Effective June 16, 2016, this contractual agreement has been terminated. PIMCO may be reimbursed for these waived amounts in future periods, not to exceed thirty-six months after the waiver. The waiver is reflected in the Statement of Operations as a component of Waiver and/or Reimbursement by PIMCO.
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Under certain conditions, PIMCO may be reimbursed for these waived amounts in future periods, not to exceed thirty-six months after the waiver. The total recoverable amounts to PIMCO at December 31, 2017, were as follows (amounts in thousands):
Expiring within | ||||||||||||||||||||
Fund Name | 12 months | 13 - 24 months | 25 - 36 months | Total | ||||||||||||||||
PIMCO Dividend and Income Fund | $ | 1,407 | $ | 427 | $ | 29 | $ | 1,863 | ||||||||||||
PIMCO EqS® Long/Short Fund | 68 | 114 | 47 | 229 |
10. RELATED PARTY TRANSACTIONS
The Adviser, Administrator, and Distributor are related parties. Fees paid to these parties are disclosed in Note 9, Fees and Expenses, 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. 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, or an affiliate of 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 under the Act. Further, as defined under the procedures, each transaction is effected at the current market price. During the period ended December 31, 2017, the Funds below engaged in purchases and sales of securities pursuant to Rule 17a-7 under the Act (amounts in thousands†):
Fund Name | Purchases | Sales | ||||||||||
PIMCO Dividend and Income Fund | $ | 205 | $ | 5,770 | ||||||||
PIMCO EqS® Long/Short Fund | 0 | 621 |
† | A zero balance may reflect actual amounts rounding to less than one thousand. |
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 may involve correspondingly greater transaction costs 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 transaction 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 December 31, 2017, were as follows (amounts in thousands†):
U.S. Government/Agency | All Other | |||||||||||||||||||
Fund Name | Purchases | Sales | Purchases | Sales | ||||||||||||||||
PIMCO Dividend and Income Fund | $ | 104,242 | $ | 89,690 | $ | 37,297 | $ | 69,162 | ||||||||||||
PIMCO EqS® Long/Short Fund | 0 | 0 | 613,456 | 589,148 |
† | 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 $0.001 par value. Changes in shares of beneficial interest were as follows (shares and amounts in thousands†):
PIMCO Dividend and Income Fund | PIMCO EqS® Long/Short Fund | |||||||||||||||||||||||||||||||||
Six Months Ended 12/31/2017 | Year Ended 06/30/2017 | Six Months Ended 12/31/2017 | Year Ended 06/30/2017 | |||||||||||||||||||||||||||||||
Shares | Amount | Shares | Amount | Shares | Amount | Shares | Amount | |||||||||||||||||||||||||||
Receipts for shares sold | ||||||||||||||||||||||||||||||||||
Institutional Class | 298 | $ | 3,454 | 481 | $ | 5,077 | 3,412 | $ | 41,545 | 7,197 | $ | 85,903 | ||||||||||||||||||||||
Class P | 652 | 7,519 | 1,301 | 13,940 | 1,037 | 12,597 | 3,787 | 44,711 | ||||||||||||||||||||||||||
Class D | 62 | 719 | 239 | 2,512 | 1,433 | 17,242 | 1,894 | 22,459 | ||||||||||||||||||||||||||
Class A | 652 | 7,511 | 2,502 | 26,751 | 616 | 7,361 | 1,094 | 12,795 | ||||||||||||||||||||||||||
Class C | 292 | 3,381 | 1,240 | 13,111 | 221 | 2,544 | 733 | 8,292 | ||||||||||||||||||||||||||
Issued as reinvestment of distributions | ||||||||||||||||||||||||||||||||||
Institutional Class | 41 | 486 | 49 | 525 | 850 | 9,984 | 729 | 8,346 | ||||||||||||||||||||||||||
Class P | 31 | 364 | 29 | 313 | 537 | 6,263 | 693 | 7,887 | ||||||||||||||||||||||||||
Class D | 13 | 147 | 14 | 153 | 229 | 2,640 | 169 | 1,907 | ||||||||||||||||||||||||||
Class A | 193 | 2,268 | 207 | 2,207 | 382 | 4,401 | 485 | 5,471 | ||||||||||||||||||||||||||
Class C | 144 | 1,688 | 134 | 1,419 | 405 | 4,480 | 484 | 5,287 | ||||||||||||||||||||||||||
Cost of shares redeemed | ||||||||||||||||||||||||||||||||||
Institutional Class | (292 | ) | (3,364 | ) | (1,652 | ) | (17,251 | ) | (2,849 | ) | (34,825 | ) | (13,394 | ) | (159,365 | ) | ||||||||||||||||||
Class P | (528 | ) | (6,085 | ) | (2,530 | ) | (26,477 | ) | (2,892 | ) | (35,023 | ) | (14,564 | ) | (171,916 | ) | ||||||||||||||||||
Class D | (122 | ) | (1,408 | ) | (590 | ) | (6,226 | ) | (1,193 | ) | (14,338 | ) | (3,606 | ) | (41,959 | ) | ||||||||||||||||||
Class A | (1,855 | ) | (21,416 | ) | (6,527 | ) | (68,337 | ) | (1,125 | ) | (13,480 | ) | (7,030 | ) | (81,866 | ) | ||||||||||||||||||
Class C | (1,846 | ) | (21,145 | ) | (8,358 | ) | (87,665 | ) | (1,252 | ) | (14,453 | ) | (6,340 | ) | (71,525 | ) | ||||||||||||||||||
Net increase (decrease) resulting from Fund share transactions | (2,265 | ) | $ | (25,881 | ) | (13,461 | ) | $ | (139,948 | ) | (189 | ) | $ | (3,062 | ) | (27,669 | ) | $ | (323,573 | ) |
† | A zero balance may reflect actual amounts rounding to less than one thousand. |
14. REGULATORY AND LITIGATION MATTERS
The Funds are not named as defendants in any material litigation or arbitration proceedings and are not aware of any material litigation or claim pending or threatened against them.
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.
A Fund 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 December 31, 2017, 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. federal, state, and local tax returns as required. The Funds’ tax returns are subject to examination by relevant tax authorities until expiration of the applicable statute of limitations, which is generally three years after the filing of the tax return but which can be extended to six years in certain circumstances. Tax returns for open years have incorporated no uncertain tax positions that require a provision for income taxes.
Under the Regulated Investment Company Modernization 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 their last fiscal year ended June 30, 2017, the Funds had the following post-effective capital losses with no expiration (amounts in thousands†):
Short-Term | Long-Term | |||||||||||
PIMCO Dividend and Income Fund | $ | 66,361 | $ | 53,897 | ||||||||
PIMCO EqS® Long/Short Fund | 0 | 0 |
† | A zero balance may reflect actual amounts rounding to less than one thousand. |
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December 31, 2017 (Unaudited)
As of December 31, 2017, 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)(1) | |||||||||||||||||
PIMCO Dividend and Income Fund | $ | 320,342 | $ | 48,124 | $ | (10,009 | ) | $ | 38,115 | |||||||||||
PIMCO EqS® Long/Short Fund | 396,382 | 33,212 | (7,825 | ) | 25,387 |
(1) | Primary differences, if any, between book and tax net unrealized appreciation (depreciation) are attributable to wash sale loss deferrals for Federal income tax purposes. |
64 | PIMCO EQUITY SERIES |
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Glossary: (abbreviations that may be used in the preceding statements)
(Unaudited)
Counterparty Abbreviations: | ||||||||||
BOA | Bank of America N.A. | FICC | Fixed Income Clearing Corporation | MYC | Morgan Stanley Capital Services, Inc. | |||||
BOS | Banc of America Securities LLC | FOB | Credit Suisse Securities (USA) LLC | NGF | Nomura Global Financial Products, Inc. | |||||
BPS | BNP Paribas S.A. | GLM | Goldman Sachs Bank USA | RBC | Royal Bank of Canada | |||||
BRC | Barclays Bank PLC | GSC | Goldman Sachs & Co. | SAL | Citigroup Global Markets, Inc. | |||||
BSN | Bank of Nova Scotia | GST | Goldman Sachs International | SCX | Standard Chartered Bank | |||||
CBK | Citibank N.A. | HUS | HSBC Bank USA N.A. | SSB | State Street Bank and Trust Co. | |||||
DUB | Deutsche Bank AG | JPM | JP Morgan Chase Bank N.A. | UAG | UBS AG Stamford | |||||
FBF | Credit Suisse International | MSB | Morgan Stanley Bank, N.A | UBS | UBS Securities LLC | |||||
Currency Abbreviations: | ||||||||||
ARS | Argentine Peso | EUR | Euro | PEN | Peruvian New Sol | |||||
AUD | Australian Dollar | GBP | British Pound | RUB | Russian Ruble | |||||
BRL | Brazilian Real | IDR | Indonesian Rupiah | TRY | Turkish New Lira | |||||
CAD | Canadian Dollar | INR | Indian Rupee | USD (or $) | United States Dollar | |||||
CHF | Swiss Franc | JPY | Japanese Yen | ZAR | South African Rand | |||||
DKK | Danish Krone | MXN | Mexican Peso | |||||||
Exchange Abbreviations: | ||||||||||
OTC | Over the Counter | |||||||||
Index/Spread Abbreviations: | ||||||||||
AMZX | Alerian MLP Total Return Index | CDX.HY | Credit Derivatives Index - High Yield | S&P 500 | Standard & Poor’s 500 Index | |||||
ARPP7DRR | Argentina Central Bank 7 Day Repo Reference Rate | CMBX | Commercial Mortgage-Backed Index | US0001M | 1 Month USD Swap Rate | |||||
BADLARPP | Argentina Badlar Floating Rate Notes | EUR006M | 6 Month EUR Swap Rate | US0003M | 3 Month USD Swap Rate | |||||
BP0003M | 3 Month GBP-LIBOR | LIBOR01M | 1 Month USD-LIBOR | USBMMY3M | 3 Month US Treasury Bill Money Market Yield | |||||
Other Abbreviations: | ||||||||||
ADR | American Depositary Receipt | EURIBOR | Euro Interbank Offered Rate | SPDR | Standard & Poor’s Depositary Receipts | |||||
BABs | Build America Bonds | JIBAR | Johannesburg Interbank Agreed Rate | TBA | To-Be-Announced | |||||
BBR | Bank Bill Rate | LIBOR | London Interbank Offered Rate | TBD% | Interest rate to be determined when loan settles | |||||
BBSW | Bank Bill Swap Reference Rate | Lunar | Monthly payment based on 28-day periods. One year consists of 13 periods. | TIIE | Tasa de Interés Interbancaria de Equilibrio “Equilibrium Interbank Interest Rate” | |||||
CDO | Collateralized Debt Obligation | PIK | Payment-in-Kind | WTI | West Texas Intermediate | |||||
CLO | Collateralized Loan Obligation | SP - ADR | Sponsored American Depositary Receipt |
SEMIANNUAL REPORT | DECEMBER 31, 2017 | 65 |
Table of Contents
Approval of Investment Advisory Contract and Other Agreements
Approval of Renewal of the Investment Advisory Contract, Sub-Advisory Agreement, Portfolio Implementation Agreement and Second Amended and Restated Supervision and Administration Agreement
At a meeting held on August 23, 2017, the Board of Trustees (the “Board”) of PIMCO Equity Series (the “Trust”), including the Trustees who are not “interested persons” of the Trust under the Investment Company Act of 1940, as amended (the “Independent Trustees”), considered and unanimously approved the renewal of the Investment Advisory Contract (the “Investment Advisory Contract”) between the Trust, on behalf of each of the Trust’s series (the “Funds”), and Pacific Investment Management Company LLC (“PIMCO”) for an additional one-year term through August 31, 2018. The Board also considered and unanimously approved the renewal of the Second Amended and Restated Supervision and Administration Agreement (the “Supervision and Administration Agreement” and together with the Investment Advisory Contract, the “Agreements”) between the Trust, on behalf of the Funds, and PIMCO for an additional one-year term through August 31, 2018. In addition, the Board considered and unanimously approved the renewal of the: (i) Sub-Advisory Agreement (the “Sub-Advisory Agreement”) between PIMCO, on behalf of PIMCO RAE Fundamental Emerging Markets Fund, PIMCO RAE Fundamental Global ex-US Fund, PIMCO RAE Fundamental Global Fund, PIMCO RAE Fundamental International Fund, PIMCO RAE Fundamental US Fund, PIMCO RAE Fundamental US Small Fund and the equity sleeve of the PIMCO Dividend and Income Fund (the “RAE Funds”), each a series of the Trust, and Research Affiliates, LLC (“Research Affiliates”); and (ii) Portfolio Implementation Agreement (the “Portfolio Implementation Agreement”) among PIMCO, on behalf of the RAE Funds, each a series of the Trust, Research Affiliates and Parametric Portfolio Associates LLC (“Parametric”), each for an additional one-year term through August 31, 2018.
The information, material factors and conclusions that formed the basis for the Board’s approvals are summarized below.
1. INFORMATION RECEIVED
(a) Materials Reviewed: During the course of the past year, the Trustees received a wide variety of materials relating to the services provided by PIMCO, Research Affiliates and Parametric to the Trust. At each of its quarterly meetings, the Board reviewed the Funds’ investment performance and a significant amount of information relating to Fund operations, including shareholder services, valuation and custody, the Funds’ compliance program and other information relating to the nature, extent and quality of services provided by PIMCO, Research Affiliates and Parametric to the Trust and each of the Funds, as applicable. In considering whether to approve the renewal of the Agreements, the Sub-Advisory Agreement, and the Portfolio
Implementation Agreement, the Board reviewed additional information, including, but not limited to, comparative industry data with regard to investment performance, advisory and supervisory and administrative fees and expenses, financial information for PIMCO and, where relevant, Research Affiliates and Parametric, information regarding the profitability to PIMCO of its relationship with the Funds, information about the personnel providing investment management services, other advisory services and supervisory and administrative services to the Funds, and information about the fees charged and services provided to other clients with similar investment mandates as the Funds, where applicable. In addition, the Board reviewed materials provided by counsel to the Trust and the Independent Trustees, which included, among other things, memoranda outlining legal duties of the Board in considering the renewal of the Agreements, the Sub-Advisory Agreement and the Portfolio Implementation Agreement.
(b) Review Process: In connection with considering the renewal of the Agreements, the Sub-Advisory Agreement and the Portfolio Implementation Agreement, the Board reviewed written materials prepared by PIMCO and, where applicable, Research Affiliates and Parametric in response to requests from counsel to the Trust and the Independent Trustees encompassing a wide variety of topics. The Board requested and received assistance and advice regarding, among other things, applicable legal standards from counsel to the Trust and the Independent Trustees, and reviewed comparative fee and performance data prepared at the Board’s request by Broadridge Financial Solutions, Inc. (“Lipper”), an independent provider of investment company performance information and fee and expense data. The Board received presentations on matters related to the Agreements, the Sub-Advisory Agreement and the Portfolio Implementation Agreement and met both as a full Board and in a separate session of the Independent Trustees, without management present, at the August 23, 2017 meeting. The Independent Trustees also conducted an in-person meeting with counsel to the Trust and the Independent Trustees on July 21, 2017 to discuss the Lipper Report, as defined below, and certain aspects of the 2017 15(c) materials including, but not limited to, the Funds’ performance, the Funds’ advisory fees and total expense ratios, the comparative information with respect to fees and performance included in the Lipper Report, and the unified fee structure employed by the Trusts.
The approval determinations were made on the basis of each Trustee’s business judgment after consideration and evaluation 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 renewal of the Agreements, the Sub-Advisory Agreement, and the Portfolio Implementation Agreement, the Board did not identify any single factor or particular information that, in isolation, was controlling. The discussion below is intended to
66 | PIMCO EQUITY SERIES |
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(Unaudited)
summarize the broad factors and information that figured prominently in the Board’s consideration of the renewal of the Agreements, the Sub-Advisory Agreement and the Portfolio Implementation Agreement, but is not intended to summarize 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 PIMCO’s investment management process, including: the experience, capability and integrity of its senior management and other personnel; the overall financial strength and stability of its organization; and the ability of its organizational structure to address changes in the Funds’ asset levels. The Board also considered the various services in addition to portfolio management that PIMCO provides under the Investment Advisory Contract. The Board noted that PIMCO makes available to its investment professionals a variety of resources and systems relating to investment management, compliance, trading, performance and portfolio accounting. The Board also noted PIMCO’s commitment to investing in information technology and infrastructure supporting investment, compliance and risk management, as well as PIMCO’s continuing efforts to attract, retain and promote qualified personnel, including personnel with relevant equities experience, and to maintain and enhance its resources and systems. The Board considered PIMCO’s policies, procedures and systems reasonably designed to assure compliance with applicable laws and regulations and its commitment to further developing and strengthening these programs, its oversight of matters that may involve conflicts of interest between the Funds’ investments and those of other accounts managed by PIMCO, and its efforts to keep the Trustees informed about matters relevant to the Funds and their shareholders. The Board also considered PIMCO’s continuous investment in new disciplines and talented personnel, which has enhanced PIMCO’s services to the Funds and has allowed PIMCO to introduce innovative new funds over time.
The Trustees considered that PIMCO has continued to strengthen the process it uses to actively manage counterparty risk and to assess the financial stability of counterparties with which the Funds do business, to manage collateral and to protect the Funds from an unforeseen deterioration in the creditworthiness of trading counterparties. The Trustees noted that, consistent with its fiduciary duty, PIMCO executes transactions through a competitive best execution process and uses only those counterparties that meet its stringent and monitored criteria. The Trustees considered that PIMCO’s collateral management team utilizes a counterparty risk system to analyze portfolio-level exposure and collateral being exchanged with counterparties.
In addition, the Trustees considered new services and service enhancements that PIMCO has implemented since the Board renewed
the Agreements in 2016, including, but not limited to: continuing enhancement of its analytics and technology systems by upgrading hardware and software; enhancing data processing and security and development of tools and applications to support Portfolio Management, Compliance, Analytics, Risk Management, Client Reporting and Customer Relationship Management; continuing investment in its enterprise risk management function including PIMCO’s cybersecurity program; developing the PIMCO Global Advisory Board and continuing to hire new portfolio managers; expanding the Funds and Operations Group global operating model; developing a website monitoring application to ensure accurate data content; adding staff to fund accounting and financial reporting; engaging a third party to perform an independent assessment of PIMCO’s proprietary accounting application and enhancing the same system to provide portfolio managers with more timely and high quality income reporting; establishing a Fund Treasurer’s Office; developing a global tax management application that will enable investment professionals to access foreign market and security tax information on a real-time basis; enhancing reporting of tax reporting for portfolio managers for income products with improved transparency on tax factors impacting income generation and dividend yield; redesigning shareholder statements to be more user friendly and enable e-delivery; and continuing expansion of the pricing portal and the proprietary performance reconciliation tool.
Similarly, the Board considered the sub-advisory services provided by Research Affiliates to the RAE Funds and noted that it had met with senior personnel from Research Affiliates during the year. The Board further considered PIMCO’s oversight of Research Affiliates in connection with Research Affiliates providing sub-advisory services to the RAE Funds. The Board also considered Research Affiliates’ supervisory responsibilities with respect to Parametric’s provision of portfolio implementation services to the RAE Funds. The Board further considered the depth and quality of Research Affiliates’ investment management and research capabilities, the experience and capabilities of its portfolio management personnel and the overall financial strength of the organization.
In addition, the Board considered the portfolio implementation and other operational services provided by Parametric to the RAE Funds by, among other things, effecting portfolio transactions on behalf of the RAE Funds. The Board further considered PIMCO’s oversight of Parametric in connection with Parametric providing portfolio implementation services. The Board also considered information about Parametric’s personnel responsible for providing services to the RAE Funds under the Portfolio Implementation Agreement. The Board also considered the nature and quality of Parametric’s trading, risk management, and compliance capabilities and resources, including Parametric’s policies and procedures regarding trade aggregation and allocation, which are integral parts of its role as portfolio implementer.
SEMIANNUAL REPORT | DECEMBER 31, 2017 | 67 |
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Approval of Investment Advisory Contract and Other Agreements (Cont.)
Ultimately, the Board concluded that the nature, extent and quality of services provided or procured by PIMCO under the Agreements, provided by Research Affiliates under the Sub-Advisory Agreement, and provided by Parametric under the Portfolio Implementation Agreement are likely to continue to benefit the Funds and their shareholders, as applicable.
(b) Other Services: The Board also considered the nature, extent and quality of supervisory and administrative services provided by PIMCO to the Funds under the Supervision and Administration Agreement. The Board considered the terms of the Supervision and Administration Agreement, under which the Trust pays for the supervisory and administrative services provided pursuant to that agreement under what is essentially an all-in fee structure (the “unified fee”). In return, PIMCO provides or procures certain supervisory and administrative services and bears the costs of various third party services required by the Funds, including audit, custodial, portfolio accounting, legal, transfer agency, sub-accounting and printing costs. The Board noted that the scope and complexity, as well as the costs, of the supervisory and administrative services provided by PIMCO under the Supervision and Administration Agreement continue to increase. The Board considered PIMCO’s provision of supervisory and administrative services 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 available in the market.
Ultimately, the Board concluded that the nature, extent and quality of the services provided or procured by PIMCO has benefited, and will likely continue to benefit, the Funds and their shareholders.
3. INVESTMENT PERFORMANCE
The Board reviewed information from PIMCO concerning the Funds’ performance, as available, over short- and long-term periods ended March 31, 2017 and other performance data, as available, over short- and long-term periods ended June 30, 2017 (the “PIMCO Report”) and from Lipper concerning the Funds’ performance, as available, over short- and long-term periods ended March 31, 2017 (the “Lipper Report”). The Board considered information regarding both the short- and long-term investment performance of each Fund relative to its peer group and relevant benchmark index as provided to the Board in advance of each of its quarterly meetings throughout the year, including the PIMCO Report and Lipper Report, which were provided in advance of the August 23, 2017 meeting.
The Board noted that, according to Lipper, certain Funds had underperformed in comparison to their respective peer groups or benchmark indexes, or both, over short- and long-term periods. The Board discussed with PIMCO the reasons for the underperformance of certain Funds over short- and long-term periods. The Board also
discussed actions that have been taken by PIMCO to attempt to improve performance and took note of PIMCO’s plans to monitor performance going forward.
The Board ultimately concluded, within the context of all of its considerations in connection with the Agreements, that PIMCO’s performance record and process in managing the Funds indicates that its continued management is likely to benefit the Funds and their shareholders, and merits the approval of the renewal of the Agreements.
4. ADVISORY FEES, SUPERVISORY AND ADMINISTRATIVE FEES AND TOTAL EXPENSES
The Board considered that PIMCO seeks to price funds to scale at the outset with reference to the total expense ratios of the respective Lipper median, if available, while providing a fee premium for innovative investment offerings. PIMCO reported to the Board that, in proposing fees for any Fund or class of shares, it considers a number of factors, including, but not limited to, the type and complexity of the services provided, the cost of providing services, the risk assumed by PIMCO in the development of products and 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 Fund returns to current and potential investors. Fees charged to or proposed for different Funds for advisory services and supervisory and administrative services may vary in light of these various factors. The Board also considered that PIMCO reviews the Funds’ fee levels and carefully considers changes where appropriate due to competitive positioning considerations, observed long-term notable underperformance and significant misalignments with the level or quality of services being provided or a change in the overall strategic positioning of the Funds.
The Board reviewed the advisory fees, supervisory and administrative fees and total expenses of the Funds (each as a percentage of average net assets) and compared such amounts with the average and median fee and expense levels of other similar funds. The Board also reviewed information relating to the sub-advisory fees paid to Research Affiliates with respect to applicable Funds, taking into account that PIMCO compensates Research Affiliates from the advisory fees paid by such Funds to PIMCO. 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 also considered that PIMCO reviews the Funds’ fee levels and carefully considers changes where appropriate, and noted in particular, the reduction in the advisory fee for the PIMCO Dividend and Income Fund effective June 16, 2016. The Board noted that PIMCO had contractually agreed, through October 31, 2017, to reduce its advisory fee by amounts shown in the
68 | PIMCO EQUITY SERIES |
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(Unaudited)
table below: This contractual agreement was subsequently continued through October 31, 2018.
PIMCO RAE Fundamental Emerging Markets Fund | 0.20% | |||
PIMCO RAE Fundamental Global Fund | 0.20% | |||
PIMCO RAE Fundamental Global ex-US Fund | 0.20% | |||
PIMCO RAE Fundamental International Fund | 0.10% | |||
PIMCO RAE Fundamental US Fund | 0.10% | |||
PIMCO RAE Fundamental US Small Fund | 0.10% |
The Board also reviewed data comparing the Funds’ advisory fees to the standard and negotiated fee rates PIMCO charges to separate accounts and to other sub-advised clients with similar investment strategies, including differences in advisory services provided. The Board discussed comparisons of fees for Funds with fees for separate accounts and/or PIMCO private/alternative funds with similar investment strategies, noting that for certain Funds, there were no appropriate comparisons because PIMCO did not manage comparable separate accounts at the time that the Board considered the Agreements. The Board noted that the advisory fees (or management fees, where applicable) for most Funds were similar to the fee rates charged to other investment companies with the same investment strategies as the Funds.
Regarding advisory fees charged by PIMCO in its capacity as sub-adviser to third-party/unaffiliated funds, the Trustees took into account that such fees may be lower than the fees charged by PIMCO to serve as adviser to the Funds. The Trustees also took into account that there are various reasons for any such differences in fees, including, but not limited to, the fact that PIMCO may be subject to varying levels of entrepreneurial risk and regulatory requirements, differing legal liabilities on a contract-by-contract basis and different servicing requirements when PIMCO does not serve as the sponsor of a fund and is not principally responsible for all aspects of a fund’s investment program and operations as compared to when PIMCO serves as investment adviser and sponsor. In considering the fees paid by the Funds, the Board noted that retail investors in the Funds receive the benefit of PIMCO’s advisory services at the same advisory fee rates as institutional investors in the Funds.
The Board considered the Funds’ supervisory and administrative fees, comparing them to similar funds in the report supplied by Lipper. The Board also considered that as the Funds’ business has become increasingly complex and the number of Funds has grown over time, PIMCO has provided an increasingly broad array of fund supervisory and administrative functions. In addition, the Board considered the Trust’s unified fee structure, under which the Trust pays for the supervisory and administrative services it requires for one set fee. In return for this unified fee, PIMCO provides or procures supervisory and administrative services and bears the costs of various third party
services required by the Funds, including audit, custodial, portfolio accounting, legal, transfer agency, sub-accounting and printing costs. The Board further considered that many other funds pay for comparable services separately, and thus it is difficult to directly compare the Trust’s unified supervisory and administrative fees with the fees paid by other funds for administrative services alone. The Board also considered that the unified supervisory and administrative fee leads to Fund fees that are fixed over the contract period, rather than variable. The Board noted that, although the unified fee structure does not have breakpoints, it implicitly reflects economies of scale by fixing the absolute level of Fund fees at competitive levels over the contract period even if the Funds’ operating costs rise when assets remain flat or decrease. Other factors the Board considered in assessing the unified fee include PIMCO’s approach of pricing the Funds to scale at inception and reinvesting in other important areas of the business that support the Funds. The Board considered that the Funds’ unified fee structure meant that fees were not impacted by recent outflows in certain Funds, unlike funds without a unified fee structure, which may see increased expense ratios when fixed costs, such as service providers, are passed through to a smaller asset base. The Board concluded that the Funds’ supervisory and administrative fees were reasonable in relation to the value of the services 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 fees during the contractual period, which is beneficial to the Funds and their shareholders.
The Board noted that the Funds’ total expenses continued to be generally in line with those of competitor funds. The Board discussed with PIMCO those Funds and/or classes of Funds that had above median total expenses. Upon comparing the Funds’ total expenses to other funds in the “Peer Groups” provided by Lipper, the Board found total expenses of each Fund to be reasonable.
The Trustees also considered the advisory fees charged to the Funds that operate as funds of funds (the “Funds of Funds”) and the advisory services provided in exchange for such fees. The Trustees determined that such services were in addition to the advisory services provided to the underlying funds in which the Funds of Funds may invest and, therefore, such services were not duplicative of the advisory services provided to the underlying funds. The Board also considered the various fee waiver agreements in place for the Funds of Funds.
Based on the information presented by PIMCO, Research Affiliates, Parametric and Lipper, members of the Board determined, in the exercise of their business judgment, that the level of the advisory fees and supervisory and administrative fees charged by PIMCO under the Agreements, as well as the total expenses of each Fund, are reasonable.
SEMIANNUAL REPORT | DECEMBER 31, 2017 | 69 |
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Approval of Investment Advisory Contract and Other Agreements (Cont.)
(Unaudited)
5. ADVISER COSTS, LEVEL OF PROFITS AND ECONOMIES OF SCALE
The Board reviewed information regarding PIMCO’s costs of providing services to the Funds as a whole and considered that PIMCO’s estimated pre-distribution margin from PIMCO Equity Series for the calendar year 2017 was 46.2% and the estimated post-distribution margin was 27.4% utilizing the adjusted asset methodology. The Independent Trustees also noted that the 2016 margins were within the range of publicly-traded asset manager margins reported by Strategic Insight and Lipper. The Board noted that it had received information regarding the structure and manner in which PIMCO’s investment professionals were compensated and PIMCO’s view of the relationship of such compensation to the attraction and retention of quality personnel. The Board considered PIMCO’s need to invest in global infrastructure, technology capabilities, risk management processes and qualified personnel to reinforce and offer new services and to accommodate changing regulatory requirements.
With respect to potential economies of scale, the Board noted that PIMCO shares the benefits of economies of scale with the Funds and their shareholders in a number of ways, including investing in portfolio and trade operations management, firm technology, middle and back office support, legal and compliance, and fund administration logistics; senior management supervision and governance of those services; and through the pricing of Funds to scale from inception and the enhancement of services and oversight provided to the Funds in return for fees paid. In considering the advisory fees paid by the Funds, the Board also noted that retail investors in the Funds receive the benefit of PIMCO’s advisory services at the same advisory fee rates as institutional investors in the Funds. The Board considered that the Funds’ unified fee rates had been set competitively and/or priced to scale from inception and continued to be competitive compared with peers. The Board also considered that the unified fee is a transparent means of informing a Fund’s shareholders of the fees associated with the Fund, and that the Fund bears certain expenses that are not covered by the advisory fee or the unified fee. The Board further considered the challenges that arise when managing large funds, which can result in certain “diseconomies” of scale and noted that PIMCO has continued to reinvest in many areas of the business to support the Funds.
The Trustees considered that the unified fee has provided inherent economies of scale because a Fund maintains competitive fixed unified fees over the contract term even if the particular Fund’s assets decline and/or operating costs rise. The Trustees further considered that, in contrast, breakpoints may be 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 Trustees also considered that, unlike the Funds’ 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 Trustees also considered that the unified fee protects shareholders from a rise in operating costs that may result from, among other things, PIMCO’s investments in various business enhancements and infrastructure, including those referenced above. The Trustees noted that PIMCO’s investments in these areas are extensive.
6. ANCILLARY BENEFITS
The Board considered other benefits realized by PIMCO and its affiliates as a result of PIMCO’s relationship with the Trust. Such benefits may include possible ancillary benefits to PIMCO’s institutional investment management business due to the reputation and market penetration of the Trust or third party service providers’ relationship-level fee concessions, which decrease fees paid by PIMCO. The Board also considered that affiliates of PIMCO provide distribution and shareholder services to the Funds and their respective shareholders, for which they may be compensated through distribution and servicing fees paid pursuant to the Funds’ Rule 12b-1 plans or otherwise. 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 Funds, it has adopted a policy not to enter into contractual soft dollar arrangements.
7. CONCLUSIONS
Based on their review, including their comprehensive consideration and evaluation of each of the broad factors and information summarized above, the Independent Trustees and the Board as a whole concluded that the nature, extent and quality of the services rendered to the Funds by PIMCO, Research Affiliates and Parametric supported the renewal of the Agreements, the Sub-Advisory Agreement, and the Portfolio Implementation Agreement. The Independent Trustees and the Board as a whole concluded that the Agreements, the Sub-Advisory Agreement, and the Portfolio Implementation Agreement continued to be fair and reasonable to the Funds and their shareholders, that the Funds’ shareholders received reasonable value in return for the fees paid to PIMCO by the Funds under the Agreements, the fees paid to Research Affiliates by PIMCO under the Sub-Advisory Agreement, and the fees paid to Parametric by PIMCO under the Portfolio Implementation Agreement, and that the renewal of the Agreements, the Sub-Advisory Agreement, and the Portfolio Implementation Agreement was in the best interests of the Funds and their shareholders.
70 | 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
Investment Sub-Adviser
Research Affiliates, LLC
620 Newport Center Drive, Suite 900
Newport Beach, CA 92660
Portfolio Implementer
Parametric Portfolio Associates
1918 Eighth Avenue, Suite 3100
Seattle, WA 98101
Distributor
PIMCO Investments LLC
1633 Broadway
New York, NY 10019
Custodian
State Street Bank and Trust Company
801 Pennsylvania
Kansas City, MO 64105
Transfer Agent
DST Asset Manager Solutions, Inc.
Institutional Class, Class P, Administrative Class
330 W. 9th Street, 5th Floor
Kansas City, MO 64105
DST Asset Manager Solutions, Inc.
Class A, Class C, Class R, Class D
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.
Table of Contents
PES4001SAR_123117
Table of Contents
PIMCO Equity Series®
Semiannual
Report
December 31, 2017
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
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Approval of Investment Advisory Contract and Other Agreements | 77 |
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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 Semiannual Report for the PIMCO Equity Series covering the six-month reporting period ended December 31, 2017. The following pages contain 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 the six-month reporting period include:
∎ | During the reporting period, geopolitical concerns remained an investor focus but the global economy provided a solid fundamental backdrop with robust consumer confidence in both the eurozone and the U.S. This environment gave room for developed market central banks to adopt a more “dovish taper”. The European Central Bank (“ECB”), for example, announced a tapering in its monthly asset purchases, but President Mario Draghi emphasized the ECB’s overall accommodative stance. In September, the Federal Reserve (“Fed”) provided details on its plan to unwind its balance sheet and kept rates on hold through its November meeting, but raised the Federal Funds Rate in December by 0.25% to a range of 1.25% to 1.50% (marking the third rate increase during 2017, following rate increases in March and in June). The Bank of England (“BOE”) raised its policy rate and suggested reduced stimulus on the horizon and the Bank of Canada (“BOC”) raised interest rates twice after a seven-year gap. Furthermore, President Xi Jinping was extended a second five-year term following the 19th National Party Congress in China, while Japan’s Prime Minister Shinzo Abe won a decisive victory in snap elections. |
∎ | As a result, many developed market yield curves flattened over the reporting period as front-end rates moved higher alongside less accommodative monetary policy. In the U.S., solid growth momentum and the Fed’s three rate hikes throughout the year pushed the two-year yield to its highest level in nearly a decade. In turn, this drove the spread between two-year and 10-year rates to its narrowest level since November 2007. Front-end yields also moved higher in the U.K. and Canada as the BOE and BOC both raised policy rates for the first time in years. |
∎ | Global stock markets reached new highs as increasingly solid economic data, rising corporate earnings, and non-restrictive central bank policy underpinned robust risk sentiment. U.S. equities, as represented by the S&P 500 Index, returned 11.42% over the reporting period. Developed market equities outside the U.S. and Canada, as represented by the MSCI EAFE Net Dividend Index (USD Hedged) and the MSCI EAFE Net Dividend Index (USD Unhedged), returned 7.92% and 9.86%, respectively, over the reporting period. Japanese equities, as represented by the Nikkei 225 Index (in JPY), returned 14.63% over the reporting period and European equities, as represented by the MSCI Europe Index (in EUR), returned 3.34% over the reporting period. |
∎ | EM equities, as represented by the MSCI Emerging Markets Index (Net Dividends in USD), returned 15.92% over the reporting period as fundamentals remained healthy in select economies. Emerging markets benefited from broad-based and synchronized global growth, robust liquidity conditions, rising commodity prices, and a weak U.S. dollar. |
∎ | U.S. Treasuries, as represented by the Bloomberg Barclays U.S. Treasury Index, returned 0.43% for the reporting period. Yields rose across the majority of the yield curve through 10-year maturities, but declined across 20- and 30-year maturities. The benchmark 10-year U.S. Treasury note yielded 2.40% at the end of the reporting period, up from 2.31% on June 30, 2017. The Bloomberg Barclays U.S. Aggregate Index, a widely used index of U.S. investment-grade bonds, returned 1.24% for the reporting period. |
If you have any questions regarding the funds, please contact your account manager or financial adviser, or call one of our shareholder associates at 888.87.PIMCO. We also invite you to visit our website at www.pimco.com to learn more about our views and global thought leadership.
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Thank you for the assets you have placed with us. We deeply value your trust, and we work diligently to meet your broad investment needs.
![]() | Sincerely,
Brent R. Harris Chairman of the Board,
February 21, 2018
|
Past performance is no guarantee of future results. Unless otherwise noted, index returns reflect the reinvestment of income distributions and capital gains, if any, but do not reflect fees, brokerage commissions or other expenses of investing. It is not possible to invest directly in an unmanaged index.
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Important Information About the Funds
PIMCO Equity Series (the “Trust”) is an open-end management investment company that includes 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 “Fund” and collectively, 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 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 PIMCO RAE Fundamental Global Fund invests substantially all of its assets in Institutional Class shares of the PIMCO RAE Fundamental US Fund, PIMCO RAE Fundamental International Fund (“International Fund”) and PIMCO RAE Fundamental Emerging Markets Fund (“Emerging Markets Fund”) (collectively, “Underlying Funds”), and equity securities that are eligible investments for the Underlying Funds. Under normal circumstances, the PIMCO RAE Fundamental Global ex-US Fund invests substantially all of its assets in Institutional Class shares of the International Fund and Emerging Markets Fund, equity securities of small companies economically tied to non-U.S. countries, and securities that are eligible investments for the International Fund and Emerging Markets Fund. The PIMCO RAE Fundamental Global Fund and PIMCO RAE Fundamental Global ex-US Fund may invest in other affiliated funds and unaffiliated funds, which may or may not be registered under the Investment Company Act of 1940 (together with the Underlying Funds, “Acquired Funds”). The cost of investing in these Funds will generally be higher than the cost of investing in a mutual fund that invests directly in individual stocks and bonds.
The values of equity securities, such as common stocks and preferred securities, 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.
The Funds may be subject to various risks as described in each Fund’s prospectus and in the Principal Risks in the Notes to Financial Statements.
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.
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. Returns do not reflect the deduction of taxes that a shareholder would pay on (i) Fund distributions or (ii) the redemption of Fund shares. The Cumulative Returns chart and Average Annual Total Return table reflect any sales load that would have applied at the time of purchase or any Contingent Deferred Sales Charge (“CDSC”) that would have applied if a full redemption occurred on the last business day of the period shown in the Cumulative Returns chart. Class A shares are subject to an initial sales charge. A 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 12 months after purchase. Class C shares are subject to a 1% CDSC, which may apply in the first year. The Cumulative Returns chart reflects only Institutional Class performance. Performance may vary by share class based on each class’s expense ratios. Performance shown is net of fees and expenses. The minimum initial investment amount for Institutional Class and Class P shares is $1,000,000. The minimum initial investment amount for Class A and Class C shares is $1,000. Each Fund measures its performance against at least one 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. There is no assurance that any Fund, including any Fund that has experienced high or unusual
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performance for one or more periods, will experience similar levels of performance in the future. High performance is defined as a significant increase in either 1) a Fund’s total return in excess of that of the Fund’s benchmark between reporting periods or 2) a Fund’s total return in
excess of the Fund’s historical returns between reporting periods. Unusual performance is defined as a significant change in a Fund’s performance as compared to one or more previous reporting periods.
The following table discloses the inception dates of each Fund and its respective share classes along with the Fund’s diversification status as of period end:
Fund Name | Fund Inception | Institutional Class | Class P | Class A | Class C | Diversification Status | ||||||||||||||||||||||
PIMCO RAE Fundamental Emerging Markets Fund | 06/05/15 | 06/05/15 | 06/05/15 | 06/05/15 | 06/05/15 | Non-diversified | ||||||||||||||||||||||
PIMCO RAE Fundamental Global Fund | 06/05/15 | 06/05/15 | 06/05/15 | 06/05/15 | 06/05/15 | Non-diversified | ||||||||||||||||||||||
PIMCO RAE Fundamental Global ex-US Fund | 06/05/15 | 06/05/15 | 06/05/15 | 06/05/15 | 06/05/15 | Non-diversified | ||||||||||||||||||||||
PIMCO RAE Fundamental International Fund | 06/05/15 | 06/05/15 | 06/05/15 | 06/05/15 | 06/05/15 | Non-diversified | ||||||||||||||||||||||
PIMCO RAE Fundamental US Fund | 06/05/15 | 06/05/15 | 06/05/15 | 06/05/15 | 06/05/15 | Non-diversified | ||||||||||||||||||||||
PIMCO RAE Fundamental US Small Fund | 06/05/15 | 06/05/15 | 06/05/15 | 06/05/15 | 06/05/15 | Non-diversified |
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.
The Trustees are responsible generally for overseeing the management of the Trust. The Trustees authorize the Trust to enter into service agreements with the Adviser, the Distributor, the Administrator and other service providers in order to provide, and in some cases authorize service providers to procure through other parties, necessary or desirable services on behalf of the Trust and the Funds. Shareholders are not parties to or third-party beneficiaries of such service agreements. Neither a Fund’s prospectus nor a Fund’s summary prospectus, the Trust’s Statement of Additional Information (“SAI”), any contracts filed as exhibits to the Trust’s registration statement, nor any other communications, disclosure documents or regulatory filings (including this report) from or on behalf of the Trust or a Fund creates a contract between or among any shareholder of a Fund, on the one hand, and the Trust, a Fund, a service provider to the Trust or a Fund, and/or the Trustees or officers of the Trust, on the other hand. The Trustees (or the Trust and its officers, service providers or other delegates acting under authority of the Trustees) may amend the most recent prospectus or use a new prospectus, summary prospectus or SAI with respect to a Fund or the Trust, and/or amend, file and/or issue any other communications, disclosure documents or regulatory filings, and may amend or enter into any contracts to which the Trust or a Fund is a party, and interpret the investment objective(s), policies, restrictions and contractual provisions applicable to any Fund, without shareholder
input or approval, except in circumstances in which shareholder approval is specifically required by law (such as changes to fundamental investment policies) or where a shareholder approval requirement is specifically disclosed in the Trust’s then-current prospectus or SAI.
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 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.
The Trust files a complete schedule of each Fund’s 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 is also 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.
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PIMCO RAE Fundamental Emerging Markets Fund
Cumulative Returns Through December 31, 2017
$1,000,000 invested at the end of the month when the Fund’s Institutional Class commenced operations.
Investment Objective and Strategy Overview
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”) through investment in the securities that comprise the RAE Fundamental Emerging Markets Portfolio. The stocks are selected by the Fund’s sub-adviser, Research Affiliates, LLC, from a broad universe of companies which satisfy certain liquidity and capacity requirements. Fund strategies may change from time to time. Please refer to the Fund’s current prospectus for more information regarding the Fund’s strategy.
Average Annual Total Return for the period ended December 31, 2017* | ||||||||||||||||||||||
6 Months** | 1 Year | 5 Year | 10 Year | Fund Inception (05/31/06) | ||||||||||||||||||
![]() | PIMCO RAE Fundamental Emerging Markets Fund Institutional Class | 15.60% | 29.34% | 4.29% | 2.52% | 7.42% | ||||||||||||||||
PIMCO RAE Fundamental Emerging Markets Fund Class P | 15.40% | 29.03% | 4.21% | 2.48% | 7.38% | |||||||||||||||||
PIMCO RAE Fundamental Emerging Markets Fund Class A | 15.41% | 28.88% | 4.13% | 2.44% | 7.34% | |||||||||||||||||
PIMCO RAE Fundamental Emerging Markets Fund Class A (adjusted) | 11.09% | 24.01% | 3.34% | 2.05% | 6.99% | |||||||||||||||||
PIMCO RAE Fundamental Emerging Markets Fund Class C | 14.94% | 27.90% | 3.71% | 2.23% | 7.15% | |||||||||||||||||
PIMCO RAE Fundamental Emerging Markets Fund Class C (adjusted) | 13.94% | 26.90% | 3.71% | 2.23% | 7.15% | |||||||||||||||||
![]() | MSCI Emerging Markets Index± | 15.92% | 37.28% | 4.35% | 1.68% | 6.28% |
All Fund returns are net of fees and expenses.
** Cumulative return.
± The MSCI Emerging Markets 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 an unmanaged index.
* 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.
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. Differences in the Fund’s performance versus the index and related attribution information with respect to particular categories of securities or individual positions may be attributable, in part, to differences in the pricing methodologies used by the Fund and the index. 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. For performance data current to the most recent month-end, visit www.pimco.com or via (888) 87-PIMCO.
The Fund’s total annual operating expense ratio in effect as of period end, were 0.96% for the Institutional Class shares, 1.06% for the Class P shares, 1.31% for the Class A shares and 2.06% for the Class C shares. Details regarding any changes to the Fund’s operating expenses, subsequent to period end, can be found in the Fund’s current prospectus, as supplemented.
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Institutional Class - PEIFX | Class P - PEPFX | Class A - PEAFX | Class C - PECFX |
Geographic Breakdown as of 12/31/20171§
China | 22.1% | |||||||
South Korea | 19.6% | |||||||
Brazil | 10.6% | |||||||
Russia | 8.5% | |||||||
Taiwan | 8.0% | |||||||
India | 6.4% | |||||||
South Africa | 6.2% | |||||||
Hong Kong | 4.8% | |||||||
Turkey | 2.7% | |||||||
Thailand | 2.5% | |||||||
Poland | 2.3% | |||||||
Malaysia | 1.4% | |||||||
Greece | 1.3% | |||||||
Mexico | 1.2% | |||||||
Indonesia | 1.1% | |||||||
Chile | 1.0% | |||||||
Other | 0.3% |
1 % of Investments, at value.
§ Geographic Breakdown and % of Investments exclude securities sold short, financial derivative instruments and short-term instruments, if any.
Fund Insights
The following affected performance during the reporting period:
» | Overweight exposure to, and security selection in, the materials sector contributed to relative returns, as the sector and the Fund’s holdings outperformed the benchmark index. |
» | Overweight exposure to, and security selection in, the real estate sector contributed to relative returns, as the sector and the Fund’s holdings outperformed the benchmark index. |
» | Underweight exposure to, and security selection in, the consumer staples sector contributed to relative returns, as the sector underperformed the benchmark index and the Fund’s holdings outperformed the benchmark index. |
» | Underweight exposure to the consumer discretionary sector contributed to relative returns, as the sector underperformed the benchmark index. |
» | Underweight exposure to, and security selection in, the information technology sector detracted from relative returns, as the sector outperformed the benchmark index and the Fund’s holdings underperformed the benchmark index. |
» | Security selection in the financial sector detracted from relative returns, as the Fund’s holdings underperformed the benchmark index. |
» | Overweight exposure to, and security selection in, the utilities sector detracted from relative returns, as the sector and the Fund’s holdings underperformed the benchmark index. |
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PIMCO RAE Fundamental Global Fund
Cumulative Returns Through December 31, 2017
$1,000,000 invested at the end of the month when the Fund’s Institutional Class commenced operations.
Investment Objective and Strategy Overview
PIMCO RAE Fundamental Global Fund seeks long-term capital appreciation by investing under normal circumstances substantially all of its assets in three PIMCO Funds (the “Underlying Funds”) and equity securities that are eligible investments for the Underlying Funds. Each of the Underlying Funds obtains exposure to a portfolio of stocks (each, a “RAE Fundamental Portfolio”) through investment in the securities that comprise the RAE Fundamental Portfolio. The stocks are selected by the Fund’s sub-adviser, Research Affiliates, LLC, from a broad universe of companies which satisfy certain liquidity and capacity requirements. Fund strategies may change from time to time. Please refer to the Fund’s current prospectus for more information regarding the Fund’s strategy.
Average Annual Total Return for the period ended December 31, 2017 | ||||||||||||||
6 Months* | 1 Year | Fund Inception (06/05/15) | ||||||||||||
![]() | PIMCO RAE Fundamental Global Fund Institutional Class | 12.11% | 22.32% | 9.54% | ||||||||||
PIMCO RAE Fundamental Global Fund Class P | 12.09% | 22.32% | 9.42% | |||||||||||
PIMCO RAE Fundamental Global Fund Class A | 11.91% | 21.92% | 9.17% | |||||||||||
PIMCO RAE Fundamental Global Fund Class A (adjusted) | 7.69% | 17.39% | 7.56% | |||||||||||
PIMCO RAE Fundamental Global Fund Class C | 11.54% | 21.03% | 8.37% | |||||||||||
PIMCO RAE Fundamental Global Fund Class C (adjusted) | 10.54% | 20.03% | 8.37% | |||||||||||
![]() | MSCI All Country World Index± | 11.21% | 23.97% | 9.26% |
All Fund returns are net of fees and expenses.
* Cumulative return.
± 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. Differences in the Fund’s performance versus the index and related attribution information with respect to particular categories of securities or individual positions may be attributable, in part, to differences in the pricing methodologies used by the Fund and the index. 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. For performance data current to the most recent month-end, visit www.pimco.com or via (888) 87-PIMCO.
The Fund’s total annual operating expense ratio in effect as of period end, which includes the Acquired Fund Fees and Expenses (Underlying PIMCO Fund Expenses), were 1.20% for the Institutional Class shares, 1.30% for the Class P shares, 1.55% for the Class A shares and 2.30% for the Class C shares. Details regarding any changes to he Fund’s operating expenses, subsequent to period end, can be found in the Fund’s current prospectus, as supplemented.
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Institutional Class - PFQIX | Class P - PFQPX | Class A - PFQAX | Class C - PFQCX |
Top Holdings as of 12/31/20171§
PIMCO RAE Fundamental International Fund | 48.0% | |||||||
PIMCO RAE Fundamental U.S. Fund | 40.1% | |||||||
PIMCO RAE Fundamental Emerging Markets Fund | 11.9% |
1 % of Investments, at value.
§ Top Holdings and % of Investments exclude securities sold short, financial derivative instruments and short-term instruments, if any.
Fund Insights
The following affected performance during the reporting period:
» | Overweight exposure to, and security selection in, the materials sector contributed to relative returns, as the sector and the Fund’s holdings outperformed the benchmark index. |
» | Security selection in the industrial sector contributed to relative returns, as the Fund’s holdings outperformed the benchmark index. |
» | Underweight exposure to, and security selection in, the consumer staples sector contributed to relative returns, as the sector underperformed the benchmark index and the Fund’s holdings outperformed the benchmark index. |
» | Security selection in the energy sector contributed to relative returns, as the Fund’s holdings outperformed the benchmark index. |
» | Underweight exposure to, and security selection in, the information technology sector detracted from relative returns, as the sector outperformed the benchmark index and the Fund’s holdings underperformed the benchmark index. |
» | Overweight exposure to, and security selection in, telecommunications services sector detracted from relative returns, as the sector and the Fund’s holdings underperformed the benchmark index. |
» | Security selection in the financial sector detracted from relative returns, as the Fund’s holdings underperformed the benchmark index. |
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PIMCO RAE Fundamental Global ex-US Fund
Cumulative Returns Through December 31, 2017
$1,000,000 invested at the end of the month when the Fund’s Institutional Class commenced operations.
Investment Objective and Strategy Overview
PIMCO RAE Fundamental Global ex-US Fund seeks long-term capital appreciation under normal circumstances substantially all of its assets in two PIMCO Funds (the “Underlying Funds”) and securities that are eligible investment for the Underlying Funds. Each of the Underlying Funds obtains exposure to a portfolio of stocks (each, a “RAE Fundamental Portfolio”) through investment in the securities that comprise the RAE Fundamental Portfolio. The stocks are selected by the Fund’s sub-adviser, Research Affiliates, LLC, from a broad universe of companies which satisfy certain liquidity and capacity requirements. Fund strategies may change from time to time. Please refer to the Fund’s current prospectus for more information regarding the Fund’s strategy.
Average Annual Total Return for the period ended December 31, 2017 | ||||||||||||||
6 Months* | 1 Year | Fund Inception (06/05/15) | ||||||||||||
![]() | PIMCO RAE Fundamental Global ex-US Fund Institutional Class | 12.16% | 25.97% | 8.08% | ||||||||||
PIMCO RAE Fundamental Global ex-US Fund Class P | 12.05% | 25.74% | 7.93% | |||||||||||
PIMCO RAE Fundamental Global ex-US Fund Class A | 11.97% | 25.55% | 7.72% | |||||||||||
PIMCO RAE Fundamental Global ex-US Fund Class A (adjusted) | 7.73% | 20.88% | 6.13% | |||||||||||
PIMCO RAE Fundamental Global ex-US Fund Class C | 11.56% | 24.70% | 6.91% | |||||||||||
PIMCO RAE Fundamental Global ex-US Fund Class C (adjusted) | 10.56% | 23.70% | 6.91% | |||||||||||
![]() | MSCI All Country World ex US Index± | 11.48% | 27.19% | 7.05% |
All Fund returns are net of fees and expenses.
* Cumulative return.
± 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. Differences in the Fund’s performance versus the index and related attribution information with respect to particular categories of securities or individual positions may be attributable, in part, to differences in the pricing methodologies used by the Fund and the index. 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. For performance data current to the most recent month-end, visit www.pimco.com or via (888) 87-PIMCO.
The Fund’s total annual operating expense ratio in effect as of period end, which includes the Acquired Fund Fees and Expenses (Underlying PIMCO Fund Expenses), were 1.31% for the Institutional Class shares, 1.41% for the Class P shares, 1.66% for the Class A shares and 2.41% for the Class C shares. Details regarding any changes to the Fund’s operating expenses, subsequent to period end, can be found in the Fund’s current prospectus, as supplemented.
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Institutional Class - PZRIX | Class P - PZRPX | Class A - PZRAX | Class C - PZRCX |
Top Holdings as of 12/31/20171§
PIMCO RAE Fundamental International Fund | 80.1% | |||||||
PIMCO RAE Fundamental Emerging Markets Fund | 19.9% |
1 % of Investments, at value.
§ Top Holdings and % of Investments exclude securities sold short, financial derivative instruments and short-term instruments, if any.
Fund Insights
The following affected performance during the reporting period:
» | Overweight exposure to, and security selection in, the materials sector contributed to relative returns, as the sector and the Fund’s holdings outperformed the benchmark index. |
» | Security selection in the industrial sector contributed to relative returns, as the Fund’s holdings outperformed the benchmark index. |
» | Security selection in the consumer discretionary sector contributed to relative returns, as the Fund’s holdings outperformed the benchmark index. |
» | Underweight exposure to, and security selection in, the consumer staples sector contributed to relative returns, as the sector underperformed the benchmark index and the Fund’s holdings outperformed the benchmark index. |
» | Underweight exposure to, and security selection in, the information technology sector detracted from relative returns, as the sector outperformed the benchmark index and the Fund’s holdings underperformed the benchmark index. |
» | Overweight exposure to, and security selection in, the financial sector detracted from relative returns, as the sector and the Fund’s holdings underperformed the benchmark index. |
» | Overweight exposure to the utilities sector detracted from relative returns, as the sector underperformed the benchmark index. |
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PIMCO RAE Fundamental International Fund
Cumulative Returns Through December 31, 2017
$1,000,000 invested at the end of the month when the Fund’s Institutional Class commenced operations.
Investment Objective and Strategy Overview
PIMCO RAE Fundamental International Fund seeks long-term capital appreciation by obtaining under normal circumstances exposure to a portfolio of stocks economically tied to at least three foreign (non-U.S.) countries (“RAE Fundamental International Portfolio”) through investment in the securities that comprise the RAE Fundamental International Portfolio. The stocks are selected by the Fund’s sub-adviser, Research Affiliates, LLC, from a broad universe of companies which satisfy certain liquidity and capacity requirements. Fund strategies may change from time to time. Please refer to the Fund’s current prospectus for more information regarding the Fund’s strategy.
Average Annual Total Return for the period ended December 31, 2017 | ||||||||||||||
6 Months* | 1 Year | Fund Inception (06/05/15) | ||||||||||||
![]() | PIMCO RAE Fundamental International Fund Institutional Class | 11.27% | 24.89% | 7.36% | ||||||||||
PIMCO RAE Fundamental International Fund Class P | 11.34% | 24.88% | 7.31% | |||||||||||
PIMCO RAE Fundamental International Fund Class A | 11.14% | 24.52% | 7.00% | |||||||||||
PIMCO RAE Fundamental International Fund Class A (adjusted) | 6.96% | 19.80% | 5.42% | |||||||||||
PIMCO RAE Fundamental International Fund Class C | 10.75% | 23.64% | 6.20% | |||||||||||
PIMCO RAE Fundamental International Fund Class C (adjusted) | 9.75% | 22.64% | 6.20% | |||||||||||
![]() | MSCI EAFE Index± | 9.86% | 25.03% | 6.41% |
All Fund returns are net of fees and expenses.
* Cumulative return.
± MSCI EAFE Index is an unmanaged index designed to represent the performance of large and mid-cap securities across 21 developed markets, including countries in Europe, Australasia and the Far East, excluding the U.S. and Canada.
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. Differences in the Fund’s performance versus the index and related attribution information with respect to particular categories of securities or individual positions may be attributable, in part, to differences in the pricing methodologies used by the Fund and the index. 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. For performance data current to the most recent month-end, visit www.pimco.com or via (888) 87-PIMCO.
The Fund’s total annual operating expense ratio in effect as of period end, were 0.61% for the Institutional Class shares, 0.71% for the Class P shares, 0.96% for the Class A shares and 1.71% for the Class C shares. Details regarding any changes to the Fund’s operating expenses, subsequent to period end, can be found in the Fund’s current prospectus, as supplemented.
12 | PIMCO EQUITY SERIES |
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Institutional Class - PPYIX | Class P - PPYPX | Class A - PPYAX | Class C - PPYCX |
Geographic Breakdown as of 12/31/20171§
Japan | 24.4% | |||||||
United Kingdom | 15.9% | |||||||
France | 10.9% | |||||||
Germany | 10.1% | |||||||
Australia | 7.3% | |||||||
Canada | 5.7% | |||||||
Switzerland | 5.3% | |||||||
Spain | 4.0% | |||||||
Netherlands | 3.4% | |||||||
Italy | 3.1% | |||||||
Sweden | 1.8% | |||||||
Hong Kong | 1.7% | |||||||
Singapore | 1.1% | |||||||
Other | 5.3% |
1 % of Investments, at value.
§ Geographic Breakdown and % of Investments exclude securities sold short, financial derivative instruments and short-term instruments, if any.
Fund Insights
The following affected performance during the reporting period:
» | Overweight exposure to, and security selection in, the materials sector contributed to relative returns, as the sector and the Fund’s holdings outperformed the benchmark index. |
» | Security selection in the industrial sector contributed to relative returns, as the Fund’s holdings outperformed the benchmark index. |
» | Security selection in the consumer discretionary sector contributed to relative returns, as the Fund’s holdings outperformed the benchmark index. |
» | Underweight exposure to the information technology sector detracted from relative returns, as the sector outperformed the benchmark index. |
» | Overweight exposure to the utilities sector detracted from relative returns, as the sector underperformed the benchmark index. |
» | Overweight exposure to the financial sector detracted from relative returns, as the sector underperformed the benchmark index. |
SEMIANNUAL REPORT | DECEMBER 31, 2017 | 13 |
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Cumulative Returns Through December 31, 2017
$1,000,000 invested at the end of the month when the Fund’s Institutional Class commenced operations.
Investment Objective and Strategy Overview
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”) through investment in the securities that comprise the RAE Fundamental US Portfolio. The stocks are selected by the Fund’s sub-adviser, Research Affiliates, LLC, from a broad universe of companies which satisfy certain liquidity and capacity requirements. Fund strategies may change from time to time. Please refer to the Fund’s current prospectus for more information regarding the Fund’s strategy.
Average Annual Total Return for the period ended December 31, 2017* | ||||||||||||||||||||||
6 Months** | 1 Year | 5 Year | 10 Year | Fund Inception (12/22/04) | ||||||||||||||||||
![]() | PIMCO RAE Fundamental US Fund Institutional Class | 11.91% | 16.54% | 14.75% | 8.34% | 8.59% | ||||||||||||||||
PIMCO RAE Fundamental US Fund Class P | 11.90% | 16.43% | 14.70% | 8.31% | 8.57% | |||||||||||||||||
PIMCO RAE Fundamental US Fund Class A | 11.72% | 16.14% | 14.53% | 8.23% | 8.51% | |||||||||||||||||
PIMCO RAE Fundamental US Fund Class A (adjusted) | 7.52% | 11.83% | 13.66% | 7.82% | 8.19% | |||||||||||||||||
PIMCO RAE Fundamental US Fund Class C | 11.37% | 15.27% | 14.08% | 8.01% | 8.35% | |||||||||||||||||
PIMCO RAE Fundamental US Fund Class C (adjusted) | 10.37% | 14.27% | 14.08% | 8.01% | 8.35% | |||||||||||||||||
![]() | S&P 500 Index± | 11.42% | 21.83% | 15.79% | 8.50% | 8.52% ¨ |
All Fund returns are net of fees and expenses.
** Cumulative return.
¨ 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.
* 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.
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. Differences in the Fund’s performance versus the index and related attribution information with respect to particular categories of securities or individual positions may be attributable, in part, to differences in the pricing methodologies used by the Fund and the index. 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. For performance data current to the most recent month-end, visit www.pimco.com or via (888) 87-PIMCO.
The Fund’s total annual operating expense ratio in effect as of period end, were 0.51% for the Institutional Class shares, 0.61% for the Class P shares, 0.91% for the Class A shares and 1.66% for the Class C shares. Details regarding any changes to the Fund’s operating expenses, subsequent to period end, can be found in the Fund’s current prospectus, as supplemented.
14 | PIMCO EQUITY SERIES |
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Institutional Class - PKAIX | Class P - PKAPX | Class A - PKAAX | Class C - PKACX |
Sector Breakdown as of 12/31/20171§
Financials | 23.2% | |||||||
Information Technology | 18.2% | |||||||
Health Care | 11.9% | |||||||
Consumer Discretionary | 11.4% | |||||||
Industrials | 9.7% | |||||||
Consumer Staples | 7.3% | |||||||
Energy | 6.2% | |||||||
Utilities | 5.1% | |||||||
Materials | 3.7% | |||||||
Telecommunication Services | 3.0% | |||||||
Other | 0.3% |
1 % of Investments, at value.
§ Sector Breakdown and % of Investments exclude securities sold short, financial derivative instruments and short-term instruments, if any.
Fund Insights
The following affected performance during the reporting period:
» | Security selection in the materials sector contributed to relative returns, as the Fund’s holdings outperformed the benchmark index. |
» | Security selection in the industrial sector contributed to relative returns, as the Fund’s holdings outperformed the benchmark index. |
» | Underweight exposure to, and security selection in, the consumer staples sector contributed to relative returns, as the sector underperformed the benchmark index and the Fund’s holdings outperformed the benchmark index. |
» | Security selection in the energy sector contributed to relative returns, as the Fund’s holdings outperformed the benchmark index. |
» | Underweight exposure to, and security selection in, the information technology sector detracted from relative returns, as the sector outperformed the benchmark index and the Fund’s holdings underperformed the benchmark index. |
» | Security selection in the telecommunications services sector detracted from relative returns, as the Fund’s holdings underperformed the benchmark index. |
» | Security selection in the consumer discretionary sector detracted from relative returns, as the Fund’s holdings underperformed the benchmark index. |
SEMIANNUAL REPORT | DECEMBER 31, 2017 | 15 |
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PIMCO RAE Fundamental US Small Fund
Cumulative Returns Through December 31, 2017
$1,000,000 invested at the end of the month when the Fund’s Institutional Class commenced operations.
Investment Objective and Strategy Overview
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 small companies economically tied to the United States. Specifically, under normal circumstances, the Fund will obtain exposure to a portfolio of stocks of small U.S. companies (“RAE Fundamental US Small Portfolio”) through investment in the securities that comprise the RAE Fundamental US Small Portfolio. The stocks are selected by the Fund’s sub-adviser, Research Affiliates, LLC, from a broad universe of companies which satisfy certain liquidity and capacity requirements. Fund strategies may change from time to time. Please refer to the Fund’s current prospectus for more information regarding the Fund’s strategy.
Average Annual Total Return for the period ended December 31, 2017* | ||||||||||||||||||||||
6 Months** | 1 Year | 5 Year | 10 Year | Fund Inception (09/29/05) | ||||||||||||||||||
![]() | PIMCO RAE Fundamental US Small Fund Institutional Class | 9.66% | 9.27% | 14.12% | 9.44% | 8.86% | ||||||||||||||||
PIMCO RAE Fundamental US Small Fund Class P | 9.55% | 9.06% | 14.03% | 9.40% | 8.83% | |||||||||||||||||
PIMCO RAE Fundamental US Small Fund Class A | 9.40% | 8.81% | 13.87% | 9.32% | 8.76% | |||||||||||||||||
PIMCO RAE Fundamental US Small Fund Class A (adjusted) | 5.30% | 4.75% | 13.00% | 8.90% | 8.42% | |||||||||||||||||
PIMCO RAE Fundamental US Small Fund Class C | 8.99% | 7.99% | 13.44% | 9.11% | 8.60% | |||||||||||||||||
PIMCO RAE Fundamental US Small Fund Class C (adjusted) | 7.99% | 6.99% | 13.44% | 9.11% | 8.60% | |||||||||||||||||
![]() | Russell 2000® Index± | 9.20% | 14.65% | 14.12% | 8.71% | 8.49% ¨ |
All Fund returns are net of fees and expenses.
** Cumulative return.
¨ Average annual total return since 9/30/2005
± 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.
* 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.
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. Differences in the Fund’s performance versus the index and related attribution information with respect to particular categories of securities or individual positions may be attributable, in part, to differences in the pricing methodologies used by the Fund and the index. 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. For performance data current to the most recent month-end, visit www.pimco.com or via (888) 87-PIMCO.
The Fund’s total annual operating expense ratio in effect as of period end, were 0.61% for the Institutional Class shares, 0.71% for the Class P shares, 1.01% for the Class A shares and 1.76% for the Class C shares. Details regarding any changes to the Fund’s operating expenses, subsequent to period end, can be found in the Fund’s current prospectus, as supplemented.
16 | PIMCO EQUITY SERIES |
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Institutional Class - PMJIX | Class P - PMJPX | Class A - PMJAX | Class C - PMJCX |
Sector Breakdown as of 12/31/20171§
Consumer Discretionary | 20.0% | |||||||
Financials | 18.8% | |||||||
Industrials | 18.1% | |||||||
Information Technology | 11.3% | |||||||
Real Estate | 8.2% | |||||||
Health Care | 6.7% | |||||||
Materials | 5.1% | |||||||
Consumer Staples | 3.7% | |||||||
Energy | 3.5% | |||||||
Utilities | 3.5% | |||||||
Telecommunication Services | 1.1% |
1 % of Investments, at value.
§ Sector Breakdown and % of Investments exclude securities sold short, financial derivative instruments and short-term instruments, if any.
Fund Insights
The following affected performance during the reporting period:
» | Overweight exposure to, and security selection in, the consumer discretionary sector contributed to relative returns, as the sector and the Fund’s holdings outperformed the benchmark index. |
» | Security selection in the energy sector contributed to relative returns, as the Fund’s holdings outperformed the benchmark index. |
» | Security selection in the materials sector contributed to relative returns, as the Fund’s holdings outperformed the benchmark index. |
» | Overweight exposure to the industrial sector contributed to relative returns, as the sector outperformed the benchmark index. |
» | Underweight exposure to, and security selection in, the healthcare sector detracted from relative returns, as the sector outperformed the benchmark index and the Fund’s holdings underperformed the benchmark index. |
» | Overweight exposure to, and security selection in, the real estate sector detracted from relative returns, as the sector and the Fund’s holdings underperformed the benchmark index. |
» | Security selection in the information technology sector detracted from relative returns, as the Fund’s holdings underperformed the benchmark index. |
SEMIANNUAL REPORT | DECEMBER 31, 2017 | 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 July 1, 2017 to December 31, 2017 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 this information, 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 row 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 (07/01/17) | Ending Account Value (12/31/17) | Expenses Paid During Period* | Beginning Account Value (07/01/17) | Ending Account Value (12/31/17) | Expenses Paid During Period* | Net Annualized Expense Ratio** | ||||||||||||||||||||||||||||||||||
PIMCO RAE Fundamental Emerging Markets Fund | ||||||||||||||||||||||||||||||||||||||||
Institutional Class | $ | 1,000.00 | $ | 1,156.00 | $ | 4.11 | $ | 1,000.00 | $ | 1,021.26 | $ | 3.85 | 0.76 | % | ||||||||||||||||||||||||||
Class P | 1,000.00 | 1,154.00 | 4.64 | 1,000.00 | 1,020.76 | 4.36 | 0.86 | |||||||||||||||||||||||||||||||||
Class A | 1,000.00 | 1,154.10 | 5.99 | 1,000.00 | 1,019.50 | 5.62 | 1.11 | |||||||||||||||||||||||||||||||||
Class C | 1,000.00 | 1,149.40 | 10.02 | 1,000.00 | 1,015.74 | 9.40 | 1.86 | |||||||||||||||||||||||||||||||||
PIMCO RAE Fundamental Global Fund | ||||||||||||||||||||||||||||||||||||||||
Institutional Class | $ | 1,000.00 | $ | 1,121.10 | $ | 0.11 | $ | 1,000.00 | $ | 1,024.97 | $ | 0.10 | 0.02 | % | ||||||||||||||||||||||||||
Class P | 1,000.00 | 1,120.90 | 0.64 | 1,000.00 | 1,024.47 | 0.61 | 0.12 | |||||||||||||||||||||||||||||||||
Class A | 1,000.00 | 1,119.10 | 1.97 | 1,000.00 | 1,023.21 | 1.88 | 0.37 | |||||||||||||||||||||||||||||||||
Class C | 1,000.00 | 1,115.40 | 5.94 | 1,000.00 | 1,019.45 | 5.67 | 1.12 | |||||||||||||||||||||||||||||||||
PIMCO RAE Fundamental Global ex-US Fund | ||||||||||||||||||||||||||||||||||||||||
Institutional Class | $ | 1,000.00 | $ | 1,121.60 | $ | 0.05 | $ | 1,000.00 | $ | 1,025.02 | $ | 0.05 | 0.01 | % | ||||||||||||||||||||||||||
Class P | 1,000.00 | 1,120.50 | 0.58 | 1,000.00 | 1,024.52 | 0.56 | 0.11 | |||||||||||||||||||||||||||||||||
Class A | 1,000.00 | 1,119.70 | 1.91 | 1,000.00 | 1,023.26 | 1.83 | 0.36 | |||||||||||||||||||||||||||||||||
Class C | 1,000.00 | 1,115.60 | 5.89 | 1,000.00 | 1,019.50 | 5.62 | 1.11 |
18 | PIMCO EQUITY SERIES |
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Actual | Hypothetical (5% return before expenses) | |||||||||||||||||||||||||||||||||||||||
Beginning Account Value (07/01/17) | Ending Account Value (12/31/17) | Expenses Paid During Period* | Beginning Account Value (07/01/17) | Ending Account Value (12/31/17) | Expenses Paid During Period* | Net Annualized Expense Ratio** | ||||||||||||||||||||||||||||||||||
PIMCO RAE Fundamental International Fund | ||||||||||||||||||||||||||||||||||||||||
Institutional Class | $ | 1,000.00 | $ | 1,112.70 | $ | 2.70 | $ | 1,000.00 | $ | 1,022.51 | $ | 2.59 | 0.51 | % | ||||||||||||||||||||||||||
Class P | 1,000.00 | 1,113.40 | 3.23 | 1,000.00 | 1,022.01 | 3.09 | 0.61 | |||||||||||||||||||||||||||||||||
Class A | 1,000.00 | 1,111.40 | 4.55 | 1,000.00 | 1,020.76 | 4.36 | 0.86 | |||||||||||||||||||||||||||||||||
Class C | 1,000.00 | 1,107.50 | 8.51 | 1,000.00 | 1,017.00 | 8.14 | 1.61 | |||||||||||||||||||||||||||||||||
PIMCO RAE Fundamental US Fund | ||||||||||||||||||||||||||||||||||||||||
Institutional Class | $ | 1,000.00 | $ | 1,119.10 | $ | 2.18 | $ | 1,000.00 | $ | 1,023.01 | $ | 2.08 | 0.41 | % | ||||||||||||||||||||||||||
Class P | 1,000.00 | 1,119.00 | 2.71 | 1,000.00 | 1,022.51 | 2.59 | 0.51 | |||||||||||||||||||||||||||||||||
Class A | 1,000.00 | 1,117.20 | 4.30 | 1,000.00 | 1,021.01 | 4.10 | 0.81 | |||||||||||||||||||||||||||||||||
Class C | 1,000.00 | 1,113.70 | 8.27 | 1,000.00 | 1,017.25 | 7.89 | 1.56 | |||||||||||||||||||||||||||||||||
PIMCO RAE Fundamental US Small Fund | ||||||||||||||||||||||||||||||||||||||||
Institutional Class | $ | 1,000.00 | $ | 1,096.60 | $ | 2.68 | $ | 1,000.00 | $ | 1,022.51 | $ | 2.59 | 0.51 | % | ||||||||||||||||||||||||||
Class P | 1,000.00 | 1,095.50 | 3.20 | 1,000.00 | 1,022.06 | 3.09 | 0.61 | |||||||||||||||||||||||||||||||||
Class A | 1,000.00 | 1,094.00 | 4.78 | 1,000.00 | 1,020.51 | 4.61 | 0.91 | |||||||||||||||||||||||||||||||||
Class C | 1,000.00 | 1,089.90 | 8.70 | 1,000.00 | 1,016.75 | 8.39 | 1.66 |
* | 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 183/365 (to reflect the one-half year period). |
** | Net Annualized Expense Ratio is reflective of any applicable contractual fee waivers and/or expense reimbursements or voluntary fee waivers. Details regarding fee waivers, if any, can be found in Note 8, Fees and Expenses, in the Notes to Financial Statements. |
SEMIANNUAL REPORT | DECEMBER 31, 2017 | 19 |
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Investment Operations | Less Distributions(b) | |||||||||||||||||||||||||||||||||||
Selected Per Share Data for the Year or Period Ended^: | Net Asset Value | Net Investment Income (Loss)(a) | Net Realized/ Unrealized Gain (Loss) | Total | From Net Investment Income | From Net Realized Capital Gains | Tax Basis Return of Capital | Total | ||||||||||||||||||||||||||||
PIMCO RAE Fundamental Emerging Markets Fund | ||||||||||||||||||||||||||||||||||||
Institutional Class | ||||||||||||||||||||||||||||||||||||
07/01/2017 - 12/31/2017+ | $ | 10.83 | $ | 0.14 | $ | 1.51 | $ | 1.65 | $ | (0.19 | ) | $ | (0.74 | ) | $ | 0.00 | $ | (0.93 | ) | |||||||||||||||||
06/30/2017 | 8.73 | 0.20 | 2.17 | 2.37 | (0.27 | ) | 0.00 | 0.00 | (0.27 | ) | ||||||||||||||||||||||||||
06/30/2016 | 9.95 | 0.32 | (1.37 | ) | (1.05 | ) | (0.17 | ) | 0.00 | 0.00 | (0.17 | ) | ||||||||||||||||||||||||
06/05/2015 - 06/30/2015 | 10.00 | 0.06 | (0.11 | ) | (0.05 | ) | 0.00 | 0.00 | 0.00 | 0.00 | ||||||||||||||||||||||||||
Class P | ||||||||||||||||||||||||||||||||||||
07/01/2017 - 12/31/2017+ | 10.79 | 0.14 | 1.48 | 1.62 | (0.18 | ) | (0.74 | ) | 0.00 | (0.92 | ) | |||||||||||||||||||||||||
06/30/2017 | 8.70 | 0.23 | 2.12 | 2.35 | (0.26 | ) | 0.00 | 0.00 | (0.26 | ) | ||||||||||||||||||||||||||
06/30/2016 | 9.96 | 0.25 | (1.33 | ) | (1.08 | ) | (0.18 | ) | 0.00 | 0.00 | (0.18 | ) | ||||||||||||||||||||||||
06/05/2015 - 06/30/2015 | 10.00 | 0.06 | (0.10 | ) | (0.04 | ) | 0.00 | 0.00 | 0.00 | 0.00 | ||||||||||||||||||||||||||
Class A | ||||||||||||||||||||||||||||||||||||
07/01/2017 - 12/31/2017+ | 10.81 | 0.11 | 1.52 | 1.63 | (0.19 | ) | (0.74 | ) | 0.00 | (0.93 | ) | |||||||||||||||||||||||||
06/30/2017 | 8.73 | 0.14 | 2.19 | 2.33 | (0.25 | ) | 0.00 | 0.00 | (0.25 | ) | ||||||||||||||||||||||||||
06/30/2016 | 9.96 | 0.22 | (1.30 | ) | (1.08 | ) | (0.15 | ) | 0.00 | 0.00 | (0.15 | ) | ||||||||||||||||||||||||
06/05/2015 - 06/30/2015 | 10.00 | 0.08 | (0.12 | ) | (0.04 | ) | 0.00 | 0.00 | 0.00 | 0.00 | ||||||||||||||||||||||||||
Class C | ||||||||||||||||||||||||||||||||||||
07/01/2017 - 12/31/2017+ | 10.66 | 0.06 | 1.49 | 1.55 | (0.14 | ) | (0.74 | ) | 0.00 | (0.88 | ) | |||||||||||||||||||||||||
06/30/2017 | 8.67 | 0.12 | 2.12 | 2.24 | (0.25 | ) | 0.00 | 0.00 | (0.25 | ) | ||||||||||||||||||||||||||
06/30/2016 | 9.95 | 0.21 | (1.36 | ) | (1.15 | ) | (0.13 | ) | 0.00 | 0.00 | (0.13 | ) | ||||||||||||||||||||||||
06/05/2015 - 06/30/2015 | 10.00 | 0.06 | (0.11 | ) | (0.05 | ) | 0.00 | 0.00 | 0.00 | 0.00 | ||||||||||||||||||||||||||
PIMCO RAE Fundamental Global Fund | ||||||||||||||||||||||||||||||||||||
Institutional Class | ||||||||||||||||||||||||||||||||||||
07/01/2017 - 12/31/2017+ | $ | 10.78 | $ | 0.35 | $ | 0.95 | $ | 1.30 | $ | (0.46 | ) | $ | (0.27 | ) | $ | 0.00 | $ | (0.73 | ) | |||||||||||||||||
06/30/2017 | 9.32 | 0.24 | 1.55 | 1.79 | (0.24 | ) | (0.09 | ) | 0.00 | (0.33 | ) | |||||||||||||||||||||||||
06/30/2016 | 9.86 | 0.14 | (0.58 | ) | (0.44 | ) | (0.10 | ) | 0.00 | 0.00 | (0.10 | ) | ||||||||||||||||||||||||
06/05/2015 - 06/30/2015 | 10.00 | (0.00 | ) | (0.14 | ) | (0.14 | ) | 0.00 | 0.00 | 0.00 | 0.00 | |||||||||||||||||||||||||
Class P | ||||||||||||||||||||||||||||||||||||
07/01/2017 - 12/31/2017+ | 10.76 | 0.36 | 0.93 | 1.29 | (0.45 | ) | (0.27 | ) | 0.00 | (0.72 | ) | |||||||||||||||||||||||||
06/30/2017 | 9.31 | 0.02 | 1.76 | 1.78 | (0.24 | ) | (0.09 | ) | 0.00 | (0.33 | ) | |||||||||||||||||||||||||
06/30/2016 | 9.85 | 0.08 | (0.52 | ) | (0.44 | ) | (0.10 | ) | 0.00 | 0.00 | (0.10 | ) | ||||||||||||||||||||||||
06/05/2015 - 06/30/2015 | 10.00 | (0.00 | ) | (0.15 | ) | (0.15 | ) | 0.00 | 0.00 | 0.00 | 0.00 | |||||||||||||||||||||||||
Class A | ||||||||||||||||||||||||||||||||||||
07/01/2017 - 12/31/2017+ | 10.72 | 0.32 | 0.95 | 1.27 | (0.44 | ) | (0.27 | ) | 0.00 | (0.71 | ) | |||||||||||||||||||||||||
06/30/2017 | 9.29 | 0.18 | 1.57 | 1.75 | (0.23 | ) | (0.09 | ) | 0.00 | (0.32 | ) | |||||||||||||||||||||||||
06/30/2016 | 9.85 | 0.02 | (0.48 | ) | (0.46 | ) | (0.10 | ) | 0.00 | 0.00 | (0.10 | ) | ||||||||||||||||||||||||
06/05/2015 - 06/30/2015 | 10.00 | (0.00 | ) | (0.15 | ) | (0.15 | ) | 0.00 | 0.00 | 0.00 | 0.00 | |||||||||||||||||||||||||
Class C | ||||||||||||||||||||||||||||||||||||
07/01/2017 - 12/31/2017+ | 10.59 | 0.30 | 0.92 | 1.22 | (0.41 | ) | (0.27 | ) | 0.00 | (0.68 | ) | |||||||||||||||||||||||||
06/30/2017 | 9.22 | 0.11 | 1.55 | 1.66 | (0.20 | ) | (0.09 | ) | 0.00 | (0.29 | ) | |||||||||||||||||||||||||
06/30/2016 | 9.84 | 0.00 | (0.52 | ) | (0.52 | ) | (0.10 | ) | 0.00 | 0.00 | (0.10 | ) | ||||||||||||||||||||||||
06/05/2015 - 06/30/2015 | 10.00 | (0.01 | ) | (0.15 | ) | (0.16 | ) | 0.00 | 0.00 | 0.00 | 0.00 | |||||||||||||||||||||||||
PIMCO RAE Fundamental Global ex-US Fund | ||||||||||||||||||||||||||||||||||||
Institutional Class | ||||||||||||||||||||||||||||||||||||
07/01/2017 - 12/31/2017+ | $ | 10.49 | $ | 0.38 | $ | 0.90 | $ | 1.28 | $ | (0.47 | ) | $ | 0.00 | $ | 0.00 | $ | (0.47 | ) | ||||||||||||||||||
06/30/2017 | 8.68 | 0.22 | 1.83 | 2.05 | (0.22 | ) | 0.00 | (0.02 | ) | (0.24 | ) | |||||||||||||||||||||||||
06/30/2016 | 9.86 | 0.10 | (1.18 | ) | (1.08 | ) | (0.10 | ) | 0.00 | (0.00 | ) | (0.10 | ) | |||||||||||||||||||||||
06/05/2015 - 06/30/2015 | 10.00 | (0.00 | ) | (0.14 | ) | (0.14 | ) | 0.00 | 0.00 | 0.00 | 0.00 | |||||||||||||||||||||||||
Class P | ||||||||||||||||||||||||||||||||||||
07/01/2017 - 12/31/2017+ | 10.47 | 0.42 | 0.84 | 1.26 | (0.46 | ) | 0.00 | 0.00 | (0.46 | ) | ||||||||||||||||||||||||||
06/30/2017 | 8.67 | 0.07 | 1.97 | 2.04 | (0.22 | ) | 0.00 | (0.02 | ) | (0.24 | ) | |||||||||||||||||||||||||
06/30/2016 | 9.86 | 0.09 | (1.18 | ) | (1.09 | ) | (0.10 | ) | 0.00 | (0.00 | ) | (0.10 | ) | |||||||||||||||||||||||
06/05/2015 - 06/30/2015 | 10.00 | (0.00 | ) | (0.14 | ) | (0.14 | ) | 0.00 | 0.00 | 0.00 | 0.00 |
20 | PIMCO EQUITY SERIES | See Accompanying Notes |
Table of Contents
Ratios/Supplemental Data | ||||||||||||||||||||||||||||||||||
Ratios to Average Net Assets(c) | ||||||||||||||||||||||||||||||||||
Net Asset Value End of Year or Period | Total Return | Net Assets End of Year or Period (000s) | Expenses | Expenses Excluding Waivers | Expenses Excluding Interest Expense | Expenses Excluding Interest Expense and Waivers | Net Investment Income (Loss) | Portfolio Turnover Rate | ||||||||||||||||||||||||||
$ | 11.55 | 15.60 | % | $ | 1,952,708 | 0.76 | %* | 0.97 | %* | 0.76 | %* | 0.97 | %* | 2.44 | %* | 15 | % | |||||||||||||||||
10.83 | 27.53 | 1,510,983 | 0.75 | 0.96 | 0.75 | 0.96 | 1.99 | 43 | ||||||||||||||||||||||||||
8.73 | (10.32 | ) | 1,379,204 | 0.76 | 0.96 | 0.76 | 0.96 | 3.92 | 30 | |||||||||||||||||||||||||
9.95 | (0.50 | ) | 199,378 | 0.75 | * | 0.98 | * | 0.75 | * | 0.98 | * | 10.11 | * | 7 | ||||||||||||||||||||
11.49 | 15.40 | 16,695 | 0.86 | * | 1.07 | * | 0.86 | * | 1.07 | * | 2.35 | * | 15 | |||||||||||||||||||||
10.79 | 27.46 | 14,664 | 0.85 | 1.06 | 0.85 | 1.06 | 2.18 | 43 | ||||||||||||||||||||||||||
8.70 | (10.54 | ) | 1,827 | 0.86 | 1.06 | 0.86 | 1.06 | 3.25 | 30 | |||||||||||||||||||||||||
9.96 | (0.40 | ) | 10 | 0.85 | * | 1.08 | * | 0.85 | * | 1.08 | * | 10.09 | * | 7 | ||||||||||||||||||||
11.51 | 15.41 | 4,757 | 1.11 | * | 1.32 | * | 1.11 | * | 1.32 | * | 1.95 | * | 15 | |||||||||||||||||||||
10.81 | 27.06 | 1,937 | 1.10 | 1.31 | 1.10 | 1.31 | 1.35 | 43 | ||||||||||||||||||||||||||
8.73 | (10.61 | ) | 146 | 1.11 | 1.31 | 1.11 | 1.31 | 2.64 | 30 | |||||||||||||||||||||||||
9.96 | (0.40 | ) | 19 | 1.10 | * | 1.33 | * | 1.10 | * | 1.33 | * | 13.46 | * | 7 | ||||||||||||||||||||
11.33 | 14.94 | 2,265 | 1.86 | * | 2.07 | * | 1.86 | * | 2.07 | * | 0.96 | * | 15 | |||||||||||||||||||||
10.66 | 26.13 | 1,081 | 1.85 | 2.06 | 1.85 | 2.06 | 1.18 | 43 | ||||||||||||||||||||||||||
8.67 | (11.33 | ) | 95 | 1.86 | 2.06 | 1.86 | 2.06 | 2.56 | 30 | |||||||||||||||||||||||||
9.95 | (0.50 | ) | 10 | 1.85 | * | 2.08 | * | 1.85 | * | 2.08 | * | 9.08 | * | 7 | ||||||||||||||||||||
$ | 11.35 | 12.11 | % | $ | 420,322 | 0.02 | %* | 0.72 | %* | 0.02 | %* | 0.72 | %* | 6.15 | %* | 14 | % | |||||||||||||||||
10.78 | 19.60 | 409,144 | 0.01 | 0.71 | 0.01 | 0.71 | 2.36 | 20 | ||||||||||||||||||||||||||
9.32 | (4.38 | ) | 282,274 | 0.04 | 0.71 | 0.04 | 0.71 | 1.59 | 13 | |||||||||||||||||||||||||
9.86 | (1.40 | ) | 38,160 | 0.04 | * | 0.86 | * | 0.04 | * | 0.86 | * | (0.04 | )* | 2 | ||||||||||||||||||||
11.33 | 12.09 | 3,810 | 0.12 | * | 0.82 | * | 0.12 | * | 0.82 | * | 6.31 | * | 14 | |||||||||||||||||||||
10.76 | 19.49 | 3,127 | 0.11 | 0.81 | 0.11 | 0.81 | 0.22 | 20 | ||||||||||||||||||||||||||
9.31 | (4.44 | ) | 57 | 0.14 | 0.81 | 0.14 | 0.81 | 0.92 | 13 | |||||||||||||||||||||||||
9.85 | (1.50 | ) | 10 | 0.14 | * | 0.96 | * | 0.14 | * | 0.96 | * | (0.14 | )* | 2 | ||||||||||||||||||||
11.28 | 11.91 | 1,095 | 0.37 | * | 1.07 | * | 0.37 | * | 1.07 | * | 5.58 | * | 14 | |||||||||||||||||||||
10.72 | 19.18 | 1,009 | 0.36 | 1.06 | 0.36 | 1.06 | 1.79 | 20 | ||||||||||||||||||||||||||
9.29 | (4.61 | ) | 286 | 0.39 | 1.06 | 0.39 | 1.06 | 0.23 | 13 | |||||||||||||||||||||||||
9.85 | (1.50 | ) | 10 | 0.39 | * | 1.21 | * | 0.39 | * | 1.21 | * | (0.40 | )* | 2 | ||||||||||||||||||||
11.13 | 11.54 | 1,721 | 1.12 | * | 1.82 | * | 1.12 | * | 1.82 | * | 5.29 | * | 14 | |||||||||||||||||||||
10.59 | 18.30 | 1,469 | 1.11 | 1.81 | 1.11 | 1.81 | 1.11 | 20 | ||||||||||||||||||||||||||
9.22 | (5.29 | ) | 667 | 1.14 | 1.81 | 1.14 | 1.81 | (0.04 | ) | 13 | ||||||||||||||||||||||||
9.84 | (1.60 | ) | 17 | 1.14 | * | 1.96 | * | 1.14 | * | 1.96 | * | (1.06 | )* | 2 | ||||||||||||||||||||
$ | 11.30 | 12.16 | % | $ | 85,405 | 0.01 | %* | 0.79 | %* | 0.01 | %* | 0.79 | %* | 6.70 | %* | 4 | % | |||||||||||||||||
10.49 | 23.98 | 78,610 | 0.00 | 0.76 | 0.00 | 0.76 | 2.23 | 8 | ||||||||||||||||||||||||||
8.68 | (10.93 | ) | 62,809 | 0.00 | 0.76 | 0.00 | 0.76 | 1.10 | 8 | |||||||||||||||||||||||||
9.86 | (1.40 | ) | 70,077 | 0.01 | * | 0.84 | * | 0.01 | * | 0.84 | * | (0.02 | )* | 2 | ||||||||||||||||||||
11.27 | 12.05 | 517 | 0.11 | * | 0.89 | * | 0.11 | * | 0.89 | * | 7.44 | * | 4 | |||||||||||||||||||||
10.47 | 23.87 | 349 | 0.10 | 0.86 | 0.10 | 0.86 | 0.69 | 8 | ||||||||||||||||||||||||||
8.67 | (11.07 | ) | 9 | 0.10 | 0.86 | 0.10 | 0.86 | 1.01 | 8 | |||||||||||||||||||||||||
9.86 | (1.40 | ) | 10 | 0.11 | * | 0.94 | * | 0.11 | * | 0.94 | * | (0.11 | )* | 2 |
SEMIANNUAL REPORT | DECEMBER 31, 2017 | 21 |
Table of Contents
Financial Highlights (Cont.)
Investment Operations | Less Distributions(b) | |||||||||||||||||||||||||||||||||||
Selected Per Share Data for the Year or Period Ended^: | Net Asset Value | Net Investment Income (Loss)(a) | Net Realized/ Unrealized Gain (Loss) | Total | From Net Investment Income | From Net Realized Capital Gains | Tax Basis Return of Capital | Total | ||||||||||||||||||||||||||||
PIMCO RAE Fundamental Global ex-US Fund (Cont.) | ||||||||||||||||||||||||||||||||||||
Class A | ||||||||||||||||||||||||||||||||||||
07/01/2017 - 12/31/2017+ | $ | 10.44 | $ | 0.38 | $ | 0.87 | $ | 1.25 | $ | (0.45 | ) | $ | 0.00 | $ | 0.00 | $ | (0.45 | ) | ||||||||||||||||||
06/30/2017 | 8.66 | 0.10 | 1.92 | 2.02 | (0.22 | ) | 0.00 | (0.02 | ) | (0.24 | ) | |||||||||||||||||||||||||
06/30/2016 | 9.86 | (0.00 | ) | (1.11 | ) | (1.11 | ) | (0.09 | ) | 0.00 | (0.00 | ) | (0.09 | ) | ||||||||||||||||||||||
06/05/2015 - 06/30/2015 | 10.00 | (0.00 | ) | (0.14 | ) | (0.14 | ) | 0.00 | 0.00 | 0.00 | 0.00 | |||||||||||||||||||||||||
Class C | ||||||||||||||||||||||||||||||||||||
07/01/2017 - 12/31/2017+ | 10.34 | 0.35 | 0.85 | 1.20 | (0.42 | ) | 0.00 | 0.00 | (0.42 | ) | ||||||||||||||||||||||||||
06/30/2017 | 8.61 | 0.10 | 1.83 | 1.93 | (0.18 | ) | 0.00 | (0.02 | ) | (0.20 | ) | |||||||||||||||||||||||||
06/30/2016 | 9.85 | (0.06 | ) | (1.11 | ) | (1.17 | ) | (0.07 | ) | 0.00 | (0.00 | ) | (0.07 | ) | ||||||||||||||||||||||
06/05/2015 - 06/30/2015 | 10.00 | (0.01 | ) | (0.14 | ) | (0.15 | ) | 0.00 | 0.00 | 0.00 | 0.00 | |||||||||||||||||||||||||
PIMCO RAE Fundamental International Fund | ||||||||||||||||||||||||||||||||||||
Institutional Class | ||||||||||||||||||||||||||||||||||||
07/01/2017 - 12/31/2017+ | $ | 10.27 | $ | 0.10 | $ | 1.06 | $ | 1.16 | $ | (0.28 | ) | $ | (0.01 | ) | $ | 0.00 | $ | (0.29 | ) | |||||||||||||||||
06/30/2017 | 8.56 | 0.28 | 1.64 | 1.92 | (0.21 | ) | 0.00 | 0.00 | (0.21 | ) | ||||||||||||||||||||||||||
06/30/2016 | 9.83 | 0.28 | (1.32 | ) | (1.04 | ) | (0.08 | ) | (0.15 | ) | 0.00 | (0.23 | ) | |||||||||||||||||||||||
06/05/2015 - 06/30/2015 | 10.00 | 0.02 | (0.19 | ) | (0.17 | ) | 0.00 | 0.00 | 0.00 | 0.00 | ||||||||||||||||||||||||||
Class P | ||||||||||||||||||||||||||||||||||||
07/01/2017 - 12/31/2017+ | 10.24 | 0.10 | 1.06 | 1.16 | (0.27 | ) | (0.01 | ) | 0.00 | (0.28 | ) | |||||||||||||||||||||||||
06/30/2017 | 8.55 | 0.29 | 1.62 | 1.91 | (0.22 | ) | 0.00 | 0.00 | (0.22 | ) | ||||||||||||||||||||||||||
06/30/2016 | 9.83 | 0.28 | (1.33 | ) | (1.05 | ) | (0.08 | ) | (0.15 | ) | 0.00 | (0.23 | ) | |||||||||||||||||||||||
06/05/2015 - 06/30/2015 | 10.00 | 0.02 | (0.19 | ) | (0.17 | ) | 0.00 | 0.00 | 0.00 | 0.00 | ||||||||||||||||||||||||||
Class A | ||||||||||||||||||||||||||||||||||||
07/01/2017 - 12/31/2017+ | 10.24 | 0.06 | 1.08 | 1.14 | (0.28 | ) | (0.01 | ) | 0.00 | (0.29 | ) | |||||||||||||||||||||||||
06/30/2017 | 8.55 | 0.29 | 1.60 | 1.89 | (0.20 | ) | 0.00 | 0.00 | (0.20 | ) | ||||||||||||||||||||||||||
06/30/2016 | 9.83 | 0.34 | (1.42 | ) | (1.08 | ) | (0.05 | ) | (0.15 | ) | 0.00 | (0.20 | ) | |||||||||||||||||||||||
06/05/2015 - 06/30/2015 | 10.00 | 0.01 | (0.18 | ) | (0.17 | ) | 0.00 | 0.00 | 0.00 | 0.00 | ||||||||||||||||||||||||||
Class C | ||||||||||||||||||||||||||||||||||||
07/01/2017 - 12/31/2017+ | 10.07 | 0.03 | 1.06 | 1.09 | (0.24 | ) | (0.01 | ) | 0.00 | (0.25 | ) | |||||||||||||||||||||||||
06/30/2017 | 8.45 | 0.16 | 1.63 | 1.79 | (0.17 | ) | 0.00 | 0.00 | (0.17 | ) | ||||||||||||||||||||||||||
06/30/2016 | 9.83 | 0.28 | (1.43 | ) | (1.15 | ) | (0.08 | ) | (0.15 | ) | 0.00 | (0.23 | ) | |||||||||||||||||||||||
06/05/2015 - 06/30/2015 | 10.00 | 0.01 | (0.18 | ) | (0.17 | ) | 0.00 | 0.00 | 0.00 | 0.00 | ||||||||||||||||||||||||||
PIMCO RAE Fundamental US Fund | ||||||||||||||||||||||||||||||||||||
Institutional Class | ||||||||||||||||||||||||||||||||||||
07/01/2017 - 12/31/2017+ | $ | 10.57 | $ | 0.12 | $ | 1.14 | $ | 1.26 | $ | (0.22 | ) | $ | (0.44 | ) | $ | 0.00 | $ | (0.66 | ) | |||||||||||||||||
06/30/2017 | 9.82 | 0.22 | 1.07 | 1.29 | (0.22 | ) | (0.32 | ) | 0.00 | (0.54 | ) | |||||||||||||||||||||||||
06/30/2016 | 9.85 | 0.22 | 0.08 | 0.30 | (0.11 | ) | (0.22 | ) | 0.00 | (0.33 | ) | |||||||||||||||||||||||||
06/05/2015 - 06/30/2015 | 10.00 | 0.01 | (0.16 | ) | (0.15 | ) | 0.00 | 0.00 | 0.00 | 0.00 | ||||||||||||||||||||||||||
Class P | ||||||||||||||||||||||||||||||||||||
07/01/2017 - 12/31/2017+ | 10.54 | 0.11 | 1.14 | 1.25 | (0.21 | ) | (0.44 | ) | 0.00 | (0.65 | ) | |||||||||||||||||||||||||
06/30/2017 | 9.81 | 0.21 | 1.06 | 1.27 | (0.22 | ) | (0.32 | ) | 0.00 | (0.54 | ) | |||||||||||||||||||||||||
06/30/2016 | 9.85 | 0.21 | 0.08 | 0.29 | (0.11 | ) | (0.22 | ) | 0.00 | (0.33 | ) | |||||||||||||||||||||||||
06/05/2015 - 06/30/2015 | 10.00 | 0.01 | (0.16 | ) | (0.15 | ) | 0.00 | 0.00 | 0.00 | 0.00 | ||||||||||||||||||||||||||
Class A | ||||||||||||||||||||||||||||||||||||
07/01/2017 - 12/31/2017+ | 10.50 | 0.10 | 1.13 | 1.23 | (0.20 | ) | (0.44 | ) | 0.00 | (0.64 | ) | |||||||||||||||||||||||||
06/30/2017 | 9.79 | 0.17 | 1.07 | 1.24 | (0.21 | ) | (0.32 | ) | 0.00 | (0.53 | ) | |||||||||||||||||||||||||
06/30/2016 | 9.86 | 0.18 | 0.07 | 0.25 | (0.10 | ) | (0.22 | ) | 0.00 | (0.32 | ) | |||||||||||||||||||||||||
06/05/2015 - 06/30/2015 | 10.00 | 0.01 | (0.15 | ) | (0.14 | ) | 0.00 | 0.00 | 0.00 | 0.00 | ||||||||||||||||||||||||||
Class C | ||||||||||||||||||||||||||||||||||||
07/01/2017 - 12/31/2017+ | 10.34 | 0.05 | 1.12 | 1.17 | (0.15 | ) | (0.44 | ) | 0.00 | (0.59 | ) | |||||||||||||||||||||||||
06/30/2017 | 9.71 | 0.09 | 1.06 | 1.15 | (0.20 | ) | (0.32 | ) | 0.00 | (0.52 | ) | |||||||||||||||||||||||||
06/30/2016 | 9.85 | 0.11 | 0.06 | 0.17 | (0.09 | ) | (0.22 | ) | 0.00 | (0.31 | ) | |||||||||||||||||||||||||
06/05/2015 - 06/30/2015 | 10.00 | 0.01 | (0.16 | ) | (0.15 | ) | 0.00 | 0.00 | 0.00 | 0.00 |
22 | PIMCO EQUITY SERIES | See Accompanying Notes |
Table of Contents
Ratios/Supplemental Data | ||||||||||||||||||||||||||||||||||
Ratios to Average Net Assets(c) | ||||||||||||||||||||||||||||||||||
Net Asset Value End of Year or Period | Total Return | Net Assets End of Year or Period (000s) | Expenses | Expenses Excluding Waivers | Expenses Excluding Interest Expense | Expenses Excluding Interest Expense and Waivers | Net Investment Income (Loss) | Portfolio Turnover Rate | ||||||||||||||||||||||||||
$ | 11.24 | 11.97 | % | $ | 1,113 | 0.36 | %* | 1.14 | %* | 0.36 | %* | 1.14 | %* | 6.89 | %* | 4 | % | |||||||||||||||||
10.44 | 23.65 | 717 | 0.35 | 1.11 | 0.35 | 1.11 | 1.02 | 8 | ||||||||||||||||||||||||||
8.66 | (11.29 | ) | 9 | 0.35 | 1.11 | 0.35 | 1.11 | (0.02 | ) | 8 | ||||||||||||||||||||||||
9.86 | (1.40 | ) | 10 | 0.36 | * | 1.19 | * | 0.36 | * | 1.19 | * | (0.37 | )* | 2 | ||||||||||||||||||||
11.12 | 11.56 | 1,480 | 1.11 | * | 1.89 | * | 1.11 | * | 1.89 | * | 6.41 | * | 4 | |||||||||||||||||||||
10.34 | 22.68 | 1,009 | 1.10 | 1.86 | 1.10 | 1.86 | 0.99 | 8 | ||||||||||||||||||||||||||
8.61 | (11.90 | ) | 354 | 1.10 | 1.86 | 1.10 | 1.86 | (0.67 | ) | 8 | ||||||||||||||||||||||||
9.85 | (1.50 | ) | 10 | 1.11 | * | 1.94 | * | 1.11 | * | 1.94 | * | (1.12 | )* | 2 | ||||||||||||||||||||
$ | 11.14 | 11.27 | % | $ | 514,272 | 0.51 | %* | 0.62 | %* | 0.51 | %* | 0.62 | %* | 1.90 | %* | 16 | % | |||||||||||||||||
10.27 | 22.76 | 475,759 | 0.50 | 0.61 | 0.50 | 0.61 | 2.90 | 20 | ||||||||||||||||||||||||||
8.56 | (10.60 | ) | 247,182 | 0.50 | 0.61 | 0.50 | 0.61 | 3.25 | 39 | |||||||||||||||||||||||||
9.83 | (1.70 | ) | 151,532 | 0.50 | * | 0.64 | * | 0.50 | * | 0.64 | * | 2.68 | * | 7 | ||||||||||||||||||||
11.12 | 11.34 | 5,004 | 0.61 | * | 0.72 | * | 0.61 | * | 0.72 | * | 1.84 | * | 16 | |||||||||||||||||||||
10.24 | 22.67 | 4,998 | 0.60 | 0.71 | 0.60 | 0.71 | 3.03 | 20 | ||||||||||||||||||||||||||
8.55 | (10.70 | ) | 1,041 | 0.60 | 0.71 | 0.60 | 0.71 | 3.24 | 39 | |||||||||||||||||||||||||
9.83 | (1.70 | ) | 10 | 0.60 | * | 0.74 | * | 0.60 | * | 0.74 | * | 2.57 | * | 7 | ||||||||||||||||||||
11.09 | 11.14 | 2,439 | 0.86 | * | 0.97 | * | 0.86 | * | 0.97 | * | 1.06 | * | 16 | |||||||||||||||||||||
10.24 | 22.34 | 323 | 0.85 | 0.96 | 0.85 | 0.96 | 2.99 | 20 | ||||||||||||||||||||||||||
8.55 | (10.95 | ) | 46 | 0.85 | 0.96 | 0.85 | 0.96 | 3.94 | 39 | |||||||||||||||||||||||||
9.83 | (1.70 | ) | 10 | 0.85 | * | 0.99 | * | 0.85 | * | 0.99 | * | 2.32 | * | 7 | ||||||||||||||||||||
10.91 | 10.75 | 930 | 1.61 | * | 1.72 | * | 1.61 | * | 1.72 | * | 0.60 | * | 16 | |||||||||||||||||||||
10.07 | 21.44 | 507 | 1.60 | 1.71 | 1.60 | 1.71 | 1.69 | 20 | ||||||||||||||||||||||||||
8.45 | (11.69 | ) | 300 | 1.60 | 1.71 | 1.60 | 1.71 | 3.28 | 39 | |||||||||||||||||||||||||
9.83 | (1.70 | ) | 10 | 1.60 | * | 1.74 | * | 1.60 | * | 1.74 | * | 1.56 | * | 7 | ||||||||||||||||||||
$ | 11.17 | 11.91 | % | $ | 659,220 | 0.41 | %* | 0.52 | %* | 0.41 | %* | 0.52 | %* | 2.12 | %* | 18 | % | |||||||||||||||||
10.57 | 13.33 | 620,951 | 0.40 | 0.51 | 0.40 | 0.51 | 2.08 | 31 | ||||||||||||||||||||||||||
9.82 | 3.16 | 511,838 | 0.40 | 0.51 | 0.40 | 0.51 | 2.29 | 42 | ||||||||||||||||||||||||||
9.85 | (1.50 | ) | 447,755 | 0.40 | * | 0.51 | * | 0.40 | * | 0.51 | * | 2.03 | * | 5 | ||||||||||||||||||||
11.14 | 11.90 | 8,245 | 0.51 | * | 0.62 | * | 0.51 | * | 0.62 | * | 2.04 | * | 18 | |||||||||||||||||||||
10.54 | 13.15 | 7,769 | 0.50 | 0.61 | 0.50 | 0.61 | 1.99 | 31 | ||||||||||||||||||||||||||
9.81 | 3.09 | 3,372 | 0.50 | 0.61 | 0.50 | 0.61 | 2.23 | 42 | ||||||||||||||||||||||||||
9.85 | (1.50 | ) | 10 | 0.50 | * | 0.61 | * | 0.50 | * | 0.61 | * | 1.92 | * | 5 | ||||||||||||||||||||
11.09 | 11.72 | 8,285 | 0.81 | * | 0.92 | * | 0.81 | * | 0.92 | * | 1.73 | * | 18 | |||||||||||||||||||||
10.50 | 12.83 | 7,259 | 0.80 | 0.91 | 0.80 | 0.91 | 1.68 | 31 | ||||||||||||||||||||||||||
9.79 | 2.67 | 2,982 | 0.80 | 0.91 | 0.80 | 0.91 | 1.88 | 42 | ||||||||||||||||||||||||||
9.86 | (1.40 | ) | 14 | 0.80 | * | 0.91 | * | 0.80 | * | 0.91 | * | 1.67 | * | 5 | ||||||||||||||||||||
10.92 | 11.37 | 5,172 | 1.56 | * | 1.67 | * | 1.56 | * | 1.67 | * | 0.99 | * | 18 | |||||||||||||||||||||
10.34 | 11.94 | 5,452 | 1.55 | 1.66 | 1.55 | 1.66 | 0.92 | 31 | ||||||||||||||||||||||||||
9.71 | 1.89 | 1,765 | 1.55 | 1.66 | 1.55 | 1.66 | 1.15 | 42 | ||||||||||||||||||||||||||
9.85 | (1.50 | ) | 10 | 1.55 | * | 1.66 | * | 1.55 | * | 1.66 | * | 0.86 | * | 5 |
SEMIANNUAL REPORT | DECEMBER 31, 2017 | 23 |
Table of Contents
Financial Highlights (Cont.)
Investment Operations | Less Distributions(b) | |||||||||||||||||||||||||||||||||||
Selected Per Share Data for the Year or Period Ended^: | Net Asset Value | Net Investment Income (Loss)(a) | Net Realized/ Unrealized Gain (Loss) | Total | From Net Investment Income | From Net Realized Capital Gains | Tax Basis Return of Capital | Total | ||||||||||||||||||||||||||||
PIMCO RAE Fundamental US Small Fund | ||||||||||||||||||||||||||||||||||||
Institutional Class | ||||||||||||||||||||||||||||||||||||
07/01/2017 - 12/31/2017+ | $ | 11.10 | $ | 0.09 | $ | 0.98 | $ | 1.07 | $ | (0.17 | ) | $ | (0.38 | ) | $ | 0.00 | $ | (0.55 | ) | |||||||||||||||||
06/30/2017 | 9.31 | 0.12 | 1.81 | 1.93 | (0.14 | ) | 0.00 | 0.00 | (0.14 | ) | ||||||||||||||||||||||||||
06/30/2016 | 9.93 | 0.10 | (0.57 | ) | (0.47 | ) | (0.04 | ) | (0.11 | ) | 0.00 | (0.15 | ) | |||||||||||||||||||||||
06/05/2015 - 06/30/2015 | 10.00 | 0.01 | (0.08 | ) | (0.07 | ) | 0.00 | 0.00 | 0.00 | 0.00 | ||||||||||||||||||||||||||
Class P | ||||||||||||||||||||||||||||||||||||
07/01/2017 - 12/31/2017+ | 11.07 | 0.08 | 0.97 | 1.05 | (0.16 | ) | (0.38 | ) | 0.00 | (0.54 | ) | |||||||||||||||||||||||||
06/30/2017 | 9.29 | 0.12 | 1.79 | 1.91 | (0.13 | ) | 0.00 | 0.00 | (0.13 | ) | ||||||||||||||||||||||||||
06/30/2016 | 9.92 | 0.11 | (0.59 | ) | (0.48 | ) | (0.04 | ) | (0.11 | ) | 0.00 | (0.15 | ) | |||||||||||||||||||||||
06/05/2015 - 06/30/2015 | 10.00 | 0.01 | (0.09 | ) | (0.08 | ) | 0.00 | 0.00 | 0.00 | 0.00 | ||||||||||||||||||||||||||
Class A | ||||||||||||||||||||||||||||||||||||
07/01/2017 - 12/31/2017+ | 11.05 | 0.06 | 0.97 | 1.03 | (0.14 | ) | (0.38 | ) | 0.00 | (0.52 | ) | |||||||||||||||||||||||||
06/30/2017 | 9.29 | 0.10 | 1.79 | 1.89 | (0.13 | ) | 0.00 | 0.00 | (0.13 | ) | ||||||||||||||||||||||||||
06/30/2016 | 9.92 | 0.08 | (0.60 | ) | (0.52 | ) | (0.00 | ) | (0.11 | ) | 0.00 | (0.11 | ) | |||||||||||||||||||||||
06/05/2015 - 06/30/2015 | 10.00 | 0.01 | (0.09 | ) | (0.08 | ) | 0.00 | 0.00 | 0.00 | 0.00 | ||||||||||||||||||||||||||
Class C | ||||||||||||||||||||||||||||||||||||
07/01/2017 - 12/31/2017+ | 10.87 | 0.02 | 0.95 | 0.97 | (0.11 | ) | (0.38 | ) | 0.00 | (0.49 | ) | |||||||||||||||||||||||||
06/30/2017 | 9.19 | 0.01 | 1.77 | 1.78 | (0.10 | ) | 0.00 | 0.00 | (0.10 | ) | ||||||||||||||||||||||||||
06/30/2016 | 9.91 | 0.01 | (0.58 | ) | (0.57 | ) | (0.04 | ) | (0.11 | ) | 0.00 | (0.15 | ) | |||||||||||||||||||||||
06/05/2015 - 06/30/2015 | 10.00 | 0.00 | (0.09 | ) | (0.09 | ) | 0.00 | 0.00 | 0.00 | 0.00 |
+ | Unaudited |
* | Annualized |
^ | A zero balance may reflect actual amounts rounding to less than $0.01 or 0.01%. |
(a) | Per share amounts based on average number of shares outstanding during the year or period. |
(b) | The tax characterization of distributions is determined in accordance with Federal income tax regulations. The actual tax characterization of distributions paid is determined at the end of the fiscal year. See Note 2, Distributions to Shareholders, in the Notes to Financial Statements for more information. |
(c) | Ratios shown do not include expenses of the investment companies in which a Fund may invest. See Note 8, Fees and Expenses, in the Notes to Financial Statements for more information regarding the expenses and any applicable fee waivers associated with these investments. |
24 | PIMCO EQUITY SERIES | See Accompanying Notes |
Table of Contents
Ratios/Supplemental Data | ||||||||||||||||||||||||||||||||||
Ratios to Average Net Assets(c) | ||||||||||||||||||||||||||||||||||
Net Asset Value End of Year or Period | Total Return | Net Assets End of Year or Period (000s) | Expenses | Expenses Excluding Waivers | Expenses Excluding Interest Expense | Expenses Excluding Interest Expense and Waivers | Net Investment Income (Loss) | Portfolio Turnover Rate | ||||||||||||||||||||||||||
$ | 11.62 | 9.66 | % | $ | 102,329 | 0.51 | %* | 0.63 | %* | 0.51 | %* | 0.63 | %* | 1.57 | %* | 14 | % | |||||||||||||||||
11.10 | 20.70 | 93,541 | 0.50 | 0.61 | 0.50 | 0.61 | 1.13 | 45 | ||||||||||||||||||||||||||
9.31 | (4.68 | ) | 81,226 | 0.50 | 0.61 | 0.50 | 0.61 | 1.10 | 85 | |||||||||||||||||||||||||
9.93 | (0.70 | ) | 46,426 | 0.50 | * | 0.73 | * | 0.50 | * | 0.73 | * | 1.44 | * | 9 | ||||||||||||||||||||
11.58 | 9.55 | 4,400 | 0.61 | * | 0.73 | * | 0.61 | * | 0.73 | * | 1.48 | * | 14 | |||||||||||||||||||||
11.07 | 20.59 | 3,902 | 0.60 | 0.71 | 0.60 | 0.71 | 1.12 | 45 | ||||||||||||||||||||||||||
9.29 | (4.79 | ) | 1,456 | 0.60 | 0.71 | 0.60 | 0.71 | 1.26 | 85 | |||||||||||||||||||||||||
9.92 | (0.80 | ) | 10 | 0.60 | * | 0.83 | * | 0.60 | * | 0.83 | * | 1.33 | * | 9 | ||||||||||||||||||||
11.56 | 9.40 | 8,230 | 0.91 | * | 1.03 | * | 0.91 | * | 1.03 | * | 1.13 | * | 14 | |||||||||||||||||||||
11.05 | 20.32 | 8,549 | 0.90 | 1.01 | 0.90 | 1.01 | 0.88 | 45 | ||||||||||||||||||||||||||
9.29 | (5.11 | ) | 1,699 | 0.90 | 1.01 | 0.90 | 1.01 | 0.85 | 85 | |||||||||||||||||||||||||
9.92 | (0.80 | ) | 10 | 0.90 | * | 1.13 | * | 0.90 | * | 1.13 | * | 1.04 | * | 9 | ||||||||||||||||||||
11.35 | 8.99 | 615 | 1.66 | * | 1.78 | * | 1.66 | * | 1.78 | * | 0.44 | * | 14 | |||||||||||||||||||||
10.87 | 19.37 | 558 | 1.65 | 1.76 | 1.65 | 1.76 | 0.08 | 45 | ||||||||||||||||||||||||||
9.19 | (5.69 | ) | 247 | 1.65 | 1.76 | 1.65 | 1.76 | 0.08 | 85 | |||||||||||||||||||||||||
9.91 | (0.90 | ) | 10 | 1.65 | * | 1.88 | * | 1.65 | * | 1.88 | * | 0.28 | * | 9 |
SEMIANNUAL REPORT | DECEMBER 31, 2017 | 25 |
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 | $ | 1,968,361 | $ | 0 | $ | 0 | $ | 526,097 | $ | 677,794 | $ | 114,680 | ||||||||||||
Investments in Affiliates | 0 | 426,548 | 88,204 | 0 | 0 | 0 | ||||||||||||||||||
Cash | 5,200 | 0 | 0 | 1,072 | 2,594 | 642 | ||||||||||||||||||
Foreign currency, at value | 1,788 | 0 | 0 | 292 | 0 | 0 | ||||||||||||||||||
Receivable for investments sold | 0 | 0 | 0 | 468 | 4,655 | 460 | ||||||||||||||||||
Receivable for investments in Affiliates sold | 0 | 11,160 | 141 | 0 | 0 | 0 | ||||||||||||||||||
Receivable for Fund shares sold | 371 | 22 | 240 | 17 | 191 | 56 | ||||||||||||||||||
Interest and/or dividends receivable | 5,640 | 0 | 0 | 842 | 740 | 262 | ||||||||||||||||||
Reimbursement receivable from PIMCO | 19 | 5 | 1 | 5 | 7 | 1 | ||||||||||||||||||
Other assets | 0 | 0 | 0 | 13 | 0 | 0 | ||||||||||||||||||
Total Assets | 1,981,379 | 437,735 | 88,586 | 528,806 | 685,981 | 116,101 | ||||||||||||||||||
Liabilities: | ||||||||||||||||||||||||
Payable for investments purchased | $ | 822 | $ | 0 | $ | 0 | $ | 0 | $ | 53 | $ | 471 | ||||||||||||
Payable for Fund shares redeemed | 1,202 | 43 | 14 | 5,923 | 4,755 | 0 | ||||||||||||||||||
Overdraft due to custodian | 0 | 10,732 | 53 | 0 | 0 | 0 | ||||||||||||||||||
Accrued investment advisory fees | 491 | 0 | 0 | 91 | 87 | 25 | ||||||||||||||||||
Accrued supervisory and administrative fees | 739 | 4 | 1 | 137 | 148 | 27 | ||||||||||||||||||
Accrued distribution fees | 1 | 1 | 1 | 1 | 3 | 0 | ||||||||||||||||||
Accrued servicing fees | 1 | 1 | 1 | 1 | 3 | 2 | ||||||||||||||||||
Accrued taxes payable | 1,668 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||
Other liabilities | 30 | 6 | 1 | 8 | 10 | 2 | ||||||||||||||||||
Total Liabilities | 4,954 | 10,787 | 71 | 6,161 | 5,059 | 527 | ||||||||||||||||||
Net Assets | $ | 1,976,425 | $ | 426,948 | $ | 88,515 | $ | 522,645 | $ | 680,922 | $ | 115,574 | ||||||||||||
Net Assets Consist of: | ||||||||||||||||||||||||
Paid in capital | $ | 1,477,049 | $ | 352,415 | $ | 78,209 | $ | 419,570 | $ | 499,450 | $ | 91,185 | ||||||||||||
Undistributed (overdistributed) net investment income | (9,999 | ) | (4,148 | ) | (643 | ) | (1,790 | ) | (1,139 | ) | (464 | ) | ||||||||||||
Accumulated undistributed net realized gain (loss) | 10,141 | 6,227 | (137 | ) | (3,095 | ) | 3,860 | (8 | ) | |||||||||||||||
Net unrealized appreciation (depreciation) | 499,234 | 72,454 | 11,086 | 107,960 | 178,751 | 24,861 | ||||||||||||||||||
Net Assets | $ | 1,976,425 | $ | 426,948 | $ | 88,515 | $ | 522,645 | $ | 680,922 | $ | 115,574 | ||||||||||||
Cost of investments in securities | $ | 1,467,475 | $ | 0 | $ | 0 | $ | 418,160 | $ | 499,043 | $ | 89,819 | ||||||||||||
Cost of investments in Affiliates | $ | 0 | $ | 354,094 | $ | 77,118 | $ | 0 | $ | 0 | $ | 0 | ||||||||||||
Cost of foreign currency held | $ | 1,782 | $ | 0 | $ | 0 | $ | 290 | $ | 0 | $ | 0 |
† | A zero balance may reflect actual amounts rounding to less than one thousand. |
26 | PIMCO EQUITY SERIES | See Accompanying Notes |
Table of Contents
December 31, 2017 (Unaudited)
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 | $ | 1,952,708 | $ | 420,322 | $ | 85,405 | $ | 514,272 | $ | 659,220 | $ | 102,329 | ||||||||||||
Class P | 16,695 | 3,810 | 517 | 5,004 | 8,245 | 4,400 | ||||||||||||||||||
Class A | 4,757 | 1,095 | 1,113 | 2,439 | 8,285 | 8,230 | ||||||||||||||||||
Class C | 2,265 | 1,721 | 1,480 | 930 | 5,172 | 615 | ||||||||||||||||||
Shares Issued and Outstanding: | ||||||||||||||||||||||||
Institutional Class | 169,087 | 37,021 | 7,560 | 46,145 | 59,017 | 8,810 | ||||||||||||||||||
Class P | 1,453 | 336 | 46 | 450 | 740 | 380 | ||||||||||||||||||
Class A | 413 | 97 | 99 | 220 | 747 | 712 | ||||||||||||||||||
Class C | 200 | 155 | 133 | 85 | 474 | 54 | ||||||||||||||||||
Net Asset Value Per Share Outstanding: | ||||||||||||||||||||||||
Institutional Class | $ | 11.55 | $ | 11.35 | $ | 11.30 | $ | 11.14 | $ | 11.17 | $ | 11.62 | ||||||||||||
Class P | 11.49 | 11.33 | 11.27 | 11.12 | 11.14 | 11.58 | ||||||||||||||||||
Class A | 11.51 | 11.28 | 11.24 | 11.09 | 11.09 | 11.56 | ||||||||||||||||||
Class C | 11.33 | 11.13 | 11.12 | 10.91 | 10.92 | 11.35 |
SEMIANNUAL REPORT | DECEMBER 31, 2017 | 27 |
Table of Contents
(Unaudited)
Six Months Ended December 31, 2017 | ||||||||||||||||||||||||
(Amounts in thousands†) | 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 | ||||||||||||||||||
Investment Income: | ||||||||||||||||||||||||
Interest | $ | 7 | $ | 0 | $ | 0 | $ | 8 | $ | 0 | $ | 0 | ||||||||||||
Dividends, net of foreign taxes* | 28,633 | 0 | 0 | 6,069 | 7,972 | 1,145 | ||||||||||||||||||
Dividends from Investments in Affiliates | 0 | 12,899 | 2,871 | 0 | 0 | 0 | ||||||||||||||||||
Total Income | 28,640 | 12,899 | 2,871 | 6,077 | 7,972 | 1,145 | ||||||||||||||||||
Expenses: | ||||||||||||||||||||||||
Investment advisory fees | 4,475 | 837 | 171 | 757 | 787 | 193 | ||||||||||||||||||
Supervisory and administrative fees | 4,038 | 631 | 150 | 760 | 801 | 147 | ||||||||||||||||||
Distribution fees - Class C | 7 | 6 | 5 | 3 | 21 | 2 | ||||||||||||||||||
Servicing fees - Class A | 4 | 1 | 1 | 1 | 9 | 11 | ||||||||||||||||||
Servicing fees - Class C | 2 | 2 | 2 | 1 | 7 | 1 | ||||||||||||||||||
Trustee fees | 46 | 12 | 2 | 13 | 18 | 3 | ||||||||||||||||||
Interest expense | 5 | 1 | 0 | 3 | 0 | 0 | ||||||||||||||||||
Miscellaneous expense | 54 | 20 | 12 | 22 | 25 | 12 | ||||||||||||||||||
Total Expenses | 8,631 | 1,510 | 343 | 1,560 | 1,668 | 369 | ||||||||||||||||||
Waiver and/or Reimbursement by PIMCO | (1,846 | ) | (1,469 | ) | (332 | ) | (275 | ) | (342 | ) | (68 | ) | ||||||||||||
Net Expenses | 6,785 | 41 | 11 | 1,285 | 1,326 | 301 | ||||||||||||||||||
Net Investment Income (Loss) | 21,855 | 12,858 | 2,860 | 4,792 | 6,646 | 844 | ||||||||||||||||||
Net Realized Gain (Loss): | ||||||||||||||||||||||||
Investments in securities | 66,360 | 0 | 0 | 9,155 | 12,487 | 3,158 | ||||||||||||||||||
Investments in Affiliates | 0 | 5,349 | 331 | 0 | 0 | 0 | ||||||||||||||||||
Net capital gain distributions received from Affiliate investments | 0 | 6,166 | 240 | 0 | 0 | 0 | ||||||||||||||||||
Over the counter financial derivative instruments | 26 | 0 | 0 | (12 | ) | 0 | 0 | |||||||||||||||||
Foreign currency | (600 | ) | 0 | 0 | 58 | 0 | 0 | |||||||||||||||||
Net Realized Gain (Loss) | 65,786 | 11,515 | 571 | 9,201 | 12,487 | 3,158 | ||||||||||||||||||
Net Change in Unrealized Appreciation (Depreciation): | ||||||||||||||||||||||||
Investments in securities | 164,742 | 0 | 0 | 39,746 | 52,095 | 6,144 | ||||||||||||||||||
Investments in Affiliates | 0 | 23,503 | 6,309 | 0 | 0 | 0 | ||||||||||||||||||
Over the counter financial derivative instruments | 2 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||
Foreign currency assets and liabilities | 98 | 0 | 0 | 5 | 0 | 0 | ||||||||||||||||||
Net Change in Unrealized Appreciation (Depreciation) | 164,842 | 23,503 | 6,309 | 39,751 | 52,095 | 6,144 | ||||||||||||||||||
Net Increase (Decrease) in Net Assets Resulting from Operations | $ | 252,483 | $ | 47,876 | $ | 9,740 | $ | 53,744 | $ | 71,228 | $ | 10,146 | ||||||||||||
* Foreign tax withholdings - Dividends | $ | 4,409 | $ | 0 | $ | 0 | $ | 403 | $ | 0 | $ | 0 |
† | A zero balance may reflect actual amounts rounding to less than one thousand. |
28 | 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 | ||||||||||||||||||||||
(Amounts in thousands†) | Six Months Ended December 31, 2017 (Unaudited) | Year Ended June 30, 2017 | Six Months Ended December 31, 2017 (Unaudited) | Year Ended June 30, 2017 | Six Months Ended December 31, 2017 (Unaudited) | Year Ended June 30, 2017 | ||||||||||||||||||
Increase (Decrease) in Net Assets from: | ||||||||||||||||||||||||
Operations: | ||||||||||||||||||||||||
Net investment income (loss) | $ | 21,855 | $ | 29,711 | $ | 12,858 | $ | 9,024 | $ | 2,860 | $ | 1,572 | ||||||||||||
Net realized gain (loss) | 65,786 | 96,595 | 11,515 | 6,425 | 571 | (306 | ) | |||||||||||||||||
Net change in unrealized appreciation (depreciation) | 164,842 | 239,626 | 23,503 | 51,717 | 6,309 | 13,744 | ||||||||||||||||||
Net Increase (Decrease) in Net Assets Resulting from Operations | 252,483 | 365,932 | 47,876 | 67,166 | 9,740 | 15,010 | ||||||||||||||||||
Distributions to Shareholders: | ||||||||||||||||||||||||
From net investment income | ||||||||||||||||||||||||
Institutional Class | (31,636 | ) | (40,860 | ) | (16,750 | ) | (9,363 | ) | (3,392 | ) | (1,557 | ) | ||||||||||||
Class P | (260 | ) | (92 | ) | (148 | ) | (4 | ) | (19 | ) | (1 | ) | ||||||||||||
Class A | (75 | ) | (40 | ) | (41 | ) | (12 | ) | (35 | ) | (4 | ) | ||||||||||||
Class C | (29 | ) | (9 | ) | (61 | ) | (21 | ) | (54 | ) | (10 | ) | ||||||||||||
From net realized capital gains | ||||||||||||||||||||||||
Institutional Class | (112,594 | ) | 0 | (9,742 | ) | (3,530 | ) | 0 | 0 | |||||||||||||||
Class P | (999 | ) | 0 | (87 | ) | (1 | ) | 0 | 0 | |||||||||||||||
Class A | (286 | ) | 0 | (26 | ) | (5 | ) | 0 | 0 | |||||||||||||||
Class C | (137 | ) | 0 | (40 | ) | (10 | ) | 0 | 0 | |||||||||||||||
Tax basis return of capital | ||||||||||||||||||||||||
Institutional Class | 0 | 0 | 0 | 0 | 0 | (126 | ) | |||||||||||||||||
Class P | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||
Class A | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||
Class C | 0 | 0 | 0 | 0 | 0 | (2 | ) | |||||||||||||||||
Total Distributions(a) | (146,016 | ) | (41,001 | ) | (26,895 | ) | (12,946 | ) | (3,500 | ) | (1,700 | ) | ||||||||||||
Fund Share Transactions: | ||||||||||||||||||||||||
Net increase (decrease) resulting from Fund share transactions** | 341,293 | (177,538 | ) | (8,782 | ) | 77,245 | 1,590 | 4,194 | ||||||||||||||||
Total Increase (Decrease) in Net Assets | 447,760 | 147,393 | 12,199 | 131,465 | 7,830 | 17,504 | ||||||||||||||||||
Net Assets: | ||||||||||||||||||||||||
Beginning of period | 1,528,665 | 1,381,272 | 414,749 | 283,284 | 80,685 | 63,181 | ||||||||||||||||||
End of period* | $ | 1,976,425 | $ | 1,528,665 | $ | 426,948 | $ | 414,749 | $ | 88,515 | $ | 80,685 | ||||||||||||
* Including undistributed (overdistributed) net investment income of: | $ | (9,999 | ) | $ | 146 | $ | (4,148 | ) | $ | (6 | ) | $ | (643 | ) | $ | (3 | ) |
† | A zero balance may reflect actual amounts rounding to less than one thousand. |
** | See Note 12, Shares of Beneficial Interest, in the Notes to Financial Statements. |
(a) | The tax characterization of distributions is determined in accordance with Federal income tax regulations. The actual tax characterization of distributions paid is determined at the end of the fiscal year. See Note 2, Distributions to Shareholders, in the Notes to Financial Statements for more information. |
SEMIANNUAL REPORT | DECEMBER 31, 2017 | 29 |
Table of Contents
Statements of Changes in Net Assets (Cont.)
PIMCO RAE Fundamental International Fund | PIMCO RAE Fundamental US Fund | PIMCO RAE Fundamental US Small Fund | ||||||||||||||||||||||
(Amounts in thousands†) | Six Months Ended December 31, 2017 (Unaudited) | Year Ended June 30, 2017 | Six Months Ended December 31, 2017 (Unaudited) | Year Ended June 30, 2017 | Six Months Ended December 31, 2017 (Unaudited) | Year Ended June 30, 2017 | ||||||||||||||||||
Increase (Decrease) in Net Assets from: | ||||||||||||||||||||||||
Operations: | ||||||||||||||||||||||||
Net investment income (loss) | $ | 4,792 | $ | 9,950 | $ | 6,646 | $ | 12,040 | $ | 844 | $ | 1,101 | ||||||||||||
Net realized gain (loss) | 9,201 | 4,152 | 12,487 | 26,145 | 3,158 | 8,359 | ||||||||||||||||||
Net change in unrealized appreciation (depreciation) | 39,751 | 56,171 | 52,095 | 33,222 | 6,144 | 8,156 | ||||||||||||||||||
Net Increase (Decrease) in Net Assets Resulting from Operations | 53,744 | 70,273 | 71,228 | 71,407 | 10,146 | 17,616 | ||||||||||||||||||
Distributions to Shareholders: | ||||||||||||||||||||||||
From net investment income | ||||||||||||||||||||||||
Institutional Class | (12,799 | ) | (7,439 | ) | (12,630 | ) | (12,165 | ) | (1,435 | ) | (1,184 | ) | ||||||||||||
Class P | (122 | ) | (152 | ) | (156 | ) | (138 | ) | (60 | ) | (22 | ) | ||||||||||||
Class A | (61 | ) | (1 | ) | (143 | ) | (103 | ) | (99 | ) | (39 | ) | ||||||||||||
Class C | (20 | ) | (9 | ) | (71 | ) | (94 | ) | (6 | ) | (4 | ) | ||||||||||||
From net realized capital gains | ||||||||||||||||||||||||
Institutional Class | (302 | ) | 0 | (24,086 | ) | (16,709 | ) | (3,201 | ) | 0 | ||||||||||||||
Class P | (3 | ) | 0 | (312 | ) | (167 | ) | (137 | ) | 0 | ||||||||||||||
Class A | (1 | ) | 0 | (304 | ) | (137 | ) | (272 | ) | 0 | ||||||||||||||
Class C | (1 | ) | 0 | (196 | ) | (133 | ) | (23 | ) | 0 | ||||||||||||||
Total Distributions(a) | (13,309 | ) | (7,601 | ) | (37,898 | ) | (29,646 | ) | (5,233 | ) | (1,249 | ) | ||||||||||||
Fund Share Transactions: | ||||||||||||||||||||||||
Net increase (decrease) resulting from Fund share transactions** | 623 | 170,346 | 6,161 | 79,713 | 4,111 | 5,555 | ||||||||||||||||||
Total Increase (Decrease) in Net Assets | 41,058 | 233,018 | 39,491 | 121,474 | 9,024 | 21,922 | ||||||||||||||||||
Net Assets: | ||||||||||||||||||||||||
Beginning of period | 481,587 | 248,569 | 641,431 | 519,957 | 106,550 | 84,628 | ||||||||||||||||||
End of period* | $ | 522,645 | $ | 481,587 | $ | 680,922 | $ | 641,431 | $ | 115,574 | $ | 106,550 | ||||||||||||
* Including undistributed (overdistributed) net investment income of: | $ | (1,790 | ) | $ | 6,420 | $ | (1,139 | ) | $ | 5,215 | $ | (464 | ) | $ | 292 |
† | A zero balance may reflect actual amounts rounding to less than one thousand. |
** | See Note 12, Shares of Beneficial Interest, in the Notes to Financial Statements. |
(a) | The tax characterization of distributions is determined in accordance with Federal income tax regulations. The actual tax characterization of distributions paid is determined at the end of the fiscal year. See Note 2, Distributions to Shareholders, in the Notes to Financial Statements for more information. |
30 | PIMCO EQUITY SERIES | See Accompanying Notes |
Table of Contents
Schedule of Investments PIMCO RAE Fundamental Emerging Markets Fund
December 31, 2017 (Unaudited)
SHARES | MARKET VALUE (000S) | |||||||||||
INVESTMENTS IN SECURITIES 99.6% | ||||||||||||
COMMON STOCKS 97.3% | ||||||||||||
AUSTRALIA 0.0% | ||||||||||||
MATERIALS 0.0% | ||||||||||||
MMG Ltd. (a) | 372,000 | $ | 184 | |||||||||
|
| |||||||||||
Total Australia | 184 | |||||||||||
|
| |||||||||||
BRAZIL 8.7% | ||||||||||||
CONSUMER DISCRETIONARY 0.5% | ||||||||||||
Cyrela Brazil Realty S.A. Empreendimentos e Participacoes | 136,000 | 541 | ||||||||||
Grendene S.A. | 89,500 | 768 | ||||||||||
Guararapes Confeccoes S.A. | 4,600 | 208 | ||||||||||
MRV Engenharia e Participacoes S.A. | 264,100 | 1,196 | ||||||||||
Via Varejo S.A. | 830,100 | 6,129 | ||||||||||
|
| |||||||||||
8,842 | ||||||||||||
|
| |||||||||||
CONSUMER STAPLES 0.7% | ||||||||||||
Ambev S.A. ADR | 155,757 | 1,006 | ||||||||||
BRF S.A. (a) | 182,000 | 2,008 | ||||||||||
JBS S.A. | 1,527,700 | 4,518 | ||||||||||
Marfrig Global Foods S.A. (a) | 1,444,500 | 3,188 | ||||||||||
Natura Cosmeticos S.A. | 320,700 | 3,196 | ||||||||||
|
| |||||||||||
13,916 | ||||||||||||
|
| |||||||||||
ENERGY 1.1% | ||||||||||||
Cosan S.A. Industria e Comercio | 22,100 | 277 | ||||||||||
Petroleo Brasileiro S.A. SP - ADR (a) | 2,076,194 | 21,364 | ||||||||||
|
| |||||||||||
21,641 | ||||||||||||
|
| |||||||||||
FINANCIALS 2.7% | ||||||||||||
Banco Bradesco S.A. ADR | 1,341,895 | 13,741 | ||||||||||
Banco BTG Pactual S.A. | 143,386 | 821 | ||||||||||
Banco do Brasil S.A. | 2,053,500 | 19,688 | ||||||||||
Itau Unibanco Holding S.A. SP - ADR ‘H’ | 1,340,753 | 17,430 | ||||||||||
Porto Seguro S.A. | 84,100 | 921 | ||||||||||
PPLA Participations Ltd. (a) | 10,876 | 4 | ||||||||||
Sul America S.A. | 293,346 | 1,650 | ||||||||||
|
| |||||||||||
54,255 | ||||||||||||
|
| |||||||||||
INDUSTRIALS 0.0% | ||||||||||||
Embraer S.A. SP - ADR | 32,298 | 773 | ||||||||||
|
| |||||||||||
MATERIALS 2.3% | ||||||||||||
Cia Siderurgica Nacional S.A. SP - ADR (a) | 1,226,525 | 3,005 | ||||||||||
Duratex S.A. | 182,300 | 506 | ||||||||||
Fibria Celulose S.A. SP - ADR | 223,733 | 3,289 | ||||||||||
Gerdau S.A. SP - ADR | 989,107 | 3,679 | ||||||||||
Vale S.A. | 2,816,440 | 34,120 | ||||||||||
|
| |||||||||||
44,599 | ||||||||||||
|
| |||||||||||
REAL ESTATE 0.0% | ||||||||||||
BR Malls Participacoes S.A. | 105,658 | 406 | ||||||||||
|
| |||||||||||
TELECOMMUNICATION SERVICES 0.3% | ||||||||||||
Telefonica Brasil S.A. ADR | 99,056 | 1,469 |
SHARES | MARKET VALUE (000S) | |||||||||||
TIM Participacoes S.A. ADR | 194,273 | $ | 3,751 | |||||||||
|
| |||||||||||
5,220 | ||||||||||||
|
| �� | ||||||||||
UTILITIES 1.1% | ||||||||||||
AES Tiete Energia S.A. | 439,400 | 1,689 | ||||||||||
Cia de Saneamento Basico do Estado de Sao Paulo ADR | 78,172 | 817 | ||||||||||
Cia de Saneamento de Minas Gerais-COPASA | 116,200 | 1,522 | ||||||||||
Cia Energetica de Minas Gerais SP - ADR | 3,863,312 | 7,958 | ||||||||||
EDP - Energias do Brasil S.A. | 154,300 | 652 | ||||||||||
Eletropaulo Metropolitana Eletricidade de Sao Paulo S.A. | 920,722 | 4,538 | ||||||||||
Energisa S.A. | 20,600 | 170 | ||||||||||
Engie Brasil Energia S.A. | 63,000 | 675 | ||||||||||
Light S.A. (a) | 441,700 | 2,222 | ||||||||||
Transmissora Alianca de Energia Eletrica S.A. | 163,000 | 1,049 | ||||||||||
|
| |||||||||||
21,292 | ||||||||||||
|
| |||||||||||
Total Brazil | 170,944 | |||||||||||
|
| |||||||||||
CHILE 1.0% | ||||||||||||
CONSUMER DISCRETIONARY 0.1% | ||||||||||||
Ripley Corp. S.A. | 809,914 | 873 | ||||||||||
|
| |||||||||||
CONSUMER STAPLES 0.2% | ||||||||||||
Cencosud S.A. | 944,192 | 2,777 | ||||||||||
Cia Cervecerias Unidas S.A. | 6,271 | 185 | ||||||||||
|
| |||||||||||
2,962 | ||||||||||||
|
| |||||||||||
ENERGY 0.1% | ||||||||||||
Empresas COPEC S.A. | 86,301 | 1,367 | ||||||||||
|
| |||||||||||
FINANCIALS 0.1% | ||||||||||||
Banco de Chile | 1,927,697 | 310 | ||||||||||
Banco Santander Chile ADR | 45,042 | 1,408 | ||||||||||
Sociedad Matriz del Banco de Chile S.A. ‘B’ | 2,068,377 | 1,042 | ||||||||||
|
| |||||||||||
2,760 | ||||||||||||
|
| |||||||||||
INDUSTRIALS 0.0% | ||||||||||||
Latam Airlines Group S.A. | 58,996 | 820 | ||||||||||
|
| |||||||||||
MATERIALS 0.4% | ||||||||||||
Antofagasta PLC | 150,752 | 2,034 | ||||||||||
CAP S.A. | 288,358 | 3,699 | ||||||||||
Empresas CMPC S.A. | 555,234 | 1,895 | ||||||||||
Sociedad Quimica y Minera de Chile S.A. SP - ADR | 12,262 | 728 | ||||||||||
|
| |||||||||||
8,356 | ||||||||||||
|
| |||||||||||
TELECOMMUNICATION SERVICES 0.0% | ||||||||||||
Empresa Nacional de Telecomunicaciones S.A. | 55,061 | 619 | ||||||||||
|
| |||||||||||
UTILITIES 0.1% | ||||||||||||
Enel Americas S.A. ADR | 87,496 | 977 | ||||||||||
Enel Chile S.A. | 9,133,925 | 1,084 |
SHARES | MARKET VALUE (000S) | |||||||||||
Enel Generacion Chile S.A. ADR | 8,362 | $ | 225 | |||||||||
Inversiones Aguas Metropolitanas S.A. | 237,683 | 451 | ||||||||||
|
| |||||||||||
2,737 | ||||||||||||
|
| |||||||||||
Total Chile | 20,494 | |||||||||||
|
| |||||||||||
CHINA 22.0% | ||||||||||||
CONSUMER DISCRETIONARY 0.2% | ||||||||||||
Dongfeng Motor Group Co. Ltd. ‘H’ | 638,000 | 770 | ||||||||||
GOME Retail Holdings Ltd. | 11,110,000 | 1,335 | ||||||||||
Great Wall Motor Co. Ltd. ‘H’ | 155,000 | 177 | ||||||||||
Zhongsheng Group Holdings Ltd. | 451,000 | 1,025 | ||||||||||
|
| |||||||||||
3,307 | ||||||||||||
|
| |||||||||||
CONSUMER STAPLES 0.2% | ||||||||||||
Tingyi Cayman Islands Holding Corp. | 1,900,000 | 3,696 | ||||||||||
Want Want China Holdings Ltd. | 1,009,000 | 845 | ||||||||||
|
| |||||||||||
4,541 | ||||||||||||
|
| |||||||||||
ENERGY 2.8% | ||||||||||||
China Coal Energy Co. Ltd. ‘H’ | 1,148,000 | 517 | ||||||||||
China Oilfield Services Ltd. ‘H’ | 320,000 | 311 | ||||||||||
China Petroleum & Chemical Corp. ‘H’ | 20,676,400 | 15,144 | ||||||||||
China Shenhua Energy Co. Ltd. ‘H’ | 3,803,500 | 9,826 | ||||||||||
CNOOC Ltd. | 14,288,000 | 20,512 | ||||||||||
PetroChina Co. Ltd. ‘H’ | 11,876,000 | 8,258 | ||||||||||
Yanzhou Coal Mining Co. Ltd. ‘H’ | 1,312,000 | 1,530 | ||||||||||
|
| |||||||||||
56,098 | ||||||||||||
|
| |||||||||||
FINANCIALS 11.8% | ||||||||||||
Agricultural Bank of China Ltd. ‘H’ | 36,320,000 | 16,879 | ||||||||||
Bank of China Ltd. ‘H’ | 76,794,000 | 37,609 | ||||||||||
Bank of Chongqing Co. Ltd. ‘H’ | 845,000 | 672 | ||||||||||
Bank of Communications Co. Ltd. ‘H’ | 10,981,000 | 8,128 | ||||||||||
China Cinda Asset Management Co. Ltd. ‘H’ | 3,956,000 | 1,445 | ||||||||||
China CITIC Bank Corp. Ltd. ‘H’ | 8,103,000 | 5,072 | ||||||||||
China Construction Bank Corp. ‘H’ | 83,227,000 | 76,615 | ||||||||||
China Everbright Bank Co. Ltd. ‘H’ | 3,036,000 | 1,415 | ||||||||||
China Huarong Asset Management Co. Ltd. ‘H’ | 7,377,000 | 3,477 | ||||||||||
China Life Insurance Co. Ltd. ‘H’ | 1,410,000 | 4,397 | ||||||||||
China Merchants Bank Co. Ltd. ‘H’ | 1,544,000 | 6,113 | ||||||||||
China Minsheng Banking Corp. Ltd. ‘H’ | 5,485,100 | 5,482 | ||||||||||
Chongqing Rural Commercial Bank Co. Ltd. ‘H’ | 4,988,000 | 3,513 | ||||||||||
CSC Financial Co. Ltd. ‘H’ | 582,500 | 516 | ||||||||||
Industrial & Commercial Bank of China Ltd. ‘H’ | 59,245,000 | 47,493 | ||||||||||
People’s Insurance Co. Group of China Ltd. ‘H’ | 8,905,000 | 4,373 | ||||||||||
PICC Property & Casualty Co. Ltd. ‘H’ | 94,000 | 180 | ||||||||||
Ping An Insurance Group Co. of China Ltd. ‘H’ | 471,000 | 4,885 |
See Accompanying Notes | SEMIANNUAL REPORT | DECEMBER 31, 2017 | 31 |
Table of Contents
Schedule of Investments PIMCO RAE Fundamental Emerging Markets Fund (Cont.)
SHARES | MARKET VALUE (000S) | |||||||||||
Postal Savings Bank of China Co. Ltd. ‘H’ | 8,329,000 | $ | 4,319 | |||||||||
|
| |||||||||||
232,583 | ||||||||||||
|
| |||||||||||
HEALTH CARE 0.2% | ||||||||||||
China Resources Pharmaceutical Group Ltd. | 2,521,500 | 3,262 | ||||||||||
Sihuan Pharmaceutical Holdings Group Ltd. | 1,163,000 | 418 | ||||||||||
|
| |||||||||||
3,680 | ||||||||||||
|
| |||||||||||
INDUSTRIALS 1.0% | ||||||||||||
Air China Ltd. ‘H’ | 1,208,000 | 1,463 | ||||||||||
China Communications Construction Co. Ltd. ‘H’ | 697,000 | 791 | ||||||||||
China Eastern Airlines Corp. Ltd. ‘H’ | 602,000 | 437 | ||||||||||
China Energy Engineering Corp. Ltd. ‘H’ | 1,058,000 | 183 | ||||||||||
China Lesso Group Holdings Ltd. | 523,000 | 338 | ||||||||||
China Railway Construction Corp. Ltd. ‘H’ | 453,000 | 525 | ||||||||||
China Railway Group Ltd. ‘H’ | 229,000 | 169 | ||||||||||
China Southern Airlines Co. Ltd. ‘H’ | 2,444,000 | 2,524 | ||||||||||
Dongfang Electric Corp. Ltd.‘H’ | 170,800 | 140 | ||||||||||
Fosun International Ltd. | 190,000 | 420 | ||||||||||
Harbin Electric Co. Ltd. ‘H’ | 2,586,000 | 1,082 | ||||||||||
Jiangsu Expressway Co. Ltd. ‘H’ | 132,000 | 201 | ||||||||||
Qinhuangdao Port Co. Ltd. ‘H’ (a) | 953,000 | 321 | ||||||||||
Shanghai Electric Group Co. Ltd. ‘H’ | 1,322,000 | 544 | ||||||||||
Sinopec Engineering Group Co. Ltd. ‘H’ | 1,619,000 | 1,534 | ||||||||||
Sinotrans Ltd. ‘H’ | 1,977,000 | 967 | ||||||||||
Sinotruk Hong Kong Ltd. | 1,798,000 | 2,025 | ||||||||||
Weichai Power Co. Ltd. ‘H’ | 1,897,000 | 2,072 | ||||||||||
Yangzijiang Shipbuilding Holdings Ltd. | 2,013,900 | 2,208 | ||||||||||
Zhejiang Expressway Co. Ltd. ‘H’ | 1,286,000 | 1,414 | ||||||||||
Zoomlion Heavy Industry Science and Technology Co Ltd ‘H’ | 3,369,800 | 1,442 | ||||||||||
|
| |||||||||||
20,800 | ||||||||||||
|
| |||||||||||
INFORMATION TECHNOLOGY 0.7% | ||||||||||||
AVIC International Holdings Ltd. | 240,000 | 247 | ||||||||||
Changyou.com Ltd. ADR (a) | 43,649 | 1,590 | ||||||||||
Fang Holdings Ltd. ADR (a) | 75,070 | 419 | ||||||||||
FIH Mobile Ltd. | 603,000 | 184 | ||||||||||
Legend Holdings Corp. ‘H’ | 804,900 | 3,692 | ||||||||||
Lenovo Group Ltd. | 8,688,000 | 4,892 | ||||||||||
Semiconductor Manufacturing International Corp. (a) | 445,000 | 767 | ||||||||||
Sohu.com, Inc. (a) | 39,335 | 1,705 | ||||||||||
ZTE Corp. ‘H’ | 66,200 | 247 | ||||||||||
|
| |||||||||||
13,743 | ||||||||||||
|
| |||||||||||
MATERIALS 1.3% | ||||||||||||
Anhui Conch Cement Co. Ltd. ‘H’ | 372,000 | 1,746 | ||||||||||
China BlueChemical Ltd. ‘H’ | 5,404,000 | 1,704 |
SHARES | MARKET VALUE (000S) | |||||||||||
China National Building Material Co. Ltd. ‘H’ | 18,626,000 | $ | 16,600 | |||||||||
China National Materials Co. Ltd. ‘H’ | 3,804,000 | 2,827 | ||||||||||
China Zhongwang Holdings Ltd. | 2,570,000 | 1,406 | ||||||||||
Jiangxi Copper Co. Ltd. ‘H’ | 764,000 | 1,209 | ||||||||||
Maanshan Iron & Steel Co. Ltd. ‘H’ (a) | 850,000 | 399 | ||||||||||
|
| |||||||||||
25,891 | ||||||||||||
|
| |||||||||||
REAL ESTATE 2.9% | ||||||||||||
Agile Group Holdings Ltd. | 4,824,000 | 7,298 | ||||||||||
Beijing Capital Land Ltd. ‘H’ | 970,000 | 504 | ||||||||||
Central China Real Estate Ltd. (a) | 1,968,000 | 922 | ||||||||||
China Evergrande Group | 2,469,000 | 8,477 | ||||||||||
CIFI Holdings Group Co. Ltd. | 638,000 | 383 | ||||||||||
Country Garden Holdings Co. Ltd. | 2,225,000 | 4,227 | ||||||||||
Fantasia Holdings Group Co. Ltd. | 3,220,500 | 440 | ||||||||||
Future Land Development Holdings Ltd. | 4,069,138 | 2,552 | ||||||||||
Greentown China Holdings Ltd. | 2,200,500 | 2,826 | ||||||||||
Guangzhou R&F Properties Co. Ltd. ‘H’ | 2,639,400 | 5,934 | ||||||||||
Kaisa Group Holdings Ltd. (a) | 5,267,000 | 2,960 | ||||||||||
KWG Property Holding Ltd. | 3,034,500 | 3,537 | ||||||||||
Logan Property Holdings Co. Ltd. | 992,000 | 1,026 | ||||||||||
Longfor Properties Co. Ltd. | 537,500 | 1,347 | ||||||||||
Powerlong Real Estate Holdings Ltd. | 3,319,000 | 1,605 | ||||||||||
Red Star Macalline Group Corp. Ltd. ‘H’ | 512,000 | 830 | ||||||||||
Shui On Land Ltd. | 7,810,000 | 2,157 | ||||||||||
Sino-Ocean Group Holding Ltd. | 5,077,500 | 3,496 | ||||||||||
SOHO China Ltd. | 6,448,000 | 3,765 | ||||||||||
Sunac China Holdings Ltd. | 264,000 | 1,088 | ||||||||||
Yuzhou Properties Co. Ltd. | 2,943,000 | 1,569 | ||||||||||
|
| |||||||||||
56,943 | ||||||||||||
|
| |||||||||||
TELECOMMUNICATION SERVICES 0.4% | ||||||||||||
China Communications Services Corp. Ltd. ‘H’ | 3,634,000 | 2,430 | ||||||||||
China Telecom Corp. Ltd. ‘H’ | 13,052,000 | 6,191 | ||||||||||
|
| |||||||||||
8,621 | ||||||||||||
|
| |||||||||||
UTILITIES 0.5% | ||||||||||||
Beijing Jingneng Clean Energy Co. Ltd. ‘H’ | 2,012,000 | 540 | ||||||||||
China Longyuan Power Group Corp. Ltd. ‘H’ | 931,000 | 661 | ||||||||||
Datang International Power Generation Co. Ltd. ‘H’ | 7,170,000 | 2,117 | ||||||||||
Huadian Fuxin Energy Corp. Ltd. ‘H’ | 6,028,000 | 1,472 | ||||||||||
Huadian Power International Corp. Ltd. ‘H’ | 3,598,000 | 1,306 | ||||||||||
Huaneng Power International, Inc. ‘H’ | 5,346,000 | 3,351 | ||||||||||
|
| |||||||||||
9,447 | ||||||||||||
|
| |||||||||||
Total China | 435,654 | |||||||||||
|
| |||||||||||
SHARES | MARKET VALUE (000S) | |||||||||||
GREECE 1.3% | ||||||||||||
CONSUMER DISCRETIONARY 0.1% | ||||||||||||
FF Group (a) | 44,368 | $ | 1,011 | |||||||||
OPAP S.A. | 188,747 | 2,378 | ||||||||||
|
| |||||||||||
3,389 | ||||||||||||
|
| |||||||||||
ENERGY 0.0% | ||||||||||||
Hellenic Petroleum S.A. | 28,818 | 263 | ||||||||||
|
| |||||||||||
FINANCIALS 1.0% | ||||||||||||
Alpha Bank AE (a) | 3,155,770 | 6,766 | ||||||||||
Eurobank Ergasias S.A. (a) | 706,769 | 721 | ||||||||||
National Bank of Greece S.A. (a) | 21,362,346 | 8,167 | ||||||||||
Piraeus Bank S.A. (a) | 1,037,662 | 3,822 | ||||||||||
|
| |||||||||||
19,476 | ||||||||||||
|
| |||||||||||
TELECOMMUNICATION SERVICES 0.1% | ||||||||||||
Hellenic Telecommunications Organization S.A. | 151,013 | 2,084 | ||||||||||
|
| |||||||||||
UTILITIES 0.1% | ||||||||||||
Holding Co. Admie IPTO S.A. (a) | 229,269 | 531 | ||||||||||
Public Power Corp. S.A. | 220,031 | 514 | ||||||||||
|
| |||||||||||
1,045 | ||||||||||||
|
| |||||||||||
Total Greece | 26,257 | |||||||||||
|
| |||||||||||
HONG KONG 4.7% | ||||||||||||
CONSUMER DISCRETIONARY 0.1% | ||||||||||||
China Travel International Investment Hong Kong Ltd. | 2,452,000 | 911 | ||||||||||
Dah Chong Hong Holdings Ltd. | 1,041,000 | 483 | ||||||||||
|
| |||||||||||
1,394 | ||||||||||||
|
| |||||||||||
CONSUMER STAPLES 0.6% | ||||||||||||
China Agri-Industries Holdings Ltd. | 2,944,000 | 1,287 | ||||||||||
China Resources Beer Holdings Co. Ltd. | 2,998,000 | 10,740 | ||||||||||
|
| |||||||||||
12,027 | ||||||||||||
|
| |||||||||||
ENERGY 0.2% | ||||||||||||
Kunlun Energy Co. Ltd. | 3,632,000 | 3,775 | ||||||||||
|
| |||||||||||
FINANCIALS 0.7% | ||||||||||||
BOC Hong Kong Holdings Ltd. | 1,163,000 | 5,878 | ||||||||||
China Taiping Insurance Holdings Co. Ltd. | 2,038,600 | 7,609 | ||||||||||
Far East Horizon Ltd. | 359,000 | 306 | ||||||||||
|
| |||||||||||
13,793 | ||||||||||||
|
| |||||||||||
INDUSTRIALS 0.6% | ||||||||||||
Beijing Enterprises Holdings Ltd. | 32,000 | 190 | ||||||||||
China Merchants Port Holdings Co. Ltd. | 340,000 | 888 | ||||||||||
CITIC Ltd. | 3,195,000 | 4,610 | ||||||||||
COSCO SHIPPING Ports Ltd. | 2,212,000 | 2,302 | ||||||||||
Shanghai Industrial Holdings Ltd. | 1,000,000 | 2,860 | ||||||||||
Shenzhen International Holdings Ltd. | 101,000 | 192 |
32 | PIMCO EQUITY SERIES | See Accompanying Notes |
Table of Contents
December 31, 2017 (Unaudited)
SHARES | MARKET VALUE (000S) | |||||||||||
Tianjin Port Development Holdings Ltd. | 2,540,000 | $ | 373 | |||||||||
|
| |||||||||||
11,415 | ||||||||||||
|
| |||||||||||
MATERIALS 0.2% | ||||||||||||
China Resources Cement Holdings Ltd. | 3,738,000 | 2,453 | ||||||||||
Shougang Fushan Resources Group Ltd. | 7,462,000 | 1,598 | ||||||||||
|
| |||||||||||
4,051 | ||||||||||||
|
| |||||||||||
REAL ESTATE 0.8% | ||||||||||||
China Jinmao Holdings Group Ltd. | 6,142,000 | 2,698 | ||||||||||
China Overseas Grand Oceans Group Ltd. | 2,609,000 | 1,424 | ||||||||||
China Overseas Land & Investment Ltd. | 106,000 | 340 | ||||||||||
China Resources Land Ltd. | 806,000 | 2,365 | ||||||||||
Poly Property Group Co. Ltd. | 7,348,000 | 3,817 | ||||||||||
Shenzhen Investment Ltd. | 3,698,000 | 1,531 | ||||||||||
Yuexiu Property Co. Ltd. | 18,522,000 | 3,451 | ||||||||||
|
| |||||||||||
15,626 | ||||||||||||
|
| |||||||||||
TELECOMMUNICATION SERVICES 1.1% | ||||||||||||
China Mobile Ltd. | 1,380,000 | 13,954 | ||||||||||
China Unicom Hong Kong Ltd. | 6,818,000 | 9,218 | ||||||||||
|
| |||||||||||
23,172 | ||||||||||||
|
| |||||||||||
UTILITIES 0.4% | ||||||||||||
China Power International Development Ltd. | 12,394,000 | 3,252 | ||||||||||
China Resources Power Holdings Co. Ltd. | 2,756,000 | 5,126 | ||||||||||
|
| |||||||||||
8,378 | ||||||||||||
|
| |||||||||||
Total Hong Kong | 93,631 | |||||||||||
|
| |||||||||||
INDIA 6.4% | ||||||||||||
CONSUMER DISCRETIONARY 0.2% | ||||||||||||
Amtek Auto Ltd. (a) | 577,586 | 271 | ||||||||||
Tata Motors Ltd. | 452,177 | 3,046 | ||||||||||
|
| |||||||||||
3,317 | ||||||||||||
|
| |||||||||||
ENERGY 0.7% | ||||||||||||
Bharat Petroleum Corp. Ltd. | 24,108 | 195 | ||||||||||
Coal India Ltd. | 603,876 | 2,486 | ||||||||||
Hindustan Petroleum Corp. Ltd. | 155,908 | 1,023 | ||||||||||
Indian Oil Corp. Ltd. | 138,031 | 840 | ||||||||||
Oil & Natural Gas Corp. Ltd. | 1,342,312 | 4,089 | ||||||||||
Oil India Ltd. | 203,624 | 1,177 | ||||||||||
Reliance Industries Ltd. | 321,540 | 4,630 | ||||||||||
|
| |||||||||||
14,440 | ||||||||||||
|
| |||||||||||
FINANCIALS 2.0% | ||||||||||||
Allahabad Bank | 1,720,447 | 1,976 | ||||||||||
Andhra Bank (a) | 2,464,958 | 2,250 | ||||||||||
Bank of Baroda | 507,562 | 1,283 | ||||||||||
Bank of India | 842,441 | 2,237 | ||||||||||
Canara Bank | 576,761 | 3,246 | ||||||||||
Corp. Bank | 114,602 | 70 | ||||||||||
ICICI Bank Ltd. | 725,330 | 3,558 | ||||||||||
IDBI Bank Ltd. (a) | 514,150 | 483 | ||||||||||
Indian Bank | 262,990 | 1,551 |
SHARES | MARKET VALUE (000S) | |||||||||||
Oriental Bank of Commerce (a) | 1,308,295 | $ | 2,471 | |||||||||
Power Finance Corp. Ltd. | 1,276,305 | 2,430 | ||||||||||
Punjab National Bank (a) | 1,043,537 | 2,797 | ||||||||||
Rural Electrification Corp. Ltd. | 1,676,737 | 4,095 | ||||||||||
State Bank of India | 1,425,442 | 6,907 | ||||||||||
Syndicate Bank | 990,920 | 1,240 | ||||||||||
UCO Bank (a) | 542,251 | 249 | ||||||||||
Union Bank of India | 1,325,786 | 2,990 | ||||||||||
|
| |||||||||||
39,833 | ||||||||||||
|
| |||||||||||
INDUSTRIALS 0.7% | ||||||||||||
Adani Enterprises Ltd. | 977,650 | 2,525 | ||||||||||
Bharat Heavy Electricals Ltd. | 1,112,276 | 1,610 | ||||||||||
GMR Infrastructure Ltd. (a) | 1,163,229 | 411 | ||||||||||
Jaiprakash Associates Ltd. (a) | 24,471,004 | 9,989 | ||||||||||
|
| |||||||||||
14,535 | ||||||||||||
|
| |||||||||||
MATERIALS 2.0% | ||||||||||||
Grasim Industries Ltd. | 34,569 | 630 | ||||||||||
Hindalco Industries Ltd. | 1,557,389 | 6,670 | ||||||||||
Jindal Steel & Power Ltd. (a) | 2,788,198 | 8,916 | ||||||||||
JSW Steel Ltd. | 269,526 | 1,139 | ||||||||||
National Aluminium Co. Ltd. | 805,510 | 1,084 | ||||||||||
NMDC Ltd. | 323,512 | 700 | ||||||||||
Steel Authority of India Ltd. | 1,835,772 | 2,646 | ||||||||||
Tata Chemicals Ltd. | 127,407 | 1,461 | ||||||||||
Tata Steel Ltd. | 937,231 | 10,712 | ||||||||||
Vedanta Ltd. | 548,983 | 2,834 | ||||||||||
Vedanta Resources PLC | 203,924 | 2,206 | ||||||||||
|
| |||||||||||
38,998 | ||||||||||||
|
| |||||||||||
REAL ESTATE 0.0% | ||||||||||||
DLF Ltd. | 104,717 | 425 | ||||||||||
|
| |||||||||||
TELECOMMUNICATION SERVICES 0.4% | ||||||||||||
Bharti Airtel Ltd. | 74,994 | 622 | ||||||||||
Idea Cellular Ltd. (a) | 125,689 | 214 | ||||||||||
Reliance Communications Ltd. (a) | 11,533,057 | 6,559 | ||||||||||
|
| |||||||||||
7,395 | ||||||||||||
|
| |||||||||||
UTILITIES 0.4% | ||||||||||||
Adani Power Ltd. (a) | 509,410 | 332 | ||||||||||
CESC Ltd. | 15,099 | 248 | ||||||||||
Jaiprakash Power Ventures Ltd. (a) | 3,337,994 | 494 | ||||||||||
JSW Energy Ltd. | 145,860 | 211 | ||||||||||
NHPC Ltd. | 2,391,330 | 1,226 | ||||||||||
NTPC Ltd. | 234,987 | 649 | ||||||||||
Reliance Infrastructure Ltd. | 150,872 | 1,307 | ||||||||||
Reliance Power Ltd. (a) | 308,260 | 243 | ||||||||||
Tata Power Co. Ltd. | 1,863,958 | 2,725 | ||||||||||
|
| |||||||||||
7,435 | ||||||||||||
|
| |||||||||||
Total India | 126,378 | |||||||||||
|
| |||||||||||
INDONESIA 1.1% | ||||||||||||
CONSUMER DISCRETIONARY 0.1% | ||||||||||||
Astra International Tbk PT | 1,699,900 | 1,038 | ||||||||||
|
| |||||||||||
SHARES | MARKET VALUE (000S) | |||||||||||
CONSUMER STAPLES 0.0% | ||||||||||||
Indofood Sukses Makmur Tbk PT | 1,493,800 | $ | 839 | |||||||||
|
| |||||||||||
ENERGY 0.4% | ||||||||||||
Adaro Energy Tbk PT | 14,013,000 | 1,916 | ||||||||||
Indo Tambangraya Megah Tbk PT | 1,424,500 | 2,169 | ||||||||||
Tambang Batubara Bukit Asam Persero Tbk PT | 5,984,590 | 1,085 | ||||||||||
United Tractors Tbk PT | 1,116,000 | 2,912 | ||||||||||
|
| |||||||||||
8,082 | ||||||||||||
|
| |||||||||||
FINANCIALS 0.3% | ||||||||||||
Bank CIMB Niaga Tbk PT (a) | 1,542,000 | 153 | ||||||||||
Bank Danamon Indonesia Tbk PT | 1,293,600 | 663 | ||||||||||
Bank Mandiri Persero Tbk PT | 3,540,000 | 2,085 | ||||||||||
Bank Negara Indonesia Persero Tbk PT | 2,575,900 | 1,880 | ||||||||||
Bank Rakyat Indonesia Persero Tbk PT | 6,819,300 | 1,829 | ||||||||||
|
| |||||||||||
6,610 | ||||||||||||
|
| |||||||||||
INDUSTRIALS 0.0% | ||||||||||||
Berlian Laju Tanker Tbk PT (a) | 707,200 | 0 | ||||||||||
|
| |||||||||||
MATERIALS 0.1% | ||||||||||||
Indah Kiat Pulp & Paper Corp. Tbk PT | 2,687,000 | 1,070 | ||||||||||
Indocement Tunggal Prakarsa Tbk PT | 118,600 | 192 | ||||||||||
Semen Indonesia Persero Tbk PT | 965,100 | 704 | ||||||||||
|
| |||||||||||
1,966 | ||||||||||||
|
| |||||||||||
TELECOMMUNICATION SERVICES 0.1% | ||||||||||||
Telekomunikasi Indonesia Persero Tbk PT | 2,296,300 | 751 | ||||||||||
XL Axiata Tbk PT | 841,500 | 184 | ||||||||||
|
| |||||||||||
935 | ||||||||||||
|
| |||||||||||
UTILITIES 0.1% | ||||||||||||
Perusahaan Gas Negara Persero Tbk | 8,965,500 | 1,155 | ||||||||||
|
| |||||||||||
Total Indonesia | 20,625 | |||||||||||
|
| |||||||||||
MALAYSIA 1.4% | ||||||||||||
CONSUMER DISCRETIONARY 0.2% | ||||||||||||
DRB-Hicom Bhd. | 2,705,200 | 1,221 | ||||||||||
Genting Bhd. | 605,000 | 1,374 | ||||||||||
UMW Holdings Bhd. (a) | 284,500 | 364 | ||||||||||
|
| |||||||||||
2,959 | ||||||||||||
|
| |||||||||||
CONSUMER STAPLES 0.1% | ||||||||||||
British American Tobacco Malaysia Bhd. | 86,800 | 858 | ||||||||||
Felda Global Ventures Holdings Bhd. | 2,115,800 | 884 | ||||||||||
Sime Darby Plantation Bhd. (a) | 283,900 | 421 | ||||||||||
|
| |||||||||||
2,163 | ||||||||||||
|
| |||||||||||
See Accompanying Notes | SEMIANNUAL REPORT | DECEMBER 31, 2017 | 33 |
Table of Contents
Schedule of Investments PIMCO RAE Fundamental Emerging Markets Fund (Cont.)
SHARES | MARKET VALUE (000S) | |||||||||||
ENERGY 0.0% | ||||||||||||
Sapura Energy Bhd. | 2,022,500 | $ | 354 | |||||||||
|
| |||||||||||
FINANCIALS 0.6% | ||||||||||||
Alliance Bank Malaysia Bhd. | 556,300 | 560 | ||||||||||
AMMB Holdings Bhd. | 1,523,900 | 1,660 | ||||||||||
CIMB Group Holdings Bhd. | 2,306,200 | 3,727 | ||||||||||
Malayan Banking Bhd. | 1,895,800 | 4,588 | ||||||||||
Public Bank Bhd. | 247,500 | 1,271 | ||||||||||
RHB Bank Bhd. | 620,900 | 767 | ||||||||||
|
| |||||||||||
12,573 | ||||||||||||
|
| |||||||||||
INDUSTRIALS 0.1% | ||||||||||||
AirAsia Bhd. | 1,434,200 | 1,187 | ||||||||||
Berjaya Corp. Bhd. (a) | 2,846,900 | 236 | ||||||||||
MISC Bhd. | 195,200 | 357 | ||||||||||
MMC Corp. Bhd. | 369,200 | 187 | ||||||||||
Sime Darby Bhd. | 283,900 | 155 | ||||||||||
|
| |||||||||||
2,122 | ||||||||||||
|
| |||||||||||
MATERIALS 0.0% | ||||||||||||
Petronas Chemicals Group Bhd. | 103,200 | 196 | ||||||||||
|
| |||||||||||
REAL ESTATE 0.1% | ||||||||||||
Sime Darby Property Bhd. (a) | 283,900 | 125 | ||||||||||
Sunway Bhd. | 1,620,533 | 652 | ||||||||||
|
| |||||||||||
777 | ||||||||||||
|
| |||||||||||
TELECOMMUNICATION SERVICES 0.1% | ||||||||||||
Axiata Group Bhd. | 934,100 | 1,264 | ||||||||||
Maxis Bhd. | 233,500 | 347 | ||||||||||
Telekom Malaysia Bhd. | 617,900 | 962 | ||||||||||
|
| |||||||||||
2,573 | ||||||||||||
|
| |||||||||||
UTILITIES 0.2% | ||||||||||||
Malakoff Corp. Bhd. | 1,163,200 | 282 | ||||||||||
Tenaga Nasional Bhd. | 466,600 | 1,758 | ||||||||||
YTL Corp. Bhd. | 3,529,402 | 1,193 | ||||||||||
YTL Power International Bhd. | 1,066,614 | 340 | ||||||||||
|
| |||||||||||
3,573 | ||||||||||||
|
| |||||||||||
Total Malaysia | 27,290 | |||||||||||
|
| |||||||||||
MALTA 0.0% | ||||||||||||
FINANCIALS 0.0% | ||||||||||||
Brait SE | 107,240 | 361 | ||||||||||
|
| |||||||||||
Total Malta | 361 | |||||||||||
|
| |||||||||||
MEXICO 1.2% | ||||||||||||
CONSUMER DISCRETIONARY 0.0% | ||||||||||||
Megacable Holdings S.A.B. de C.V. | 44,200 | 180 | ||||||||||
|
| |||||||||||
CONSUMER STAPLES 0.1% | ||||||||||||
Coca-Cola Femsa S.A.B. de C.V. SP - ADR | 9,294 | 647 | ||||||||||
Fomento Economico Mexicano S.A.B. de C.V. SP - ADR | 10,250 | 962 | ||||||||||
Grupo Bimbo S.A.B. de C.V. ‘A’ | 145,300 | 322 | ||||||||||
Kimberly-Clark de Mexico S.A.B. de C.V. ‘A’ | 187,900 | 331 |
SHARES | MARKET VALUE (000S) | |||||||||||
Wal-Mart de Mexico S.A.B. de C.V. | 77,700 | $ | 191 | |||||||||
|
| |||||||||||
2,453 | ||||||||||||
|
| |||||||||||
FINANCIALS 0.2% | ||||||||||||
Grupo Elektra S.A.B. de C.V. | 51,790 | 1,854 | ||||||||||
Grupo Financiero Banorte S.A.B. de C.V. ‘O’ | 87,700 | 481 | ||||||||||
Grupo Financiero Inbursa S.A.B. de C.V. ‘O’ | 102,200 | 167 | ||||||||||
Grupo Financiero Santander Mexico S.A.B. de C.V. ADR ‘B’ | 125,946 | 921 | ||||||||||
|
| |||||||||||
3,423 | ||||||||||||
|
| |||||||||||
INDUSTRIALS 0.2% | ||||||||||||
Alfa S.A.B. de C.V. ‘A’ | 2,911,500 | 3,206 | ||||||||||
|
| |||||||||||
MATERIALS 0.2% | ||||||||||||
Cemex S.A.B. de C.V. | 444,060 | 3,330 | ||||||||||
Industrias Penoles S.A.B. de C.V. | 9,020 | 189 | ||||||||||
|
| |||||||||||
3,519 | ||||||||||||
|
| |||||||||||
TELECOMMUNICATION SERVICES 0.5% | ||||||||||||
America Movil S.A.B. de C.V. SP - ADR ‘L’ | 609,058 | 10,445 | ||||||||||
|
| |||||||||||
Total Mexico | 23,226 | |||||||||||
|
| |||||||||||
PHILIPPINES 0.2% | ||||||||||||
INDUSTRIALS 0.1% | ||||||||||||
Alliance Global Group, Inc. (a) | 2,935,600 | 941 | ||||||||||
San Miguel Corp. | 83,810 | 187 | ||||||||||
|
| |||||||||||
1,128 | ||||||||||||
|
| |||||||||||
TELECOMMUNICATION SERVICES 0.1% | ||||||||||||
Globe Telecom, Inc. | 9,540 | 363 | ||||||||||
PLDT, Inc. | 99,105 | 2,940 | ||||||||||
|
| |||||||||||
3,303 | ||||||||||||
|
| |||||||||||
Total Philippines | 4,431 | |||||||||||
|
| |||||||||||
POLAND 2.3% | ||||||||||||
ENERGY 0.2% | ||||||||||||
Grupa Lotos S.A. | 106,565 | 1,763 | ||||||||||
Polski Koncern Naftowy ORLEN S.A. | 39,506 | 1,201 | ||||||||||
Polskie Gornictwo Naftowe i Gazownictwo S.A. | 1,129,569 | 2,041 | ||||||||||
|
| |||||||||||
5,005 | ||||||||||||
|
| |||||||||||
FINANCIALS 0.7% | ||||||||||||
Bank Handlowy w Warszawie S.A. | 33,170 | 780 | ||||||||||
Bank Millennium S.A. (a) | 78,236 | 201 | ||||||||||
Bank Pekao S.A. | 84,772 | 3,148 | ||||||||||
Getin Noble Bank S.A. (a) | 1,505,212 | 700 | ||||||||||
Powszechna Kasa Oszczednosci Bank Polski S.A. | 455,554 | 5,783 | ||||||||||
Powszechny Zaklad Ubezpieczen S.A. | 335,869 | 4,063 | ||||||||||
|
| |||||||||||
14,675 | ||||||||||||
|
| |||||||||||
SHARES | MARKET VALUE (000S) | |||||||||||
INFORMATION TECHNOLOGY 0.1% | ||||||||||||
Asseco Poland S.A. | 96,012 | $ | 1,211 | |||||||||
|
| |||||||||||
MATERIALS 0.5% | ||||||||||||
Grupa Azoty S.A. | 9,319 | 186 | ||||||||||
Jastrzebska Spolka Weglowa S.A. | 29,889 | 824 | ||||||||||
KGHM Polska Miedz S.A. | 265,132 | 8,443 | ||||||||||
Synthos S.A. | 645,623 | 905 | ||||||||||
|
| |||||||||||
10,358 | ||||||||||||
|
| |||||||||||
TELECOMMUNICATION SERVICES 0.2% | ||||||||||||
Orange Polska S.A. | 1,960,081 | 3,257 | ||||||||||
|
| |||||||||||
UTILITIES 0.6% | ||||||||||||
Enea S.A. | 437,735 | 1,446 | ||||||||||
Energa S.A. | 928,480 | 3,391 | ||||||||||
PGE Polska Grupa Energetyczna S.A. (a) | 1,139,863 | 3,940 | ||||||||||
Tauron Polska Energia S.A. | 3,057,671 | 2,675 | ||||||||||
|
| |||||||||||
11,452 | ||||||||||||
|
| |||||||||||
Total Poland | 45,958 | |||||||||||
|
| |||||||||||
RUSSIA 8.1% | ||||||||||||
CONSUMER STAPLES 0.2% | ||||||||||||
X5 Retail Group NV GDR (a) | 86,675 | 3,274 | ||||||||||
|
| |||||||||||
ENERGY 4.9% | ||||||||||||
Gazprom Neft PJSC SP - ADR | 55,312 | 1,185 | ||||||||||
Gazprom PJSC SP - ADR | 9,342,790 | 41,086 | ||||||||||
Lukoil PJSC SP - ADR | 494,516 | 28,181 | ||||||||||
Rosneft Oil, Co. PJSC GDR | 1,152,172 | 5,733 | ||||||||||
Surgutneftegas OJSC SP - ADR | 3,738,522 | 17,549 | ||||||||||
Tatneft PJSC SP - ADR | 57,763 | 2,847 | ||||||||||
TMK PJSC | 366,980 | 469 | ||||||||||
|
| |||||||||||
97,050 | ||||||||||||
|
| |||||||||||
FINANCIALS 0.5% | ||||||||||||
Sberbank of Russia PJSC SP - ADR | 519,933 | 8,764 | ||||||||||
VTB Bank PJSC GDR | 609,706 | 1,108 | ||||||||||
|
| |||||||||||
9,872 | ||||||||||||
|
| |||||||||||
INDUSTRIALS 0.1% | ||||||||||||
Aeroflot PJSC | 696,760 | 1,677 | ||||||||||
Globaltrans Investment PLC GDR | 36,650 | 344 | ||||||||||
|
| |||||||||||
2,021 | ||||||||||||
|
| |||||||||||
INFORMATION TECHNOLOGY 0.0% | ||||||||||||
Mail.Ru Group Ltd. SP - GDR (a) | 27,199 | 786 | ||||||||||
|
| |||||||||||
MATERIALS 1.1% | ||||||||||||
Evraz PLC | 648,677 | 2,978 | ||||||||||
Magnitogorsk Iron & Steel Works PJSC | 237,100 | 172 | ||||||||||
Mechel PJSC SP - ADR | 673,901 | 3,545 | ||||||||||
MMC Norilsk Nickel PJSC ADR | 606,580 | 11,336 | ||||||||||
Novolipetsk Steel PJSC GDR | 33,224 | 848 | ||||||||||
Severstal PJSC GDR | 183,496 | 2,810 | ||||||||||
|
| |||||||||||
21,689 | ||||||||||||
|
| |||||||||||
34 | PIMCO EQUITY SERIES | See Accompanying Notes |
Table of Contents
December 31, 2017 (Unaudited)
SHARES | MARKET VALUE (000S) | |||||||||||
REAL ESTATE 0.0% | ||||||||||||
LSR Group PJSC GDR | 44,940 | $ | 123 | |||||||||
|
| |||||||||||
TELECOMMUNICATION SERVICES 0.9% | ||||||||||||
MegaFon PJSC SP - GDR | 400,639 | 3,706 | ||||||||||
Mobile TeleSystems PJSC | 1,710,740 | 8,202 | ||||||||||
Rostelecom PJSC | 1,793,750 | 1,980 | ||||||||||
Sistema PJSC FC SP - GDR | 685,388 | 2,861 | ||||||||||
|
| |||||||||||
16,749 | ||||||||||||
|
| |||||||||||
UTILITIES 0.4% | ||||||||||||
Federal Grid Co. Unified Energy System PJSC | 537,700,000 | 1,509 | ||||||||||
Inter RAO UES PJSC | 9,678,000 | 564 | ||||||||||
Mosenergo PJSC | 11,879,000 | 541 | ||||||||||
Rosseti PJSC | 216,969,012 | 3,079 | ||||||||||
RusHydro PJSC | 133,343,000 | 1,687 | ||||||||||
Unipro PJSC | 10,847,000 | 479 | ||||||||||
|
| |||||||||||
7,859 | ||||||||||||
|
| |||||||||||
Total Russia | 159,423 | |||||||||||
|
| |||||||||||
SOUTH AFRICA 6.2% | ||||||||||||
CONSUMER DISCRETIONARY 0.2% | ||||||||||||
Imperial Holdings Ltd. | 188,031 | 3,973 | ||||||||||
Tsogo Sun Holdings Ltd. | 233,065 | 459 | ||||||||||
|
| |||||||||||
4,432 | ||||||||||||
|
| |||||||||||
CONSUMER STAPLES 0.0% | ||||||||||||
Massmart Holdings Ltd. | 67,450 | 761 | ||||||||||
|
| |||||||||||
ENERGY 0.1% | ||||||||||||
Exxaro Resources Ltd. | 175,259 | 2,302 | ||||||||||
|
| |||||||||||
FINANCIALS 2.2% | ||||||||||||
Barclays Africa Group Ltd. | 799,313 | 11,709 | ||||||||||
FirstRand Ltd. | 560,670 | 3,035 | ||||||||||
Investec Ltd. | 584,267 | 4,237 | ||||||||||
Liberty Holdings Ltd. | 431,564 | 4,340 | ||||||||||
MMI Holdings Ltd. | 1,422,281 | 2,414 | ||||||||||
Nedbank Group Ltd. | 267,639 | 5,521 | ||||||||||
Standard Bank Group Ltd. | 825,109 | 12,992 | ||||||||||
|
| |||||||||||
44,248 | ||||||||||||
|
| |||||||||||
HEALTH CARE 0.2% | ||||||||||||
Life Healthcare Group Holdings Ltd. | 649,580 | 1,457 | ||||||||||
Netcare Ltd. | 741,372 | 1,507 | ||||||||||
|
| |||||||||||
2,964 | ||||||||||||
|
| |||||||||||
INDUSTRIALS 0.3% | ||||||||||||
Barloworld Ltd. | 455,953 | 5,880 | ||||||||||
|
| |||||||||||
MATERIALS 2.1% | ||||||||||||
African Rainbow Minerals Ltd. | 126,240 | 1,362 | ||||||||||
Gold Fields Ltd. SP - ADR | 941,976 | 4,051 | ||||||||||
Impala Platinum Holdings Ltd. (a) | 243,826 | 639 | ||||||||||
Kumba Iron Ore Ltd. | 380,386 | 11,656 | ||||||||||
Mondi Ltd. | 189,816 | 4,898 | ||||||||||
Nampak Ltd. (a) | 1,499,262 | 1,966 |
SHARES | MARKET VALUE (000S) | |||||||||||
Sappi Ltd. | 154,429 | $ | 1,117 | |||||||||
Sasol Ltd. | 424,091 | 14,660 | ||||||||||
|
| |||||||||||
40,349 | ||||||||||||
|
| |||||||||||
TELECOMMUNICATION SERVICES 1.1% | ||||||||||||
MTN Group Ltd. | 1,516,622 | 16,744 | ||||||||||
Telkom S.A. SOC Ltd. | 626,750 | 2,437 | ||||||||||
Vodacom Group Ltd. | 123,880 | 1,453 | ||||||||||
|
| |||||||||||
20,634 | ||||||||||||
|
| |||||||||||
Total South Africa | 121,570 | |||||||||||
|
| |||||||||||
SOUTH KOREA 19.6% | ||||||||||||
CONSUMER DISCRETIONARY 3.6% | ||||||||||||
CJ O Shopping Co. Ltd. | 12,621 | 2,723 | ||||||||||
Hyundai Department Store Co. Ltd. | 13,738 | 1,339 | ||||||||||
Hyundai Mobis Co. Ltd. | 8,826 | 2,168 | ||||||||||
Hyundai Motor Co. | 158,526 | 23,071 | ||||||||||
Hyundai Wia Corp. | 23,214 | 1,409 | ||||||||||
Kia Motors Corp. | 277,978 | 8,699 | ||||||||||
Kumho Tire Co., Inc. (a) | 360,400 | 1,490 | ||||||||||
LG Electronics, Inc. | 199,473 | 19,723 | ||||||||||
LOTTE Himart Co. Ltd. | 16,291 | 1,048 | ||||||||||
Lotte Shopping Co. Ltd. | 23,820 | 4,428 | ||||||||||
Mando Corp. | 2,956 | 852 | ||||||||||
Shinsegae, Inc. | 12,331 | 3,456 | ||||||||||
|
| |||||||||||
70,406 | ||||||||||||
|
| |||||||||||
CONSUMER STAPLES 0.4% | ||||||||||||
CJ CheilJedang Corp. | 1,708 | 584 | ||||||||||
E-MART, Inc. | 20,092 | 5,081 | ||||||||||
Hite Jinro Co. Ltd. | 65,570 | 1,476 | ||||||||||
Lotte Chilsung Beverage Co. Ltd. | 81 | 101 | ||||||||||
|
| |||||||||||
7,242 | ||||||||||||
|
| |||||||||||
ENERGY 0.2% | ||||||||||||
GS Holdings Corp. | 42,336 | 2,459 | ||||||||||
SK Innovation Co. Ltd. | 10,003 | 1,908 | ||||||||||
|
| |||||||||||
4,367 | ||||||||||||
|
| |||||||||||
FINANCIALS 4.8% | ||||||||||||
BNK Financial Group, Inc. | 325,560 | 2,861 | ||||||||||
DGB Financial Group, Inc. | 341,913 | 3,365 | ||||||||||
Hana Financial Group, Inc. | 362,030 | 16,828 | ||||||||||
Hanwha Life Insurance Co. Ltd. | 771,057 | 4,970 | ||||||||||
Hyundai Marine & Fire Insurance Co. Ltd. | 44,421 | 1,948 | ||||||||||
Industrial Bank of Korea | 466,198 | 7,151 | ||||||||||
JB Financial Group Co. Ltd. | 244,310 | 1,384 | ||||||||||
KB Financial Group, Inc. | 251,851 | 14,905 | ||||||||||
Korea Investment Holdings Co. Ltd. | 6,730 | 433 | ||||||||||
Meritz Financial Group, Inc. | 29,984 | 422 | ||||||||||
Meritz Fire & Marine Insurance Co. Ltd. | 23,100 | 506 | ||||||||||
Mirae Asset Life Insurance Co. Ltd. | 273,944 | 1,343 | ||||||||||
Samsung Card Co. Ltd. | 46,037 | 1,703 | ||||||||||
Samsung Fire & Marine Insurance Co. Ltd. | 4,981 | 1,242 | ||||||||||
Samsung Life Insurance Co. Ltd. | 44,902 | 5,209 |
SHARES | MARKET VALUE (000S) | |||||||||||
Shinhan Financial Group Co. Ltd. | 332,118 | $ | 15,330 | |||||||||
Tongyang Life Insurance Co. Ltd. | 144,760 | 1,028 | ||||||||||
Woori Bank | 906,747 | 13,330 | ||||||||||
|
| |||||||||||
93,958 | ||||||||||||
|
| |||||||||||
INDUSTRIALS 1.7% | ||||||||||||
Asiana Airlines, Inc. (a) | 393,650 | 1,664 | ||||||||||
CJ Corp. | 21,694 | 3,673 | ||||||||||
Daewoo Engineering & Construction Co. Ltd. (a) | 77,830 | 431 | ||||||||||
Doosan Bobcat, Inc. | 5,515 | 184 | ||||||||||
Doosan Corp. | 23,247 | 2,451 | ||||||||||
Doosan Heavy Industries & Construction Co. Ltd. | 200,049 | 2,868 | ||||||||||
Doosan Infracore Co. Ltd. (a) | 512,594 | 4,154 | ||||||||||
Hanwha Corp. | 70,655 | 2,732 | ||||||||||
Hyundai Construction Equipment Co. Ltd. (a) | 2,368 | 373 | ||||||||||
Hyundai Electric & Energy System Co. Ltd. (a) | 2,452 | 261 | ||||||||||
Hyundai Engineering & Construction Co. Ltd. | 36,446 | 1,236 | ||||||||||
Hyundai Robotics Co. Ltd. (a) | 3,145 | 1,119 | ||||||||||
KCC Corp. | 2,207 | 786 | ||||||||||
Korean Air Lines Co. Ltd. (a) | 194,036 | 6,124 | ||||||||||
LG Corp. | 2,295 | 195 | ||||||||||
LS Corp. | 44,825 | 3,033 | ||||||||||
Samsung Heavy Industries Co. Ltd. | 53,902 | 369 | ||||||||||
SK Networks Co. Ltd. | 424,914 | 2,638 | ||||||||||
|
| |||||||||||
34,291 | ||||||||||||
|
| |||||||||||
INFORMATION TECHNOLOGY 4.9% | ||||||||||||
LG Display Co. Ltd. | 252,418 | 7,026 | ||||||||||
LG Innotek Co. Ltd. | 6,908 | 926 | ||||||||||
Samsung Electro-Mechanics Co. Ltd. | 22,781 | 2,124 | ||||||||||
Samsung Electronics Co. Ltd. | 32,416 | 77,017 | ||||||||||
Samsung SDI Co. Ltd. | 3,345 | 638 | ||||||||||
SK Hynix, Inc. | 140,886 | 10,007 | ||||||||||
|
| |||||||||||
97,738 | ||||||||||||
|
| |||||||||||
MATERIALS 1.6% | ||||||||||||
Dongkuk Steel Mill Co. Ltd. | 222,411 | 2,286 | ||||||||||
Hyundai Steel Co. | 60,871 | 3,333 | ||||||||||
Kolon Industries, Inc. | 19,811 | 1,645 | ||||||||||
LG Chem Ltd. | 4,294 | 1,624 | ||||||||||
OCI Co. Ltd. | 1,637 | 208 | ||||||||||
POSCO | 72,055 | 22,413 | ||||||||||
Taekwang Industrial Co. Ltd. | 429 | 528 | ||||||||||
|
| |||||||||||
32,037 | ||||||||||||
|
| |||||||||||
TELECOMMUNICATION SERVICES 1.8% | ||||||||||||
KT Corp. SP - ADR | 1,100,073 | 17,172 | ||||||||||
LG Uplus Corp. | 548,169 | 7,169 | ||||||||||
SK Telecom Co. Ltd. SP - ADR | 378,872 | 10,574 | ||||||||||
|
| |||||||||||
34,915 | ||||||||||||
|
| |||||||||||
UTILITIES 0.6% | ||||||||||||
Korea Electric Power Corp. | 230,097 | 8,179 | ||||||||||
Korea Gas Corp. | 83,376 | 3,317 | ||||||||||
|
| |||||||||||
11,496 | ||||||||||||
|
| |||||||||||
Total South Korea | 386,450 | |||||||||||
|
|
See Accompanying Notes | SEMIANNUAL REPORT | DECEMBER 31, 2017 | 35 |
Table of Contents
Schedule of Investments PIMCO RAE Fundamental Emerging Markets Fund (Cont.)
SHARES | MARKET VALUE (000S) | |||||||||||
TAIWAN 7.9% | ||||||||||||
CONSUMER DISCRETIONARY 0.2% | ||||||||||||
Cheng Shin Rubber Industry Co. Ltd. | 518,000 | $ | 914 | |||||||||
Far Eastern Department Stores Ltd. | 1,029,000 | 518 | ||||||||||
Pou Chen Corp. | 1,664,000 | 2,151 | ||||||||||
Ruentex Industries Ltd. | 388,000 | 658 | ||||||||||
Yulon Motor Co. Ltd. | 1,010,000 | 819 | ||||||||||
|
| |||||||||||
5,060 | ||||||||||||
|
| |||||||||||
CONSUMER STAPLES 0.1% | ||||||||||||
Uni-President Enterprises Corp. | 1,207,640 | 2,674 | ||||||||||
|
| |||||||||||
FINANCIALS 1.9% | ||||||||||||
Cathay Financial Holding Co. Ltd. | 2,324,000 | 4,164 | ||||||||||
Chailease Holding Co. Ltd. | 401,000 | 1,163 | ||||||||||
China Development Financial Holding Corp. | 8,878,000 | 3,022 | ||||||||||
China Life Insurance Co. Ltd. | 4,674,608 | 4,690 | ||||||||||
CTBC Financial Holding Co. Ltd. | 3,238,000 | 2,226 | ||||||||||
First Financial Holding Co. Ltd. | 2,269,020 | 1,488 | ||||||||||
Fubon Financial Holding Co. Ltd. | 1,929,000 | 3,279 | ||||||||||
Hua Nan Financial Holdings Co. Ltd. | 2,380,995 | 1,339 | ||||||||||
Mega Financial Holding Co. Ltd. | 3,562,658 | 2,873 | ||||||||||
Mercuries Life Insurance Co. Ltd. (a) | 1,875,717 | 1,020 | ||||||||||
Shanghai Commercial & Savings Bank Ltd. | 1,130,451 | 1,278 | ||||||||||
Shin Kong Financial Holding Co. Ltd. | 10,955,903 | 3,854 | ||||||||||
SinoPac Financial Holdings Co. Ltd. | 9,014,622 | 2,929 | ||||||||||
Taishin Financial Holding Co. Ltd. | 4,076,719 | 1,894 | ||||||||||
Taiwan Business Bank | 3,002,552 | 846 | ||||||||||
Taiwan Cooperative Financial Holding Co. Ltd. | 1,655,501 | 923 | ||||||||||
Yuanta Financial Holding Co. Ltd. | 3,525,000 | 1,630 | ||||||||||
|
| |||||||||||
38,618 | ||||||||||||
|
| |||||||||||
INDUSTRIALS 0.3% | ||||||||||||
China Airlines Ltd. (a) | 3,922,000 | 1,531 | ||||||||||
Far Eastern New Century Corp. | 3,344,520 | 3,006 | ||||||||||
Taiwan High Speed Rail Corp. | 662,000 | 522 | ||||||||||
Teco Electric and Machinery Co. Ltd. | 856,000 | 817 | ||||||||||
|
| |||||||||||
5,876 | ||||||||||||
|
| |||||||||||
INFORMATION TECHNOLOGY 4.8% | ||||||||||||
Acer, Inc. | 3,450,000 | 2,793 | ||||||||||
Advanced Semiconductor Engineering, Inc. | 833,580 | 1,067 | ||||||||||
Asustek Computer, Inc. | 547,000 | 5,137 | ||||||||||
AU Optronics Corp. | 14,233,000 | 5,915 | ||||||||||
Catcher Technology Co. Ltd. | 80,000 | 877 | ||||||||||
Chicony Electronics Co. Ltd. | 129,000 | 324 | ||||||||||
Compal Electronics, Inc. | 6,285,000 | 4,492 | ||||||||||
Foxconn Technology Co. Ltd. | 208,000 | 593 | ||||||||||
Hon Hai Precision Industry Co. Ltd. | 3,893,145 | 12,379 |
SHARES | MARKET VALUE (000S) | |||||||||||
HTC Corp. | 1,628,000 | $ | 3,999 | |||||||||
Innolux Corp. | 19,269,000 | 7,999 | ||||||||||
Inventec Corp. | 1,702,000 | 1,354 | ||||||||||
Lite-On Technology Corp. | 2,217,035 | 3,016 | ||||||||||
MediaTek, Inc. | 377,000 | 3,706 | ||||||||||
Novatek Microelectronics Corp. | 320,000 | 1,216 | ||||||||||
Pegatron Corp. | 632,000 | 1,523 | ||||||||||
Powertech Technology, Inc. | 348,000 | 1,025 | ||||||||||
Quanta Computer, Inc. | 1,162,000 | 2,417 | ||||||||||
Siliconware Precision Industries Co. Ltd. | 743,000 | 1,254 | ||||||||||
Synnex Technology International Corp. | 1,138,650 | 1,549 | ||||||||||
Taiwan Semiconductor Manufacturing Co. Ltd. SP - ADR | 253,671 | 10,058 | ||||||||||
TPK Holding Co. Ltd. | 1,252,000 | 3,492 | ||||||||||
Unimicron Technology Corp. | 3,818,000 | 2,083 | ||||||||||
United Microelectronics Corp. | 14,389,000 | 6,832 | ||||||||||
Wistron Corp. | 5,132,229 | 4,113 | ||||||||||
WPG Holdings Ltd. | 1,422,000 | 1,878 | ||||||||||
Yageo Corp. | 218,938 | 2,587 | ||||||||||
Zhen Ding Technology Holding Ltd. | 253,000 | 554 | ||||||||||
|
| |||||||||||
94,232 | ||||||||||||
|
| |||||||||||
MATERIALS 0.4% | ||||||||||||
Asia Cement Corp. | 2,201,000 | 2,082 | ||||||||||
China Steel Corp. | 1,439,000 | 1,196 | ||||||||||
Nan Ya Plastics Corp. | 164,000 | 428 | ||||||||||
Taiwan Cement Corp. | 2,810,000 | 3,438 | ||||||||||
|
| |||||||||||
7,144 | ||||||||||||
|
| |||||||||||
REAL ESTATE 0.1% | ||||||||||||
Farglory Land Development Co. Ltd. | 395,000 | 426 | ||||||||||
Highwealth Construction Corp. | 437,000 | 620 | ||||||||||
|
| |||||||||||
1,046 | ||||||||||||
|
| |||||||||||
TELECOMMUNICATION SERVICES 0.1% | ||||||||||||
Chunghwa Telecom Co. Ltd. | 511,000 | 1,818 | ||||||||||
|
| |||||||||||
Total Taiwan | 156,468 | |||||||||||
|
| |||||||||||
THAILAND 2.5% | ||||||||||||
ENERGY 0.9% | ||||||||||||
Banpu PCL | 4,468,900 | 2,671 | ||||||||||
IRPC PCL | 2,653,700 | 574 | ||||||||||
PTT Exploration & Production PCL | 2,097,100 | 6,427 | ||||||||||
PTT PCL | 644,500 | 8,685 | ||||||||||
|
| |||||||||||
18,357 | ||||||||||||
|
| |||||||||||
FINANCIALS 1.1% | ||||||||||||
Bangkok Bank PCL | 1,065,100 | 6,602 | ||||||||||
Kasikornbank PCL | 527,100 | 3,744 | ||||||||||
Krung Thai Bank PCL | 5,091,675 | 2,993 | ||||||||||
Siam Commercial Bank PCL | 902,900 | 4,144 | ||||||||||
Thanachart Capital PCL | 2,065,600 | 3,562 | ||||||||||
Tisco Financial Group PCL | 172,200 | 468 | ||||||||||
TMB Bank PCL | 5,969,100 | 553 | ||||||||||
|
| |||||||||||
22,066 | ||||||||||||
|
| |||||||||||
SHARES | MARKET VALUE (000S) | |||||||||||
INDUSTRIALS 0.2% | ||||||||||||
Thai Airways International PCL (a) | 8,006,000 | $ | 4,250 | |||||||||
|
| |||||||||||
MATERIALS 0.1% | ||||||||||||
PTT Global Chemical PCL | 734,500 | 1,914 | ||||||||||
|
| |||||||||||
REAL ESTATE 0.0% | ||||||||||||
Pruksa Holding PCL | 235,200 | 170 | ||||||||||
|
| |||||||||||
TELECOMMUNICATION SERVICES 0.2% | ||||||||||||
Advanced Info Service PCL | 34,400 | 202 | ||||||||||
Total Access Communication PCL | 2,102,900 | 3,154 | ||||||||||
|
| |||||||||||
3,356 | ||||||||||||
|
| |||||||||||
Total Thailand | 50,113 | |||||||||||
|
| |||||||||||
TURKEY 2.7% | ||||||||||||
CONSUMER DISCRETIONARY 0.1% | ||||||||||||
Arcelik A/S | 96,715 | 549 | ||||||||||
Ford Otomotiv Sanayi A/S | 13,770 | 219 | ||||||||||
Vestel Elektronik Sanayi ve Ticaret A/S (a) | 365,931 | 730 | ||||||||||
|
| |||||||||||
1,498 | ||||||||||||
|
| |||||||||||
CONSUMER STAPLES 0.1% | ||||||||||||
Anadolu Efes Biracilik Ve Malt Sanayii A/S | 68,830 | 439 | ||||||||||
Migros Ticaret A/S | 228,088 | 1,658 | ||||||||||
|
| |||||||||||
2,097 | ||||||||||||
|
| |||||||||||
ENERGY 0.1% | ||||||||||||
Tupras Turkiye Petrol Rafinerileri A/S | 48,220 | 1,545 | ||||||||||
|
| |||||||||||
FINANCIALS 1.6% | ||||||||||||
Akbank Turk A/S | 1,439,780 | 3,737 | ||||||||||
Haci Omer Sabanci Holding A/S | 2,296,280 | 6,727 | ||||||||||
Sekerbank TAS (a) | 3,282,930 | 1,583 | ||||||||||
Turkiye Garanti Bankasi A/S | 1,308,970 | 3,699 | ||||||||||
Turkiye Halk Bankasi A/S | 1,546,670 | 4,395 | ||||||||||
Turkiye Is Bankasi ‘C’ | 3,477,860 | 6,386 | ||||||||||
Turkiye Vakiflar Bankasi TAO ‘D’ | 1,461,740 | 2,607 | ||||||||||
Yapi ve Kredi Bankasi A/S | 1,632,200 | 1,867 | ||||||||||
|
| |||||||||||
31,001 | ||||||||||||
|
| |||||||||||
INDUSTRIALS 0.5% | ||||||||||||
KOC Holding A/S | 349,660 | 1,703 | ||||||||||
TAV Havalimanlari Holding A/S | 160,200 | 948 | ||||||||||
Turk Hava Yollari AO (a) | 1,746,680 | 7,231 | ||||||||||
Turkiye Sise ve Cam Fabrikalari A/S | 426,883 | 529 | ||||||||||
|
| |||||||||||
10,411 | ||||||||||||
|
| |||||||||||
MATERIALS 0.1% | ||||||||||||
Eregli Demir ve Celik Fabrikalari TAS | 1,199,350 | 3,164 | ||||||||||
|
| |||||||||||
TELECOMMUNICATION SERVICES 0.2% | ||||||||||||
Turk Telekomunikasyon A/S | 782,980 | 1,329 |
36 | PIMCO EQUITY SERIES | See Accompanying Notes |
Table of Contents
December 31, 2017 (Unaudited)
SHARES | MARKET VALUE (000S) | |||||||||||
Turkcell Iletisim Hizmetleri A/S | 458,923 | $ | 1,871 | |||||||||
|
| |||||||||||
3,200 | ||||||||||||
|
| |||||||||||
Total Turkey | 52,916 | |||||||||||
|
| |||||||||||
Total Common Stocks (Cost $1,440,394) | 1,922,373 | |||||||||||
|
| |||||||||||
PREFERRED STOCKS 2.3% | ||||||||||||
BRAZIL 1.9% | ||||||||||||
BANKING & FINANCE 0.1% | ||||||||||||
Banco do Estado do Rio Grande do Sul S.A. | 500,700 | 2,249 | ||||||||||
|
| |||||||||||
CONSUMER STAPLES 0.5% | ||||||||||||
Cia Brasileira de Distribuicao | 370,000 | 8,806 | ||||||||||
|
| |||||||||||
MATERIALS 0.7% | ||||||||||||
Braskem S.A. | 192,400 | 2,486 | ||||||||||
Metalurgica Gerdau S.A. | 6,385,400 | 11,135 | ||||||||||
Usinas Siderurgicas de Minas Gerais S.A. | 301,100 | 825 | ||||||||||
|
| |||||||||||
14,446 | ||||||||||||
|
|
SHARES | MARKET VALUE (000S) | |||||||||||
UTILITIES 0.6% | ||||||||||||
Centrais Eletricas Brasileiras S.A. | 514,300 | $ | 3,524 | |||||||||
Cia de Gas de Sao Paulo - COMGAS | 32,100 | 581 | ||||||||||
Cia de Saneamento do Parana | 480,500 | 1,695 | ||||||||||
Cia de Transmissao de Energia Eletrica Paulista | 9,300 | 188 | ||||||||||
Cia Energetica de Sao Paulo | 878,100 | 3,494 | ||||||||||
Cia Paranaense de Energia | 373,600 | 2,810 | ||||||||||
|
| |||||||||||
12,292 | ||||||||||||
|
| |||||||||||
Total Brazil | 37,793 | |||||||||||
|
| |||||||||||
RUSSIA 0.4% | ||||||||||||
ENERGY 0.4% | ||||||||||||
Bashneft PJSC | 64,528 | 1,514 | ||||||||||
Transneft PJSC | 2,107 | 6,497 | ||||||||||
|
| |||||||||||
8,011 | ||||||||||||
|
| |||||||||||
Total Russia | 8,011 | |||||||||||
|
| |||||||||||
Total Preferred Stocks (Cost $26,930) | 45,804 | |||||||||||
|
| |||||||||||
SHARES | MARKET VALUE (000S) | |||||||||||
REAL ESTATE INVESTMENT TRUSTS 0.0% | ||||||||||||
SOUTH AFRICA 0.0% | ||||||||||||
REAL ESTATE 0.0% | ||||||||||||
Growthpoint Properties Ltd. | 82,427 | $ | 184 | |||||||||
|
| |||||||||||
Total Real Estate Investment Trusts (Cost $151) |
| 184 | ||||||||||
|
| |||||||||||
Total Investments in Securities (Cost $1,467,475) | 1,968,361 | |||||||||||
Total Investments 99.6% (Cost $1,467,475) | $ | 1,968,361 | ||||||||||
Other Assets and Liabilities, net 0.4% | 8,064 | |||||||||||
|
| |||||||||||
Net Assets 100.0% | $ | 1,976,425 | ||||||||||
|
|
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 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.
The effect of Financial Derivative Instruments on the Statements of Operations for the period ended December 31, 2017:
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 | $ | 26 | $ | 0 | $ | 26 | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Net Change in Unrealized Appreciation on Financial Derivative Instruments |
| |||||||||||||||||||||||
Over the counter | ||||||||||||||||||||||||
Forward Foreign Currency Contracts | $ | 0 | $ | 0 | $ | 0 | $ | 2 | $ | 0 | $ | 2 | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
See Accompanying Notes | SEMIANNUAL REPORT | DECEMBER 31, 2017 | 37 |
Table of Contents
Schedule of Investments PIMCO RAE Fundamental Emerging Markets Fund (Cont.)
FAIR VALUE MEASUREMENTS
The following is a summary of the fair valuations according to the inputs used as of December 31, 2017 in valuing the Fund’s assets and liabilities:
Category and Subcategory | Level 1 | Level 2 | Level 3 | Fair Value at 12/31/2017 | ||||||||||||
Investments in Securities, at Value |
| |||||||||||||||
Common Stocks | ||||||||||||||||
Australia | ||||||||||||||||
Materials | $ | 0 | $ | 184 | $ | 0 | $ | 184 | ||||||||
Brazil | ||||||||||||||||
Consumer Discretionary | 976 | 7,866 | 0 | 8,842 | ||||||||||||
Consumer Staples | 10,728 | 3,188 | 0 | 13,916 | ||||||||||||
Energy | 21,364 | 277 | 0 | 21,641 | ||||||||||||
Financials | 33,646 | 20,609 | 0 | 54,255 | ||||||||||||
Industrials | 773 | 0 | 0 | 773 | ||||||||||||
Materials | 9,973 | 34,626 | 0 | 44,599 | ||||||||||||
Real Estate | 0 | 406 | 0 | 406 | ||||||||||||
Telecommunication Services | 5,220 | 0 | 0 | 5,220 | ||||||||||||
Utilities | 18,273 | 3,019 | 0 | 21,292 | ||||||||||||
Chile | ||||||||||||||||
Consumer Discretionary | 873 | 0 | 0 | 873 | ||||||||||||
Consumer Staples | 2,962 | 0 | 0 | 2,962 | ||||||||||||
Energy | 1,367 | 0 | 0 | 1,367 | ||||||||||||
Financials | 2,760 | 0 | 0 | 2,760 | ||||||||||||
Industrials | 820 | 0 | 0 | 820 | ||||||||||||
Materials | 2,623 | 5,733 | 0 | 8,356 | ||||||||||||
Telecommunication Services | 619 | 0 | 0 | 619 | ||||||||||||
Utilities | 2,737 | 0 | 0 | 2,737 | ||||||||||||
China | ||||||||||||||||
Consumer Discretionary | 0 | 3,307 | 0 | 3,307 | ||||||||||||
Consumer Staples | 3,696 | 845 | 0 | 4,541 | ||||||||||||
Energy | 0 | 56,098 | 0 | 56,098 | ||||||||||||
Financials | 516 | 232,067 | 0 | 232,583 | ||||||||||||
Health Care | 0 | 3,680 | 0 | 3,680 | ||||||||||||
Industrials | 9,724 | 11,076 | 0 | 20,800 | ||||||||||||
Information Technology | 4,145 | 9,598 | 0 | 13,743 | ||||||||||||
Materials | 0 | 25,891 | 0 | 25,891 | ||||||||||||
Real Estate | 6,677 | 50,266 | 0 | 56,943 | ||||||||||||
Telecommunication Services | 0 | 8,621 | 0 | 8,621 | ||||||||||||
Utilities | 0 | 9,447 | 0 | 9,447 | ||||||||||||
Greece | ||||||||||||||||
Consumer Discretionary | 3,389 | 0 | 0 | 3,389 | ||||||||||||
Energy | 263 | 0 | 0 | 263 | ||||||||||||
Financials | 4,543 | 14,933 | 0 | 19,476 | ||||||||||||
Telecommunication Services | 2,084 | 0 | 0 | 2,084 | ||||||||||||
Utilities | 0 | 1,045 | 0 | 1,045 | ||||||||||||
Hong Kong | ||||||||||||||||
Consumer Discretionary | 483 | 911 | 0 | 1,394 | ||||||||||||
Consumer Staples | 0 | 12,027 | 0 | 12,027 | ||||||||||||
Energy | 0 | 3,775 | 0 | 3,775 | ||||||||||||
Financials | 306 | 13,487 | 0 | 13,793 | ||||||||||||
Industrials | 2,302 | 9,113 | 0 | 11,415 | ||||||||||||
Materials | 0 | 4,051 | 0 | 4,051 | ||||||||||||
Real Estate | 0 | 15,626 | 0 | 15,626 | ||||||||||||
Telecommunication Services | 0 | 23,172 | 0 | 23,172 | ||||||||||||
Utilities | 0 | 8,378 | 0 | 8,378 | ||||||||||||
India | ||||||||||||||||
Consumer Discretionary | 271 | 3,046 | 0 | 3,317 | ||||||||||||
Energy | 0 | 14,440 | 0 | 14,440 | ||||||||||||
Financials | 8,540 | 31,293 | 0 | 39,833 | ||||||||||||
Industrials | 0 | 14,535 | 0 | 14,535 | ||||||||||||
Materials | 3,245 | 35,753 | 0 | 38,998 | ||||||||||||
Real Estate | 0 | 425 | 0 | 425 | ||||||||||||
Telecommunication Services | 6,773 | 622 | 0 | 7,395 | ||||||||||||
Utilities | 1,143 | 6,292 | 0 | 7,435 | ||||||||||||
Indonesia | ||||||||||||||||
Consumer Discretionary | 0 | 1,038 | 0 | 1,038 | ||||||||||||
Consumer Staples | 839 | 0 | 0 | 839 | ||||||||||||
Energy | 3,997 | 4,085 | 0 | 8,082 | ||||||||||||
Financials | 4,525 | 2,085 | 0 | 6,610 | ||||||||||||
Materials | 1,966 | 0 | 0 | 1,966 |
Category and Subcategory | Level 1 | Level 2 | Level 3 | Fair Value at 12/31/2017 | ||||||||||||
Telecommunication Services | $ | 184 | $ | 751 | $ | 0 | $ | 935 | ||||||||
Utilities | 0 | 1,155 | 0 | 1,155 | ||||||||||||
Malaysia | ||||||||||||||||
Consumer Discretionary | 0 | 2,959 | 0 | 2,959 | ||||||||||||
Consumer Staples | 2,163 | 0 | 0 | 2,163 | ||||||||||||
Energy | 0 | 354 | 0 | 354 | ||||||||||||
Financials | 7,425 | 5,148 | 0 | 12,573 | ||||||||||||
Industrials | 1,765 | 357 | 0 | 2,122 | ||||||||||||
Materials | 196 | 0 | 0 | 196 | ||||||||||||
Real Estate | 125 | 652 | 0 | 777 | ||||||||||||
Telecommunication Services | 962 | 1,611 | 0 | 2,573 | ||||||||||||
Utilities | 282 | 3,291 | 0 | 3,573 | ||||||||||||
Malta | ||||||||||||||||
Financials | 0 | 361 | 0 | 361 | ||||||||||||
Mexico | ||||||||||||||||
Consumer Discretionary | 180 | 0 | 0 | 180 | ||||||||||||
Consumer Staples | 2,453 | 0 | 0 | 2,453 | ||||||||||||
Financials | 3,423 | 0 | 0 | 3,423 | ||||||||||||
Industrials | 3,206 | 0 | 0 | 3,206 | ||||||||||||
Materials | 3,519 | 0 | 0 | 3,519 | ||||||||||||
Telecommunication Services | 10,445 | 0 | 0 | 10,445 | ||||||||||||
Philippines | ||||||||||||||||
Industrials | 1,128 | 0 | 0 | 1,128 | ||||||||||||
Telecommunication Services | 363 | 2,940 | 0 | 3,303 | ||||||||||||
Poland | ||||||||||||||||
Energy | 2,041 | 2,964 | 0 | 5,005 | ||||||||||||
Financials | 981 | 13,694 | 0 | 14,675 | ||||||||||||
Information Technology | 0 | 1,211 | 0 | 1,211 | ||||||||||||
Materials | 1,091 | 9,267 | 0 | 10,358 | ||||||||||||
Telecommunication Services | 0 | 3,257 | 0 | 3,257 | ||||||||||||
Utilities | 1,446 | 10,006 | 0 | 11,452 | ||||||||||||
Russia | ||||||||||||||||
Consumer Staples | 3,274 | 0 | 0 | 3,274 | ||||||||||||
Energy | 5,597 | 91,453 | 0 | 97,050 | ||||||||||||
Financials | 0 | 9,872 | 0 | 9,872 | ||||||||||||
Industrials | 2,021 | 0 | 0 | 2,021 | ||||||||||||
Information Technology | 786 | 0 | 0 | 786 | ||||||||||||
Materials | 9,164 | 12,525 | 0 | 21,689 | ||||||||||||
Real Estate | 123 | 0 | 0 | 123 | ||||||||||||
Telecommunication Services | 4,762 | 11,987 | 0 | 16,749 | ||||||||||||
Utilities | 2,707 | 5,152 | 0 | 7,859 | ||||||||||||
South Africa | ||||||||||||||||
Consumer Discretionary | 459 | 3,973 | 0 | 4,432 | ||||||||||||
Consumer Staples | 761 | 0 | 0 | 761 | ||||||||||||
Energy | 2,302 | 0 | 0 | 2,302 | ||||||||||||
Financials | 10,991 | 33,257 | 0 | 44,248 | ||||||||||||
Health Care | 2,964 | 0 | 0 | 2,964 | ||||||||||||
Industrials | 5,880 | 0 | 0 | 5,880 | ||||||||||||
Materials | 23,688 | 16,661 | 0 | 40,349 | ||||||||||||
Telecommunication Services | 2,437 | 18,197 | 0 | 20,634 | ||||||||||||
South Korea | ||||||||||||||||
Consumer Discretionary | 25,421 | 44,985 | 0 | 70,406 | ||||||||||||
Consumer Staples | 1,577 | 5,665 | 0 | 7,242 | ||||||||||||
Energy | 0 | 4,367 | 0 | 4,367 | ||||||||||||
Financials | 2,793 | 91,165 | 0 | 93,958 | ||||||||||||
Industrials | 5,465 | 28,826 | 0 | 34,291 | ||||||||||||
Information Technology | 0 | 97,738 | 0 | 97,738 | ||||||||||||
Materials | 2,152 | 29,885 | 0 | 32,037 | ||||||||||||
Telecommunication Services | 34,915 | 0 | 0 | 34,915 | ||||||||||||
Utilities | 0 | 11,496 | 0 | 11,496 | ||||||||||||
Taiwan | ||||||||||||||||
Consumer Discretionary | 914 | 4,146 | 0 | 5,060 | ||||||||||||
Consumer Staples | 0 | 2,674 | 0 | 2,674 | ||||||||||||
Financials | 4,207 | 34,411 | 0 | 38,618 | ||||||||||||
Industrials | 0 | 5,876 | 0 | 5,876 | ||||||||||||
Information Technology | 21,611 | 72,621 | 0 | 94,232 |
38 | PIMCO EQUITY SERIES | See Accompanying Notes |
Table of Contents
December 31, 2017 (Unaudited)
Category and Subcategory | Level 1 | Level 2 | Level 3 | Fair Value at 12/31/2017 | ||||||||||||
Materials | $ | 0 | $ | 7,144 | $ | 0 | $ | 7,144 | ||||||||
Real Estate | 426 | 620 | 0 | 1,046 | ||||||||||||
Telecommunication Services | 0 | 1,818 | 0 | 1,818 | ||||||||||||
Thailand | ||||||||||||||||
Energy | 0 | 18,357 | 0 | 18,357 | ||||||||||||
Financials | 0 | 22,066 | 0 | 22,066 | ||||||||||||
Industrials | 0 | 4,250 | 0 | 4,250 | ||||||||||||
Materials | 0 | 1,914 | 0 | 1,914 | ||||||||||||
Real Estate | 0 | 170 | 0 | 170 | ||||||||||||
Telecommunication Services | 0 | 3,356 | 0 | 3,356 | ||||||||||||
Turkey | ||||||||||||||||
Consumer Discretionary | 219 | 1,279 | 0 | 1,498 | ||||||||||||
Consumer Staples | 439 | 1,658 | 0 | 2,097 | ||||||||||||
Energy | 0 | 1,545 | 0 | 1,545 | ||||||||||||
Financials | 0 | 31,001 | 0 | 31,001 | ||||||||||||
Industrials | 0 | 10,411 | 0 | 10,411 |
Category and Subcategory | Level 1 | Level 2 | Level 3 | Fair Value at 12/31/2017 | ||||||||||||
Materials | $ | 0 | $ | 3,164 | $ | 0 | $ | 3,164 | ||||||||
Telecommunication Services | 0 | 3,200 | 0 | 3,200 | ||||||||||||
Preferred Stocks | ||||||||||||||||
Brazil | ||||||||||||||||
Banking & Finance | 2,249 | 0 | 0 | 2,249 | ||||||||||||
Consumer Staples | 0 | 8,806 | 0 | 8,806 | ||||||||||||
Materials | 0 | 14,446 | 0 | 14,446 | ||||||||||||
Utilities | 3,682 | 8,610 | 0 | 12,292 | ||||||||||||
Russia | ||||||||||||||||
Energy | 0 | 8,011 | 0 | 8,011 | ||||||||||||
Real Estate Investment Trusts | ||||||||||||||||
South Africa | ||||||||||||||||
Real Estate | 184 | 0 | 0 | 184 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Total Investments | $ | 412,689 | $ | 1,555,672 | $ | 0 | $ | 1,968,361 | ||||||||
|
|
|
|
|
|
|
|
There were no significant transfers among Levels 1, 2, or 3 during the period ended December 31, 2017.
See Accompanying Notes | SEMIANNUAL REPORT | DECEMBER 31, 2017 | 39 |
Table of Contents
Schedule of Investments PIMCO RAE Fundamental Global Fund
December 31, 2017 (Unaudited)
SHARES | MARKET VALUE (000S) | |||||||||||
INVESTMENTS IN AFFILIATES 99.9% | ||||||||||||
MUTUAL FUNDS (a) 99.9% | ||||||||||||
UNITED STATES 99.9% | ||||||||||||
PIMCO RAE Fundamental Emerging Markets Fund | 4,412,746 | $ | 50,967 | |||||||||
PIMCO RAE Fundamental International Fund | 18,363,804 | 204,573 | ||||||||||
PIMCO RAE Fundamental U.S. Fund | 15,309,548 | 171,008 | ||||||||||
|
| |||||||||||
Total Mutual Funds (Cost $354,094) |
| 426,548 | ||||||||||
|
| |||||||||||
Total Investments in Affiliates (Cost $354,094) | 426,548 | |||||||||||
Total Investments 99.9% (Cost $354,094) | $ | 426,548 | ||||||||||
Other Assets and Liabilities, net 0.1% | 400 | |||||||||||
|
| |||||||||||
Net Assets 100.0% | $ | 426,948 | ||||||||||
|
|
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 December 31, 2017 in valuing the Fund’s assets and liabilities:
Category and Subcategory | Level 1 | Level 2 | Level 3 | Fair Value at 12/31/2017 | ||||||||||||
Investments in Affiliates, at Value | ||||||||||||||||
Mutual Funds | ||||||||||||||||
United States | $ | 426,548 | $ | 0 | $ | 0 | $ | 426,548 | ||||||||
|
|
|
|
|
|
|
| |||||||||
Total Investments | $ | 426,548 | $ | 0 | $ | 0 | $ | 426,548 | ||||||||
|
|
|
|
|
|
|
|
There were no significant transfers among Levels 1, 2, or 3 during the period ended December 31, 2017.
40 | PIMCO EQUITY SERIES | See Accompanying Notes |
Table of Contents
Schedule of Investments PIMCO RAE Fundamental Global ex-US Fund
December 31, 2017 (Unaudited)
SHARES | MARKET VALUE (000S) | |||||||||||
INVESTMENTS IN AFFILIATES 99.6% | ||||||||||||
MUTUAL FUNDS (a) 99.6% | ||||||||||||
UNITED STATES 99.6% | ||||||||||||
PIMCO RAE Fundamental Emerging Markets Fund | 1,523,008 | $ | 17,591 | |||||||||
PIMCO RAE Fundamental International Fund | 6,338,697 | 70,613 | ||||||||||
|
| |||||||||||
Total Mutual Funds (Cost $77,118) | 88,204 | |||||||||||
|
| |||||||||||
Total Investments in Affiliates (Cost $77,118) | 88,204 | |||||||||||
Total Investments 99.6% (Cost $77,118) | $ | 88,204 | ||||||||||
Other Assets and Liabilities, net 0.4% | 311 | |||||||||||
|
| |||||||||||
Net Assets 100.0% | $ | 88,515 | ||||||||||
|
|
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 December 31, 2017 in valuing the Fund’s assets and liabilities:
Category and Subcategory | Level 1 | Level 2 | Level 3 | Fair Value at 12/31/2017 | ||||||||||||
Investments in Securities, at Value | ||||||||||||||||
Mutual Funds | ||||||||||||||||
United States | $ | 88,204 | $ | 0 | $ | 0 | $ | 88,204 | ||||||||
|
|
|
|
|
|
|
| |||||||||
Total Investments | $ | 88,204 | $ | 0 | $ | 0 | $ | 88,204 | ||||||||
|
|
|
|
|
|
|
|
There were no significant transfers among Levels 1, 2, or 3 during the period ended December 31, 2017.
See Accompanying Notes | SEMIANNUAL REPORT | DECEMBER 31, 2017 | 41 |
Table of Contents
Schedule of Investments PIMCO RAE Fundamental International Fund
SHARES | MARKET VALUE (000S) | |||||||||||
INVESTMENTS IN SECURITIES 100.7% | ||||||||||||
COMMON STOCKS 99.6% | ||||||||||||
AUSTRALIA 7.3% | ||||||||||||
CONSUMER DISCRETIONARY 0.2% | ||||||||||||
Automotive Holdings Group Ltd. | 32,213 | $ | 91 | |||||||||
Crown Resorts Ltd. | 9,745 | 99 | ||||||||||
JB Hi-Fi Ltd. | 5,967 | 116 | ||||||||||
Myer Holdings Ltd. | 209,163 | 108 | ||||||||||
Star Entertainment Grp Ltd. | 22,826 | 108 | ||||||||||
Tabcorp Holdings Ltd. | 122,452 | 531 | ||||||||||
|
| |||||||||||
1,053 | ||||||||||||
|
| |||||||||||
CONSUMER STAPLES 0.8% | ||||||||||||
Coca-Cola Amatil Ltd. | 37,299 | 247 | ||||||||||
Metcash Ltd. | 181,806 | 441 | ||||||||||
Wesfarmers Ltd. | 44,713 | 1,546 | ||||||||||
Woolworths Ltd. | 93,092 | 1,978 | ||||||||||
|
| |||||||||||
4,212 | ||||||||||||
|
| |||||||||||
ENERGY 0.3% | ||||||||||||
Origin Energy Ltd. | 48,015 | 352 | ||||||||||
Whitehaven Coal Ltd. | 35,130 | 122 | ||||||||||
Woodside Petroleum Ltd. | 9,463 | 243 | ||||||||||
WorleyParsons Ltd. | 61,147 | 682 | ||||||||||
|
| |||||||||||
1,399 | ||||||||||||
|
| |||||||||||
FINANCIALS 2.7% | ||||||||||||
AMP Ltd. | 146,947 | 593 | ||||||||||
Australia & New Zealand Banking Group Ltd. | 127,423 | 2,843 | ||||||||||
Bendigo & Adelaide Bank Ltd. | 40,635 | 369 | ||||||||||
Commonwealth Bank of Australia | 40,642 | 2,536 | ||||||||||
Genworth Mortgage Insurance Australia Ltd. | 88,231 | 206 | ||||||||||
Insurance Australia Group Ltd. | 54,840 | 309 | ||||||||||
Macquarie Group Ltd. | 6,403 | 495 | ||||||||||
National Australia Bank Ltd. | 113,527 | 2,607 | ||||||||||
QBE Insurance Group Ltd. | 31,704 | 263 | ||||||||||
Suncorp Group Ltd. | 130,023 | 1,402 | ||||||||||
Westpac Banking Corp. | 101,653 | 2,473 | ||||||||||
|
| |||||||||||
14,096 | ||||||||||||
|
| |||||||||||
HEALTH CARE 0.1% | ||||||||||||
CSL Ltd. | 1,729 | 190 | ||||||||||
Primary Health Care Ltd. | 95,840 | 270 | ||||||||||
Sonic Healthcare Ltd. | 13,972 | 248 | ||||||||||
|
| |||||||||||
708 | ||||||||||||
|
| |||||||||||
INDUSTRIALS 0.5% | ||||||||||||
Aurizon Holdings Ltd. | 119,907 | 462 | ||||||||||
CIMIC Group Ltd. | 12,025 | 481 | ||||||||||
Cleanaway Waste Management Ltd. | 81,072 | 94 | ||||||||||
Downer EDI Ltd. | 148,815 | 801 | ||||||||||
Qantas Airways Ltd. | 149,924 | 588 | ||||||||||
|
| |||||||||||
2,426 | ||||||||||||
|
| |||||||||||
MATERIALS 2.5% | ||||||||||||
BHP Billiton Ltd. | 295,833 | 6,796 | ||||||||||
BHP Billiton PLC | 238,895 | 4,830 | ||||||||||
CSR Ltd. | 43,724 | 162 |
SHARES | MARKET VALUE (000S) | |||||||||||
Fortescue Metals Group Ltd. | 39,040 | $ | 148 | |||||||||
Incitec Pivot Ltd. | 126,152 | 382 | ||||||||||
Mineral Resources Ltd. | 13,190 | 216 | ||||||||||
Orica Ltd. | 18,867 | 265 | ||||||||||
OZ Minerals Ltd. | 25,344 | 180 | ||||||||||
|
| |||||||||||
12,979 | ||||||||||||
|
| |||||||||||
REAL ESTATE 0.0% | ||||||||||||
Lend Lease Group | 13,932 | 177 | ||||||||||
|
| |||||||||||
TELECOMMUNICATION SERVICES 0.2% | ||||||||||||
Telstra Corp. Ltd. | 374,741 | 1,059 | ||||||||||
|
| |||||||||||
UTILITIES 0.0% | ||||||||||||
AGL Energy Ltd. | 5,776 | 109 | ||||||||||
|
| |||||||||||
Total Australia | 38,218 | |||||||||||
|
| |||||||||||
AUSTRIA 0.8% | ||||||||||||
ENERGY 0.2% | ||||||||||||
OMV AG | 17,520 | 1,111 | ||||||||||
|
| |||||||||||
FINANCIALS 0.5% | ||||||||||||
Erste Group Bank AG | 24,930 | 1,080 | ||||||||||
Raiffeisen Bank International AG (a) | 33,926 | 1,229 | ||||||||||
Vienna Insurance Group AG Wiener Versicherung Gruppe | 8,934 | 276 | ||||||||||
|
| |||||||||||
2,585 | ||||||||||||
|
| |||||||||||
INDUSTRIALS 0.0% | ||||||||||||
Oesterreichische Post AG | 2,010 | 90 | ||||||||||
MATERIALS 0.1% voestalpine AG | 3,008 | 180 | ||||||||||
|
| |||||||||||
Total Austria | 3,966 | |||||||||||
|
| |||||||||||
BELGIUM 0.5% | ||||||||||||
CONSUMER STAPLES 0.1% | ||||||||||||
Anheuser-Busch InBev S.A. NV | 1,969 | 220 | ||||||||||
|
| |||||||||||
FINANCIALS 0.3% | ||||||||||||
Ageas | 23,682 | 1,157 | ||||||||||
KBC Group NV | 7,235 | 616 | ||||||||||
|
| |||||||||||
1,773 | ||||||||||||
|
| |||||||||||
INDUSTRIALS 0.0% | ||||||||||||
bpost S.A. | 6,893 | 210 | ||||||||||
|
| |||||||||||
MATERIALS 0.0% | ||||||||||||
Solvay S.A. | 928 | 129 | ||||||||||
|
| |||||||||||
TELECOMMUNICATION SERVICES 0.1% | ||||||||||||
Proximus S.A. | 11,672 | 383 | ||||||||||
|
| |||||||||||
Total Belgium | 2,715 | |||||||||||
|
| |||||||||||
CANADA 5.6% | ||||||||||||
CONSUMER DISCRETIONARY 0.4% | ||||||||||||
Aimia, Inc. | 37,463 | 111 | ||||||||||
Canadian Tire Corp. Ltd. ‘A’ | 3,305 | 431 | ||||||||||
Hudson’s Bay Co. | 27,360 | 246 | ||||||||||
Magna International, Inc. | 18,381 | 1,042 | ||||||||||
Quebecor, Inc. ‘B’ | 8,074 | 152 |
SHARES | MARKET VALUE (000S) | |||||||||||
Shaw Communications, Inc. ‘B’ | 11,473 | $ | 262 | |||||||||
|
| |||||||||||
2,244 | ||||||||||||
|
| |||||||||||
CONSUMER STAPLES 0.1% | ||||||||||||
Empire Co. Ltd. ‘A’ | 6,597 | 128 | ||||||||||
George Weston Ltd. | 4,145 | 360 | ||||||||||
Loblaw Cos. Ltd. | 1,714 | 93 | ||||||||||
|
| |||||||||||
581 | ||||||||||||
|
| |||||||||||
ENERGY 0.7% | ||||||||||||
Baytex Energy Corp. (a) | 100,022 | 300 | ||||||||||
Bonavista Energy Corp. | 61,130 | 109 | ||||||||||
Canadian Natural Resources Ltd. | 8,895 | 318 | ||||||||||
Cenovus Energy, Inc. | 25,318 | 231 | ||||||||||
Crescent Point Energy Corp. | 14,456 | 110 | ||||||||||
Encana Corp. | 9,092 | 121 | ||||||||||
Enerplus Corp. | 17,168 | 168 | ||||||||||
Husky Energy, Inc. (a) | 32,834 | 464 | ||||||||||
Mullen Group Ltd. | 7,992 | 100 | ||||||||||
Obsidian Energy Ltd. (a) | 141,401 | 176 | ||||||||||
Pengrowth Energy Corp. (a) | 130,604 | 104 | ||||||||||
Suncor Energy, Inc. | 40,841 | 1,499 | ||||||||||
TransCanada Corp. | 2,064 | 101 | ||||||||||
|
| |||||||||||
3,801 | ||||||||||||
|
| |||||||||||
FINANCIALS 2.8% | ||||||||||||
Bank of Montreal | 25,458 | 2,037 | ||||||||||
Bank of Nova Scotia | 32,701 | 2,110 | ||||||||||
Brookfield Asset Management, Inc. ‘A’ | 2,409 | 105 | ||||||||||
Canadian Imperial Bank of Commerce | 17,894 | 1,745 | ||||||||||
Genworth MI Canada, Inc. | 3,599 | 125 | ||||||||||
Home Capital Group, Inc. | 19,669 | 271 | ||||||||||
IGM Financial, Inc. | 6,056 | 213 | ||||||||||
Manulife Financial Corp. | 18,756 | 391 | ||||||||||
National Bank of Canada | 14,478 | 722 | ||||||||||
Onex Corp. | 7,766 | 570 | ||||||||||
Power Corp. of Canada | 27,233 | 701 | ||||||||||
Power Financial Corp. | 10,994 | 302 | ||||||||||
Royal Bank of Canada | 31,018 | 2,533 | ||||||||||
Sun Life Financial, Inc. | 6,014 | 248 | ||||||||||
Thomson Reuters Corp. | 6,661 | 290 | ||||||||||
Toronto-Dominion Bank | 37,224 | 2,181 | ||||||||||
|
| |||||||||||
14,544 | ||||||||||||
|
| |||||||||||
INDUSTRIALS 0.7% | ||||||||||||
Air Canada (a) | 81,710 | 1,682 | ||||||||||
Bombardier, Inc. ‘B’ (a) | 42,992 | 103 | ||||||||||
Canadian National Railway Co. | 7,905 | 652 | ||||||||||
Canadian Pacific Railway Ltd. | 569 | 104 | ||||||||||
Finning International, Inc. | 4,318 | 109 | ||||||||||
Russel Metals, Inc. | 5,372 | 125 | ||||||||||
TFI International, Inc. | 9,905 | 259 | ||||||||||
WestJet Airlines Ltd. | 17,395 | 365 | ||||||||||
|
| |||||||||||
3,399 | ||||||||||||
|
| |||||||||||
MATERIALS 0.5% | ||||||||||||
Agrium, Inc. | 6,667 | 767 | ||||||||||
First Quantum Minerals Ltd. | 11,099 | 155 | ||||||||||
Potash Corp. of Saskatchewan, Inc. | 41,372 | 854 | ||||||||||
Teck Resources Ltd. ‘B’ | 26,717 | 699 | ||||||||||
|
| |||||||||||
2,475 | ||||||||||||
|
|
42 | PIMCO EQUITY SERIES | See Accompanying Notes |
Table of Contents
December 31, 2017 (Unaudited)
SHARES | MARKET VALUE (000S) | |||||||||||
TELECOMMUNICATION SERVICES 0.2% | ||||||||||||
BCE, Inc. | 4,802 | $ | 230 | |||||||||
Rogers Communications, Inc. ‘B’ | 4,567 | 233 | ||||||||||
TELUS Corp. | 12,244 | 464 | ||||||||||
|
| |||||||||||
927 | ||||||||||||
|
| |||||||||||
UTILITIES 0.2% | ||||||||||||
Atco Ltd. ‘I’ | 9,893 | 354 | ||||||||||
Capital Power Corp. | 13,356 | 260 | ||||||||||
Just Energy Group, Inc. | 22,961 | 99 | ||||||||||
Superior Plus Corp. | 13,969 | 132 | ||||||||||
TransAlta Corp. | 45,174 | 268 | ||||||||||
|
| |||||||||||
1,113 | ||||||||||||
|
| |||||||||||
Total Canada | 29,084 | |||||||||||
|
| |||||||||||
DENMARK 0.7% | ||||||||||||
CONSUMER STAPLES 0.1% | ||||||||||||
Carlsberg A/S ‘B’ | 2,850 | 342 | ||||||||||
|
| |||||||||||
FINANCIALS 0.1% | ||||||||||||
Danske Bank A/S | 10,169 | 396 | ||||||||||
|
| |||||||||||
HEALTH CARE 0.1% | ||||||||||||
Novo Nordisk A/S ‘B’ | 4,974 | 267 | ||||||||||
|
| |||||||||||
INDUSTRIALS 0.3% | ||||||||||||
AP Moller - Maersk A/S ‘B’ | 589 | 1,027 | ||||||||||
ISS A/S | 26,644 | 1,031 | ||||||||||
|
| |||||||||||
2,058 | ||||||||||||
|
| |||||||||||
TELECOMMUNICATION SERVICES 0.1% | ||||||||||||
TDC A/S | 142,534 | 876 | ||||||||||
|
| |||||||||||
Total Denmark | 3,939 | |||||||||||
|
| |||||||||||
FINLAND 0.4% | ||||||||||||
CONSUMER STAPLES 0.0% | ||||||||||||
Kesko Oyj ‘B’ | 3,019 | 164 | ||||||||||
|
| |||||||||||
INDUSTRIALS 0.0% | ||||||||||||
Metso Oyj | 2,829 | 96 | ||||||||||
|
| |||||||||||
MATERIALS 0.3% | ||||||||||||
Stora Enso Oyj ‘R’ | 40,359 | 640 | ||||||||||
UPM-Kymmene Oyj | 24,428 | 758 | ||||||||||
|
| |||||||||||
1,398 | ||||||||||||
|
| |||||||||||
UTILITIES 0.1% | ||||||||||||
Fortum Oyj | 22,079 | 437 | ||||||||||
|
| |||||||||||
Total Finland | 2,095 | |||||||||||
|
| |||||||||||
FRANCE 10.9% | ||||||||||||
CONSUMER DISCRETIONARY 1.7% | ||||||||||||
Accor S.A. | 2,130 | 110 | ||||||||||
Christian Dior SE | 2,066 | 754 | ||||||||||
Cie Generale des Etablissements Michelin | 9,957 | 1,424 | ||||||||||
Elior Group S.A. | 8,269 | 171 | ||||||||||
Eutelsat Communications S.A. | 5,361 | 124 |
SHARES | MARKET VALUE (000S) | |||||||||||
Kering | 1,669 | $ | 786 | |||||||||
Lagardere S.C.A. | 24,634 | 789 | ||||||||||
LVMH Moet Hennessy Louis Vuitton SE | 3,186 | 935 | ||||||||||
Peugeot S.A. | 46,599 | 946 | ||||||||||
Publicis Groupe S.A. | 6,157 | 417 | ||||||||||
Renault S.A. | 5,512 | 553 | ||||||||||
Television Francaise | 17,632 | 260 | ||||||||||
Vivendi S.A. | 53,787 | 1,444 | ||||||||||
|
| |||||||||||
8,713 | ||||||||||||
|
| |||||||||||
CONSUMER STAPLES 0.6% | ||||||||||||
Carrefour S.A. | 72,588 | 1,565 | ||||||||||
Casino Guichard Perrachon S.A. | 20,558 | 1,246 | ||||||||||
Danone S.A. | 2,846 | 238 | ||||||||||
Pernod-Ricard S.A. | 1,369 | 217 | ||||||||||
|
| |||||||||||
3,266 | ||||||||||||
|
| |||||||||||
ENERGY 0.4% | ||||||||||||
CGG S.A. (a) | 13,511 | 62 | ||||||||||
Total S.A. | 35,806 | 1,977 | ||||||||||
Vallourec S.A. | 23,138 | 139 | ||||||||||
|
| |||||||||||
2,178 | ||||||||||||
|
| |||||||||||
FINANCIALS 3.1% | ||||||||||||
AXA S.A. | 73,880 | 2,189 | ||||||||||
BNP Paribas S.A. | 79,440 | 5,909 | ||||||||||
CNP Assurances | 15,374 | 355 | ||||||||||
Credit Agricole S.A. | 112,335 | 1,855 | ||||||||||
Eurazeo S.A. | 8,121 | 750 | ||||||||||
Natixis S.A. | 90,969 | 719 | ||||||||||
SCOR SE | 9,683 | 389 | ||||||||||
Societe Generale S.A. | 77,758 | 4,009 | ||||||||||
|
| |||||||||||
16,175 | ||||||||||||
|
| |||||||||||
HEALTH CARE 1.0% | ||||||||||||
Sanofi | 59,258 | 5,102 | ||||||||||
|
| |||||||||||
INDUSTRIALS 2.3% | ||||||||||||
Air France-KLM (a) | 200,456 | 3,256 | ||||||||||
Airbus SE | 2,139 | 213 | ||||||||||
Alstom S.A. | 14,123 | 585 | ||||||||||
Bouygues S.A. | 30,532 | 1,584 | ||||||||||
Cie de Saint-Gobain | 31,827 | 1,752 | ||||||||||
Eiffage S.A. | 7,802 | 854 | ||||||||||
Rexel S.A. | 36,810 | 666 | ||||||||||
Safran S.A. | 2,654 | 274 | ||||||||||
Schneider Electric SE | 10,265 | 870 | ||||||||||
Teleperformance | 1,745 | 250 | ||||||||||
Vinci S.A. | 17,039 | 1,740 | ||||||||||
Zodiac Aerospace | 3,535 | 106 | ||||||||||
|
| |||||||||||
12,150 | ||||||||||||
|
| |||||||||||
INFORMATION TECHNOLOGY 0.1% | ||||||||||||
Atos SE | 4,987 | 725 | ||||||||||
|
| |||||||||||
MATERIALS 0.1% | ||||||||||||
Air Liquide S.A. | 3,276 | 412 | ||||||||||
Arkema S.A. | 1,127 | 137 | ||||||||||
|
| |||||||||||
549 | ||||||||||||
|
|
SHARES | MARKET VALUE (000S) | |||||||||||
REAL ESTATE 0.0% | ||||||||||||
Nexity S.A. | 1,704 | $ | 101 | |||||||||
|
| |||||||||||
TELECOMMUNICATION SERVICES 0.4% | ||||||||||||
Orange S.A. | 117,010 | 2,028 | ||||||||||
|
| |||||||||||
UTILITIES 1.2% | ||||||||||||
Electricite de France S.A. | 149,979 | 1,875 | ||||||||||
Engie S.A. | 211,263 | 3,632 | ||||||||||
Suez | 17,320 | 304 | ||||||||||
Veolia Environnement S.A. | 17,592 | 449 | ||||||||||
|
| |||||||||||
6,260 | ||||||||||||
|
| |||||||||||
Total France | 57,247 | |||||||||||
|
| |||||||||||
GERMANY 9.6% | ||||||||||||
CONSUMER DISCRETIONARY 1.6% | ||||||||||||
adidas AG | 2,924 | 585 | ||||||||||
Axel Springer SE | 1,317 | 103 | ||||||||||
Bayerische Motoren Werke AG | 21,734 | 2,253 | ||||||||||
Ceconomy AG | 56,616 | 854 | ||||||||||
Continental AG | 1,227 | 330 | ||||||||||
Daimler AG | 43,569 | 3,684 | ||||||||||
Hugo Boss AG | 4,462 | 379 | ||||||||||
ProSiebenSat.1 Media SE | 3,226 | 111 | ||||||||||
|
| |||||||||||
8,299 | ||||||||||||
|
| |||||||||||
CONSUMER STAPLES 0.2% | ||||||||||||
METRO AG (a) | 33,111 | 660 | ||||||||||
Suedzucker AG | 13,183 | 285 | ||||||||||
|
| |||||||||||
945 | ||||||||||||
|
| |||||||||||
FINANCIALS 2.0% | ||||||||||||
Commerzbank AG | 190,793 | 2,846 | ||||||||||
Deutsche Bank AG | 225,199 | 4,259 | ||||||||||
Deutsche Pfandbriefbank AG | 30,665 | 490 | ||||||||||
Hannover Rueck SE | 1,825 | 229 | ||||||||||
Muenchener Rueckversicherungs-Gesellschaft AG in Muenchen | 10,812 | 2,335 | ||||||||||
Talanx AG | 11,984 | 488 | ||||||||||
|
| |||||||||||
10,647 | ||||||||||||
|
| |||||||||||
HEALTH CARE 0.7% | ||||||||||||
Bayer AG | 24,087 | 2,993 | ||||||||||
Fresenius Medical Care AG & Co. KGaA | 2,691 | 283 | ||||||||||
Fresenius SE & Co. KGaA | 3,247 | 252 | ||||||||||
|
| |||||||||||
3,528 | ||||||||||||
|
| |||||||||||
INDUSTRIALS 1.9% | ||||||||||||
Bilfinger SE | 9,801 | 464 | ||||||||||
Deutsche Lufthansa AG | 108,374 | 3,980 | ||||||||||
Deutsche Post AG | 52,027 | 2,473 | ||||||||||
Fraport AG Frankfurt Airport Services Worldwide | 2,995 | 329 | ||||||||||
Hapag-Lloyd AG (a) | 3,043 | 122 | ||||||||||
Hochtief AG | 2,239 | 396 | ||||||||||
Rheinmetall AG | 1,605 | 203 | ||||||||||
Siemens AG | 12,459 | 1,725 | ||||||||||
|
| |||||||||||
9,692 | ||||||||||||
|
|
See Accompanying Notes | SEMIANNUAL REPORT | DECEMBER 31, 2017 | 43 |
Table of Contents
Schedule of Investments PIMCO RAE Fundamental International Fund (Cont.)
SHARES | MARKET VALUE (000S) | |||||||||||
INFORMATION TECHNOLOGY 0.1% | ||||||||||||
SAP SE | 6,897 | $ | 772 | |||||||||
|
| |||||||||||
MATERIALS 1.5% | ||||||||||||
BASF SE | 32,946 | 3,612 | ||||||||||
Evonik Industries AG | 13,603 | 511 | ||||||||||
HeidelbergCement AG | 6,011 | 648 | ||||||||||
K+S AG | 25,826 | 641 | ||||||||||
Lanxess AG | 4,906 | 389 | ||||||||||
Linde AG | 4,866 | 1,055 | ||||||||||
Salzgitter AG | 10,242 | 582 | ||||||||||
thyssenkrupp AG | 9,229 | 266 | ||||||||||
|
| |||||||||||
7,704 | ||||||||||||
|
| |||||||||||
TELECOMMUNICATION SERVICES 0.2% | ||||||||||||
Deutsche Telekom AG | 67,972 | 1,201 | ||||||||||
|
| |||||||||||
UTILITIES 1.4% | ||||||||||||
E.ON SE | 190,917 | 2,069 | ||||||||||
Innogy SE | 14,850 | 581 | ||||||||||
RWE AG (a) | 165,249 | 3,363 | ||||||||||
Uniper SE | 40,113 | 1,251 | ||||||||||
|
| |||||||||||
7,264 | ||||||||||||
|
| |||||||||||
Total Germany | 50,052 | |||||||||||
|
| |||||||||||
HONG KONG 1.7% | ||||||||||||
CONSUMER DISCRETIONARY 0.1% | ||||||||||||
Galaxy Entertainment Group Ltd. | 15,000 | 120 | ||||||||||
I-CABLE Communications Ltd. (a) | 100,176 | 3 | ||||||||||
Li & Fung Ltd. | 152,000 | 83 | ||||||||||
Shangri-La Asia Ltd. | 46,000 | 104 | ||||||||||
SJM Holdings Ltd. | 384,000 | 343 | ||||||||||
|
| |||||||||||
653 | ||||||||||||
|
| |||||||||||
FINANCIALS 0.1% | ||||||||||||
Dah Sing Financial Holdings Ltd. | 13,600 | 87 | ||||||||||
Hang Seng Bank Ltd. | 8,900 | 221 | ||||||||||
|
| |||||||||||
308 | ||||||||||||
|
| |||||||||||
INDUSTRIALS 0.2% | ||||||||||||
Cathay Pacific Airways Ltd. | 259,000 | 402 | ||||||||||
MTR Corp. Ltd. | 45,500 | 266 | ||||||||||
Noble Group Ltd. | 188,480 | 28 | ||||||||||
Orient Overseas International Ltd. | 20,000 | 193 | ||||||||||
|
| |||||||||||
889 | ||||||||||||
|
| |||||||||||
INFORMATION TECHNOLOGY 0.1% | ||||||||||||
Kingboard Chemical Holdings Ltd. | 104,500 | 564 | ||||||||||
|
| |||||||||||
MATERIALS 0.0% | ||||||||||||
Nine Dragons Paper Holdings Ltd. | 80,000 | 128 | ||||||||||
|
| |||||||||||
REAL ESTATE 1.1% | ||||||||||||
CK Asset Holdings Ltd. | 12,000 | 105 | ||||||||||
Hang Lung Group Ltd. | 47,000 | 173 | ||||||||||
Hang Lung Properties Ltd. | 83,000 | 202 | ||||||||||
Hongkong Land Holdings Ltd. | 54,000 | 380 | ||||||||||
Hysan Development Co. Ltd. | 55,000 | 292 | ||||||||||
Kerry Properties Ltd. | 104,500 | 469 | ||||||||||
New World Development Co. Ltd. | 491,000 | 736 |
SHARES | MARKET VALUE (000S) | |||||||||||
Shimao Property Holdings Ltd. | 275,000 | $ | 597 | |||||||||
Sino Land Co. Ltd. | 64,000 | 113 | ||||||||||
Sun Hung Kai Properties Ltd. | 47,000 | 782 | ||||||||||
Swire Pacific Ltd. ‘A’ | 79,000 | 731 | ||||||||||
Swire Properties Ltd. | 30,200 | 97 | ||||||||||
Wharf Holdings Ltd. | 75,000 | 259 | ||||||||||
Wharf Real Estate Investment Co. Ltd. (a) | 75,000 | 499 | ||||||||||
Wheelock & Co. Ltd. | 53,000 | 378 | ||||||||||
|
| |||||||||||
5,813 | ||||||||||||
|
| |||||||||||
UTILITIES 0.1% | ||||||||||||
CLP Holdings Ltd. | 36,000 | 368 | ||||||||||
|
| |||||||||||
Total Hong Kong | 8,723 | |||||||||||
|
| |||||||||||
IRELAND 0.4% | ||||||||||||
HEALTH CARE 0.3% | ||||||||||||
Endo International PLC (a) | 53,573 | 415 | ||||||||||
Medtronic PLC | 12,451 | 1,006 | ||||||||||
|
| |||||||||||
1,421 | ||||||||||||
|
| |||||||||||
INDUSTRIALS 0.0% | ||||||||||||
AerCap Holdings NV (a) | 3,855 | 203 | ||||||||||
|
| |||||||||||
MATERIALS 0.1% | ||||||||||||
Smurfit Kappa Group PLC | 16,508 | 558 | ||||||||||
|
| |||||||||||
Total Ireland | 2,182 | |||||||||||
|
| |||||||||||
ISRAEL 0.6% | ||||||||||||
FINANCIALS 0.3% | ||||||||||||
Bank Hapoalim BM | 82,716 | 607 | ||||||||||
Bank Leumi Le-Israel BM | 107,776 | 649 | ||||||||||
Israel Discount Bank Ltd. ‘A’ (a) | 128,545 | 373 | ||||||||||
|
| |||||||||||
1,629 | ||||||||||||
|
| |||||||||||
HEALTH CARE 0.2% | ||||||||||||
Teva Pharmaceutical Industries Ltd. SP - ADR | 62,407 | 1,183 | ||||||||||
|
| |||||||||||
MATERIALS 0.0% | ||||||||||||
Israel Chemicals Ltd. | 62,651 | 254 | ||||||||||
|
| |||||||||||
TELECOMMUNICATION SERVICES 0.1% | ||||||||||||
Bezeq The Israeli Telecommunication Corp. Ltd. | 233,573 | 353 | ||||||||||
|
| |||||||||||
Total Israel | 3,419 | |||||||||||
|
| |||||||||||
ITALY 3.1% | ||||||||||||
CONSUMER DISCRETIONARY 0.0% | ||||||||||||
Mediaset SpA (a) | 32,624 | 126 | ||||||||||
|
| |||||||||||
ENERGY 0.5% | ||||||||||||
Eni SpA | 142,906 | 2,365 | ||||||||||
Saipem SpA (a) | 5,521 | 25 | ||||||||||
Snam SpA | 36,097 | 177 | ||||||||||
|
| |||||||||||
2,567 | ||||||||||||
|
| |||||||||||
FINANCIALS 1.7% | ||||||||||||
Assicurazioni Generali SpA | 89,410 | 1,627 | ||||||||||
BPER Banca | 51,351 | 259 |
SHARES | MARKET VALUE (000S) | |||||||||||
Intesa Sanpaolo SpA | 404,981 | $ | 1,344 | |||||||||
Mediobanca SpA | 23,864 | 270 | ||||||||||
Poste Italiane SpA | 193,452 | 1,457 | ||||||||||
UniCredit SpA | 132,056 | 2,463 | ||||||||||
Unione di Banche Italiane SpA | 250,514 | 1,092 | ||||||||||
Unipol Gruppo SpA | 117,419 | 550 | ||||||||||
UnipolSai Assicurazioni SpA | 61,219 | 143 | ||||||||||
|
| |||||||||||
9,205 | ||||||||||||
|
| |||||||||||
INDUSTRIALS 0.1% | ||||||||||||
Leonardo SpA | 15,886 | 189 | ||||||||||
Societa Iniziative Autostradali e Servizi SpA | 8,221 | 153 | ||||||||||
|
| |||||||||||
342 | ||||||||||||
|
| |||||||||||
TELECOMMUNICATION SERVICES 0.1% | ||||||||||||
Telecom Italia SpA (a) | 538,058 | 465 | ||||||||||
|
| |||||||||||
UTILITIES 0.7% | ||||||||||||
Enel SpA | 564,880 | 3,473 | ||||||||||
|
| |||||||||||
Total Italy | 16,178 | |||||||||||
|
| |||||||||||
JAPAN 24.6% | ||||||||||||
CONSUMER DISCRETIONARY 5.2% | ||||||||||||
Aisin Seiki Co. Ltd. | 8,500 | 476 | ||||||||||
Aoyama Trading Co. Ltd. | 2,800 | 105 | ||||||||||
Benesse Holdings, Inc. | 8,800 | 310 | ||||||||||
Bic Camera, Inc. | 10,200 | 147 | ||||||||||
Bridgestone Corp. | 33,300 | 1,541 | ||||||||||
Canon Marketing Japan, Inc. | 5,500 | 148 | ||||||||||
DCM Holdings Co. Ltd. | 18,100 | 169 | ||||||||||
Denso Corp. | 14,200 | 851 | ||||||||||
EDION Corp. | 19,900 | 231 | ||||||||||
Fuji Media Holdings, Inc. | 15,900 | 250 | ||||||||||
Geo Holdings Corp. | 5,200 | 101 | ||||||||||
H2O Retailing Corp. | 12,900 | 270 | ||||||||||
Honda Motor Co. Ltd. | 92,800 | 3,167 | ||||||||||
Isetan Mitsukoshi Holdings Ltd. ‘L’ | 30,600 | 379 | ||||||||||
Isuzu Motors Ltd. | 23,800 | 397 | ||||||||||
J Front Retailing Co. Ltd. | 10,100 | 190 | ||||||||||
JVC Kenwood Corp. | 78,500 | 269 | ||||||||||
Kohnan Shoji Co. Ltd. | 6,900 | 149 | ||||||||||
KYB Corp. | 2,200 | 128 | ||||||||||
Mazda Motor Corp. | 47,500 | 635 | ||||||||||
Mitsubishi Motors Corp. | 32,700 | 235 | ||||||||||
Nikon Corp. | 22,000 | 443 | ||||||||||
Nissan Motor Co. Ltd. | 196,500 | 1,956 | ||||||||||
NOK Corp. | 4,500 | 105 | ||||||||||
Onward Holdings Co. Ltd. | 25,000 | 216 | ||||||||||
Panasonic Corp. | 160,500 | 2,342 | ||||||||||
Pioneer Corp. (a) | 146,600 | 296 | ||||||||||
Seiko Holdings Corp. | 11,600 | 337 | ||||||||||
Sekisui Chemical Co. Ltd. | 20,300 | 406 | ||||||||||
Sekisui House Ltd. | 17,000 | 307 | ||||||||||
Shimachu Co. Ltd. | 6,600 | 189 | ||||||||||
Skylark Co. Ltd. | 11,900 | 169 | ||||||||||
Sony Corp. | 20,700 | 929 | ||||||||||
Subaru Corp. | 12,000 | 380 | ||||||||||
Sumitomo Electric Industries Ltd. | 43,300 | 730 | ||||||||||
Sumitomo Rubber Industries Ltd. | 27,500 | 510 | ||||||||||
Suzuki Motor Corp. | 21,000 | 1,216 | ||||||||||
Takashimaya Co. Ltd. | 29,000 | 305 | ||||||||||
Tokai Rika Co. Ltd. | 5,000 | 105 |
44 | PIMCO EQUITY SERIES | See Accompanying Notes |
Table of Contents
December 31, 2017 (Unaudited)
SHARES | MARKET VALUE (000S) | |||||||||||
Toyo Tire & Rubber Co. Ltd. | 17,100 | $ | 351 | |||||||||
Toyoda Gosei Co. Ltd. | 8,600 | 218 | ||||||||||
Toyota Industries Corp. | 5,000 | 320 | ||||||||||
Toyota Motor Corp. | 63,200 | 4,028 | ||||||||||
Unipres Corp. | 5,700 | 153 | ||||||||||
Wacoal Holdings Corp. | 4,100 | 129 | ||||||||||
Yamada Denki Co. Ltd. | 20,800 | 115 | ||||||||||
Yamaha Motor Co. Ltd. | 10,300 | 337 | ||||||||||
Yokohama Rubber Co. Ltd. | 17,400 | 425 | ||||||||||
|
| |||||||||||
27,165 | ||||||||||||
|
| |||||||||||
CONSUMER STAPLES 1.2% | ||||||||||||
Aeon Co. Ltd. | 70,847 | 1,195 | ||||||||||
Asahi Group Holdings Ltd. | 13,000 | 645 | ||||||||||
Japan Tobacco, Inc. | 18,056 | 582 | ||||||||||
Kao Corp. | 3,700 | 250 | ||||||||||
Kirin Holdings Co. Ltd. | 56,800 | 1,431 | ||||||||||
Morinaga Milk Industry Co. Ltd. | 6,200 | 281 | ||||||||||
Nippon Suisan Kaisha Ltd. | 19,600 | 103 | ||||||||||
Sapporo Holdings Ltd. | 10,300 | 315 | ||||||||||
Seven & i Holdings Co. Ltd. | 8,700 | 360 | ||||||||||
Shiseido Co. Ltd. | 13,800 | 665 | ||||||||||
Yamazaki Baking Co. Ltd. | 10,500 | 204 | ||||||||||
|
| |||||||||||
6,031 | ||||||||||||
|
| |||||||||||
ENERGY 0.4% | ||||||||||||
Idemitsu Kosan Co. Ltd. | 9,700 | 388 | ||||||||||
Inpex Corp. | 79,300 | 987 | ||||||||||
Japan Petroleum Exploration Co. Ltd. | 6,800 | 180 | ||||||||||
JXTG Holdings, Inc. | 123,350 | 793 | ||||||||||
|
| |||||||||||
2,348 | ||||||||||||
|
| |||||||||||
FINANCIALS 5.1% | ||||||||||||
77 Bank Ltd. | 7,600 | 191 | ||||||||||
Bank of Kyoto Ltd. | 3,200 | 166 | ||||||||||
Chiba Bank Ltd. | 50,000 | 415 | ||||||||||
Chugoku Bank Ltd. | 4,600 | 61 | ||||||||||
Dai-ichi Life Holdings, Inc. | 132,300 | 2,719 | ||||||||||
Daiwa Securities Group, Inc. | 101,000 | 632 | ||||||||||
Fukuoka Financial Group, Inc. | 73,000 | 408 | ||||||||||
Gunma Bank Ltd. | 40,600 | 245 | ||||||||||
Hachijuni Bank Ltd. | 33,200 | 190 | ||||||||||
Hokuhoku Financial Group, Inc. | 18,600 | 290 | ||||||||||
Iyo Bank Ltd. | 24,100 | 192 | ||||||||||
Japan Post Bank Co. Ltd. | 25,400 | 330 | ||||||||||
Japan Post Holdings Co. Ltd. | 59,900 | 686 | ||||||||||
Mitsubishi UFJ Financial Group, Inc. | 633,200 | 4,608 | ||||||||||
Mizuho Financial Group, Inc. | 1,606,300 | 2,904 | ||||||||||
MS&AD Insurance Group Holdings, Inc. | 17,900 | 604 | ||||||||||
Nomura Holdings, Inc. | 118,500 | 695 | ||||||||||
North Pacific Bank Ltd. | 65,100 | 218 | ||||||||||
Ogaki Kyoritsu Bank Ltd. | 3,700 | 93 | ||||||||||
Okasan Securities Group, Inc. | 23,000 | 142 | ||||||||||
ORIX Corp. | 47,900 | 808 | ||||||||||
Resona Holdings, Inc. | 167,800 | 1,000 | ||||||||||
SBI Holdings, Inc. | 28,000 | 583 | ||||||||||
Senshu Ikeda Holdings, Inc. | 25,800 | 95 | ||||||||||
Shinsei Bank Ltd. | 11,500 | 198 | ||||||||||
Shizuoka Bank Ltd. | 21,000 | 216 | ||||||||||
Sompo Holdings, Inc. | 8,700 | 336 | ||||||||||
Sony Financial Holdings, Inc. | 24,100 | 426 |
SHARES | MARKET VALUE (000S) | |||||||||||
Sumitomo Mitsui Financial Group, Inc. | 94,400 | $ | 4,069 | |||||||||
Sumitomo Mitsui Trust Holdings, Inc. | 23,600 | 934 | ||||||||||
T&D Holdings, Inc. | 66,800 | 1,140 | ||||||||||
Tokio Marine Holdings, Inc. | 13,900 | 632 | ||||||||||
Yamaguchi Financial Group, Inc. | 15,000 | 178 | ||||||||||
|
| |||||||||||
26,404 | ||||||||||||
|
| |||||||||||
HEALTH CARE 0.7% | ||||||||||||
Astellas Pharma, Inc. | 54,500 | 692 | ||||||||||
Daiichi Sankyo Co. Ltd. | 24,116 | 627 | ||||||||||
Hoya Corp. | 7,200 | 359 | ||||||||||
Medipal Holdings Corp. | 5,300 | 104 | ||||||||||
Nipro Corp. | 7,100 | 105 | ||||||||||
Otsuka Holdings Co. Ltd. | 5,428 | 238 | ||||||||||
Rohto Pharmaceutical Co. Ltd. | 4,000 | 106 | ||||||||||
Suzuken Co. Ltd. | 4,800 | 197 | ||||||||||
Takeda Pharmaceutical Co. Ltd. | 22,700 | 1,285 | ||||||||||
Toho Holdings Co. Ltd. | 5,600 | 126 | ||||||||||
|
| |||||||||||
3,839 | ||||||||||||
|
| |||||||||||
INDUSTRIALS 4.6% | ||||||||||||
ANA Holdings, Inc. | 14,100 | 588 | ||||||||||
Asahi Glass Co. Ltd. | 18,500 | 800 | ||||||||||
Central Japan Railway Co. | 1,900 | 340 | ||||||||||
Dai Nippon Printing Co. Ltd. | 25,300 | 563 | ||||||||||
Daikin Industries Ltd. | 800 | 95 | ||||||||||
Duskin Co. Ltd. | 3,800 | 100 | ||||||||||
East Japan Railway Co. | 10,500 | 1,024 | ||||||||||
Ebara Corp. | 2,300 | 87 | ||||||||||
Fuji Electric Co. Ltd. | 33,000 | 248 | ||||||||||
Fujikura Ltd. | 42,300 | 372 | ||||||||||
Furukawa Electric Co. Ltd. | 7,300 | 359 | ||||||||||
Hanwa Co. Ltd. | 2,200 | 102 | ||||||||||
Hino Motors Ltd. | 8,100 | 105 | ||||||||||
Hitachi Construction Machinery Co. Ltd. | 12,600 | 457 | ||||||||||
Hitachi Zosen Corp. | 24,600 | 129 | ||||||||||
IHI Corp. | 9,000 | 298 | ||||||||||
ITOCHU Corp. | 55,500 | 1,035 | ||||||||||
Iwatani Corp. | 5,200 | 167 | ||||||||||
Japan Airlines Co. Ltd. | 20,400 | 797 | ||||||||||
JTEKT Corp. | 13,900 | 238 | ||||||||||
Kanematsu Corp. | 21,900 | 302 | ||||||||||
Kawasaki Heavy Industries Ltd. | 11,400 | 399 | ||||||||||
Kawasaki Kisen Kaisha Ltd. | 4,000 | 102 | ||||||||||
Komatsu Ltd. | 24,100 | 871 | ||||||||||
Kubota Corp. | 9,100 | 178 | ||||||||||
LIXIL Group Corp. | 6,200 | 167 | ||||||||||
Marubeni Corp. | 107,800 | 779 | ||||||||||
Mitsubishi Corp. | 35,500 | 979 | ||||||||||
Mitsubishi Electric Corp. | 62,800 | 1,041 | ||||||||||
Mitsubishi Heavy Industries Ltd. | 29,900 | 1,115 | ||||||||||
Mitsui & Co. Ltd. | 91,400 | 1,483 | ||||||||||
Mitsui Engineering & Shipbuilding Co. Ltd. | 15,400 | 230 | ||||||||||
Mitsui OSK Lines Ltd. | 11,000 | 366 | ||||||||||
Nippon Express Co. Ltd. | 3,000 | 199 | ||||||||||
Nippon Sheet Glass Co. Ltd. (a) | 50,900 | 461 | ||||||||||
Nippon Yusen KK | 38,900 | 946 | ||||||||||
Nisshinbo Holdings, Inc. | 16,700 | 226 | ||||||||||
NSK Ltd. | 22,700 | 356 | ||||||||||
NTN Corp. | 61,200 | 302 |
SHARES | MARKET VALUE (000S) | |||||||||||
Recruit Holdings Co. Ltd. | 10,700 | $ | 266 | |||||||||
Sojitz Corp. | 110,000 | 337 | ||||||||||
Sumitomo Corp. | 101,400 | 1,720 | ||||||||||
Sumitomo Heavy Industries Ltd. | 10,400 | 438 | ||||||||||
Tobu Railway Co. Ltd. | 3,300 | 106 | ||||||||||
Toppan Printing Co. Ltd. | 42,000 | 379 | ||||||||||
Toshiba Corp. (a) | 423,000 | 1,190 | ||||||||||
Toyota Tsusho Corp. | 21,400 | 860 | ||||||||||
West Japan Railway Co. | 6,300 | 460 | ||||||||||
|
| |||||||||||
24,162 | ||||||||||||
|
| |||||||||||
INFORMATION TECHNOLOGY 3.6% | ||||||||||||
Anritsu Corp. | 10,400 | 117 | ||||||||||
Brother Industries Ltd. | 7,300 | 179 | ||||||||||
Canon, Inc. | 66,750 | 2,487 | ||||||||||
Citizen Watch Co. Ltd. | 31,100 | 228 | ||||||||||
FUJIFILM Holdings Corp. | 26,700 | 1,090 | ||||||||||
Fujitsu Ltd. | 267,000 | 1,893 | ||||||||||
Gree, Inc. | 38,500 | 241 | ||||||||||
GungHo Online Entertainment, Inc. | 36,100 | 99 | ||||||||||
Hitachi Ltd. | 604,000 | 4,686 | ||||||||||
Ibiden Co. Ltd. | 25,200 | 376 | ||||||||||
Japan Display, Inc. (a) | 187,000 | 377 | ||||||||||
Konica Minolta, Inc. | 80,600 | 773 | ||||||||||
Kyocera Corp. | 7,400 | 483 | ||||||||||
NEC Corp. | 44,000 | 1,185 | ||||||||||
Nippon Electric Glass Co. Ltd. | 15,600 | 594 | ||||||||||
Oki Electric Industry Co. Ltd. | 16,600 | 232 | ||||||||||
Omron Corp. | 5,600 | 333 | ||||||||||
Ricoh Co. Ltd. | 138,500 | 1,283 | ||||||||||
Rohm Co. Ltd. | 3,500 | 386 | ||||||||||
Seiko Epson Corp. | 16,600 | 391 | ||||||||||
Taiyo Yuden Co. Ltd. | 13,900 | 215 | ||||||||||
TDK Corp. | 4,600 | 366 | ||||||||||
Tokyo Electron Ltd. | 1,000 | 180 | ||||||||||
Toshiba TEC Corp. | 30,000 | 189 | ||||||||||
Yokogawa Electric Corp. | 9,300 | 178 | ||||||||||
|
| |||||||||||
18,561 | ||||||||||||
|
| |||||||||||
MATERIALS 1.8% | ||||||||||||
Asahi Kasei Corp. | 46,200 | 595 | ||||||||||
Denka Co. Ltd. | 7,200 | 287 | ||||||||||
DIC Corp. | 10,100 | 380 | ||||||||||
JFE Holdings, Inc. | 36,800 | 879 | ||||||||||
Kaneka Corp. | 19,000 | 173 | ||||||||||
Kobe Steel Ltd. | 54,400 | 502 | ||||||||||
Kuraray Co. Ltd. | 15,900 | 299 | ||||||||||
Mitsubishi Chemical Holdings Corp. | 61,700 | 675 | ||||||||||
Mitsubishi Gas Chemical Co., Inc. | 7,600 | 218 | ||||||||||
Mitsubishi Materials Corp. | 12,100 | 429 | ||||||||||
Mitsui Chemicals, Inc. | 9,000 | 289 | ||||||||||
Mitsui Mining & Smelting Co. Ltd. | 3,100 | 180 | ||||||||||
Nippon Light Metal Holdings Co. Ltd. | 36,300 | 103 | ||||||||||
Nippon Paper Industries Co. Ltd. | 23,518 | 446 | ||||||||||
Nippon Steel & Sumitomo Metal Corp. | 5,400 | 138 | ||||||||||
Nitto Denko Corp. | 1,000 | 89 | ||||||||||
Oji Holdings Corp. | 87,000 | 578 | ||||||||||
Shin-Etsu Chemical Co. Ltd. | 2,200 | 223 | ||||||||||
Showa Denko KK | 22,800 | 970 | ||||||||||
Sumitomo Chemical Co. Ltd. | 136,000 | 973 | ||||||||||
Taiheiyo Cement Corp. | 3,600 | 155 |
See Accompanying Notes | SEMIANNUAL REPORT | DECEMBER 31, 2017 | 45 |
Table of Contents
Schedule of Investments PIMCO RAE Fundamental International Fund (Cont.)
SHARES | MARKET VALUE (000S) | |||||||||||
Teijin Ltd. | 9,000 | $ | 200 | |||||||||
Tokuyama Corp. | 5,500 | 179 | ||||||||||
Tosoh Corp. | 12,500 | 282 | ||||||||||
Ube Industries Ltd. | 11,500 | 337 | ||||||||||
|
| |||||||||||
9,579 | ||||||||||||
|
| |||||||||||
REAL ESTATE 0.1% | ||||||||||||
Daiwa House Industry Co. Ltd. | 7,700 | 295 | ||||||||||
Nomura Real Estate Holdings, Inc. | 11,400 | 255 | ||||||||||
Tokyu Fudosan Holdings Corp. | 17,900 | 129 | ||||||||||
|
| |||||||||||
679 | ||||||||||||
|
| |||||||||||
TELECOMMUNICATION SERVICES 0.8% | ||||||||||||
KDDI Corp. | 6,400 | 159 | ||||||||||
Nippon Telegraph & Telephone Corp. | 48,000 | 2,257 | ||||||||||
NTT DOCOMO, Inc. | 16,600 | 392 | ||||||||||
SoftBank Group Corp. | 15,900 | 1,259 | ||||||||||
|
| |||||||||||
4,067 | ||||||||||||
|
| |||||||||||
UTILITIES 1.1% | ||||||||||||
Chubu Electric Power Co., Inc. | 74,400 | 923 | ||||||||||
Chugoku Electric Power Co., Inc. | 29,100 | 313 | ||||||||||
Electric Power Development Co. Ltd. | 12,500 | 336 | ||||||||||
Hokuriku Electric Power Co. | 50,688 | 408 | ||||||||||
Kansai Electric Power Co., Inc. | 72,200 | 883 | ||||||||||
Kyushu Electric Power Co., Inc. | 9,100 | 95 | ||||||||||
Osaka Gas Co. Ltd. | 5,400 | 104 | ||||||||||
Shikoku Electric Power Co., Inc. | 7,800 | 85 | ||||||||||
Tohoku Electric Power Co., Inc. | 38,700 | 494 | ||||||||||
Tokyo Electric Power Co. Holdings, Inc. (a) | 424,700 | 1,676 | ||||||||||
Tokyo Gas Co. Ltd. | 10,200 | 233 | ||||||||||
|
| |||||||||||
5,550 | ||||||||||||
|
| |||||||||||
Total Japan | 128,385 | |||||||||||
|
| |||||||||||
LUXEMBOURG 0.2% | ||||||||||||
CONSUMER DISCRETIONARY 0.1% | ||||||||||||
RTL Group S.A. | 3,893 | 312 | ||||||||||
|
| |||||||||||
MATERIALS 0.1% | ||||||||||||
ArcelorMittal | 15,644 | 508 | ||||||||||
|
| |||||||||||
Total Luxembourg | 820 | |||||||||||
|
| |||||||||||
MACAU 0.1% | ||||||||||||
CONSUMER DISCRETIONARY 0.1% | ||||||||||||
Sands China Ltd. | 20,000 | 103 | ||||||||||
Wynn Macau Ltd. | 113,600 | 359 | ||||||||||
|
| |||||||||||
462 | ||||||||||||
|
| |||||||||||
Total Macau | 462 | |||||||||||
|
| |||||||||||
NETHERLANDS 3.4% | ||||||||||||
CONSUMER STAPLES 0.4% | ||||||||||||
Heineken Holding NV | 4,985 | 493 | ||||||||||
Koninklijke Ahold Delhaize NV | 69,607 | 1,530 | ||||||||||
|
| |||||||||||
2,023 | ||||||||||||
|
| |||||||||||
SHARES | MARKET VALUE (000S) | |||||||||||
ENERGY 1.2% | ||||||||||||
Fugro NV (a) | 14,654 | $ | 228 | |||||||||
Royal Dutch Shell PLC ‘A’ | 180,124 | 6,003 | ||||||||||
|
| |||||||||||
6,231 | ||||||||||||
|
| |||||||||||
FINANCIALS 1.0% | ||||||||||||
ABN AMRO Group NV | 14,636 | 472 | ||||||||||
Aegon NV | 211,215 | 1,342 | ||||||||||
ASR Nederland NV | 19,588 | 806 | ||||||||||
ING Groep NV - Dutch Certificate | 107,335 | 1,970 | ||||||||||
NN Group NV | 12,475 | 540 | ||||||||||
|
| |||||||||||
5,130 | ||||||||||||
|
| |||||||||||
HEALTH CARE 0.3% | ||||||||||||
Koninklijke Philips NV | 46,383 | 1,752 | ||||||||||
|
| |||||||||||
INDUSTRIALS 0.2% | ||||||||||||
Philips Lighting NV | 15,602 | 572 | ||||||||||
PostNL NV | 51,203 | 250 | ||||||||||
Randstad Holding NV | 1,639 | 101 | ||||||||||
Wolters Kluwer NV | 3,578 | 186 | ||||||||||
|
| |||||||||||
1,109 | ||||||||||||
|
| |||||||||||
MATERIALS 0.2% | ||||||||||||
Akzo Nobel NV | 6,024 | 529 | ||||||||||
Koninklijke DSM NV | 3,834 | 366 | ||||||||||
|
| |||||||||||
895 | ||||||||||||
|
| |||||||||||
TELECOMMUNICATION SERVICES 0.1% | ||||||||||||
Koninklijke KPN NV | 62,197 | 217 | ||||||||||
VEON Ltd. ADR | 167,215 | 642 | ||||||||||
|
| |||||||||||
859 | ||||||||||||
|
| |||||||||||
Total Netherlands | 17,999 | |||||||||||
|
| |||||||||||
NEW ZEALAND 0.2% | ||||||||||||
CONSUMER STAPLES 0.0% | ||||||||||||
Fonterra Co-operative Group Ltd. | 26,900 | 122 | ||||||||||
|
| |||||||||||
MATERIALS 0.1% | ||||||||||||
Fletcher Building Ltd. | 60,639 | 326 | ||||||||||
|
| |||||||||||
TELECOMMUNICATION SERVICES 0.1% | ||||||||||||
Spark New Zealand Ltd. | 131,255 | 338 | ||||||||||
|
| |||||||||||
UTILITIES 0.0% | ||||||||||||
Contact Energy Ltd. | 24,542 | 97 | ||||||||||
|
| |||||||||||
Total New Zealand | 883 | |||||||||||
|
| |||||||||||
NORWAY 0.9% | ||||||||||||
CONSUMER STAPLES 0.0% | ||||||||||||
Marine Harvest ASA | 8,870 | 150 | ||||||||||
|
| |||||||||||
ENERGY 0.4% | ||||||||||||
Statoil ASA | 94,049 | 2,013 | ||||||||||
|
| |||||||||||
FINANCIALS 0.2% | ||||||||||||
DNB ASA | 45,857 | 849 | ||||||||||
|
| |||||||||||
SHARES | MARKET VALUE (000S) | |||||||||||
MATERIALS 0.2% | ||||||||||||
Norsk Hydro ASA | 44,417 | $ | 337 | |||||||||
Yara International ASA | 12,565 | 577 | ||||||||||
|
| |||||||||||
914 | ||||||||||||
|
| |||||||||||
TELECOMMUNICATION SERVICES 0.1% | ||||||||||||
Telenor ASA | 28,119 | 602 | ||||||||||
|
| |||||||||||
Total Norway | 4,528 | |||||||||||
|
| |||||||||||
PORTUGAL 0.2% | ||||||||||||
CONSUMER STAPLES 0.0% | ||||||||||||
Sonae SGPS S.A. | 94,053 | 127 | ||||||||||
|
| |||||||||||
FINANCIALS 0.0% | ||||||||||||
Banco Espirito Santo S.A. « | 59,573 | 1 | ||||||||||
|
| |||||||||||
MATERIALS 0.1% | ||||||||||||
Navigator Co. S.A. | 40,819 | 208 | ||||||||||
|
| |||||||||||
UTILITIES 0.1% | ||||||||||||
EDP - Energias de Portugal S.A. | 203,772 | 705 | ||||||||||
|
| |||||||||||
Total Portugal | 1,041 | |||||||||||
|
| |||||||||||
SINGAPORE 1.1% | ||||||||||||
CONSUMER DISCRETIONARY 0.0% | ||||||||||||
Singapore Press Holdings Ltd. | 89,600 | 177 | ||||||||||
|
| |||||||||||
FINANCIALS 0.6% | ||||||||||||
DBS Group Holdings Ltd. | 68,310 | 1,264 | ||||||||||
Oversea-Chinese Banking Corp. Ltd. | 102,100 | 943 | ||||||||||
United Overseas Bank Ltd. | 47,300 | 932 | ||||||||||
|
| |||||||||||
3,139 | ||||||||||||
|
| |||||||||||
INDUSTRIALS 0.3% | ||||||||||||
ComfortDelGro Corp. Ltd. | 67,200 | 99 | ||||||||||
Hutchison Port Holdings Trust | 220,700 | 92 | ||||||||||
Keppel Corp. Ltd. | 157,200 | 860 | ||||||||||
Singapore Airlines Ltd. | 50,067 | 399 | ||||||||||
|
| |||||||||||
1,450 | ||||||||||||
|
| |||||||||||
INFORMATION TECHNOLOGY 0.1% | ||||||||||||
Venture Corp. Ltd. | 26,400 | 403 | ||||||||||
|
| |||||||||||
REAL ESTATE 0.1% | ||||||||||||
CapitaLand Ltd. | 73,400 | 193 | ||||||||||
City Developments Ltd. | 11,200 | 104 | ||||||||||
UOL Group Ltd. | 20,700 | 137 | ||||||||||
Yanlord Land Group Ltd. | 60,000 | 73 | ||||||||||
|
| |||||||||||
507 | ||||||||||||
|
| |||||||||||
TELECOMMUNICATION SERVICES 0.0% | ||||||||||||
Singapore Telecommunications Ltd. | 49,600 | 132 | ||||||||||
|
| |||||||||||
Total Singapore | 5,808 | |||||||||||
|
| |||||||||||
SOUTH AFRICA 0.1% | ||||||||||||
FINANCIALS 0.1% | ||||||||||||
Investec PLC | 47,027 | 339 | ||||||||||
|
| |||||||||||
46 | PIMCO EQUITY SERIES | See Accompanying Notes |
Table of Contents
December 31, 2017 (Unaudited)
SHARES | MARKET VALUE (000S) | |||||||||||
MATERIALS 0.0% | ||||||||||||
Mondi PLC | 8,776 | $ | 228 | |||||||||
|
| |||||||||||
Total South Africa | 567 | |||||||||||
|
| |||||||||||
SPAIN 4.0% | ||||||||||||
CONSUMER STAPLES 0.0% | ||||||||||||
Distribuidora Internacional de Alimentacion S.A. | 24,881 | 128 | ||||||||||
|
| |||||||||||
ENERGY 0.1% | ||||||||||||
Repsol S.A. | 22,714 | 401 | ||||||||||
|
| |||||||||||
FINANCIALS 2.3% | ||||||||||||
Banco Bilbao Vizcaya Argentaria S.A. | 135,184 | 1,149 | ||||||||||
Banco de Sabadell S.A. | 136,598 | 271 | ||||||||||
Banco Santander S.A. | 1,428,108 | 9,363 | ||||||||||
CaixaBank S.A. | 158,421 | 736 | ||||||||||
Mapfre S.A. | 165,486 | 531 | ||||||||||
|
| |||||||||||
12,050 | ||||||||||||
|
| |||||||||||
INDUSTRIALS 0.5% | ||||||||||||
Abengoa S.A. ‘B’ (a) | 226,011 | 3 | ||||||||||
Abertis Infraestructuras S.A. | 23,163 | 515 | ||||||||||
ACS Actividades de Construccion y Servicios S.A. | 33,082 | 1,292 | ||||||||||
Ferrovial S.A. | 8,848 | 201 | ||||||||||
Obrascon Huarte Lain S.A. (a) | 104,685 | 625 | ||||||||||
|
| |||||||||||
2,636 | ||||||||||||
|
| |||||||||||
TELECOMMUNICATION SERVICES 0.5% | ||||||||||||
Telefonica S.A. | 282,929 | 2,755 | ||||||||||
|
| |||||||||||
UTILITIES 0.6% | ||||||||||||
Acciona S.A. | 3,899 | 318 | ||||||||||
Endesa S.A. | 57,146 | 1,222 | ||||||||||
Gas Natural SDG S.A. | 23,525 | 543 | ||||||||||
Iberdrola S.A. | 124,292 | 962 | ||||||||||
|
| |||||||||||
3,045 | ||||||||||||
|
| |||||||||||
Total Spain | 21,015 | |||||||||||
|
| |||||||||||
SWEDEN 1.8% | ||||||||||||
CONSUMER DISCRETIONARY 0.1% | ||||||||||||
Electrolux AB ‘B’ | 3,746 | 121 | ||||||||||
Hennes & Mauritz AB ‘B’ | 9,738 | 201 | ||||||||||
|
| |||||||||||
322 | ||||||||||||
|
| |||||||||||
CONSUMER STAPLES 0.1% | ||||||||||||
Essity AB ‘B’ (a) | 6,433 | 183 | ||||||||||
Swedish Match AB | 3,658 | 144 | ||||||||||
|
| |||||||||||
327 | ||||||||||||
|
| |||||||||||
FINANCIALS 0.7% | ||||||||||||
Nordea Bank AB | 144,077 | 1,744 | ||||||||||
Ratos AB ‘B’ | 36,740 | 161 | ||||||||||
Skandinaviska Enskilda Banken AB ‘A’ | 55,526 | 652 | ||||||||||
Svenska Handelsbanken AB ‘A’ | 9,516 | 130 | ||||||||||
Swedbank AB ‘A’ | 29,723 | 717 | ||||||||||
|
| |||||||||||
3,404 | ||||||||||||
|
|
SHARES | MARKET VALUE (000S) | |||||||||||
HEALTH CARE 0.0% | ||||||||||||
Arjo AB ‘B’ (a) | 9,793 | $ | 28 | |||||||||
Getinge AB ‘B’ | 9,793 | 142 | ||||||||||
|
| |||||||||||
170 | ||||||||||||
|
| |||||||||||
INDUSTRIALS 0.4% | ||||||||||||
Atlas Copco AB ‘A’ | 9,570 | 413 | ||||||||||
S.A.S. AB (a) | 61,845 | 160 | ||||||||||
Sandvik AB | 32,604 | 571 | ||||||||||
SKF AB ‘B’ | 4,457 | 99 | ||||||||||
Volvo AB ‘B’ | 52,443 | 977 | ||||||||||
|
| |||||||||||
2,220 | ||||||||||||
|
| |||||||||||
INFORMATION TECHNOLOGY 0.2% | ||||||||||||
Telefonaktiebolaget LM Ericsson ‘B’ | 180,873 | 1,193 | ||||||||||
|
| |||||||||||
MATERIALS 0.0% | ||||||||||||
SSAB AB ‘A’ (a) | 21,935 | 120 | ||||||||||
|
| |||||||||||
TELECOMMUNICATION SERVICES 0.3% | ||||||||||||
Tele2 AB ‘B’ | 78,741 | 968 | ||||||||||
Telia Co. AB | 145,875 | 650 | ||||||||||
|
| |||||||||||
1,618 | ||||||||||||
|
| |||||||||||
Total Sweden | 9,374 | |||||||||||
|
| |||||||||||
SWITZERLAND 5.3% | ||||||||||||
CONSUMER DISCRETIONARY 0.1% | ||||||||||||
Cie Financiere Richemont S.A. | 1,433 | 130 | ||||||||||
Garmin Ltd. | 3,929 | 234 | ||||||||||
|
| |||||||||||
364 | ||||||||||||
|
| |||||||||||
CONSUMER STAPLES 0.7% | ||||||||||||
Aryzta AG | 6,998 | 277 | ||||||||||
Nestle S.A. | 42,242 | 3,632 | ||||||||||
|
| |||||||||||
3,909 | ||||||||||||
|
| |||||||||||
ENERGY 0.1% | ||||||||||||
Transocean Ltd. | 46,497 | 497 | ||||||||||
|
| |||||||||||
FINANCIALS 2.1% | ||||||||||||
Baloise Holding AG | 1,814 | 282 | ||||||||||
Credit Suisse Group AG | 130,789 | 2,333 | ||||||||||
Helvetia Holding AG | 260 | 146 | ||||||||||
Swiss Life Holding AG | 3,806 | 1,345 | ||||||||||
Swiss Re AG | 24,042 | 2,248 | ||||||||||
UBS Group AG | 73,043 | 1,342 | ||||||||||
Zurich Insurance Group AG | 10,320 | 3,138 | ||||||||||
|
| |||||||||||
10,834 | ||||||||||||
|
| |||||||||||
HEALTH CARE 1.4% | ||||||||||||
Novartis AG | 46,587 | 3,920 | ||||||||||
Roche Holding AG | 12,674 | 3,205 | ||||||||||
|
| |||||||||||
7,125 | ||||||||||||
|
| |||||||||||
INDUSTRIALS 0.4% | ||||||||||||
ABB Ltd. | 37,674 | 1,009 | ||||||||||
Adecco Group AG | 4,782 | 365 |
SHARES | MARKET VALUE (000S) | |||||||||||
Ferguson PLC | 7,868 | $ | 565 | |||||||||
|
| |||||||||||
1,939 | ||||||||||||
|
| |||||||||||
INFORMATION TECHNOLOGY 0.2% | ||||||||||||
STMicroelectronics NV | 25,323 | 553 | ||||||||||
TE Connectivity Ltd. | 6,390 | 607 | ||||||||||
|
| |||||||||||
1,160 | ||||||||||||
|
| |||||||||||
MATERIALS 0.3% | ||||||||||||
Glencore PLC | 283,406 | 1,483 | ||||||||||
LafargeHolcim Ltd. | 2,255 | 127 | ||||||||||
|
| |||||||||||
1,610 | ||||||||||||
|
| |||||||||||
TELECOMMUNICATION SERVICES 0.0% | ||||||||||||
Swisscom AG | 407 | 217 | ||||||||||
|
| |||||||||||
Total Switzerland | 27,655 | |||||||||||
|
| |||||||||||
UNITED KINGDOM 15.9% | ||||||||||||
CONSUMER DISCRETIONARY 1.9% | ||||||||||||
Barratt Developments PLC | 12,094 | 106 | ||||||||||
Berkeley Group Holdings PLC | 3,520 | 199 | ||||||||||
Burberry Group PLC | 8,962 | 216 | ||||||||||
Compass Group PLC | 35,152 | 758 | ||||||||||
Fiat Chrysler Automobiles NV | 173,807 | 3,101 | ||||||||||
GKN PLC | 60,462 | 260 | ||||||||||
Inchcape PLC | 13,153 | 139 | ||||||||||
InterContinental Hotels Group PLC | 4,107 | 261 | ||||||||||
ITV PLC | 51,291 | 115 | ||||||||||
Kingfisher PLC | 198,557 | 905 | ||||||||||
Marks & Spencer Group PLC | 220,103 | 934 | ||||||||||
Next PLC | 8,708 | 531 | ||||||||||
Pearson PLC | 82,604 | 818 | ||||||||||
Thomas Cook Group PLC | 297,206 | 493 | ||||||||||
William Hill PLC | 52,001 | 226 | ||||||||||
WPP PLC | 45,134 | 815 | ||||||||||
|
| |||||||||||
9,877 | ||||||||||||
|
| |||||||||||
CONSUMER STAPLES 1.7% | ||||||||||||
British American Tobacco PLC | 16,755 | 1,133 | ||||||||||
Diageo PLC | 12,100 | 443 | ||||||||||
Imperial Brands PLC | 16,362 | 698 | ||||||||||
J Sainsbury PLC | 276,767 | 901 | ||||||||||
Reckitt Benckiser Group PLC | 3,305 | 308 | ||||||||||
Tesco PLC | 200,912 | 568 | ||||||||||
Unilever NV | 32,086 | 1,807 | ||||||||||
Unilever PLC | 35,883 | 1,990 | ||||||||||
Wm Morrison Supermarkets PLC | 276,674 | 821 | ||||||||||
|
| |||||||||||
8,669 | ||||||||||||
|
| |||||||||||
ENERGY 1.4% | ||||||||||||
BP PLC | 977,519 | 6,858 | ||||||||||
Subsea 7 S.A. | 12,649 | 189 | ||||||||||
|
| |||||||||||
7,047 | ||||||||||||
|
| |||||||||||
FINANCIALS 6.1% | ||||||||||||
3i Group PLC | 12,796 | 157 | ||||||||||
Aviva PLC | 153,545 | 1,047 | ||||||||||
Barclays PLC | 1,993,517 | 5,457 | ||||||||||
CYBG PLC (a) | 73,183 | 335 | ||||||||||
Direct Line Insurance Group PLC | 138,313 | 712 |
See Accompanying Notes | SEMIANNUAL REPORT | DECEMBER 31, 2017 | 47 |
Table of Contents
Schedule of Investments PIMCO RAE Fundamental International Fund (Cont.)
SHARES | MARKET VALUE (000S) | |||||||||||
HSBC Holdings PLC | 1,377,510 | $ | 14,227 | |||||||||
Intermediate Capital Group PLC | 9,973 | 154 | ||||||||||
Legal & General Group PLC | 72,125 | 266 | ||||||||||
Lloyds Banking Group PLC | 1,988,210 | 1,823 | ||||||||||
Man Group PLC | 129,598 | 361 | ||||||||||
NEX Group PLC | 20,161 | 165 | ||||||||||
Old Mutual PLC | 619,501 | 1,938 | ||||||||||
Provident Financial PLC | 8,926 | 108 | ||||||||||
Royal Bank of Scotland Group PLC (a) | 498,877 | 1,871 | ||||||||||
Standard Chartered PLC (a) | 261,211 | 2,743 | ||||||||||
Standard Life Aberdeen PLC | 81,724 | 481 | ||||||||||
|
| |||||||||||
31,845 | ||||||||||||
|
| |||||||||||
HEALTH CARE 0.7% | ||||||||||||
AstraZeneca PLC | 28,614 | 1,975 | ||||||||||
GlaxoSmithKline PLC | 106,739 | 1,890 | ||||||||||
|
| |||||||||||
3,865 | ||||||||||||
|
| |||||||||||
INDUSTRIALS 1.5% | ||||||||||||
Aggreko PLC | 16,953 | 182 | ||||||||||
Ashtead Group PLC | 3,594 | 96 | ||||||||||
BAE Systems PLC | 121,983 | 942 | ||||||||||
Capita PLC | 16,168 | 87 | ||||||||||
CNH Industrial NV | 32,955 | 441 | ||||||||||
easyJet PLC | 27,636 | 546 | ||||||||||
Firstgroup PLC (a) | 178,831 | 266 | ||||||||||
G4S PLC | 75,545 | 272 | ||||||||||
International Consolidated Airlines Group S.A. | 59,952 | 525 | ||||||||||
National Express Group PLC | 34,433 | 177 | ||||||||||
RELX NV | 16,481 | 379 | ||||||||||
RELX PLC | 18,844 | 442 | ||||||||||
Rolls-Royce Holdings PLC | 113,381 | 1,294 | ||||||||||
Royal Mail PLC | 248,397 | 1,518 | ||||||||||
Smiths Group PLC | 11,554 | 232 | ||||||||||
Stagecoach Group PLC | 115,807 | 258 | ||||||||||
Travis Perkins PLC | 9,666 | 205 | ||||||||||
Weir Group PLC | 4,685 | 134 | ||||||||||
|
| |||||||||||
7,996 | ||||||||||||
|
| |||||||||||
MATERIALS 1.5% | ||||||||||||
Anglo American PLC | 47,366 | 985 | ||||||||||
Rio Tinto Ltd. | 54,437 | 3,201 | ||||||||||
Rio Tinto PLC | 65,393 | 3,430 | ||||||||||
|
| |||||||||||
7,616 | ||||||||||||
|
| |||||||||||
TELECOMMUNICATION SERVICES 0.5% | ||||||||||||
BT Group PLC | 53,072 | 195 | ||||||||||
Inmarsat PLC | 19,232 | 127 |
SHARES | MARKET VALUE (000S) | |||||||||||
TalkTalk Telecom Group PLC | 54,432 | $ | 112 | |||||||||
Vodafone Group PLC | 705,177 | 2,229 | ||||||||||
|
| |||||||||||
2,663 | ||||||||||||
|
| |||||||||||
UTILITIES 0.6% | ||||||||||||
Centrica PLC | 532,193 | 987 | ||||||||||
Drax Group PLC | 64,978 | 237 | ||||||||||
National Grid PLC | 98,335 | 1,159 | ||||||||||
Severn Trent PLC | 8,498 | 248 | ||||||||||
SSE PLC | 27,510 | 489 | ||||||||||
United Utilities Group PLC | 18,519 | 207 | ||||||||||
|
| |||||||||||
3,327 | ||||||||||||
|
| |||||||||||
Total United Kingdom | 82,905 | |||||||||||
|
| |||||||||||
UNITED STATES 0.2% | ||||||||||||
CONSUMER DISCRETIONARY 0.2% | ||||||||||||
Adient PLC | 1,273 | 100 | ||||||||||
Carnival PLC | 15,677 | 1,032 | ||||||||||
|
| |||||||||||
1,132 | ||||||||||||
|
| |||||||||||
Total United States | 1,132 | |||||||||||
|
| |||||||||||
Total Common Stocks (Cost $413,586) |
| 520,392 | ||||||||||
|
| |||||||||||
PREFERRED STOCKS 0.6% | ||||||||||||
GERMANY 0.6% | ||||||||||||
CONSUMER DISCRETIONARY 0.6% | ||||||||||||
Volkswagen AG | 16,248 | 3,227 | ||||||||||
|
| |||||||||||
CONSUMER STAPLES 0.0% | ||||||||||||
Henkel AG & Co. KGaA | 1,039 | 137 | ||||||||||
|
| |||||||||||
Total Preferred Stocks (Cost $2,390) | 3,364 | |||||||||||
|
| |||||||||||
REAL ESTATE INVESTMENT TRUSTS 0.5% | ||||||||||||
AUSTRALIA 0.1% | ||||||||||||
REAL ESTATE 0.1% | ||||||||||||
Mirvac Group | 83,445 | 153 | ||||||||||
Stockland | 89,767 | 313 | ||||||||||
|
| |||||||||||
466 | ||||||||||||
|
| |||||||||||
Total Australia | 466 | |||||||||||
|
| |||||||||||
CANADA 0.2% | ||||||||||||
REAL ESTATE 0.2% | ||||||||||||
Artis Real Estate Investment Trust | 12,044 | 135 | ||||||||||
Cominar Real Estate Investment Trust | 18,381 | 211 |
SHARES | MARKET VALUE (000S) | |||||||||||
Dream Office Real Estate Investment Trust | 22,815 | $ | 402 | |||||||||
|
| |||||||||||
748 | ||||||||||||
|
| |||||||||||
Total Canada | 748 | |||||||||||
|
| |||||||||||
HONG KONG 0.0% | ||||||||||||
REAL ESTATE 0.0% | ||||||||||||
Link REIT | 23,500 | 217 | ||||||||||
|
| |||||||||||
Total Hong Kong | 217 | |||||||||||
|
| |||||||||||
UNITED KINGDOM 0.2% | ||||||||||||
REAL ESTATE 0.2% | ||||||||||||
British Land Co. PLC | 33,235 | 309 | ||||||||||
Intu Properties PLC | 65,550 | 223 | ||||||||||
Land Securities Group PLC | 26,610 | 362 | ||||||||||
|
| |||||||||||
894 | ||||||||||||
|
| |||||||||||
Total United Kingdom | 894 | |||||||||||
|
| |||||||||||
Total Real Estate Investment Trusts | 2,325 | |||||||||||
|
| |||||||||||
RIGHTS 0.0% | ||||||||||||
AUSTRALIA 0.0% | ||||||||||||
INDUSTRIALS 0.0% | ||||||||||||
Cleanaway Waste Management Ltd. - Exp. 01/19/2018 | 22,211 | 3 | ||||||||||
|
| |||||||||||
Total Australia | 3 | |||||||||||
|
| |||||||||||
SPAIN 0.0% | ||||||||||||
ENERGY 0.0% | ||||||||||||
Repsol S.A. - Exp. 01/10/2018 | 22,714 | 10 | ||||||||||
|
| |||||||||||
Total Spain | 10 | |||||||||||
|
| |||||||||||
Total Rights (Cost $11) | 13 | |||||||||||
|
| |||||||||||
WARRANTS 0.0% | ||||||||||||
SPAIN 0.0% | ||||||||||||
INDUSTRIALS 0.0% | ||||||||||||
Abengoa S.A. ‘B’ - Exp. 03/31/2025 | 226,011 | 3 | ||||||||||
|
| |||||||||||
Total Warrants (Cost $0) | 3 | |||||||||||
|
| |||||||||||
Total Investments in Securities (Cost $418,160) | 526,097 | |||||||||||
Total Investments 100.7% (Cost $418,160) | $ | 526,097 | ||||||||||
Other Assets and Liabilities, net (0.7)% | (3,452 | ) | ||||||||||
|
| |||||||||||
Net Assets 100.0% | $ | 522,645 | ||||||||||
|
|
NOTES TO SCHEDULE OF INVESTMENTS (AMOUNTS IN THOUSANDS*):
* | A zero balance may reflect actual amounts rounding to less than one thousand. |
« | Security valued using significant unobservable inputs (Level 3). |
(a) | Security did not produce income within the last twelve months. |
48 | PIMCO EQUITY SERIES | See Accompanying Notes |
Table of Contents
December 31, 2017 (Unaudited)
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.
The effect of Financial Derivative Instruments on the Statements of Operations for the period ended December 31, 2017:
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 |
| |||||||||||||||||||||||
Forward Foreign Currency Contracts | $ | 0 | $ | 0 | $ | 0 | $ | (12 | ) | $ | 0 | $ | (12 | ) | ||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
FAIR VALUE MEASUREMENTS
The following is a summary of the fair valuations according to the inputs used as of December 31, 2017 in valuing the Fund’s assets and liabilities:
Category and Subcategory | Level 1 | Level 2 | Level 3 | Fair Value at 12/31/2017 | ||||||||||||
Investments in Securities, at Value |
| |||||||||||||||
Common Stocks |
| |||||||||||||||
Australia |
| |||||||||||||||
Consumer Discretionary | $ | 108 | $ | 945 | $ | 0 | $ | 1,053 | ||||||||
Consumer Staples | 0 | 4,212 | 0 | 4,212 | ||||||||||||
Energy | 0 | 1,399 | 0 | 1,399 | ||||||||||||
Financials | 0 | 14,096 | 0 | 14,096 | ||||||||||||
Health Care | 0 | 708 | 0 | 708 | ||||||||||||
Industrials | 0 | 2,426 | 0 | 2,426 | ||||||||||||
Materials | 0 | 12,979 | 0 | 12,979 | ||||||||||||
Real Estate | 0 | 177 | 0 | 177 | ||||||||||||
Telecommunication Services | 0 | 1,059 | 0 | 1,059 | ||||||||||||
Utilities | 0 | 109 | 0 | 109 | ||||||||||||
Austria |
| |||||||||||||||
Energy | 1,111 | 0 | 0 | 1,111 | ||||||||||||
Financials | 1,229 | 1,356 | 0 | 2,585 | ||||||||||||
Industrials | 0 | 90 | 0 | 90 | ||||||||||||
Materials | 0 | 180 | 0 | 180 | ||||||||||||
Belgium |
| |||||||||||||||
Consumer Staples | 0 | 220 | 0 | 220 | ||||||||||||
Financials | 0 | 1,773 | 0 | 1,773 | ||||||||||||
Industrials | 0 | 210 | 0 | 210 | ||||||||||||
Materials | 0 | 129 | 0 | 129 | ||||||||||||
Telecommunication Services | 383 | 0 | 0 | 383 | ||||||||||||
Canada |
| |||||||||||||||
Consumer Discretionary | 2,244 | 0 | 0 | 2,244 | ||||||||||||
Consumer Staples | 581 | 0 | 0 | 581 | ||||||||||||
Energy | 3,801 | 0 | 0 | 3,801 | ||||||||||||
Financials | 14,544 | 0 | 0 | 14,544 | ||||||||||||
Industrials | 3,399 | 0 | 0 | 3,399 | ||||||||||||
Materials | 2,475 | 0 | 0 | 2,475 | ||||||||||||
Telecommunication Services | 927 | 0 | 0 | 927 | ||||||||||||
Utilities | 1,113 | 0 | 0 | 1,113 | ||||||||||||
Denmark |
| |||||||||||||||
Consumer Staples | 0 | 342 | 0 | 342 | ||||||||||||
Financials | 0 | 396 | 0 | 396 | ||||||||||||
Health Care | 0 | 267 | 0 | 267 | ||||||||||||
Industrials | 0 | 2,058 | 0 | 2,058 | ||||||||||||
Telecommunication Services | 876 | 0 | 0 | 876 | ||||||||||||
Finland |
| |||||||||||||||
Consumer Staples | 0 | 164 | 0 | 164 | ||||||||||||
Industrials | 0 | 96 | 0 | 96 | ||||||||||||
Materials | 0 | 1,398 | 0 | 1,398 | ||||||||||||
Utilities | 0 | 437 | 0 | 437 | ||||||||||||
France |
| |||||||||||||||
Consumer Discretionary | 260 | 8,453 | 0 | 8,713 | ||||||||||||
Consumer Staples | 0 | 3,266 | 0 | 3,266 | ||||||||||||
Energy | 62 | 2,116 | 0 | 2,178 | ||||||||||||
Financials | 0 | 16,175 | 0 | 16,175 | ||||||||||||
Health Care | 0 | 5,102 | 0 | 5,102 |
Category and Subcategory | Level 1 | Level 2 | Level 3 | Fair Value at 12/31/2017 | ||||||||||||
Industrials | $ | 0 | $ | 12,150 | $ | 0 | $ | 12,150 | ||||||||
Information Technology | 0 | 725 | 0 | 725 | ||||||||||||
Materials | 137 | 412 | 0 | 549 | ||||||||||||
Real Estate | 0 | 101 | 0 | 101 | ||||||||||||
Telecommunication Services | 0 | 2,028 | 0 | 2,028 | ||||||||||||
Utilities | 1,875 | 4,385 | 0 | 6,260 | ||||||||||||
Germany |
| |||||||||||||||
Consumer Discretionary | 0 | 8,299 | 0 | 8,299 | ||||||||||||
Consumer Staples | 0 | 945 | 0 | 945 | ||||||||||||
Financials | 0 | 10,647 | 0 | 10,647 | ||||||||||||
Health Care | 0 | 3,528 | 0 | 3,528 | ||||||||||||
Industrials | 122 | 9,570 | 0 | 9,692 | ||||||||||||
Information Technology | 0 | 772 | 0 | 772 | ||||||||||||
Materials | 0 | 7,704 | 0 | 7,704 | ||||||||||||
Telecommunication Services | 0 | 1,201 | 0 | 1,201 | ||||||||||||
Utilities | 1,251 | 6,013 | 0 | 7,264 | ||||||||||||
Hong Kong |
| |||||||||||||||
Consumer Discretionary | 3 | 650 | 0 | 653 | ||||||||||||
Financials | 87 | 221 | 0 | 308 | ||||||||||||
Industrials | 0 | 889 | 0 | 889 | ||||||||||||
Information Technology | 0 | 564 | 0 | 564 | ||||||||||||
Materials | 0 | 128 | 0 | 128 | ||||||||||||
Real Estate | 888 | 4,925 | 0 | 5,813 | ||||||||||||
Utilities | 368 | 0 | 0 | 368 | ||||||||||||
Ireland |
| |||||||||||||||
Health Care | 1,421 | 0 | 0 | 1,421 | ||||||||||||
Industrials | 203 | 0 | 0 | 203 | ||||||||||||
Materials | 558 | 0 | 0 | 558 | ||||||||||||
Israel |
| |||||||||||||||
Financials | 0 | 1,629 | 0 | 1,629 | ||||||||||||
Health Care | 1,183 | 0 | 0 | 1,183 | ||||||||||||
Materials | 0 | 254 | 0 | 254 | ||||||||||||
Telecommunication Services | 353 | 0 | 0 | 353 | ||||||||||||
Italy |
| |||||||||||||||
Consumer Discretionary | 126 | 0 | 0 | 126 | ||||||||||||
Energy | 0 | 2,567 | 0 | 2,567 | ||||||||||||
Financials | 1,457 | 7,748 | 0 | 9,205 | ||||||||||||
Industrials | 153 | 189 | 0 | 342 | ||||||||||||
Telecommunication Services | 0 | 465 | 0 | 465 | ||||||||||||
Utilities | 0 | 3,473 | 0 | 3,473 | ||||||||||||
Japan |
| |||||||||||||||
Consumer Discretionary | 0 | 27,165 | 0 | 27,165 | ||||||||||||
Consumer Staples | 281 | 5,750 | 0 | 6,031 | ||||||||||||
Energy | 0 | 2,348 | 0 | 2,348 | ||||||||||||
Financials | 0 | 26,404 | 0 | 26,404 | ||||||||||||
Health Care | 0 | 3,839 | 0 | 3,839 | ||||||||||||
Industrials | 1,190 | 22,972 | 0 | 24,162 | ||||||||||||
Information Technology | 0 | 18,561 | 0 | 18,561 | ||||||||||||
Materials | 0 | 9,579 | 0 | 9,579 | ||||||||||||
Real Estate | 0 | 679 | 0 | 679 |
See Accompanying Notes | SEMIANNUAL REPORT | DECEMBER 31, 2017 | 49 |
Table of Contents
Schedule of Investments PIMCO RAE Fundamental International Fund (Cont.)
December 31, 2017 (Unaudited)
Category and Subcategory | Level 1 | Level 2 | Level 3 | Fair Value at 12/31/2017 | ||||||||||||
Telecommunication Services | $ | 0 | $ | 4,067 | $ | 0 | $ | 4,067 | ||||||||
Utilities | 0 | 5,550 | 0 | 5,550 | ||||||||||||
Luxembourg |
| |||||||||||||||
Consumer Discretionary | 0 | 312 | 0 | 312 | ||||||||||||
Materials | 0 | 508 | 0 | 508 | ||||||||||||
Macau |
| |||||||||||||||
Consumer Discretionary | 0 | 462 | 0 | 462 | ||||||||||||
Netherlands |
| |||||||||||||||
Consumer Staples | 0 | 2,023 | 0 | 2,023 | ||||||||||||
Energy | 0 | 6,231 | 0 | 6,231 | ||||||||||||
Financials | 0 | 5,130 | 0 | 5,130 | ||||||||||||
Health Care | 0 | 1,752 | 0 | 1,752 | ||||||||||||
Industrials | 0 | 1,109 | 0 | 1,109 | ||||||||||||
Materials | 0 | 895 | 0 | 895 | ||||||||||||
Telecommunication Services | 642 | 217 | 0 | 859 | ||||||||||||
New Zealand |
| |||||||||||||||
Consumer Staples | 122 | 0 | 0 | 122 | ||||||||||||
Materials | 0 | 326 | 0 | 326 | ||||||||||||
Telecommunication Services | 338 | 0 | 0 | 338 | ||||||||||||
Utilities | 0 | 97 | 0 | 97 | ||||||||||||
Norway |
| |||||||||||||||
Consumer Staples | 0 | 150 | 0 | 150 | ||||||||||||
Energy | 0 | 2,013 | 0 | 2,013 | ||||||||||||
Financials | 0 | 849 | 0 | 849 | ||||||||||||
Materials | 0 | 914 | 0 | 914 | ||||||||||||
Telecommunication Services | 0 | 602 | 0 | 602 | ||||||||||||
Portugal |
| |||||||||||||||
Consumer Staples | 127 | 0 | 0 | 127 | ||||||||||||
Financials | 0 | 0 | 1 | 1 | ||||||||||||
Materials | 0 | 208 | 0 | 208 | ||||||||||||
Utilities | 705 | 0 | 0 | 705 | ||||||||||||
Singapore |
| |||||||||||||||
Consumer Discretionary | 0 | 177 | 0 | 177 | ||||||||||||
Financials | 0 | 3,139 | 0 | 3,139 | ||||||||||||
Industrials | 0 | 1,450 | 0 | 1,450 | ||||||||||||
Information Technology | 0 | 403 | 0 | 403 | ||||||||||||
Real Estate | 0 | 507 | 0 | 507 | ||||||||||||
Telecommunication Services | 0 | 132 | 0 | 132 | ||||||||||||
South Africa |
| |||||||||||||||
Financials | 0 | 339 | 0 | 339 | ||||||||||||
Materials | 0 | 228 | 0 | 228 | ||||||||||||
Spain |
| |||||||||||||||
Consumer Staples | 0 | 128 | 0 | 128 | ||||||||||||
Energy | 0 | 401 | 0 | 401 | ||||||||||||
Financials | 0 | 12,050 | 0 | 12,050 | ||||||||||||
Industrials | 3 | 2,633 | 0 | 2,636 | ||||||||||||
Telecommunication Services | 0 | 2,755 | 0 | 2,755 | ||||||||||||
Utilities | 0 | 3,045 | 0 | 3,045 | ||||||||||||
Sweden |
| |||||||||||||||
Consumer Discretionary | 0 | 322 | 0 | 322 | ||||||||||||
Consumer Staples | 0 | 327 | 0 | 327 | ||||||||||||
Financials | 161 | 3,243 | 0 | 3,404 |
Category and Subcategory | Level 1 | Level 2 | Level 3 | Fair Value at 12/31/2017 | ||||||||||||
Health Care | $ | 28 | $ | 142 | $ | 0 | $ | 170 | ||||||||
Industrials | 0 | 2,220 | 0 | 2,220 | ||||||||||||
Information Technology | 0 | 1,193 | 0 | 1,193 | ||||||||||||
Materials | 0 | 120 | 0 | 120 | ||||||||||||
Telecommunication Services | 0 | 1,618 | 0 | 1,618 | ||||||||||||
Switzerland |
| |||||||||||||||
Consumer Discretionary | 234 | 130 | 0 | 364 | ||||||||||||
Consumer Staples | 277 | 3,632 | 0 | 3,909 | ||||||||||||
Energy | 497 | 0 | 0 | 497 | ||||||||||||
Financials | 0 | 10,834 | 0 | 10,834 | ||||||||||||
Health Care | 0 | 7,125 | 0 | 7,125 | ||||||||||||
Industrials | 0 | 1,939 | 0 | 1,939 | ||||||||||||
Information Technology | 607 | 553 | 0 | 1,160 | ||||||||||||
Materials | 0 | 1,610 | 0 | 1,610 | ||||||||||||
Telecommunication Services | 0 | 217 | 0 | 217 | ||||||||||||
United Kingdom |
| |||||||||||||||
Consumer Discretionary | 5,039 | 4,838 | 0 | 9,877 | ||||||||||||
Consumer Staples | 1,389 | 7,280 | 0 | 8,669 | ||||||||||||
Energy | 0 | 7,047 | 0 | 7,047 | ||||||||||||
Financials | 2,211 | 29,634 | 0 | 31,845 | ||||||||||||
Health Care | 0 | 3,865 | 0 | 3,865 | ||||||||||||
Industrials | 1,320 | 6,676 | 0 | 7,996 | ||||||||||||
Materials | 0 | 7,616 | 0 | 7,616 | ||||||||||||
Telecommunication Services | 307 | 2,356 | 0 | 2,663 | ||||||||||||
Utilities | 1,194 | 2,133 | 0 | 3,327 | ||||||||||||
United States |
| |||||||||||||||
Consumer Discretionary | 100 | 1,032 | 0 | 1,132 | ||||||||||||
Preferred Stocks |
| |||||||||||||||
Germany |
| |||||||||||||||
Consumer Discretionary | 0 | 3,227 | 0 | 3,227 | ||||||||||||
Consumer Staples | 0 | 137 | 0 | 137 | ||||||||||||
Real Estate Investment Trusts |
| |||||||||||||||
Australia |
| |||||||||||||||
Real Estate | 0 | 466 | 0 | 466 | ||||||||||||
Canada |
| |||||||||||||||
Real Estate | 748 | 0 | 0 | 748 | ||||||||||||
Hong Kong |
| |||||||||||||||
Real Estate | 0 | 217 | 0 | 217 | ||||||||||||
United Kingdom |
| |||||||||||||||
Real Estate | 0 | 894 | 0 | 894 | ||||||||||||
Rights |
| |||||||||||||||
Australia |
| |||||||||||||||
Industrials | 0 | 3 | 0 | 3 | ||||||||||||
Spain |
| |||||||||||||||
Energy | 10 | 0 | 0 | 10 | ||||||||||||
Warrants |
| |||||||||||||||
Spain |
| |||||||||||||||
Industrials | 3 | 0 | 0 | 3 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Total Investments | $ | 60,831 | $ | 465,265 | $ | 1 | $ | 526,097 | ||||||||
|
|
|
|
|
|
|
|
There were no significant transfers among Levels 1, 2, or 3 during the period ended December 31, 2017.
50 | PIMCO EQUITY SERIES | See Accompanying Notes |
Table of Contents
Schedule of Investments PIMCO RAE Fundamental US Fund
December 31, 2017 (Unaudited)
SHARES | MARKET VALUE (000S) | |||||||||||
INVESTMENTS IN SECURITIES 99.5% | ||||||||||||
COMMON STOCKS 99.0% | ||||||||||||
BERMUDA 0.1% | ||||||||||||
FINANCIALS 0.1% | ||||||||||||
XL Group Ltd. | 22,160 | $ | 779 | |||||||||
|
| |||||||||||
Total Bermuda | 779 | |||||||||||
|
| |||||||||||
CANADA 0.0% | ||||||||||||
FINANCIALS 0.0% | ||||||||||||
Thomson Reuters Corp. | 2,611 | 114 | ||||||||||
|
| |||||||||||
Total Canada | 114 | |||||||||||
|
| |||||||||||
IRELAND 0.2% | ||||||||||||
INFORMATION TECHNOLOGY 0.2% | ||||||||||||
Accenture PLC ‘A’ | 9,243 | 1,415 | ||||||||||
|
| |||||||||||
Total Ireland | 1,415 | |||||||||||
|
| |||||||||||
UNITED KINGDOM 0.1% | ||||||||||||
CONSUMER STAPLES 0.1% | ||||||||||||
Avon Products, Inc. (a) | 97,950 | 211 | ||||||||||
|
| |||||||||||
Total United Kingdom | 211 | |||||||||||
|
| |||||||||||
UNITED STATES 98.6% | ||||||||||||
CONSUMER DISCRETIONARY 11.4% | ||||||||||||
Abercrombie & Fitch Co. ‘A’ | 87,636 | 1,527 | ||||||||||
Adient PLC | 1,545 | 122 | ||||||||||
American Eagle Outfitters, Inc. | 21,108 | 397 | ||||||||||
Ascena Retail Group, Inc. (a) | 72,887 | 171 | ||||||||||
Bed Bath & Beyond, Inc. | 83,012 | 1,825 | ||||||||||
Best Buy Co., Inc. | 33,504 | 2,294 | ||||||||||
Big Lots, Inc. | 14,145 | 794 | ||||||||||
Brinker International, Inc. | 13,528 | 525 | ||||||||||
Caesars Entertainment Corp. (a) | 48,872 | 618 | ||||||||||
Carnival Corp. | 20,146 | 1,337 | ||||||||||
CBS Corp. NVDR ‘B’ | 26,727 | 1,577 | ||||||||||
Chico’s FAS, Inc. | 57,321 | 506 | ||||||||||
Comcast Corp. ‘A’ | 119,666 | 4,793 | ||||||||||
Dick’s Sporting Goods, Inc. | 9,603 | 276 | ||||||||||
Dillard’s, Inc. ‘A’ | 16,500 | 991 | ||||||||||
Discovery Communications, Inc. ‘A’ (a) | 18,069 | 404 | ||||||||||
Dollar General Corp. | 2,941 | 273 | ||||||||||
Foot Locker, Inc. | 8,561 | 401 | ||||||||||
Ford Motor Co. | 86,045 | 1,075 | ||||||||||
Fossil Group, Inc. (a) | 55,473 | 431 | ||||||||||
GameStop Corp. ‘A’ | 62,744 | 1,126 | ||||||||||
Gap, Inc. | 66,652 | 2,270 | ||||||||||
General Motors Co. | 68,686 | 2,815 | ||||||||||
Genuine Parts Co. | 2,715 | 258 | ||||||||||
GNC Holdings, Inc. ‘A’ | 95,078 | 351 | ||||||||||
Goodyear Tire & Rubber Co. | 17,348 | 560 | ||||||||||
Graham Holdings Co. ‘B’ | 216 | 121 | ||||||||||
H&R Block, Inc. | 12,747 | 334 | ||||||||||
Harley-Davidson, Inc. | 9,605 | 489 | ||||||||||
Home Depot, Inc. | 25,889 | 4,907 | ||||||||||
HSN, Inc. | 9,674 | 390 | ||||||||||
International Game Technology PLC | 6,550 | 174 | ||||||||||
Interpublic Group of Cos., Inc. | 20,788 | 419 | ||||||||||
JC Penney Co., Inc. (a) | 108,144 | 342 | ||||||||||
Kohl’s Corp. | 70,331 | 3,814 |
SHARES | MARKET VALUE (000S) | |||||||||||
L Brands, Inc. | 7,881 | $ | 475 | |||||||||
Las Vegas Sands Corp. | 3,580 | 249 | ||||||||||
Liberty Interactive Corp. QVC Group ‘A’ (a) | 26,416 | 645 | ||||||||||
Lowe’s Cos., Inc. | 39,906 | 3,709 | ||||||||||
Macy’s, Inc. | 74,340 | 1,873 | ||||||||||
Mattel, Inc. | 18,074 | 278 | ||||||||||
McDonald’s Corp. | 21,226 | 3,653 | ||||||||||
MGM Resorts International | 4,815 | 161 | ||||||||||
NIKE, Inc. ‘B’ | 7,029 | 440 | ||||||||||
Nordstrom, Inc. | 26,987 | 1,279 | ||||||||||
NVR, Inc. (a) | 35 | 123 | ||||||||||
O’Reilly Automotive, Inc. (a) | 554 | 133 | ||||||||||
Office Depot, Inc. | 129,894 | 460 | ||||||||||
Omnicom Group, Inc. | 7,884 | 574 | ||||||||||
PulteGroup, Inc. | 3,589 | 119 | ||||||||||
Ralph Lauren Corp. | 6,034 | 626 | ||||||||||
Regal Entertainment Group ‘A’ | 16,476 | 379 | ||||||||||
Royal Caribbean Cruises Ltd. | 1,952 | 233 | ||||||||||
Sally Beauty Holdings, Inc. (a) | 12,939 | 243 | ||||||||||
Scripps Networks Interactive, Inc. ‘A’ | 2,265 | 193 | ||||||||||
Sears Holdings Corp. (a) | 45,969 | 165 | ||||||||||
Six Flags Entertainment Corp. | 1,863 | 124 | ||||||||||
Tapestry, Inc. | 9,037 | 400 | ||||||||||
Target Corp. | 54,801 | 3,576 | ||||||||||
TEGNA, Inc. | 9,478 | 133 | ||||||||||
Tiffany & Co. | 1,284 | 133 | ||||||||||
Time Warner, Inc. | 35,234 | 3,223 | ||||||||||
TJX Cos., Inc. | 5,454 | 417 | ||||||||||
Tribune Media Co. ‘A’ | 15,873 | 674 | ||||||||||
Tupperware Brands Corp. | 8,217 | 515 | ||||||||||
Twenty-First Century Fox, Inc. ‘A’ | 73,503 | 2,538 | ||||||||||
Urban Outfitters, Inc. (a) | 11,378 | 399 | ||||||||||
Viacom, Inc. ‘B’ | 115,909 | 3,571 | ||||||||||
Visteon Corp. (a) | 4,347 | 544 | ||||||||||
Walt Disney Co. | 25,589 | 2,751 | ||||||||||
Weight Watchers International, Inc. (a) | 22,334 | 989 | ||||||||||
Wendy’s Co. | 34,420 | 565 | ||||||||||
Whirlpool Corp. | 729 | 123 | ||||||||||
Wyndham Worldwide Corp. | 14,333 | 1,661 | ||||||||||
Wynn Resorts Ltd. | 1,496 | 252 | ||||||||||
Yum! Brands, Inc. | 2,962 | 242 | ||||||||||
|
| |||||||||||
77,547 | ||||||||||||
|
| |||||||||||
CONSUMER STAPLES 7.3% | ||||||||||||
Altria Group, Inc. | 23,085 | 1,648 | ||||||||||
Archer-Daniels-Midland Co. | 27,827 | 1,115 | ||||||||||
Bunge Ltd. | 8,171 | 548 | ||||||||||
Clorox Co. | 813 | 121 | ||||||||||
Coca-Cola Co. | 80,614 | 3,699 | ||||||||||
Colgate-Palmolive Co. | 11,742 | 886 | ||||||||||
Costco Wholesale Corp. | 4,187 | 779 | ||||||||||
CVS Health Corp. | 23,268 | 1,687 | ||||||||||
Dr Pepper Snapple Group, Inc. | 6,359 | 617 | ||||||||||
Estee Lauder Cos., Inc. ‘A’ | 956 | 122 | ||||||||||
General Mills, Inc. | 14,879 | 882 | ||||||||||
Herbalife Ltd. (a) | 14,994 | 1,015 | ||||||||||
HRG Group, Inc. (a) | 28,093 | 476 | ||||||||||
JM Smucker Co. | 3,742 | 465 | ||||||||||
Kroger Co. | 131,900 | 3,621 | ||||||||||
Mondelez International, Inc. ‘A’ | 43,737 | 1,872 | ||||||||||
Nu Skin Enterprises, Inc. ‘A’ | 7,559 | 516 | ||||||||||
PepsiCo, Inc. | 41,212 | 4,942 |
SHARES | MARKET VALUE (000S) | |||||||||||
Philip Morris International, Inc. | 46,386 | $ | 4,901 | |||||||||
Procter & Gamble Co. | 85,320 | 7,839 | ||||||||||
Rite Aid Corp. (a) | 257,256 | 507 | ||||||||||
Safeway Casa Ley CVR « | 38,866 | 5 | ||||||||||
Safeway PDC LLC CVR « | 38,866 | 1 | ||||||||||
SUPERVALU, Inc. (a) | 12,307 | 266 | ||||||||||
Sysco Corp. | 3,245 | 197 | ||||||||||
U.S. Foods Holding Corp. (a) | 5,752 | 184 | ||||||||||
Wal-Mart Stores, Inc. | 107,266 | 10,592 | ||||||||||
|
| |||||||||||
49,503 | ||||||||||||
|
| |||||||||||
ENERGY 6.2% | ||||||||||||
Andeavor | 7,926 | 906 | ||||||||||
Apache Corp. | 1,553 | 66 | ||||||||||
Baker Hughes a GE Co. | 5,240 | 166 | ||||||||||
Chesapeake Energy Corp. (a) | 85,258 | 338 | ||||||||||
Chevron Corp. | 63,064 | 7,895 | ||||||||||
CNX Resources Corp. (a) | 8,259 | 121 | ||||||||||
ConocoPhillips | 64,096 | 3,518 | ||||||||||
CONSOL Energy, Inc. (a) | 2,620 | 103 | ||||||||||
CVR Energy, Inc. | 15,246 | 568 | ||||||||||
Devon Energy Corp. | 4,264 | 177 | ||||||||||
Diamond Offshore Drilling, Inc. (a) | 26,674 | 496 | ||||||||||
Exxon Mobil Corp. | 133,853 | 11,195 | ||||||||||
Halliburton Co. | 6,181 | 302 | ||||||||||
Hess Corp. | 17,745 | 842 | ||||||||||
HollyFrontier Corp. | 41,884 | 2,145 | ||||||||||
Kinder Morgan, Inc. | 39,015 | 705 | ||||||||||
Marathon Oil Corp. | 36,772 | 623 | ||||||||||
Marathon Petroleum Corp. | 43,809 | 2,890 | ||||||||||
Murphy Oil Corp. | 14,469 | 449 | ||||||||||
Nabors Industries Ltd. | 69,576 | 475 | ||||||||||
National Oilwell Varco, Inc. | 27,037 | 974 | ||||||||||
Occidental Petroleum Corp. | 18,188 | 1,340 | ||||||||||
Oceaneering International, Inc. | 6,181 | 131 | ||||||||||
ONEOK, Inc. | 2,488 | 133 | ||||||||||
Phillips 66 | 12,074 | 1,221 | ||||||||||
Rowan Cos. PLC ‘A’ (a) | 5,122 | 80 | ||||||||||
Valero Energy Corp. | 38,879 | 3,573 | ||||||||||
Whiting Petroleum Corp. (a) | 3,874 | 103 | ||||||||||
Williams Cos., Inc. | 24,813 | 757 | ||||||||||
|
| |||||||||||
42,292 | ||||||||||||
|
| |||||||||||
FINANCIALS 22.7% | ||||||||||||
Aflac, Inc. | 17,003 | 1,493 | ||||||||||
Allstate Corp. | 28,870 | 3,023 | ||||||||||
Ally Financial, Inc. | 148,621 | 4,334 | ||||||||||
American Express Co. | 56,824 | 5,643 | ||||||||||
American Financial Group, Inc. | 4,101 | 445 | ||||||||||
American International Group, Inc. | 153,902 | 9,169 | ||||||||||
Ameriprise Financial, Inc. | 11,249 | 1,906 | ||||||||||
Assurant, Inc. | 7,647 | 771 | ||||||||||
Bank of America Corp. | 529,213 | 15,622 | ||||||||||
Bank of New York Mellon Corp. | 46,439 | 2,501 | ||||||||||
BB&T Corp. | 21,970 | 1,092 | ||||||||||
Berkshire Hathaway, Inc. ‘B’ (a) | 21,468 | 4,255 | ||||||||||
BlackRock, Inc. | 1,768 | 908 | ||||||||||
Capital One Financial Corp. | 45,517 | 4,533 | ||||||||||
CIT Group, Inc. | 16,837 | 829 | ||||||||||
Citigroup, Inc. | 200,926 | 14,951 | ||||||||||
Citizens Financial Group, Inc. | 44,199 | 1,855 | ||||||||||
CME Group, Inc. | 952 | 139 | ||||||||||
CNO Financial Group, Inc. | 20,539 | 507 | ||||||||||
Comerica, Inc. | 6,248 | 542 |
See Accompanying Notes | SEMIANNUAL REPORT | DECEMBER 31, 2017 | 51 |
Table of Contents
Schedule of Investments PIMCO RAE Fundamental US Fund (Cont.)
SHARES | MARKET VALUE (000S) | |||||||||||
Discover Financial Services | 35,882 | $ | 2,760 | |||||||||
Fifth Third Bancorp | 53,366 | 1,619 | ||||||||||
Franklin Resources, Inc. | 23,740 | 1,029 | ||||||||||
Genworth Financial, Inc. ‘A’ (a) | 241,587 | 751 | ||||||||||
Goldman Sachs Group, Inc. | 15,134 | 3,856 | ||||||||||
Hartford Financial Services Group, Inc. | 31,798 | 1,790 | ||||||||||
Invesco Ltd. | 17,711 | 647 | ||||||||||
JPMorgan Chase & Co. | 183,523 | 19,626 | ||||||||||
KeyCorp | 14,904 | 301 | ||||||||||
Legg Mason, Inc. | 22,025 | 925 | ||||||||||
Leucadia National Corp. | 16,780 | 444 | ||||||||||
Lincoln National Corp. | 14,736 | 1,133 | ||||||||||
Loews Corp. | 22,145 | 1,108 | ||||||||||
LPL Financial Holdings, Inc. | 11,789 | 674 | ||||||||||
M&T Bank Corp. | 703 | 120 | ||||||||||
MetLife, Inc. | 43,387 | 2,194 | ||||||||||
Morgan Stanley | 19,348 | 1,015 | ||||||||||
Navient Corp. | 120,042 | 1,599 | ||||||||||
New York Community Bancorp, Inc. | 15,523 | 202 | ||||||||||
Northern Trust Corp. | 1,226 | 122 | ||||||||||
People’s United Financial, Inc. | 17,842 | 334 | ||||||||||
PHH Corp. (a) | 15,770 | 162 | ||||||||||
PNC Financial Services Group, Inc. | 21,942 | 3,166 | ||||||||||
Principal Financial Group, Inc. | 3,888 | 274 | ||||||||||
Progressive Corp. | 6,330 | 357 | ||||||||||
Prudential Financial, Inc. | 14,809 | 1,703 | ||||||||||
Raymond James Financial, Inc. | 1,533 | 137 | ||||||||||
Regions Financial Corp. | 62,544 | 1,081 | ||||||||||
Reinsurance Group of America, Inc. | 4,165 | 649 | ||||||||||
Santander Consumer USA Holdings, Inc. | 53,518 | 997 | ||||||||||
SLM Corp. (a) | 56,791 | 642 | ||||||||||
State Street Corp. | 21,360 | 2,085 | ||||||||||
SunTrust Banks, Inc. | 26,621 | 1,719 | ||||||||||
Synchrony Financial | 67,954 | 2,624 | ||||||||||
T Rowe Price Group, Inc. | 6,059 | 636 | ||||||||||
Torchmark Corp. | 1,338 | 121 | ||||||||||
Travelers Cos., Inc. | 36,623 | 4,968 | ||||||||||
U.S. Bancorp | 54,370 | 2,913 | ||||||||||
Unum Group | 5,420 | 298 | ||||||||||
Voya Financial, Inc. | 61,357 | 3,035 | ||||||||||
Wells Fargo & Co. | 164,164 | 9,960 | ||||||||||
White Mountains Insurance Group Ltd. | 316 | 269 | ||||||||||
|
| |||||||||||
154,563 | ||||||||||||
|
| |||||||||||
HEALTH CARE 11.8% | ||||||||||||
Abbott Laboratories | 21,083 | 1,203 | ||||||||||
AbbVie, Inc. | 16,617 | 1,607 | ||||||||||
Aetna, Inc. | 18,179 | 3,279 | ||||||||||
Allergan PLC | 2,802 | 458 | ||||||||||
Amgen, Inc. | 21,705 | 3,775 | ||||||||||
Anthem, Inc. | 32,191 | 7,243 | ||||||||||
Becton Dickinson and Co. | 243 | 52 | ||||||||||
Bio-Rad Laboratories, Inc. ‘A’ (a) | 539 | 129 | ||||||||||
Bristol-Myers Squibb Co. | 8,382 | 514 | ||||||||||
Brookdale Senior Living, Inc. (a) | 49,243 | 478 | ||||||||||
Cardinal Health, Inc. | 8,221 | 504 | ||||||||||
Cigna Corp. | 3,120 | 634 | ||||||||||
Community Health Systems, Inc. (a) | 137,800 | 587 | ||||||||||
Eli Lilly & Co. | 19,205 | 1,622 |
SHARES | MARKET VALUE (000S) | |||||||||||
Express Scripts Holding Co. (a) | 49,976 | $ | 3,730 | |||||||||
Gilead Sciences, Inc. | 38,599 | 2,765 | ||||||||||
HCA Healthcare, Inc. (a) | 44,871 | 3,941 | ||||||||||
Humana, Inc. | 5,516 | 1,368 | ||||||||||
Johnson & Johnson | 57,693 | 8,061 | ||||||||||
Kindred Healthcare, Inc. | 44,964 | 436 | ||||||||||
LifePoint Health, Inc. (a) | 16,559 | 825 | ||||||||||
Mallinckrodt PLC (a) | 6,832 | 154 | ||||||||||
McKesson Corp. | 2,483 | 387 | ||||||||||
MEDNAX, Inc. (a) | 2,348 | 125 | ||||||||||
Merck & Co., Inc. | 132,636 | 7,463 | ||||||||||
Mylan NV (a) | 1,858 | 79 | ||||||||||
Patterson Cos., Inc. | 5,384 | 195 | ||||||||||
Pfizer, Inc. | 472,156 | 17,101 | ||||||||||
Quest Diagnostics, Inc. | 11,793 | 1,162 | ||||||||||
Stryker Corp. | 777 | 120 | ||||||||||
Tenet Healthcare Corp. (a) | 97,425 | 1,477 | ||||||||||
UnitedHealth Group, Inc. | 23,020 | 5,075 | ||||||||||
Universal Health Services, Inc. ‘B’ | 4,074 | 462 | ||||||||||
Valeant Pharmaceuticals International, Inc. (a) | 152,830 | 3,176 | ||||||||||
Varian Medical Systems, Inc. (a) | 824 | 92 | ||||||||||
|
| |||||||||||
80,279 | ||||||||||||
|
| |||||||||||
INDUSTRIALS 9.6% | ||||||||||||
3M Co. | 7,634 | 1,797 | ||||||||||
AGCO Corp. | 8,908 | 636 | ||||||||||
American Airlines Group, Inc. | 47,919 | 2,493 | ||||||||||
Avis Budget Group, Inc. (a) | 44,858 | 1,968 | ||||||||||
Boeing Co. | 14,151 | 4,173 | ||||||||||
Caterpillar, Inc. | 34,382 | 5,418 | ||||||||||
Cintas Corp. | 851 | 133 | ||||||||||
CSX Corp. | 48,367 | 2,661 | ||||||||||
Cummins, Inc. | 6,001 | 1,060 | ||||||||||
Deere & Co. | 35,086 | 5,491 | ||||||||||
Delta Air Lines, Inc. | 6,218 | 348 | ||||||||||
Dover Corp. | 6,421 | 649 | ||||||||||
Dun & Bradstreet Corp. | 2,683 | 318 | ||||||||||
Emerson Electric Co. | 43,697 | 3,045 | ||||||||||
FedEx Corp. | 4,882 | 1,218 | ||||||||||
Flowserve Corp. | 7,196 | 303 | ||||||||||
Fluor Corp. | 21,140 | 1,092 | ||||||||||
Fortive Corp. | 1,717 | 124 | ||||||||||
General Dynamics Corp. | 6,264 | 1,274 | ||||||||||
General Electric Co. | 261,772 | 4,568 | ||||||||||
Hertz Global Holdings, Inc. (a) | 91,712 | 2,027 | ||||||||||
Honeywell International, Inc. | 2,818 | 432 | ||||||||||
Illinois Tool Works, Inc. | 9,828 | 1,640 | ||||||||||
Ingersoll-Rand PLC | 764 | 68 | ||||||||||
Jacobs Engineering Group, Inc. | 1,812 | 120 | ||||||||||
Lincoln Electric Holdings, Inc. | 744 | 68 | ||||||||||
Lockheed Martin Corp. | 202 | 65 | ||||||||||
ManpowerGroup, Inc. | 5,779 | 729 | ||||||||||
Norfolk Southern Corp. | 12,242 | 1,774 | ||||||||||
Northrop Grumman Corp. | 9,255 | 2,841 | ||||||||||
Oshkosh Corp. | 2,598 | 236 | ||||||||||
Owens Corning | 1,027 | 94 | ||||||||||
Parker-Hannifin Corp. | 2,737 | 546 | ||||||||||
Pitney Bowes, Inc. | 61,635 | 689 | ||||||||||
Quanta Services, Inc. (a) | 16,875 | 660 | ||||||||||
Raytheon Co. | 5,132 | 964 | ||||||||||
Republic Services, Inc. | 3,375 | 228 | ||||||||||
Robert Half International, Inc. | 4,645 | 258 | ||||||||||
RR Donnelley & Sons Co. | 19,042 | 177 |
SHARES | MARKET VALUE (000S) | |||||||||||
Ryder System, Inc. | 6,821 | $ | 574 | |||||||||
Southwest Airlines Co. | 1,820 | 119 | ||||||||||
Stanley Black & Decker, Inc. | 2,173 | 369 | ||||||||||
Timken Co. | 4,699 | 231 | ||||||||||
Trinity Industries, Inc. | 24,707 | 926 | ||||||||||
Union Pacific Corp. | 30,850 | 4,137 | ||||||||||
United Continental Holdings, Inc. (a) | 11,346 | 765 | ||||||||||
United Rentals, Inc. (a) | 4,043 | 695 | ||||||||||
United Technologies Corp. | 30,966 | 3,950 | ||||||||||
Univar, Inc. (a) | 3,771 | 117 | ||||||||||
Waste Management, Inc. | 5,949 | 513 | ||||||||||
WW Grainger, Inc. | 3,245 | 767 | ||||||||||
|
| |||||||||||
65,548 | ||||||||||||
|
| |||||||||||
INFORMATION TECHNOLOGY 17.9% | ||||||||||||
Activision Blizzard, Inc. | 18,240 | 1,155 | ||||||||||
Alphabet, Inc. ‘C’ (a) | 2,118 | 2,216 | ||||||||||
Amdocs Ltd. | 6,739 | 441 | ||||||||||
Apple, Inc. | 153,909 | 26,046 | ||||||||||
Applied Materials, Inc. | 16,491 | 843 | ||||||||||
Arrow Electronics, Inc. (a) | 8,987 | 723 | ||||||||||
Avnet, Inc. | 19,418 | 769 | ||||||||||
Booz Allen Hamilton Holding Corp. | 23,361 | 891 | ||||||||||
CA, Inc. | 33,827 | 1,126 | ||||||||||
Cisco Systems, Inc. | 140,649 | 5,387 | ||||||||||
Corning, Inc. | 110,000 | 3,519 | ||||||||||
DXC Technology Co. | 7,263 | 689 | ||||||||||
eBay, Inc. (a) | 11,459 | 432 | ||||||||||
EchoStar Corp. ‘A’ (a) | 2,203 | 132 | ||||||||||
F5 Networks, Inc. (a) | 944 | 124 | ||||||||||
First Solar, Inc. (a) | 1,947 | 131 | ||||||||||
Fiserv, Inc. (a) | 910 | 119 | ||||||||||
Flex Ltd. (a) | 12,803 | 230 | ||||||||||
Hewlett Packard Enterprise Co. | 182,808 | 2,625 | ||||||||||
HP, Inc. | 159,609 | 3,353 | ||||||||||
Intel Corp. | 257,003 | 11,863 | ||||||||||
InterActiveCorp (a) | 7,492 | 916 | ||||||||||
International Business Machines Corp. | 87,444 | 13,416 | ||||||||||
Intuit, Inc. | 1,609 | 254 | ||||||||||
Jabil, Inc. | 19,648 | 516 | ||||||||||
Juniper Networks, Inc. | 30,771 | 877 | ||||||||||
Keysight Technologies, Inc. (a) | 2,562 | 107 | ||||||||||
KLA-Tencor Corp. | 8,993 | 945 | ||||||||||
Lam Research Corp. | 644 | 119 | ||||||||||
Leidos Holdings, Inc. | 1,725 | 111 | ||||||||||
Maxim Integrated Products, Inc. | 2,287 | 120 | ||||||||||
Micron Technology, Inc. (a) | 30,702 | 1,262 | ||||||||||
Microsoft Corp. | 140,860 | 12,049 | ||||||||||
Motorola Solutions, Inc. | 18,885 | 1,706 | ||||||||||
NetApp, Inc. | 40,524 | 2,242 | ||||||||||
Oracle Corp. | 141,722 | 6,701 | ||||||||||
Qorvo, Inc. (a) | 10,466 | 697 | ||||||||||
QUALCOMM, Inc. | 60,730 | 3,888 | ||||||||||
Seagate Technology PLC | 94,555 | 3,956 | ||||||||||
Symantec Corp. | 88,224 | 2,476 | ||||||||||
Tech Data Corp. (a) | 4,019 | 394 | ||||||||||
Teradata Corp. (a) | 21,458 | 825 | ||||||||||
Texas Instruments, Inc. | 19,137 | 1,999 | ||||||||||
Visa, Inc. ‘A’ | 1,054 | 120 | ||||||||||
Western Digital Corp. | 18,216 | 1,449 | ||||||||||
Western Union Co. | 54,580 | 1,038 | ||||||||||
Xerox Corp. | 41,416 | 1,207 | ||||||||||
|
| |||||||||||
122,204 | ||||||||||||
|
|
52 | PIMCO EQUITY SERIES | See Accompanying Notes |
Table of Contents
December 31, 2017 (Unaudited)
SHARES | MARKET VALUE (000S) | |||||||||||
MATERIALS 3.6% | ||||||||||||
Alcoa Corp. (a) | 50,962 | $ | 2,745 | |||||||||
Ashland Global Holdings, Inc. | 6,754 | 481 | ||||||||||
Avery Dennison Corp. | 2,019 | 232 | ||||||||||
Bemis Co., Inc. | 1,886 | 90 | ||||||||||
CF Industries Holdings, Inc. | 17,776 | 756 | ||||||||||
Chemours Co. | 6,484 | 325 | ||||||||||
Cleveland-Cliffs, Inc. (a) | 66,741 | 481 | ||||||||||
Domtar Corp. | 23,437 | 1,161 | ||||||||||
DowDuPont, Inc. | 70,744 | 5,038 | ||||||||||
Eastman Chemical Co. | 2,695 | 250 | ||||||||||
Freeport-McMoRan, Inc. (a) | 28,673 | 544 | ||||||||||
Huntsman Corp. | 13,611 | 453 | ||||||||||
International Paper Co. | 17,518 | 1,015 | ||||||||||
LyondellBasell Industries NV ‘A’ | 40,532 | 4,472 | ||||||||||
Monsanto Co. | 17,714 | 2,069 | ||||||||||
Mosaic Co. | 78,236 | 2,008 | ||||||||||
Newmont Mining Corp. | 9,813 | 368 | ||||||||||
Nucor Corp. | 1,465 | 93 | ||||||||||
Owens-Illinois, Inc. (a) | 3,658 | 81 | ||||||||||
Packaging Corp. of America | 666 | 80 | ||||||||||
PPG Industries, Inc. | 6,106 | 713 | ||||||||||
Praxair, Inc. | 4,372 | 676 | ||||||||||
Reliance Steel & Aluminum Co. | 5,609 | 481 | ||||||||||
WestRock Co. | 2,327 | 147 | ||||||||||
|
| |||||||||||
24,759 | ||||||||||||
|
| |||||||||||
REAL ESTATE 0.0% | ||||||||||||
Jones Lang LaSalle, Inc. | 804 | 120 | ||||||||||
|
| |||||||||||
TELECOMMUNICATION SERVICES 3.0% | ||||||||||||
AT&T, Inc. | 183,949 | 7,152 | ||||||||||
CenturyLink, Inc. | 184,244 | 3,073 | ||||||||||
Frontier Communications Corp. | 63,736 | 431 | ||||||||||
Sprint Corp. (a) | 14,475 | 85 | ||||||||||
T-Mobile US, Inc. (a) | 4,636 | 294 |
SHARES | MARKET VALUE (000S) | |||||||||||
Telephone & Data Systems, Inc. | 19,917 | $ | 554 | |||||||||
Verizon Communications, Inc. | 157,321 | 8,327 | ||||||||||
Windstream Holdings, Inc. | 108,220 | 200 | ||||||||||
|
| |||||||||||
20,116 | ||||||||||||
|
| |||||||||||
UTILITIES 5.1% | ||||||||||||
AES Corp. | 178,545 | 1,934 | ||||||||||
Ameren Corp. | 19,444 | 1,147 | ||||||||||
American Electric Power Co., Inc. | 27,555 | 2,027 | ||||||||||
Calpine Corp. (a) | 108,415 | 1,640 | ||||||||||
CenterPoint Energy, Inc. | 38,395 | 1,089 | ||||||||||
CMS Energy Corp. | 5,391 | 255 | ||||||||||
Consolidated Edison, Inc. | 23,317 | 1,981 | ||||||||||
DTE Energy Co. | 4,882 | 534 | ||||||||||
Duke Energy Corp. | 38,909 | 3,273 | ||||||||||
Edison International | 15,068 | 953 | ||||||||||
Entergy Corp. | 35,810 | 2,915 | ||||||||||
Eversource Energy | 5,881 | 371 | ||||||||||
Exelon Corp. | 86,871 | 3,424 | ||||||||||
FirstEnergy Corp. | 94,619 | 2,897 | ||||||||||
Great Plains Energy, Inc. | 7,589 | 245 | ||||||||||
Hawaiian Electric Industries, Inc. | 3,702 | 134 | ||||||||||
MDU Resources Group, Inc. | 26,590 | 715 | ||||||||||
NextEra Energy, Inc. | 1,703 | 266 | ||||||||||
NRG Energy, Inc. | 50,062 | 1,426 | ||||||||||
OGE Energy Corp. | 3,537 | 116 | ||||||||||
PG&E Corp. | 20,487 | 918 | ||||||||||
Pinnacle West Capital Corp. | 7,297 | 621 | ||||||||||
Portland General Electric Co. | 4,576 | 209 | ||||||||||
PPL Corp. | 22,833 | 707 | ||||||||||
Public Service Enterprise Group, Inc. | 34,493 | 1,776 | ||||||||||
SCANA Corp. | 10,936 | 435 | ||||||||||
Sempra Energy | 2,865 | 306 | ||||||||||
Southern Co. | 26,578 | 1,278 | ||||||||||
Vectren Corp. | 1,764 | 115 |
SHARES | MARKET VALUE (000S) | |||||||||||
Xcel Energy, Inc. | 15,944 | $ | 767 | |||||||||
|
| |||||||||||
34,474 | ||||||||||||
|
| |||||||||||
Total United States | 671,405 | |||||||||||
|
| |||||||||||
Total Common Stocks (Cost $495,383) | 673,924 | |||||||||||
|
| |||||||||||
REAL ESTATE INVESTMENT TRUSTS 0.5% | ||||||||||||
UNITED STATES 0.5% | ||||||||||||
FINANCIALS 0.2% | ||||||||||||
AGNC Investment Corp. | 30,331 | 612 | ||||||||||
Annaly Capital Management, Inc. | 86,188 | 1,025 | ||||||||||
Two Harbors Investment Corp. | 15,075 | 245 | ||||||||||
|
| |||||||||||
1,882 | ||||||||||||
|
| |||||||||||
REAL ESTATE 0.3% | ||||||||||||
CoreCivic, Inc. | 16,939 | 381 | ||||||||||
HCP, Inc. | 4,491 | 117 | ||||||||||
Hospitality Properties Trust | 5,320 | 159 | ||||||||||
Iron Mountain, Inc. | 11,312 | 427 | ||||||||||
Macerich Co. | 1,832 | 120 | ||||||||||
Quality Care Properties, Inc. (a) | 32,272 | 446 | ||||||||||
Senior Housing Properties Trust | 11,493 | 220 | ||||||||||
VEREIT, Inc. | 15,170 | 118 | ||||||||||
|
| |||||||||||
1,988 | ||||||||||||
|
| |||||||||||
Total Real Estate Investment Trusts |
| 3,870 | ||||||||||
|
| |||||||||||
Total Investments in Securities (Cost $499,043) | 677,794 | |||||||||||
Total Investments 99.5% (Cost $499,043) | $ | 677,794 | ||||||||||
Other Assets and Liabilities, net 0.5% | 3,128 | |||||||||||
|
| |||||||||||
Net Assets 100.0% | $ | 680,922 | ||||||||||
|
|
NOTES TO SCHEDULE OF INVESTMENTS (AMOUNTS IN THOUSANDS*):
* | A zero balance may reflect actual amounts rounding to less than one thousand. |
« | Security valued using significant unobservable inputs (Level 3). |
(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 December 31, 2017 in valuing the Fund’s assets and liabilities:
Category and Subcategory | Level 1 | Level 2 | Level 3 | Fair Value at 12/31/2017 | ||||||||||||
Investments in Securities, at Value |
| |||||||||||||||
Common Stocks |
| |||||||||||||||
Bermuda | ||||||||||||||||
Financials | $ | 779 | $ | 0 | $ | 0 | $ | 779 | ||||||||
Canada | ||||||||||||||||
Financials | 114 | 0 | 0 | 114 | ||||||||||||
Ireland | ||||||||||||||||
Information Technology | 1,415 | 0 | 0 | 1,415 | ||||||||||||
United Kingdom | ||||||||||||||||
Consumer Staples | 211 | 0 | 0 | 211 | ||||||||||||
United States | ||||||||||||||||
Consumer Discretionary | 77,547 | 0 | 0 | 77,547 | ||||||||||||
Consumer Staples | 49,497 | 0 | 6 | 49,503 | ||||||||||||
Energy | 42,292 | 0 | 0 | 42,292 |
Category and Subcategory | Level 1 | Level 2 | Level 3 | Fair Value at 12/31/2017 | ||||||||||||
Financials | $ | 154,563 | $ | 0 | $ | 0 | $ | 154,563 | ||||||||
Health Care | 80,279 | 0 | 0 | 80,279 | ||||||||||||
Industrials | 65,548 | 0 | 0 | 65,548 | ||||||||||||
Information Technology | 122,204 | 0 | 0 | 122,204 | ||||||||||||
Materials | 24,759 | 0 | 0 | 24,759 | ||||||||||||
Real Estate | 120 | 0 | 0 | 120 | ||||||||||||
Telecommunication Services | 20,116 | 0 | 0 | 20,116 | ||||||||||||
Utilities | 34,474 | 0 | 0 | 34,474 | ||||||||||||
Real Estate Investment Trusts | ||||||||||||||||
United States | ||||||||||||||||
Financials | 1,882 | 0 | 0 | 1,882 | ||||||||||||
Real Estate | 1,988 | 0 | 0 | 1,988 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Total Investments | $ | 677,788 | $ | 0 | $ | 6 | $ | 677,794 | ||||||||
|
|
|
|
|
|
|
|
There were no significant transfers among Levels 1, 2, or 3 during the period ended December 31, 2017.
See Accompanying Notes | SEMIANNUAL REPORT | DECEMBER 31, 2017 | 53 |
Table of Contents
Schedule of Investments PIMCO RAE Fundamental US Small Fund
SHARES | MARKET VALUE (000S) | |||||||||||
INVESTMENTS IN SECURITIES 99.2% | ||||||||||||
COMMON STOCKS 88.3% | ||||||||||||
UNITED KINGDOM 0.2% | ||||||||||||
FINANCIALS 0.2% | ||||||||||||
Janus Henderson Group PLC | 5,521 | $ | 211 | |||||||||
|
| |||||||||||
Total United Kingdom | 211 | |||||||||||
|
| |||||||||||
UNITED STATES 88.1% | ||||||||||||
CONSUMER DISCRETIONARY 19.9% | ||||||||||||
Aaron’s, Inc. | 13,622 | 543 | ||||||||||
Acushnet Holdings Corp. | 2,140 | 45 | ||||||||||
Adtalem Global Education, Inc. | 12,020 | 505 | ||||||||||
AMC Entertainment Holdings, Inc. ‘A’ | 2,988 | 45 | ||||||||||
AMC Networks, Inc. ‘A’ (a) | 440 | 24 | ||||||||||
America’s Car-Mart, Inc. (a) | 1,703 | 76 | ||||||||||
American Axle & Manufacturing Holdings, Inc. (a) | 7,063 | 120 | ||||||||||
American Outdoor Brands Corp. (a) | 5,230 | 67 | ||||||||||
American Public Education, Inc. (a) | 2,846 | 71 | ||||||||||
Asbury Automotive Group, Inc. (a) | 3,990 | 255 | ||||||||||
Ascent Capital Group, Inc. ‘A’ (a) | 3,447 | 40 | ||||||||||
Barnes & Noble Education, Inc. (a) | 9,204 | 76 | ||||||||||
Barnes & Noble, Inc. | 20,486 | 137 | ||||||||||
Bassett Furniture Industries, Inc. | 352 | 13 | ||||||||||
Beazer Homes USA, Inc. (a) | 2,520 | 48 | ||||||||||
Big 5 Sporting Goods Corp. | 6,351 | 48 | ||||||||||
Biglari Holdings, Inc. (a) | 120 | 50 | ||||||||||
BJ’s Restaurants, Inc. | 1,737 | 63 | ||||||||||
Bloomin’ Brands, Inc. | 9,313 | 199 | ||||||||||
Bojangles’, Inc. (a) | 1,569 | 19 | ||||||||||
Boyd Gaming Corp. | 10,512 | 368 | ||||||||||
Bridgepoint Education, Inc. (a) | 5,608 | 47 | ||||||||||
Buckle, Inc. | 10,686 | 254 | ||||||||||
Buffalo Wild Wings, Inc. (a) | 491 | 77 | ||||||||||
Caleres, Inc. | 6,630 | 222 | ||||||||||
Callaway Golf Co. | 4,407 | 61 | ||||||||||
Capella Education Co. | 1,948 | 151 | ||||||||||
Career Education Corp. (a) | 15,829 | 191 | ||||||||||
Carrols Restaurant Group, Inc. (a) | 6,271 | 76 | ||||||||||
Cato Corp. ‘A’ | 7,173 | 114 | ||||||||||
Century Communities, Inc. (a) | 2,206 | 69 | ||||||||||
Cheesecake Factory, Inc. | 3,765 | 181 | ||||||||||
Children’s Place, Inc. | 1,445 | 210 | ||||||||||
Choice Hotels International, Inc. | 1,652 | 128 | ||||||||||
Churchill Downs, Inc. | 367 | 85 | ||||||||||
Citi Trends, Inc. | 1,504 | 40 | ||||||||||
Conn’s, Inc. (a) | 4,916 | 175 | ||||||||||
Container Store Group, Inc. (a) | 5,355 | 25 | ||||||||||
Cooper Tire & Rubber Co. | 6,128 | 217 | ||||||||||
Cooper-Standard Holding, Inc. (a) | 2,259 | 277 | ||||||||||
Core-Mark Holding Co., Inc. | 2,428 | 77 | ||||||||||
Cracker Barrel Old Country Store, Inc. | 242 | 38 | ||||||||||
Crocs, Inc. (a) | 14,490 | 183 | ||||||||||
Dana, Inc. | 14,699 | 471 | ||||||||||
Dave & Buster’s Entertainment, Inc. (a) | 2,580 | 142 | ||||||||||
Deckers Outdoor Corp. (a) | 3,301 | 265 | ||||||||||
Denny’s Corp. (a) | 3,503 | 46 | ||||||||||
DineEquity, Inc. | 2,849 | 145 | ||||||||||
Dorman Products, Inc. (a) | 1,263 | 77 | ||||||||||
Drive Shack, Inc. | 14,940 | 83 | ||||||||||
DSW Inc. ‘A’ | 10,699 | 229 | ||||||||||
Eldorado Resorts, Inc. (a) | 6,226 | 206 |
SHARES | MARKET VALUE (000S) | |||||||||||
Ethan Allen Interiors, Inc. | 2,564 | $ | 73 | |||||||||
Express, Inc. (a) | 30,130 | 306 | ||||||||||
Extended Stay America, Inc. | 3,610 | 69 | ||||||||||
Fiesta Restaurant Group, Inc. (a) | 1,787 | 34 | ||||||||||
Finish Line, Inc. ‘A’ | 15,624 | 227 | ||||||||||
Five Below, Inc. (a) | 1,040 | 69 | ||||||||||
Francesca’s Holdings Corp. (a) | 4,555 | 33 | ||||||||||
Fred’s, Inc. ‘A’ | 14,435 | 58 | ||||||||||
FTD Cos., Inc. (a) | 5,489 | 39 | ||||||||||
G-III Apparel Group Ltd. (a) | 4,730 | 174 | ||||||||||
Gannett Co., Inc. | 35,329 | 409 | ||||||||||
Genesco, Inc. (a) | 10,154 | 330 | ||||||||||
Gentherm, Inc. (a) | 283 | 9 | ||||||||||
GoPro, Inc. ‘A’ (a) | 6,320 | 48 | ||||||||||
Grand Canyon Education, Inc. (a) | 1,395 | 125 | ||||||||||
Gray Television, Inc. (a) | 3,967 | 66 | ||||||||||
Group 1 Automotive, Inc. | 2,997 | 213 | ||||||||||
Groupon, Inc. (a) | 55,824 | 285 | ||||||||||
Guess?, Inc. | 25,077 | 423 | ||||||||||
Hamilton Beach Brands Holding Co. | 1,552 | 40 | ||||||||||
Haverty Furniture Cos., Inc. | 3,320 | 75 | ||||||||||
Helen of Troy Ltd. (a) | 1,777 | 171 | ||||||||||
Hibbett Sports, Inc. (a) | 6,992 | 143 | ||||||||||
Hilton Grand Vacations, Inc. (a) | 3,314 | 139 | ||||||||||
Hooker Furniture Corp. | 665 | 28 | ||||||||||
Houghton Mifflin Harcourt Co. (a) | 9,534 | 89 | ||||||||||
Hovnanian Enterprises, Inc. ‘A’ (a) | 5,883 | 20 | ||||||||||
Iconix Brand Group, Inc. (a) | 28,502 | 37 | ||||||||||
ILG, Inc. | 3,416 | 97 | ||||||||||
International Speedway Corp. ‘A’ | 2,594 | 103 | ||||||||||
iRobot Corp. (a) | 1,563 | 120 | ||||||||||
Jack in the Box, Inc. | 2,175 | 213 | ||||||||||
John Wiley & Sons, Inc. ‘A’ | 4,847 | 319 | ||||||||||
K12, Inc. (a) | 5,119 | 81 | ||||||||||
KB Home | 5,707 | 182 | ||||||||||
Kirkland’s, Inc. (a) | 3,928 | 47 | ||||||||||
La Quinta Holdings, Inc. (a) | 8,695 | 161 | ||||||||||
La-Z-Boy, Inc. | 4,270 | 133 | ||||||||||
Lands’ End, Inc. (a) | 6,371 | 125 | ||||||||||
Laureate Education, Inc. ‘A’ (a) | 5,273 | 72 | ||||||||||
LCI Industries | 1,054 | 137 | ||||||||||
Libbey, Inc. | 6,723 | 51 | ||||||||||
Liberty TripAdvisor Holdings, Inc. ‘A’ (a) | 7,564 | 71 | ||||||||||
Lithia Motors, Inc. ‘A’ | 964 | 109 | ||||||||||
Lumber Liquidators Holdings, Inc. (a) | 4,062 | 128 | ||||||||||
M/I Homes, Inc. (a) | 3,877 | 133 | ||||||||||
Marcus Corp. | 1,776 | 49 | ||||||||||
Marriott Vacations Worldwide Corp. | 2,118 | 286 | ||||||||||
MDC Holdings, Inc. | 2,518 | 80 | ||||||||||
MDC Partners, Inc. ‘A’ (a) | 8,296 | 81 | ||||||||||
Media General, Inc. CVR « | 2,855 | 6 | ||||||||||
Meredith Corp. | 3,957 | 261 | ||||||||||
Meritage Homes Corp. (a) | 2,498 | 128 | ||||||||||
Modine Manufacturing Co. (a) | 2,717 | 55 | ||||||||||
Monro, Inc. | 1,057 | 60 | ||||||||||
Movado Group, Inc. | 2,568 | 83 | ||||||||||
MSG Networks, Inc. ‘A’ (a) | 2,301 | 47 | ||||||||||
Murphy USA, Inc. (a) | 3,046 | 245 | ||||||||||
National CineMedia, Inc. | 15,747 | 108 | ||||||||||
New York Times Co. ‘A’ | 9,757 | 181 | ||||||||||
Nexstar Media Group, Inc. ‘A’ | 1,250 | 98 | ||||||||||
Nutrisystem, Inc. | 1,818 | 96 | ||||||||||
Ollie’s Bargain Outlet Holdings, Inc. (a) | 2,221 | 118 |
SHARES | MARKET VALUE (000S) | |||||||||||
Overstock.com, Inc. (a) | 1,435 | $ | 92 | |||||||||
Oxford Industries, Inc. | 1,173 | 88 | ||||||||||
Papa John’s International, Inc. | 769 | 43 | ||||||||||
Party City Holdco, Inc. (a) | 3,663 | 51 | ||||||||||
Penn National Gaming, Inc. (a) | 13,130 | 411 | ||||||||||
Perry Ellis International, Inc. (a) | 3,276 | 82 | ||||||||||
PetMed Express, Inc. | 1,594 | 73 | ||||||||||
Pier 1 Imports, Inc. | 67,040 | 278 | ||||||||||
Pinnacle Entertainment, Inc. (a) | 20,329 | 665 | ||||||||||
Red Robin Gourmet Burgers, Inc. (a) | 1,502 | 85 | ||||||||||
Red Rock Resorts, Inc. ‘A’ | 3,515 | 119 | ||||||||||
Regis Corp. (a) | 9,870 | 152 | ||||||||||
Rent-A-Center, Inc. | 39,138 | 434 | ||||||||||
RH (a) | 3,001 | 259 | ||||||||||
Ruth’s Hospitality Group, Inc. | 1,555 | 34 | ||||||||||
Scholastic Corp. | 4,280 | 172 | ||||||||||
Scientific Games Corp. ‘A’ (a) | 3,684 | 189 | ||||||||||
SeaWorld Entertainment, Inc. | 20,449 | 277 | ||||||||||
Shoe Carnival, Inc. | 2,274 | 61 | ||||||||||
Shutterfly, Inc. (a) | 2,594 | 129 | ||||||||||
Sinclair Broadcast Group, Inc. ‘A’ | 2,962 | 112 | ||||||||||
Sleep Number Corp. (a) | 5,086 | 191 | ||||||||||
Sonic Automotive, Inc. ‘A’ | 9,784 | 181 | ||||||||||
Sonic Corp. | 3,253 | 89 | ||||||||||
Sotheby’s (a) | 5,933 | 306 | ||||||||||
Sportsman’s Warehouse Holdings, Inc. (a) | 5,134 | 34 | ||||||||||
Standard Motor Products, Inc. | 1,518 | 68 | ||||||||||
Stein Mart, Inc. | 8,668 | 10 | ||||||||||
Steven Madden Ltd. (a) | 2,748 | 128 | ||||||||||
Strayer Education, Inc. | 2,401 | 215 | ||||||||||
Sturm Ruger & Co., Inc. | 1,474 | 82 | ||||||||||
Superior Industries International, Inc. | 2,224 | 33 | ||||||||||
Syneos Health, Inc. (a) | 1,429 | 62 | ||||||||||
Tailored Brands, Inc. | 7,676 | 168 | ||||||||||
Taylor Morrison Home Corp. ‘A’ (a) | 4,642 | 114 | ||||||||||
Tempur Sealy International, Inc. (a) | 1,805 | 113 | ||||||||||
Tenneco, Inc. | 2,263 | 132 | ||||||||||
Texas Roadhouse, Inc. | 1,774 | 93 | ||||||||||
Time, Inc. | 33,476 | 618 | ||||||||||
TopBuild Corp. (a) | 2,254 | 171 | ||||||||||
Tower International, Inc. | 2,079 | 64 | ||||||||||
TravelCenters of America LLC (a) | 9,552 | 39 | ||||||||||
TRI Pointe Group, Inc. (a) | 7,854 | 141 | ||||||||||
tronc, Inc. (a) | 7,196 | 127 | ||||||||||
Tuesday Morning Corp. (a) | 6,030 | 17 | ||||||||||
Universal Electronics, Inc. (a) | 621 | 29 | ||||||||||
Vera Bradley, Inc. (a) | 3,167 | 39 | ||||||||||
Vista Outdoor, Inc. (a) | 4,367 | 64 | ||||||||||
Vitamin Shoppe, Inc. (a) | 8,044 | 35 | ||||||||||
VOXX International Corp. (a) | 2,357 | 13 | ||||||||||
William Lyon Homes ‘A’ (a) | 2,781 | 81 | ||||||||||
Wolverine World Wide, Inc. | 5,562 | 177 | ||||||||||
ZAGG, Inc. (a) | 1,857 | 34 | ||||||||||
Zumiez, Inc. (a) | 4,790 | 100 | ||||||||||
|
| |||||||||||
22,944 | ||||||||||||
|
| |||||||||||
CONSUMER STAPLES 3.6% | ||||||||||||
Andersons, Inc. | 1,996 | 62 | ||||||||||
B&G Foods, Inc. | 2,246 | 79 | ||||||||||
Bob Evans Farms, Inc. | 4,531 | 357 | ||||||||||
Boston Beer Co., Inc. ‘A’ (a) | 270 | 52 | ||||||||||
Cal-Maine Foods, Inc. (a) | 1,530 | 68 | ||||||||||
Central Garden & Pet Co. ‘A’ (a) | 4,987 | 188 |
54 | PIMCO EQUITY SERIES | See Accompanying Notes |
Table of Contents
December 31, 2017 (Unaudited)
SHARES | MARKET VALUE (000S) | |||||||||||
Coca-Cola Bottling Co. Consolidated | 314 | $ | 68 | |||||||||
Darling Ingredients, Inc. (a) | 13,515 | 245 | ||||||||||
Dean Foods Co. | 18,387 | 212 | ||||||||||
Energizer Holdings, Inc. | 3,049 | 146 | ||||||||||
Fresh Del Monte Produce, Inc. | 3,436 | 164 | ||||||||||
Hain Celestial Group, Inc. (a) | 800 | 34 | ||||||||||
Ingles Markets, Inc. ‘A’ | 3,152 | 109 | ||||||||||
Inter Parfums, Inc. | 1,744 | 76 | ||||||||||
J&J Snack Foods Corp. | 476 | 72 | ||||||||||
Medifast, Inc. | 1,298 | 91 | ||||||||||
Performance Food Group Co. (a) | 8,007 | 265 | ||||||||||
PriceSmart, Inc. | 972 | 84 | ||||||||||
Revlon, Inc. ‘A’ (a) | 849 | 18 | ||||||||||
Sanderson Farms, Inc. | 1,313 | 182 | ||||||||||
Seneca Foods Corp. ‘A’ (a) | 589 | 18 | ||||||||||
Smart & Final Stores, Inc. (a) | 6,991 | 60 | ||||||||||
Snyder’s-Lance, Inc. | 1,530 | 77 | ||||||||||
SpartanNash Co. | 5,225 | 139 | ||||||||||
Sprouts Farmers Market, Inc. (a) | 8,242 | 201 | ||||||||||
SUPERVALU, Inc. (a) | 12,623 | 273 | ||||||||||
United Natural Foods, Inc. (a) | 5,622 | 277 | ||||||||||
Universal Corp. | 3,693 | 194 | ||||||||||
USANA Health Sciences, Inc. (a) | 1,077 | 80 | ||||||||||
Vector Group Ltd. | 7,303 | 163 | ||||||||||
Village Super Market, Inc. ‘A’ | 646 | 15 | ||||||||||
WD-40 Co. | 658 | 78 | ||||||||||
Weis Markets, Inc. | 1,655 | 68 | ||||||||||
|
| |||||||||||
4,215 | ||||||||||||
|
| |||||||||||
ENERGY 3.5% | ||||||||||||
Archrock, Inc. | 5,608 | 59 | ||||||||||
Basic Energy Services, Inc. (a) | 2,270 | 53 | ||||||||||
Bill Barrett Corp. (a) | 17,257 | 89 | ||||||||||
Bristow Group, Inc. | 12,352 | 166 | ||||||||||
California Resources Corp. (a) | 13,027 | 253 | ||||||||||
Callon Petroleum Co. (a) | 1,752 | 21 | ||||||||||
CARBO Ceramics, Inc. (a) | 6,601 | 67 | ||||||||||
Carrizo Oil & Gas, Inc. (a) | 1,623 | 35 | ||||||||||
Cloud Peak Energy, Inc. (a) | 57,051 | 254 | ||||||||||
Cobalt International Energy, Inc. (a) | 1 | 0 | ||||||||||
Delek U.S. Holdings, Inc. | 9,708 | 339 | ||||||||||
Denbury Resources, Inc. (a) | 8,155 | 18 | ||||||||||
Dorian LPG Ltd. (a) | 709 | 6 | ||||||||||
Dril-Quip, Inc. (a) | 1,775 | 85 | ||||||||||
Enbridge Energy Management LLC « | 58,437 | 0 | ||||||||||
Enbridge Energy Management LLC (a) | 1 | 0 | ||||||||||
EP Energy Corp. ‘A’ (a) | 4,151 | 10 | ||||||||||
Era Group, Inc. (a) | 3,817 | 41 | ||||||||||
Exterran Corp. (a) | 4,620 | 145 | ||||||||||
Fairmount Santrol Holdings, Inc. (a) | 2,384 | 13 | ||||||||||
Forum Energy Technologies, Inc. (a) | 1,561 | 24 | ||||||||||
Gener8 Maritime, Inc. (a) | 10,970 | 73 | ||||||||||
Geospace Technologies Corp. (a) | 1,639 | 21 | ||||||||||
Green Plains, Inc. | 4,398 | 74 | ||||||||||
Halcon Resources Corp. (a) | 2,645 | 20 | ||||||||||
Helix Energy Solutions Group, Inc. (a) | 4,119 | 31 | ||||||||||
Hornbeck Offshore Services, Inc. (a) | 7,411 | 23 | ||||||||||
International Seaways, Inc. (a) | 6,482 | 120 | ||||||||||
Kosmos Energy Ltd. (a) | 7,579 | 52 | ||||||||||
McDermott International, Inc. (a) | 14,797 | 97 | ||||||||||
NACCO Industries, Inc. ‘A’ | 1,022 | 39 | ||||||||||
Newpark Resources, Inc. (a) | 4,506 | 39 | ||||||||||
Oil States International, Inc. (a) | 3,762 | 107 |
SHARES | MARKET VALUE (000S) | |||||||||||
Overseas Shipholding Group, Inc. ‘A’ (a) | 11,820 | $ | 32 | |||||||||
Parker Drilling Co. (a) | 27,912 | 28 | ||||||||||
PBF Energy, Inc. ‘A’ | 10,639 | 377 | ||||||||||
PDC Energy, Inc. (a) | 682 | 35 | ||||||||||
Peabody Energy Corp. (a) | 5,616 | 221 | ||||||||||
Pioneer Energy Services Corp. (a) | 18,342 | 56 | ||||||||||
Renewable Energy Group, Inc. (a) | 5,914 | 70 | ||||||||||
REX American Resources Corp. (a) | 721 | 60 | ||||||||||
SEACOR Holdings, Inc. | 3,201 | 148 | ||||||||||
SEACOR Marine Holdings, Inc. (a) | 2,342 | 27 | ||||||||||
SemGroup Corp. ‘A’ | 1,532 | 46 | ||||||||||
SM Energy Co. | 4,502 | 99 | ||||||||||
Stone Energy Corp. (a) | 2,468 | 79 | ||||||||||
TETRA Technologies, Inc. (a) | 4,390 | 19 | ||||||||||
Unit Corp. (a) | 4,419 | 97 | ||||||||||
W&T Offshore, Inc. (a) | 28,289 | 94 | ||||||||||
Westmoreland Coal Co. (a) | 2,791 | 3 | ||||||||||
World Fuel Services Corp. | 6,047 | 170 | ||||||||||
|
| |||||||||||
4,035 | ||||||||||||
|
| |||||||||||
FINANCIALS 15.6% | ||||||||||||
Allegiance Bancshares, Inc. (a) | 390 | 15 | ||||||||||
Ambac Financial Group, Inc. (a) | 13,157 | 210 | ||||||||||
American Equity Investment Life Holding Co. | 23,288 | 716 | ||||||||||
Ameris Bancorp | 301 | 14 | ||||||||||
AMERISAFE, Inc. | 468 | 29 | ||||||||||
AmTrust Financial Services, Inc. | 2,108 | 21 | ||||||||||
Arlington Asset Investment Corp. ‘A’ | 3,238 | 38 | ||||||||||
Artisan Partners Asset Management, Inc. ‘A’ | 460 | 18 | ||||||||||
Associated Banc-Corp. | 7,004 | 178 | ||||||||||
Baldwin & Lyons, Inc. ‘B’ | 926 | 22 | ||||||||||
Banc of California, Inc. | 1,693 | 35 | ||||||||||
BancFirst Corp. | 1,239 | 63 | ||||||||||
Bancorp, Inc. (a) | 6,237 | 62 | ||||||||||
BancorpSouth Bank | 3,748 | 118 | ||||||||||
Bank of Hawaii Corp. | 1,433 | 123 | ||||||||||
BankUnited, Inc. | 3,357 | 137 | ||||||||||
Banner Corp. | 943 | 52 | ||||||||||
Beneficial Bancorp, Inc. | 3,480 | 57 | ||||||||||
Berkshire Hills Bancorp, Inc. | 2,089 | 76 | ||||||||||
BGC Partners, Inc. ‘A’ | 22,535 | 340 | ||||||||||
BofI Holding, Inc. (a) | 1,821 | 54 | ||||||||||
Boston Private Financial Holdings, Inc. | 3,609 | 56 | ||||||||||
Brookline Bancorp, Inc. | 6,800 | 107 | ||||||||||
Bryn Mawr Bank Corp. | 668 | 30 | ||||||||||
Camden National Corp. | 1,477 | 62 | ||||||||||
Cannae Holdings, Inc. (a) | 12,383 | 211 | ||||||||||
Capitol Federal Financial, Inc. | 12,969 | 174 | ||||||||||
Cathay General Bancorp | 1,840 | 78 | ||||||||||
CenterState Banks, Inc. | 559 | 14 | ||||||||||
Central Pacific Financial Corp. | 632 | 19 | ||||||||||
Chemical Financial Corp. | 2,879 | 154 | ||||||||||
Citizens & Northern Corp. | 745 | 18 | ||||||||||
City Holding Co. | 1,537 | 104 | ||||||||||
Cohen & Steers, Inc. | 1,212 | 57 | ||||||||||
Columbia Banking System, Inc. | 2,686 | 117 | ||||||||||
Community Bank System, Inc. | 1,548 | 83 | ||||||||||
Community Trust Bancorp, Inc. | 1,975 | 93 | ||||||||||
ConnectOne Bancorp, Inc. | 667 | 17 | ||||||||||
Cowen, Inc. (a) | 7,455 | 102 | ||||||||||
Customers Bancorp, Inc. (a) | 2,200 | 57 |
SHARES | MARKET VALUE (000S) | |||||||||||
CVB Financial Corp. | 2,651 | $ | 62 | |||||||||
Dime Community Bancshares, Inc. | 2,994 | 63 | ||||||||||
Donnelley Financial Solutions, Inc. (a) | 11,219 | 219 | ||||||||||
Eagle Bancorp, Inc. (a) | 804 | 47 | ||||||||||
eHealth, Inc. (a) | 3,823 | 66 | ||||||||||
Employers Holdings, Inc. | 3,410 | 151 | ||||||||||
Encore Capital Group, Inc. (a) | 2,692 | 113 | ||||||||||
Enova International, Inc. (a) | 9,958 | 151 | ||||||||||
Enterprise Financial Services Corp. | 1,028 | 46 | ||||||||||
Essent Group Ltd. (a) | 1,865 | 81 | ||||||||||
Evercore, Inc. ‘A’ | 2,434 | 219 | ||||||||||
EZCORP, Inc. ‘A’ (a) | 18,592 | 227 | ||||||||||
FBL Financial Group, Inc. ‘A’ | 1,155 | 80 | ||||||||||
FCB Financial Holdings, Inc. ‘A’ (a) | 1,364 | 69 | ||||||||||
Federal Agricultural Mortgage Corp. ‘C’ | 1,275 | 100 | ||||||||||
Federated Investors, Inc. ‘B’ | 7,286 | 263 | ||||||||||
Fidelity Southern Corp. | 1,278 | 28 | ||||||||||
Financial Engines, Inc. | 387 | 12 | ||||||||||
Financial Institutions, Inc. | 1,679 | 52 | ||||||||||
First Bancorp | 1,664 | 59 | ||||||||||
First Busey Corp. | 2,773 | 83 | ||||||||||
First Commonwealth Financial Corp. | 6,128 | 88 | ||||||||||
First Community Bancshares, Inc. | 1,399 | 40 | ||||||||||
First Defiance Financial Corp. | 648 | 34 | ||||||||||
First Financial Bancorp | 7,650 | 202 | ||||||||||
First Financial Bankshares, Inc. | 928 | 42 | ||||||||||
First Financial Corp. | 1,856 | 84 | ||||||||||
First Horizon National Corp. | 4,129 | 83 | ||||||||||
First Interstate BancSystem, Inc. ‘A’ | 1,662 | 67 | ||||||||||
First Merchants Corp. | 1,527 | 64 | ||||||||||
First Midwest Bancorp, Inc. | 2,833 | 68 | ||||||||||
FirstCash, Inc. | 3,468 | 234 | ||||||||||
Flagstar Bancorp, Inc. (a) | 2,692 | 101 | ||||||||||
Flushing Financial Corp. | 3,355 | 92 | ||||||||||
FNB Corp. | 9,270 | 128 | ||||||||||
Fulton Financial Corp. | 17,296 | 310 | ||||||||||
Glacier Bancorp, Inc. | 2,581 | 102 | ||||||||||
Great Southern Bancorp, Inc. | 695 | 36 | ||||||||||
Great Western Bancorp, Inc. | 4,434 | 176 | ||||||||||
Green Dot Corp. ‘A’ (a) | 3,114 | 188 | ||||||||||
Greenhill & Co., Inc. | 6,508 | 127 | ||||||||||
Hanmi Financial Corp. | 1,209 | 37 | ||||||||||
HCI Group, Inc. | 665 | 20 | ||||||||||
Heartland Financial USA, Inc. | 1,035 | 56 | ||||||||||
Hercules Capital, Inc. | 5,600 | 73 | ||||||||||
Heritage Financial Corp. | 2,416 | 74 | ||||||||||
Heritage Insurance Holdings, Inc. | 1,986 | 36 | ||||||||||
Hilltop Holdings, Inc. | 4,521 | 115 | ||||||||||
Home BancShares, Inc. | 526 | 12 | ||||||||||
HomeStreet, Inc. (a) | 2,215 | 64 | ||||||||||
HomeTrust Bancshares, Inc. (a) | 927 | 24 | ||||||||||
Hope Bancorp, Inc. | 2,649 | 48 | ||||||||||
Horace Mann Educators Corp. | 2,168 | 96 | ||||||||||
Houlihan Lokey, Inc. | 551 | 25 | ||||||||||
Independent Bank Corp. | 1,597 | 77 | ||||||||||
Infinity Property & Casualty Corp. | 1,082 | 115 | ||||||||||
International Bancshares Corp. | 4,224 | 168 | ||||||||||
Investment Technology Group, Inc. | 1,984 | 38 | ||||||||||
Kearny Financial Corp. | 2,330 | 34 | ||||||||||
Kemper Corp. | 7,026 | 484 | ||||||||||
Lakeland Bancorp, Inc. | 2,678 | 52 | ||||||||||
Lakeland Financial Corp. | 495 | 24 | ||||||||||
LegacyTexas Financial Group, Inc. | 488 | 21 | ||||||||||
Live Oak Bancshares, Inc. | 788 | 19 |
See Accompanying Notes | SEMIANNUAL REPORT | DECEMBER 31, 2017 | 55 |
Table of Contents
Schedule of Investments PIMCO RAE Fundamental US Small Fund (Cont.)
SHARES | MARKET VALUE (000S) | |||||||||||
MainSource Financial Group, Inc. | 1,478 | $ | 54 | |||||||||
MB Financial, Inc. | 999 | 44 | ||||||||||
MBIA, Inc. (a) | 43,682 | 320 | ||||||||||
Mercury General Corp. | 2,086 | 111 | ||||||||||
Morningstar, Inc. | 1,038 | 101 | ||||||||||
National Bank Holdings Corp. ‘A’ | 6,935 | 225 | ||||||||||
National Western Life Group, Inc. ‘A’ | 212 | 70 | ||||||||||
Nationstar Mortgage Holdings, Inc. (a) | 5,092 | 94 | ||||||||||
Navigators Group, Inc. | 1,864 | 91 | ||||||||||
NBT Bancorp, Inc. | 5,287 | 195 | ||||||||||
Nelnet, Inc. ‘A’ | 3,785 | 207 | ||||||||||
Northfield Bancorp, Inc. | 4,807 | 82 | ||||||||||
Northwest Bancshares, Inc. | 14,903 | 249 | ||||||||||
OceanFirst Financial Corp. | 971 | 25 | ||||||||||
Ocwen Financial Corp. (a) | 55,650 | 174 | ||||||||||
Old National Bancorp | 11,018 | 192 | ||||||||||
Oritani Financial Corp. | 7,013 | 115 | ||||||||||
Pacific Premier Bancorp, Inc. (a) | 930 | 37 | ||||||||||
Park National Corp. | 1,260 | 131 | ||||||||||
Piper Jaffray Cos. | 2,479 | 214 | ||||||||||
PRA Group, Inc. (a) | 5,742 | 191 | ||||||||||
ProAssurance Corp. | 5,827 | 333 | ||||||||||
Provident Financial Services, Inc. | 5,649 | 152 | ||||||||||
Regional Management Corp. (a) | 3,477 | 91 | ||||||||||
Renasant Corp. | 1,078 | 44 | ||||||||||
RLI Corp. | 2,446 | 148 | ||||||||||
S&T Bancorp, Inc. | 1,295 | 52 | ||||||||||
Safety Insurance Group, Inc. | 1,190 | 96 | ||||||||||
Sandy Spring Bancorp, Inc. | 1,845 | 72 | ||||||||||
Selective Insurance Group, Inc. | 2,137 | 125 | ||||||||||
ServisFirst Bancshares, Inc. | 1,280 | 53 | ||||||||||
Simmons First National Corp. ‘A’ | 1,063 | 61 | ||||||||||
South State Corp. | 948 | 83 | ||||||||||
State Bank Financial Corp. | 1,280 | 38 | ||||||||||
Sterling Bancorp | 7,900 | 194 | ||||||||||
Stewart Information Services Corp. | 465 | 20 | ||||||||||
Stifel Financial Corp. | 1,940 | 116 | ||||||||||
Stock Yards Bancorp, Inc. | 1,724 | 65 | ||||||||||
TCF Financial Corp. | 16,701 | 342 | ||||||||||
Tompkins Financial Corp. | 1,045 | 85 | ||||||||||
Towne Bank | 2,357 | 72 | ||||||||||
TriCo Bancshares | 1,084 | 41 | ||||||||||
TriState Capital Holdings, Inc. (a) | 722 | 17 | ||||||||||
Triumph Bancorp, Inc. (a) | 650 | 20 | ||||||||||
TrustCo Bank Corp. | 11,620 | 107 | ||||||||||
Trustmark Corp. | 5,580 | 178 | ||||||||||
UMB Financial Corp. | 1,382 | 99 | ||||||||||
Union Bankshares Corp. | 4,207 | 152 | ||||||||||
United Bankshares, Inc. | 1,674 | 58 | ||||||||||
United Financial Bancorp, Inc. | 2,662 | 47 | ||||||||||
United Fire Group, Inc. | 1,227 | 56 | ||||||||||
Universal Insurance Holdings, Inc. | 1,900 | 52 | ||||||||||
Univest Corp. of Pennsylvania | 1,904 | 53 | ||||||||||
Valley National Bancorp | 25,049 | 281 | ||||||||||
Virtus Investment Partners, Inc. | 168 | 19 | ||||||||||
Waddell & Reed Financial, Inc. ‘A’ | 25,577 | 571 | ||||||||||
Walker & Dunlop, Inc. (a) | 1,613 | 77 | ||||||||||
Washington Federal, Inc. | 9,748 | 334 | ||||||||||
Washington Trust Bancorp, Inc. | 696 | 37 | ||||||||||
Waterstone Financial, Inc. | 2,721 | 46 | ||||||||||
WesBanco, Inc. | 1,304 | 53 | ||||||||||
Westamerica Bancorporation | 2,371 | 141 | ||||||||||
World Acceptance Corp. (a) | 3,308 | 267 |
SHARES | MARKET VALUE (000S) | |||||||||||
WSFS Financial Corp. | 847 | $ | 41 | |||||||||
|
| |||||||||||
18,011 | ||||||||||||
|
| |||||||||||
HEALTH CARE 6.7% | ||||||||||||
Abaxis, Inc. | 691 | 34 | ||||||||||
Acadia Healthcare Co., Inc. (a) | 1,057 | 35 | ||||||||||
Acorda Therapeutics, Inc. (a) | 5,196 | 112 | ||||||||||
Akorn, Inc. (a) | 1,348 | 43 | ||||||||||
Allscripts Healthcare Solutions, Inc. (a) | 11,463 | 167 | ||||||||||
Almost Family, Inc. (a) | 1,076 | 60 | ||||||||||
AMAG Pharmaceuticals, Inc. (a) | 6,757 | 90 | ||||||||||
Amedisys, Inc. (a) | 2,683 | 141 | ||||||||||
AMN Healthcare Services, Inc. (a) | 1,985 | 98 | ||||||||||
Analogic Corp. | 960 | 80 | ||||||||||
AngioDynamics, Inc. (a) | 4,329 | 72 | ||||||||||
BioScrip, Inc. (a) | 7,646 | 22 | ||||||||||
Bluebird Bio, Inc. (a) | 154 | 27 | ||||||||||
Cambrex Corp. (a) | 1,509 | 72 | ||||||||||
Cantel Medical Corp. | 1,030 | 106 | ||||||||||
Capital Senior Living Corp. (a) | 4,253 | 57 | ||||||||||
Cardiovascular Systems, Inc. (a) | 491 | 12 | ||||||||||
Chemed Corp. | 1,398 | 340 | ||||||||||
Civitas Solutions, Inc. (a) | 547 | 9 | ||||||||||
Computer Programs & Systems, Inc. | 1,331 | 40 | ||||||||||
CONMED Corp. | 2,782 | 142 | ||||||||||
Depomed, Inc. (a) | 7,641 | 62 | ||||||||||
Emergent BioSolutions, Inc. (a) | 3,642 | 169 | ||||||||||
Enanta Pharmaceuticals, Inc. (a) | 337 | 20 | ||||||||||
Ensign Group, Inc. | 740 | 16 | ||||||||||
Exact Sciences Corp. (a) | 313 | 16 | ||||||||||
Exactech, Inc. (a) | 1,393 | 69 | ||||||||||
Five Prime Therapeutics, Inc. (a) | 885 | 19 | ||||||||||
Globus Medical, Inc. ‘A’ (a) | 3,104 | 128 | ||||||||||
Haemonetics Corp. (a) | 2,435 | 141 | ||||||||||
Halyard Health, Inc. (a) | 8,112 | 375 | ||||||||||
HMS Holdings Corp. (a) | 4,319 | 73 | ||||||||||
Horizon Pharma PLC (a) | 7,591 | 111 | ||||||||||
ICU Medical, Inc. (a) | 582 | 126 | ||||||||||
Impax Laboratories, Inc. (a) | 10,165 | 169 | ||||||||||
Integer Holdings Corp. (a) | 2,543 | 115 | ||||||||||
Integra LifeSciences Holdings Corp. (a) | 2,903 | 139 | ||||||||||
Invacare Corp. | 8,748 | 147 | ||||||||||
Juno Therapeutics, Inc. (a) | 343 | 16 | ||||||||||
Lannett Co., Inc. (a) | 3,936 | 91 | ||||||||||
LHC Group, Inc. (a) | 1,177 | 72 | ||||||||||
Ligand Pharmaceuticals, Inc. (a) | 153 | 21 | ||||||||||
Luminex Corp. | 3,873 | 76 | ||||||||||
Magellan Health, Inc. (a) | 4,768 | 460 | ||||||||||
Medicines Co. (a) | 2,493 | 68 | ||||||||||
Medidata Solutions, Inc. (a) | 570 | 36 | ||||||||||
Medpace Holdings, Inc. (a) | 508 | 18 | ||||||||||
Meridian Bioscience, Inc. | 4,783 | 67 | ||||||||||
Merit Medical Systems, Inc. (a) | 3,116 | 135 | ||||||||||
Molina Healthcare, Inc. (a) | 2,775 | 213 | ||||||||||
Myriad Genetics, Inc. (a) | 20,167 | 693 | ||||||||||
National HealthCare Corp. | 956 | 58 | ||||||||||
Natus Medical, Inc. (a) | 1,398 | 53 | ||||||||||
Neogen Corp. (a) | 938 | 77 | ||||||||||
NuVasive, Inc. (a) | 1,650 | 97 | ||||||||||
NxStage Medical, Inc. (a) | 684 | 17 | ||||||||||
Omnicell, Inc. (a) | 1,662 | 81 | ||||||||||
OPKO Health, Inc. (a) | 6,391 | 31 | ||||||||||
Orthofix International NV (a) | 2,527 | 138 |
SHARES | MARKET VALUE (000S) | |||||||||||
Owens & Minor, Inc. | 12,651 | $ | 239 | |||||||||
PDL BioPharma, Inc. (a) | 94,500 | 259 | ||||||||||
Portola Pharmaceuticals, Inc. (a) | 405 | 20 | ||||||||||
Prestige Brands Holdings, Inc. (a) | 3,145 | 140 | ||||||||||
Providence Service Corp. (a) | 554 | 33 | ||||||||||
Quality Systems, Inc. (a) | 7,068 | 96 | ||||||||||
Quidel Corp. (a) | 885 | 38 | ||||||||||
Quorum Health Corp. (a) | 4,086 | 26 | ||||||||||
RadNet, Inc. (a) | 8,568 | 87 | ||||||||||
Select Medical Holdings Corp. (a) | 22,645 | 400 | ||||||||||
Spectrum Pharmaceuticals, Inc. (a) | 3,853 | 73 | ||||||||||
SurModics, Inc. (a) | 602 | 17 | ||||||||||
Tivity Health, Inc. (a) | 2,987 | 109 | ||||||||||
U.S. Physical Therapy, Inc. | 394 | 28 | ||||||||||
|
| |||||||||||
7,737 | ||||||||||||
|
| |||||||||||
INDUSTRIALS 17.9% | ||||||||||||
AAON, Inc. | 1,042 | 38 | ||||||||||
AAR Corp. | 4,607 | 181 | ||||||||||
ABM Industries, Inc. | 5,241 | 198 | ||||||||||
ACCO Brands Corp. (a) | 10,999 | 134 | ||||||||||
Actuant Corp. ‘A’ | 9,106 | 230 | ||||||||||
Advanced Drainage Systems, Inc. | 843 | 20 | ||||||||||
Aegion Corp. (a) | 3,473 | 88 | ||||||||||
Aerovironment, Inc. (a) | 652 | 37 | ||||||||||
Air Transport Services Group, Inc. (a) | 2,979 | 69 | ||||||||||
Aircastle Ltd. | 9,307 | 218 | ||||||||||
Alamo Group, Inc. | 153 | 17 | ||||||||||
Albany International Corp. ‘A’ | 2,036 | 125 | ||||||||||
Allegiant Travel Co. | 1,070 | 166 | ||||||||||
Altra Industrial Motion Corp. | 1,785 | 90 | ||||||||||
Apogee Enterprises, Inc. | 598 | 27 | ||||||||||
Applied Industrial Technologies, Inc. | 3,976 | 271 | ||||||||||
ArcBest Corp. | 1,516 | 54 | ||||||||||
Argan, Inc. | 227 | 10 | ||||||||||
Armstrong Flooring, Inc. (a) | 3,590 | 61 | ||||||||||
Armstrong World Industries, Inc. (a) | 4,706 | 285 | ||||||||||
Astec Industries, Inc. | 1,114 | 65 | ||||||||||
Atlas Air Worldwide Holdings, Inc. (a) | 4,045 | 237 | ||||||||||
AZZ, Inc. | 892 | 46 | ||||||||||
Babcock & Wilcox Enterprises, Inc. (a) | 9,279 | 53 | ||||||||||
Barnes Group, Inc. | 2,672 | 169 | ||||||||||
Beacon Roofing Supply, Inc. (a) | 2,657 | 169 | ||||||||||
Brady Corp. ‘A’ | 5,773 | 219 | ||||||||||
Briggs & Stratton Corp. | 6,727 | 171 | ||||||||||
Brink’s Co. | 2,396 | 189 | ||||||||||
CAI International, Inc. (a) | 3,112 | 88 | ||||||||||
Casella Waste Systems, Inc. ‘A’ (a) | 5,191 | 119 | ||||||||||
CBIZ, Inc. (a) | 6,445 | 100 | ||||||||||
Chart Industries, Inc. (a) | 2,545 | 119 | ||||||||||
CIRCOR International, Inc. | 615 | 30 | ||||||||||
Civeo Corp. (a) | 33,415 | 91 | ||||||||||
Clean Harbors, Inc. (a) | 3,437 | 186 | ||||||||||
Columbus McKinnon Corp. | 545 | 22 | ||||||||||
Comfort Systems USA, Inc. | 1,289 | 56 | ||||||||||
Continental Building Products, Inc. (a) | 906 | 25 | ||||||||||
Covanta Holding Corp. | 9,810 | 166 | ||||||||||
CRA International, Inc. | 1,005 | 45 | ||||||||||
Cubic Corp. | 1,753 | 103 | ||||||||||
Deluxe Corp. | 1,912 | 147 | ||||||||||
Douglas Dynamics, Inc. | 1,153 | 44 | ||||||||||
Ducommun, Inc. (a) | 1,056 | 30 |
56 | PIMCO EQUITY SERIES | See Accompanying Notes |
Table of Contents
December 31, 2017 (Unaudited)
SHARES | MARKET VALUE (000S) | |||||||||||
DXP Enterprises, Inc. (a) | 1,725 | $ | 51 | |||||||||
Dycom Industries, Inc. (a) | 945 | 105 | ||||||||||
Encore Wire Corp. | 1,218 | 59 | ||||||||||
EnerSys | 1,710 | 119 | ||||||||||
Ennis, Inc. | 2,857 | 59 | ||||||||||
EnPro Industries, Inc. | 1,738 | 163 | ||||||||||
ESCO Technologies, Inc. | 1,721 | 104 | ||||||||||
Essendant, Inc. | 12,264 | 114 | ||||||||||
Esterline Technologies Corp. (a) | 2,784 | 208 | ||||||||||
Exponent, Inc. | 1,273 | 91 | ||||||||||
Federal Signal Corp. | 2,919 | 59 | ||||||||||
Forward Air Corp. | 510 | 29 | ||||||||||
Franklin Electric Co., Inc. | 2,051 | 94 | ||||||||||
FTI Consulting, Inc. (a) | 4,710 | 202 | ||||||||||
GATX Corp. | 6,979 | 434 | ||||||||||
Generac Holdings, Inc. (a) | 6,078 | 301 | ||||||||||
General Cable Corp. | 6,105 | 181 | ||||||||||
Gibraltar Industries, Inc. (a) | 1,468 | 48 | ||||||||||
Global Brass & Copper Holdings, Inc. | 2,055 | 68 | ||||||||||
Granite Construction, Inc. | 1,757 | 111 | ||||||||||
Greenbrier Cos., Inc. | 2,771 | 148 | ||||||||||
Griffon Corp. | 6,134 | 125 | ||||||||||
H&E Equipment Services, Inc. | 6,411 | 261 | ||||||||||
Harsco Corp. (a) | 15,130 | 282 | ||||||||||
Hawaiian Holdings, Inc. | 3,414 | 136 | ||||||||||
HC2 Holdings, Inc. (a) | 2,591 | 15 | ||||||||||
Healthcare Services Group, Inc. | 1,018 | 54 | ||||||||||
Heartland Express, Inc. | 2,687 | 63 | ||||||||||
Heidrick & Struggles International, Inc. | 3,147 | 77 | ||||||||||
Herc Holdings, Inc. (a) | 3,107 | 195 | ||||||||||
Herman Miller, Inc. | 3,203 | 128 | ||||||||||
Hill International, Inc. (a) | 10,367 | 56 | ||||||||||
Hillenbrand, Inc. | 3,689 | 165 | ||||||||||
HNI Corp. | 2,631 | 101 | ||||||||||
Hub Group, Inc. ‘A’ (a) | 677 | 32 | ||||||||||
Huron Consulting Group, Inc. (a) | 1,256 | 51 | ||||||||||
Hyster-Yale Materials Handling, Inc. | 833 | 71 | ||||||||||
ICF International, Inc. (a) | 1,719 | 90 | ||||||||||
InnerWorkings, Inc. (a) | 3,729 | 37 | ||||||||||
Insperity, Inc. | 2,940 | 169 | ||||||||||
Interface, Inc. | 2,335 | 59 | ||||||||||
John Bean Technologies Corp. | 559 | 62 | ||||||||||
Kadant, Inc. | 691 | 69 | ||||||||||
Kaman Corp. | 3,010 | 177 | ||||||||||
KBR, Inc. | 9,556 | 189 | ||||||||||
Kelly Services, Inc. ‘A’ | 5,308 | 145 | ||||||||||
Kennametal, Inc. | 7,360 | 356 | ||||||||||
Kforce, Inc. | 5,624 | 142 | ||||||||||
Kimball International, Inc. ‘B’ | 2,693 | 50 | ||||||||||
Kirby Corp. (a) | 1,081 | 72 | ||||||||||
KLX, Inc. (a) | 3,007 | 205 | ||||||||||
Knight-Swift Transportation Holdings, Inc. | 7,344 | 321 | ||||||||||
Knoll, Inc. | 2,430 | 56 | ||||||||||
Korn/Ferry International | 3,210 | 133 | ||||||||||
Kratos Defense & Security Solutions, Inc. (a) | 7,838 | 83 | ||||||||||
Landstar System, Inc. | 1,099 | 114 | ||||||||||
Lindsay Corp. | 687 | 61 | ||||||||||
LSC Communications, Inc. | 13,971 | 212 | ||||||||||
Lydall, Inc. (a) | 310 | 16 | ||||||||||
Manitowoc Co., Inc. | 1,192 | 47 | ||||||||||
Marten Transport Ltd. | 1,840 | 37 | ||||||||||
Masonite International Corp. (a) | 915 | 68 |
SHARES | MARKET VALUE (000S) | |||||||||||
MasTec, Inc. (a) | 1,941 | $ | 95 | |||||||||
Matson, Inc. | 1,452 | 43 | ||||||||||
Matthews International Corp. ‘A’ | 781 | 41 | ||||||||||
McGrath RentCorp | 3,355 | 158 | ||||||||||
Mercury Systems, Inc. (a) | 728 | 37 | ||||||||||
Meritor, Inc. (a) | 6,700 | 157 | ||||||||||
Milacron Holdings Corp. (a) | 1,112 | 21 | ||||||||||
Mobile Mini, Inc. | 1,732 | 60 | ||||||||||
Moog, Inc. ‘A’ (a) | 4,432 | 385 | ||||||||||
MRC Global, Inc. (a) | 12,548 | 212 | ||||||||||
MSA Safety, Inc. | 2,099 | 163 | ||||||||||
Mueller Industries, Inc. | 5,597 | 198 | ||||||||||
Mueller Water Products, Inc. ‘A’ | 5,597 | 70 | ||||||||||
Multi-Color Corp. | 249 | 19 | ||||||||||
MYR Group, Inc. (a) | 852 | 30 | ||||||||||
National Presto Industries, Inc. | 901 | 90 | ||||||||||
Navigant Consulting, Inc. (a) | 4,034 | 78 | ||||||||||
Navistar International Corp. (a) | 3,629 | 156 | ||||||||||
NOW, Inc. (a) | 5,962 | 66 | ||||||||||
On Assignment, Inc. (a) | 1,226 | 79 | ||||||||||
Park-Ohio Holdings Corp. | 327 | 15 | ||||||||||
Primoris Services Corp. | 1,581 | 43 | ||||||||||
Quad/Graphics, Inc. | 7,102 | 160 | ||||||||||
Quanex Building Products Corp. | 2,216 | 52 | ||||||||||
Raven Industries, Inc. | 2,305 | 79 | ||||||||||
RBC Bearings, Inc. (a) | 96 | 12 | ||||||||||
Regal Beloit Corp. | 1,132 | 87 | ||||||||||
Resources Connection, Inc. | 4,613 | 71 | ||||||||||
Rexnord Corp. (a) | 9,018 | 235 | ||||||||||
Roadrunner Transportation Systems, Inc. (a) | 7,087 | 55 | ||||||||||
RPX Corp. | 6,117 | 82 | ||||||||||
RR Donnelley & Sons Co. | 21,000 | 195 | ||||||||||
Rush Enterprises, Inc. ‘A’ (a) | 5,664 | 288 | ||||||||||
Saia, Inc. (a) | 2,708 | 192 | ||||||||||
Scorpio Bulkers, Inc. | 10,364 | 77 | ||||||||||
Simpson Manufacturing Co., Inc. | 3,002 | 172 | ||||||||||
SiteOne Landscape Supply, Inc. (a) | 495 | 38 | ||||||||||
SkyWest, Inc. | 13,518 | 718 | ||||||||||
Spirit Airlines, Inc. (a) | 1,288 | 58 | ||||||||||
SPX Corp. (a) | 2,688 | 84 | ||||||||||
SPX FLOW, Inc. (a) | 8,346 | 397 | ||||||||||
Standex International Corp. | 412 | 42 | ||||||||||
Steelcase, Inc. ‘A’ | 8,404 | 128 | ||||||||||
Sun Hydraulics Corp. | 432 | 28 | ||||||||||
Team, Inc. (a) | 325 | 5 | ||||||||||
Tennant Co. | 985 | 72 | ||||||||||
Tetra Tech, Inc. | 3,364 | 162 | ||||||||||
Textainer Group Holdings Ltd. (a) | 7,060 | 152 | ||||||||||
Thermon Group Holdings, Inc. (a) | 1,343 | 32 | ||||||||||
Titan International, Inc. | 2,800 | 36 | ||||||||||
Titan Machinery, Inc. (a) | 4,692 | 99 | ||||||||||
Trex Co., Inc. (a) | 386 | 42 | ||||||||||
TriMas Corp. (a) | 2,353 | 63 | ||||||||||
TriNet Group, Inc. (a) | 739 | 33 | ||||||||||
Triumph Group, Inc. | 5,879 | 160 | ||||||||||
TrueBlue, Inc. (a) | 2,166 | 60 | ||||||||||
Tutor Perini Corp. (a) | 3,398 | 86 | ||||||||||
UniFirst Corp. | 677 | 112 | ||||||||||
Universal Forest Products, Inc. | 3,150 | 118 | ||||||||||
Valmont Industries, Inc. | 1,962 | 325 | ||||||||||
Veritiv Corp. (a) | 3,487 | 101 | ||||||||||
Viad Corp. | 906 | 50 | ||||||||||
Wabash National Corp. | 3,689 | 80 | ||||||||||
WageWorks, Inc. (a) | 207 | 13 |
SHARES | MARKET VALUE (000S) | |||||||||||
Watts Water Technologies, Inc. ‘A’ | 2,137 | $ | 162 | |||||||||
Welbilt, Inc. (a) | 8,066 | 190 | ||||||||||
Werner Enterprises, Inc. | 4,747 | 183 | ||||||||||
Wesco Aircraft Holdings, Inc. (a) | 3,177 | 24 | ||||||||||
WESCO International, Inc. (a) | 3,638 | 248 | ||||||||||
YRC Worldwide, Inc. (a) | 6,724 | 97 | ||||||||||
|
| |||||||||||
20,709 | ||||||||||||
|
| |||||||||||
INFORMATION TECHNOLOGY 11.2% | ||||||||||||
ACI Worldwide, Inc. (a) | 3,090 | 70 | ||||||||||
Acxiom Corp. (a) | 3,888 | 107 | ||||||||||
ADTRAN, Inc. | 8,121 | 157 | ||||||||||
Advanced Energy Industries, Inc. (a) | 1,615 | 109 | ||||||||||
Alpha & Omega Semiconductor Ltd. (a) | 2,964 | 48 | ||||||||||
Ambarella, Inc. (a) | 637 | 37 | ||||||||||
Amkor Technology, Inc. (a) | 16,962 | 170 | ||||||||||
Anixter International, Inc. (a) | 3,055 | 232 | ||||||||||
Avid Technology, Inc. (a) | 15,430 | 83 | ||||||||||
AVX Corp. | 4,322 | 75 | ||||||||||
Belden, Inc. | 1,848 | 143 | ||||||||||
Benchmark Electronics, Inc. (a) | 5,990 | 174 | ||||||||||
Black Box Corp. | 4,598 | 16 | ||||||||||
Blackbaud, Inc. | 196 | 19 | ||||||||||
Blackhawk Network Holdings, Inc. (a) | 1,488 | 53 | ||||||||||
Blucora, Inc. (a) | 5,141 | 114 | ||||||||||
Bottomline Technologies de, Inc. (a) | 940 | 33 | ||||||||||
Brooks Automation, Inc. | 4,102 | 98 | ||||||||||
Cabot Microelectronics Corp. | 3,368 | 317 | ||||||||||
CACI International, Inc. ‘A’ (a) | 3,566 | 472 | ||||||||||
Ciena Corp. (a) | 2,752 | 58 | ||||||||||
CommVault Systems, Inc. (a) | 1,760 | 92 | ||||||||||
Comtech Telecommunications Corp. | 12,710 | 281 | ||||||||||
Convergys Corp. | 15,037 | 353 | ||||||||||
CoreLogic, Inc. (a) | 1,883 | 87 | ||||||||||
Cray, Inc. (a) | 3,038 | 74 | ||||||||||
Cree, Inc. (a) | 11,335 | 421 | ||||||||||
CSG Systems International, Inc. | 3,473 | 152 | ||||||||||
CTS Corp. | 538 | 14 | ||||||||||
Daktronics, Inc. | 2,521 | 23 | ||||||||||
DHI Group, Inc. (a) | 10,102 | 19 | ||||||||||
Diebold Nixdorf, Inc. | 8,578 | 140 | ||||||||||
Diodes, Inc. (a) | 4,315 | 124 | ||||||||||
DST Systems, Inc. | 421 | 26 | ||||||||||
Eastman Kodak Co. (a) | 6,233 | 19 | ||||||||||
Ebix, Inc. | 1,256 | 100 | ||||||||||
Electro Scientific Industries, Inc. (a) | 2,252 | 48 | ||||||||||
Electronics For Imaging, Inc. (a) | 2,540 | 75 | ||||||||||
Entegris, Inc. | 3,780 | 115 | ||||||||||
ePlus, Inc. (a) | 1,459 | 110 | ||||||||||
Etsy, Inc. (a) | 740 | 15 | ||||||||||
Everi Holdings, Inc. (a) | 9,656 | 73 | ||||||||||
ExlService Holdings, Inc. (a) | 1,499 | 90 | ||||||||||
Extreme Networks, Inc. (a) | 4,636 | 58 | ||||||||||
FARO Technologies, Inc. (a) | 1,741 | 82 | ||||||||||
Finisar Corp. (a) | 3,877 | 79 | ||||||||||
FireEye, Inc. (a) | 1,702 | 24 | ||||||||||
Fitbit, Inc. ‘A’ (a) | 11,428 | 65 | ||||||||||
Harmonic, Inc. (a) | 20,177 | 85 | ||||||||||
II-VI, Inc. (a) | 2,622 | 123 | ||||||||||
Insight Enterprises, Inc. (a) | 6,587 | 252 | ||||||||||
Integrated Device Technology, Inc. (a) | 3,368 | 100 | ||||||||||
InterDigital, Inc. | 2,613 | 199 |
See Accompanying Notes | SEMIANNUAL REPORT | DECEMBER 31, 2017 | 57 |
Table of Contents
Schedule of Investments PIMCO RAE Fundamental US Small Fund (Cont.)
SHARES | MARKET VALUE (000S) | |||||||||||
Internap Corp. (a) | 1,874 | $ | 29 | |||||||||
Itron, Inc. (a) | 2,754 | 188 | ||||||||||
KEMET Corp. (a) | 5,083 | 77 | ||||||||||
Knowles Corp. (a) | 10,693 | 157 | ||||||||||
Liquidity Services, Inc. (a) | 9,531 | 46 | ||||||||||
Littelfuse, Inc. | 459 | 91 | ||||||||||
LivePerson, Inc. (a) | 2,001 | 23 | ||||||||||
LogMeIn, Inc. | 148 | 17 | ||||||||||
Lumentum Holdings, Inc. (a) | 1,079 | 53 | ||||||||||
Manhattan Associates, Inc. (a) | 1,986 | 98 | ||||||||||
ManTech International Corp. ‘A’ | 3,226 | 162 | ||||||||||
Methode Electronics, Inc. | 1,291 | 52 | ||||||||||
MicroStrategy, Inc. ‘A’ (a) | 476 | 63 | ||||||||||
MoneyGram International, Inc. (a) | 7,137 | 94 | ||||||||||
Monotype Imaging Holdings, Inc. | 1,079 | 26 | ||||||||||
MTS Systems Corp. | 1,679 | 90 | ||||||||||
NETGEAR, Inc. (a) | 3,288 | 193 | ||||||||||
NetScout Systems, Inc. (a) | 4,866 | 148 | ||||||||||
NIC, Inc. | 1,712 | 28 | ||||||||||
Novanta, Inc. (a) | 634 | 32 | ||||||||||
OSI Systems, Inc. (a) | 1,454 | 94 | ||||||||||
Park Electrochemical Corp. | 2,074 | 41 | ||||||||||
PC Connection, Inc. | 650 | 17 | ||||||||||
Pegasystems, Inc. | 833 | 39 | ||||||||||
Perficient, Inc. (a) | 1,053 | 20 | ||||||||||
Photronics, Inc. (a) | 6,548 | 56 | ||||||||||
Plantronics, Inc. | 3,222 | 162 | ||||||||||
Plexus Corp. (a) | 3,096 | 188 | ||||||||||
Power Integrations, Inc. | 913 | 67 | ||||||||||
Progress Software Corp. | 7,946 | 338 | ||||||||||
Quantum Corp. (a) | 4,729 | 27 | ||||||||||
Rambus, Inc. (a) | 3,501 | 50 | ||||||||||
RealPage, Inc. (a) | 1,557 | 69 | ||||||||||
Ribbon Communications, Inc. (a) | 7,182 | 56 | ||||||||||
Rogers Corp. (a) | 1,160 | 188 | ||||||||||
Sanmina Corp. (a) | 7,748 | 256 | ||||||||||
ScanSource, Inc. (a) | 3,011 | 108 | ||||||||||
Science Applications International Corp. | 2,179 | 167 | ||||||||||
Semtech Corp. (a) | 3,533 | 121 | ||||||||||
Silicon Laboratories, Inc. (a) | 2,433 | 215 | ||||||||||
Stratasys Ltd. (a) | 4,181 | 83 | ||||||||||
Super Micro Computer, Inc. (a) | 891 | 19 | ||||||||||
Sykes Enterprises, Inc. (a) | 5,713 | 180 | ||||||||||
Synaptics, Inc. (a) | 1,155 | 46 | ||||||||||
Synchronoss Technologies, Inc. (a) | 4,179 | 37 | ||||||||||
Syntel, Inc. (a) | 2,385 | 55 | ||||||||||
TeleTech Holdings, Inc. | 1,104 | 44 | ||||||||||
TiVo Corp. | 22,963 | 358 | ||||||||||
TTM Technologies, Inc. (a) | 8,405 | 132 | ||||||||||
Ultra Clean Holdings, Inc. (a) | 1,771 | 41 | ||||||||||
Unisys Corp. (a) | 27,572 | 225 | ||||||||||
Universal Display Corp. | 178 | 31 | ||||||||||
Veeco Instruments, Inc. (a) | 4,734 | 70 | ||||||||||
VeriFone Systems, Inc. (a) | 10,528 | 186 | ||||||||||
Verint Systems, Inc. (a) | 4,904 | 205 | ||||||||||
Versum Materials, Inc. | 503 | 19 | ||||||||||
Viavi Solutions, Inc. (a) | 11,453 | 100 | ||||||||||
Virtusa Corp. (a) | 994 | 44 | ||||||||||
Vishay Intertechnology, Inc. | 22,947 | 476 | ||||||||||
Web.com Group, Inc. (a) | 3,045 | 66 | ||||||||||
Xcerra Corp. (a) | 5,086 | 50 | ||||||||||
XO Group, Inc. (a) | 1,871 | 35 | ||||||||||
Xperi Corp. | 3,679 | 90 | ||||||||||
Yelp, Inc. (a) | 1,020 | 43 |
SHARES | MARKET VALUE (000S) | |||||||||||
Zynga, Inc. ‘A’ (a) | 62,097 | $ | 248 | |||||||||
|
| |||||||||||
12,932 | ||||||||||||
|
| |||||||||||
MATERIALS 5.0% | ||||||||||||
A Schulman, Inc. | 2,806 | 104 | ||||||||||
AdvanSix, Inc. (a) | 4,634 | 195 | ||||||||||
AK Steel Holding Corp. (a) | 3,864 | 22 | ||||||||||
Allegheny Technologies, Inc. (a) | 4,918 | 119 | ||||||||||
Boise Cascade Co. | 3,452 | 138 | ||||||||||
Cabot Corp. | 1,035 | 64 | ||||||||||
Calgon Carbon Corp. | 3,941 | 84 | ||||||||||
Carpenter Technology Corp. | 2,913 | 148 | ||||||||||
Century Aluminum Co. (a) | 1,872 | 37 | ||||||||||
Clearwater Paper Corp. (a) | 2,759 | 125 | ||||||||||
Coeur Mining, Inc. (a) | 2,378 | 18 | ||||||||||
Commercial Metals Co. | 12,600 | 269 | ||||||||||
Compass Minerals International, Inc. | 1,635 | 118 | ||||||||||
Ferro Corp. (a) | 3,511 | 83 | ||||||||||
FutureFuel Corp. | 2,947 | 41 | ||||||||||
GCP Applied Technologies, Inc. (a) | 5,452 | 174 | ||||||||||
Gold Resource Corp. | 6,338 | 28 | ||||||||||
Greif, Inc. ‘A’ | 4,912 | 298 | ||||||||||
HB Fuller Co. | 2,688 | 145 | ||||||||||
Hecla Mining Co. | 4,842 | 19 | ||||||||||
Ingevity Corp. (a) | 997 | 70 | ||||||||||
Innophos Holdings, Inc. | 3,632 | 170 | ||||||||||
Innospec, Inc. | 1,537 | 108 | ||||||||||
Intrepid Potash, Inc. (a) | 12,283 | 58 | ||||||||||
Kaiser Aluminum Corp. | 1,111 | 119 | ||||||||||
KapStone Paper and Packaging Corp. | 5,504 | 125 | ||||||||||
Koppers Holdings, Inc. (a) | 1,456 | 74 | ||||||||||
Kraton Corp. (a) | 1,340 | 64 | ||||||||||
Kronos Worldwide, Inc. | 2,740 | 71 | ||||||||||
Louisiana-Pacific Corp. (a) | 3,243 | 85 | ||||||||||
LSB Industries, Inc. (a) | 1,446 | 13 | ||||||||||
Materion Corp. | 2,006 | 97 | ||||||||||
Minerals Technologies, Inc. | 1,451 | 100 | ||||||||||
Myers Industries, Inc. | 4,065 | 79 | ||||||||||
Neenah Paper, Inc. | 981 | 89 | ||||||||||
Olympic Steel, Inc. | 1,980 | 43 | ||||||||||
OMNOVA Solutions, Inc. (a) | 5,868 | 59 | ||||||||||
PH Glatfelter Co. | 6,448 | 138 | ||||||||||
Platform Specialty Products Corp. (a) | 7,169 | 71 | ||||||||||
PolyOne Corp. | 5,340 | 232 | ||||||||||
Quaker Chemical Corp. | 446 | 67 | ||||||||||
Rayonier Advanced Materials, Inc. | 7,730 | 158 | ||||||||||
Ryerson Holding Corp. (a) | 7,863 | 82 | ||||||||||
Schnitzer Steel Industries, Inc. ‘A’ | 1,874 | 63 | ||||||||||
Schweitzer-Mauduit International, Inc. | 2,441 | 111 | ||||||||||
Silgan Holdings, Inc. | 6,794 | 200 | ||||||||||
Stepan Co. | 1,687 | 133 | ||||||||||
Summit Materials, Inc. ‘A’ (a) | 4,204 | 132 | ||||||||||
SunCoke Energy, Inc. (a) | 7,427 | 89 | ||||||||||
TimkenSteel Corp. (a) | 3,360 | 51 | ||||||||||
Tredegar Corp. | 1,004 | 19 | ||||||||||
Trinseo S.A. | 2,116 | 154 | ||||||||||
Tronox Ltd. ‘A’ | 12,492 | 256 | ||||||||||
Verso Corp. (a) | 5,023 | 88 | ||||||||||
Worthington Industries, Inc. | 2,424 | 107 | ||||||||||
|
| |||||||||||
5,804 | ||||||||||||
|
|
SHARES | MARKET VALUE (000S) | |||||||||||
REAL ESTATE 0.2% | ||||||||||||
Alexander & Baldwin, Inc. | 1,239 | $ | 34 | |||||||||
HFF, Inc. ‘A’ | 487 | 24 | ||||||||||
Kennedy-Wilson Holdings, Inc. | 2,911 | 50 | ||||||||||
RE/MAX Holdings, Inc. ‘A’ | 496 | 24 | ||||||||||
RMR Group, Inc. ‘A’ | 377 | 22 | ||||||||||
St. Joe Co. (a) | 3,078 | 56 | ||||||||||
|
| |||||||||||
210 | ||||||||||||
|
| |||||||||||
TELECOMMUNICATION SERVICES 1.1% | ||||||||||||
ATN International, Inc. | 1,084 | 60 | ||||||||||
Cincinnati Bell, Inc. (a) | 12,438 | 259 | ||||||||||
Cogent Communications Holdings, Inc. | 2,014 | 91 | ||||||||||
Consolidated Communications Holdings, Inc. | 10,461 | 128 | ||||||||||
General Communication, Inc. ‘A’ (a) | 5,975 | 233 | ||||||||||
IDT Corp. ‘B’ | 2,030 | 21 | ||||||||||
Iridium Communications, Inc. (a) | 17,843 | 211 | ||||||||||
Shenandoah Telecommunications Co. | 2,276 | 77 | ||||||||||
Spok Holdings, Inc. | 3,114 | 49 | ||||||||||
Vonage Holdings Corp. (a) | 16,410 | 167 | ||||||||||
|
| |||||||||||
1,296 | ||||||||||||
|
| |||||||||||
UTILITIES 3.4% | ||||||||||||
ALLETE, Inc. | 2,188 | 163 | ||||||||||
American States Water Co. | 2,762 | 160 | ||||||||||
Atlantic Power Corp. (a) | 8,032 | 19 | ||||||||||
Avista Corp. | 8,186 | 421 | ||||||||||
California Water Service Group | 4,754 | 216 | ||||||||||
Chesapeake Utilities Corp. | 843 | 66 | ||||||||||
Dynegy, Inc. (a) | 49,488 | 586 | ||||||||||
El Paso Electric Co. | 5,167 | 286 | ||||||||||
MGE Energy, Inc. | 3,052 | 193 | ||||||||||
New Jersey Resources Corp. | 2,294 | 92 | ||||||||||
Northwest Natural Gas Co. | 3,846 | 229 | ||||||||||
NorthWestern Corp. | 2,809 | 168 | ||||||||||
NRG Yield, Inc. ‘C’ | 4,374 | 83 | ||||||||||
Ormat Technologies, Inc. | 807 | 52 | ||||||||||
Otter Tail Corp. | 4,127 | 183 | ||||||||||
Pattern Energy Group, Inc. | 3,192 | 69 | ||||||||||
PNM Resources, Inc. | 11,540 | 467 | ||||||||||
SJW Group | 1,722 | 110 | ||||||||||
South Jersey Industries, Inc. | 3,077 | 96 | ||||||||||
Spire, Inc. | 2,295 | 172 | ||||||||||
TerraForm Power, Inc. | 2,858 | 34 | ||||||||||
Unitil Corp. | 2,208 | 101 | ||||||||||
|
| |||||||||||
3,966 | ||||||||||||
|
| |||||||||||
Total United States | 101,859 | |||||||||||
|
| |||||||||||
Total Common Stocks (Cost $77,506) | 102,070 | |||||||||||
|
| |||||||||||
REAL ESTATE INVESTMENT TRUSTS 10.9% | ||||||||||||
UNITED STATES 10.9% | ||||||||||||
FINANCIALS 2.9% | ||||||||||||
AG Mortgage Investment Trust, Inc. | 5,356 | 102 | ||||||||||
Anworth Mortgage Asset Corp. | 26,602 | 145 | ||||||||||
Apollo Commercial Real Estate Finance, Inc. | 5,749 | 106 | ||||||||||
Arbor Realty Trust, Inc. | 4,145 | 36 | ||||||||||
Ares Commercial Real Estate Corp. | 5,017 | 65 |
58 | PIMCO EQUITY SERIES | See Accompanying Notes |
Table of Contents
December 31, 2017 (Unaudited)
SHARES | MARKET VALUE (000S) | |||||||||||
ARMOUR Residential REIT, Inc. | 3,720 | $ | 96 | |||||||||
Blackstone Mortgage Trust, Inc. ‘A’ | 2,394 | 77 | ||||||||||
Capstead Mortgage Corp. | 22,202 | 192 | ||||||||||
Chimera Investment Corp. | 11,251 | 208 | ||||||||||
CYS Investments, Inc. | 24,330 | 195 | ||||||||||
Dynex Capital, Inc. | 15,074 | 106 | ||||||||||
Granite Point Mortgage Trust, Inc. | 2 | 0 | ||||||||||
Invesco Mortgage Capital, Inc. | 22,123 | 394 | ||||||||||
Ladder Capital Corp. | 6,349 | 86 | ||||||||||
MFA Financial, Inc. | 54,504 | 432 | ||||||||||
MTGE Investment Corp. | 9,434 | 174 | ||||||||||
New York Mortgage Trust, Inc. | 22,489 | 139 | ||||||||||
PennyMac Mortgage Investment Trust | 14,103 | 226 | ||||||||||
Redwood Trust, Inc. | 12,765 | 189 | ||||||||||
Resource Capital Corp. | 11,716 | 110 | ||||||||||
Two Harbors Investment Corp. | 9,051 | 147 | ||||||||||
Western Asset Mortgage Capital Corp. | 13,435 | 134 | ||||||||||
|
| |||||||||||
3,359 | ||||||||||||
|
| |||||||||||
REAL ESTATE 8.0% | ||||||||||||
Acadia Realty Trust | 4,084 | 112 | ||||||||||
Alexander’s, Inc. | 72 | 29 | ||||||||||
American Assets Trust, Inc. | 1,624 | 62 | ||||||||||
Ashford Hospitality Prime, Inc. | 3,508 | 34 | ||||||||||
Ashford Hospitality Trust, Inc. | 21,085 | 142 | ||||||||||
Brandywine Realty Trust | 19,328 | 352 | ||||||||||
CBL & Associates Properties, Inc. | 53,710 | 304 | ||||||||||
Cedar Realty Trust, Inc. | 17,679 | 108 | ||||||||||
Chatham Lodging Trust | 3,207 | 73 | ||||||||||
Chesapeake Lodging Trust | 2,611 | 71 | ||||||||||
Columbia Property Trust, Inc. | 22,029 | 506 | ||||||||||
CorEnergy Infrastructure Trust, Inc. | 871 | 33 | ||||||||||
Corporate Office Properties Trust | 8,040 | 235 | ||||||||||
DiamondRock Hospitality Co. | 15,897 | 179 | ||||||||||
EastGroup Properties, Inc. | 1,395 | 123 |
SHARES | MARKET VALUE (000S) | |||||||||||
Education Realty Trust, Inc. | 2,039 | $ | 71 | |||||||||
Empire State Realty Trust, Inc. ‘A’ | 3,981 | 82 | ||||||||||
First Industrial Realty Trust, Inc. | 1,678 | 53 | ||||||||||
Franklin Street Properties Corp. | 11,275 | 121 | ||||||||||
GEO Group, Inc. | 5,921 | 140 | ||||||||||
Getty Realty Corp. | 1,851 | 50 | ||||||||||
Gladstone Commercial Corp. | 1,856 | 39 | ||||||||||
Global Net Lease, Inc. | 5,255 | 108 | ||||||||||
Government Properties Income Trust | 7,139 | 132 | ||||||||||
Hersha Hospitality Trust | 6,090 | 106 | ||||||||||
InfraREIT, Inc. | 3,077 | 57 | ||||||||||
Investors Real Estate Trust | 18,559 | 105 | ||||||||||
iStar Inc. (a) | 5,233 | 59 | ||||||||||
Kite Realty Group Trust | 7,290 | 143 | ||||||||||
LaSalle Hotel Properties | 5,467 | 153 | ||||||||||
Lexington Realty Trust | 19,265 | 186 | ||||||||||
Life Storage, Inc. | 986 | 88 | ||||||||||
LTC Properties, Inc. | 798 | 35 | ||||||||||
Mack-Cali Realty Corp. | 11,965 | 258 | ||||||||||
National Health Investors, Inc. | 1,389 | 105 | ||||||||||
New Senior Investment Group, Inc. | 14,108 | 107 | ||||||||||
New York REIT, Inc. | 1,835 | 7 | ||||||||||
NorthStar Realty Europe Corp. | 3,810 | 51 | ||||||||||
Outfront Media, Inc. | 7,339 | 170 | ||||||||||
Pebblebrook Hotel Trust | 2,662 | 99 | ||||||||||
Pennsylvania Real Estate Investment Trust | 7,039 | 84 | ||||||||||
Physicians Realty Trust | 1,130 | 20 | ||||||||||
Piedmont Office Realty Trust, Inc. ‘A’ | 17,000 | 333 | ||||||||||
Potlatch Corp. | 1,976 | 99 | ||||||||||
Preferred Apartment Communities, Inc. ‘A’ | 1,863 | 38 | ||||||||||
PS Business Parks, Inc. | 1,083 | 135 | ||||||||||
QTS Realty Trust, Inc. ‘A’ | 1,109 | 60 | ||||||||||
RAIT Financial Trust | 27,283 | 10 | ||||||||||
Ramco-Gershenson Properties Trust | 9,529 | 140 | ||||||||||
Retail Opportunity Investments Corp. | 5,623 | 112 |
SHARES | MARKET VALUE (000S) | |||||||||||
Retail Properties of America, Inc. ‘A’ | 22,137 | $ | 298 | |||||||||
Rexford Industrial Realty, Inc. | 1,373 | 40 | ||||||||||
RLJ Lodging Trust | 17,969 | 395 | ||||||||||
Ryman Hospitality Properties, Inc. | 3,217 | 222 | ||||||||||
Sabra Health Care REIT, Inc. | 9,687 | 182 | ||||||||||
Select Income REIT | 3,415 | 86 | ||||||||||
Seritage Growth Properties ‘A’ | 1,744 | 71 | ||||||||||
Spirit Realty Capital, Inc. | 7,486 | 64 | ||||||||||
STAG Industrial, Inc. | 1,661 | 45 | ||||||||||
Summit Hotel Properties, Inc. | 3,892 | 59 | ||||||||||
Sunstone Hotel Investors, Inc. | 15,109 | 250 | ||||||||||
Tanger Factory Outlet Centers, Inc. | 4,526 | 120 | ||||||||||
Taubman Centers, Inc. | 2,722 | 178 | ||||||||||
Terreno Realty Corp. | 892 | 31 | ||||||||||
Tier REIT, Inc. | 8,154 | 166 | ||||||||||
Urban Edge Properties | 1,802 | 46 | ||||||||||
Urstadt Biddle Properties, Inc. ‘A’ | 2,590 | 56 | ||||||||||
Washington Prime Group, Inc. | 65,121 | 464 | ||||||||||
Washington Real Estate Investment Trust | 4,263 | 133 | ||||||||||
Xenia Hotels & Resorts, Inc. | 19,710 | 426 | ||||||||||
|
| |||||||||||
9,251 | ||||||||||||
|
| |||||||||||
Total Real Estate Investment Trusts |
| 12,610 | ||||||||||
|
| |||||||||||
Total Investments in Securities (Cost $89,819) | 114,680 | |||||||||||
Total Investments 99.2% (Cost $89,819) | $ | 114,680 | ||||||||||
Other Assets and Liabilities, net 0.8% | 894 | |||||||||||
|
| |||||||||||
Net Assets 100.0% | $ | 115,574 | ||||||||||
|
|
NOTES TO SCHEDULE OF INVESTMENTS (AMOUNTS IN THOUSANDS*):
* | A zero balance may reflect actual amounts rounding to less than one thousand. |
« | Security valued using significant unobservable inputs (Level 3). |
(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 December 31, 2017 in valuing the Fund’s assets and liabilities:
Category and Subcategory | Level 1 | Level 2 | Level 3 | Fair Value at 12/31/2017 | ||||||||||||
Investments in Securities, at Value |
| |||||||||||||||
Common Stocks | ||||||||||||||||
United Kingdom | ||||||||||||||||
Financials | $ | 211 | $ | 0 | $ | 0 | $ | 211 | ||||||||
United States | ||||||||||||||||
Consumer Discretionary | 22,938 | 0 | 6 | 22,944 | ||||||||||||
Consumer Staples | 4,215 | 0 | 0 | 4,215 | ||||||||||||
Energy | 4,035 | 0 | 0 | 4,035 | ||||||||||||
Financials | 18,011 | 0 | 0 | 18,011 | ||||||||||||
Health Care | 7,737 | 0 | 0 | 7,737 | ||||||||||||
Industrials | 20,709 | 0 | 0 | 20,709 |
Category and Subcategory | Level 1 | Level 2 | Level 3 | Fair Value at 12/31/2017 | ||||||||||||
Information Technology | $ | 12,932 | $ | 0 | $ | 0 | $ | 12,932 | ||||||||
Materials | 5,804 | 0 | 0 | 5,804 | ||||||||||||
Real Estate | 210 | 0 | 0 | 210 | ||||||||||||
Telecommunication Services | 1,296 | 0 | 0 | 1,296 | ||||||||||||
Utilities | 3,966 | 0 | 0 | 3,966 | ||||||||||||
Real Estate Investment Trusts | ||||||||||||||||
United States | ||||||||||||||||
Financials | 3,359 | 0 | 0 | 3,359 | ||||||||||||
Real Estate | 9,251 | 0 | 0 | 9,251 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Total Investments | $ | 114,674 | $ | 0 | $ | 6 | $ | 114,680 | ||||||||
|
|
|
|
|
|
|
|
There were no significant transfers among Levels 1, 2, or 3 during the period ended December 31, 2017.
See Accompanying Notes | SEMIANNUAL REPORT | DECEMBER 31, 2017 | 59 |
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 (“Parametric”) to implement all or a portion of each Fund’s investment strategies. The PIMCO RAE Fundamental Global Fund may invest substantially all of its assets in Institutional Class shares of the PIMCO RAE Fundamental US Fund, PIMCO RAE Fundamental International Fund (“International Fund”) and PIMCO RAE Fundamental Emerging Markets Fund (“Emerging Markets Fund”) (collectively, “Underlying Funds”), and equity securities that are eligible investments for the Underlying Funds. The PIMCO RAE Fundamental Global ex-US Fund may invest substantially all of its assets in Institutional Class shares of the International Fund and Emerging Markets Fund, equity securities of small companies economically tied to non-U.S. countries, and securities that are eligible investments for the International Fund and Emerging Markets Fund. The PIMCO RAE Fundamental Global Fund and PIMCO RAE Fundamental Global ex-US Fund may invest in other affiliated funds and unaffiliated funds, which may or may not be registered under the Investment Company Act of 1940 (together with the Underlying Funds, “Acquired 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 beyond a standard settlement period for
the security after the trade date. Realized gains (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 a 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, with the exception of securities with a forward starting effective date, where interest income is recorded on the accrual basis from effective 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. Paydown gains (losses) on mortgage-related and other asset-backed securities, if any, are recorded as components of interest income on the Statements of Operations. Income or short-term capital gain distributions received from registered investment companies, if any, are recorded as dividend income. Long-term capital gain distributions received from registered investment companies, if any, 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 denominated in foreign currencies 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 gain (loss) and net change in unrealized appreciation (depreciation) from investments on the Statements of Operations. The Funds may invest directly or indirectly through investments in Underlying PIMCO Funds or Acquired Funds, as applicable, 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. Realized foreign exchange gains (losses) arising from sales of spot foreign currencies, currency gains (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 (loss) on foreign currency transactions on the Statements of Operations. Net unrealized foreign
60 | PIMCO EQUITY SERIES |
Table of Contents
December 31, 2017 (Unaudited)
exchange gains (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 (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 net assets. Realized and unrealized capital gains (losses) are allocated daily based on the relative net assets of each class of the respective Fund. Class specific expenses, where applicable, currently include supervisory and administrative and distribution and servicing fees. Under certain circumstances, the per share net asset value (“NAV”) of a class of the respective 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.
(d) Distributions to Shareholders The following table shows the anticipated frequency of distributions from net investment income, if any, for each Fund.
Distribution Frequency | ||||||||||||
Fund Name | Declared | Distributed | ||||||||||
PIMCO RAE Fundamental Emerging Markets Fund | Annually | Annually | ||||||||||
PIMCO RAE Fundamental Global Fund | Annually | Annually | ||||||||||
PIMCO RAE Fundamental Global ex-US Fund | Annually | Annually | ||||||||||
PIMCO RAE Fundamental International Fund | Annually | Annually | ||||||||||
PIMCO RAE Fundamental US Fund | Annually | Annually | ||||||||||
PIMCO RAE Fundamental US Small Fund | Annually | Annually |
Net realized capital gains earned by each Fund, if any, will be distributed no less frequently than once each year.
Income distributions 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. Further, the character of investment income and capital gains may be different for certain transactions under the two methods of accounting. As a result, income distributions 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.
If a Fund estimates that a portion of one of its dividend distributions may be comprised of amounts from sources other than net investment income in accordance with its policies and good accounting practices, the Fund will notify shareholders of record of the estimated composition
of such distribution through a Section 19 Notice. For these purposes, a Fund estimates the source or sources from which a distribution is paid, to the close of the period as of which it is paid, in reference to its internal accounting records and related accounting practices. If, based on such accounting records and practices, it is estimated that a particular distribution does not include capital gains or paid-in surplus or other capital sources, a Section 19 Notice generally would not be issued. It is important to note that differences exist between a Fund’s daily internal accounting records and practices, a Fund’s financial statements presented in accordance with U.S. GAAP, and recordkeeping practices under income tax regulations. For instance, a Fund’s internal accounting records and practices may take into account, among other factors, tax-related characteristics of certain sources of distributions that differ from treatment under U.S. GAAP. Examples of such differences may include, among others, the treatment of paydowns on mortgage-backed securities purchased at a discount and periodic payments under interest rate swap contracts. Accordingly, among other consequences, it is possible that a Fund may not issue a Section 19 Notice in situations where the Fund’s financial statements prepared later and in accordance with U.S. GAAP and/or the final tax character of those distributions might later report that the sources of those distributions included capital gains and/or a return of capital. Please visit www.pimco.com for the most recent Section 19 Notice, if applicable, for additional information regarding the estimated composition of distributions. Final determination of a distribution’s tax character will be reported on Form 1099 DIV sent to shareholders for the calendar year.
Distributions classified as a tax basis return of capital, if any, are reflected on the 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 gain (loss) and/or paid in capital to more appropriately conform U.S. GAAP to tax characterizations of distributions.
(e) New Accounting Pronouncements In March 2016, the Financial Accounting Standards Board (“FASB”) issued an Accounting Standards Update (“ASU”), ASU 2016-05, which provides guidance related to the impact of derivative contract novations on certain relationships under Accounting Standards Codification (“ASC”) 815. The ASU is effective for annual periods beginning after December 15, 2016, and interim periods within those annual periods. The Funds have adopted the ASU. The implementation of the ASU did not have an impact on the Funds’ financial statements.
In August 2016, the FASB issued ASU 2016-15 which amends ASC 230 to clarify guidance on the classification of certain cash receipts and cash payments in the Statement of Cash Flows. The ASU is effective for annual periods beginning after December 15, 2017, and interim periods
SEMIANNUAL REPORT | DECEMBER 31, 2017 | 61 |
Table of Contents
Notes to Financial Statements (Cont.)
within those annual periods. At this time, management is evaluating the implications of these changes on the financial statements.
In October 2016, the U.S. Securities and Exchange Commission (“SEC”) adopted new rules and forms, and amendments to certain current rules and forms, to modernize reporting and disclosure of information by registered investment companies. The amendments to Regulation S-X require standardized, enhanced disclosure about derivatives in investment company financial statements, and also change the rules governing the form and content of such financial statements. The compliance date for these amendments was August 1, 2017. Compliance is based on reporting period-end date. Management has adopted these amendments and the changes are incorporated in the financial statements.
In November 2016, the FASB issued ASU 2016-18 which amends ASC 230 to provide guidance on the classification and presentation of changes in restricted cash and restricted cash equivalents on the Statement of Cash Flows. The ASU is effective for annual periods beginning after December 15, 2017, and interim periods within those annual periods. At this time, management is evaluating the implications of these changes on the financial statements.
In March 2017, the FASB issued ASU 2017-08 which provides guidance related to the amortization period for certain purchased callable debt securities held at a premium. The ASU is effective for annual periods beginning after December 15, 2018, and interim periods within those annual periods. The Funds have adopted the ASU. The implementation of the ASU did not have an impact on the Funds’ 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, or each of its share classes, as applicable, is determined by dividing the total value of portfolio investments and other assets, less any liabilities attributable to that Fund or class, by the total number of shares outstanding of that Fund or class.
On each day that the New York Stock Exchange (“NYSE”) is open, Fund shares are ordinarily valued as of the close of regular trading (“NYSE Close”). 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 as of which its respective NAV is calculated if the Fund closes earlier, or as permitted by the SEC.
For purposes of calculating a 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. If market value pricing is used, 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 Adviser 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. A Fund’s investments in open-end management investment companies, other than exchange-traded funds (“ETFs”), are valued at the NAVs of such investments. Open-end management investment companies may include affiliated funds.
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 of the Trust (the “Board”). 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, a 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, a 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
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the relevant market and before the NYSE Close. A Fund may utilize modeling tools provided by third-party vendors to determine fair values of foreign (non-U.S.) securities. For these purposes, any movement in the applicable reference index or instrument (“zero trigger”) between the earlier close of the applicable foreign market and the NYSE Close may be deemed to be a significant event, prompting the application of the pricing model (effectively resulting in daily fair valuations). Foreign 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 shareholders 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 value of such investments and, in turn, 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 investments 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.) investments, the value of those investments may change at times when shareholders are unable to buy or sell shares and the value of such investments will be reflected in the Fund’s next calculated NAV.
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 or persons acting at their direction. The Board has adopted methods for valuing securities and other assets in circumstances where market quotes are not readily available, and has delegated to the Adviser 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 (“Valuation Oversight Committee”), generally based on recommendations provided by the Adviser. The Adviser may consult with the Sub-Adviser or Parametric in providing such recommendations or otherwise with respect to valuation of the PIMCO Dividend and Income 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, indicative market quotations (“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 a 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 the Adviser the responsibility for monitoring significant events that may materially affect the values of a 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 a Fund (or, in each instance in this paragraph, as applicable, an Underlying PIMCO Fund or Acquired Fund) uses fair valuation to determine the value of a portfolio security or other asset for purposes of calculating its NAV, such investments 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 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 a 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 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 a 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 each Fund’s prospectus.
(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
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indication of the risks associated with investing in those securities. Levels 1, 2, and 3 of the fair value hierarchy are defined as follows:
∎ | Level 1 — Quoted prices in active markets or exchanges for identical assets and liabilities. |
∎ | 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. |
∎ | 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 into 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 realized gain (loss), unrealized appreciation (depreciation), purchases and sales, accrued discounts (premiums), and transfers into and out of the Level 3 category during the period. The end of period value 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 and liabilities categorized as Level 1 and Level 2 of the fair value hierarchy are as follows:
Common stocks, ETFs, exchange-traded notes and financial derivative instruments, such as futures contracts, rights and warrants, 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.
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 Services 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.
Investments in registered open-end investment companies (other than ETFs) 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.
Level 3 trading assets and trading liabilities, at fair value When a fair valuation method is applied by the Adviser that uses significant unobservable inputs, investments 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.
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 instruments is approximately the same as the fair value of the instrument as determined without the use of amortized cost valuation. These securities are categorized as Level 2 or Level 3 of the fair value hierarchy depending on the source of the base price.
4. SECURITIES AND OTHER INVESTMENTS
(a) Investments in Affiliates
The PIMCO RAE Fundamental Global Fund may invest substantially all of its assets in Acquired Funds and equity securities that are eligible investments for the Underlying Funds. The PIMCO RAE Fundamental Global ex-US Fund may invest substantially all of its assets in Acquired
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Funds (except the PIMCO RAE Fundamental US Fund), equity securities of small companies economically tied to non-U.S. countries, and securities that are eligible investments for the International Fund and Emerging Markets Fund. The Underlying Funds are considered to be affiliated with the PIMCO RAE Fundamental Global Fund and PIMCO RAE Fundamental Global ex-US Fund.
Each Fund may invest in the PIMCO Short Asset Portfolio and the 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 other series of registered investment companies advised by the Adviser, 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 Fees or Supervisory and Administrative Fees to the Adviser. The Central Funds are considered to be affiliated with the Funds. The tables below show the Funds’ transactions in and earnings from investments in the affiliated Funds for the period ended December 31, 2017 (amounts in thousands):
PIMCO RAE Fundamental Global Fund | ||||||||||||||||||||||||||||||||||||
Underlying PIMCO Funds | Market Value 06/30/2017 | Purchases at Cost | Proceeds from Sales | Net Realized Gain (Loss) | Change in Unrealized Appreciation (Depreciation) | Market Value 12/31/2017 | Dividend Income(1) | Realized Net Capital Gain Distributions(1) | ||||||||||||||||||||||||||||
PIMCO RAE Fundamental Emerging Markets Fund | $ | 52,176 | $ | 7,686 | $ | (12,436 | ) | $ | 1,356 | $ | 2,185 | $ | 50,967 | $ | 3,364 | $ | 588 | |||||||||||||||||||
PIMCO RAE Fundamental International Fund | 203,628 | 19,949 | (35,565 | ) | 3,316 | 13,245 | 204,573 | 5,160 | 124 | |||||||||||||||||||||||||||
PIMCO RAE Fundamental U.S. Fund | 158,436 | 29,704 | (25,882 | ) | 677 | 8,073 | 171,008 | 4,375 | 5,454 | |||||||||||||||||||||||||||
Totals | $ | 414,240 | $ | 57,339 | $ | (73,883 | ) | $ | 5,349 | $ | 23,503 | $ | 426,548 | $ | 12,899 | $ | 6,166 | |||||||||||||||||||
PIMCO RAE Fundamental Global ex-US Fund | ||||||||||||||||||||||||||||||||||||
Underlying PIMCO Funds | Market Value 06/30/2017 | Purchases at Cost | Proceeds from Sales | Net Realized Gain (Loss) | Change in Unrealized Appreciation (Depreciation) | Market Value 12/31/2017 | Dividend Income(1) | Realized Net CapitalGain Distributions(1) | ||||||||||||||||||||||||||||
PIMCO RAE Fundamental Emerging Markets Fund | $ | 16,414 | $ | 1,757 | $ | (1,737 | ) | $ | 220 | $ | 937 | $ | 17,591 | $ | 1,133 | $ | 198 | |||||||||||||||||||
PIMCO RAE Fundamental International Fund | 64,060 | 3,158 | (2,088 | ) | 111 | 5,372 | 70,613 | 1,738 | 42 | |||||||||||||||||||||||||||
Totals | $ | 80,474 | $ | 4,915 | $ | (3,825 | ) | $ | 331 | $ | 6,309 | $ | 88,204 | $ | 2,871 | $ | 240 |
(1) | The tax characterization of distributions is determined in accordance with Federal income tax regulations and may contain a return of capital. The actual tax characterization of distributions received is determined at the end of the fiscal year of the affiliated fund. See Note 2, Distributions to Shareholders, in the Notes to Financial Statements for more information. |
(b) Investments in Securities
The Funds (and where applicable, certain Acquired Funds and Underlying PIMCO Funds) may utilize the investments and strategies described below to the extent permitted by each Fund’s respective investment policies.
Real Estate Investment Trusts (“REITs”) are pooled investment vehicles that own, and typically operate, income-producing real estate. If a REIT meets certain requirements, including distributing to shareholders substantially all of its taxable income (other than net capital gains), then it is not taxed on the income distributed to shareholders. Distributions received from REITs may be characterized as income, capital gain or a return of capital. A return of capital is recorded by a Fund as a reduction to the cost basis of its investment in the REIT. REITs are subject to management fees and other expenses, and so the Funds that invest in REITs will bear their proportionate share of the costs of the REITs’ operations.
Restricted Investments are subject to legal or contractual restrictions on resale and may generally be sold privately, but may be required to
be registered or exempted from such registration before being sold to the public. Private placement securities are generally considered to be restricted except for those securities traded between qualified institutional investors under the provisions of Rule 144A of the Securities Act of 1933. Disposal of restricted investments may involve time-consuming negotiations and expenses, and prompt sale at an acceptable price may be difficult to achieve. Restricted investments held by the Funds at December 31, 2017 are disclosed in the Notes to Schedules of Investments.
Warrants are securities that are usually issued together with a debt security or preferred security and that give the holder the right to buy a proportionate amount of common stock at a specified price. Warrants are freely transferable and are often traded on major exchanges. Warrants normally have a life that is measured in years and entitle the holder to buy common stock of a company at a price that is usually higher than the market price at the time the warrant is issued. Warrants may entail greater risks than certain other types of investments. Generally, warrants do not carry the right to receive
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dividends or exercise voting rights with respect to the underlying securities, and they do not represent any rights in the assets of the issuer. In addition, their value does not necessarily change with the value of the underlying securities, and they cease to have value if they are not exercised on or before their expiration date. If the market price of the underlying stock does not exceed the exercise price during the life of the warrant, the warrant will expire worthless. Warrants may increase the potential profit or loss to be realized from the investment as compared with investing the same amount in the underlying securities. Similarly, the percentage increase or decrease in the value of an equity security warrant may be greater than the percentage increase or decrease in the value of the underlying common stock. Warrants may relate to the purchase of equity or debt securities. Debt obligations with warrants attached to purchase equity securities have many characteristics of convertible securities and their prices may, to some degree, reflect the performance of the underlying stock. Debt obligations also may be issued with warrants attached to purchase additional debt securities at the same coupon rate. A decline in interest rates would permit a Fund to sell such warrants at a profit. If interest rates rise, these warrants would generally expire with no value.
5. FINANCIAL DERIVATIVE INSTRUMENTS
The Funds (and where applicable, certain Acquired Funds and Underlying PIMCO Funds) may enter into the financial derivative instruments described below to the extent permitted by each Fund’s respective investment policies.
The following disclosures contain information on how and why the Funds use financial derivative instruments, and how financial derivative instruments affect the Funds’ financial position, results of operations and cash flows. The location and fair value amounts of these
instruments on the Statements of Assets and Liabilities and the net realized gain (loss) and net change in unrealized appreciation (depreciation) 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 net realized gain (loss) and net change in unrealized appreciation (depreciation) 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 may be engaged, 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 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 (loss). Realized gains (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 (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.
6. PRINCIPAL RISKS
The principal risks of investing in a Fund, which could adversely affect its net asset value, yield and total return, are listed below.
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 | |||||||||||||||||||||||
Risks | ||||||||||||||||||||||||||||
New/Small Fund | X | |||||||||||||||||||||||||||
Allocation | X | X | ||||||||||||||||||||||||||
Acquired Fund | X | X | ||||||||||||||||||||||||||
Equity | X | X | X | X | X | X | ||||||||||||||||||||||
Value Investing | X | X | X | X | X | X | ||||||||||||||||||||||
Foreign (Non-U.S.) Investment | X | X | X | X | ||||||||||||||||||||||||
Emerging Markets | X | X | X | X | ||||||||||||||||||||||||
Issuer Non-Diversification | X | X | X | X | X | X | ||||||||||||||||||||||
Market | X | X | X | X | X | X | ||||||||||||||||||||||
Issuer | X | X | X | X | X | X | ||||||||||||||||||||||
Credit | X | X | X | X | X | X | ||||||||||||||||||||||
Distressed Company | X | X | X |
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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 | |||||||||||||||||||||||
Currency | X | X | X | X | ||||||||||||||||||||||||
Real Estate | X | X | X | X | X | X | ||||||||||||||||||||||
Liquidity | X | X | X | X | X | X | ||||||||||||||||||||||
Leveraging | X | X | X | X | X | X | ||||||||||||||||||||||
Management | X | X | X | X | X | X | ||||||||||||||||||||||
Small Company | X | X | X | |||||||||||||||||||||||||
Derivatives | X | X | X | X | X | X | ||||||||||||||||||||||
Model | X | X | X | X | X | X |
The principal risks of investing in a Fund include risks from direct investments and/or for certain Funds that invest in Acquired Funds or Underlying PIMCO Funds, indirect exposure through investment in such Acquired Funds or Underlying PIMCO Funds. Please see “Description of Principal Risks” in a Fund’s prospectus for a more detailed description of the risks of investing in a Fund.
New/Small Fund Risk is the risk that a new or smaller Fund’s performance may not represent how a Fund is expected to or may perform in the long term. In addition, new Funds have limited operating histories for investors to evaluate and new and smaller Funds may not attract sufficient assets to achieve investment and trading efficiencies.
Allocation Risk is the risk that a Fund could lose money as a result of less than optimal or poor asset allocation decisions as to how its assets are allocated or reallocated. A Fund could miss attractive investment opportunities by underweighting markets that subsequently experience significant returns and could lose value by overweighting markets that subsequently experience significant declines.
Acquired Fund Risk is the risk that a Fund’s performance is closely related to the risks associated with the securities and other investments held by the Acquired Funds and that the ability of a Fund to achieve its investment objective will depend upon the ability of the Acquired Funds to achieve their investment objectives.
Equity Risk is the risk that the value of equity securities, such as common stocks and preferred securities, may decline due to general market conditions which are not specifically related to a particular company or to factors affecting a particular industry or industries. Equity securities generally have greater price volatility than fixed income securities.
Value Investing Risk is the risk that a value stock may decrease in price or may not increase in price as anticipated by the Sub-Adviser 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.
Foreign (Non-U.S.) Investment Risk is the risk that investing in foreign (non-U.S.) securities may result in a Fund experiencing more rapid and extreme changes in value than a fund that invests exclusively in securities of U.S. companies, due to smaller markets, differing reporting, accounting and auditing standards, increased risk of delayed settlement of portfolio transactions or loss of certificates of portfolio securities, and the risk of unfavorable foreign government actions, including nationalization, expropriation or confiscatory taxation, currency blockage, or political changes or diplomatic developments. Foreign securities may also be less liquid and more difficult to value than securities of U.S. issuers.
Emerging Markets Risk is the risk of investing in emerging market securities, primarily increased foreign (non-U.S.) investment risk.
Issuer Non-Diversification Risk is the risk of focusing investments in a small number of issuers, including being more susceptible to risks associated with a single economic, political or regulatory occurrence than a more diversified portfolio might be. Funds that are “non-diversified” may invest a greater percentage of their assets in the securities of a single issuer than funds that are “diversified”.
Market Risk is the risk that the value of securities owned by a Fund may go up or down, sometimes rapidly or unpredictably, due to factors affecting securities markets generally or particular industries.
Issuer Risk is the risk that the value of a security may decline for a reason directly related to the issuer, such as management performance, financial leverage and reduced demand for the issuer’s goods or services.
Credit Risk is the risk that a Fund could lose money if the counterparty to a derivative contract is unable or unwilling to meet its financial obligations.
Distressed Company Risk is the risk that securities of distressed companies may be subject to greater levels of market, issuer and liquidity risks. Distressed companies may be engaged in restructurings or bankruptcy proceedings, which may cause the value of their securities to fluctuate rapidly or unpredictably.
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Currency Risk is the risk that foreign (non-U.S.) currencies will change in value relative to the U.S. dollar and affect a Fund’s investments in foreign (non-U.S.) currencies or in securities that trade in, and receive revenues in, or in derivatives that provide exposure to, foreign (non-U.S.) currencies.
Real Estate Risk is the risk that a Fund’s investments in Real Estate Investment Trusts (“REITs”) or real estate-linked derivative instruments will subject a Fund to risks similar to those associated with direct ownership of real estate, including losses from casualty or condemnation, and changes in local and general economic conditions, supply and demand, interest rates, zoning laws, regulatory limitations on rents, property taxes and operating expenses. A Fund’s investments in REITs or real estate-linked derivative instruments subject it to management and tax risks. In addition, privately traded REITs subject a Fund to liquidity and valuation risk.
Liquidity Risk is the risk that a particular investment may be difficult to purchase or sell and that a Fund may be unable to sell illiquid securities at an advantageous time or price or achieve its desired level of exposure to a certain sector.
Leveraging Risk is the risk that certain transactions of a Fund, such as reverse repurchase agreements, loans of portfolio securities, and the use of when-issued, delayed delivery or forward commitment transactions, or derivative instruments, may give rise to leverage, magnifying gains and losses and causing a Fund to be more volatile than if it had not been leveraged. This means that leverage entails a heightened risk of loss.
Management Risk is the risk that the investment techniques and risk analyses applied by the Sub-Adviser will not produce the desired results and that legislative, regulatory, or tax restrictions, policies or developments may affect the investment techniques available to the Sub-Adviser and the individual portfolio manager in connection with managing a Fund. There is no guarantee that the investment objective of a Fund will be achieved.
Small Company Risk is the risk that the value of equity securities issued by small companies, ranked by fundamental size as determined by the Sub-Adviser, may go up or down, sometimes rapidly and unpredictably, due to narrow markets and limited managerial and financial resources.
Derivatives Risk is the risk of investing in derivative instruments (such as futures, swaps and structured securities), including leverage, liquidity, interest rate, market, credit and management risks, mispricing or valuation complexity. Changes in the value of the derivative may not correlate perfectly with, and may be more sensitive to market events than, the underlying asset, rate or index, and a Fund could lose more
than the initial amount invested. A Fund’s use of derivatives may result in losses to a Fund, a reduction in a Fund’s returns and/or increased volatility. Over-the-counter (“OTC”) derivatives are also subject to the risk that a counterparty to the transaction will not fulfill its contractual obligations to the other party, as many of the protections afforded to centrally-cleared derivative transactions might not be available for OTC derivatives. For derivatives traded on an exchange or through a central counterparty, credit risk resides with a Fund’s clearing broker, or the clearinghouse itself, rather than with a counterparty in an OTC derivative transaction. Changes in regulation relating to a mutual fund’s use of derivatives and related instruments could potentially limit or impact a Fund’s ability to invest in derivatives, limit a Fund’s ability to employ certain strategies that use derivatives and/or adversely affect the value of derivatives and a Fund’s performance.
Model Risk is the risk that a Fund’s investment models used in making investment allocation decisions may not adequately take into account certain factors and may result in a decline in the value of an investment in a Fund.
7. MASTER NETTING ARRANGEMENTS
A Fund may be subject to various netting arrangements (“Master Agreements”) with select counterparties. 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 present 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 most 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
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depending on the terms outlined in the applicable Master Agreement. 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 with counterparty. 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 from counterparty. 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 Schedules of Investments.
Master Securities Forward Transaction Agreements (“Master Forward Agreements”) govern certain forward settling transactions, such as TBA 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, transaction 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 Schedules of Investments.
Customer Account Agreements and related addenda govern cleared derivatives transactions such as futures, options on futures, and cleared OTC derivatives. Such transactions require posting of initial margin as determined by each relevant clearing agency which is segregated in an account at a futures commission merchant (“FCM”) registered with the Commodity Futures Trading Commission (“CFTC”). In the United States, counterparty risk may be reduced as creditors of an FCM cannot have a claim to Fund assets in the segregated account. Portability of exposure 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 unless the parties have agreed to a separate arrangement in respect of portfolio margining. The market value or accumulated unrealized appreciation (depreciation), initial margin posted, and any unsettled variation margin as of period end are disclosed in the Notes to Schedules of Investments.
International Swaps and Derivatives Association, Inc. Master Agreements and Credit Support Annexes (“ISDA Master Agreements”) govern bilateral OTC derivative transactions entered into by a Fund with select counterparties. ISDA Master Agreements maintain provisions for general obligations, representations, agreements, collateral posting 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 Schedules of Investments.
8. 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 in note (b) 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 Fees and Supervisory and Administrative Fees for all classes, as applicable, are charged at the annual rate as noted in the following table (calculated as a percentage of each Fund’s average daily net assets attributable to each class):
Investment Advisory Fee | Supervisory and Administrative Fee | |||||||||||||||||||||||||||
Fund Name | All Classes | Institutional Class | Class P | Class A | Class C | |||||||||||||||||||||||
PIMCO RAE Fundamental Emerging Markets Fund(1) | 0.50% | 0.45% | 0.55% | 0.55% | 0.55% | |||||||||||||||||||||||
PIMCO RAE Fundamental Global Fund(1)(2) | 0.40% | 0.30% | 0.40% | 0.40% | 0.40% | |||||||||||||||||||||||
PIMCO RAE Fundamental Global ex-US Fund(1)(2) | 0.40% | 0.35% | 0.45% | 0.45% | 0.45% | |||||||||||||||||||||||
PIMCO RAE Fundamental International Fund(3) | 0.30% | 0.30% | 0.40% | 0.40% | 0.40% | |||||||||||||||||||||||
PIMCO RAE Fundamental US Fund(3) | 0.25% | 0.25% | 0.35% | 0.40% | 0.40% | |||||||||||||||||||||||
PIMCO RAE Fundamental US Small Fund(3) | 0.35% | 0.25% | 0.35% | 0.40% | 0.40% |
(1) | PIMCO has contractually agreed, through October 31, 2018, to reduce its advisory fee by 0.20% of the average daily net assets of the Fund. |
(2) | PIMCO has contractually agreed, through October 31, 2018, to waive, first, the advisory fee and, second, the supervisory and administrative fee it receives from the Fund in an amount equal to the expenses attributable to the Management Fees of Underlying Funds indirectly incurred by the Fund in connection with its investments in Underlying Funds, to the extent the Fund’s Management Fees are greater than or equal to the Management Fees of the Underlying 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. |
(3) | PIMCO has contractually agreed, through October 31, 2018, to reduce its advisory fee by 0.10% of the average daily net assets of the Fund. |
(c) Distribution and Servicing Fees PIMCO Investments LLC, 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 and Class C shares of the Trust pursuant to Rule 12b-1 under the Act. In connection with the distribution of Class C shares of the Trust, the Distributor receives distribution fees from the Trust of up to 0.75% for Class C shares, and in connection with personal services rendered to Class A and Class C 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 and Class C shares (percentages reflect annual rates of the average daily net assets attributable to the applicable class).
The Trust paid distribution and servicing fees at effective rates as noted in the following table (calculated as a percentage of each Fund’s average daily net assets attributable to each class):
Allowable Rate | ||||||||||||
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 shares. For the period ended December 31, 2017, the Distributor retained $40,489 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, 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.
Each Trustee, other than those affiliated with PIMCO or its affiliates, 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 and $750 for each Board meeting attended telephonically, 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, so that each co-lead individually receives an additional retainer of $1,000) 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
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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 Pursuant to the Expense Limitation Agreement, PIMCO has agreed to waive a portion of the Funds’ Supervisory and Administrative Fee, or reimburse each Fund, to the extent that each Fund’s organizational expenses and pro rata share of Trustee Fees exceed 0.0049%, the “Expense Limit” (calculated as a percentage of each Fund’s average daily net assets attributable to each class). The Expense 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.
Pursuant to the Fee Wavier Agreement, PIMCO contractually agreed to waive a portion of the Advisory Fee as set forth in the following table
(calculated as a percentage of each Fund’s average daily net assets). The Fee Waiver 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. The waiver is reflected in the Statements of Operations as a component of Waiver and/or Reimbursement by PIMCO.
Fund Name | Fee Waiver | Expiration Date | ||||||||||
PIMCO RAE Fundamental Emerging Markets Fund | 0.20% | 10/31/2018 | ||||||||||
PIMCO RAE Fundamental Global Fund | 0.20% | 10/31/2018 | ||||||||||
PIMCO RAE Fundamental Global ex-US Fund | 0.20% | 10/31/2018 | ||||||||||
PIMCO RAE Fundamental International Fund | 0.10% | 10/31/2018 | ||||||||||
PIMCO RAE Fundamental US Fund | 0.10% | 10/31/2018 | ||||||||||
PIMCO RAE Fundamental US Small Fund | 0.10% | 10/31/2018 |
Under certain conditions, PIMCO may be reimbursed for these waived amounts in future periods, not to exceed thirty-six months after the waiver. The total recoverable amounts to PIMCO (from the Fee Waiver Agreement and Expense Limitation Agreement combined) at December 31, 2017, were as follows (amounts in thousands):
Expiring within | ||||||||||||||||||||
Fund Name | 12 months | 13-24 months | 25-36 months | Total | ||||||||||||||||
PIMCO RAE Fundamental Emerging Markets Fund | $ | 146 | $ | 2,343 | $ | 3,322 | $ | 5,811 | ||||||||||||
PIMCO RAE Fundamental Global Fund | 105 | 611 | 858 | 1,574 | ||||||||||||||||
PIMCO RAE Fundamental Global ex-US Fund | 140 | 134 | 167 | 441 | ||||||||||||||||
PIMCO RAE Fundamental International Fund | 128 | 278 | 477 | 883 | ||||||||||||||||
PIMCO RAE Fundamental US Fund | 279 | 586 | 663 | 1,528 | ||||||||||||||||
PIMCO RAE Fundamental US Small Fund | 108 | 100 | 115 | 323 |
(f) Acquired Fund Fees and Expenses Acquired Fund expenses will vary with changes in the expenses of the Acquired Funds, as well as the allocation of the Funds’ 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.
PIMCO has contractually agreed, through October 31, 2018, to waive, first, the Investment Advisory Fee and, second, the Supervisory and Administrative Fees it receives from the PIMCO RAE Fundamental Global Fund in an amount equal to the expenses attributable to the Investment 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 Investment Advisory Fee and Supervisory and Administrative Fees are greater than or equal to the Investment Advisory Fee 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, 2018, to waive, first, the Investment Advisory Fee and, second, the Supervisory and Administrative Fees it receives from the PIMCO RAE Fundamental Global ex-US Fund in an amount equal to the expenses attributable to the Investment 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 Investment Advisory Fee and Supervisory and Administrative Fees are greater than or equal to the Investment Advisory Fee 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.
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The waivers are reflected on the Statements of Operations as a component of Waiver and/or Reimbursement by PIMCO. For the period ended December 31, 2017, the amounts were (in thousands):
Fund Name | Waived Fees | |||||||
PIMCO RAE Fundamental Global Fund | $ | 1,029 | ||||||
PIMCO RAE Fundamental Global ex-US Fund | 234 |
9. RELATED PARTY TRANSACTIONS
The Adviser, Administrator, and Distributor are related parties. Fees paid to these parties are disclosed in Note 8, Fees and Expenses, and the accrued related party fee amounts are disclosed on the Statements of Assets and Liabilities.
10. 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.
11. 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 may involve correspondingly greater transaction costs 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 transaction 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 December 31, 2017, 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 | $ | 477,034 | $ | 258,501 | ||||||||||||
PIMCO RAE Fundamental Global Fund | 0 | 0 | 57,339 | 73,883 | ||||||||||||||||
PIMCO RAE Fundamental Global ex-US Fund | 0 | 0 | 4,915 | 3,825 | ||||||||||||||||
PIMCO RAE Fundamental International Fund | 0 | 0 | 82,031 | 84,331 | ||||||||||||||||
PIMCO RAE Fundamental US Fund | 0 | 0 | 115,783 | 140,146 | ||||||||||||||||
PIMCO RAE Fundamental US Small Fund | 0 | 0 | 15,782 | 16,387 | ||||||||||||||||
† | A zero balance may reflect actual amounts rounding to less than one thousand. |
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12. SHARES OF BENEFICIAL INTEREST
The Trust may issue an unlimited number of shares of beneficial interest with a $0.001 par value. Changes in shares of beneficial interest were as follows (shares and amounts in thousands†):
PIMCO RAE Fundamental Emerging Markets Fund | PIMCO RAE Fundamental Global Fund | PIMCO RAE Fundamental Global ex-US Fund | ||||||||||||||||||||||||||||||||||||||||||||||||
Six Months Ended 12/31/2017 | Year Ended 06/30/2017 | Six Months Ended 12/31/2017 | Year Ended 06/30/2017 | Six Months Ended 12/31/2017 | Year Ended 06/30/2017 | |||||||||||||||||||||||||||||||||||||||||||||
Shares | Amount | Shares | Amount | Shares | Amount | Shares | Amount | Shares | Amount | Shares | Amount | |||||||||||||||||||||||||||||||||||||||
Receipts for shares sold | ||||||||||||||||||||||||||||||||||||||||||||||||||
Institutional Class | 20,560 | $ | 235,903 | 25,177 | $ | 257,984 | 4,776 | $ | 55,084 | 8,572 | $ | 83,162 | 35 | $ | 386 | 374 | $ | 3,637 | ||||||||||||||||||||||||||||||||
Class P | 525 | 6,147 | 1,697 | 17,758 | 57 | 649 | 357 | 3,687 | 11 | 123 | 33 | 334 | ||||||||||||||||||||||||||||||||||||||
Class A | 224 | 2,631 | 559 | 5,606 | 20 | 226 | 71 | 731 | 27 | 307 | 69 | 671 | ||||||||||||||||||||||||||||||||||||||
Class C | 124 | 1,431 | 107 | 1,103 | 27 | 303 | 97 | 964 | 36 | 398 | 66 | 635 | ||||||||||||||||||||||||||||||||||||||
Issued as reinvestment of distributions | ||||||||||||||||||||||||||||||||||||||||||||||||||
Institutional Class | 12,803 | 144,230 | 4,256 | 40,860 | 2,182 | 25,015 | 1,225 | 12,217 | 300 | 3,392 | 180 | 1,683 | ||||||||||||||||||||||||||||||||||||||
Class P | 112 | 1,259 | 10 | 91 | 21 | 235 | 1 | 5 | 2 | 19 | 0 | 1 | ||||||||||||||||||||||||||||||||||||||
Class A | 32 | 361 | 4 | 40 | 6 | 67 | 2 | 17 | 3 | 35 | 0 | 4 | ||||||||||||||||||||||||||||||||||||||
Class C | 15 | 166 | 1 | 9 | 9 | 100 | 3 | 31 | 5 | 54 | 1 | 12 | ||||||||||||||||||||||||||||||||||||||
Cost of shares redeemed | ||||||||||||||||||||||||||||||||||||||||||||||||||
Institutional Class | (3,738 | ) | (43,805 | ) | (47,996 | ) | (491,118 | ) | (7,882 | ) | (89,604 | ) | (2,141 | ) | (22,369 | ) | (271 | ) | (3,056 | ) | (296 | ) | (2,660 | ) | ||||||||||||||||||||||||||
Class P | (544 | ) | (6,307 | ) | (557 | ) | (5,597 | ) | (33 | ) | (370 | ) | (73 | ) | (759 | ) | 0 | 0 | (1 | ) | (15 | ) | ||||||||||||||||||||||||||||
Class A | (22 | ) | (254 | ) | (401 | ) | (4,097 | ) | (23 | ) | (264 | ) | (10 | ) | (104 | ) | 0 | (1 | ) | (1 | ) | (10 | ) | |||||||||||||||||||||||||||
Class C | (40 | ) | (469 | ) | (18 | ) | (177 | ) | (20 | ) | (223 | ) | (33 | ) | (337 | ) | (6 | ) | (67 | ) | (10 | ) | (98 | ) | ||||||||||||||||||||||||||
Net increase (decrease) resulting from Fund share transactions | 30,051 | $ | 341,293 | (17,161 | ) | $ | (177,538 | ) | (860 | ) | $ | (8,782 | ) | 8,071 | $ | 77,245 | 142 | $ | 1,590 | 415 | $ | 4,194 | ||||||||||||||||||||||||||||
PIMCO RAE Fundamental International Fund | PIMCO RAE Fundamental US Fund | PIMCO RAE Fundamental US Small Fund | ||||||||||||||||||||||||||||||||||||||||||||||||
Six Months Ended 12/31/2017 | Year Ended 06/30/2017 | Six Months Ended 12/31/2017 | Year Ended 06/30/2017 | Six Months Ended 12/31/2017 | Year Ended 06/30/2017 | |||||||||||||||||||||||||||||||||||||||||||||
Shares | Amount | Shares | Amount | Shares | Amount | Shares | Amount | Shares | Amount | Shares | Amount | |||||||||||||||||||||||||||||||||||||||
Receipts for shares sold | ||||||||||||||||||||||||||||||||||||||||||||||||||
Institutional Class | 4,075 | $ | 45,479 | 19,815 | $ | 189,367 | 5,434 | $ | 61,787 | 13,507 | $ | 139,095 | 138 | $ | 1,617 | 850 | $ | 9,150 | ||||||||||||||||||||||||||||||||
Class P | 47 | 509 | 806 | 7,617 | 119 | 1,298 | 762 | 7,885 | 44 | 489 | 356 | 3,909 | ||||||||||||||||||||||||||||||||||||||
Class A | 185 | 2,024 | 28 | 257 | 118 | 1,298 | 449 | 4,662 | 139 | 1,578 | 647 | 7,142 | ||||||||||||||||||||||||||||||||||||||
Class C | 54 | 581 | 32 | 304 | 48 | 512 | 440 | 4,491 | 13 | 147 | 44 | 479 | ||||||||||||||||||||||||||||||||||||||
Issued as reinvestment of distributions | ||||||||||||||||||||||||||||||||||||||||||||||||||
Institutional Class | 1,176 | 13,088 | 815 | 7,429 | 3,244 | 36,389 | 2,784 | 28,874 | 401 | 4,636 | 106 | 1,184 | ||||||||||||||||||||||||||||||||||||||
Class P | 11 | 125 | 17 | 152 | 42 | 468 | 29 | 305 | 17 | 197 | 2 | 22 | ||||||||||||||||||||||||||||||||||||||
Class A | 6 | 62 | 0 | 1 | 40 | 444 | 23 | 236 | 32 | 371 | 4 | 39 | ||||||||||||||||||||||||||||||||||||||
Class C | 2 | 20 | 1 | 9 | 24 | 267 | 22 | 226 | 2 | 27 | 0 | 3 | ||||||||||||||||||||||||||||||||||||||
Cost of shares redeemed | ||||||||||||||||||||||||||||||||||||||||||||||||||
Institutional Class | (5,452 | ) | (59,956 | ) | (3,164 | ) | (30,253 | ) | (8,411 | ) | (92,104 | ) | (9,645 | ) | (99,837 | ) | (155 | ) | (1,794 | ) | (1,256 | ) | (13,718 | ) | ||||||||||||||||||||||||||
Class P | (97 | ) | (1,052 | ) | (457 | ) | (4,350 | ) | (158 | ) | (1,731 | ) | (398 | ) | (4,142 | ) | (33 | ) | (386 | ) | (163 | ) | (1,775 | ) | ||||||||||||||||||||||||||
Class A | (2 | ) | (25 | ) | (1 | ) | (11 | ) | (102 | ) | (1,105 | ) | (86 | ) | (885 | ) | (232 | ) | (2,633 | ) | (61 | ) | (666 | ) | ||||||||||||||||||||||||||
Class C | (21 | ) | (232 | ) | (19 | ) | (176 | ) | (125 | ) | (1,362 | ) | (117 | ) | (1,197 | ) | (12 | ) | (138 | ) | (20 | ) | (214 | ) | ||||||||||||||||||||||||||
Net increase (decrease) resulting from Fund share transactions | (16 | ) | $ | 623 | 17,873 | $ | 170,346 | 273 | $ | 6,161 | 7,770 | $ | 79,713 | 354 | $ | 4,111 | 509 | $ | 5,555 | |||||||||||||||||||||||||||||||
† | A zero balance may reflect actual amounts rounding to less than one thousand. |
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The following table discloses the number of shareholders that own 10% or more of the outstanding shares of a Fund along with their respective percent ownership, if any, for the period ended December 31, 2017. Some of these shareholders may be considered related parties, which 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.
Shareholders that own 10% or more of outstanding shares | Total percentage of portfolio held by shareholders that own 10% or more of outstanding shares | |||||||||||||||||
Non-Related Parties | Related Parties | Non-Related Parties | Related Parties | |||||||||||||||
RAE Fundamental Emerging Markets Fund | 0 | 2 | 0 | % | 83 | % | ||||||||||||
RAE Fundamental Global EX-US Fund | 2 | 0 | 91 | % | 0 | % | ||||||||||||
RAE Fundamental Global Fund | 1 | 0 | 19 | % | 0 | % | ||||||||||||
RAE Fundamental International Fund | 0 | 3 | 0 | % | 66 | % | ||||||||||||
RAE Fundamental US Fund | 0 | 1 | 0 | % | 25 | % | ||||||||||||
RAE Fundamental US Small Fund | 2 | 0 | 58 | % | 0 | % |
13. REGULATORY AND LITIGATION MATTERS
The Funds are not named as defendants in any material litigation or arbitration proceedings and are not aware of any material litigation or claim pending or threatened against them.
The foregoing speaks only as of the date of this report.
14. 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.
A Fund 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 December 31, 2017, 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. federal, state, and local tax returns as required. The Funds’ tax returns are subject to examination by relevant tax
authorities until expiration of the applicable statute of limitations, which is generally three years after the filing of the tax return but which can be extended to six years in certain circumstances. Tax returns for open years have incorporated no uncertain tax positions that require a provision for income taxes.
Under the Regulated Investment Company Modernization 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 their last fiscal year ended June 30, 2017, the Funds had the following post-effective capital losses with no expiration (amounts in thousands†)(1)
Short-Term | Long-Term | |||||||||||
PIMCO RAE Fundamental Emerging Markets Fund* | $ | 3,635 | $ | 16,261 | ||||||||
PIMCO RAE Fundamental Global Fund | 0 | 0 | ||||||||||
PIMCO RAE Fundamental Global ex-US Fund | 212 | 277 | ||||||||||
PIMCO RAE Fundamental International Fund | 1,564 | 364 | ||||||||||
PIMCO RAE Fundamental US Fund | 0 | 0 | ||||||||||
PIMCO RAE Fundamental US Small Fund | 0 | 0 |
† | A zero balance may reflect actual amounts rounding to less than one thousand. |
(1) | *Portion of amount represents realized loss and recognized built-in loss, which is carried forward to future years to offset future realized gain subject to certain limitations. |
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December 31, 2017 (Unaudited)
As of December 31, 2017, 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)(1) | |||||||||||||||||
PIMCO RAE Fundamental Emerging Markets Fund | $ | 1,485,055 | $ | 499,040 | $ | (15,734 | ) | $ | 483,306 | |||||||||||
PIMCO RAE Fundamental Global Fund | 355,571 | 70,977 | 0 | 70,977 | ||||||||||||||||
PIMCO RAE Fundamental Global ex-US Fund | 77,338 | 10,866 | 0 | 10,866 | ||||||||||||||||
PIMCO RAE Fundamental International Fund | 427,057 | 104,110 | (5,070 | ) | 99,040 | |||||||||||||||
PIMCO RAE Fundamental US Fund | 503,293 | 186,988 | (12,487 | ) | 174,501 | |||||||||||||||
PIMCO RAE Fundamental US Small Fund | 91,726 | 27,370 | (4,416 | ) | 22,954 |
† | A zero balance may reflect actual amounts rounding to less than one thousand. |
(1) | Primary differences, if any, between book and tax net unrealized appreciation (depreciation) are attributable to wash sale loss deferrals for Federal income tax purposes. |
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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 | REIT | Real Estate Investment Trust | SP - GDR | Sponsored Global Depositary Receipt | |||||
GDR | Global Depositary Receipt | SP - ADR | Sponsored American Depositary Receipt | TBA | To-Be-Announced |
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Table of Contents
Approval of Investment Advisory Contract and Other Agreements
(Unaudited)
Approval of Renewal of the Investment Advisory Contract, Sub-Advisory Agreement, Portfolio Implementation Agreement and Second Amended and Restated Supervision and Administration Agreement
At a meeting held on August 23, 2017, the Board of Trustees (the “Board”) of PIMCO Equity Series (the “Trust”), including the Trustees who are not “interested persons” of the Trust under the Investment Company Act of 1940, as amended (the “Independent Trustees”), considered and unanimously approved the renewal of the Investment Advisory Contract (the “Investment Advisory Contract”) between the Trust, on behalf of each of the Trust’s series (the “Funds”), and Pacific Investment Management Company LLC (“PIMCO”) for an additional one-year term through August 31, 2018. The Board also considered and unanimously approved the renewal of the Second Amended and Restated Supervision and Administration Agreement (the “Supervision and Administration Agreement” and together with the Investment Advisory Contract, the “Agreements”) between the Trust, on behalf of the Funds, and PIMCO for an additional one-year term through August 31, 2018. In addition, the Board considered and unanimously approved the renewal of the: (i) Sub-Advisory Agreement (the “Sub-Advisory Agreement”) between PIMCO, on behalf of PIMCO RAE Fundamental Emerging Markets Fund, PIMCO RAE Fundamental Global ex-US Fund, PIMCO RAE Fundamental Global Fund, PIMCO RAE Fundamental International Fund, PIMCO RAE Fundamental US Fund, PIMCO RAE Fundamental US Small Fund and the equity sleeve of the PIMCO Dividend and Income Fund (the “RAE Funds”), each a series of the Trust, and Research Affiliates, LLC (“Research Affiliates”); and (ii) Portfolio Implementation Agreement (the “Portfolio Implementation Agreement”) among PIMCO, on behalf of the RAE Funds, each a series of the Trust, Research Affiliates and Parametric Portfolio Associates LLC (“Parametric”), each for an additional one-year term through August 31, 2018.
The information, material factors and conclusions that formed the basis for the Board’s approvals are summarized below.
1. INFORMATION RECEIVED
(a) Materials Reviewed: During the course of the past year, the Trustees received a wide variety of materials relating to the services provided by PIMCO, Research Affiliates and Parametric to the Trust. At each of its quarterly meetings, the Board reviewed the Funds’ investment performance and a significant amount of information relating to Fund operations, including shareholder services, valuation and custody, the Funds’ compliance program and other information relating to the nature, extent and quality of services provided by PIMCO, Research Affiliates and Parametric to the Trust and each of the Funds, as applicable. In considering whether to approve the renewal of the Agreements, the Sub-Advisory Agreement, and the Portfolio
Implementation Agreement, the Board reviewed additional information, including, but not limited to, comparative industry data with regard to investment performance, advisory and supervisory and administrative fees and expenses, financial information for PIMCO and, where relevant, Research Affiliates and Parametric, information regarding the profitability to PIMCO of its relationship with the Funds, information about the personnel providing investment management services, other advisory services and supervisory and administrative services to the Funds, and information about the fees charged and services provided to other clients with similar investment mandates as the Funds, where applicable. In addition, the Board reviewed materials provided by counsel to the Trust and the Independent Trustees, which included, among other things, memoranda outlining legal duties of the Board in considering the renewal of the Agreements, the Sub-Advisory Agreement and the Portfolio Implementation Agreement.
(b) Review Process: In connection with considering the renewal of the Agreements, the Sub-Advisory Agreement and the Portfolio Implementation Agreement, the Board reviewed written materials prepared by PIMCO and, where applicable, Research Affiliates and Parametric in response to requests from counsel to the Trust and the Independent Trustees encompassing a wide variety of topics. The Board requested and received assistance and advice regarding, among other things, applicable legal standards from counsel to the Trust and the Independent Trustees, and reviewed comparative fee and performance data prepared at the Board’s request by Broadridge Financial Solutions, Inc. (“Lipper”), an independent provider of investment company performance information and fee and expense data. The Board received presentations on matters related to the Agreements, the Sub-Advisory Agreement and the Portfolio Implementation Agreement and met both as a full Board and in a separate session of the Independent Trustees, without management present, at the August 23, 2017 meeting. The Independent Trustees also conducted an in-person meeting with counsel to the Trust and the Independent Trustees on July 21, 2017 to discuss the Lipper Report, as defined below, and certain aspects of the 2017 15(c) materials including, but not limited to, the Funds’ performance, the Funds’ advisory fees and total expense ratios, the comparative information with respect to fees and performance included in the Lipper Report, and the unified fee structure employed by the Trusts.
The approval determinations were made on the basis of each Trustee’s business judgment after consideration and evaluation 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 renewal of the Agreements, the Sub-Advisory Agreement, and the Portfolio Implementation Agreement, the Board did not identify any single factor or particular information that, in
SEMIANNUAL REPORT | DECEMBER 31, 2017 | 77 |
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Approval of Investment Advisory Contract and Other Agreements (Cont.)
isolation, was controlling. The discussion below is intended to summarize the broad factors and information that figured prominently in the Board’s consideration of the renewal of the Agreements, the Sub-Advisory Agreement and the Portfolio Implementation Agreement, but is not intended to summarize 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 PIMCO’s investment management process, including: the experience, capability and integrity of its senior management and other personnel; the overall financial strength and stability of its organization; and the ability of its organizational structure to address changes in the Funds’ asset levels. The Board also considered the various services in addition to portfolio management that PIMCO provides under the Investment Advisory Contract. The Board noted that PIMCO makes available to its investment professionals a variety of resources and systems relating to investment management, compliance, trading, performance and portfolio accounting. The Board also noted PIMCO’s commitment to investing in information technology and infrastructure supporting investment, compliance and risk management, as well as PIMCO’s continuing efforts to attract, retain and promote qualified personnel, including personnel with relevant equities experience, and to maintain and enhance its resources and systems. The Board considered PIMCO’s policies, procedures and systems reasonably designed to assure compliance with applicable laws and regulations and its commitment to further developing and strengthening these programs, its oversight of matters that may involve conflicts of interest between the Funds’ investments and those of other accounts managed by PIMCO, and its efforts to keep the Trustees informed about matters relevant to the Funds and their shareholders. The Board also considered PIMCO’s continuous investment in new disciplines and talented personnel, which has enhanced PIMCO’s services to the Funds and has allowed PIMCO to introduce innovative new funds over time.
The Trustees considered that PIMCO has continued to strengthen the process it uses to actively manage counterparty risk and to assess the financial stability of counterparties with which the Funds do business, to manage collateral and to protect the Funds from an unforeseen deterioration in the creditworthiness of trading counterparties. The Trustees noted that, consistent with its fiduciary duty, PIMCO executes transactions through a competitive best execution process and uses only those counterparties that meet its stringent and monitored criteria. The Trustees considered that PIMCO’s collateral management team utilizes a counterparty risk system to analyze portfolio-level exposure and collateral being exchanged with counterparties.
In addition, the Trustees considered new services and service enhancements that PIMCO has implemented since the Board renewed the Agreements in 2016, including, but not limited to: continuing enhancement of its analytics and technology systems by upgrading hardware and software; enhancing data processing and security and development of tools and applications to support Portfolio Management, Compliance, Analytics, Risk Management, Client Reporting and Customer Relationship Management; continuing investment in its enterprise risk management function including PIMCO’s cybersecurity program; developing the PIMCO Global Advisory Board and continuing to hire new portfolio managers; expanding the Funds and Operations Group global operating model; developing a website monitoring application to ensure accurate data content; adding staff to fund accounting and financial reporting; engaging a third party to perform an independent assessment of PIMCO’s proprietary accounting application and enhancing the same system to provide portfolio managers with more timely and high quality income reporting; establishing a Fund Treasurer’s Office; developing a global tax management application that will enable investment professionals to access foreign market and security tax information on a real-time basis; enhancing reporting of tax reporting for portfolio managers for income products with improved transparency on tax factors impacting income generation and dividend yield; redesigning shareholder statements to be more user friendly and enable e-delivery; and continuing expansion of the pricing portal and the proprietary performance reconciliation tool.
Similarly, the Board considered the sub-advisory services provided by Research Affiliates to the RAE Funds and noted that it had met with senior personnel from Research Affiliates during the year. The Board further considered PIMCO’s oversight of Research Affiliates in connection with Research Affiliates providing sub-advisory services to the RAE Funds. The Board also considered Research Affiliates’ supervisory responsibilities with respect to Parametric’s provision of portfolio implementation services to the RAE Funds. The Board further considered the depth and quality of Research Affiliates’ investment management and research capabilities, the experience and capabilities of its portfolio management personnel and the overall financial strength of the organization.
In addition, the Board considered the portfolio implementation and other operational services provided by Parametric to the RAE Funds by, among other things, effecting portfolio transactions on behalf of the RAE Funds. The Board further considered PIMCO’s oversight of Parametric in connection with Parametric providing portfolio implementation services. The Board also considered information about Parametric’s personnel responsible for providing services to the RAE Funds under the Portfolio Implementation Agreement. The Board also considered the nature and quality of Parametric’s trading, risk
78 | PIMCO EQUITY SERIES |
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(Unaudited)
management, and compliance capabilities and resources, including Parametric’s policies and procedures regarding trade aggregation and allocation, which are integral parts of its role as portfolio implementer.
Ultimately, the Board concluded that the nature, extent and quality of services provided or procured by PIMCO under the Agreements, provided by Research Affiliates under the Sub-Advisory Agreement, and provided by Parametric under the Portfolio Implementation Agreement are likely to continue to benefit the Funds and their shareholders, as applicable.
(b) Other Services: The Board also considered the nature, extent and quality of supervisory and administrative services provided by PIMCO to the Funds under the Supervision and Administration Agreement. The Board considered the terms of the Supervision and Administration Agreement, under which the Trust pays for the supervisory and administrative services provided pursuant to that agreement under what is essentially an all-in fee structure (the “unified fee”). In return, PIMCO provides or procures certain supervisory and administrative services and bears the costs of various third party services required by the Funds, including audit, custodial, portfolio accounting, legal, transfer agency, sub-accounting and printing costs. The Board noted that the scope and complexity, as well as the costs, of the supervisory and administrative services provided by PIMCO under the Supervision and Administration Agreement continue to increase. The Board considered PIMCO’s provision of supervisory and administrative services 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 available in the market.
Ultimately, the Board concluded that the nature, extent and quality of the services provided or procured by PIMCO has benefited, and will likely continue to benefit, the Funds and their shareholders.
3. INVESTMENT PERFORMANCE
The Board reviewed information from PIMCO concerning the Funds’ performance, as available, over short- and long-term periods ended March 31, 2017 and other performance data, as available, over short- and long-term periods ended June 30, 2017 (the “PIMCO Report”) and from Lipper concerning the Funds’ performance, as available, over short- and long-term periods ended March 31, 2017 (the “Lipper Report”). The Board considered information regarding both the short- and long-term investment performance of each Fund relative to its peer group and relevant benchmark index as provided to the Board in advance of each of its quarterly meetings throughout the year, including the PIMCO Report and Lipper Report, which were provided in advance of the August 23, 2017 meeting.
The Board noted that, according to Lipper, certain Funds had underperformed in comparison to their respective peer groups or
benchmark indexes, or both, over short- and long-term periods. The Board discussed with PIMCO the reasons for the underperformance of certain Funds over short- and long-term periods. The Board also discussed actions that have been taken by PIMCO to attempt to improve performance and took note of PIMCO’s plans to monitor performance going forward.
The Board ultimately concluded, within the context of all of its considerations in connection with the Agreements, that PIMCO’s performance record and process in managing the Funds indicates that its continued management is likely to benefit the Funds and their shareholders, and merits the approval of the renewal of the Agreements.
4. ADVISORY FEES, SUPERVISORY AND ADMINISTRATIVE FEES AND TOTAL EXPENSES
The Board considered that PIMCO seeks to price funds to scale at the outset with reference to the total expense ratios of the respective Lipper median, if available, while providing a fee premium for innovative investment offerings. PIMCO reported to the Board that, in proposing fees for any Fund or class of shares, it considers a number of factors, including, but not limited to, the type and complexity of the services provided, the cost of providing services, the risk assumed by PIMCO in the development of products and 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 Fund returns to current and potential investors. Fees charged to or proposed for different Funds for advisory services and supervisory and administrative services may vary in light of these various factors. The Board also considered that PIMCO reviews the Funds’ fee levels and carefully considers changes where appropriate due to competitive positioning considerations, observed long-term notable underperformance and significant misalignments with the level or quality of services being provided or a change in the overall strategic positioning of the Funds.
The Board reviewed the advisory fees, supervisory and administrative fees and total expenses of the Funds (each as a percentage of average net assets) and compared such amounts with the average and median fee and expense levels of other similar funds. The Board also reviewed information relating to the sub-advisory fees paid to Research Affiliates with respect to applicable Funds, taking into account that PIMCO compensates Research Affiliates from the advisory fees paid by such Funds to PIMCO. 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 also considered that PIMCO reviews the Funds’ fee levels and carefully considers changes where appropriate, and noted in particular, the reduction in the advisory fee for the PIMCO Dividend and Income Fund effective June 16, 2016. The
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Approval of Investment Advisory Contract and Other Agreements (Cont.)
Board noted that PIMCO had contractually agreed, through October 31, 2017, to reduce its advisory fee by amounts shown in the table below: This contractual agreement was subsequently continued through October 31, 2018.
PIMCO RAE Fundamental Emerging Markets Fund | 0.20% | |||||||
PIMCO RAE Fundamental Global Fund | 0.20% | |||||||
PIMCO RAE Fundamental Global ex-US Fund | 0.20% | |||||||
PIMCO RAE Fundamental International Fund | 0.10% | |||||||
PIMCO RAE Fundamental US Fund | 0.10% | |||||||
PIMCO RAE Fundamental US Small Fund | 0.10% |
The Board also reviewed data comparing the Funds’ advisory fees to the standard and negotiated fee rates PIMCO charges to separate accounts and to other sub-advised clients with similar investment strategies, including differences in advisory services provided. The Board discussed comparisons of fees for Funds with fees for separate accounts and/or PIMCO private/alternative funds with similar investment strategies, noting that for certain Funds, there were no appropriate comparisons because PIMCO did not manage comparable separate accounts at the time that the Board considered the Agreements. The Board noted that the advisory fees (or management fees, where applicable) for most Funds were similar to the fee rates charged to other investment companies with the same investment strategies as the Funds.
Regarding advisory fees charged by PIMCO in its capacity as sub-adviser to third-party/unaffiliated funds, the Trustees took into account that such fees may be lower than the fees charged by PIMCO to serve as adviser to the Funds. The Trustees also took into account that there are various reasons for any such differences in fees, including, but not limited to, the fact that PIMCO may be subject to varying levels of entrepreneurial risk and regulatory requirements, differing legal liabilities on a contract-by-contract basis and different servicing requirements when PIMCO does not serve as the sponsor of a fund and is not principally responsible for all aspects of a fund’s investment program and operations as compared to when PIMCO serves as investment adviser and sponsor. In considering the fees paid by the Funds, the Board noted that retail investors in the Funds receive the benefit of PIMCO’s advisory services at the same advisory fee rates as institutional investors in the Funds.
The Board considered the Funds’ supervisory and administrative fees, comparing them to similar funds in the report supplied by Lipper. The Board also considered that as the Funds’ business has become increasingly complex and the number of Funds has grown over time, PIMCO has provided an increasingly broad array of fund supervisory and administrative functions. In addition, the Board considered the Trust’s unified fee structure, under which the Trust pays for the supervisory and administrative services it requires for one set fee. In
return for this unified fee, PIMCO provides or procures supervisory and administrative services and bears the costs of various third party services required by the Funds, including audit, custodial, portfolio accounting, legal, transfer agency, sub-accounting and printing costs. The Board further considered that many other funds pay for comparable services separately, and thus it is difficult to directly compare the Trust’s unified supervisory and administrative fees with the fees paid by other funds for administrative services alone. The Board also considered that the unified supervisory and administrative fee leads to Fund fees that are fixed over the contract period, rather than variable. The Board noted that, although the unified fee structure does not have breakpoints, it implicitly reflects economies of scale by fixing the absolute level of Fund fees at competitive levels over the contract period even if the Funds’ operating costs rise when assets remain flat or decrease. Other factors the Board considered in assessing the unified fee include PIMCO’s approach of pricing the Funds to scale at inception and reinvesting in other important areas of the business that support the Funds. The Board considered that the Funds’ unified fee structure meant that fees were not impacted by recent outflows in certain Funds, unlike funds without a unified fee structure, which may see increased expense ratios when fixed costs, such as service providers, are passed through to a smaller asset base. The Board concluded that the Funds’ supervisory and administrative fees were reasonable in relation to the value of the services 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 fees during the contractual period, which is beneficial to the Funds and their shareholders.
The Board noted that the Funds’ total expenses continued to be generally in line with those of competitor funds. The Board discussed with PIMCO those Funds and/or classes of Funds that had above median total expenses. Upon comparing the Funds’ total expenses to other funds in the “Peer Groups” provided by Lipper, the Board found total expenses of each Fund to be reasonable.
The Trustees also considered the advisory fees charged to the Funds that operate as funds of funds (the “Funds of Funds”) and the advisory services provided in exchange for such fees. The Trustees determined that such services were in addition to the advisory services provided to the underlying funds in which the Funds of Funds may invest and, therefore, such services were not duplicative of the advisory services provided to the underlying funds. The Board also considered the various fee waiver agreements in place for the Funds of Funds.
Based on the information presented by PIMCO, Research Affiliates, Parametric and Lipper, members of the Board determined, in the exercise of their business judgment, that the level of the advisory fees and
80 | PIMCO EQUITY SERIES |
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(Unaudited)
supervisory and administrative fees charged by PIMCO under the Agreements, as well as the total expenses of each Fund, are reasonable.
5. ADVISER COSTS, LEVEL OF PROFITS AND ECONOMIES OF SCALE
The Board reviewed information regarding PIMCO’s costs of providing services to the Funds as a whole and considered that PIMCO’s estimated pre-distribution margin from PIMCO Equity Series for the calendar year 2017 was 46.2% and the estimated post-distribution margin was 27.4% utilizing the adjusted asset methodology. The Independent Trustees also noted that the 2016 margins were within the range of publicly-traded asset manager margins reported by Strategic Insight and Lipper. The Board noted that it had received information regarding the structure and manner in which PIMCO’s investment professionals were compensated and PIMCO’s view of the relationship of such compensation to the attraction and retention of quality personnel. The Board considered PIMCO’s need to invest in global infrastructure, technology capabilities, risk management processes and qualified personnel to reinforce and offer new services and to accommodate changing regulatory requirements.
With respect to potential economies of scale, the Board noted that PIMCO shares the benefits of economies of scale with the Funds and their shareholders in a number of ways, including investing in portfolio and trade operations management, firm technology, middle and back office support, legal and compliance, and fund administration logistics; senior management supervision and governance of those services; and through the pricing of Funds to scale from inception and the enhancement of services and oversight provided to the Funds in return for fees paid. In considering the advisory fees paid by the Funds, the Board also noted that retail investors in the Funds receive the benefit of PIMCO’s advisory services at the same advisory fee rates as institutional investors in the Funds. The Board considered that the Funds’ unified fee rates had been set competitively and/or priced to scale from inception and continued to be competitive compared with peers. The Board also considered that the unified fee is a transparent means of informing a Fund’s shareholders of the fees associated with the Fund, and that the Fund bears certain expenses that are not covered by the advisory fee or the unified fee. The Board further considered the challenges that arise when managing large funds, which can result in certain “diseconomies” of scale and noted that PIMCO has continued to reinvest in many areas of the business to support the Funds.
The Trustees considered that the unified fee has provided inherent economies of scale because a Fund maintains competitive fixed unified fees over the contract term even if the particular Fund’s assets decline and/or operating costs rise. The Trustees further considered that, in contrast, breakpoints may be 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 Trustees also considered that, unlike the Funds’ 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 Trustees also considered that the unified fee protects shareholders from a rise in operating costs that may result from, among other things, PIMCO’s investments in various business enhancements and infrastructure, including those referenced above. The Trustees noted that PIMCO’s investments in these areas are extensive.
6. ANCILLARY BENEFITS
The Board considered other benefits realized by PIMCO and its affiliates as a result of PIMCO’s relationship with the Trust. Such benefits may include possible ancillary benefits to PIMCO’s institutional investment management business due to the reputation and market penetration of the Trust or third party service providers’ relationship-level fee concessions, which decrease fees paid by PIMCO. The Board also considered that affiliates of PIMCO provide distribution and shareholder services to the Funds and their respective shareholders, for which they may be compensated through distribution and servicing fees paid pursuant to the Funds’ Rule 12b-1 plans or otherwise. 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 Funds, it has adopted a policy not to enter into contractual soft dollar arrangements.
7. CONCLUSIONS
Based on their review, including their comprehensive consideration and evaluation of each of the broad factors and information summarized above, the Independent Trustees and the Board as a whole concluded that the nature, extent and quality of the services rendered to the Funds by PIMCO, Research Affiliates and Parametric supported the renewal of the Agreements, the Sub-Advisory Agreement, and the Portfolio Implementation Agreement. The Independent Trustees and the Board as a whole concluded that the Agreements, the Sub-Advisory Agreement, and the Portfolio Implementation Agreement continued to be fair and reasonable to the Funds and their shareholders, that the Funds’ shareholders received reasonable value in return for the fees paid to PIMCO by the Funds under the Agreements, the fees paid to Research Affiliates by PIMCO under the Sub-Advisory Agreement, and the fees paid to Parametric by PIMCO under the Portfolio Implementation Agreement, and that the renewal of the Agreements, the Sub-Advisory Agreement, and the Portfolio Implementation Agreement was in the best interests of the Funds and their shareholders.
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Table of Contents
General Information
Investment Adviser and Administrator
Pacific Investment Management Company LLC
650 Newport Center Drive
Newport Beach, CA 92660
Investment Sub-Adviser
Research Affiliates, LLC
620 Newport Center Drive, Suite 900
Newport Beach, CA 92660
Portfolio Implementer
Parametric Portfolio Associates
1918 Eighth Avenue, Suite 3100
Seattle, WA 98101
Distributor
PIMCO Investments LLC
1633 Broadway
New York, NY 10019
Custodian
State Street Bank and Trust Company
801 Pennsylvania
Kansas City, MO 64105
Transfer Agent
DST Asset Manager Solutions, Inc.
Institutional Class, Class P, Administrative Class
330 W. 9th Street, 5th Floor
Kansas City, MO 64105
DST Asset Manager Solutions, Inc.
Class A, Class C, Class R, Class D
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.
Table of Contents
PES4003SAR_123117
Table of Contents
PIMCO Equity Series®
Semiannual
Report
December 31, 2017
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
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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.
Table of Contents
Dear Shareholder,
Please find enclosed the Semiannual Report for the PIMCO Equity Series covering the six-month reporting period ended December 31, 2017. The following pages contain 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 the six-month reporting period include:
∎ | During the reporting period, geopolitical concerns remained an investor focus but the global economy provided a solid fundamental backdrop with robust consumer confidence in both the eurozone and the U.S. This environment gave room for developed market central banks to adopt a more “dovish taper”. The European Central Bank (“ECB”), for example, announced a tapering in its monthly asset purchases, but President Mario Draghi emphasized the ECB’s overall accommodative stance. In September, the Federal Reserve (“Fed”) provided details on its plan to unwind its balance sheet and kept rates on hold through its November meeting, but raised the Federal Funds Rate in December by 0.25% to a range of 1.25% to 1.50% (marking the third rate increase during 2017, following rate increases in March and in June). The Bank of England (“BOE”) raised its policy rate and suggested reduced stimulus on the horizon and the Bank of Canada (“BOC”) raised interest rates twice after a seven-year gap. Furthermore, President Xi Jinping was extended a second five-year term following the 19th National Party Congress in China, while Japan’s Prime Minister Shinzo Abe won a decisive victory in snap elections. |
∎ | As a result, many developed market yield curves flattened over the reporting period as front-end rates moved higher alongside less accommodative monetary policy. In the U.S., solid growth momentum and the Fed’s three rate hikes throughout the year pushed the two-year yield to its highest level in nearly a decade. In turn, this drove the spread between two-year and 10-year rates to its narrowest level since November 2007. Front-end yields also moved higher in the U.K. and Canada as the BOE and BOC both raised policy rates for the first time in years. |
∎ | Global stock markets reached new highs as increasingly solid economic data, rising corporate earnings, and non-restrictive central bank policy underpinned robust risk sentiment. U.S. equities, as represented by the S&P 500 Index, returned 11.42% over the reporting period. Developed market equities outside the U.S. and Canada, as represented by the MSCI EAFE Net Dividend Index (USD Hedged) and the MSCI EAFE Net Dividend Index (USD Unhedged), returned 7.92% and 9.86%, respectively, over the reporting period. Japanese equities, as represented by the Nikkei 225 Index (in JPY), returned 14.63% over the reporting period and European equities, as represented by the MSCI Europe Index (in EUR), returned 3.34% over the reporting period. |
∎ | EM equities, as represented by the MSCI Emerging Markets Index (Net Dividends in USD), returned 15.92% over the reporting period as fundamentals remained healthy in select economies. Emerging markets benefited from broad-based and synchronized global growth, robust liquidity conditions, rising commodity prices, and a weak U.S. dollar. |
∎ | U.S. Treasuries, as represented by the Bloomberg Barclays U.S. Treasury Index, returned 0.43% for the reporting period. Yields rose across the majority of the yield curve through 10-year maturities, but declined across 20- and 30-year maturities. The benchmark 10-year U.S. Treasury note yielded 2.40% at the end of the reporting period, up from 2.31% on June 30, 2017. The Bloomberg Barclays U.S. Aggregate Index, a widely used index of U.S. investment-grade bonds, returned 1.24% for the reporting period. |
If you have any questions regarding the funds, please contact your account manager or financial adviser, or call one of our shareholder associates at 888.87.PIMCO. We also invite you to visit our website at www.pimco.com to learn more about our views and global thought leadership.
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Thank you for the assets you have placed with us. We deeply value your trust, and we work diligently to meet your broad investment needs.
![]() | Sincerely,
Brent R. Harris Chairman of the Board, PIMCO Equity Series
February 21, 2018
|
Past performance is no guarantee of future results. Unless otherwise noted, index returns reflect the reinvestment of income distributions and capital gains, if any, but do not reflect fees, brokerage commissions or other expenses of investing. It is not possible to invest directly in an unmanaged index.
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Important Information About the Funds
PIMCO Equity Series (the “Trust”) is an open-end management investment company that includes 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 (each, a “Fund” and collectively, 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 in a combination of affiliated and unaffiliated funds that are registered under the Investment Company Act of 1940, as amended, equity securities, fixed income instruments of varying maturities, or related derivatives on any of the preceding securities mentioned. The Funds may invest 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 (collectively, “Underlying PIMCO Funds”), and unaffiliated funds that are registered under the Investment Company Act of 1940 (collectively, “Acquired Funds”). The risks and strategies associated with an investment in the Fund may result from direct investments and/or indirect exposure through investment in 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.). In addition, changes in interest rates can be sudden and significant, and there is no guarantee that management will anticipate such movement accurately.
The values of equity securities, such as common stocks and preferred securities, 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 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. This is especially true as the Fed ended its quantitative easing program in October 2014 and has begun, and may continue, to raise interest rates. To the extent the Fed continues to raise interest rates, there is a risk that rates across the financial system may rise. 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.”
Bond funds and 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. All of the factors mentioned above, individually or collectively, could lead to increased volatility and/or lower liquidity in the fixed income markets or negatively impact a Fund’s performance or cause the Fund to incur losses. As a result, a Fund may experience increased shareholder redemptions, which, among other things, could further reduce the net assets of the Fund.
The Funds may be subject to various risks as described in each Fund’s prospectus and in the Principal Risks in the Notes to Financial Statements.
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 PIMCO REALPATH® Blend Funds are intended for investors who prefer to have their asset allocation decisions made by professional
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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 REALPATH® 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 REALPATH® 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 REALPATH® Blend Funds are designed to provide investors with a comprehensive retirement solution tailored to the time when they expect to retire or plan to start withdrawing money (the “target date”). Each PIMCO REALPATH® 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 REALPATH® 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. Returns do not reflect the deduction of taxes that a shareholder would pay on (i) Fund distributions or (ii) the redemption of Fund shares. The Cumulative Returns chart and Average
Annual Total Return table reflect any sales load that would have applied at the time of purchase or any Contingent Deferred Sales Charge (“CDSC”) that would have applied if a full redemption occurred on the last business day of the period shown in the Cumulative Returns chart. Class A shares are subject to an initial sales charge. A 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 12 months after purchase. The Cumulative Returns chart reflects only Institutional Class performance. Performance may vary by share class based on each class’s expense ratios. Performance shown is net of fees and expenses. The minimum initial investment amount for Institutional Class and Administrative Class shares is $1,000,000. The minimum initial investment amount for Class A shares is $1,000. Each Fund measures its performance against at least one 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. There is no assurance that any Fund, including any Fund that has experienced high or unusual performance for one or more periods, will experience similar levels of performance in the future. High performance is defined as a significant increase in either 1) a Fund’s total return in excess of that of the Fund’s benchmark between reporting periods or 2) a Fund’s total return in excess of the Fund’s historical returns between reporting periods. Unusual performance is defined as a significant change in a Fund’s performance as compared to one or more previous reporting periods.
The following table discloses the inception dates of each Fund and its respective share classes along with each Fund’s diversification status as of period end:
Fund Name | Fund Inception | Institutional Class | Administrative Class | Class D | Class A | Class R | Diversification Status | |||||||||||||||||||||||||
PIMCO REALPATH® Blend 2020 Fund | 12/31/14 | 12/31/14 | 12/31/14 | — | 12/31/14 | — | Diversified | |||||||||||||||||||||||||
PIMCO REALPATH® Blend 2025 Fund | 12/31/14 | 12/31/14 | 12/31/14 | — | 12/31/14 | — | Diversified | |||||||||||||||||||||||||
PIMCO REALPATH® Blend 2030 Fund | 12/31/14 | 12/31/14 | 12/31/14 | — | 12/31/14 | — | Diversified | |||||||||||||||||||||||||
PIMCO REALPATH® Blend 2035 Fund | 12/31/14 | 12/31/14 | 12/31/14 | — | 12/31/14 | — | Diversified | |||||||||||||||||||||||||
PIMCO REALPATH® Blend 2040 Fund | 12/31/14 | 12/31/14 | 12/31/14 | — | 12/31/14 | — | Diversified | |||||||||||||||||||||||||
PIMCO REALPATH® Blend 2045 Fund | 12/31/14 | 12/31/14 | 12/31/14 | — | 12/31/14 | — | Diversified | |||||||||||||||||||||||||
PIMCO REALPATH® Blend 2050 Fund | 12/31/14 | 12/31/14 | 12/31/14 | — | 12/31/14 | — | Diversified | |||||||||||||||||||||||||
PIMCO REALPATH® Blend 2055 Fund | 12/31/14 | 12/31/14 | 12/31/14 | — | 12/31/14 | — | Diversified | |||||||||||||||||||||||||
PIMCO REALPATH® Blend Income Fund | 12/31/14 | 12/31/14 | 12/31/14 | — | 12/31/14 | — | Diversified |
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.
The Trustees are responsible generally for overseeing the management of the Trust. The Trustees authorize the Trust to enter into service agreements with the Adviser, the Distributor, the Administrator and
other service providers in order to provide, and in some cases authorize service providers to procure through other parties, necessary or desirable services on behalf of the Trust and the Funds. Shareholders are not parties to or third-party beneficiaries of such service agreements. Neither a Fund’s prospectus nor a Fund’s summary prospectus, the Trust’s Statement of Additional Information (“SAI”), any contracts filed as exhibits to the Trust’s registration statement, nor any other communications, disclosure documents or regulatory filings
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Important Information About the Funds (cont.)
(including this report) from or on behalf of the Trust or a Fund creates a contract between or among any shareholder of a Fund, on the one hand, and the Trust, a Fund, a service provider to the Trust or a Fund, and/or the Trustees or officers of the Trust, on the other hand. The Trustees (or the Trust and its officers, service providers or other delegates acting under authority of the Trustees) may amend the most recent prospectus or use a new prospectus, summary prospectus or SAI with respect to a Fund or the Trust, and/or amend, file and/or issue any other communications, disclosure documents or regulatory filings, and may amend or enter into any contracts to which the Trust or a Fund is a party, and interpret the investment objective(s), policies, restrictions and contractual provisions applicable to any Fund, without shareholder input or approval, except in circumstances in which shareholder approval is specifically required by law (such as changes to fundamental investment policies) or where a shareholder approval requirement is specifically disclosed in the Trust’s then-current prospectus or SAI.
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 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.
The Trust files a complete schedule of each Fund’s 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 is also 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.
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PIMCO REALPATH® Blend 2020 Fund
Cumulative Returns Through December 31, 2017
$1,000,000 invested at the end of the month when the Fund’s Institutional Class commenced operations.
Investment Objective and Strategy Overview
PIMCO REALPATH® Blend 2020 Fund seeks to maximize total return, consistent with prudent investment management, by investing in a combination of affiliated and unaffiliated funds that are registered under the Investment Company Act of 1940, as amended (the “1940 Act”), 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. Fund strategies may change from time to time. Please refer to the Fund’s current prospectus for more information regarding the Fund’s strategy.
Average Annual Total Return for the period ended December 31, 2017 | ||||||||||||||
6 Months* | 1 Year | Fund Inception (12/31/14) | ||||||||||||
![]() | PIMCO REALPATH® Blend 2020 Fund Institutional Class | 6.81% | 13.79% | 6.33% | ||||||||||
PIMCO REALPATH® Blend 2020 Fund Administrative Class | 6.65% | 13.49% | 6.04% | |||||||||||
PIMCO REALPATH® Blend 2020 Fund Class A | 6.58% | 13.22% | 5.82% | |||||||||||
PIMCO REALPATH® Blend 2020 Fund Class A (adjusted) | 0.68% | 7.02% | 3.85% | |||||||||||
![]() | S&P Target Date 2020 Index± | 6.10% | 12.80% | 6.47% |
All Fund returns are net of fees and expenses.
* Cumulative return.
± The S&P Target Date Index Series is comprised of eleven multi-asset class indices, each corresponding to a particular target retirement date. Each index provides varying levels of exposure to each asset class. Each target date allocation is created and retired according to a pre-determined schedule related to the respective target date, as indicated in the index name, and is based on market observations through an annual survey of target date fund managers.
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. Differences in the Fund’s performance versus the index and related attribution information with respect to particular categories of securities or individual positions may be attributable, in part, to differences in the pricing methodologies used by the Fund and the index. The adjusted returns take into account the maximum sales charge of 5.50% on Class A shares. For performance data current to the most recent month-end is available at www.pimco.com or via (888) 87-PIMCO.
The Fund’s total annual operating expense ratio in effect as of period end, were 0.42% for the Institutional Class shares, 0.67% for the Administrative shares, and 0.92% for the Class A shares. Details regarding any changes to the Fund’s operating expenses, subsequent to period end, can be found in the Fund’s current prospectus, as supplemented.
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Institutional Class - PBZNX | Administrative Class - PBZDX | Class A - PBZAX |
Top 10 Holdings as of 12/31/20171§
Vanguard 500 Index Fund ‘Admiral’ | 23.5% | |||||||
Vanguard Developed Markets Index Fund ‘Admiral’ | 12.6% | |||||||
PIMCO Income Fund | 12.4% | |||||||
PIMCO Real Return Fund | 8.2% | |||||||
PIMCO Total Return Fund | 7.7% | |||||||
PIMCO Real Return Asset Fund | 6.3% | |||||||
PIMCO Foreign Bond Fund (U.S. Dollar-Hedged) | 5.1% | |||||||
Vanguard Emerging Markets Stock Index Fund ‘Admiral’ | 5.0% | |||||||
PIMCO High Yield Fund | 4.7% | |||||||
PIMCO Long-Term Credit Fund | 3.0% |
1 % of Investments, at value.
§ Top 10 Holdings and % of Investments exclude securities sold short, financial derivative instruments and short-term instruments, if any.
Fund Insights
The following affected performance during the reporting period:
» | Exposure to U.S. large market capitalization equity securities benefited absolute performance, as U.S. large market capitalization equity securities posted positive returns. |
» | Exposure to developed market ex U.S. equity securities benefited absolute performance, as developed market ex U.S. equity securities posted positive returns. |
» | Exposure to emerging market equity securities benefited absolute performance, as emerging market equity securities posted positive returns. |
» | Exposure to U.S. small market capitalization equity securities benefited absolute performance, as U.S. small market capitalization equity securities posted positive returns. |
» | Exposure to long-term U.S. Treasury Inflation-Protected Securities (TIPS) benefited absolute performance, as long-term TIPS posted positive returns. |
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PIMCO REALPATH® Blend 2025 Fund
Cumulative Returns Through December 31, 2017
$1,000,000 invested at the end of the month when the Fund’s Institutional Class commenced operations.
Investment Objective and Strategy Overview
PIMCO REALPATH® Blend 2025 Fund seeks to maximize total return, consistent with prudent investment management, by investing in a combination of affiliated and unaffiliated funds that are registered under the Investment Company Act of 1940, as amended (the “1940 Act”), 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. Fund strategies may change from time to time. Please refer to the Fund’s current prospectus for more information regarding the Fund’s strategy.
Average Annual Total Return for the period ended December 31, 2017 | ||||||||||||||
6 Months* | 1 Year | Fund Inception (12/31/14) | ||||||||||||
![]() | PIMCO REALPATH® Blend 2025 Fund Institutional Class | 7.62% | 15.46% | 6.76% | ||||||||||
PIMCO REALPATH® Blend 2025 Fund Administrative Class | 7.47% | 15.09% | 6.47% | |||||||||||
PIMCO REALPATH® Blend 2025 Fund Class A | 7.39% | 14.88% | 6.25% | |||||||||||
PIMCO REALPATH® Blend 2025 Fund Class A (adjusted) | 1.47% | 8.57% | 4.27% | |||||||||||
![]() | S&P Target Date 2025 Index± | 7.07% | 14.55% | 7.19% |
All Fund returns are net of fees and expenses.
* Cumulative return.
± The S&P Target Date Index Series is comprised of eleven multi-asset class indices, each corresponding to a particular target retirement date. Each index provides varying levels of exposure to each asset class. Each target date allocation is created and retired according to a pre-determined schedule related to the respective target date, as indicated in the index name, and is based on market observations through an annual survey of target date fund managers.
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. Differences in the Fund’s performance versus the index and related attribution information with respect to particular categories of securities or individual positions may be attributable, in part, to differences in the pricing methodologies used by the Fund and the index. The adjusted returns take into account the maximum sales charge of 5.50% on Class A shares. For performance data current to the most recent month-end is available at www.pimco.com or via (888) 87-PIMCO.
The Fund’s total annual operating expense ratio in effect as of period end, were 0.38% for the Institutional Class shares, 0.63% for the Administrative shares, and 0.88% for the Class A shares. Details regarding any changes to the Fund’s operating expenses, subsequent to period end, can be found in the Fund’s current prospectus, as supplemented.
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Institutional Class - PPZRX | Administrative Class - PPZDX | Class A - PPZAX |
Top 10 Holdings as of 12/31/20171§
Vanguard 500 Index Fund ‘Admiral’ | 28.5% | |||||||
Vanguard Developed Markets Index Fund ‘Admiral’ | 15.3% | |||||||
PIMCO Income Fund | 9.9% | |||||||
PIMCO Real Return Asset Fund | 7.8% | |||||||
Vanguard Emerging Markets Stock Index Fund ‘Admiral’ | 6.1% | |||||||
PIMCO Total Return Fund | 5.7% | |||||||
PIMCO Real Return Fund | 4.4% | |||||||
PIMCO High Yield Fund | 4.2% | |||||||
PIMCO Long-Term Credit Fund | 4.0% | |||||||
PIMCO Long Duration Total Return Fund | 3.9% |
1 % of Investments, at value.
§ Top 10 Holdings and % of Investments exclude securities sold short, financial derivative instruments and short-term instruments, if any.
Fund Insights
The following affected performance during the reporting period:
» | Exposure to U.S. large market capitalization equity securities benefited absolute performance, as U.S. large market capitalization equity securities posted positive returns. |
» | Exposure to developed market ex U.S. equity securities benefited absolute performance, as developed market ex U.S. equity securities posted positive returns. |
» | Exposure to emerging market equity securities benefited absolute performance, as emerging market equity securities posted positive returns. |
» | Exposure to U.S. small market capitalization equity securities benefited absolute performance, as U.S. small market capitalization equity securities posted positive returns. |
» | Exposure to long-term U.S. Treasury Inflation-Protected Securities (TIPS) benefited absolute performance, as long-term U.S. Treasury Inflation-Protected Securities (TIPS) posted positive returns. |
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PIMCO REALPATH® Blend 2030 Fund
Cumulative Returns Through December 31, 2017
$1,000,000 invested at the end of the month when the Fund’s Institutional Class commenced operations.
Investment Objective and Strategy Overview
PIMCO REALPATH® Blend 2030 Fund seeks to maximize total return, consistent with prudent investment management, by investing in a combination of affiliated and unaffiliated funds that are registered under the Investment Company Act of 1940, as amended (the “1940 Act”), 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. Fund strategies may change from time to time. Please refer to the Fund’s current prospectus for more information regarding the Fund’s strategy.
Average Annual Total Return for the period ended December 31, 2017 | ||||||||||||||
6 Months* | 1 Year | Fund Inception (12/31/14) | ||||||||||||
PIMCO REALPATH® Blend 2030 Fund Institutional Class | 8.38% | 17.05% | 7.51% | |||||||||||
PIMCO REALPATH® Blend 2030 Fund Administrative Class | 8.24% | 16.66% | 7.22% | |||||||||||
PIMCO REALPATH® Blend 2030 Fund Class A | 8.17% | 16.60% | 6.99% | |||||||||||
PIMCO REALPATH® Blend 2030 Fund Class A (adjusted) | 2.19% | 10.22% | 5.00% | |||||||||||
S&P Target Date 2030 Index± | 7.99% | 16.19% | 7.86% |
All Fund returns are net of fees and expenses.
* Cumulative return.
± The S&P Target Date Index Series is comprised of eleven multi-asset class indices, each corresponding to a particular target retirement date. Each index provides varying levels of exposure to each asset class. Each target date allocation is created and retired according to a pre-determined schedule related to the respective target date, as indicated in the index name, and is based on market observations through an annual survey of target date fund managers.
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. Differences in the Fund’s performance versus the index and related attribution information with respect to particular categories of securities or individual positions may be attributable, in part, to differences in the pricing methodologies used by the Fund and the index. The adjusted returns take into account the maximum sales charge of 5.50% on Class A shares. For performance data current to the most recent month-end is available at www.pimco.com or via (888) 87-PIMCO.
The Fund’s total annual operating expense ratio in effect as of period end, were 0.33% for the Institutional Class shares, 0.58% for the Administrative shares, and 0.83% for the Class A shares. Details regarding any changes to the Fund’s operating expenses, subsequent to period end, can be found in the Fund’s current prospectus, as supplemented.
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Institutional Class - PBPNX | Administrative Class - PBPRX | Class A - PBPAX |
Top 10 Holdings as of 12/31/20171§
Vanguard 500 Index Fund ‘Admiral’ | 32.3% | |||||||
Vanguard Developed Markets Index Fund ‘Admiral’ | 17.3% | |||||||
PIMCO Income Fund | 8.1% | |||||||
Vanguard Emerging Markets Stock Index Fund ‘Admiral’ | 7.1% | |||||||
PIMCO Real Return Asset Fund | 6.6% | |||||||
PIMCO Total Return Fund | 4.1% | |||||||
PIMCO High Yield Fund | 4.0% | |||||||
Vanguard Small-Cap Index Fund ‘Admiral’ | 3.8% | |||||||
PIMCO Long Duration Total Return Fund | 3.3% | |||||||
PIMCO Long-Term Credit Fund | 3.3% |
1 % of Investments, at value.
§ Top 10 Holdings and % of Investments exclude securities sold short, financial derivative instruments and short-term instruments, if any.
Fund Insights
The following affected performance during the reporting period:
» | Exposure to U.S. large market capitalization equity securities benefited absolute performance, as U.S. large market capitalization equity securities posted positive returns. |
» | Exposure to developed market ex U.S. equity securities benefited absolute performance, as developed market ex U.S. equity securities posted positive returns. |
» | Exposure to emerging market equity securities benefited absolute performance, as emerging market equity securities posted positive returns. |
» | Exposure to U.S. small market capitalization equity securities benefited absolute performance, as U.S. small market capitalization equity securities posted positive returns. |
» | Exposure to long-term U.S. Treasury Inflation-Protected Securities (TIPS) benefited absolute performance, as long-term TIPS posted positive returns. |
SEMIANNUAL REPORT | DECEMBER 31, 2017 | 13 |
Table of Contents
PIMCO REALPATH® Blend 2035 Fund
Cumulative Returns Through December 31, 2017
$1,000,000 invested at the end of the month when the Fund’s Institutional Class commenced operations.
Investment Objective and Strategy Overview
PIMCO REALPATH® Blend 2035 Fund seeks to maximize total return, consistent with prudent investment management, by investing in a combination of affiliated and unaffiliated funds that are registered under the Investment Company Act of 1940, as amended (the “1940 Act”), 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. Fund strategies may change from time to time. Please refer to the Fund’s current prospectus for more information regarding the Fund’s strategy.
Average Annual Total Return for the period ended December 31, 2017 | ||||||||||||||
6 Months* | 1 Year | Fund Inception (12/31/14) | ||||||||||||
![]() | PIMCO REALPATH® Blend 2035 Fund Institutional Class | 8.91% | 18.13% | 7.80% | ||||||||||
PIMCO REALPATH® Blend 2035 Fund Administrative Class | 8.76% | 17.93% | 7.51% | |||||||||||
PIMCO REALPATH® Blend 2035 Fund Class A | 8.65% | 17.57% | 7.28% | |||||||||||
PIMCO REALPATH® Blend 2035 Fund Class A (adjusted) | 2.64% | 11.09% | 5.28% | |||||||||||
![]() | S&P Target Date 2035 Index± | 8.87% | 17.78% | 8.50% |
All Fund returns are net of fees and expenses.
* Cumulative return.
± The S&P Target Date Index Series is comprised of eleven multi-asset class indices, each corresponding to a particular target retirement date. Each index provides varying levels of exposure to each asset class. Each target date allocation is created and retired according to a pre-determined schedule related to the respective target date, as indicated in the index name, and is based on market observations through an annual survey of target date fund managers.
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. Differences in the Fund’s performance versus the index and related attribution information with respect to particular categories of securities or individual positions may be attributable, in part, to differences in the pricing methodologies used by the Fund and the index. The adjusted returns take into account the maximum sales charge of 5.50% on Class A shares. For performance data current to the most recent month-end is available at www.pimco.com or via (888) 87-PIMCO.
The Fund’s total annual operating expense ratio in effect as of period end, were 0.28% for the Institutional Class shares, 0.53% for the Administrative shares, and 0.78% for the Class A shares. Details regarding any changes to the Fund’s operating expenses, subsequent to period end, can be found in the Fund’s current prospectus, as supplemented.
14 | PIMCO EQUITY SERIES |
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Institutional Class - PDGZX | Administrative Class - PDGDX | Class A - PDGAX |
Top 10 Holdings as of 12/31/20171§
Vanguard 500 Index Fund ‘Admiral’ | 36.3% | |||||||
Vanguard Developed Markets Index Fund ‘Admiral’ | 19.2% | |||||||
Vanguard Emerging Markets Stock Index Fund ‘Admiral’ | 8.0% | |||||||
PIMCO Income Fund | 7.1% | |||||||
Vanguard Small-Cap Index Fund ‘Admiral’ | 4.2% | |||||||
PIMCO Real Return Asset Fund | 4.1% | |||||||
PIMCO High Yield Fund | 3.9% | |||||||
PIMCO Total Return Fund | 3.1% | |||||||
PIMCO Long-Term Credit Fund | 2.3% | |||||||
PIMCO Long Duration Total Return Fund | 2.3% |
1 % of Investments, at value.
§ Top 10 Holdings and % of Investments exclude securities sold short, financial derivative instruments and short-term instruments, if any.
Fund Insights
The following affected performance during the reporting period:
» | Exposure to U.S. large market capitalization equity securities benefited absolute performance, as U.S. large market capitalization equity securities posted positive returns. |
» | Exposure to developed market ex U.S. equity securities benefited absolute performance, as developed market ex U.S. equity securities posted positive returns. |
» | Exposure to emerging market equity securities benefited absolute performance, as emerging market equity securities posted positive returns. |
» | Exposure to U.S. small market capitalization equity securities benefited absolute performance, as U.S. small market capitalization equity securities posted positive returns. |
» | Exposure to long-term U.S. Treasury Inflation-Protected Securities (TIPS) benefited absolute performance, as long-term TIPS posted positive returns. |
SEMIANNUAL REPORT | DECEMBER 31, 2017 | 15 |
Table of Contents
PIMCO REALPATH® Blend 2040 Fund
Cumulative Returns Through December 31, 2017
$1,000,000 invested at the end of the month when the Fund’s Institutional Class commenced operations.
Investment Objective and Strategy Overview
PIMCO REALPATH® Blend 2040 Fund seeks to maximize total return, consistent with prudent investment management, by investing in a combination of affiliated and unaffiliated funds that are registered under the Investment Company Act of 1940, as amended (the “1940 Act”), 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. Fund strategies may change from time to time. Please refer to the Fund’s current prospectus for more information regarding the Fund’s strategy.
Average Annual Total Return for the period ended December 31, 2017 | ||||||||||||||
6 Months* | 1 Year | Fund Inception (12/31/14) | ||||||||||||
![]() | PIMCO REALPATH® Blend 2040 Fund Institutional Class | 9.23% | 18.94% | 8.10% | ||||||||||
PIMCO REALPATH® Blend 2040 Fund Administrative Class | 9.18% | 18.65% | 7.84% | |||||||||||
PIMCO REALPATH® Blend 2040 Fund Class A | 8.91% | 18.25% | 7.55% | |||||||||||
PIMCO REALPATH® Blend 2040 Fund Class A (adjusted) | 2.91% | 11.74% | 5.55% | |||||||||||
![]() | S&P Target Date 2040 Index± | 9.45% | 18.87% | 8.94% |
All Fund returns are net of fees and expenses.
* Cumulative return.
± The S&P Target Date Index Series is comprised of eleven multi-asset class indices, each corresponding to a particular target retirement date. Each index provides varying levels of exposure to each asset class. Each target date allocation is created and retired according to a pre-determined schedule related to the respective target date, as indicated in the index name, and is based on market observations through an annual survey of target date fund managers.
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. Differences in the Fund’s performance versus the index and related attribution information with respect to particular categories of securities or individual positions may be attributable, in part, to differences in the pricing methodologies used by the Fund and the index. The adjusted returns take into account the maximum sales charge of 5.50% on Class A shares. For performance data current to the most recent month-end is available at www.pimco.com or via (888) 87-PIMCO.
The Fund’s total annual operating expense ratio in effect as of period end, were 0.25% for the Institutional Class shares, 0.50% for the Administrative shares, and 0.75% for the Class A shares. Details regarding any changes to the Fund’s operating expenses, subsequent to period end, can be found in the Fund’s current prospectus, as supplemented.
16 | PIMCO EQUITY SERIES |
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Institutional Class - PVPNX | Administrative Class - PVPRX | Class A - PVPAX |
Top 10 Holdings as of 12/31/20171§
Vanguard 500 Index Fund ‘Admiral’ | 39.8% | |||||||
Vanguard Developed Markets Index Fund ‘Admiral’ | 20.8% | |||||||
Vanguard Emerging Markets Stock Index Fund ‘Admiral’ | 8.8% | |||||||
PIMCO Income Fund | 5.8% | |||||||
PIMCO Short-Term Floating NAV Portfolio III | 4.6% | |||||||
Vanguard Small-Cap Index Fund ‘Admiral’ | 4.5% | |||||||
PIMCO High Yield Fund | 3.6% | |||||||
PIMCO Real Return Asset Fund | 2.6% | |||||||
PIMCO Total Return Fund | 2.0% | |||||||
PIMCO Emerging Local Bond Fund | 1.8% |
1 % of Investments, at value.
§ Top 10 Holdings and % of Investments exclude securities sold short, financial derivative instruments and short-term instruments, if any.
Fund Insights
The following affected performance during the reporting period:
» | Exposure to U.S. large market capitalization equity securities benefited absolute performance, as U.S. large market capitalization equity securities posted positive returns. |
» | Exposure to developed market ex U.S. equity securities benefited absolute performance, as developed ex U.S. market equity securities posted positive returns. |
» | Exposure to emerging market equity securities benefited absolute performance, as emerging market equity securities posted positive returns. |
» | Exposure to U.S. small market capitalization equity securities benefited absolute performance, as U.S. small market capitalization equity securities posted positive returns. |
» | Exposure to long-term U.S. Treasury Inflation-Protected Securities (TIPS) benefited absolute performance, as long-term TIPS posted positive returns. |
SEMIANNUAL REPORT | DECEMBER 31, 2017 | 17 |
Table of Contents
PIMCO REALPATH® Blend 2045 Fund
Cumulative Returns Through December 31, 2017
$1,000,000 invested at the end of the month when the Fund’s Institutional Class commenced operations.
Investment Objective and Strategy Overview
PIMCO REALPATH® Blend 2045 Fund seeks to maximize total return, consistent with prudent investment management, by investing in a combination of affiliated and unaffiliated funds that are registered under the Investment Company Act of 1940, as amended (the “1940 Act”), 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. Fund strategies may change from time to time. Please refer to the Fund’s current prospectus for more information regarding the Fund’s strategy.
Average Annual Total Return for the period ended December 31, 2017 | ||||||||||||||
6 Months* | 1 Year | Fund Inception (12/31/14) | ||||||||||||
![]() | PIMCO REALPATH® Blend 2045 Fund Institutional Class | 9.61% | 19.63% | 8.11% | ||||||||||
PIMCO REALPATH® Blend 2045 Fund Administrative Class | 9.38% | 19.25% | 7.81% | |||||||||||
PIMCO REALPATH® Blend 2045 Fund Class A | 9.20% | 18.94% | 7.54% | |||||||||||
PIMCO REALPATH® Blend 2045 Fund Class A (adjusted) | 3.19% | 12.37% | 5.54% | |||||||||||
![]() | S&P Target Date 2045 Index± | 9.78% | 19.56% | 9.23% |
All Fund returns are net of fees and expenses.
* Cumulative return.
± The S&P Target Date Index Series is comprised of eleven multi-asset class indices, each corresponding to a particular target retirement date. Each index provides varying levels of exposure to each asset class. Each target date allocation is created and retired according to a pre-determined schedule related to the respective target date, as indicated in the index name, and is based on market observations through an annual survey of target date fund managers.
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. Differences in the Fund’s performance versus the index and related attribution information with respect to particular categories of securities or individual positions may be attributable, in part, to differences in the pricing methodologies used by the Fund and the index. The adjusted returns take into account the maximum sales charge of 5.50% on Class A shares. For performance data current to the most recent month-end is available at www.pimco.com or via (888) 87-PIMCO.
The Fund’s total annual operating expense ratio in effect as of period end, were 0.23% for the Institutional Class shares, 0.48% for the Administrative shares, and 0.73% for the Class A shares. Details regarding any changes to the Fund’s operating expenses, subsequent to period end, can be found in the Fund’s current prospectus, as supplemented.
18 | PIMCO EQUITY SERIES |
Table of Contents
Institutional Class - PVQNX | Administrative Class - PVQDX | Class A - PVQAX |
Top 10 Holdings as of 12/31/20171§
Vanguard 500 Index Fund ‘Admiral’ | 41.9% | |||||||
Vanguard Developed Markets Index Fund ‘Admiral’ | 21.8% | |||||||
Vanguard Emerging Markets Stock Index Fund ‘Admiral’ | 9.2% | |||||||
Vanguard Small-Cap Index Fund ‘Admiral’ | 4.8% | |||||||
PIMCO Income Fund | 4.5% | |||||||
PIMCO High Yield Fund | 3.0% | |||||||
PIMCO Real Return Asset Fund | 2.3% | |||||||
PIMCO Emerging Local Bond Fund | 1.5% | |||||||
PIMCO Total Return Fund | 1.4% | |||||||
PIMCO Long-Term Credit Fund | 1.2% |
1 % of Investments, at value.
§ Top 10 Holdings and % of Investments exclude securities sold short, financial derivative instruments and short-term instruments, if any.
Fund Insights
The following affected performance during the reporting period:
» | Exposure to U.S. large market capitalization equity securities benefited absolute performance, as U.S. large market capitalization equity securities posted positive returns. |
» | Exposure to developed market ex U.S. equity securities benefited absolute performance, as developed market ex U.S. equity securities posted positive returns. |
» | Exposure to emerging market equity securities benefited absolute performance, as emerging market equity securities posted positive returns. |
» | Exposure to U.S. small market capitalization equity securities benefited absolute performance, as U.S. small market capitalization equity securities posted positive returns. |
» | Exposure to long-term U.S. Treasury Inflation-Protected Securities (TIPS) benefited absolute performance, as long-term TIPS posted positive returns. |
SEMIANNUAL REPORT | DECEMBER 31, 2017 | 19 |
Table of Contents
PIMCO REALPATH® Blend 2050 Fund
Cumulative Returns Through December 31, 2017
$1,000,000 invested at the end of the month when the Fund’s Institutional Class commenced operations.
Investment Objective and Strategy Overview
PIMCO REALPATH® Blend 2050 Fund seeks to maximize total return, consistent with prudent investment management, by investing in a combination of affiliated and unaffiliated funds that are registered under the Investment Company Act of 1940, as amended (the “1940 Act”), 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. Fund strategies may change from time to time. Please refer to the Fund’s current prospectus for more information regarding the Fund’s strategy.
Average Annual Total Return for the period ended December 31, 2017 | ||||||||||||||
6 Months* | 1 Year | Fund Inception (12/31/14) | ||||||||||||
![]() | PIMCO REALPATH® Blend 2050 Fund Institutional Class | 9.69% | 19.88% | 8.28% | ||||||||||
PIMCO REALPATH® Blend 2050 Fund Administrative Class | 9.46% | 19.41% | 7.96% | |||||||||||
PIMCO REALPATH® Blend 2050 Fund Class A | 9.48% | 19.24% | 7.73% | |||||||||||
PIMCO REALPATH® Blend 2050 Fund Class A (adjusted) | 3.46% | 12.66% | 5.72% | |||||||||||
![]() | S&P Target Date 2050 Index± | 10.01% | 20.18% | 9.48% |
All Fund returns are net of fees and expenses.
* Cumulative return.
± The S&P Target Date Index Series is comprised of eleven multi-asset class indices, each corresponding to a particular target retirement date. Each index provides varying levels of exposure to each asset class. Each target date allocation is created and retired according to a pre-determined schedule related to the respective target date, as indicated in the index name, and is based on market observations through an annual survey of target date fund managers.
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. Differences in the Fund’s performance versus the index and related attribution information with respect to particular categories of securities or individual positions may be attributable, in part, to differences in the pricing methodologies used by the Fund and the index. The adjusted returns take into account the maximum sales charge of 5.50% on Class A shares. For performance data current to the most recent month-end is available at www.pimco.com or via (888) 87-PIMCO.
The Fund’s total annual operating expense ratio in effect as of period end, were 0.22% for the Institutional Class shares, 0.47% for the Administrative shares, and 0.72% for the Class A shares. Details regarding any changes to the Fund’s operating expenses, subsequent to period end, can be found in the Fund’s current prospectus, as supplemented.
20 | PIMCO EQUITY SERIES |
Table of Contents
Institutional Class - PPQZX | Administrative Class - PPQDX | Class A - PPQAX |
Top 10 Holdings as of 12/31/20171§
Vanguard 500 Index Fund ‘Admiral’ | 42.7% | |||||||
Vanguard Developed Markets Index Fund ‘Admiral’ | 22.0% | |||||||
Vanguard Emerging Markets Stock Index Fund ‘Admiral’ | 9.4% | |||||||
PIMCO Short-Term Floating NAV Portfolio III | 6.0% | |||||||
Vanguard Small-Cap Index Fund ‘Admiral’ | 5.0% | |||||||
PIMCO Income Fund | 3.7% | |||||||
PIMCO High Yield Fund | 2.8% | |||||||
PIMCO Real Return Asset Fund | 2.1% | |||||||
PIMCO Emerging Local Bond Fund | 1.4% | |||||||
PIMCO Real Return Fund | 1.2% |
1 % of Investments, at value.
§ Top 10 Holdings and % of Investments exclude securities sold short, financial derivative instruments and short-term instruments, if any.
Fund Insights
The following affected performance during the reporting period:
» | Exposure to U.S. large market capitalization equity securities benefited absolute performance, as U.S. large market capitalization equity securities posted positive returns. |
» | Exposure to developed market ex U.S. equity securities benefited absolute performance, as developed market ex U.S. equity securities posted positive returns. |
» | Exposure to emerging market equity securities benefited absolute performance, as emerging market equity securities posted positive returns. |
» | Exposure to U.S. small market capitalization equity securities benefited absolute performance, as U.S. small market capitalization equity securities posted positive returns. |
» | Exposure to long-term U.S. Treasury Inflation-Protected Securities (TIPS) benefited absolute performance, as long-term TIPS posted positive returns. |
SEMIANNUAL REPORT | DECEMBER 31, 2017 | 21 |
Table of Contents
PIMCO REALPATH® Blend 2055 Fund
Cumulative Returns Through December 31, 2017
$1,000,000 invested at the end of the month when the Fund’s Institutional Class commenced operations.
Investment Objective and Strategy Overview
PIMCO REALPATH® Blend 2055 Fund seeks to maximize total return, consistent with prudent investment management, by investing in a combination of affiliated and unaffiliated funds that are registered under the Investment Company Act of 1940, as amended (the “1940 Act”), 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. Fund strategies may change from time to time. Please refer to the Fund’s current prospectus for more information regarding the Fund’s strategy.
Average Annual Total Return for the period ended December 31, 2017 | ||||||||||||||
6 Months* | 1 Year | Fund Inception (12/31/14) | ||||||||||||
![]() | PIMCO REALPATH® Blend 2055 Fund Institutional Class | 9.54% | 19.65% | 8.19% | ||||||||||
PIMCO REALPATH® Blend 2055 Fund Administrative Class | 9.41% | 19.37% | 7.93% | |||||||||||
PIMCO REALPATH® Blend 2055 Fund Class A | 9.32% | 19.08% | 7.61% | |||||||||||
PIMCO REALPATH® Blend 2055 Fund Class A (adjusted) | 3.30% | 12.50% | 5.61% | |||||||||||
![]() | S&P Target Date 2055+ Index± | 10.10% | 20.48% | 9.61% |
All Fund returns are net of fees and expenses.
* Cumulative return.
± The S&P Target Date Index Series is comprised of eleven multi-asset class indices, each corresponding to a particular target retirement date. Each index provides varying levels of exposure to each asset class. Each target date allocation is created and retired according to a predetermined schedule related to the respective target date, as indicated in the index name, and is based on market observations through an annual survey of target date fund managers.
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. Differences in the Fund’s performance versus the index and related attribution information with respect to particular categories of securities or individual positions may be attributable, in part, to differences in the pricing methodologies used by the Fund and the index. The adjusted returns take into account the maximum sales charge of 5.50% on Class A shares. For performance data current to the most recent month-end is available at www.pimco.com or via (888) 87-PIMCO.
The Fund’s total annual operating expense ratio in effect as of period end, were 0.22% for the Institutional Class shares, 0.47% for the Administrative shares, and 0.72% for the Class A shares. Details regarding any changes to the Fund’s operating expenses, subsequent to period end, can be found in the Fund’s current prospectus, as supplemented.
22 | PIMCO EQUITY SERIES |
Table of Contents
Institutional Class - PRQZX | Administrative Class - PRQDX | Class A - PRQAX |
Top 10 Holdings as of 12/31/20171§
Vanguard 500 Index Fund ‘Admiral’ | 42.9% | |||||||
Vanguard Developed Markets Index Fund ‘Admiral’ | 22.2% | |||||||
Vanguard Emerging Markets Stock Index Fund ‘Admiral’ | 9.4% | |||||||
PIMCO Short-Term Floating NAV Portfolio III | 6.1% | |||||||
Vanguard Small-Cap Index Fund ‘Admiral’ | 5.0% | |||||||
PIMCO Income Fund | 3.7% | |||||||
PIMCO High Yield Fund | 2.8% | |||||||
PIMCO Real Return Asset Fund | 2.0% | |||||||
PIMCO Emerging Local Bond Fund | 1.4% | |||||||
PIMCO Real Return Fund | 1.1% |
1 % of Investments, at value.
§ Top 10 Holdings and % of Investments exclude securities sold short, financial derivative instruments and short-term instruments, if any.
Fund Insights
The following affected performance during the reporting period:
» | Exposure to U.S. large market capitalization equity securities benefited absolute performance, as U.S. large market capitalization equity securities posted positive returns. |
» | Exposure to developed market ex U.S. equities benefited absolute performance, as developed market ex U.S. equity securities posted positive returns. |
» | Exposure to emerging market equity securities benefited absolute performance, as emerging market equity securities posted positive returns. |
» | Exposure to U.S. small market capitalization equity securities benefited absolute performance, as U.S. small market capitalization equity securities posted positive returns. |
» | Exposure to long-term U.S. Treasury Inflation-Protected Securities (TIPS) benefited absolute performance, as long-term TIPS posted positive returns. |
SEMIANNUAL REPORT | DECEMBER 31, 2017 | 23 |
Table of Contents
PIMCO REALPATH® Blend Income Fund
Cumulative Returns Through December 31, 2017
$1,000,000 invested at the end of the month when the Fund’s Institutional Class commenced operations.
Investment Objective and Strategy Overview
PIMCO REALPATH® Blend Income Fund seeks to maximize total return, consistent with prudent investment management, by investing in a combination of affiliated and unaffiliated funds that are registered under the Investment Company Act of 1940, as amended (the “1940 Act”), 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. Fund strategies may change from time to time. Please refer to the Fund’s current prospectus for more information regarding the Fund’s strategy.
Average Annual Total Return for the period ended December 31, 2017 | ||||||||||||||
6 Months* | 1 Year | Fund Inception (12/31/14) | ||||||||||||
![]() | PIMCO REALPATH® Blend Income Fund Institutional Class | 6.25% | 12.74% | 6.11% | ||||||||||
PIMCO REALPATH® Blend Income Fund Administrative Class | 6.02% | 12.38% | 5.84% | |||||||||||
PIMCO REALPATH® Blend Income Fund Class A | 5.87% | 12.02% | 5.57% | |||||||||||
PIMCO REALPATH® Blend Income Fund Class A (adjusted) | 0.07% | 5.88% | 3.60% | |||||||||||
![]() | S&P Target Date Retirement Income Index± | 4.34% | 8.54% | 4.39% |
All Fund returns are net of fees and expenses.
* Cumulative return.
± The S&P Target Date Index Series is comprised of eleven multi-asset class indices, each corresponding to a particular target retirement date. Each index provides varying levels of exposure to each asset class. Each target date allocation is created and retired according to a pre-determined schedule related to the respective target date, as indicated in the index name, and is based on market observations through an annual survey of target date fund managers.
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. Differences in the Fund’s performance versus the index and related attribution information with respect to particular categories of securities or individual positions may be attributable, in part, to differences in the pricing methodologies used by the Fund and the index. The adjusted returns take into account the maximum sales charge of 5.50% on Class A shares. For performance data current to the most recent month-end is available at www.pimco.com or via (888) 87-PIMCO.
The Fund’s total annual operating expense ratio in effect as of period end, were 0.43% for the Institutional Class shares, 0.68% for the Administrative shares, and 0.93% for the Class A shares. Details regarding any changes to the Fund’s operating expenses, subsequent to period end, can be found in the Fund’s current prospectus, as supplemented.
24 | PIMCO EQUITY SERIES |
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Institutional Class - PBRNX | Administrative Class - PBRDX | Class A - PBRAX |
Top 10 Holdings as of 12/31/20171§
Vanguard 500 Index Fund ‘Admiral’ | 21.6% | |||||||
PIMCO Income Fund | 13.6% | |||||||
Vanguard Developed Markets Index Fund ‘Admiral’ | 11.6% | |||||||
PIMCO Real Return Fund | 10.0% | |||||||
PIMCO Total Return Fund | 8.5% | |||||||
PIMCO Foreign Bond Fund (U.S. Dollar-Hedged) | 6.2% | |||||||
PIMCO Real Return Asset Fund | 5.4% | |||||||
PIMCO High Yield Fund | 5.0% | |||||||
Vanguard Emerging Markets Stock Index Fund ‘Admiral’ | 4.5% | |||||||
PIMCO Emerging Local Bond Fund | 2.6% |
1 % of Investments, at value.
§ Top 10 Holdings and % of Investments exclude securities sold short, financial derivative instruments and short-term instruments, if any.
Fund Insights
The following affected performance during the reporting period:
» | Exposure to U.S. large market capitalization equity securities benefited absolute performance, as U.S. large market capitalization equity securities posted positive returns. |
» | Exposure to developed market ex U.S. equity securities benefited absolute performance, as developed market ex U.S. equity securities posted positive returns. |
» | Exposure to emerging market equity securities benefited absolute performance, as emerging market equity securities posted positive returns. |
» | Exposure to U.S. small market capitalization equity securities benefited absolute performance, as U.S. small market capitalization equity securities posted positive returns. |
» | Exposure to long-term U.S. Treasury Inflation-Protected Securities (TIPS) benefited absolute performance, as long-term TIPS posted positive returns. |
SEMIANNUAL REPORT | DECEMBER 31, 2017 | 25 |
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 July 1, 2017 to December 31, 2017 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 this information, 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 row 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 (07/01/17) | Ending Account Value (12/31/17) | Expenses Paid During Period* | Beginning Account Value (07/01/17) | Ending Account Value (12/31/17) | Expenses Paid During Period* | Net Annualized Expense Ratio** | ||||||||||||||||||||||||||||||||||
PIMCO REALPATH® Blend 2020 Fund | ||||||||||||||||||||||||||||||||||||||||
Institutional Class | $ | 1,000.00 | $ | 1,068.10 | $ | 0.21 | $ | 1,000.00 | $ | 1,024.87 | $ | 0.20 | 0.04 | % | ||||||||||||||||||||||||||
Administrative Class | 1,000.00 | 1,066.50 | 1.50 | 1,000.00 | 1,023.61 | 1.47 | 0.29 | |||||||||||||||||||||||||||||||||
Class A | 1,000.00 | 1,065.80 | 2.80 | 1,000.00 | 1,022.36 | 2.74 | 0.54 | |||||||||||||||||||||||||||||||||
PIMCO REALPATH® Blend 2025 Fund | ||||||||||||||||||||||||||||||||||||||||
Institutional Class | $ | 1,000.00 | $ | 1,076.20 | $ | 0.21 | $ | 1,000.00 | $ | 1,024.87 | $ | 0.20 | 0.04 | % | ||||||||||||||||||||||||||
Administrative Class | 1,000.00 | 1,074.70 | 1.51 | 1,000.00 | 1,023.61 | 1.47 | 0.29 | |||||||||||||||||||||||||||||||||
Class A | 1,000.00 | 1,073.90 | 2.81 | 1,000.00 | 1,022.36 | 2.74 | 0.54 | |||||||||||||||||||||||||||||||||
PIMCO REALPATH® Blend 2030 Fund | ||||||||||||||||||||||||||||||||||||||||
Institutional Class | $ | 1,000.00 | $ | 1,083.80 | $ | 0.26 | $ | 1,000.00 | $ | 1,024.82 | $ | 0.25 | 0.05 | % | ||||||||||||||||||||||||||
Administrative Class | 1,000.00 | 1,082.40 | 1.57 | 1,000.00 | 1,023.56 | 1.52 | 0.30 | |||||||||||||||||||||||||||||||||
Class A | 1,000.00 | 1,081.70 | 2.87 | 1,000.00 | 1,022.31 | 2.79 | 0.55 | |||||||||||||||||||||||||||||||||
PIMCO REALPATH® Blend 2035 Fund | ||||||||||||||||||||||||||||||||||||||||
Institutional Class | $ | 1,000.00 | $ | 1,089.10 | $ | 0.31 | $ | 1,000.00 | $ | 1,024.77 | $ | 0.30 | 0.06 | % | ||||||||||||||||||||||||||
Administrative Class | 1,000.00 | 1,087.60 | 1.62 | 1,000.00 | 1,023.51 | 1.57 | 0.31 | |||||||||||||||||||||||||||||||||
Class A | 1,000.00 | 1,086.50 | 2.93 | 1,000.00 | 1,022.26 | 2.84 | 0.56 |
26 | PIMCO EQUITY SERIES |
Table of Contents
Actual | Hypothetical (5% return before expenses) | |||||||||||||||||||||||||||||||||||||||
Beginning Account Value (07/01/17) | Ending Account Value (12/31/17) | Expenses Paid During Period* | Beginning Account Value (07/01/17) | Ending Account Value (12/31/17) | Expenses Paid During Period* | Net Annualized Expense Ratio** | ||||||||||||||||||||||||||||||||||
PIMCO REALPATH® Blend 2040 Fund | ||||||||||||||||||||||||||||||||||||||||
Institutional Class | $ | 1,000.00 | $ | 1,092.30 | $ | 0.31 | $ | 1,000.00 | $ | 1,024.77 | $ | 0.30 | 0.06 | % | ||||||||||||||||||||||||||
Administrative Class | 1,000.00 | 1,091.80 | 1.63 | 1,000.00 | 1,023.51 | 1.57 | 0.31 | |||||||||||||||||||||||||||||||||
Class A | 1,000.00 | 1,089.10 | 2.93 | 1,000.00 | 1,022.26 | 2.84 | 0.56 | |||||||||||||||||||||||||||||||||
PIMCO REALPATH® Blend 2045 Fund | ||||||||||||||||||||||||||||||||||||||||
Institutional Class | $ | 1,000.00 | $ | 1,096.10 | $ | 0.32 | $ | 1,000.00 | $ | 1,024.77 | $ | 0.30 | 0.06 | % | ||||||||||||||||||||||||||
Administrative Class | 1,000.00 | 1,093.80 | 1.63 | 1,000.00 | 1,023.51 | 1.57 | 0.31 | |||||||||||||||||||||||||||||||||
Class A | 1,000.00 | 1,092.00 | 2.94 | 1,000.00 | 1,022.26 | 2.84 | 0.56 | |||||||||||||||||||||||||||||||||
PIMCO REALPATH® Blend 2050 Fund | ||||||||||||||||||||||||||||||||||||||||
Institutional Class | $ | 1,000.00 | $ | 1,096.90 | $ | 0.32 | $ | 1,000.00 | $ | 1,024.77 | $ | 0.30 | 0.06 | % | ||||||||||||||||||||||||||
Administrative Class | 1,000.00 | 1,094.60 | 1.63 | 1,000.00 | 1,023.51 | 1.57 | 0.31 | |||||||||||||||||||||||||||||||||
Class A | 1,000.00 | 1,094.80 | 2.94 | 1,000.00 | 1,022.26 | 2.84 | 0.56 | |||||||||||||||||||||||||||||||||
PIMCO REALPATH® Blend 2055 Fund | ||||||||||||||||||||||||||||||||||||||||
Institutional Class | $ | 1,000.00 | $ | 1,095.40 | $ | 0.32 | $ | 1,000.00 | $ | 1,024.77 | $ | 0.30 | 0.06 | % | ||||||||||||||||||||||||||
Administrative Class | 1,000.00 | 1,094.10 | 1.63 | 1,000.00 | 1,023.51 | 1.57 | 0.31 | |||||||||||||||||||||||||||||||||
Class A | 1,000.00 | 1,093.20 | 2.94 | 1,000.00 | 1,022.26 | 2.84 | 0.56 | |||||||||||||||||||||||||||||||||
PIMCO REALPATH® Blend Income Fund | ||||||||||||||||||||||||||||||||||||||||
Institutional Class | $ | 1,000.00 | $ | 1,062.50 | $ | 0.21 | $ | 1,000.00 | $ | 1,024.87 | $ | 0.20 | 0.04 | % | ||||||||||||||||||||||||||
Administrative Class | 1,000.00 | 1,060.20 | 1.50 | 1,000.00 | 1,023.61 | 1.47 | 0.29 | |||||||||||||||||||||||||||||||||
Class A | 1,000.00 | 1,058.70 | 2.79 | 1,000.00 | 1,022.36 | 2.74 | 0.54 |
* 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 183/365 (to reflect the one-half year period).
** Net Annualized Expense Ratio is reflective of any applicable contractual fee waivers and/or expense reimbursements or voluntary fee waivers. Details regarding fee waivers, if any, can be found in Note 8, Fees and Expenses, in the Notes to Financial Statements.
SEMIANNUAL REPORT | DECEMBER 31, 2017 | 27 |
Table of Contents
Investment Operations | Less Distributions(b) | |||||||||||||||||||||||||||||||||||
Selected Per Share Data for the Year or Period Ended^: | Net Asset Value Beginning of Year or Period | Net Investment Income (Loss)(a) | Net | Total | From Net | From Net | Tax Basis | Total | ||||||||||||||||||||||||||||
PIMCO REALPATH® Blend 2020 Fund | ||||||||||||||||||||||||||||||||||||
Institutional Class | ||||||||||||||||||||||||||||||||||||
07/01/2017 - 12/31/2017+ | $ | 10.58 | $ | 0.16 | $ | 0.56 | $ | 0.72 | $ | (0.19 | ) | $ | 0.00 | $ | 0.00 | $ | (0.19 | ) | ||||||||||||||||||
06/30/2017 | 9.90 | 0.31 | 0.60 | 0.91 | (0.23 | ) | 0.00 | 0.00 | (0.23 | ) | ||||||||||||||||||||||||||
06/30/2016 | 9.97 | 0.32 | (0.06 | ) | 0.26 | (0.31 | ) | (0.02 | ) | 0.00 | (0.33 | ) | ||||||||||||||||||||||||
12/31/2014 - 06/30/2015 | 10.00 | 0.11 | (0.09 | ) | 0.02 | (0.05 | ) | 0.00 | 0.00 | (0.05 | ) | |||||||||||||||||||||||||
Administrative Class | ||||||||||||||||||||||||||||||||||||
07/01/2017 - 12/31/2017+ | 10.58 | 0.30 | 0.40 | 0.70 | (0.18 | ) | 0.00 | 0.00 | (0.18 | ) | ||||||||||||||||||||||||||
06/30/2017 | 9.90 | 0.27 | 0.62 | 0.89 | (0.21 | ) | 0.00 | 0.00 | (0.21 | ) | ||||||||||||||||||||||||||
06/30/2016 | 9.97 | 0.29 | (0.06 | ) | 0.23 | (0.28 | ) | (0.02 | ) | 0.00 | (0.30 | ) | ||||||||||||||||||||||||
12/31/2014 - 06/30/2015 | 10.00 | 0.10 | (0.09 | ) | 0.01 | (0.04 | ) | 0.00 | 0.00 | (0.04 | ) | |||||||||||||||||||||||||
Class A | ||||||||||||||||||||||||||||||||||||
07/01/2017 - 12/31/2017+ | 10.57 | 0.14 | 0.55 | 0.69 | (0.16 | ) | 0.00 | 0.00 | (0.16 | ) | ||||||||||||||||||||||||||
06/30/2017 | 9.91 | 0.33 | 0.53 | 0.86 | (0.20 | ) | 0.00 | 0.00 | (0.20 | ) | ||||||||||||||||||||||||||
06/30/2016 | 9.97 | 0.27 | (0.06 | ) | 0.21 | (0.25 | ) | (0.02 | ) | 0.00 | (0.27 | ) | ||||||||||||||||||||||||
12/31/2014 - 06/30/2015 | 10.00 | 0.09 | (0.09 | ) | 0.00 | (0.03 | ) | 0.00 | 0.00 | (0.03 | ) | |||||||||||||||||||||||||
PIMCO REALPATH® Blend 2025 Fund | ||||||||||||||||||||||||||||||||||||
Institutional Class | ||||||||||||||||||||||||||||||||||||
07/01/2017 - 12/31/2017+ | $ | 10.63 | $ | 0.16 | $ | 0.65 | $ | 0.81 | $ | (0.17 | ) | $ | 0.00 | $ | 0.00 | $ | (0.17 | ) | ||||||||||||||||||
06/30/2017 | 9.85 | 0.30 | 0.70 | 1.00 | (0.22 | ) | 0.00 | 0.00 | (0.22 | ) | ||||||||||||||||||||||||||
06/30/2016 | 9.99 | 0.32 | (0.12 | ) | 0.20 | (0.32 | ) | (0.02 | ) | 0.00 | (0.34 | ) | ||||||||||||||||||||||||
12/31/2014 - 06/30/2015 | 10.00 | 0.12 | (0.08 | ) | 0.04 | (0.05 | ) | 0.00 | 0.00 | (0.05 | ) | |||||||||||||||||||||||||
Administrative Class | ||||||||||||||||||||||||||||||||||||
07/01/2017 - 12/31/2017+ | 10.62 | 0.33 | 0.46 | 0.79 | (0.16 | ) | 0.00 | 0.00 | (0.16 | ) | ||||||||||||||||||||||||||
06/30/2017 | 9.85 | 0.28 | 0.69 | 0.97 | (0.20 | ) | 0.00 | 0.00 | (0.20 | ) | ||||||||||||||||||||||||||
06/30/2016 | 9.99 | 0.28 | (0.11 | ) | 0.17 | (0.29 | ) | (0.02 | ) | 0.00 | (0.31 | ) | ||||||||||||||||||||||||
12/31/2014 - 06/30/2015 | 10.00 | 0.11 | (0.08 | ) | 0.03 | (0.04 | ) | 0.00 | 0.00 | (0.04 | ) | |||||||||||||||||||||||||
Class A | ||||||||||||||||||||||||||||||||||||
07/01/2017 - 12/31/2017+ | 10.62 | 0.13 | 0.65 | 0.78 | (0.14 | ) | 0.00 | 0.00 | (0.14 | ) | ||||||||||||||||||||||||||
06/30/2017 | 9.85 | 0.32 | 0.64 | 0.96 | (0.19 | ) | 0.00 | 0.00 | (0.19 | ) | ||||||||||||||||||||||||||
06/30/2016 | 9.99 | 0.24 | (0.10 | ) | 0.14 | (0.26 | ) | (0.02 | ) | 0.00 | (0.28 | ) | ||||||||||||||||||||||||
12/31/2014 - 06/30/2015 | 10.00 | 0.10 | (0.08 | ) | 0.02 | (0.03 | ) | 0.00 | 0.00 | (0.03 | ) | |||||||||||||||||||||||||
PIMCO REALPATH® Blend 2030 Fund | ||||||||||||||||||||||||||||||||||||
Institutional Class | ||||||||||||||||||||||||||||||||||||
07/01/2017 - 12/31/2017+ | $ | 10.81 | $ | 0.16 | $ | 0.74 | $ | 0.90 | $ | (0.20 | ) | $ | (0.02 | ) | $ | 0.00 | $ | (0.22 | ) | |||||||||||||||||
06/30/2017 | 9.87 | 0.31 | 0.88 | 1.19 | (0.25 | ) | 0.00 | 0.00 | (0.25 | ) | ||||||||||||||||||||||||||
06/30/2016 | 10.00 | 0.31 | (0.16 | ) | 0.15 | (0.25 | ) | (0.03 | ) | 0.00 | (0.28 | ) | ||||||||||||||||||||||||
12/31/2014 - 06/30/2015 | 10.00 | 0.13 | (0.08 | ) | 0.05 | (0.05 | ) | 0.00 | 0.00 | (0.05 | ) | |||||||||||||||||||||||||
Administrative Class | ||||||||||||||||||||||||||||||||||||
07/01/2017 - 12/31/2017+ | 10.80 | 0.36 | 0.53 | 0.89 | (0.20 | ) | (0.02 | ) | 0.00 | (0.22 | ) | |||||||||||||||||||||||||
06/30/2017 | 9.88 | 0.29 | 0.85 | 1.14 | (0.22 | ) | 0.00 | 0.00 | (0.22 | ) | ||||||||||||||||||||||||||
06/30/2016 | 10.00 | 0.29 | (0.15 | ) | 0.14 | (0.23 | ) | (0.03 | ) | 0.00 | (0.26 | ) | ||||||||||||||||||||||||
12/31/2014 - 06/30/2015 | 10.00 | 0.12 | (0.08 | ) | 0.04 | (0.04 | ) | 0.00 | 0.00 | (0.04 | ) | |||||||||||||||||||||||||
Class A | ||||||||||||||||||||||||||||||||||||
07/01/2017 - 12/31/2017+ | 10.78 | 0.13 | 0.75 | 0.88 | (0.18 | ) | (0.02 | ) | 0.00 | (0.20 | ) | |||||||||||||||||||||||||
06/30/2017 | 9.87 | 0.33 | 0.80 | 1.13 | (0.22 | ) | 0.00 | 0.00 | (0.22 | ) | ||||||||||||||||||||||||||
06/30/2016 | 10.00 | 0.26 | (0.16 | ) | 0.10 | (0.20 | ) | (0.03 | ) | 0.00 | (0.23 | ) | ||||||||||||||||||||||||
12/31/2014 - 06/30/2015 | 10.00 | 0.10 | (0.07 | ) | 0.03 | (0.03 | ) | 0.00 | 0.00 | (0.03 | ) |
28 | PIMCO EQUITY SERIES | See Accompanying Notes |
Table of Contents
Ratios/Supplemental Data | ||||||||||||||||||||||||||||||||||
Ratios to Average Net Assets(c) | ||||||||||||||||||||||||||||||||||
Net Asset or Period | Total Return | Net Assets Period (000s) | Expenses | Expenses | Expenses | Expenses and Waivers | Net | Portfolio Turnover | ||||||||||||||||||||||||||
$ | 11.11 | 6.81 | % | $ | 9,157 | 0.04 | %* | 0.04 | %* | 0.04 | %* | 0.04 | %* | 2.94 | %* | 28 | % | |||||||||||||||||
10.58 | 9.33 | 8,511 | 0.04 | 0.05 | 0.04 | 0.05 | 2.97 | 36 | ||||||||||||||||||||||||||
9.90 | 2.77 | 4,152 | 0.03 | 0.03 | 0.03 | 0.03 | 3.28 | 45 | ||||||||||||||||||||||||||
9.97 | 0.19 | 3,007 | 0.03 | * | 0.57 | * | 0.03 | * | 0.57 | * | 2.20 | * | 5 | |||||||||||||||||||||
11.10 | 6.65 | 11,471 | 0.29 | * | 0.29 | * | 0.29 | * | 0.29 | * | 5.42 | * | 28 | |||||||||||||||||||||
10.58 | 9.06 | 11 | 0.29 | 0.30 | 0.29 | 0.30 | 2.63 | 36 | ||||||||||||||||||||||||||
9.90 | 2.45 | 10 | 0.28 | 0.28 | 0.28 | 0.28 | 3.01 | 45 | ||||||||||||||||||||||||||
9.97 | 0.08 | 10 | 0.28 | * | 0.82 | * | 0.28 | * | 0.82 | * | 1.92 | * | 5 | |||||||||||||||||||||
11.10 | 6.58 | 3,085 | 0.54 | * | 0.54 | * | 0.54 | * | 0.54 | * | 2.50 | * | 28 | |||||||||||||||||||||
10.57 | 8.73 | 2,394 | 0.54 | 0.55 | 0.54 | 0.55 | 3.12 | 36 | ||||||||||||||||||||||||||
9.91 | 2.29 | 10 | 0.53 | 0.53 | 0.53 | 0.53 | 2.81 | 45 | ||||||||||||||||||||||||||
9.97 | (0.03 | ) | 10 | 0.53 | * | 1.07 | * | 0.53 | * | 1.07 | * | 1.70 | * | 5 | ||||||||||||||||||||
$ | 11.27 | 7.62 | % | $ | 7,264 | 0.04 | %* | 0.04 | %* | 0.04 | %* | 0.04 | %* | 2.90 | %* | 21 | % | |||||||||||||||||
10.63 | 10.33 | 6,131 | 0.04 | 0.05 | 0.04 | 0.05 | 2.94 | 27 | ||||||||||||||||||||||||||
9.85 | 2.10 | 3,395 | 0.03 | 0.03 | 0.03 | 0.03 | 3.32 | 59 | ||||||||||||||||||||||||||
9.99 | 0.39 | 3,026 | 0.03 | * | 0.57 | * | 0.03 | * | 0.57 | * | 2.38 | * | 5 | |||||||||||||||||||||
11.25 | 7.47 | 17,124 | 0.29 | * | 0.29 | * | 0.29 | * | 0.29 | * | 5.83 | * | 21 | |||||||||||||||||||||
10.62 | 9.98 | 28 | 0.29 | 0.30 | 0.29 | 0.30 | 2.72 | 27 | ||||||||||||||||||||||||||
9.85 | 1.81 | 16 | 0.28 | 0.28 | 0.28 | 0.28 | 2.96 | 59 | ||||||||||||||||||||||||||
9.99 | 0.30 | 15 | 0.28 | * | 0.82 | * | 0.28 | * | 0.82 | * | 2.20 | * | 5 | |||||||||||||||||||||
11.26 | 7.39 | 4,860 | 0.54 | * | 0.54 | * | 0.54 | * | 0.54 | * | 2.43 | * | 21 | |||||||||||||||||||||
10.62 | 9.85 | 3,899 | 0.54 | 0.55 | 0.54 | 0.55 | 3.06 | 27 | ||||||||||||||||||||||||||
9.85 | 1.50 | 27 | 0.53 | 0.53 | 0.53 | 0.53 | 2.49 | 59 | ||||||||||||||||||||||||||
9.99 | 0.17 | 11 | 0.53 | * | 1.07 | * | 0.53 | * | 1.07 | * | 1.92 | * | 5 | |||||||||||||||||||||
$ | 11.49 | 8.38 | % | $ | 13,963 | 0.05 | %* | 0.05 | %* | 0.05 | %* | 0.05 | %* | 2.80 | %* | 7 | % | |||||||||||||||||
10.81 | 12.20 | 12,978 | 0.05 | 0.06 | 0.05 | 0.06 | 2.99 | 23 | ||||||||||||||||||||||||||
9.87 | 1.67 | 6,409 | 0.04 | 0.04 | 0.04 | 0.04 | 3.22 | 65 | ||||||||||||||||||||||||||
10.00 | 0.49 | 3,015 | 0.04 | * | 0.58 | * | 0.04 | * | 0.58 | * | 2.55 | * | 6 | |||||||||||||||||||||
11.47 | 8.24 | 14,834 | 0.30 | * | 0.30 | * | 0.30 | * | 0.30 | * | 6.23 | * | 7 | |||||||||||||||||||||
10.80 | 11.76 | 39 | 0.30 | 0.31 | 0.30 | 0.31 | 2.75 | 23 | ||||||||||||||||||||||||||
9.88 | 1.52 | 23 | 0.29 | 0.29 | 0.29 | 0.29 | 3.05 | 65 | ||||||||||||||||||||||||||
10.00 | 0.37 | 10 | 0.29 | * | 0.83 | * | 0.29 | * | 0.83 | * | 2.30 | * | 6 | |||||||||||||||||||||
11.46 | 8.17 | 3,812 | 0.55 | * | 0.55 | * | 0.55 | * | 0.55 | * | 2.36 | * | 7 | |||||||||||||||||||||
10.78 | 11.64 | 3,118 | 0.55 | 0.56 | 0.55 | 0.56 | 3.13 | 23 | ||||||||||||||||||||||||||
9.87 | 1.15 | 13 | 0.54 | 0.54 | 0.54 | 0.54 | 2.74 | 65 | ||||||||||||||||||||||||||
10.00 | 0.27 | 10 | 0.54 | * | 1.08 | * | 0.54 | * | 1.08 | * | 2.04 | * | 6 |
SEMIANNUAL REPORT | DECEMBER 31, 2017 | 29 |
Table of Contents
Financial Highlights (Cont.)
Investment Operations | Less Distributions(b) | |||||||||||||||||||||||||||||||||||
Selected Per Share Data for the Year or Period Ended^: | Net Asset Value Beginning of Year or Period | Net | Net | Total | From Net | From Net | Tax Basis | Total | ||||||||||||||||||||||||||||
PIMCO REALPATH® Blend 2035 Fund | ||||||||||||||||||||||||||||||||||||
Institutional Class | ||||||||||||||||||||||||||||||||||||
07/01/2017 - 12/31/2017+ | $ | 10.91 | $ | 0.15 | $ | 0.82 | $ | 0.97 | $ | (0.23 | ) | $ | 0.00 | $ | 0.00 | $ | (0.23 | ) | ||||||||||||||||||
06/30/2017 | 9.83 | 0.31 | 0.98 | 1.29 | (0.21 | ) | 0.00 | 0.00 | (0.21 | ) | ||||||||||||||||||||||||||
06/30/2016 | 10.04 | 0.29 | (0.24 | ) | 0.05 | (0.23 | ) | (0.03 | ) | 0.00 | (0.26 | ) | ||||||||||||||||||||||||
12/31/2014 - 06/30/2015 | 10.00 | 0.13 | (0.04 | ) | 0.09 | (0.05 | ) | 0.00 | 0.00 | (0.05 | ) | |||||||||||||||||||||||||
Administrative Class | ||||||||||||||||||||||||||||||||||||
07/01/2017 - 12/31/2017+ | 10.91 | 0.39 | 0.56 | 0.95 | (0.22 | ) | 0.00 | 0.00 | (0.22 | ) | ||||||||||||||||||||||||||
06/30/2017 | 9.83 | 0.25 | 1.01 | 1.26 | (0.18 | ) | 0.00 | 0.00 | (0.18 | ) | ||||||||||||||||||||||||||
06/30/2016 | 10.04 | 0.26 | (0.24 | ) | 0.02 | (0.20 | ) | (0.03 | ) | 0.00 | (0.23 | ) | ||||||||||||||||||||||||
12/31/2014 - 06/30/2015 | 10.00 | 0.11 | (0.03 | ) | 0.08 | (0.04 | ) | 0.00 | 0.00 | (0.04 | ) | |||||||||||||||||||||||||
Class A | ||||||||||||||||||||||||||||||||||||
07/01/2017 - 12/31/2017+ | 10.94 | 0.13 | 0.81 | 0.94 | (0.20 | ) | 0.00 | 0.00 | (0.20 | ) | ||||||||||||||||||||||||||
06/30/2017 | 9.88 | 0.32 | 0.92 | 1.24 | (0.18 | ) | 0.00 | 0.00 | (0.18 | ) | ||||||||||||||||||||||||||
06/30/2016 | 10.03 | 0.20 | (0.19 | ) | 0.01 | (0.13 | ) | (0.03 | ) | 0.00 | (0.16 | ) | ||||||||||||||||||||||||
12/31/2014 - 06/30/2015 | 10.00 | 0.12 | (0.05 | ) | 0.07 | (0.04 | ) | 0.00 | 0.00 | (0.04 | ) | |||||||||||||||||||||||||
PIMCO REALPATH® Blend 2040 Fund | ||||||||||||||||||||||||||||||||||||
Institutional Class | ||||||||||||||||||||||||||||||||||||
07/01/2017 - 12/31/2017+ | $ | 11.00 | $ | 0.15 | $ | 0.86 | $ | 1.01 | $ | (0.24 | ) | $ | (0.02 | ) | $ | 0.00 | $ | (0.26 | ) | |||||||||||||||||
06/30/2017 | 9.84 | 0.34 | 1.00 | 1.34 | (0.18 | ) | 0.00 | 0.00 | (0.18 | ) | ||||||||||||||||||||||||||
06/30/2016 | 10.07 | 0.28 | (0.24 | ) | 0.04 | (0.24 | ) | (0.03 | ) | 0.00 | (0.27 | ) | ||||||||||||||||||||||||
12/31/2014 - 06/30/2015 | 10.00 | 0.12 | 0.00 | 0.12 | (0.05 | ) | 0.00 | 0.00 | (0.05 | ) | ||||||||||||||||||||||||||
Administrative Class | ||||||||||||||||||||||||||||||||||||
07/01/2017 - 12/31/2017+ | 10.99 | 0.40 | 0.60 | 1.00 | (0.23 | ) | (0.02 | ) | 0.00 | (0.25 | ) | |||||||||||||||||||||||||
06/30/2017 | 9.83 | 0.24 | 1.07 | 1.31 | (0.15 | ) | 0.00 | 0.00 | (0.15 | ) | ||||||||||||||||||||||||||
06/30/2016 | 10.07 | �� | 0.27 | (0.27 | ) | 0.00 | (0.21 | ) | (0.03 | ) | 0.00 | (0.24 | ) | |||||||||||||||||||||||
12/31/2014 - 06/30/2015 | 10.00 | 0.11 | 0.00 | 0.11 | (0.04 | ) | 0.00 | 0.00 | (0.04 | ) | ||||||||||||||||||||||||||
Class A | ||||||||||||||||||||||||||||||||||||
07/01/2017 - 12/31/2017+ | 10.98 | 0.13 | 0.84 | 0.97 | (0.21 | ) | (0.02 | ) | 0.00 | (0.23 | ) | |||||||||||||||||||||||||
06/30/2017 | 9.83 | 0.32 | 0.97 | 1.29 | (0.14 | ) | 0.00 | 0.00 | (0.14 | ) | ||||||||||||||||||||||||||
06/30/2016 | 10.07 | 0.25 | (0.27 | ) | (0.02 | ) | (0.19 | ) | (0.03 | ) | 0.00 | (0.22 | ) | |||||||||||||||||||||||
12/31/2014 - 06/30/2015 | 10.00 | 0.10 | 0.00 | 0.10 | (0.03 | ) | 0.00 | 0.00 | (0.03 | ) | ||||||||||||||||||||||||||
PIMCO REALPATH® Blend 2045 Fund | ||||||||||||||||||||||||||||||||||||
Institutional Class | ||||||||||||||||||||||||||||||||||||
07/01/2017 - 12/31/2017+ | $ | 11.00 | $ | 0.15 | $ | 0.91 | $ | 1.06 | $ | (0.24 | ) | $ | 0.00 | $ | 0.00 | $ | (0.24 | ) | ||||||||||||||||||
06/30/2017 | 9.79 | 0.35 | 1.02 | 1.37 | (0.16 | ) | 0.00 | 0.00 | (0.16 | ) | ||||||||||||||||||||||||||
06/30/2016 | 10.10 | 0.27 | (0.32 | ) | (0.05 | ) | (0.23 | ) | (0.03 | ) | 0.00 | (0.26 | ) | |||||||||||||||||||||||
12/31/2014 - 06/30/2015 | 10.00 | 0.12 | 0.03 | 0.15 | (0.05 | ) | 0.00 | 0.00 | (0.05 | ) | ||||||||||||||||||||||||||
Administrative Class | ||||||||||||||||||||||||||||||||||||
07/01/2017 - 12/31/2017+ | 10.99 | 0.40 | 0.63 | 1.03 | (0.23 | ) | 0.00 | 0.00 | (0.23 | ) | ||||||||||||||||||||||||||
06/30/2017 | 9.79 | 0.25 | 1.09 | 1.34 | (0.14 | ) | 0.00 | 0.00 | (0.14 | ) | ||||||||||||||||||||||||||
06/30/2016 | 10.09 | 0.24 | (0.31 | ) | (0.07 | ) | (0.20 | ) | (0.03 | ) | 0.00 | (0.23 | ) | |||||||||||||||||||||||
12/31/2014 - 06/30/2015 | 10.00 | 0.14 | (0.01 | ) | 0.13 | (0.04 | ) | 0.00 | 0.00 | (0.04 | ) | |||||||||||||||||||||||||
Class A | ||||||||||||||||||||||||||||||||||||
07/01/2017 - 12/31/2017+ | 10.99 | 0.12 | 0.89 | 1.01 | (0.21 | ) | 0.00 | 0.00 | (0.21 | ) | ||||||||||||||||||||||||||
06/30/2017 | 9.80 | 0.32 | 0.99 | 1.31 | (0.12 | ) | 0.00 | 0.00 | (0.12 | ) | ||||||||||||||||||||||||||
06/30/2016 | 10.09 | 0.22 | (0.31 | ) | (0.09 | ) | (0.17 | ) | (0.03 | ) | 0.00 | (0.20 | ) | |||||||||||||||||||||||
12/31/2014 - 06/30/2015 | 10.00 | 0.09 | 0.03 | 0.12 | (0.03 | ) | 0.00 | 0.00 | (0.03 | ) |
30 | PIMCO EQUITY SERIES | See Accompanying Notes |
Table of Contents
Ratios/Supplemental Data | ||||||||||||||||||||||||||||||||||
Ratios to Average Net Assets(c) | ||||||||||||||||||||||||||||||||||
Net Asset or Period | Total Return | Net Assets Period (000s) | Expenses | Expenses | Expenses | Expenses and Waivers | Net | Portfolio Turnover | ||||||||||||||||||||||||||
$ | 11.65 | 8.91 | % | $ | 17,924 | 0.06 | %* | 0.06 | %* | 0.06 | %* | 0.06 | %* | 2.69 | %* | 9 | % | |||||||||||||||||
10.91 | 13.29 | 17,276 | 0.06 | 0.07 | 0.06 | 0.07 | 2.95 | 20 | ||||||||||||||||||||||||||
9.83 | 0.64 | 5,958 | 0.05 | 0.05 | 0.05 | 0.05 | 3.05 | 56 | ||||||||||||||||||||||||||
10.04 | 0.89 | 3,027 | 0.05 | * | 0.58 | * | 0.05 | * | 0.58 | * | 2.48 | * | 6 | |||||||||||||||||||||
11.64 | 8.76 | 11,948 | 0.31 | * | 0.31 | * | 0.31 | * | 0.31 | * | 6.60 | * | 9 | |||||||||||||||||||||
10.91 | 13.01 | 34 | 0.31 | 0.32 | 0.31 | 0.32 | 2.35 | 20 | ||||||||||||||||||||||||||
9.83 | 0.34 | 10 | 0.30 | 0.30 | 0.30 | 0.30 | 2.69 | 56 | ||||||||||||||||||||||||||
10.04 | 0.77 | 10 | 0.30 | * | 0.83 | * | 0.30 | * | 0.83 | * | 2.22 | * | 6 | |||||||||||||||||||||
11.68 | 8.65 | 4,098 | 0.56 | * | 0.56 | * | 0.56 | * | 0.56 | * | 2.28 | * | 9 | |||||||||||||||||||||
10.94 | 12.66 | 3,296 | 0.56 | 0.57 | 0.56 | 0.57 | 2.96 | 20 | ||||||||||||||||||||||||||
9.88 | 0.21 | 10 | 0.55 | 0.55 | 0.55 | 0.55 | 2.10 | 56 | ||||||||||||||||||||||||||
10.03 | 0.65 | 22 | 0.55 | * | 1.08 | * | 0.55 | * | 1.08 | * | 2.33 | * | 6 | |||||||||||||||||||||
$ | 11.75 | 9.23 | % | $ | 25,124 | 0.06 | %* | 0.06 | %* | 0.06 | %* | 0.06 | %* | 2.62 | %* | 11 | % | |||||||||||||||||
11.00 | 13.73 | 24,381 | 0.06 | 0.07 | 0.06 | 0.07 | 3.16 | 15 | ||||||||||||||||||||||||||
9.84 | 0.48 | 3,509 | 0.05 | 0.05 | 0.05 | 0.05 | 2.90 | 43 | ||||||||||||||||||||||||||
10.07 | 1.19 | 3,036 | 0.05 | * | 0.58 | * | 0.05 | * | 0.58 | * | 2.39 | * | 6 | |||||||||||||||||||||
11.74 | 9.18 | 7,879 | 0.31 | * | 0.31 | * | 0.31 | * | 0.31 | * | 6.77 | * | 11 | |||||||||||||||||||||
10.99 | 13.48 | 52 | 0.31 | 0.32 | 0.31 | 0.32 | 2.33 | 15 | ||||||||||||||||||||||||||
9.83 | 0.14 | 36 | 0.30 | 0.30 | 0.30 | 0.30 | 2.89 | 43 | ||||||||||||||||||||||||||
10.07 | 1.08 | 12 | 0.30 | * | 0.83 | * | 0.30 | * | 0.83 | * | 2.20 | * | 6 | |||||||||||||||||||||
11.72 | 8.91 | 5,215 | 0.56 | * | 0.56 | * | 0.56 | * | 0.56 | * | 2.19 | * | 11 | |||||||||||||||||||||
10.98 | 13.24 | 5,285 | 0.56 | 0.57 | 0.56 | 0.57 | 2.98 | 15 | ||||||||||||||||||||||||||
9.83 | (0.10 | ) | 30 | 0.55 | 0.55 | 0.55 | 0.55 | 2.63 | 43 | |||||||||||||||||||||||||
10.07 | 0.98 | 11 | 0.55 | * | 1.08 | * | 0.55 | * | 1.08 | * | 1.93 | * | 6 | |||||||||||||||||||||
$ | 11.82 | 9.61 | % | $ | 39,280 | 0.06 | %* | 0.06 | %* | 0.06 | %* | 0.06 | %* | 2.56 | %* | 5 | % | |||||||||||||||||
11.00 | 14.12 | 36,311 | 0.06 | 0.07 | 0.06 | 0.07 | 3.27 | 10 | ||||||||||||||||||||||||||
9.79 | (0.45 | ) | 3,415 | 0.05 | 0.05 | 0.05 | 0.05 | 2.84 | 41 | |||||||||||||||||||||||||
10.10 | 1.48 | 3,044 | 0.05 | * | 0.58 | * | 0.05 | * | 0.58 | * | 2.37 | * | 6 | |||||||||||||||||||||
11.79 | 9.38 | 7,395 | 0.31 | * | 0.31 | * | 0.31 | * | 0.31 | * | 6.81 | * | 5 | |||||||||||||||||||||
10.99 | 13.77 | 60 | 0.31 | 0.32 | 0.31 | 0.32 | 2.35 | 10 | ||||||||||||||||||||||||||
9.79 | (0.63 | ) | 39 | 0.30 | 0.30 | 0.30 | 0.30 | 2.55 | 41 | |||||||||||||||||||||||||
10.09 | 1.33 | 39 | 0.30 | * | 0.83 | * | 0.30 | * | 0.83 | * | 2.69 | * | 6 | |||||||||||||||||||||
11.79 | 9.20 | 3,598 | 0.56 | * | 0.56 | * | 0.56 | * | 0.56 | * | 2.09 | * | 5 | |||||||||||||||||||||
10.99 | 13.50 | 3,071 | 0.56 | 0.57 | 0.56 | 0.57 | 2.94 | 10 | ||||||||||||||||||||||||||
9.80 | (0.81 | ) | 10 | 0.55 | 0.55 | 0.55 | 0.55 | 2.31 | 41 | |||||||||||||||||||||||||
10.09 | 1.16 | 10 | 0.55 | * | 1.08 | * | 0.55 | * | 1.08 | * | 1.86 | * | 6 |
SEMIANNUAL REPORT | DECEMBER 31, 2017 | 31 |
Table of Contents
Financial Highlights (Cont.)
Investment Operations | Less Distributions(b) | |||||||||||||||||||||||||||||||||||
Selected Per Share Data for the Year or Period Ended^: | Net Asset Value Beginning of Year or Period | Net | Net Realized/ Unrealized Gain (Loss) | Total | From Net | From Net | Tax Basis | Total | ||||||||||||||||||||||||||||
PIMCO REALPATH® Blend 2050 Fund | ||||||||||||||||||||||||||||||||||||
Institutional Class | ||||||||||||||||||||||||||||||||||||
07/01/2017 - 12/31/2017+ | $ | 11.05 | $ | 0.15 | $ | 0.92 | $ | 1.07 | $ | (0.24 | ) | $ | 0.00 | $ | 0.00 | $ | (0.24 | ) | ||||||||||||||||||
06/30/2017 | 9.82 | 0.35 | 1.05 | 1.40 | (0.17 | ) | 0.00 | 0.00 | (0.17 | ) | ||||||||||||||||||||||||||
06/30/2016 | 10.11 | 0.27 | (0.32 | ) | (0.05 | ) | (0.21 | ) | (0.03 | ) | 0.00 | (0.24 | ) | |||||||||||||||||||||||
12/31/2014 - 06/30/2015 | 10.00 | 0.12 | 0.04 | 0.16 | (0.05 | ) | 0.00 | 0.00 | (0.05 | ) | ||||||||||||||||||||||||||
Administrative Class | ||||||||||||||||||||||||||||||||||||
07/01/2017 - 12/31/2017+ | 11.04 | 0.42 | 0.62 | 1.04 | (0.23 | ) | 0.00 | 0.00 | (0.23 | ) | ||||||||||||||||||||||||||
06/30/2017 | 9.82 | 0.24 | 1.13 | 1.37 | (0.15 | ) | 0.00 | 0.00 | (0.15 | ) | ||||||||||||||||||||||||||
06/30/2016 | 10.10 | 0.24 | (0.30 | ) | (0.06 | ) | (0.19 | ) | (0.03 | ) | 0.00 | (0.22 | ) | |||||||||||||||||||||||
12/31/2014 - 06/30/2015 | 10.00 | 0.12 | 0.02 | 0.14 | (0.04 | ) | 0.00 | 0.00 | (0.04 | ) | ||||||||||||||||||||||||||
Class A | ||||||||||||||||||||||||||||||||||||
07/01/2017 - 12/31/2017+ | 11.00 | 0.12 | 0.92 | 1.04 | (0.21 | ) | 0.00 | 0.00 | (0.21 | ) | ||||||||||||||||||||||||||
06/30/2017 | 9.80 | 0.30 | 1.03 | 1.33 | (0.13 | ) | 0.00 | 0.00 | (0.13 | ) | ||||||||||||||||||||||||||
06/30/2016 | 10.10 | 0.23 | (0.32 | ) | (0.09 | ) | (0.18 | ) | (0.03 | ) | 0.00 | (0.21 | ) | |||||||||||||||||||||||
12/31/2014 - 06/30/2015 | 10.00 | 0.10 | 0.03 | 0.13 | (0.03 | ) | 0.00 | 0.00 | (0.03 | ) | ||||||||||||||||||||||||||
PIMCO REALPATH® Blend 2055 Fund | ||||||||||||||||||||||||||||||||||||
Institutional Class | ||||||||||||||||||||||||||||||||||||
07/01/2017 - 12/31/2017+ | $ | 11.02 | $ | 0.15 | $ | 0.90 | $ | 1.05 | $ | (0.31 | ) | $ | 0.00 | $ | 0.00 | $ | (0.31 | ) | ||||||||||||||||||
06/30/2017 | 9.80 | 0.27 | 1.12 | 1.39 | (0.17 | ) | 0.00 | 0.00 | (0.17 | ) | ||||||||||||||||||||||||||
06/30/2016 | 10.11 | 0.27 | (0.33 | ) | (0.06 | ) | (0.22 | ) | (0.03 | ) | 0.00 | (0.25 | ) | |||||||||||||||||||||||
12/31/2014 - 06/30/2015 | 10.00 | 0.12 | 0.04 | 0.16 | (0.05 | ) | 0.00 | 0.00 | (0.05 | ) | ||||||||||||||||||||||||||
Administrative Class | ||||||||||||||||||||||||||||||||||||
07/01/2017 - 12/31/2017+ | 11.03 | 0.14 | 0.90 | 1.04 | (0.30 | ) | 0.00 | 0.00 | (0.30 | ) | ||||||||||||||||||||||||||
06/30/2017 | 9.80 | 0.22 | 1.15 | 1.37 | (0.14 | ) | 0.00 | 0.00 | (0.14 | ) | ||||||||||||||||||||||||||
06/30/2016 | 10.11 | 0.24 | (0.33 | ) | (0.09 | ) | (0.19 | ) | (0.03 | ) | 0.00 | (0.22 | ) | |||||||||||||||||||||||
12/31/2014 - 06/30/2015 | 10.00 | 0.11 | 0.04 | 0.15 | (0.04 | ) | 0.00 | 0.00 | (0.04 | ) | ||||||||||||||||||||||||||
Class A | ||||||||||||||||||||||||||||||||||||
07/01/2017 - 12/31/2017+ | 10.98 | 0.11 | 0.91 | 1.02 | (0.28 | ) | 0.00 | 0.00 | (0.28 | ) | ||||||||||||||||||||||||||
06/30/2017 | 9.79 | 0.31 | 1.01 | 1.32 | (0.13 | ) | 0.00 | 0.00 | (0.13 | ) | ||||||||||||||||||||||||||
06/30/2016 | 10.09 | 0.22 | (0.32 | ) | (0.10 | ) | (0.17 | ) | (0.03 | ) | 0.00 | (0.20 | ) | |||||||||||||||||||||||
12/31/2014 - 06/30/2015 | 10.00 | 0.13 | 0.00 | 0.13 | (0.04 | ) | 0.00 | 0.00 | (0.04 | ) | ||||||||||||||||||||||||||
PIMCO REALPATH® Blend Income Fund | ||||||||||||||||||||||||||||||||||||
Institutional Class | ||||||||||||||||||||||||||||||||||||
07/01/2017 - 12/31/2017+ | $ | 10.54 | $ | 0.16 | $ | 0.50 | $ | 0.66 | $ | (0.16 | ) | $ | 0.00 | $ | 0.00 | $ | (0.16 | ) | ||||||||||||||||||
06/30/2017 | 9.92 | 0.31 | 0.56 | 0.87 | (0.25 | ) | 0.00 | 0.00 | (0.25 | ) | ||||||||||||||||||||||||||
06/30/2016 | 9.95 | 0.32 | 0.00 | 0.32 | (0.32 | ) | (0.02 | ) | (0.01 | ) | (0.35 | ) | ||||||||||||||||||||||||
12/31/2014 - 06/30/2015 | 10.00 | 0.10 | (0.10 | ) | 0.00 | (0.05 | ) | 0.00 | 0.00 | (0.05 | ) | |||||||||||||||||||||||||
Administrative Class | ||||||||||||||||||||||||||||||||||||
07/01/2017 - 12/31/2017+ | 10.55 | 0.29 | 0.34 | 0.63 | (0.14 | ) | 0.00 | 0.00 | (0.14 | ) | ||||||||||||||||||||||||||
06/30/2017 | 9.92 | 0.28 | 0.57 | 0.85 | (0.22 | ) | 0.00 | 0.00 | (0.22 | ) | ||||||||||||||||||||||||||
06/30/2016 | 9.94 | 0.29 | 0.01 | 0.30 | (0.29 | ) | (0.02 | ) | (0.01 | ) | (0.32 | ) | ||||||||||||||||||||||||
12/31/2014 - 06/30/2015 | 10.00 | 0.09 | (0.11 | ) | (0.02 | ) | (0.04 | ) | 0.00 | 0.00 | (0.04 | ) | ||||||||||||||||||||||||
Class A | ||||||||||||||||||||||||||||||||||||
07/01/2017 - 12/31/2017+ | 10.52 | 0.14 | 0.48 | 0.62 | (0.14 | ) | 0.00 | 0.00 | (0.14 | ) | ||||||||||||||||||||||||||
06/30/2017 | 9.91 | 0.31 | 0.51 | 0.82 | (0.21 | ) | 0.00 | 0.00 | (0.21 | ) | ||||||||||||||||||||||||||
06/30/2016 | 9.94 | 0.28 | (0.01 | ) | 0.27 | (0.27 | ) | (0.02 | ) | (0.01 | ) | (0.30 | ) | |||||||||||||||||||||||
12/31/2014 - 06/30/2015 | 10.00 | 0.13 | (0.15 | ) | (0.02 | ) | (0.04 | ) | 0.00 | 0.00 | (0.04 | ) |
^ | A zero balance may reflect actual amounts rounding to less than $0.01 or 0.01%. |
+ | Unaudited |
* | Annualized |
(a) | Per share amounts based on average number of shares outstanding during the year or period. |
(b) | The tax characterization of distributions is determined in accordance with Federal income tax regulations. The actual tax characterization of distributions paid is determined at the end of the fiscal year. See Note 2, Distributions to Shareholders, in the Notes to Financial Statements for more information. |
(c) | Ratios shown do not include expenses of the investment companies in which a Fund may invest. See Note 8, Fees and Expenses, in the Notes to Financial Statements for more information regarding the expenses and any applicable fee waivers associated with these investments. |
32 | PIMCO EQUITY SERIES | See Accompanying Notes |
Table of Contents
Ratios/Supplemental Data | ||||||||||||||||||||||||||||||||||
Ratios to Average Net Assets(c) | ||||||||||||||||||||||||||||||||||
Net Asset or Period | Total Return | Net Assets Period (000s) | Expenses | Expenses | Expenses | Expenses and Waivers | Net | Portfolio Turnover | ||||||||||||||||||||||||||
$ | 11.88 | 9.69 | % | $ | 48,945 | 0.06 | %* | 0.06 | %* | 0.06 | %* | 0.06 | %* | 2.54 | %* | 3 | % | |||||||||||||||||
11.05 | 14.40 | 43,554 | 0.06 | 0.07 | 0.06 | 0.07 | 3.26 | 10 | ||||||||||||||||||||||||||
9.82 | (0.40 | ) | 3,934 | 0.05 | 0.05 | 0.05 | 0.05 | 2.86 | 38 | |||||||||||||||||||||||||
10.11 | 1.59 | 3,046 | 0.05 | * | 0.58 | * | 0.05 | * | 0.58 | * | 2.39 | * | 6 | |||||||||||||||||||||
11.85 | 9.46 | 10,326 | 0.31 | * | 0.31 | * | 0.31 | * | 0.31 | * | 7.07 | * | 3 | |||||||||||||||||||||
11.04 | 14.05 | 21 | 0.31 | 0.32 | 0.31 | 0.32 | 2.26 | 10 | ||||||||||||||||||||||||||
9.82 | (0.60 | ) | 13 | 0.30 | 0.30 | 0.30 | 0.30 | 2.53 | 38 | |||||||||||||||||||||||||
10.10 | 1.39 | 14 | 0.30 | * | 0.83 | * | 0.30 | * | 0.83 | * | 2.33 | * | 6 | |||||||||||||||||||||
11.83 | 9.48 | 3,706 | 0.56 | * | 0.56 | * | 0.56 | * | 0.56 | * | 2.03 | * | 3 | |||||||||||||||||||||
11.00 | 13.74 | 3,440 | 0.56 | 0.57 | 0.56 | 0.57 | 2.79 | 10 | ||||||||||||||||||||||||||
9.80 | (0.89 | ) | 110 | 0.55 | 0.55 | 0.55 | 0.55 | 2.47 | 38 | |||||||||||||||||||||||||
10.10 | 1.31 | 15 | 0.55 | * | 1.08 | * | 0.55 | * | 1.08 | * | 2.05 | * | 6 | |||||||||||||||||||||
$ | 11.76 | 9.54 | % | $ | 8,319 | 0.06 | %* | 0.07 | %* | 0.06 | %* | 0.07 | %* | 2.59 | %* | 3 | % | |||||||||||||||||
11.02 | 14.35 | 6,555 | 0.06 | 0.07 | 0.06 | 0.07 | 2.56 | 14 | ||||||||||||||||||||||||||
9.80 | (0.47 | ) | 3,388 | 0.05 | 0.05 | 0.05 | 0.05 | 2.83 | 38 | |||||||||||||||||||||||||
10.11 | 1.58 | 3,048 | 0.05 | * | 0.58 | * | 0.05 | * | 0.58 | * | 2.39 | * | 5 | |||||||||||||||||||||
11.77 | 9.41 | 40 | 0.31 | * | 0.32 | * | 0.31 | * | 0.32 | * | 2.36 | * | 3 | |||||||||||||||||||||
11.03 | 14.11 | 16 | 0.31 | 0.32 | 0.31 | 0.32 | 2.11 | 14 | ||||||||||||||||||||||||||
9.80 | (0.77 | ) | 11 | 0.30 | 0.30 | 0.30 | 0.30 | 2.54 | 38 | |||||||||||||||||||||||||
10.11 | 1.47 | 11 | 0.30 | * | 0.83 | * | 0.30 | * | 0.83 | * | 2.18 | * | 5 | |||||||||||||||||||||
11.72 | 9.32 | 1,897 | 0.56 | * | 0.57 | * | 0.56 | * | 0.57 | * | 1.99 | * | 3 | |||||||||||||||||||||
10.98 | 13.62 | 1,799 | 0.56 | 0.57 | 0.56 | 0.57 | 2.85 | 14 | ||||||||||||||||||||||||||
9.79 | (0.94 | ) | 60 | 0.55 | 0.55 | 0.55 | 0.55 | 2.29 | 38 | |||||||||||||||||||||||||
10.09 | 1.28 | 66 | 0.55 | * | 1.08 | * | 0.55 | * | 1.08 | * | 2.53 | * | 5 | |||||||||||||||||||||
$ | 11.04 | 6.25 | % | $ | 6,509 | 0.04 | %* | 0.04 | %* | 0.04 | %* | 0.04 | %* | 2.97 | %* | 18 | % | |||||||||||||||||
10.54 | 8.85 | 6,027 | 0.04 | 0.05 | 0.04 | 0.05 | 2.95 | 30 | ||||||||||||||||||||||||||
9.92 | 3.33 | 3,317 | 0.03 | 0.03 | 0.03 | 0.03 | 3.34 | 41 | ||||||||||||||||||||||||||
9.95 | (0.02 | ) | 3,035 | 0.03 | * | 0.56 | * | 0.03 | * | 0.56 | * | 2.03 | * | 4 | ||||||||||||||||||||
11.04 | 6.02 | 13,349 | 0.29 | * | 0.29 | * | 0.29 | * | 0.29 | * | 5.17 | * | 18 | |||||||||||||||||||||
10.55 | 8.71 | 74 | 0.29 | 0.30 | 0.29 | 0.30 | 2.68 | 30 | ||||||||||||||||||||||||||
9.92 | 3.08 | 50 | 0.28 | 0.28 | 0.28 | 0.28 | 2.95 | 41 | ||||||||||||||||||||||||||
9.94 | (0.21 | ) | 14 | 0.28 | * | 0.81 | * | 0.28 | * | 0.81 | * | 1.84 | * | 4 | ||||||||||||||||||||
11.00 | 5.87 | 2,924 | 0.54 | * | 0.54 | * | 0.54 | * | 0.54 | * | 2.65 | * | 18 | |||||||||||||||||||||
10.52 | 8.39 | 1,661 | 0.54 | 0.55 | 0.54 | 0.55 | 2.91 | 30 | ||||||||||||||||||||||||||
9.91 | 2.75 | 70 | 0.53 | 0.53 | 0.53 | 0.53 | 2.84 | 41 | ||||||||||||||||||||||||||
9.94 | (0.22 | ) | 73 | 0.53 | * | 1.06 | * | 0.53 | * | 1.06 | * | 2.61 | * | 4 |
SEMIANNUAL REPORT | DECEMBER 31, 2017 | 33 |
Table of Contents
Statements of Assets and Liabilities
(Amounts in thousands†, except per share amounts) | PIMCO Fund | PIMCO Fund | PIMCO Fund | PIMCO Fund | ||||||||||||
Assets: | ||||||||||||||||
Investments, at value | ||||||||||||||||
Investments in securities | $ | 10,255 | $ | 15,120 | $ | 19,508 | $ | 22,736 | ||||||||
Investments in Affiliates | 13,176 | 13,265 | 12,761 | 10,862 | ||||||||||||
Financial Derivative Instruments | ||||||||||||||||
Exchange-traded or centrally cleared | 12 | 10 | 0 | 0 | ||||||||||||
Over the counter | 23 | 29 | 32 | 33 | ||||||||||||
Cash | 60 | 479 | 231 | 122 | ||||||||||||
Receivable for investments sold | 852 | 772 | 603 | 532 | ||||||||||||
Receivable for investments in Affiliates sold | 0 | 59 | 0 | 0 | ||||||||||||
Receivable for Fund shares sold | 17 | 10 | 21 | 27 | ||||||||||||
Dividends receivable from Affiliates | 30 | 32 | 31 | 29 | ||||||||||||
Reimbursement receivable from PIMCO | 0 | 0 | 0 | 0 | ||||||||||||
Total Assets | 24,425 | 29,776 | 33,187 | 34,341 | ||||||||||||
Liabilities: | ||||||||||||||||
Financial Derivative Instruments | ||||||||||||||||
Exchange-traded or centrally cleared | $ | 3 | $ | 2 | $ | 0 | $ | 0 | ||||||||
Over the counter | 3 | 3 | 5 | 6 | ||||||||||||
Payable for investments purchased | 1 | 0 | 0 | 1 | ||||||||||||
Payable for investments in Affiliates purchased | 701 | 517 | 567 | 359 | ||||||||||||
Payable for Fund shares redeemed | 0 | 0 | 0 | 0 | ||||||||||||
Accrued investment advisory fees | 0 | 0 | 1 | 1 | ||||||||||||
Accrued supervisory and administrative fees | 1 | 2 | 1 | 1 | ||||||||||||
Accrued distribution fees | 2 | 3 | 3 | 2 | ||||||||||||
Accrued servicing fees | 1 | 1 | 1 | 1 | ||||||||||||
Other liabilities | 0 | 0 | 0 | 0 | ||||||||||||
Total Liabilities | 712 | 528 | 578 | 371 | ||||||||||||
Net Assets | $ | 23,713 | $ | 29,248 | $ | 32,609 | $ | 33,970 | ||||||||
Net Assets Consist of: | ||||||||||||||||
Paid in capital | $ | 22,679 | $ | 28,199 | $ | 30,456 | $ | 31,431 | ||||||||
Undistributed (overdistributed) net investment income | (100 | ) | (109 | ) | (107 | ) | (151 | ) | ||||||||
Accumulated undistributed net realized gain (loss) | 9 | (43 | ) | 43 | 86 | |||||||||||
Net unrealized appreciation (depreciation) | 1,125 | 1,201 | 2,217 | 2,604 | ||||||||||||
Net Assets | $ | 23,713 | $ | 29,248 | $ | 32,609 | $ | 33,970 | ||||||||
Cost of investments in securities | $ | 9,311 | $ | 14,060 | $ | 17,521 | $ | 20,329 | ||||||||
Cost of investments in Affiliates | $ | 12,997 | $ | 13,134 | $ | 12,557 | $ | 10,692 | ||||||||
Cost or premiums of financial derivative instruments, net | $ | 27 | $ | 24 | $ | 0 | $ | 0 |
† | A zero balance may reflect actual amounts rounding to less than one thousand. |
34 | PIMCO EQUITY SERIES | See Accompanying Notes |
Table of Contents
December 31, 2017 (Unaudited)
PIMCO Fund | PIMCO Fund | PIMCO Fund | PIMCO Fund | PIMCO Fund | ||||||||||||||
$ | 27,579 | $ | 38,206 | $ | 49,258 | $ | 7,978 | $ | 9,379 | |||||||||
9,778 | 10,974 | 12,981 | 2,051 | 13,179 | ||||||||||||||
0 | 0 | 0 | 0 | 10 | ||||||||||||||
37 | 48 | 60 | 9 | 22 | ||||||||||||||
293 | 377 | 106 | 84 | 9 | ||||||||||||||
110 | 788 | 396 | 46 | 140 | ||||||||||||||
500 | 0 | 0 | 0 | 0 | ||||||||||||||
49 | 101 | 190 | 91 | 51 | ||||||||||||||
28 | 30 | 34 | 5 | 30 | ||||||||||||||
0 | 0 | 1 | 0 | 0 | ||||||||||||||
38,374 | 50,524 | 63,026 | 10,264 | 22,820 | ||||||||||||||
$ | 0 | $ | 0 | $ | 0 | $ | 0 | $ | 2 | |||||||||
5 | 6 | 8 | 1 | 2 | ||||||||||||||
0 | 205 | 0 | 0 | 0 | ||||||||||||||
145 | 30 | 34 | 5 | 30 | ||||||||||||||
0 | 4 | 0 | 1 | 0 | ||||||||||||||
1 | 1 | 1 | 0 | 0 | ||||||||||||||
2 | 2 | 2 | 1 | 1 | ||||||||||||||
1 | 1 | 2 | 0 | 2 | ||||||||||||||
1 | 1 | 1 | 0 | 1 | ||||||||||||||
1 | 1 | 1 | 0 | 0 | ||||||||||||||
156 | 251 | 49 | 8 | 38 | ||||||||||||||
$ | 38,218 | $ | 50,273 | $ | 62,977 | $ | 10,256 | $ | 22,782 | |||||||||
$ | 35,238 | $ | 46,242 | $ | 58,048 | $ | 9,173 | $ | 22,122 | |||||||||
(150 | ) | (190 | ) | (278 | ) | (87 | ) | (73 | ) | |||||||||
96 | 136 | 172 | (9 | ) | (14 | ) | ||||||||||||
3,034 | 4,085 | 5,035 | 1,179 | 747 | ||||||||||||||
$ | 38,218 | $ | 50,273 | $ | 62,977 | $ | 10,256 | $ | 22,782 | |||||||||
$ | 24,710 | $ | 34,283 | $ | 44,394 | $ | 6,836 | $ | 8,754 | |||||||||
$ | 9,644 | $ | 10,855 | $ | 12,861 | $ | 2,022 | $ | 13,063 | |||||||||
$ | 0 | $ | 0 | $ | 0 | $ | 0 | $ | 22 |
SEMIANNUAL REPORT | DECEMBER 31, 2017 | 35 |
Table of Contents
Statements of Assets and Liabilities (Cont.)
PIMCO REALPATH® Blend 2020 Fund | PIMCO REALPATH® Blend 2025 Fund | PIMCO REALPATH® Blend 2030 Fund | PIMCO REALPATH® Blend 2035 Fund | |||||||||||||
Net Assets: | ||||||||||||||||
Institutional Class | $ | 9,157 | $ | 7,264 | $ | 13,963 | $ | 17,924 | ||||||||
Administrative Class | 11,471 | 17,124 | 14,834 | 11,948 | ||||||||||||
Class A | 3,085 | 4,860 | 3,812 | 4,098 | ||||||||||||
Shares Issued and Outstanding: | ||||||||||||||||
Institutional Class | 824 | 644 | 1,216 | 1,539 | ||||||||||||
Administrative Class | 1,034 | 1,522 | 1,292 | 1,027 | ||||||||||||
Class A | 278 | 432 | 333 | 351 | ||||||||||||
Net Asset Value Per Share Outstanding: | ||||||||||||||||
Institutional Class | $ | 11.11 | $ | 11.27 | $ | 11.49 | $ | 11.65 | ||||||||
Administrative Class | 11.10 | 11.25 | 11.47 | 11.64 | ||||||||||||
Class A | 11.10 | 11.26 | 11.46 | 11.68 |
36 | PIMCO EQUITY SERIES | See Accompanying Notes |
Table of Contents
December 31, 2017 (Unaudited)
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 | ||||||||||||||
$ | 25,124 | $ | 39,280 | $ | 48,945 | $ | 8,319 | $ | 6,509 | |||||||||
7,879 | 7,395 | 10,326 | 40 | 13,349 | ||||||||||||||
5,215 | 3,598 | 3,706 | 1,897 | 2,924 | ||||||||||||||
2,137 | 3,324 | 4,121 | 707 | 590 | ||||||||||||||
671 | 627 | 871 | 3 | 1,208 | ||||||||||||||
445 | 305 | 314 | 162 | 266 | ||||||||||||||
$ | 11.75 | $ | 11.82 | $ | 11.88 | $ | 11.76 | $ | 11.04 | |||||||||
11.74 | 11.79 | 11.85 | 11.77 | 11.04 | ||||||||||||||
11.72 | 11.79 | 11.83 | 11.72 | 11.00 |
SEMIANNUAL REPORT | DECEMBER 31, 2017 | 37 |
Table of Contents
Six Months Ended December 31, 2017 | ||||||||||||||||
(Amounts in thousands†) | PIMCO REALPATH® Blend 2020 Fund | PIMCO REALPATH® Blend 2025 Fund | PIMCO REALPATH® Blend 2030 Fund | PIMCO REALPATH® Blend 2035 Fund | ||||||||||||
Investment Income: | ||||||||||||||||
Dividends | $ | 96 | $ | 129 | $ | 181 | $ | 223 | ||||||||
Dividends from Investments in Affiliates | 127 | 109 | 132 | 132 | ||||||||||||
Total Income | 223 | 238 | 313 | 355 | ||||||||||||
Expenses: | ||||||||||||||||
Investment advisory fees | 1 | 1 | 2 | 3 | ||||||||||||
Supervisory and administrative fees | 5 | 7 | 6 | 7 | ||||||||||||
Distribution and/or servicing fees - Administrative Class | 2 | 3 | 3 | 2 | ||||||||||||
Servicing fees - Class A | 3 | 5 | 4 | 4 | ||||||||||||
Trustee fees | 0 | 0 | 0 | 1 | ||||||||||||
Miscellaneous expense | 0 | 1 | 1 | 1 | ||||||||||||
Total Expenses | 11 | 17 | 16 | 18 | ||||||||||||
Waiver and/or Reimbursement by PIMCO | 0 | 0 | 0 | (1 | ) | |||||||||||
Net Expenses | 11 | 17 | 16 | 17 | ||||||||||||
Net Investment Income (Loss) | 212 | 221 | 297 | 338 | ||||||||||||
Net Realized Gain (Loss): | ||||||||||||||||
Investments in securities | 30 | 27 | 19 | 35 | ||||||||||||
Investments in Affiliates | (7 | ) | (3 | ) | (1 | ) | (1 | ) | ||||||||
Net capital gain distributions received from Affiliate investments | 19 | 27 | 24 | 18 | ||||||||||||
Exchange-traded or centrally cleared financial derivative instruments | (8 | ) | (28 | ) | (15 | ) | (6 | ) | ||||||||
Over the counter financial derivative instruments | 24 | 21 | 41 | 56 | ||||||||||||
Net Realized Gain (Loss) | 58 | 44 | 68 | 102 | ||||||||||||
Net Change in Unrealized Appreciation (Depreciation): | ||||||||||||||||
Investments in securities | 565 | 690 | 1,131 | 1,496 | ||||||||||||
Investments in Affiliates | 75 | 61 | 75 | 61 | ||||||||||||
Exchange-traded or centrally cleared financial derivative instruments | (12 | ) | (10 | ) | 3 | 3 | ||||||||||
Over the counter financial derivative instruments | 8 | 15 | 6 | (1 | ) | |||||||||||
Net Change in Unrealized Appreciation (Depreciation) | 636 | 756 | 1,215 | 1,559 | ||||||||||||
Net Increase (Decrease) in Net Assets Resulting from Operations | $ | 906 | $ | 1,021 | $ | 1,580 | $ | 1,999 |
† | A zero balance may reflect actual amounts rounding to less than one thousand. |
38 | PIMCO EQUITY SERIES | See Accompanying Notes |
Table of Contents
(Unaudited)
PIMCO Blend 2040 Fund | PIMCO Blend 2045 Fund | PIMCO Blend 2050 Fund | PIMCO Blend 2055 Fund | PIMCO Blend Income Fund | ||||||||||||||
$ | 301 | $ | 414 | $ | 517 | $ | 89 | $ | 74 | |||||||||
150 | 164 | 182 | 33 | 102 | ||||||||||||||
451 | 578 | 699 | 122 | 176 | ||||||||||||||
5 | 6 | 8 | 2 | 1 | ||||||||||||||
10 | 8 | 10 | 3 | 3 | ||||||||||||||
1 | 2 | 2 | 0 | 3 | ||||||||||||||
6 | 4 | 4 | 2 | 2 | ||||||||||||||
1 | 1 | 1 | 0 | 0 | ||||||||||||||
1 | 1 | 1 | 1 | 0 | ||||||||||||||
24 | 22 | 26 | 8 | 9 | ||||||||||||||
(1 | ) | (1 | ) | (1 | ) | 0 | 0 | |||||||||||
23 | 21 | 25 | 8 | 9 | ||||||||||||||
428 | 557 | 674 | 114 | 167 | ||||||||||||||
104 | 48 | 36 | 4 | 13 | ||||||||||||||
(1 | ) | (1 | ) | (1 | ) | 0 | (6 | ) | ||||||||||
16 | 14 | 15 | 2 | 13 | ||||||||||||||
(2 | ) | (1 | ) | 0 | (3 | ) | (20 | ) | ||||||||||
79 | 106 | 134 | 22 | 12 | ||||||||||||||
196 | 166 | 184 | 25 | 12 | ||||||||||||||
2,123 | 3,093 | 3,840 | 694 | 379 | ||||||||||||||
66 | 75 | 79 | 15 | 53 | ||||||||||||||
2 | 2 | 2 | 2 | (9 | ) | |||||||||||||
(10 | ) | (14 | ) | (15 | ) | (4 | ) | 13 | ||||||||||
2,181 | 3,156 | 3,906 | 707 | 436 | ||||||||||||||
$ | 2,805 | $ | 3,879 | $ | 4,764 | $ | 846 | $ | 615 |
SEMIANNUAL REPORT | DECEMBER 31, 2017 | 39 |
Table of Contents
Statements of Changes in Net Assets
PIMCO 2020 Fund | PIMCO REALPATH® Blend 2025 Fund | PIMCO REALPATH® Blend 2030 Fund | PIMCO REALPATH® Blend 2035 Fund | |||||||||||||||||||||||||||||
(Amounts in thousands†) | Six Months Ended December 31, 2017 (Unaudited) | Year Ended June 30, 2017 | Six Months Ended December 31, 2017 (Unaudited) | Year Ended June 30, 2017 | Six Months Ended December 31, 2017 (Unaudited) | Year Ended June 30, 2017 | Six Months Ended December 31, 2017 (Unaudited) | Year Ended June 30, 2017 | ||||||||||||||||||||||||
Increase (Decrease) in Net Assets from: | ||||||||||||||||||||||||||||||||
Operations: | ||||||||||||||||||||||||||||||||
Net investment income (loss) | $ | 212 | $ | 191 | $ | 221 | $ | 169 | $ | 297 | $ | 277 | $ | 338 | $ | 277 | ||||||||||||||||
Net realized gain (loss) | 58 | (36 | ) | 44 | (39 | ) | 68 | 32 | 102 | (5 | ) | |||||||||||||||||||||
Net change in unrealized appreciation (depreciation) | 636 | 430 | 756 | 439 | 1,215 | 742 | 1,559 | 874 | ||||||||||||||||||||||||
Net Increase (Decrease) in Net Assets Resulting from Operations | 906 | 585 | 1,021 | 569 | 1,580 | 1,051 | 1,999 | 1,146 | ||||||||||||||||||||||||
Distributions to Shareholders: | ||||||||||||||||||||||||||||||||
From net investment income | ||||||||||||||||||||||||||||||||
Institutional Class | (154 | ) | (133 | ) | (105 | ) | (100 | ) | (242 | ) | (185 | ) | (349 | ) | (154 | ) | ||||||||||||||||
Administrative Class | (147 | ) | 0 | (195 | ) | 0 | (195 | ) | (1 | ) | (186 | ) | 0 | |||||||||||||||||||
Class A | (44 | ) | (14 | ) | (60 | ) | (19 | ) | (57 | ) | (4 | ) | (70 | ) | (5 | ) | ||||||||||||||||
From net realized capital gains | ||||||||||||||||||||||||||||||||
Institutional Class | 0 | 0 | 0 | 0 | (25 | ) | 0 | 0 | 0 | |||||||||||||||||||||||
Administrative Class | 0 | 0 | 0 | 0 | (26 | ) | 0 | 0 | 0 | |||||||||||||||||||||||
Class A | 0 | 0 | 0 | 0 | (7 | ) | 0 | 0 | 0 | |||||||||||||||||||||||
Total Distributions(a) | (345 | ) | (147 | ) | (360 | ) | (119 | ) | (552 | ) | (190 | ) | (605 | ) | (159 | ) | ||||||||||||||||
Fund Share Transactions: | ||||||||||||||||||||||||||||||||
Net increase (decrease) resulting from Fund share transactions** | 12,236 | 6,306 | 18,529 | 6,170 | 15,446 | 8,829 | 11,970 | 13,641 | ||||||||||||||||||||||||
Total Increase (Decrease) in Net Assets | 12,797 | 6,744 | 19,190 | 6,620 | 16,474 | 9,690 | 13,364 | 14,628 | ||||||||||||||||||||||||
Net Assets: | ||||||||||||||||||||||||||||||||
Beginning of period | 10,916 | 4,172 | 10,058 | 3,438 | 16,135 | 6,445 | 20,606 | 5,978 | ||||||||||||||||||||||||
End of period* | $ | 23,713 | $ | 10,916 | $ | 29,248 | $ | 10,058 | $ | 32,609 | $ | 16,135 | $ | 33,970 | $ | 20,606 | ||||||||||||||||
* Including undistributed (overdistributed) net investment income of: | $ | (100 | ) | $ | 33 | $ | (109 | ) | $ | 30 | $ | (107 | ) | $ | 90 | $ | (151 | ) | $ | 116 |
† | A zero balance may reflect actual amounts rounding to less than one thousand. |
** | See Note 12, Shares of Beneficial Interest, in the Notes to Financial Statements. |
(a) | The tax characterization of distributions is determined in accordance with Federal income tax regulations. The actual tax characterization of distributions paid is determined at the end of the fiscal year. See Note 2, Distributions to Shareholders, in the Notes to Financial Statements for more information. |
40 | 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 | ||||||||||||||||||||||||||||||||||
Six Months Ended December 31, 2017 (Unaudited) | Year Ended June 30, 2017 | Six Months Ended December 31, 2017 (Unaudited) | Year Ended June 30, 2017 | Six Months Ended December 31, 2017 (Unaudited) | Year Ended June 30, 2017 | Six Months Ended December 31, 2017 (Unaudited) | Year Ended June 30, 2017 | Six Months Ended December 31, 2017 (Unaudited) | Year Ended June 30, 2017 | |||||||||||||||||||||||||||||
$ | 428 | $ | 281 | $ | 557 | $ | 323 | $ | 674 | $ | 377 | $ | 114 | $ | 122 | $ | 167 | $ | 144 | |||||||||||||||||||
196 | (24 | ) | 166 | (27 | ) | 184 | (20 | ) | 25 | (15 | ) | 12 | (26 | ) | ||||||||||||||||||||||||
| 2,181 | 863 | 3,156 | 964 | 3,906 | 1,135 | 707 | 508 | 436 | 310 | ||||||||||||||||||||||||||||
| 2,805 | 1,120 | 3,879 | 1,260 | 4,764 | 1,492 | 846 | 615 | 615 | 428 | ||||||||||||||||||||||||||||
(505 | ) | (106 | ) | (769 | ) | (94 | ) | (960 | ) | (108 | ) | (209 | ) | (66 | ) | (90 | ) | (102 | ) | |||||||||||||||||||
(130 | ) | (1 | ) | (123 | ) | (1 | ) | (174 | ) | 0 | (1 | ) | (1 | ) | (133 | ) | (1 | ) | ||||||||||||||||||||
(95 | ) | (4 | ) | (63 | ) | 0 | (65 | ) | (1 | ) | (45 | ) | (2 | ) | (32 | ) | (11 | ) | ||||||||||||||||||||
(52 | ) | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||||||||||
(17 | ) | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||||||||||
(11 | ) | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||||||||||
(810 | ) | (111 | ) | (955 | ) | (95 | ) | (1,199 | ) | (109 | ) | (255 | ) | (69 | ) | (255 | ) | (114 | ) | |||||||||||||||||||
| 6,505 | 25,134 | 7,907 | 34,813 | 12,397 | 41,575 | 1,295 | 4,365 | 14,660 | 4,011 | ||||||||||||||||||||||||||||
| 8,500 | 26,143 | 10,831 | 35,978 | 15,962 | 42,958 | 1,886 | 4,911 | 15,020 | 4,325 | ||||||||||||||||||||||||||||
29,718 | 3,575 | 39,442 | 3,464 | 47,015 | 4,057 | 8,370 | 3,459 | 7,762 | 3,437 | |||||||||||||||||||||||||||||
$ | 38,218 | $ | 29,718 | $ | 50,273 | $ | 39,442 | $ | 62,977 | $ | 47,015 | $ | 10,256 | $ | 8,370 | $ | 22,782 | $ | 7,762 | |||||||||||||||||||
$ | (150 | ) | $ | 152 | $ | (190 | ) | $ | 208 | $ | (278 | ) | $ | 247 | $ | (87 | ) | $ | 54 | $ | (73 | ) | $ | 15 |
SEMIANNUAL REPORT | DECEMBER 31, 2017 | 41 |
Table of Contents
Schedule of Investments PIMCO REALPATH® Blend 2020 Fund
SHARES | MARKET (000S) | |||||||||||
INVESTMENTS IN SECURITIES 43.2% | ||||||||||||
MUTUAL FUNDS 43.2% | ||||||||||||
Vanguard 500 Index Fund ‘Admiral’ | 22,277 | $ | 5,499 | |||||||||
Vanguard Developed Markets Index Fund ‘Admiral’ | 205,135 | 2,956 | ||||||||||
Vanguard Emerging Markets Stock Index Fund ‘Admiral’ | 30,525 | 1,165 | ||||||||||
Vanguard Small-Cap Index Fund ‘Admiral’ | 8,969 | 635 | ||||||||||
|
| |||||||||||
Total Mutual Funds (Cost $9,311) | 10,255 | |||||||||||
|
| |||||||||||
Total Investments in Securities (Cost $9,311) | 10,255 | |||||||||||
|
| |||||||||||
INVESTMENTS IN AFFILIATES 55.6% | ||||||||||||
MUTUAL FUNDS (a) 52% | ||||||||||||
PIMCO Emerging Local Bond Fund | 71,539 | 541 | ||||||||||
PIMCO Foreign Bond Fund | 111,650 | 1,191 | ||||||||||
PIMCO High Yield Fund | 121,963 | 1,093 | ||||||||||
PIMCO Income Fund | 233,820 | 2,902 | ||||||||||
PIMCO Long Duration Total Return Fund | 63,205 | 696 | ||||||||||
PIMCO Long-Term Credit Fund | 56,396 | 696 |
SHARES | MARKET (000S) | |||||||||||
PIMCO Real Return Asset Fund | 170,577 | $ | 1,468 | |||||||||
PIMCO Real Return Fund | 174,427 | 1,929 | ||||||||||
PIMCO Total Return Fund | 175,638 | 1,804 | ||||||||||
|
| |||||||||||
Total Mutual Funds (Cost $12,141) | 12,320 | |||||||||||
|
| |||||||||||
SHORT-TERM INSTRUMENTS 3.6% | ||||||||||||
CENTRAL FUNDS USED FOR CASH MANAGEMENT PURPOSES 3.6% | ||||||||||||
PIMCO Short-Term | 86,546 | 856 | ||||||||||
|
| |||||||||||
Total Short-Term Instruments (Cost $856) | 856 | |||||||||||
|
| |||||||||||
Total Investments in Affiliates (Cost $12,997) | 13,176 | |||||||||||
Total Investments 98.8% (Cost $22,308) | $ | 23,431 | ||||||||||
Financial Derivative (Cost or Premiums, net $27) | 29 | |||||||||||
Other Assets and Liabilities, net 1.1% | 253 | |||||||||||
|
| |||||||||||
Net Assets 100.0% | $ | 23,713 | ||||||||||
|
|
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 | Notional Amount | Cost | Market Value | ||||||||||||||||||
Put - CBOE S&P 500 | 2,000.000 | 06/15/2018 | 5 | 500 | $ | 20 | $ | 3 | ||||||||||||||||
Put - CBOE S&P 500 | 1,950.000 | 09/21/2018 | 2 | 200 | 6 | 3 | ||||||||||||||||||
Put - CBOE S&P 500 | 2,075.000 | 09/21/2018 | 3 | 300 | 13 | 6 | ||||||||||||||||||
|
|
|
| |||||||||||||||||||||
$ | 39 | $ | 12 | |||||||||||||||||||||
|
|
|
| |||||||||||||||||||||
Total Purchased Options |
| $ | 39 | $ | 12 | |||||||||||||||||||
|
|
|
|
WRITTEN OPTIONS:
OPTIONS ON INDICES
Description | Strike Value | Expiration Date | # of Contracts | Notional Amount | Premiums (Received) | Market Value | ||||||||||||||||||
Put - CBOE S&P 500 | 1,675.000 | 06/15/2018 | 5 | 500 | $ | (7 | ) | $ | (1 | ) | ||||||||||||||
Put - CBOE S&P 500 | 1,725.000 | 09/21/2018 | 3 | 300 | (5 | ) | (2 | ) | ||||||||||||||||
|
|
|
| |||||||||||||||||||||
$ | (12 | ) | $ | (3 | ) | |||||||||||||||||||
|
|
|
| |||||||||||||||||||||
Total Written Options |
| $ | (12 | ) | $ | (3 | ) | |||||||||||||||||
|
|
|
|
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 December 31, 2017:
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 | $ | 12 | $ | 0 | $ | 0 | $ | 12 | $ (3) | $ | 0 | $ | 0 | $ (3) | ||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
42 | PIMCO EQUITY SERIES | See Accompanying Notes |
Table of Contents
December 31, 2017 (Unaudited)
(c) FINANCIAL DERIVATIVE INSTRUMENTS: OVER THE COUNTER
SWAP AGREEMENTS:
TOTAL RETURN SWAPS ON COMMODITY AND EQUITY INDICES
Counterparty | Pay/Receive(1) | Underlying | # of Units | Financing Rate | Payment | Maturity | Notional | Premiums Paid/(Received) | Unrealized Appreciation/ (Depreciation) | Swap Agreements, at Value | ||||||||||||||||||||||||
Asset | Liability | |||||||||||||||||||||||||||||||||
BPS | Receive | DWRTFT Index | 21 | 1-Month USD-LIBOR plus a specified spread | Monthly | 11/07/2018 | $ | 207 | $ | 0 | $ | (2 | ) | $ | 0 | $ | (2 | ) | ||||||||||||||||
CBK | Receive | BCOMTR Index | 2,504 | 3-Month U.S. Treasury Bill rate plus a specified spread | Monthly | 02/15/2018 | 429 | 0 | 21 | 21 | 0 | |||||||||||||||||||||||
GST | Receive | DWRTFT Index | 34 | 1-Month USD-LIBOR plus a specified spread | Monthly | 04/11/2018 | 331 | 0 | (1 | ) | 0 | (1 | ) | |||||||||||||||||||||
JPM | Receive | BCOMTR Index | 200 | 3-Month U.S. Treasury Bill rate plus a specified spread | Monthly | 02/15/2018 | 35 | 0 | 2 | 2 | 0 | |||||||||||||||||||||||
MYI | Receive | DWRTFT Index | 11 | 1-Month USD-LIBOR plus a specified spread | Monthly | 09/12/2018 | 107 | 0 | 0 | 0 | 0 | |||||||||||||||||||||||
|
|
|
|
|
|
|
| |||||||||||||||||||||||||||
$ | 0 | $ | 20 | $ | 23 | $ | (3 | ) | ||||||||||||||||||||||||||
|
|
|
|
|
|
|
| |||||||||||||||||||||||||||
Total Swap Agreements | $ | 0 | $ | 20 | $ | 23 | $ | (3 | ) | |||||||||||||||||||||||||
|
|
|
|
|
|
|
|
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 pledged/(received) as of December 31, 2017:
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 Pledged/ (Received) | Net Exposure(2) | |||||||||||||||||||||||||||||||||||||
BPS | $ | 0 | $ | 0 | $ | 0 | $ | 0 | $ | 0 | $ | 0 | $ | (2 | ) | $ | (2 | ) | $ | (2 | ) | $ | 0 | $ | (2 | ) | ||||||||||||||||||||||
CBK | 0 | 0 | 21 | 21 | 0 | 0 | 0 | 0 | 21 | 0 | 21 | |||||||||||||||||||||||||||||||||||||
GST | 0 | 0 | 0 | 0 | 0 | 0 | (1 | ) | (1 | ) | (1 | ) | 0 | (1 | ) | |||||||||||||||||||||||||||||||||
JPM | 0 | 0 | 2 | 2 | 0 | 0 | 0 | 0 | 2 | 0 | 2 | |||||||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||||||||||||||||||
Total Over the Counter | $ | 0 | $ | 0 | $ | 23 | $ | 23 | $ | 0 | $ | 0 | $ | (3 | ) | $ | (3 | ) | ||||||||||||||||||||||||||||||
|
|
|
|
|
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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. |
(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 7, Master Netting Arrangements, 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 December 31, 2017:
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 | $ | 23 | $ | 0 | $ | 0 | $ | 0 | $ | 0 | $ | 23 | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
$ | 23 | $ | 0 | $ | 12 | $ | 0 | $ | 0 | $ | 35 | |||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Financial Derivative Instruments - Liabilities | ||||||||||||||||||||||||
Exchange-traded or centrally cleared | ||||||||||||||||||||||||
Written Options | $ | 0 | $ | 0 | $ | 3 | $ | 0 | $ | 0 | $ | 3 | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Over the counter | ||||||||||||||||||||||||
Swap Agreements | $ | 0 | $ | 0 | $ | 3 | $ | 0 | $ | 0 | $ | 3 | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
$ | 0 | $ | 0 | $ | 6 | $ | 0 | $ | 0 | $ | 6 | |||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
See Accompanying Notes | SEMIANNUAL REPORT | DECEMBER 31, 2017 | 43 |
Table of Contents
Schedule of Investments PIMCO REALPATH® Blend 2020 Fund (Cont.)
December 31, 2017 (Unaudited)
The effect of Financial Derivative Instruments on the Statements of Operations for the period ended December 31, 2017:
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 | $ | (7 | ) | $ | 0 | $ | 0 | $ | (7 | ) | ||||||||||
Written Options | 0 | 0 | 1 | 0 | 0 | 1 | ||||||||||||||||||
Futures | 0 | 0 | (3 | ) | 0 | 1 | (2 | ) | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
$ | 0 | $ | 0 | $ | (9 | ) | $ | 0 | $ | 1 | $ | (8 | ) | |||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Over the counter | ||||||||||||||||||||||||
Swap Agreements | $ | 6 | $ | 0 | $ | 18 | $ | 0 | $ | 0 | $ | 24 | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
$ | 6 | $ | 0 | $ | 9 | $ | 0 | $ | 1 | $ | 16 | |||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Net Change in Unrealized Appreciation (Depreciation) on Financial Derivative Instruments |
| |||||||||||||||||||||||
Exchange-traded or centrally cleared | ||||||||||||||||||||||||
Purchased Options | $ | 0 | $ | 0 | $ | (19 | ) | $ | 0 | $ | 0 | $ | (19 | ) | ||||||||||
Written Options | 0 | 0 | 7 | 0 | 0 | 7 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
$ | 0 | $ | 0 | $ | (12 | ) | $ | 0 | $ | 0 | $ | (12 | ) | |||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Over the counter | ||||||||||||||||||||||||
Swap Agreements | $ | 18 | $ | 0 | $ | (10 | ) | $ | 0 | $ | 0 | $ | 8 | |||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
$ | 18 | $ | 0 | $ | (22 | ) | $ | 0 | $ | 0 | $ | (4 | ) | |||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
FAIR VALUE MEASUREMENTS
The following is a summary of the fair valuations according to the inputs used as of December 31, 2017 in valuing the Fund’s assets and liabilities:
Category and Subcategory | Level 1 | Level 2 | Level 3 | Fair Value at 12/31/2017 | ||||||||||||
Investments in Securities, at Value | ||||||||||||||||
Mutual Funds | $ | 10,255 | $ | 0 | $ | 0 | $ | 10,255 | ||||||||
|
|
|
|
|
|
|
| |||||||||
$ | 10,255 | $ | 0 | $ | 0 | $ | 10,255 | |||||||||
|
|
|
|
|
|
|
| |||||||||
Investments in Affiliates, at Value | ||||||||||||||||
Mutual Funds | 12,320 | 0 | 0 | 12,320 | ||||||||||||
Short-Term Instruments | ||||||||||||||||
Central Funds Used for Cash Management Purposes | 856 | 0 | 0 | 856 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
$ | 13,176 | $ | 0 | $ | 0 | $ | 13,176 | |||||||||
|
|
|
|
|
|
|
| |||||||||
Total Investments | $ | 23,431 | $ | 0 | $ | 0 | $ | 23,431 | ||||||||
|
|
|
|
|
|
|
|
Category and Subcategory | Level 1 | Level 2 | Level 3 | Fair Value at 12/31/2017 | ||||||||||||
Financial Derivative Instruments - Assets |
| |||||||||||||||
Exchange-traded or centrally cleared | $ | 0 | $ | 12 | $ | 0 | $ | 12 | ||||||||
Over the counter | 0 | 23 | 0 | 23 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
$ | 0 | $ | 35 | $ | 0 | $ | 35 | |||||||||
|
|
|
|
|
|
|
| |||||||||
Financial Derivative Instruments - Liabilities |
| |||||||||||||||
Exchange-traded or centrally cleared | 0 | (3 | ) | 0 | (3 | ) | ||||||||||
Over the counter | 0 | (3 | ) | 0 | (3 | ) | ||||||||||
|
|
|
|
|
|
|
| |||||||||
$ | 0 | $ | (6 | ) | $ | 0 | $ | (6 | ) | |||||||
|
|
|
|
|
|
|
| |||||||||
Total Financial Derivative Instruments | $ | 0 | $ | 29 | $ | 0 | $ | 29 | ||||||||
|
|
|
|
|
|
|
| |||||||||
Totals | $ | 23,431 | $ | 29 | $ | 0 | $ | 23,460 | ||||||||
|
|
|
|
|
|
|
|
There were no significant transfers among Levels 1, 2, or 3 during the period ended December 31, 2017.
44 | PIMCO EQUITY SERIES | See Accompanying Notes |
Table of Contents
Schedule of Investments PIMCO REALPATH® Blend 2025 Fund
December 31, 2017 (Unaudited)
SHARES | MARKET (000S) | |||||||||||
INVESTMENTS IN SECURITIES 51.7% | ||||||||||||
MUTUAL FUNDS 51.7% | ||||||||||||
Vanguard 500 Index Fund ‘Admiral’ | 32,732 | $ | 8,079 | |||||||||
Vanguard Developed Markets Index Fund ‘Admiral’ | 302,291 | 4,356 | ||||||||||
Vanguard Emerging Markets Stock Index Fund ‘Admiral’ | 45,687 | 1,744 | ||||||||||
Vanguard Small-Cap Index Fund ‘Admiral’ | 13,289 | 941 | ||||||||||
|
| |||||||||||
Total Mutual Funds (Cost $14,060) | 15,120 | |||||||||||
|
| |||||||||||
Total Investments in Securities (Cost $14,060) | 15,120 | |||||||||||
|
| |||||||||||
INVESTMENTS IN AFFILIATES 45.4% | ||||||||||||
MUTUAL FUNDS (a) 43.4% | ||||||||||||
PIMCO Emerging Local Bond Fund | 79,439 | 601 | ||||||||||
PIMCO Foreign Bond Fund | 71,523 | 763 | ||||||||||
PIMCO High Yield Fund | 131,644 | 1,179 | ||||||||||
PIMCO Income Fund | 225,593 | 2,800 | ||||||||||
PIMCO Long Duration Total Return Fund | 101,800 | 1,121 | ||||||||||
PIMCO Long-Term Credit Fund | 90,967 | 1,123 |
SHARES | MARKET (000S) | |||||||||||
PIMCO Real Return Asset Fund | 256,684 | $ | 2,210 | |||||||||
PIMCO Real Return Fund | 112,168 | 1,241 | ||||||||||
PIMCO Total Return Fund | 157,873 | 1,621 | ||||||||||
|
| |||||||||||
Total Mutual Funds (Cost $12,528) | 12,659 | |||||||||||
|
| |||||||||||
SHORT-TERM INSTRUMENTS 2.0% | ||||||||||||
CENTRAL FUNDS USED FOR CASH MANAGEMENT PURPOSES 2.0% | ||||||||||||
PIMCO Short-Term | 61,344 | 606 | ||||||||||
|
| |||||||||||
Total Short-Term Instruments (Cost $606) | 606 | |||||||||||
|
| |||||||||||
Total Investments in Affiliates (Cost $13,134) | 13,265 | |||||||||||
Total Investments 97.1% (Cost $27,194) | $ | 28,385 | ||||||||||
Financial Derivative (Cost or Premiums, net $24) | 34 | |||||||||||
Other Assets and Liabilities, net 2.8% | 829 | |||||||||||
|
| |||||||||||
Net Assets 100.0% | $ | 29,248 | ||||||||||
|
|
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 | Notional Amount | Cost | Market Value | ||||||||||||||||||
Put - CBOE S&P 500 | 2,000.000 | 06/15/2018 | 5 | 500 | $ | 20 | $ | 3 | ||||||||||||||||
Put - CBOE S&P 500 | 1,950.000 | 09/21/2018 | 2 | 200 | 6 | 3 | ||||||||||||||||||
Put - CBOE S&P 500 | 2,075.000 | 09/21/2018 | 2 | 200 | 9 | 4 | ||||||||||||||||||
|
|
|
| |||||||||||||||||||||
$ | 35 | $ | 10 | |||||||||||||||||||||
|
|
|
| |||||||||||||||||||||
Total Purchased Options |
| $ | 35 | $ | 10 | |||||||||||||||||||
|
|
|
|
WRITTEN OPTIONS:
OPTIONS ON INDICES
Description | Strike Value | Expiration Date | # of Contracts | Notional Amount | Premiums (Received) | Market Value | ||||||||||||||||||
Put - CBOE S&P 500 | 1,675.000 | 06/15/2018 | 5 | 500 | $ | (8 | ) | $ | (1 | ) | ||||||||||||||
Put - CBOE S&P 500 | 1,725.000 | 09/21/2018 | 2 | 200 | (3 | ) | (1 | ) | ||||||||||||||||
|
|
|
| |||||||||||||||||||||
$ | (11 | ) | $ | (2 | ) | |||||||||||||||||||
|
|
|
| |||||||||||||||||||||
Total Written Options |
| $ | (11 | ) | $ | (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 December 31, 2017:
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 | $ | 10 | $ | 0 | $ | 0 | $ | 10 | $ (2) | $ | 0 | $ | 0 | $ (2) | ||||||||||||||||||||
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|
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|
|
See Accompanying Notes | SEMIANNUAL REPORT | DECEMBER 31, 2017 | 45 |
Table of Contents
Schedule of Investments PIMCO REALPATH® Blend 2025 Fund (Cont.)
(c) FINANCIAL DERIVATIVE INSTRUMENTS: OVER THE COUNTER
SWAP AGREEMENTS:
TOTAL RETURN SWAPS ON COMMODITY AND EQUITY INDICES
Counterparty | Pay/Receive(1) | Underlying Reference | # of Units | Financing Rate | Payment Frequency | Maturity Date | Notional Amount | Premiums Paid/(Received) | Unrealized Appreciation/ (Depreciation) | Swap Agreements, at Value | ||||||||||||||||||||||||
Asset | Liability | |||||||||||||||||||||||||||||||||
BPS | Receive | DWRTFT Index | 27 | 1-Month USD-LIBOR plus a specified spread | Monthly | 11/07/2018 | $ | 266 | $ | 0 | $ | (3 | ) | $ | 0 | $ | (3 | ) | ||||||||||||||||
CBK | Pay | BCOMTR Index | 3,309 | 3-Month U.S. Treasury Bill rate plus a specified spread | Monthly | 02/15/2018 | 567 | 0 | 28 | 28 | 0 | |||||||||||||||||||||||
GST | Receive | DWRTFT Index | 40 | 1-Month USD-LIBOR plus a specified spread | Monthly | 04/11/2018 | 390 | 0 | 0 | 0 | 0 | |||||||||||||||||||||||
JPM | Receive | BCOMTR Index | 41 | 3-Month U.S. Treasury Bill rate plus a specified spread | Monthly | 02/15/2018 | 7 | 0 | 0 | 0 | 0 | |||||||||||||||||||||||
MYI | Receive | DWRTFT Index | 29 | 1-Month USD-LIBOR plus a specified spread | Monthly | 09/12/2018 | 281 | 0 | 1 | 1 | 0 | |||||||||||||||||||||||
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| |||||||||||||||||||||||||||
$ | 0 | $ | 26 | $ | 29 | $ | (3 | ) | ||||||||||||||||||||||||||
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| |||||||||||||||||||||||||||
Total Swap Agreements |
| $ | 0 | $ | 26 | $ | 29 | $ | (3 | ) | ||||||||||||||||||||||||
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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 pledged/(received) as of December 31, 2017:
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 Pledged/ (Received) | Net Exposure(2) | |||||||||||||||||||||||||||||||||||||
BPS | $ | 0 | $ | 0 | $ | 0 | $ | 0 | $ | 0 | $ | 0 | $ | (3 | ) | $ | (3 | ) | $ | (3 | ) | $ | 0 | $ | (3 | ) | ||||||||||||||||||||||
CBK | 0 | 0 | 28 | 28 | 0 | 0 | 0 | 0 | 28 | 0 | 28 | |||||||||||||||||||||||||||||||||||||
MYI | 0 | 0 | 1 | 1 | 0 | 0 | 0 | 0 | 1 | 0 | 1 | |||||||||||||||||||||||||||||||||||||
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| |||||||||||||||||||||||||||||||||
Total Over the Counter | $ | 0 | $ | 0 | $ | 29 | $ | 29 | $ | 0 | $ | 0 | $ | (3 | ) | $ | (3 | ) | ||||||||||||||||||||||||||||||
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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. |
(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 7, Master Netting Arrangements, 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 December 31, 2017:
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 | $ | 28 | $ | 0 | $ | 1 | $ | 0 | $ | 0 | $ | 29 | ||||||||||||
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|
|
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|
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|
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|
| |||||||||||||
$ | 28 | $ | 0 | $ | 11 | $ | 0 | $ | 0 | $ | 39 | |||||||||||||
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|
|
|
|
|
|
|
| |||||||||||||
Financial Derivative Instruments - Liabilities |
| |||||||||||||||||||||||
Exchange-traded or centrally cleared |
| |||||||||||||||||||||||
Written Options | $ | 0 | $ | 0 | $ | 2 | $ | 0 | $ | 0 | $ | 2 | ||||||||||||
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|
|
|
|
|
|
|
|
|
| |||||||||||||
Over the counter |
| |||||||||||||||||||||||
Swap Agreements | $ | 0 | $ | 0 | $ | 3 | $ | 0 | $ | 0 | $ | 3 | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
$ | 0 | $ | 0 | $ | 5 | $ | 0 | $ | 0 | $ | 5 | |||||||||||||
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|
|
|
|
46 | PIMCO EQUITY SERIES | See Accompanying Notes |
Table of Contents
December 31, 2017 (Unaudited)
The effect of Financial Derivative Instruments on the Statements of Operations for the period ended December 31, 2017:
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 | $ | (7 | ) | $ | 0 | $ | 0 | $ | (7 | ) | ||||||||||
Written Options | 0 | 0 | 1 | 0 | 0 | 1 | ||||||||||||||||||
Futures | 0 | 0 | (21 | ) | 0 | (1 | ) | (22 | ) | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
$ | 0 | $ | 0 | $ | (27 | ) | $ | 0 | $ | (1 | ) | $ | (28 | ) | ||||||||||
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|
|
|
|
|
|
|
|
|
| |||||||||||||
Over the counter | ||||||||||||||||||||||||
Swap Agreements | $ | 3 | $ | 0 | $ | 18 | $ | 0 | $ | 0 | $ | 21 | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
$ | 3 | $ | 0 | $ | (9 | ) | $ | 0 | $ | (1 | ) | $ | (7 | ) | ||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Net Change in Unrealized Appreciation (Depreciation) on Financial Derivative Instruments |
| |||||||||||||||||||||||
Exchange-traded or centrally cleared |
| |||||||||||||||||||||||
Purchased Options | $ | 0 | $ | 0 | $ | (16 | ) | $ | 0 | $ | 0 | $ | (16 | ) | ||||||||||
Written Options | 0 | 0 | 6 | 0 | 0 | 6 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
$ | 0 | $ | 0 | $ | (10 | ) | $ | 0 | $ | 0 | $ | (10 | ) | |||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Over the counter | ||||||||||||||||||||||||
Swap Agreements | $ | 24 | $ | 0 | $ | (9 | ) | $ | 0 | $ | 0 | $ | 15 | |||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
$ | 24 | $ | 0 | $ | (19 | ) | $ | 0 | $ | 0 | $ | 5 | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
FAIR VALUE MEASUREMENTS
The following is a summary of the fair valuations according to the inputs used as of December 31, 2017 in valuing the Fund’s assets and liabilities:
Category and Subcategory | Level 1 | Level 2 | Level 3 | Fair Value at 12/31/2017 | ||||||||||||
Investments in Securities, at Value |
| |||||||||||||||
Mutual Funds | $ | 15,120 | $ | 0 | $ | 0 | $ | 15,120 | ||||||||
|
|
|
|
|
|
|
| |||||||||
$ | 15,120 | $ | 0 | $ | 0 | $ | 15,120 | |||||||||
|
|
|
|
|
|
|
| |||||||||
Investments in Affiliates, at Value | ||||||||||||||||
Mutual Funds | 12,659 | 0 | 0 | 12,659 | ||||||||||||
Short-Term Instruments | ||||||||||||||||
Central Funds Used for Cash Management Purposes | 606 | 0 | 0 | 606 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
$ | 13,265 | $ | 0 | $ | 0 | $ | 13,265 | |||||||||
|
|
|
|
|
|
|
| |||||||||
Total Investments | $ | 28,385 | $ | 0 | $ | 0 | $ | 28,385 | ||||||||
|
|
|
|
|
|
|
|
Category and Subcategory | Level 1 | Level 2 | Level 3 | Fair Value at 12/31/2017 | ||||||||||||
Financial Derivative Instruments - Assets |
| |||||||||||||||
Exchange-traded or centrally cleared | $ | 0 | $ | 10 | $ | 0 | $ | 10 | ||||||||
Over the counter | 0 | 29 | 0 | 29 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
$ | 0 | $ | 39 | $ | 0 | $ | 39 | |||||||||
|
|
|
|
|
|
|
| |||||||||
Financial Derivative Instruments - Liabilities |
| |||||||||||||||
Exchange-traded or centrally cleared | $ | 0 | $ | (2 | ) | $ | 0 | $ | (2 | ) | ||||||
Over the counter | 0 | (3 | ) | 0 | (3 | ) | ||||||||||
|
|
|
|
|
|
|
| |||||||||
$ | 0 | $ | (5 | ) | $ | 0 | $ | (5 | ) | |||||||
|
|
|
|
|
|
|
| |||||||||
Total Financial Derivative Instruments | $ | 0 | $ | 34 | $ | 0 | $ | 34 | ||||||||
|
|
|
|
|
|
|
| |||||||||
Totals | $ | 28,385 | $ | 34 | $ | 0 | $ | 28,419 | ||||||||
|
|
|
|
|
|
|
|
There were no significant transfers among Levels 1, 2, or 3 during the period ended December 31, 2017.
See Accompanying Notes | SEMIANNUAL REPORT | DECEMBER 31, 2017 | 47 |
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’ | 42,259 | $ | 10,430 | |||||||||
Vanguard Developed Markets Index Fund ‘Admiral’ | 387,299 | 5,581 | ||||||||||
Vanguard Emerging Markets Stock Index Fund ‘Admiral’ | 59,692 | 2,279 | ||||||||||
Vanguard Small-Cap Index Fund ‘Admiral’ | 17,202 | 1,218 | ||||||||||
|
| |||||||||||
Total Mutual Funds (Cost $17,521) | 19,508 | |||||||||||
|
| |||||||||||
Total Investments in Securities (Cost $17,521) | 19,508 | |||||||||||
|
| |||||||||||
INVESTMENTS IN AFFILIATES 39.2% | ||||||||||||
MUTUAL FUNDS (a) 34.5% | ||||||||||||
PIMCO Emerging Local Bond Fund | 87,965 | 665 | ||||||||||
PIMCO Foreign Bond Fund | 38,509 | 411 | ||||||||||
PIMCO High Yield Fund | 145,831 | 1,307 | ||||||||||
PIMCO Income Fund | 211,485 | 2,625 | ||||||||||
PIMCO Long Duration Total Return Fund | 96,608 | 1,064 | ||||||||||
PIMCO Long-Term Credit Fund | 86,187 | 1,064 |
SHARES | MARKET VALUE (000S) | |||||||||||
PIMCO Real Return Asset Fund | 247,897 | $ | 2,134 | |||||||||
PIMCO Real Return Fund | 59,751 | 661 | ||||||||||
PIMCO Total Return Fund | 127,692 | 1,311 | ||||||||||
|
| |||||||||||
Total Mutual Funds (Cost $11,038) | 11,242 | |||||||||||
|
| |||||||||||
SHORT-TERM INSTRUMENTS 4.7% | ||||||||||||
CENTRAL FUNDS USED FOR CASH MANAGEMENT PURPOSES 4.7% | ||||||||||||
PIMCO Short-Term | 153,666 | 1,519 | ||||||||||
|
| |||||||||||
Total Short-Term Instruments (Cost $1,519) | 1,519 | |||||||||||
|
| |||||||||||
Total Investments in Affiliates (Cost $12,557) | 12,761 | |||||||||||
Total Investments 99.0% (Cost $30,078) | $ | 32,269 | ||||||||||
Financial Derivative (Cost or Premiums, net $0) | 27 | |||||||||||
Other Assets and Liabilities, net 1.0% | 313 | |||||||||||
|
| |||||||||||
Net Assets 100.0% | $ | 32,609 | ||||||||||
|
|
NOTES TO SCHEDULE OF INVESTMENTS (AMOUNTS IN THOUSANDS*, EXCEPT NUMBER OF 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: OVER THE COUNTER
SWAP AGREEMENTS:
TOTAL RETURN SWAPS ON COMMODITY AND EQUITY INDICES
Counterparty | Pay/Receive(1) | Underlying | # of Units | Financing Rate | Payment | Maturity | Notional | Premiums | Unrealized Appreciation/ (Depreciation) | Swap Agreements, at Value | ||||||||||||||||||||||||
Asset | Liability | |||||||||||||||||||||||||||||||||
BPS | Receive | DWRTFT Index | 43 | 1-Month USD-LIBOR plus a specified spread | Monthly | 11/07/2018 | $ | 423 | $ | 0 | $ | (4 | ) | $ | 0 | $ | (4 | ) | ||||||||||||||||
CBK | Receive | BCOMTR Index | 3,160 | 3-Month U.S. Treasury Bill rate plus a specified spread | Monthly | 02/15/2018 | 542 | 0 | 27 | 27 | 0 | |||||||||||||||||||||||
GST | Receive | DWRTFT Index | 68 | 1-Month USD-LIBOR plus a specified spread | Monthly | 04/11/2018 | 662 | 0 | (1 | ) | 0 | (1 | ) | |||||||||||||||||||||
JPM | Receive | BCOMTR Index | 574 | 3-Month U.S. Treasury Bill rate plus a specified spread | Monthly | 02/15/2018 | 99 | 0 | 5 | 5 | 0 | |||||||||||||||||||||||
MYI | Receive | DWRTFT Index | 14 | 1-Month USD-LIBOR plus a specified spread | Monthly | 09/12/2018 | 136 | 0 | 0 | 0 | 0 | |||||||||||||||||||||||
|
|
|
|
|
|
|
| |||||||||||||||||||||||||||
$ | 0 | $ | 27 | $ | 32 | $ | (5 | ) | ||||||||||||||||||||||||||
|
|
|
|
|
|
|
| |||||||||||||||||||||||||||
Total Swap Agreements |
| $ | 0 | $ | 27 | $ | 32 | $ | (5 | ) | ||||||||||||||||||||||||
|
|
|
|
|
|
|
|
48 | PIMCO EQUITY SERIES | See Accompanying Notes |
Table of Contents
December 31, 2017 (Unaudited)
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 pledged/(received) as of December 31, 2017:
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 Pledged/ (Received) | Net Exposure(2) | |||||||||||||||||||||||||||||||||||||
BPS | $ | 0 | $ | 0 | $ | 0 | $ | 0 | $ | 0 | $ | 0 | $ | (4 | ) | $ | (4 | ) | $ | (4 | ) | $ | 0 | $ | (4 | ) | ||||||||||||||||||||||
CBK | 0 | 0 | 27 | 27 | 0 | 0 | 0 | 0 | 27 | 0 | 27 | |||||||||||||||||||||||||||||||||||||
GST | 0 | 0 | 0 | 0 | 0 | 0 | (1 | ) | (1 | ) | (1 | ) | 0 | (1 | ) | |||||||||||||||||||||||||||||||||
JPM | 0 | 0 | 5 | 5 | 0 | 0 | 0 | 0 | 5 | 0 | 5 | |||||||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||||||||||||||||||
Total Over the Counter | $ | 0 | $ | 0 | $ | 32 | $ | 32 | $ | 0 | $ | 0 | $ | (5 | ) | $ | (5 | ) | ||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(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. |
(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 7, Master Netting Arrangements, 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 December 31, 2017:
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 |
| |||||||||||||||||||||||
Swap Agreements | $ | 32 | $ | 0 | $ | 0 | $ | 0 | $ | 0 | $ | 32 | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Financial Derivative Instruments - Liabilities | ||||||||||||||||||||||||
Over the counter | ||||||||||||||||||||||||
Swap Agreements | $ | 0 | $ | 0 | $ | 5 | $ | 0 | $ | 0 | $ | 5 | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
The effect of Financial Derivative Instruments on the Statements of Operations for the period ended December 31, 2017:
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 | $ | (20 | ) | $ | 0 | $ | 0 | $ | (20 | ) | ||||||||||
Written Options | 0 | 0 | 15 | 0 | 0 | 15 | ||||||||||||||||||
Futures | 0 | 0 | (9 | ) | 0 | (1 | ) | (10 | ) | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
$ | 0 | $ | 0 | $ | (14 | ) | $ | 0 | $ | (1 | ) | $ | (15 | ) | ||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Over the counter | ||||||||||||||||||||||||
Swap Agreements | $ | 8 | $ | 0 | $ | 33 | $ | 0 | $ | 0 | $ | 41 | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
$ | 8 | $ | 0 | $ | 19 | $ | 0 | $ | (1 | ) | $ | 26 | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Net Change in Unrealized Appreciation (Depreciation) on Financial Derivative Instruments |
| |||||||||||||||||||||||
Exchange-traded or centrally cleared | $ | 0 | $ | 0 | $ | 15 | $ | 0 | $ | 0 | $ | 15 | ||||||||||||
Written Options | 0 | 0 | (12 | ) | 0 | 0 | (12 | ) | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
$ | 0 | $ | 0 | $ | 3 | $ | 0 | $ | 0 | $ | 3 | |||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Over the counter | ||||||||||||||||||||||||
Swap Agreements | $ | 25 | $ | 0 | $ | (19 | ) | $ | 0 | $ | 0 | $ | 6 | |||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
$ | 25 | $ | 0 | $ | (16 | ) | $ | 0 | $ | 0 | $ | 9 | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
See Accompanying Notes | SEMIANNUAL REPORT | DECEMBER 31, 2017 | 49 |
Table of Contents
Schedule of Investments PIMCO REALPATH® Blend 2030 Fund (Cont.)
December 31, 2017 (Unaudited)
FAIR VALUE MEASUREMENTS
The following is a summary of the fair valuations according to the inputs used as of December 31, 2017 in valuing the Fund’s assets and liabilities:
Category and Subcategory | Level 1 | Level 2 | Level 3 | Fair Value at 12/31/2017 | ||||||||||||
Investments in Securities, at Value |
| |||||||||||||||
Mutual Funds | $ | 19,508 | $ | 0 | $ | 0 | $ | 19,508 | ||||||||
|
|
|
|
|
|
|
| |||||||||
$ | 19,508 | $ | 0 | $ | 0 | $ | 19,508 | |||||||||
|
|
|
|
|
|
|
| |||||||||
Investments in Affiliates, at Value |
| |||||||||||||||
Mutual Funds | 11,242 | 0 | 0 | 11,242 | ||||||||||||
Short-Term Instruments |
| |||||||||||||||
Central Funds Used for Cash Management Purposes | 1,519 | 0 | 0 | 1,519 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
$ | 12,761 | $ | 0 | $ | 0 | $ | 12,761 | |||||||||
|
|
|
|
|
|
|
| |||||||||
Total Investments | $ | 32,269 | $ | 0 | $ | 0 | $ | 32,269 | ||||||||
|
|
|
|
|
|
|
|
Category and Subcategory | Level 1 | Level 2 | Level 3 | Fair Value at 12/31/2017 | ||||||||||||
Financial Derivative Instruments - Assets |
| |||||||||||||||
Over the counter | $ | 0 | $ | 32 | $ | 0 | $ | 32 | ||||||||
|
|
|
|
|
|
|
| |||||||||
Financial Derivative Instruments - Liabilities |
| |||||||||||||||
Over the counter | $ | 0 | $ | (5 | ) | $ | 0 | $ | (5 | ) | ||||||
|
|
|
|
|
|
|
| |||||||||
Total Financial Derivative Instruments | $ | 0 | $ | 27 | $ | 0 | $ | 27 | ||||||||
|
|
|
|
|
|
|
| |||||||||
Totals | $ | 32,269 | $ | 27 | $ | 0 | $ | 32,296 | ||||||||
|
|
|
|
|
|
|
|
There were no significant transfers among Levels 1, 2, or 3 during the period ended December 31, 2017.
50 | PIMCO EQUITY SERIES | See Accompanying Notes |
Table of Contents
Schedule of Investments PIMCO REALPATH® Blend 2035 Fund
December 31, 2017 (Unaudited)
SHARES | MARKET VALUE (000S) | |||||||||||
INVESTMENTS IN SECURITIES 66.9% | ||||||||||||
MUTUAL FUNDS 66.9% | ||||||||||||
Vanguard 500 Index Fund ‘Admiral’ | 49,435 | $ | 12,202 | |||||||||
Vanguard Developed Markets Index Fund ‘Admiral’ | 447,444 | 6,448 | ||||||||||
Vanguard Emerging Markets Stock Index Fund ‘Admiral’ | 69,897 | 2,669 | ||||||||||
Vanguard Small-Cap Index Fund ‘Admiral’ | 20,036 | 1,417 | ||||||||||
|
| |||||||||||
Total Mutual Funds (Cost $20,330) |
| 22,736 | ||||||||||
|
| |||||||||||
Total Investments in Securities (Cost $20,329) | 22,736 | |||||||||||
|
| |||||||||||
INVESTMENTS IN AFFILIATES 32.0% | ||||||||||||
MUTUAL FUNDS (a) 26.9% | ||||||||||||
PIMCO Emerging Local Bond Fund | 90,764 | 687 | ||||||||||
PIMCO Foreign Bond Fund (U.S. Dollar-Hedged) | 28,201 | 301 | ||||||||||
SHARES | MARKET VALUE (000S) | |||||||||||
PIMCO High Yield Fund | 146,175 | $ | 1,310 | |||||||||
PIMCO Income Fund | 192,760 | 2,392 | ||||||||||
PIMCO Long Duration Total Return Fund | 70,326 | 774 | ||||||||||
PIMCO Long-Term Credit Fund | 62,839 | 776 | ||||||||||
PIMCO Real Return Asset Fund | 158,935 | 1,368 | ||||||||||
PIMCO Real Return Fund | 43,973 | 486 | ||||||||||
PIMCO Total Return Fund | 102,375 | 1,051 | ||||||||||
|
| |||||||||||
Total Mutual Funds (Cost $8,976) |
| 9,145 | ||||||||||
|
| |||||||||||
SHARES | MARKET VALUE (000S) | |||||||||||
SHORT-TERM INSTRUMENTS 5.1% | ||||||||||||
CENTRAL FUNDS USED FOR CASH MANAGEMENT PURPOSES 5.1% | ||||||||||||
PIMCO Short-Term | 173,661 | $ | 1,717 | |||||||||
|
| |||||||||||
Total Short-Term Instruments (Cost $1,716) | 1,717 | |||||||||||
|
| |||||||||||
Total Investments in Affiliates (Cost $10,692) | 10,862 | |||||||||||
Total Investments 98.9% (Cost $31,021) | $ | 33,598 | ||||||||||
Financial Derivative (Cost or Premiums, net $0) |
| 27 | ||||||||||
Other Assets and Liabilities, net 1.0% | 345 | |||||||||||
|
| |||||||||||
Net Assets 100.0% | $ | 33,970 | ||||||||||
|
|
NOTES TO SCHEDULE OF INVESTMENTS (AMOUNTS IN THOUSANDS*, EXCEPT NUMBER OF 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: OVER THE COUNTER
SWAP AGREEMENTS:
TOTAL RETURN SWAPS ON COMMODITY AND EQUITY INDICES
Counterparty | Pay/Receive(1) | Underlying | # of Units | Financing Rate | Payment | Maturity | Notional | Premiums | Unrealized Appreciation/ (Depreciation) | Swap Agreements, at Value | ||||||||||||||||||||||||||
Asset | Liability | |||||||||||||||||||||||||||||||||||
BPS | Receive | DWRTFT Index | 43 | 1-Month USD-LIBOR plus a specified spread | Monthly | 11/07/2018 | $ | 424 | $ | 0 | $ | (5 | ) | $ | 0 | $ | (5 | ) | ||||||||||||||||||
CBK | Receive | BCOMTR Index | 3,638 | 3-Month U.S. Treasury Bill rate plus a specified spread | Monthly | 02/15/2018 | 624 | 0 | 30 | 30 | 0 | |||||||||||||||||||||||||
GST | Receive | DWRTFT Index | 95 | 1-Month USD-LIBOR plus a specified spread | Monthly | 04/11/2018 | 925 | 0 | (1 | ) | 0 | (1 | ) | |||||||||||||||||||||||
JPM | Receive | BCOMTR Index | 334 | 3-Month U.S. Treasury Bill rate plus a specified spread | Monthly | 02/15/2018 | 57 | 0 | 3 | 3 | 0 | |||||||||||||||||||||||||
MYI | Receive | DWRTFT Index | 4 | 1-Month USD-LIBOR plus a specified spread | Monthly | 09/12/2018 | 39 | 0 | 0 | 0 | 0 | |||||||||||||||||||||||||
|
|
|
|
|
|
|
| |||||||||||||||||||||||||||||
$ | 0 | $ | 27 | $ | 33 | $ | (6 | ) | ||||||||||||||||||||||||||||
|
|
|
|
|
|
|
| |||||||||||||||||||||||||||||
Total Swap Agreements |
| $ | 0 | $ | 27 | $ | 33 | $ | (6 | ) | ||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
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 pledged/(received) as of December 31, 2017:
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 Pledged/ (Received) | Net Exposure(2) | |||||||||||||||||||||||||||||||||||||
BPS | $ | 0 | $ | 0 | $ | 0 | $ | 0 | $ | 0 | $ | 0 | $ | (5 | ) | $ | (5 | ) | $ | (5 | ) | $ | 0 | $ | (5 | ) | ||||||||||||||||||||||
CBK | 0 | 0 | 30 | 30 | 0 | 0 | 0 | 0 | 30 | 0 | 30 | |||||||||||||||||||||||||||||||||||||
GST | 0 | 0 | 0 | 0 | 0 | 0 | (1 | ) | (1 | ) | (1 | ) | 0 | (1 | ) | |||||||||||||||||||||||||||||||||
JPM | 0 | 0 | 3 | 3 | 0 | 0 | 0 | 0 | 3 | 0 | 3 | |||||||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||||||||||||||||||
Total Over the Counter | $ | 0 | $ | 0 | $ | 33 | $ | 33 | $ | 0 | $ | 0 | $ | (6 | ) | $ | (6 | ) | ||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(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. |
See Accompanying Notes | SEMIANNUAL REPORT | DECEMBER 31, 2017 | 51 |
Table of Contents
Schedule of Investments PIMCO REALPATH® Blend 2035 Fund (Cont.)
December 31, 2017 (Unaudited)
(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 7, Master Netting Arrangements, 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 December 31, 2017:
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 | ||||||||||||||||||||||||
Swap Agreements | $ | 33 | $ | 0 | $ | 0 | $ | 0 | $ | 0 | $ | 33 | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Financial Derivative Instruments - Liabilities | ||||||||||||||||||||||||
Over the counter | ||||||||||||||||||||||||
Swap Agreements | $ | 0 | $ | 0 | $ | 6 | $ | 0 | $ | 0 | $ | 6 | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
The effect of Financial Derivative Instruments on the Statements of Operations for the period ended December 31, 2017:
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 | $ | (20 | ) | $ | 0 | $ | 0 | $ | (20 | ) | ||||||||||
Written Options | 0 | 0 | 15 | 0 | 0 | 15 | ||||||||||||||||||
Futures | 0 | 0 | (1 | ) | 0 | 0 | (1 | ) | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
$ | 0 | $ | 0 | $ | (6 | ) | $ | 0 | $ | 0 | $ | (6 | ) | |||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Over the counter | ||||||||||||||||||||||||
Swap Agreements | $ | 13 | $ | 0 | $ | 43 | $ | 0 | $ | 0 | $ | 56 | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
$ | 13 | $ | 0 | $ | 37 | $ | 0 | $ | 0 | $ | 50 | |||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Net Change in Unrealized Appreciation (Depreciation) on Financial Derivative Instruments |
| |||||||||||||||||||||||
Exchange-traded or centrally cleared | ||||||||||||||||||||||||
Purchased Options | $ | 0 | $ | 0 | $ | 15 | $ | 0 | $ | 0 | $ | 15 | ||||||||||||
Written Options | 0 | 0 | (12 | ) | 0 | 0 | (12 | ) | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
$ | 0 | $ | 0 | $ | 3 | $ | 0 | $ | 0 | $ | 3 | |||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Over the counter | ||||||||||||||||||||||||
Swap Agreements | $ | 25 | $ | 0 | $ | (26 | ) | $ | 0 | $ | 0 | $ | (1 | ) | ||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
$ | 25 | $ | 0 | $ | (23 | ) | $ | 0 | $ | 0 | $ | 2 | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
FAIR VALUE MEASUREMENTS
The following is a summary of the fair valuations according to the inputs used as of December 31, 2017 in valuing the Fund’s assets and liabilities:
Category and Subcategory | Level 1 | Level 2 | Level 3 | Fair Value at 12/31/2017 | ||||||||||||
Investments in Securities, at Value |
| |||||||||||||||
Mutual Funds | $ | 22,736 | $ | 0 | $ | 0 | $ | 22,736 | ||||||||
|
|
|
|
|
|
|
| |||||||||
$ | 22,736 | $ | 0 | $ | 0 | $ | 22,736 | |||||||||
|
|
|
|
|
|
|
| |||||||||
Investments in Affiliates, at Value | ||||||||||||||||
Mutual Funds | 9,145 | 0 | 0 | 9,145 | ||||||||||||
Short-Term Instruments | ||||||||||||||||
Central Funds Used for Cash | 1,717 | 0 | 0 | 1,717 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
$ | 10,862 | $ | 0 | $ | 0 | $ | 10,862 | |||||||||
|
|
|
|
|
|
|
| |||||||||
Total Investments | $ | 33,598 | $ | 0 | $ | 0 | $ | 33,598 | ||||||||
|
|
|
|
|
|
|
|
Category and Subcategory | Level 1 | Level 2 | Level 3 | Fair Value at 12/31/2017 | ||||||||||||
Financial Derivative Instruments - Assets |
| |||||||||||||||
Over the counter | $ | 0 | $ | 33 | $ | 0 | $ | 33 | ||||||||
|
|
|
|
|
|
|
| |||||||||
Financial Derivative Instruments - Liabilities |
| |||||||||||||||
Over the counter | $ | 0 | $ | (6 | ) | $ | 0 | $ | (6 | ) | ||||||
|
|
|
|
|
|
|
| |||||||||
Total Financial Derivative Instruments | $ | 0 | $ | 27 | $ | 0 | $ | 27 | ||||||||
|
|
|
|
|
|
|
| |||||||||
Totals | $ | 33,598 | $ | 27 | $ | 0 | $ | 33,625 | ||||||||
|
|
|
|
|
|
|
|
There were no significant transfers among Levels 1, 2, or 3 during the period ended December 31, 2017.
52 | PIMCO EQUITY SERIES | See Accompanying Notes |
Table of Contents
Schedule of Investments PIMCO REALPATH® Blend 2040 Fund
December 31, 2017 (Unaudited)
SHARES | MARKET VALUE (000S) | |||||||||||
INVESTMENTS IN SECURITIES 72.1% | ||||||||||||
MUTUAL FUNDS 72.1% | ||||||||||||
Vanguard 500 Index Fund ‘Admiral’ | 60,217 | $ | 14,863 | |||||||||
Vanguard Developed Markets Index Fund ‘Admiral’ | 538,852 | 7,765 | ||||||||||
Vanguard Emerging Markets Stock Index Fund ‘Admiral’ | 85,668 | 3,271 | ||||||||||
Vanguard Small-Cap Index | 23,737 | 1,680 | ||||||||||
|
| |||||||||||
Total Mutual Funds (Cost $24,710) |
| 27,579 | ||||||||||
|
| |||||||||||
Total Investments in Securities (Cost $24,710) | 27,579 | |||||||||||
|
| |||||||||||
INVESTMENTS IN AFFILIATES 25.6% | ||||||||||||
MUTUAL FUNDS (a) 21.1% | ||||||||||||
PIMCO Emerging Local Bond Fund | 90,397 | 683 | ||||||||||
PIMCO Foreign Bond Fund (U.S. Dollar-Hedged) | 26,637 | 284 | ||||||||||
PIMCO High Yield Fund | 149,842 | 1,343 | ||||||||||
PIMCO Income Fund | 174,299 | 2,163 | ||||||||||
PIMCO Long Duration Total Return Fund | 61,060 | 672 | ||||||||||
PIMCO Long-Term Credit Fund | 54,561 | 674 |
SHARES | MARKET VALUE (000S) | |||||||||||
PIMCO Real Return Asset Fund | 113,476 | $ | 977 | |||||||||
PIMCO Real Return Fund | 45,848 | 507 | ||||||||||
PIMCO Total Return Fund | 73,575 | 756 | ||||||||||
|
| |||||||||||
Total Mutual Funds (Cost $7,925) |
| 8,059 | ||||||||||
|
| |||||||||||
SHORT-TERM INSTRUMENTS 4.5% | ||||||||||||
CENTRAL FUNDS USED FOR CASH MANAGEMENT PURPOSES 4.5% | ||||||||||||
PIMCO Short-Term | 173,914 | 1,719 | ||||||||||
|
| |||||||||||
Total Short-Term Instruments (Cost $1,719) | 1,719 | |||||||||||
|
| |||||||||||
Total Investments in Affiliates (Cost $9,644) | 9,778 | |||||||||||
Total Investments 97.7% (Cost $34,354) | $ | 37,357 | ||||||||||
Financial Derivative (Cost or Premiums, net $0) |
| 32 | ||||||||||
Other Assets and Liabilities, net 2.2% | 829 | |||||||||||
|
| |||||||||||
Net Assets 100.0% | $ | 38,218 | ||||||||||
|
|
NOTES TO SCHEDULE OF INVESTMENTS (AMOUNTS IN THOUSANDS*, EXCEPT NUMBER OF 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: OVER THE COUNTER
SWAP AGREEMENTS:
TOTAL RETURN SWAPS ON COMMODITY AND EQUITY INDICES
Counterparty | Pay/Receive(1) | Underlying Reference | # of Units | Financing Rate | Payment Frequency | Maturity Date | Notional Amount | Premiums Paid/(Received) | Unrealized Appreciation/ (Depreciation) | Swap Agreements, at Value | ||||||||||||||||||||||||
Asset | Liability | |||||||||||||||||||||||||||||||||
BPS | Receive | DWRTFT Index | 32 | 1-Month USD-LIBOR plus a specified spread | Monthly | 11/07/2018 | $ | 315 | $ | 0 | $ | (3 | ) | $ | 0 | $ | (3 | ) | ||||||||||||||||
CBK | Receive | BCOMTR Index | 4,413 | 3-Month U.S. Treasury Bill rate plus a specified spread | Monthly | 02/15/2018 | 757 | 0 | 37 | 37 | 0 | |||||||||||||||||||||||
GST | Receive | DWRTFT Index | 141 | 1-Month USD-LIBOR plus a specified spread | Monthly | 04/11/2018 | 1,374 | 0 | (2 | ) | 0 | (2 | ) | |||||||||||||||||||||
JPM | Receive | BCOMTR Index | 48 | 3-Month U.S. Treasury Bill rate plus a specified spread | Monthly | 02/15/2018 | 8 | 0 | 0 | 0 | 0 | |||||||||||||||||||||||
|
|
|
|
|
|
|
| |||||||||||||||||||||||||||
$ | 0 | $ | 32 | $ | 37 | $ | (5 | ) | ||||||||||||||||||||||||||
|
|
|
|
|
|
|
| |||||||||||||||||||||||||||
Total Swap Agreements | $ | 0 | $ | 32 | $ | 37 | $ | (5 | ) | |||||||||||||||||||||||||
|
|
|
|
|
|
|
|
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 pledged/(received) as of December 31, 2017:
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 Pledged/ (Received) | Net Exposure(2) | |||||||||||||||||||||||||||||||||||||
BPS | $ | 0 | $ | 0 | $ | 0 | $ | 0 | $ | 0 | $ | 0 | $ | (3 | ) | $ | (3 | ) | $ | (3 | ) | $ | 0 | $ | (3 | ) | ||||||||||||||||||||||
CBK | 0 | 0 | 37 | 37 | 0 | 0 | 0 | 0 | 37 | 0 | 37 | |||||||||||||||||||||||||||||||||||||
GST | 0 | 0 | 0 | 0 | 0 | 0 | (2 | ) | (2 | ) | (2 | ) | 0 | (2 | ) | |||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||||||||||||||||||
Total Over the Counter | $ | 0 | $ | 0 | $ | 37 | $ | 37 | $ | 0 | $ | 0 | $ | (5 | ) | $ | (5 | ) | ||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(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. |
See Accompanying Notes | SEMIANNUAL REPORT | DECEMBER 31, 2017 | 53 |
Table of Contents
Schedule of Investments PIMCO REALPATH® Blend 2040 Fund (Cont.)
December 31, 2017 (Unaudited)
(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 7, Master Netting Arrangements, 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 December 31, 2017:
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 |
| |||||||||||||||||||||||
Swap Agreements | $ | 37 | $ | 0 | $ | 0 | $ | 0 | $ | 0 | $ | 37 | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Financial Derivative Instruments - Liabilities |
| |||||||||||||||||||||||
Over the counter |
| |||||||||||||||||||||||
Swap Agreements | $ | 0 | $ | 0 | $ | 5 | $ | 0 | $ | 0 | $ | 5 | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
The effect of Financial Derivative Instruments on the Statements of Operations for the period ended December 31, 2017:
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 | $ | (10 | ) | $ | 0 | $ | 0 | $ | (10 | ) | ||||||||||
Written Options | 0 | 0 | 8 | 0 | 0 | 8 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
$ | 0 | $ | 0 | $ | (2 | ) | $ | 0 | $ | 0 | $ | (2 | ) | |||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Over the counter |
| |||||||||||||||||||||||
Swap Agreements | $ | 21 | $ | 0 | $ | 58 | $ | 0 | $ | 0 | $ | 79 | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
$ | 21 | $ | 0 | $ | 56 | $ | 0 | $ | 0 | $ | 77 | |||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
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 | $ | 25 | $ | 0 | $ | (35 | ) | $ | 0 | $ | 0 | $ | (10 | ) | ||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
$ | 25 | $ | 0 | $ | (33 | ) | $ | 0 | $ | 0 | $ | (8 | ) | |||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
FAIR VALUE MEASUREMENTS
The following is a summary of the fair valuations according to the inputs used as of December 31, 2017 in valuing the Fund’s assets and liabilities:
Category and Subcategory | Level 1 | Level 2 | Level 3 | Fair Value at 12/31/2017 | ||||||||||||
Investments in Securities, at Value |
| |||||||||||||||
Mutual Funds | $ | 27,579 | $ | 0 | $ | 0 | $ | 27,579 | ||||||||
|
|
|
|
|
|
|
| |||||||||
$ | 27,579 | $ | 0 | $ | 0 | $ | 27,579 | |||||||||
|
|
|
|
|
|
|
| |||||||||
Investments in Affiliates, at Value |
| |||||||||||||||
Mutual Funds | 8,059 | 0 | 0 | 8,059 | ||||||||||||
Short-Term Instruments |
| |||||||||||||||
Central Funds Used for Cash Management Purposes | 1,719 | 0 | 0 | 1,719 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
$ | 9,778 | $ | 0 | $ | 0 | $ | 9,778 | |||||||||
|
|
|
|
|
|
|
| |||||||||
Total Investments | $ | 37,357 | $ | 0 | $ | 0 | $ | 37,357 | ||||||||
|
|
|
|
|
|
|
|
Category and Subcategory | Level 1 | Level 2 | Level 3 | Fair Value at 12/31/2017 | ||||||||||||
Financial Derivative Instruments - Assets |
| |||||||||||||||
Over the counter | $ | 0 | $ | 37 | $ | 0 | $ | 37 | ||||||||
|
|
|
|
|
|
|
| |||||||||
Financial Derivative Instruments - Liabilities |
| |||||||||||||||
Over the counter | $ | 0 | $ | (5 | ) | $ | 0 | $ | (5 | ) | ||||||
|
|
|
|
|
|
|
| |||||||||
Total Financial Derivative Instruments | $ | 0 | $ | 32 | $ | 0 | $ | 32 | ||||||||
|
|
|
|
|
|
|
| |||||||||
Totals | $ | 37,357 | $ | 32 | $ | 0 | $ | 37,389 | ||||||||
|
|
|
|
|
|
|
|
There were no significant transfers among Levels 1, 2, or 3 during the period ended December 31, 2017.
54 | PIMCO EQUITY SERIES | See Accompanying Notes |
Table of Contents
Schedule of Investments PIMCO REALPATH® Blend 2045 Fund
December 31, 2017 (Unaudited)
SHARES | MARKET VALUE (000S) | |||||||||||
INVESTMENTS IN SECURITIES 76.0% | ||||||||||||
MUTUAL FUNDS 76.0% | ||||||||||||
Vanguard 500 Index Fund ‘Admiral’ | 83,498 | $ | 20,609 | |||||||||
Vanguard Developed Markets Index Fund ‘Admiral’ | 742,719 | 10,703 | ||||||||||
Vanguard Emerging Markets Stock Index Fund ‘Admiral’ | 119,131 | 4,548 | ||||||||||
Vanguard Small-Cap Index Fund ‘Admiral’ | 33,151 | 2,346 | ||||||||||
|
| |||||||||||
Total Mutual Funds (Cost $34,283) | 38,206 | |||||||||||
|
| |||||||||||
Total Investments in Securities (Cost $34,283) | 38,206 | |||||||||||
|
| |||||||||||
INVESTMENTS IN AFFILIATES 21.8% | ||||||||||||
MUTUAL FUNDS (a) 16.8% | ||||||||||||
PIMCO Emerging Local Bond Fund | 100,037 | 756 | ||||||||||
PIMCO Foreign Bond Fund (U.S. Dollar-Hedged) | 34,655 | 370 | ||||||||||
PIMCO High Yield Fund | 165,825 | 1,486 | ||||||||||
PIMCO Income Fund | 178,705 | 2,218 | ||||||||||
PIMCO Long Duration Total Return Fund | 55,434 | 610 | ||||||||||
PIMCO Long-Term Credit Fund | 49,533 | 612 |
SHARES | MARKET VALUE (000S) | |||||||||||
PIMCO Real Return Asset Fund | 129,197 | $ | 1,112 | |||||||||
PIMCO Real Return Fund | 54,392 | 602 | ||||||||||
PIMCO Total Return Fund | 66,261 | 680 | ||||||||||
|
| |||||||||||
Total Mutual Funds (Cost $8,327) | 8,446 | |||||||||||
|
| |||||||||||
SHORT-TERM INSTRUMENTS 5.0% | ||||||||||||
CENTRAL FUNDS USED FOR CASH MANAGEMENT PURPOSES 5.0% | ||||||||||||
PIMCO Short-Term Floating NAV Portfolio III | 255,708 | 2,528 | ||||||||||
|
| |||||||||||
Total Short-Term Instruments (Cost $2,528) | 2,528 | |||||||||||
|
| |||||||||||
Total Investments in Affiliates (Cost $10,855) | 10,974 | |||||||||||
Total Investments 97.8% (Cost $45,138) | $ | 49,180 | ||||||||||
Financial Derivative (Cost or Premiums, net $0) | 42 | |||||||||||
Other Assets and Liabilities, net 2.1% | 1,051 | |||||||||||
|
| |||||||||||
Net Assets 100.0% | $ | 50,273 | ||||||||||
|
|
NOTES TO SCHEDULE OF INVESTMENTS (AMOUNTS IN THOUSANDS*, EXCEPT NUMBER OF 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: OVER THE COUNTER
SWAP AGREEMENTS:
TOTAL RETURN SWAPS ON COMMODITY AND EQUITY INDICES
Counterparty | Pay/Receive(1) | Underlying | # of Units | Financing Rate | Payment | Maturity | Notional | Premiums | Unrealized Appreciation/ (Depreciation) | Swap Agreements, at Value | ||||||||||||||||||||||||||
Asset | Liability | |||||||||||||||||||||||||||||||||||
BPS | Receive | DWRTFT Index | 36 | 1-Month USD-LIBOR plus a specified spread | Monthly | 11/07/2018 | $ | 355 | $ | 0 | $ | (4 | ) | $ | 0 | $ | (4 | ) | ||||||||||||||||||
CBK | Pay | BCOMTR Index | 5,739 | 3-Month U.S. Treasury Bill rate plus a specified spread | Monthly | 02/15/2018 | 984 | 0 | 48 | 48 | 0 | |||||||||||||||||||||||||
GST | Receive | DWRTFT Index | 204 | 1-Month USD-LIBOR plus a specified spread | Monthly | 04/11/2018 | 1,987 | 0 | (2 | ) | 0 | (2 | ) | |||||||||||||||||||||||
|
|
|
|
|
|
|
| |||||||||||||||||||||||||||||
$ | 0 | $ | 42 | $ | 48 | $ | (6 | ) | ||||||||||||||||||||||||||||
|
|
|
|
|
|
|
| |||||||||||||||||||||||||||||
Total Swap Agreements | $ | 0 | $ | 42 | $ | 48 | $ | (6 | ) | |||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
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 pledged/(received) as of December 31, 2017:
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 Pledged/ (Received) | Net Exposure(2) | |||||||||||||||||||||||||||||||||||||
BPS | $ | 0 | $ | 0 | $ | 0 | $ | 0 | $ | 0 | $ | 0 | $ | (4 | ) | $ | (4 | ) | $ | (4 | ) | $ | 0 | $ | (4 | ) | ||||||||||||||||||||||
CBK | 0 | 0 | 48 | 48 | 0 | 0 | 0 | 0 | 48 | 0 | 48 | |||||||||||||||||||||||||||||||||||||
GST | 0 | 0 | 0 | 0 | 0 | 0 | (2 | ) | (2 | ) | (2 | ) | 0 | (2 | ) | |||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||||||||||||||||||
Total Over the Counter | $ | 0 | $ | 0 | $ | 48 | $ | 48 | $ | 0 | $ | 0 | $ | (6 | ) | $ | (6 | ) | ||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(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. |
See Accompanying Notes | SEMIANNUAL REPORT | DECEMBER 31, 2017 | 55 |
Table of Contents
Schedule of Investments PIMCO REALPATH® Blend 2045 Fund (Cont.)
December 31, 2017 (Unaudited)
(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 7, Master Netting Arrangements, 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 December 31, 2017:
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 |
| |||||||||||||||||||||||
Swap Agreements | $ | 48 | $ | 0 | $ | 0 | $ | 0 | $ | 0 | $ | 48 | ||||||||||||
|
| |||||||||||||||||||||||
Financial Derivative Instruments - Liabilities |
| |||||||||||||||||||||||
Over the counter | ||||||||||||||||||||||||
Swap Agreements | $ | 0 | $ | 0 | $ | 6 | $ | 0 | $ | 0 | $ | 6 | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
The effect of Financial Derivative Instruments on the Statements of Operations for the period ended December 31, 2017:
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 | $ | (10 | ) | $ | 0 | $ | 0 | $ | (10 | ) | ||||||||||
Written Options | 0 | 0 | 8 | 0 | 0 | 8 | ||||||||||||||||||
Futures | 0 | 0 | 1 | 0 | 0 | 1 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
$ | 0 | $ | 0 | $ | (1 | ) | $ | 0 | $ | 0 | $ | (1 | ) | |||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Over the counter | ||||||||||||||||||||||||
Swap Agreements | $ | 26 | $ | 0 | $ | 80 | $ | 0 | $ | 0 | $ | 106 | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
$ | 26 | $ | 0 | $ | 79 | $ | 0 | $ | 0 | $ | 105 | |||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
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 | $ | 33 | $ | 0 | $ | (47 | ) | $ | 0 | $ | 0 | $ | (14 | ) | ||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
$ | 33 | $ | 0 | $ | (45 | ) | $ | 0 | $ | 0 | $ | (12 | ) | |||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
FAIR VALUE MEASUREMENTS
The following is a summary of the fair valuations according to the inputs used as of December 31, 2017 in valuing the Fund’s assets and liabilities:
Category and Subcategory | Level 1 | Level 2 | Level 3 | Fair Value at 12/31/2017 | ||||||||||||
Investments in Securities, at Value |
| |||||||||||||||
Mutual Funds | $ | 38,206 | $ | 0 | $ | 0 | $ | 38,206 | ||||||||
|
|
|
|
|
|
|
| |||||||||
$ | 38,206 | $ | 0 | $ | 0 | $ | 38,206 | |||||||||
|
|
|
|
|
|
|
| |||||||||
Investments in Affiliates, at Value |
| |||||||||||||||
Mutual Funds | 8,446 | 0 | 0 | 8,446 | ||||||||||||
Short-Term Instruments | ||||||||||||||||
Central Funds Used for Cash Management Purposes | 2,528 | 0 | 0 | 2,528 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
$ | 10,974 | $ | 0 | $ | 0 | $ | 10,974 | |||||||||
|
|
|
|
|
|
|
| |||||||||
Total Investments | $ | 49,180 | $ | 0 | $ | 0 | $ | 49,180 | ||||||||
|
|
|
|
|
|
|
|
Category and Subcategory | Level 1 | Level 2 | Level 3 | Fair Value at 12/31/2017 | ||||||||||||
Financial Derivative Instruments - Assets |
| |||||||||||||||
Over the counter | $ | 0 | $ | 48 | $ | 0 | $ | 48 | ||||||||
|
|
|
|
|
|
|
| |||||||||
Financial Derivative Instruments - Liabilities |
| |||||||||||||||
Over the counter | $ | 0 | $ | (6 | ) | $ | 0 | $ | (6 | ) | ||||||
|
|
|
|
|
|
|
| |||||||||
Total Financial Derivative Instruments | $ | 0 | $ | 42 | $ | 0 | $ | 42 | ||||||||
|
|
|
|
|
|
|
| |||||||||
Totals | $ | 49,180 | $ | 42 | $ | 0 | $ | 49,222 | ||||||||
|
|
|
|
|
|
|
|
There were no significant transfers among Levels 1, 2, or 3 during the period ended December 31, 2017.
56 | PIMCO EQUITY SERIES | See Accompanying Notes |
Table of Contents
Schedule of Investments PIMCO REALPATH® Blend 2050 Fund
December 31, 2017 (Unaudited)
SHARES | MARKET VALUE (000S) | |||||||||||
INVESTMENTS IN SECURITIES 78.2% | ||||||||||||
MUTUAL FUNDS 78.2% | ||||||||||||
Vanguard 500 Index Fund ‘Admiral’ | 107,696 | $ | 26,582 | |||||||||
Vanguard Developed Markets Index Fund ‘Admiral’ | 950,439 | 13,696 | ||||||||||
Vanguard Emerging Markets Stock Index Fund ‘Admiral’ | 153,054 | 5,844 | ||||||||||
Vanguard Small-Cap Index Fund ‘Admiral’ | 44,311 | 3,136 | ||||||||||
|
| |||||||||||
Total Mutual Funds (Cost $44,394) | 49,258 | |||||||||||
|
| |||||||||||
Total Investments in Securities (Cost $44,394) | 49,258 | |||||||||||
|
| |||||||||||
INVESTMENTS IN AFFILIATES 20.6% | ||||||||||||
MUTUAL FUNDS (a) 14.7% | ||||||||||||
PIMCO Emerging Local Bond Fund | 118,078 | 893 | ||||||||||
PIMCO Foreign Bond Fund (U.S. Dollar-Hedged) | 40,899 | 436 | ||||||||||
PIMCO High Yield Fund | 195,724 | 1,754 | ||||||||||
PIMCO Income Fund | 186,794 | 2,318 | ||||||||||
PIMCO Long Duration Total Return Fund | 57,631 | 635 | ||||||||||
PIMCO Long-Term Credit Fund | 51,496 | 636 |
SHARES | MARKET VALUE (000S) | |||||||||||
PIMCO Real Return Asset Fund | 149,242 | $ | 1,285 | |||||||||
PIMCO Real Return Fund | 65,580 | 725 | ||||||||||
PIMCO Total Return Fund | 55,052 | 565 | ||||||||||
|
| |||||||||||
Total Mutual Funds (Cost $9,127) | 9,247 | |||||||||||
|
| |||||||||||
SHORT-TERM INSTRUMENTS 5.9% | ||||||||||||
CENTRAL FUNDS USED FOR CASH MANAGEMENT PURPOSES 5.9% | ||||||||||||
PIMCO Short-Term Floating NAV Portfolio III | 377,765 | 3,734 | ||||||||||
|
| |||||||||||
Total Short-Term Instruments (Cost $3,734) | 3,734 | |||||||||||
|
| |||||||||||
Total Investments in Affiliates (Cost $12,861) | 12,981 | |||||||||||
Total Investments 98.8% (Cost $57,255) | $ | 62,239 | ||||||||||
Financial Derivative (Cost or Premiums, net $0) | 52 | |||||||||||
Other Assets and Liabilities, net 1.1% | 686 | |||||||||||
|
| |||||||||||
Net Assets 100.0% | $ | 62,977 | ||||||||||
|
|
NOTES TO SCHEDULE OF INVESTMENTS (AMOUNTS IN THOUSANDS*, EXCEPT NUMBER OF 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: OVER THE COUNTER
SWAP AGREEMENTS:
TOTAL RETURN SWAPS ON COMMODITY AND EQUITY INDICES
Counterparty | Pay/Receive(1) | Underlying Reference | # of Units | Financing Rate | Payment | Maturity | Notional | Premiums Paid/(Received) | Unrealized Appreciation/ (Depreciation) | Swap Agreements, at Value | ||||||||||||||||||||||||
Asset | Liability | |||||||||||||||||||||||||||||||||
BPS | Receive | DWRTFT Index | 51 | 1-Month USD-LIBOR plus a specified spread | Monthly | 11/07/2018 | $ | 502 | $ | 0 | $ | (5 | ) | $ | 0 | $ | (5 | ) | ||||||||||||||||
CBK | Receive | BCOMTR Index | 7,159 | 3-Month U.S. Treasury Bill rate plus a specified spread | Monthly | 02/15/2018 | 1,227 | 0 | 60 | 60 | 0 | |||||||||||||||||||||||
GST | Receive | DWRTFT Index | 256 | 1-Month USD-LIBOR plus a specified spread | Monthly | 04/11/2018 | 2,494 | 0 | (3 | ) | 0 | (3 | ) | |||||||||||||||||||||
|
|
|
|
|
|
|
| |||||||||||||||||||||||||||
$ | 0 | $ | 52 | $ | 60 | $ | (8 | ) | ||||||||||||||||||||||||||
|
|
|
|
|
|
|
| |||||||||||||||||||||||||||
Total Swap Agreements | $ | 0 | $ | 52 | $ | 60 | $ | (8 | ) | |||||||||||||||||||||||||
|
|
|
|
|
|
|
|
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 pledged/(received) as of December 31, 2017:
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 Pledged/ (Received) | Net Exposure(2) | |||||||||||||||||||||||||||||||||||||
BPS | $ | 0 | $ | 0 | $ | 0 | $ | 0 | $ | 0 | $ | 0 | $ | (5 | ) | $ | (5 | ) | $ | (5 | ) | $ | 0 | $ | (5 | ) | ||||||||||||||||||||||
CBK | 0 | 0 | 60 | 60 | 0 | 0 | 0 | 0 | 60 | 0 | 60 | |||||||||||||||||||||||||||||||||||||
GST | 0 | 0 | 0 | 0 | 0 | 0 | (3 | ) | (3 | ) | (3 | ) | 0 | (3 | ) | |||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||||||||||||||||||
Total Over the Counter | $ | 0 | $ | 0 | $ | 60 | $ | 60 | $ | 0 | $ | 0 | $ | (8 | ) | $ | (8 | ) | ||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(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. |
See Accompanying Notes | SEMIANNUAL REPORT | DECEMBER 31, 2017 | 57 |
Table of Contents
Schedule of Investments PIMCO REALPATH® Blend 2050 Fund (Cont.)
December 31, 2017 (Unaudited)
(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 7, Master Netting Arrangements, 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 December 31, 2017:
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 |
| |||||||||||||||||||||||
Swap Agreements | $ | 60 | $ | 0 | $ | 0 | $ | 0 | $ | 0 | $ | 60 | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Financial Derivative Instruments - Liabilities |
| |||||||||||||||||||||||
Over the counter |
| |||||||||||||||||||||||
Swap Agreements | $ | 0 | $ | 0 | $ | 8 | $ | 0 | $ | 0 | $ | 8 | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
The effect of Financial Derivative Instruments on the Statements of Operations for the period ended December 31, 2017:
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 | $ | (10 | ) | $ | 0 | $ | 0 | $ | (10 | ) | ||||||||||
Written Options | 0 | 0 | 8 | 0 | 0 | 8 | ||||||||||||||||||
Futures | 0 | 0 | 2 | 0 | 0 | 2 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
$ | 0 | $ | 0 | $ | 0 | $ | 0 | $ | 0 | $ | 0 | |||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Over the counter |
| |||||||||||||||||||||||
Swap Agreements | $ | 33 | $ | 0 | $ | 101 | $ | 0 | $ | 0 | $ | 134 | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
$ | 33 | $ | 0 | $ | 101 | $ | 0 | $ | 0 | $ | 134 | |||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
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 | $ | 42 | $ | 0 | $ | (57 | ) | $ | 0 | $ | 0 | $ | (15 | ) | ||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
$ | 42 | $ | 0 | $ | (55 | ) | $ | 0 | $ | 0 | $ | (13 | ) | |||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
FAIR VALUE MEASUREMENTS
The following is a summary of the fair valuations according to the inputs used as of December 31, 2017 in valuing the Fund’s assets and liabilities:
Category and Subcategory | Level 1 | Level 2 | Level 3 | Fair Value at 12/31/2017 | ||||||||||||
Investments in Securities, at Value |
| |||||||||||||||
Mutual Funds | $ | 49,258 | $ | 0 | $ | 0 | $ | 49,258 | ||||||||
|
|
|
|
|
|
|
| |||||||||
$ | 49,258 | $ | 0 | $ | 0 | $ | 49,258 | |||||||||
|
|
|
|
|
|
|
| |||||||||
Investments in Affiliates, at Value |
| |||||||||||||||
Mutual Funds | 9,247 | 0 | 0 | 9,247 | ||||||||||||
Short-Term Instruments |
| |||||||||||||||
Central Funds Used for Cash Management Purposes | 3,734 | 0 | 0 | 3,734 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
$ | 12,981 | $ | 0 | $ | 0 | $ | 12,981 | |||||||||
|
|
|
|
|
|
|
| |||||||||
Total Investments | $ | 62,239 | $ | 0 | $ | 0 | $ | 62,239 | ||||||||
|
|
|
|
|
|
|
|
Category and Subcategory | Level 1 | Level 2 | Level 3 | Fair Value at 12/31/2017 | ||||||||||||
Financial Derivative Instruments - Assets |
| |||||||||||||||
Over the counter | $ | 0 | $ | 60 | $ | 0 | $ | 60 | ||||||||
|
|
|
|
|
|
|
| |||||||||
Financial Derivative Instruments - Liabilities |
| |||||||||||||||
Over the counter | $ | 0 | $ | (8 | ) | $ | 0 | $ | (8 | ) | ||||||
|
|
|
|
|
|
|
| |||||||||
Total Financial Derivative Instruments | $ | 0 | $ | 52 | $ | 0 | $ | 52 | ||||||||
|
|
|
|
|
|
|
| |||||||||
Totals | $ | 62,239 | $ | 52 | $ | 0 | $ | 62,291 | ||||||||
|
|
|
|
|
|
|
|
There were no significant transfers among Levels 1, 2, or 3 during the period ended December 31, 2017.
58 | PIMCO EQUITY SERIES | See Accompanying Notes |
Table of Contents
Schedule of Investments PIMCO REALPATH® Blend 2055 Fund
December 31, 2017 (Unaudited)
SHARES | MARKET VALUE (000S) | |||||||||
INVESTMENTS IN SECURITIES 77.8% | ||||||||||
MUTUAL FUNDS 77.8% | ||||||||||
Vanguard 500 Index Fund ‘Admiral’ | 17,437 | $ | 4,304 | |||||||
Vanguard Developed Markets Index Fund ‘Admiral’ | 154,187 | 2,222 | ||||||||
Vanguard Emerging Markets Stock Index Fund ‘Admiral’ | 24,780 | 946 | ||||||||
Vanguard Small-Cap Index Fund ‘Admiral’ | 7,154 | 506 | ||||||||
|
| |||||||||
Total Mutual Funds (Cost $6,836) | 7,978 | |||||||||
|
| |||||||||
Total Investments in Securities (Cost $6,836) | 7,978 | |||||||||
|
| |||||||||
INVESTMENTS IN AFFILIATES 20.0% | ||||||||||
MUTUAL FUNDS (a) 14.1% | ||||||||||
PIMCO Emerging Local Bond Fund | 18,251 | 138 | ||||||||
PIMCO Foreign Bond Fund (U.S. Dollar-Hedged) | 6,084 | 65 | ||||||||
PIMCO High Yield Fund | 31,197 | 279 | ||||||||
PIMCO Income Fund | 29,791 | 370 | ||||||||
PIMCO Long Duration Total Return Fund | 8,408 | 93 | ||||||||
PIMCO Long-Term Credit Fund | 7,515 | 93 | ||||||||
SHARES | MARKET VALUE (000S) | |||||||||
PIMCO Real Return Asset Fund | 23,835 | $ | 205 | |||||||
PIMCO Real Return Fund | 9,866 | 109 | ||||||||
PIMCO Total Return Fund | 8,849 | 91 | ||||||||
|
| |||||||||
Total Mutual Funds (Cost $1,414) | 1,443 | |||||||||
|
| |||||||||
SHORT-TERM INSTRUMENTS 5.9% | ||||||||||
CENTRAL FUNDS USED FOR CASH MANAGEMENT PURPOSES 5.9% | ||||||||||
PIMCO Short-Term | 61,492 | 608 | ||||||||
|
| |||||||||
Total Short-Term Instruments (Cost $608) | 608 | |||||||||
|
| |||||||||
Total Investments in Affiliates (Cost $2,022) | 2,051 | |||||||||
Total Investments 97.8% (Cost $8,858) | $ | 10,029 | ||||||||
Financial Derivative (Cost or Premiums, net $0) | 8 | |||||||||
Other Assets and Liabilities, net 2.1% | 219 | |||||||||
|
| |||||||||
Net Assets 100.0% | $ | 10,256 | ||||||||
|
|
NOTES TO SCHEDULE OF INVESTMENTS (AMOUNTS IN THOUSANDS*, EXCEPT NUMBER OF 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: OVER THE COUNTER
SWAP AGREEMENTS:
TOTAL RETURN SWAPS ON COMMODITY AND EQUITY INDICES
Counterparty | Pay/Receive(1) | Underlying | # of Units | Financing Rate | Payment | Maturity | Notional | Premiums | Unrealized Appreciation/ (Depreciation) | Swap Agreements, at Value | ||||||||||||||||||||||||||
Asset | Liability | |||||||||||||||||||||||||||||||||||
CBK | Receive | BCOMTR Index | 1,098 | 3-Month U.S. Treasury Bill rate plus a specified spread | Monthly | 02/15/2018 | $ | 188 | $ | 0 | $ | 9 | $ | 9 | $ | 0 | ||||||||||||||||||||
GST | Receive | DWRTFT Index | 50 | 1-Month USD-LIBOR plus a specified spread | Monthly | 04/11/2018 | 487 | 0 | (1 | ) | 0 | (1 | ) | |||||||||||||||||||||||
|
|
|
|
|
|
|
| |||||||||||||||||||||||||||||
$ | 0 | $ | 8 | $ | 9 | $ | (1 | ) | ||||||||||||||||||||||||||||
|
|
|
|
|
|
|
| |||||||||||||||||||||||||||||
Total Swap Agreements |
| $ | 0 | $ | 8 | $ | 9 | $ | (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 pledged/(received) as of December 31, 2017:
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 Pledged/ (Received) | Net Exposure(2) | |||||||||||||||||||||||||||||||||||||
CBK | $ | 0 | $ | 0 | $ | 9 | $ | 9 | $ | 0 | $ | 0 | $ | 0 | $ | 0 | $ | 9 | $ | 0 | $ | 9 | ||||||||||||||||||||||||||
GST | 0 | 0 | 0 | 0 | 0 | 0 | (1 | ) | (1 | ) | (1 | ) | 0 | (1 | ) | |||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||||||||||||||||||
Total Over the Counter | $ | 0 | $ | 0 | $ | 9 | $ | 9 | $ | 0 | $ | 0 | $ | (1 | ) | $ | (1 | ) | ||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(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. |
See Accompanying Notes | SEMIANNUAL REPORT | DECEMBER 31, 2017 | 59 |
Table of Contents
Schedule of Investments PIMCO REALPATH® Blend 2055 Fund (Cont.)
December 31, 2017 (Unaudited)
(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 7, Master Netting Arrangements, 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 December 31, 2017:
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 |
| |||||||||||||||||||||||
Swap Agreements | $ | 9 | $ | 0 | $ | 0 | $ | 0 | $ | 0 | $ | 9 | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Financial Derivative Instruments - Liabilities |
| |||||||||||||||||||||||
Over the counter |
| |||||||||||||||||||||||
Swap Agreements | $ | 0 | $ | 0 | $ | 1 | $ | 0 | $ | 0 | $ | 1 | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
The effect of Financial Derivative Instruments on the Statements of Operations for the period ended December 31, 2017:
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 | $ | (10 | ) | $ | 0 | $ | 0 | $ | (10 | ) | ||||||||||
Written Options | 0 | 0 | 7 | 0 | 0 | 7 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
$ | 0 | $ | 0 | $ | (3 | ) | $ | 0 | $ | 0 | $ | (3 | ) | |||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Over the counter |
| |||||||||||||||||||||||
Swap Agreements | $ | 6 | $ | 0 | $ | 16 | $ | 0 | $ | 0 | $ | 22 | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
$ | 6 | $ | 0 | $ | 13 | $ | 0 | $ | 0 | $ | 19 | |||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
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 | $ | 5 | $ | 0 | $ | (9 | ) | $ | 0 | $ | 0 | $ | (4 | ) | ||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
$ | 5 | $ | 0 | $ | (7 | ) | $ | 0 | $ | 0 | $ | (2 | ) | |||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
FAIR VALUE MEASUREMENTS
The following is a summary of the fair valuations according to the inputs used as of December 31, 2017 in valuing the Fund’s assets and liabilities:
Category and Subcategory | Level 1 | Level 2 | Level 3 | Fair Value at 12/31/2017 | ||||||||||||
Investments in Securities, at Value |
| |||||||||||||||
Mutual Funds | $ | 7,978 | $ | 0 | $ | 0 | $ | 7,978 | ||||||||
|
|
|
|
|
|
|
| |||||||||
$ | 7,978 | $ | 0 | $ | 0 | $ | 7,978 | |||||||||
|
|
|
|
|
|
|
| |||||||||
Investments in Affiliates, at Value |
| |||||||||||||||
Mutual Funds | 1,443 | 0 | 0 | 1,443 | ||||||||||||
Short-Term Instruments |
| |||||||||||||||
Central Funds Used for Cash Management Purposes | 608 | 0 | 0 | 608 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
$ | 2,051 | $ | 0 | $ | 0 | $ | 2,051 | |||||||||
|
|
|
|
|
|
|
| |||||||||
Total Investments | $ | 10,029 | $ | 0 | $ | 0 | $ | 10,029 | ||||||||
|
|
|
|
|
|
|
|
Category and Subcategory | Level 1 | Level 2 | Level 3 | Fair Value at 12/31/2017 | ||||||||||||
Financial Derivative Instruments - Assets |
| |||||||||||||||
Over the counter | $ | 0 | $ | 9 | $ | 0 | $ | 9 | ||||||||
|
|
|
|
|
|
|
| |||||||||
Financial Derivative Instruments - Liabilities |
| |||||||||||||||
Over the counter | $ | 0 | $ | (1 | ) | $ | 0 | $ | (1 | ) | ||||||
|
|
|
|
|
|
|
| |||||||||
Total Financial Derivative Instruments | $ | 0 | $ | 8 | $ | 0 | $ | 8 | ||||||||
|
|
|
|
|
|
|
| |||||||||
Totals | $ | 10,029 | $ | 8 | $ | 0 | $ | 10,037 | ||||||||
|
|
|
|
|
|
|
|
There were no significant transfers among Levels 1, 2, or 3 during the period ended December 31, 2017.
60 | PIMCO EQUITY SERIES | See Accompanying Notes |
Table of Contents
Schedule of Investments PIMCO REALPATH® Blend Income Fund
December 31, 2017 (Unaudited)
SHARES | MARKET VALUE (000S) | |||||||||
INVESTMENTS IN SECURITIES 41.2% | ||||||||||
MUTUAL FUNDS 39.9% | ||||||||||
Vanguard 500 Index Fund ‘Admiral’ | 19,760 | $ | 4,877 | |||||||
Vanguard Developed Markets Index Fund ‘Admiral’ | 181,009 | 2,608 | ||||||||
Vanguard Emerging Markets Stock Index Fund ‘Admiral’ | 26,882 | 1,027 | ||||||||
Vanguard Small-Cap Index Fund ‘Admiral’ | 8,022 | 568 | ||||||||
|
| |||||||||
Total Mutual Funds (Cost $8,455) | 9,080 | |||||||||
|
| |||||||||
PRINCIPAL AMOUNT (000S) | ||||||||||
SHORT-TERM INSTRUMENTS 1.3% | ||||||||||
U.S. TREASURY BILLS 1.3% | ||||||||||
1.266% due 03/01/2018 (a)(b) | $ | 300 | 299 | |||||||
|
| |||||||||
Total Short-Term Instruments (Cost $299) | 299 | |||||||||
|
| |||||||||
Total Investments in Securities (Cost $8,754) | 9,379 | |||||||||
|
| |||||||||
SHARES | ||||||||||
INVESTMENTS IN AFFILIATES 57.8% | ||||||||||
MUTUAL FUNDS (c) 55.6% | ||||||||||
PIMCO Emerging Local Bond Fund | 76,320 | 577 | ||||||||
PIMCO Foreign Bond Fund | 130,454 | 1,392 | ||||||||
PIMCO High Yield Fund | 126,971 | 1,138 |
SHARES | MARKET VALUE (000S) | |||||||||
PIMCO Income Fund | 246,320 | $ | 3,057 | |||||||
PIMCO Long Duration Total Return Fund | 49,553 | 545 | ||||||||
PIMCO Long-Term Credit Fund | 44,276 | 547 | ||||||||
PIMCO Real Return Asset Fund | 142,153 | 1,224 | ||||||||
PIMCO Real Return Fund | 204,924 | 2,266 | ||||||||
PIMCO Total Return Fund | 187,142 | 1,922 | ||||||||
|
| |||||||||
Total Mutual Funds (Cost $12,552) | 12,668 | |||||||||
|
| |||||||||
SHORT-TERM INSTRUMENTS 2.2% | ||||||||||
CENTRAL FUNDS USED FOR CASH MANAGEMENT PURPOSES 2.2% | ||||||||||
PIMCO Short-Term | 51,664 | 511 | ||||||||
|
| |||||||||
Total Short-Term Instruments (Cost $511) | 511 | |||||||||
|
| |||||||||
Total Investments in Affiliates (Cost $13,063) | 13,179 | |||||||||
Total Investments 99.0% (Cost $21,817) | $ | 22,558 | ||||||||
Financial Derivative (Cost or Premiums, net $22) | 28 | |||||||||
Other Assets and Liabilities, net 0.9% | 196 | |||||||||
|
| |||||||||
Net Assets 100.0% | $ | 22,782 | ||||||||
|
|
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) | Zero coupon security. |
(b) | Coupon represents a yield to maturity. |
(c) | Institutional Class Shares of each Fund. |
(d) FINANCIAL DERIVATIVE INSTRUMENTS: EXCHANGE-TRADED OR CENTRALLY CLEARED
PURCHASED OPTIONS:
OPTIONS ON INDICES
Description | Strike Value | Expiration Date | # of Contracts | Notional Amount | Cost | Market Value | ||||||||||||||||||
Put - CBOE S&P 500 | 2,000.000 | 06/15/2018 | 4 | 400 | $ | 16 | $ | 3 | ||||||||||||||||
Put - CBOE S&P 500 | 1,950.000 | 09/21/2018 | 2 | 200 | 6 | 3 | ||||||||||||||||||
Put - CBOE S&P 500 | 2,075.000 | 09/21/2018 | 2 | 200 | 9 | 4 | ||||||||||||||||||
|
|
|
| |||||||||||||||||||||
$ | 31 | $ | 10 | |||||||||||||||||||||
|
|
|
| |||||||||||||||||||||
Total Purchased Options |
| $ | 31 | $ | 10 | |||||||||||||||||||
|
|
|
|
WRITTEN OPTIONS:
OPTIONS ON INDICES
Description | Strike Value | Expiration Date | # of Contracts | Notional Amount | Premiums (Received) | Market Value | ||||||||||||||||||
Put - CBOE S&P 500 | 1,675.000 | 06/15/2018 | 4 | 400 | $ | (6 | ) | $ | (1 | ) | ||||||||||||||
Put - CBOE S&P 500 | 1,725.000 | 09/21/2018 | 2 | 200 | (3 | ) | (1 | ) | ||||||||||||||||
|
|
|
| |||||||||||||||||||||
$ | (9 | ) | $ | (2 | ) | |||||||||||||||||||
|
|
|
| |||||||||||||||||||||
Total Written Options |
| $ | (9 | ) | $ | (2 | ) | |||||||||||||||||
|
|
|
|
See Accompanying Notes | SEMIANNUAL REPORT | DECEMBER 31, 2017 | 61 |
Table of Contents
Schedule of Investments PIMCO REALPATH® Blend Income Fund (Cont.)
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 December 31, 2017:
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 | $ | (2 | ) | $ | 0 | $ | 0 | $ | (2 | ) | ||||||||||||||||||
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(e) FINANCIAL DERIVATIVE INSTRUMENTS: OVER THE COUNTER
SWAP AGREEMENTS:
TOTAL RETURN SWAPS ON COMMODITY AND EQUITY INDICES
Counterparty | Pay/Receive(1) | Underlying | # of Units | Financing Rate | Payment | Maturity | Notional | Premiums | Unrealized Appreciation/ (Depreciation) | Swap Agreements, at Value | ||||||||||||||||||||||||||
Asset | Liability | |||||||||||||||||||||||||||||||||||
BPS | Receive | DWRTFT Index | 17 | 1-Month USD-LIBOR plus a specified spread | Monthly | 11/07/2018 | $ | 167 | $ | 0 | $ | (2 | ) | $ | 0 | $ | (2 | ) | ||||||||||||||||||
CBK | Receive | BCOMTR Index | 2,593 | 3-Month U.S. Treasury Bill rate plus a specified spread | Monthly | 02/15/2018 | 445 | 0 | 21 | 21 | 0 | |||||||||||||||||||||||||
GST | Receive | DWRTFT Index | 21 | 1-Month USD-LIBOR plus a specified spread | Monthly | 04/11/2018 | 204 | 0 | 0 | 0 | 0 | |||||||||||||||||||||||||
MYI | Receive | DWRTFT Index | 20 | 1-Month USD-LIBOR plus a specified spread | Monthly | 09/12/2018 | 194 | 0 | 1 | 1 | 0 | |||||||||||||||||||||||||
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| |||||||||||||||||||||||||||||
$ | 0 | $ | 20 | $ | 22 | $ | (2 | ) | ||||||||||||||||||||||||||||
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Total Swap Agreements |
| $ | 0 | $ | 20 | $ | 22 | $ | (2 | ) | ||||||||||||||||||||||||||
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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 pledged/(received) as of December 31, 2017:
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 Pledged/ (Received) | Net Exposure(2) | |||||||||||||||||||||||||||||||||||||
BPS | $ | 0 | $ | 0 | $ | 0 | $ | 0 | $ | 0 | $ | 0 | $ | (2 | ) | $ | (2 | ) | $ | (2 | ) | $ | 0 | $ | (2 | ) | ||||||||||||||||||||||
CBK | 0 | 0 | 21 | 21 | 0 | 0 | 0 | 0 | 21 | 0 | 21 | |||||||||||||||||||||||||||||||||||||
MYI | 0 | 0 | 1 | 1 | 0 | 0 | 0 | 0 | 1 | 0 | 1 | |||||||||||||||||||||||||||||||||||||
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| |||||||||||||||||||||||||||||||||
Total Over the Counter | $ | 0 | $ | 0 | $ | 22 | $ | 22 | $ | 0 | $ | 0 | $ | (2 | ) | $ | (2 | ) | ||||||||||||||||||||||||||||||
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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. |
(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 7, Master Netting Arrangements, 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 December 31, 2017:
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 | $ | 21 | $ | 0 | $ | 1 | $ | 0 | $ | 0 | $ | 22 | ||||||||||||
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| |||||||||||||
$ | 21 | $ | 0 | $ | 11 | $ | 0 | $ | 0 | $ | 32 | |||||||||||||
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62 | PIMCO EQUITY SERIES | See Accompanying Notes |
Table of Contents
December 31, 2017 (Unaudited)
Derivatives not accounted for as hedging instruments | ||||||||||||||||||||||||
Commodity Contracts | Credit Contracts | Equity Contracts | Foreign Exchange Contracts | Interest Rate Contracts | Total | |||||||||||||||||||
Financial Derivative Instruments - Liabilities |
| |||||||||||||||||||||||
Exchange-traded or centrally cleared |
| |||||||||||||||||||||||
Written Options | $ | 0 | $ | 0 | $ | 2 | $ | 0 | $ | 0 | $ | 2 | ||||||||||||
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| |||||||||||||
Over the counter |
| |||||||||||||||||||||||
Swap Agreements | $ | 0 | $ | 0 | $ | 2 | $ | 0 | $ | 0 | $ | 2 | ||||||||||||
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$ | 0 | $ | 0 | $ | 4 | $ | 0 | $ | 0 | $ | 4 | |||||||||||||
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The effect of Financial Derivative Instruments on the Statements of Operations for the period ended December 31, 2017:
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 | $ | (7 | ) | $ | 0 | $ | 0 | $ | (7 | ) | ||||||||||
Written Options | 0 | 0 | 1 | 0 | 0 | 1 | ||||||||||||||||||
Futures | 0 | 0 | (13 | ) | 0 | (1 | ) | (14 | ) | |||||||||||||||
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| |||||||||||||
$ | 0 | $ | 0 | $ | (19 | ) | $ | 0 | $ | (1 | ) | $ | (20 | ) | ||||||||||
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| |||||||||||||
Over the counter |
| |||||||||||||||||||||||
Swap Agreements | $ | 2 | $ | 0 | $ | 10 | $ | 0 | $ | 0 | $ | 12 | ||||||||||||
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| |||||||||||||
$ | 2 | $ | 0 | $ | (9 | ) | $ | 0 | $ | (1 | ) | $ | (8 | ) | ||||||||||
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Net Change in Unrealized Appreciation (Depreciation) on Financial Derivative Instruments |
| |||||||||||||||||||||||
Exchange-traded or centrally cleared |
| |||||||||||||||||||||||
Purchased Options | $ | 0 | $ | 0 | $ | (14 | ) | $ | 0 | $ | 0 | $ | (14 | ) | ||||||||||
Written Options | 0 | 0 | 5 | 0 | 0 | 5 | ||||||||||||||||||
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| |||||||||||||
$ | 0 | $ | 0 | $ | (9 | ) | $ | 0 | $ | 0 | $ | (9 | ) | |||||||||||
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| |||||||||||||
Over the counter |
| |||||||||||||||||||||||
Swap Agreements | $ | 19 | $ | 0 | $ | (6 | ) | $ | 0 | $ | 0 | $ | 13 | |||||||||||
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$ | 19 | $ | 0 | $ | (15 | ) | $ | 0 | $ | 0 | $ | 4 | ||||||||||||
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FAIR VALUE MEASUREMENTS
The following is a summary of the fair valuations according to the inputs used as of December 31, 2017 in valuing the Fund’s assets and liabilities:
Category and Subcategory | Level 1 | Level 2 | Level 3 | Fair Value at 12/31/2017 | ||||||||||||
Investments in Securities, at Value |
| |||||||||||||||
Mutual Funds | $ | 9,080 | $ | 0 | $ | 0 | $ | 9,080 | ||||||||
Short-Term Instruments |
| |||||||||||||||
U.S. Treasury Bills | 0 | 299 | 0 | 299 | ||||||||||||
|
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|
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|
| |||||||||
$ | 9,080 | $ | 299 | $ | 0 | $ | 9,379 | |||||||||
Investments in Affiliates, at Value |
| |||||||||||||||
Mutual Funds | 12,668 | 0 | 0 | 12,668 | ||||||||||||
Short-Term Instruments |
| |||||||||||||||
Central Funds Used for Cash Management Purposes | 511 | 0 | 0 | 511 | ||||||||||||
|
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|
|
|
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| |||||||||
$ | 13,179 | $ | 0 | $ | 0 | $ | 13,179 | |||||||||
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|
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| |||||||||
Total Investments | $ | 22,259 | $ | 299 | $ | 0 | $ | 22,558 | ||||||||
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Category and Subcategory | Level 1 | Level 2 | Level 3 | Fair Value at 12/31/2017 | ||||||||||||
Financial Derivative Instruments - Assets |
| |||||||||||||||
Exchange-traded or centrally cleared | $ | 0 | $ | 10 | $ | 0 | $ | 10 | ||||||||
Over the counter | 0 | 22 | 0 | 22 | ||||||||||||
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| |||||||||
$ | 0 | $ | 32 | $ | 0 | $ | 32 | |||||||||
|
|
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|
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|
|
| |||||||||
Financial Derivative Instruments - Liabilities |
| |||||||||||||||
Exchange-traded or centrally cleared | 0 | (2 | ) | 0 | (2 | ) | ||||||||||
Over the counter | 0 | (2 | ) | 0 | (2 | ) | ||||||||||
|
|
|
|
|
|
|
| |||||||||
$ | 0 | $ | (4 | ) | $ | 0 | $ | (4 | ) | |||||||
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| |||||||||
Total Financial Derivative Instruments | $ | 0 | $ | 28 | $ | 0 | $ | 28 | ||||||||
|
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|
|
|
|
| |||||||||
Totals | $ | 22,259 | $ | 327 | $ | 0 | $ | 22,586 | ||||||||
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|
There were no significant transfers among Levels 1, 2, or 3 during the period ended December 31, 2017.
See Accompanying Notes | SEMIANNUAL REPORT | DECEMBER 31, 2017 | 63 |
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, 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. Each Fund may invest 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”).
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 beyond a standard settlement period for the security after the trade date. Realized gains (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 a 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, with the exception of securities with a forward starting effective date, where interest income is recorded on the accrual basis from effective 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. Paydown gains (losses) on mortgage-related and other asset-backed securities, if any, are recorded as components of interest income on the Statements of Operations. Income or short-term capital gain distributions received from registered investment companies, if any, are recorded as dividend income. Long-term capital gain distributions received from registered investment companies, if any, are recorded as realized gains.
(b) 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 net assets. Realized and unrealized capital gains (losses) are allocated daily based on the relative net assets of each class of the respective Fund. Class specific expenses, where applicable, currently include supervisory and administrative and distribution and servicing fees. Under certain circumstances, the per share net asset value (“NAV”) of a class of the respective 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.
(c) Distributions to Shareholders The following table shows the anticipated frequency of distributions from net investment income, if any, for each Fund.
Distribution Frequency | ||||||||||||
Fund Name | Declared | Distributed | ||||||||||
PIMCO REALPATH® Blend 2020 Fund | Quarterly | Quarterly | ||||||||||
PIMCO REALPATH® Blend 2025 Fund | Quarterly | Quarterly | ||||||||||
PIMCO REALPATH® Blend 2030 Fund | Quarterly | Quarterly | ||||||||||
PIMCO REALPATH® Blend 2035 Fund | Quarterly | Quarterly | ||||||||||
PIMCO REALPATH® Blend 2040 Fund | Quarterly | Quarterly | ||||||||||
PIMCO REALPATH® Blend 2045 Fund | Quarterly | Quarterly | ||||||||||
PIMCO REALPATH® Blend 2050 Fund | Quarterly | Quarterly | ||||||||||
PIMCO REALPATH® Blend 2055 Fund | Quarterly | Quarterly | ||||||||||
PIMCO REALPATH® Blend Income Fund | Quarterly | Quarterly |
Net realized capital gains earned by each Fund, if any, will be distributed no less frequently than once each year.
Income distributions 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. Further, the character of investment income and capital gains may be different for certain transactions under the two methods of accounting. As a result, income distributions and capital gain distributions declared during a fiscal period may differ significantly from the net investment
64 | PIMCO EQUITY SERIES |
Table of Contents
December 31, 2017 (Unaudited)
income (loss) and realized gains (losses) reported on each Fund’s annual financial statements presented under U.S. GAAP.
If a Fund estimates that a portion of one of its dividend distributions may be comprised of amounts from sources other than net investment income in accordance with its policies and good accounting practices, the Fund will notify shareholders of record of the estimated composition of such distribution through a Section 19 Notice. For these purposes, a Fund estimates the source or sources from which a distribution is paid, to the close of the period as of which it is paid, in reference to its internal accounting records and related accounting practices. If, based on such accounting records and practices, it is estimated that a particular distribution does not include capital gains or paid-in surplus or other capital sources, a Section 19 Notice generally would not be issued. It is important to note that differences exist between a Fund’s daily internal accounting records and practices, a Fund’s financial statements presented in accordance with U.S. GAAP, and recordkeeping practices under income tax regulations. For instance, a Fund’s internal accounting records and practices may take into account, among other factors, tax-related characteristics of certain sources of distributions that differ from treatment under U.S. GAAP. Examples of such differences may include, among others, the treatment of paydowns on mortgage-backed securities purchased at a discount and periodic payments under interest rate swap contracts. Accordingly, among other consequences, it is possible that a Fund may not issue a Section 19 Notice in situations where the Fund’s financial statements prepared later and in accordance with U.S. GAAP and/or the final tax character of those distributions might later report that the sources of those distributions included capital gains and/or a return of capital. Please visit www.pimco.com for the most recent Section 19 Notice, if applicable, for additional information regarding the estimated composition of distributions. Final determination of a distribution’s tax character will be reported on Form 1099 DIV sent to shareholders for the calendar year.
Distributions classified as a tax basis return of capital, if any, are reflected on the 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 gain (loss) and/or paid in capital to more appropriately conform U.S. GAAP to tax characterizations of distributions.
(d) New Accounting Pronouncements In March 2016, the Financial Accounting Standards Board (“FASB”) issued an Accounting Standards Update (“ASU”), ASU 2016-05, which provides guidance related to the impact of derivative contract novations on certain relationships under Accounting Standards Codification (“ASC”) 815. The ASU is effective for annual periods beginning after December 15, 2016, and interim
periods within those annual periods. The Funds have adopted the ASU. The implementation of the ASU did not have an impact on the Funds’ financial statements.
In August 2016, the FASB issued ASU 2016-15 which amends ASC 230 to clarify guidance on the classification of certain cash receipts and cash payments in the Statement of Cash Flows. The ASU is effective for annual periods beginning after December 15, 2017, and interim periods within those annual periods. At this time, management is evaluating the implications of these changes on the financial statements.
In October 2016, the U.S. Securities and Exchange Commission (“SEC”) adopted new rules and forms, and amendments to certain current rules and forms, to modernize reporting and disclosure of information by registered investment companies. The amendments to Regulation S-X require standardized, enhanced disclosure about derivatives in investment company financial statements, and also change the rules governing the form and content of such financial statements. The compliance date for these amendments was August 1, 2017. Compliance is based on reporting period-end date. Management has adopted these amendments and the changes are incorporated in the financial statements.
In November 2016, the FASB issued ASU 2016-18 which amends ASC 230 to provide guidance on the classification and presentation of changes in restricted cash and restricted cash equivalents on the Statement of Cash Flows. The ASU is effective for annual periods beginning after December 15, 2017, and interim periods within those annual periods. At this time, management is evaluating the implications of these changes on the financial statements.
In March 2017, the FASB issued ASU 2017-08 which provides guidance related to the amortization period for certain purchased callable debt securities held at a premium. The ASU is effective for annual periods beginning after December 15, 2018, and interim periods within those annual periods. The Funds have adopted the ASU. The implementation of the ASU did not have an impact on the Funds’ 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, or each of its share classes, as applicable, is determined by dividing the total value of portfolio investments and other assets, less any liabilities attributable to that Fund or class, by the total number of shares outstanding of that Fund or class.
On each day that the New York Stock Exchange (“NYSE”) is open, Fund shares are ordinarily valued as of the close of regular trading (“NYSE Close”). Information that becomes known to the Funds or their
SEMIANNUAL REPORT | DECEMBER 31, 2017 | 65 |
Table of Contents
Notes to Financial Statements (Cont.)
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 as of which its respective NAV is calculated if the Fund closes earlier, or as permitted by the SEC.
For purposes of calculating a 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. If market value pricing is used, 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 Adviser 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. A Fund’s investments in open-end management investment companies, other than exchange-traded funds (“ETFs”), are valued at the NAVs of such investments. Open-end management investment companies may include affiliated funds.
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 of the Trust (the “Board”). 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, a 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, a 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 foreign (non-U.S.) securities. For these purposes, any movement in the applicable reference index or instrument (“zero trigger”) between the earlier close of the applicable foreign market and the NYSE Close may be deemed to be a significant event, prompting the application of the pricing model (effectively resulting in daily fair valuations). Foreign 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 shareholders 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 value of such investments and, in turn, 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 investments 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.) investments, the value of those investments may change at times when shareholders are unable to buy or sell shares and the value of such investments will be reflected in the Fund’s next calculated NAV.
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 or persons acting at their direction. The Board has
66 | PIMCO EQUITY SERIES |
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December 31, 2017 (Unaudited)
adopted methods for valuing securities and other assets in circumstances where market quotes are not readily available, and has delegated to the Adviser 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 (“Valuation Oversight Committee”), generally based on recommendations provided by the Adviser. The Adviser may consult with the Sub-Adviser or Parametric in providing such recommendations or otherwise with respect to valuation of the PIMCO Dividend and Income 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, indicative market quotations (“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 a 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 the Adviser the responsibility for monitoring significant events that may materially affect the values of a 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 a Fund (or, in each instance in this paragraph, as applicable, an Underlying PIMCO Fund or Acquired Fund) uses fair valuation to determine the value of a portfolio security or other asset for purposes of calculating its NAV, such investments 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 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 a 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 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 a 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 each Fund’s prospectus.
(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:
∎ | Level 1 — Quoted prices in active markets or exchanges for identical assets and liabilities. |
∎ | 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. |
∎ | 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 into 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 realized gain (loss), unrealized appreciation (depreciation), purchases and sales, accrued discounts (premiums), and transfers into and out of the Level 3 category during the period. The end of period value 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
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used in determining the fair values of portfolio securities or other assets and liabilities categorized as Level 1 and Level 2 of the fair value hierarchy are as follows:
Common stocks, ETFs, exchange-traded notes and financial derivative instruments, such as futures contracts, rights and warrants, 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 (other than ETFs) 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.
Equity exchange-traded options and over the counter financial derivative instruments, such as forward foreign currency contracts and options contracts derive their value from underlying asset prices, indices, reference rates, and other inputs or a combination of these factors. These contracts are normally valued on the basis of quotes obtained from a quotation reporting system, established market makers or Pricing Services (normally determined as of the NYSE Close). Depending on the product and the terms of the transaction, financial derivative instruments can be valued by Pricing Services 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 and over the counter swaps derive their value from underlying asset prices, indices, reference rates, and other inputs or a combination of these factors. They are valued using a
broker-dealer bid quotation or on market-based prices provided by Pricing Services (normally determined as of the NYSE close). Centrally cleared swaps and over the counter swaps can be valued by Pricing Services using a series of techniques, including simulation pricing models. The pricing models may use inputs that are observed from actively quoted markets such as the overnight index swap rate (“OIS”), London Interbank Offered Rate (“LIBOR”) forward rate, interest rates, yield curves and credit spreads. These securities 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 the Adviser that uses significant unobservable inputs, investments 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.
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 instruments is approximately the same as the fair value of the instrument as determined without the use of amortized cost valuation. These securities are categorized as Level 2 or Level 3 of the fair value hierarchy depending on the source of the base price.
4. SECURITIES AND OTHER INVESTMENTS
(a) Investments in Affiliates
Each Fund may invest substantially all of its assets in Underlying PIMCO Funds and Acquired Funds. The Underlying PIMCO Funds are considered to be affiliated with the Funds. Each Fund may also invest in the PIMCO Short Asset Portfolio and the 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 other series of registered investment companies advised by the Adviser, 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
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Advisory Fees or Supervisory and Administrative Fees to the Adviser. The Central Funds are considered to be affiliated with the Funds. The tables below show the Funds’ transactions in and earnings from investments in the affiliated Funds for the period ended December 31, 2017 (amounts in thousands†):
PIMCO REALPATH® Blend 2020 Fund | ||||||||||||||||||||||||||||||||||||
Underlying PIMCO Funds | Market Value 06/30/2017 | Purchases at Cost | Proceeds from Sales | Net Realized Gain (Loss) | Change in Unrealized Appreciation (Depreciation) | Market Value 12/31/2017 | Dividend Income(1) | Realized Net Capital Gain Distributions(1) | ||||||||||||||||||||||||||||
PIMCO Emerging Local Bond Fund | $ | 239 | $ | 333 | $ | (36 | ) | $ | (1 | ) | $ | 6 | $ | 541 | $ | 9 | $ | 0 | ||||||||||||||||||
PIMCO Foreign Bond Fund (U.S. Dollar-Hedged) | 482 | 813 | (107 | ) | 0 | 3 | 1,191 | 7 | 0 | |||||||||||||||||||||||||||
PIMCO High Yield Fund | 478 | 745 | (127 | ) | 0 | (3 | ) | 1,093 | 15 | 0 | ||||||||||||||||||||||||||
PIMCO Income Fund | 1,262 | 1,968 | (331 | ) | 0 | 3 | 2,902 | 41 | 0 | |||||||||||||||||||||||||||
PIMCO Long Duration Total Return Fund | 350 | 503 | (145 | ) | (5 | ) | (7 | ) | 696 | 10 | 19 | |||||||||||||||||||||||||
PIMCO Long-Term Credit Fund | 351 | 470 | (135 | ) | 0 | 10 | 696 | 10 | 0 | |||||||||||||||||||||||||||
PIMCO Real Return Asset Fund | 706 | 1,039 | (324 | ) | 1 | 46 | 1,468 | 10 | 0 | |||||||||||||||||||||||||||
PIMCO Real Return Fund | 776 | 1,349 | (208 | ) | (1 | ) | 13 | 1,929 | 10 | 0 | ||||||||||||||||||||||||||
PIMCO Short-Term Floating NAV Portfolio III | 352 | 4,504 | (4,000 | ) | 0 | 0 | 856 | 4 | 0 | |||||||||||||||||||||||||||
PIMCO Total Return Fund | 778 | 1,228 | (205 | ) | (1 | ) | 4 | 1,804 | 11 | 0 | ||||||||||||||||||||||||||
Totals | $ | 5,774 | $ | 12,952 | $ | (5,618 | ) | $ | (7 | ) | $ | 75 | $ | 13,176 | $ | 127 | $ | 19 | ||||||||||||||||||
PIMCO REALPATH® Blend 2025 Fund | ||||||||||||||||||||||||||||||||||||
Underlying PIMCO Funds | Market Value 06/30/2017 | Purchases at Cost | Proceeds from Sales | Net Realized Gain (Loss) | Change in Unrealized Appreciation (Depreciation) | Market Value 12/31/2017 | Dividend Income(1) | Realized Net Capital Gain Distributions(1) | ||||||||||||||||||||||||||||
PIMCO Emerging Local Bond Fund | $ | 195 | $ | 429 | $ | (29 | ) | $ | (1 | ) | $ | 7 | $ | 601 | $ | 8 | $ | 0 | ||||||||||||||||||
PIMCO Foreign Bond Fund (U.S. Dollar-Hedged) | 215 | 580 | (33 | ) | 0 | 1 | 763 | 4 | 0 | |||||||||||||||||||||||||||
PIMCO High Yield Fund | 398 | 855 | (70 | ) | 0 | (4 | ) | 1,179 | 13 | 0 | ||||||||||||||||||||||||||
PIMCO Income Fund | 903 | 2,049 | (153 | ) | 0 | 1 | 2,800 | 33 | 0 | |||||||||||||||||||||||||||
PIMCO Long Duration Total Return Fund | 369 | 829 | (56 | ) | (1 | ) | (20 | ) | 1,121 | 12 | 27 | |||||||||||||||||||||||||
PIMCO Long-Term Credit Fund | 369 | 798 | (55 | ) | 0 | 11 | 1,123 | 12 | 0 | |||||||||||||||||||||||||||
PIMCO Real Return Asset Fund | 735 | 1,605 | (185 | ) | 0 | 55 | 2,210 | 10 | 0 | |||||||||||||||||||||||||||
PIMCO Real Return Fund | 356 | 932 | (54 | ) | 0 | 7 | 1,241 | 5 | 0 | |||||||||||||||||||||||||||
PIMCO Short-Term Floating NAV Portfolio III | 502 | 5,605 | (5,500 | ) | (1 | ) | 0 | 606 | 4 | 0 | ||||||||||||||||||||||||||
PIMCO Total Return Fund | 506 | 1,188 | (76 | ) | 0 | 3 | 1,621 | 8 | 0 | |||||||||||||||||||||||||||
Totals | $ | 4,548 | $ | 14,870 | $ | (6,211 | ) | $ | (3 | ) | $ | 61 | $ | 13,265 | $ | 109 | $ | 27 | ||||||||||||||||||
PIMCO REALPATH® Blend 2030 Fund | ||||||||||||||||||||||||||||||||||||
Underlying PIMCO Funds | Market Value 06/30/2017 | Purchases at Cost | Proceeds from Sales | Net Realized Gain (Loss) | Change in Unrealized Appreciation (Depreciation) | Market Value 12/31/2017 | Dividend Income(1) | Realized Net Capital Gain Distributions(1) | ||||||||||||||||||||||||||||
PIMCO Emerging Local Bond Fund | $ | 320 | $ | 338 | $ | 0 | $ | 0 | $ | 7 | $ | 665 | $ | 11 | $ | 0 | ||||||||||||||||||||
PIMCO Foreign Bond Fund (U.S. Dollar-Hedged) | 179 | 231 | 0 | 0 | 1 | 411 | 2 | 0 | ||||||||||||||||||||||||||||
PIMCO High Yield Fund | 636 | 675 | 0 | 0 | (4 | ) | 1,307 | 19 | 0 | |||||||||||||||||||||||||||
PIMCO Income Fund | 1,256 | 1,404 | (39 | ) | 0 | 4 | 2,625 | 40 | 0 | |||||||||||||||||||||||||||
PIMCO Long Duration Total Return Fund | 486 | 592 | 0 | 0 | (14 | ) | 1,064 | 13 | 24 | |||||||||||||||||||||||||||
PIMCO Long-Term Credit Fund | 486 | 565 | 0 | 0 | 13 | 1,064 | 14 | 0 | ||||||||||||||||||||||||||||
PIMCO Real Return Asset Fund | 948 | 1,157 | (32 | ) | 0 | 61 | 2,134 | 13 | 0 | |||||||||||||||||||||||||||
PIMCO Real Return Fund | 285 | 372 | 0 | 0 | 4 | 661 | 4 | 0 | ||||||||||||||||||||||||||||
PIMCO Short-Term Floating NAV Portfolio III | 812 | 4,108 | (3,400 | ) | (1 | ) | 0 | 1,519 | 7 | 0 | ||||||||||||||||||||||||||
PIMCO Total Return Fund | 614 | 694 | 0 | 0 | 3 | 1,311 | 9 | 0 | ||||||||||||||||||||||||||||
Totals | $ | 6,022 | $ | 10,136 | $ | (3,471 | ) | $ | (1 | ) | $ | 75 | $ | 12,761 | $ | 132 | $ | 24 |
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PIMCO REALPATH® Blend 2035 Fund | ||||||||||||||||||||||||||||||||||||
Underlying PIMCO Funds | Market Value 06/30/2017 | Purchases at Cost | Proceeds from Sales | Net Realized Gain (Loss) | Change in Unrealized Appreciation (Depreciation) | Market Value 12/31/2017 | Dividend Income(1) | Realized Net Capital Gain Distributions(1) | ||||||||||||||||||||||||||||
PIMCO Emerging Local Bond Fund | $ | 404 | $ | 275 | $ | 0 | $ | 0 | $ | 7 | $ | 686 | $ | 14 | $ | 0 | ||||||||||||||||||||
PIMCO Foreign Bond Fund (U.S. Dollar-Hedged) | 178 | 121 | 0 | 0 | 2 | 301 | 2 | 0 | ||||||||||||||||||||||||||||
PIMCO High Yield Fund | 802 | 551 | (38 | ) | 0 | (5 | ) | 1,310 | 22 | 0 | ||||||||||||||||||||||||||
PIMCO Income Fund | 1,370 | 1,105 | (88 | ) | 0 | 5 | 2,392 | 41 | 0 | |||||||||||||||||||||||||||
PIMCO Long Duration Total Return Fund | 463 | 319 | 0 | 0 | (8 | ) | 774 | 11 | 18 | |||||||||||||||||||||||||||
PIMCO Long-Term Credit Fund | 463 | 301 | 0 | 0 | 12 | 776 | 12 | 0 | ||||||||||||||||||||||||||||
PIMCO Real Return Asset Fund | 706 | 684 | (63 | ) | 0 | 42 | 1,369 | 9 | 0 | |||||||||||||||||||||||||||
PIMCO Real Return Fund | 282 | 200 | 0 | 0 | 4 | 486 | 4 | 0 | ||||||||||||||||||||||||||||
PIMCO Short-Term Floating NAV Portfolio III | 1,008 | 6,310 | (5,600 | ) | (1 | ) | 0 | 1,717 | 9 | 0 | ||||||||||||||||||||||||||
PIMCO Total Return Fund | 586 | 463 | 0 | 0 | 2 | 1,051 | 8 | 0 | ||||||||||||||||||||||||||||
Totals | $ | 6,262 | $ | 10,329 | $ | (5,789 | ) | $ | (1 | ) | $ | 61 | $ | 10,862 | $ | 132 | $ | 18 | ||||||||||||||||||
PIMCO REALPATH® Blend 2040 Fund | ||||||||||||||||||||||||||||||||||||
Underlying PIMCO Funds | Market Value 06/30/2017 | Purchases at Cost | Proceeds from Sales | Net Realized Gain (Loss) | Change in Unrealized Appreciation (Depreciation) | Market Value 12/31/2017 | Dividend Income(1) | Realized Net Capital Gain Distributions(1) | ||||||||||||||||||||||||||||
PIMCO Emerging Local Bond Fund | $ | 520 | $ | 157 | $ | 0 | $ | 0 | $ | 6 | $ | 683 | $ | 17 | $ | 0 | ||||||||||||||||||||
PIMCO Foreign Bond Fund (U.S. Dollar-Hedged) | 244 | 37 | 0 | 0 | 3 | 284 | 2 | 0 | ||||||||||||||||||||||||||||
PIMCO High Yield Fund | 1,034 | 348 | (34 | ) | 0 | (5 | ) | 1,343 | 27 | 0 | ||||||||||||||||||||||||||
PIMCO Income Fund | 1,619 | 630 | (93 | ) | 0 | 7 | 2,163 | 45 | 0 | |||||||||||||||||||||||||||
PIMCO Long Duration Total Return Fund | 520 | 156 | 0 | 0 | (4 | ) | 672 | 12 | 16 | |||||||||||||||||||||||||||
PIMCO Long-Term Credit Fund | 520 | 140 | 0 | 0 | 14 | 674 | 13 | 0 | ||||||||||||||||||||||||||||
PIMCO Real Return Asset Fund | 716 | 222 | 0 | 0 | 39 | 977 | 9 | 0 | ||||||||||||||||||||||||||||
PIMCO Real Return Fund | 380 | 123 | 0 | 0 | 4 | 507 | 5 | 0 | ||||||||||||||||||||||||||||
PIMCO Short-Term Floating NAV Portfolio III | 1,407 | 8,713 | (8,400 | ) | (1 | ) | 0 | 1,719 | 13 | 0 | ||||||||||||||||||||||||||
PIMCO Total Return Fund | 579 | 175 | 0 | 0 | 2 | 756 | 7 | 0 | ||||||||||||||||||||||||||||
Totals | $ | 7,539 | $ | 10,701 | $ | (8,527 | ) | $ | (1 | ) | $ | 66 | $ | 9,778 | $ | 150 | $ | 16 | ||||||||||||||||||
PIMCO REALPATH® Blend 2045 Fund | ||||||||||||||||||||||||||||||||||||
Underlying PIMCO Funds | Market Value 06/30/2017 | Purchases at Cost | Proceeds from Sales | Net Realized Gain (Loss) | Change in Unrealized Appreciation (Depreciation) | Market Value 12/31/2017 | Dividend Income(1) | Realized Net Capital Gain Distributions(1) | ||||||||||||||||||||||||||||
PIMCO Emerging Local Bond Fund | $ | 579 | $ | 170 | $ | 0 | $ | 0 | $ | 7 | $ | 756 | $ | 19 | $ | 0 | ||||||||||||||||||||
PIMCO Foreign Bond Fund (U.S. Dollar-Hedged) | 285 | 81 | 0 | 0 | 4 | 370 | 3 | 0 | ||||||||||||||||||||||||||||
PIMCO High Yield Fund | 1,150 | 342 | 0 | 0 | (6 | ) | 1,486 | 31 | 0 | |||||||||||||||||||||||||||
PIMCO Income Fund | 1,622 | 589 | 0 | 0 | 7 | 2,218 | 47 | 0 | ||||||||||||||||||||||||||||
PIMCO Long Duration Total Return Fund | 474 | 140 | 0 | 0 | (4 | ) | 610 | 10 | 14 | |||||||||||||||||||||||||||
PIMCO Long-Term Credit Fund | 474 | 125 | 0 | 0 | 13 | 612 | 12 | 0 | ||||||||||||||||||||||||||||
PIMCO Real Return Asset Fund | 821 | 245 | 0 | 0 | 46 | 1,112 | 11 | 0 | ||||||||||||||||||||||||||||
PIMCO Real Return Fund | 454 | 142 | 0 | 0 | 6 | 602 | 5 | 0 | ||||||||||||||||||||||||||||
PIMCO Short-Term Floating NAV Portfolio III | 2,508 | 6,121 | (6,100 | ) | (1 | ) | 0 | 2,528 | 20 | 0 | ||||||||||||||||||||||||||
PIMCO Total Return Fund | 466 | 212 | 0 | 0 | 2 | 680 | 6 | 0 | ||||||||||||||||||||||||||||
Totals | $ | 8,833 | $ | 8,167 | $ | (6,100 | ) | $ | (1 | ) | $ | 75 | $ | 10,974 | $ | 164 | $ | 14 |
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PIMCO REALPATH® Blend 2050 Fund | ||||||||||||||||||||||||||||||||||||
Underlying PIMCO Funds | Market Value 06/30/2017 | Purchases at Cost | Proceeds from Sales | Net Realized Gain (Loss) | Change in Unrealized Appreciation (Depreciation) | Market Value 12/31/2017 | Dividend Income(1) | Realized Net Capital Gain Distributions(1) | ||||||||||||||||||||||||||||
PIMCO Emerging Local Bond Fund | $ | 644 | $ | 240 | $ | 0 | $ | 0 | $ | 9 | $ | 893 | $ | 21 | $ | 0 | ||||||||||||||||||||
PIMCO Foreign Bond Fund (U.S. Dollar-Hedged) | 316 | 116 | 0 | 0 | 4 | 436 | 4 | 0 | ||||||||||||||||||||||||||||
PIMCO High Yield Fund | 1,280 | 481 | 0 | 0 | (7 | ) | 1,754 | 35 | 0 | |||||||||||||||||||||||||||
PIMCO Income Fund | 1,697 | 614 | 0 | 0 | 7 | 2,318 | 50 | 0 | ||||||||||||||||||||||||||||
PIMCO Long Duration Total Return Fund | 465 | 175 | 0 | 0 | (5 | ) | 635 | 11 | 15 | |||||||||||||||||||||||||||
PIMCO Long-Term Credit Fund | 465 | 159 | 0 | 0 | 12 | 636 | 12 | 0 | ||||||||||||||||||||||||||||
PIMCO Real Return Asset Fund | 893 | 342 | 0 | 0 | 50 | 1,285 | 12 | 0 | ||||||||||||||||||||||||||||
PIMCO Real Return Fund | 516 | 203 | 0 | 0 | 6 | 725 | 7 | 0 | ||||||||||||||||||||||||||||
PIMCO Short-Term Floating NAV Portfolio III | 3,110 | 10,224 | (9,600 | ) | (1 | ) | 1 | 3,734 | 25 | 0 | ||||||||||||||||||||||||||
PIMCO Total Return Fund | 411 | 152 | 0 | 0 | 2 | 565 | 5 | 0 | ||||||||||||||||||||||||||||
Totals | $ | 9,797 | $ | 12,706 | $ | (9,600 | ) | $ | (1 | ) | $ | 79 | $ | 12,981 | $ | 182 | $ | 15 | ||||||||||||||||||
PIMCO REALPATH® Blend 2055 Fund | ||||||||||||||||||||||||||||||||||||
Underlying PIMCO Funds | Market Value 06/30/2017 | Purchases at Cost | Proceeds from Sales | Net Realized Gain (Loss) | Change in Unrealized Appreciation (Depreciation) | Market Value 12/31/2017 | Dividend Income(1) | Realized Net Capital Gain Distributions(1) | ||||||||||||||||||||||||||||
PIMCO Emerging Local Bond Fund | $ | 110 | $ | 27 | $ | 0 | $ | 0 | $ | 1 | $ | 138 | $ | 4 | $ | 0 | ||||||||||||||||||||
PIMCO Foreign Bond Fund (U.S. Dollar-Hedged) | 54 | 10 | 0 | 0 | 1 | 65 | 1 | 0 | ||||||||||||||||||||||||||||
PIMCO High Yield Fund | 228 | 52 | 0 | 0 | (1 | ) | 279 | 7 | 0 | |||||||||||||||||||||||||||
PIMCO Income Fund | 308 | 60 | 0 | 0 | 2 | 370 | 9 | 0 | ||||||||||||||||||||||||||||
PIMCO Long Duration Total Return Fund | 80 | 13 | 0 | 0 | 0 | 93 | 2 | 2 | ||||||||||||||||||||||||||||
PIMCO Long-Term Credit Fund | 80 | 11 | 0 | 0 | 2 | 93 | 2 | 0 | ||||||||||||||||||||||||||||
PIMCO Real Return Asset Fund | 163 | 33 | 0 | 0 | 9 | 205 | 2 | 0 | ||||||||||||||||||||||||||||
PIMCO Real Return Fund | 88 | 20 | 0 | 0 | 1 | 109 | 1 | 0 | ||||||||||||||||||||||||||||
PIMCO Short-Term Floating NAV Portfolio III | 503 | 805 | (700 | ) | 0 | 0 | 608 | 4 | 0 | |||||||||||||||||||||||||||
PIMCO Total Return Fund | 70 | 21 | 0 | 0 | 0 | 91 | 1 | 0 | ||||||||||||||||||||||||||||
Totals | $ | 1,684 | $ | 1,052 | $ | (700 | ) | $ | 0 | $ | 15 | $ | 2,051 | $ | 33 | $ | 2 | |||||||||||||||||||
PIMCO REALPATH® Blend Income Fund | ||||||||||||||||||||||||||||||||||||
Underlying PIMCO Funds | Market Value 06/30/2017 | Purchases at Cost | Proceeds from Sales | Net Realized Gain (Loss) | Change in Unrealized Appreciation (Depreciation) | Market Value 12/31/2017 | Dividend Income(1) | Realized Net Capital Gain Distributions(1) | ||||||||||||||||||||||||||||
PIMCO Emerging Local Bond Fund | $ | 192 | $ | 400 | $ | (22 | ) | $ | 1 | $ | 6 | $ | 577 | $ | 8 | $ | 0 | |||||||||||||||||||
PIMCO Foreign Bond Fund (U.S. Dollar-Hedged) | 476 | 1,015 | (99 | ) | (1 | ) | 1 | 1,392 | 8 | 0 | ||||||||||||||||||||||||||
PIMCO High Yield Fund | 390 | 817 | (65 | ) | 0 | (4 | ) | 1,138 | 12 | 0 | ||||||||||||||||||||||||||
PIMCO Income Fund | 1,050 | 2,235 | (229 | ) | 0 | 1 | 3,057 | 35 | 0 | |||||||||||||||||||||||||||
PIMCO Long Duration Total Return Fund | 186 | 394 | (25 | ) | (2 | ) | (8 | ) | 545 | 6 | 13 | |||||||||||||||||||||||||
PIMCO Long-Term Credit Fund | 184 | 379 | (21 | ) | 0 | 5 | 547 | 6 | 0 | |||||||||||||||||||||||||||
PIMCO Real Return Asset Fund | 398 | 870 | (74 | ) | 0 | 30 | 1,224 | 5 | 0 | |||||||||||||||||||||||||||
PIMCO Real Return Fund | 763 | 1,642 | (153 | ) | (1 | ) | 15 | 2,266 | 10 | 0 | ||||||||||||||||||||||||||
PIMCO Short-Term Floating NAV Portfolio III | 109 | 4,402 | (4,000 | ) | 0 | 0 | 511 | 2 | 0 | |||||||||||||||||||||||||||
PIMCO Total Return Fund | 655 | 1,403 | (140 | ) | (3 | ) | 7 | 1,922 | 10 | 0 | ||||||||||||||||||||||||||
Totals | $ | 4,403 | $ | 13,557 | $ | (4,828 | ) | $ | (6 | ) | $ | 53 | $ | 13,179 | $ | 102 | $ | 13 |
† | A zero balance may reflect actual amounts rounding to less than one thousand. |
(1) | The tax characterization of distributions is determined in accordance with Federal income tax regulations and may contain a return of capital. The actual tax characterization of distributions received is determined at the end of the fiscal year. See Note 2, Distributions to Shareholders, in the Notes to Financial Statements for more information. |
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(b) Investments in Securities
The Funds (and where applicable, certain Acquired Funds and Underlying PIMCO Funds) may utilize the investments and strategies described below to the extent permitted by each Fund’s respective investment policies.
Securities Issued by U.S. Government Agencies or Government-Sponsored Enterprises 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.
5. FINANCIAL DERIVATIVE INSTRUMENTS
The Funds (and where applicable, certain Acquired Funds and Underlying PIMCO Funds) may enter into the financial derivative instruments described below to the extent permitted by each Fund’s respective investment policies.
The following disclosures contain information on how and why the Funds use financial derivative instruments, and how financial derivative instruments affect the Funds’ financial position, results of operations
and cash flows. The location and fair value amounts of these instruments on the Statements of Assets and Liabilities and the net realized gain (loss) and net change in unrealized appreciation (depreciation) 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 net realized gain (loss) and net change in unrealized appreciation (depreciation) 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) Futures Contracts are agreements to buy or sell a security or other asset for a set price on a future date. 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 (“Futures Variation Margin”). Gains (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 the Futures Variation Margin included within exchange traded or centrally cleared financial derivative instruments on the Statements of Assets and Liabilities.
(b) Options Contracts may be written or purchased to enhance returns or to hedge an existing position or future investment. A Fund may write call and put options on securities and financial derivative instruments it owns or in which it 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, swap, security or currency transaction to determine the realized gain (loss). Certain options may be written with premiums to be determined
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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.
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 (loss) when the underlying transaction is executed.
Options on Indices (“Index Option”) use a specified index as the underlying instrument for the option contract. The exercise for an Index Option will not include physical delivery of the underlying index but will result in a cash transfer of the amount of the difference between the settlement price of the underlying index and the strike price.
(c) 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.
Centrally Cleared 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 (“Swap Variation Margin”), if any, are disclosed within centrally cleared financial derivative instruments on the Statements of Assets and Liabilities. Centrally Cleared and 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 gain (loss) 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 (loss) on the Statements of Operations. Net periodic payments received or paid by a Fund are included as part of realized gain (loss) on the Statements of Operations.
For purposes of applying a Fund’s investment policies and restrictions, swap agreements are generally valued by a Fund at market value. In the case of a credit default swap, in applying certain of a Fund’s investment policies and restrictions, the Funds will value the credit default swap at its notional value or its full exposure value (i.e., the sum of the notional amount for the contract plus the market value), but may value the credit default swap at market value for purposes of applying certain of a Fund’s other investment policies and restrictions. For example, a Fund may value credit default swaps at full exposure value for purposes of a Fund’s credit quality guidelines (if any) because such value in general better reflects a Fund’s actual economic exposure during the term of the credit default swap agreement. As a result, a Fund may, at times, have notional exposure to an asset class (before netting) that is greater or lesser than the stated limit or restriction noted in a Fund’s prospectus. In this context, both the notional amount and the market value may be positive or negative depending on whether a Fund is selling or buying protection through the credit default swap. The manner in which certain securities or other instruments are valued by a Fund for purposes of applying investment policies and restrictions may differ from the manner in which those investments are valued by other types of investors.
Entering into swap 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 or the values of the asset upon which the swap is based.
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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 may be 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.
To the extent a Fund has a policy to limit the net amount owed to or to be received from a single counterparty under existing swap agreements, such limitation only applies to counterparties to OTC swaps and does not apply to centrally cleared swaps where the counterparty is a central counterparty or derivatives clearing organization.
Total Return Swap Agreements are entered into to gain or mitigate exposure to the underlying reference asset. Total return swap
agreements involve commitments where single or multiple cash flows are exchanged based on the price of an underlying reference asset 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 underlying reference asset, which may include a single security, a basket of securities, or an index, 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 asset less a financing rate, if any. As a receiver, a Fund would receive payments based on any net positive total return and would owe payments in the event of a net 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 net negative total return.
6. PRINCIPAL RISKS
The principal risks of investing in a Fund, which could adversely affect its net asset value, yield and total return, are listed below.
Risks | PIMCO | 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 | |||||||||||||||||||||||||||||||
New/Small Fund | X | X | X | X | X | X | X | X | X | |||||||||||||||||||||||||||||||
Allocation | X | X | X | X | X | X | X | X | X | |||||||||||||||||||||||||||||||
Acquired | X | X | X | X | X | X | X | X | X | |||||||||||||||||||||||||||||||
Equity | X | X | X | X | X | X | X | X | X | |||||||||||||||||||||||||||||||
Value Investing | X | X | X | X | X | X | X | X | X | |||||||||||||||||||||||||||||||
Interest Rate | X | X | X | X | X | X | X | X | X | |||||||||||||||||||||||||||||||
Call | X | X | X | X | X | X | X | X | X | |||||||||||||||||||||||||||||||
Credit | X | X | X | X | X | X | X | X | X | |||||||||||||||||||||||||||||||
High Yield and Distressed Company | X | X | X | X | X | X | X | X | X | |||||||||||||||||||||||||||||||
Market | X | X | X | X | X | X | X | X | X | |||||||||||||||||||||||||||||||
Issuer | X | X | X | X | X | X | X | X | X | |||||||||||||||||||||||||||||||
Liquidity | X | X | X | X | X | X | X | X | X | |||||||||||||||||||||||||||||||
Derivatives | X | X | X | X | X | X | X | X | X | |||||||||||||||||||||||||||||||
Commodity | X | X | X | X | X | X | X | X | X | |||||||||||||||||||||||||||||||
Mortgage-Related and Other Asset-Backed Securities | X | X | X | X | X | X | X | X | X | |||||||||||||||||||||||||||||||
Foreign (Non-U.S.) Investment | X | X | X | X | X | X | X | X | X | |||||||||||||||||||||||||||||||
Real Estate | X | X | X | X | X | X | X | X | X | |||||||||||||||||||||||||||||||
Emerging Markets | X | X | X | X | X | X | X | X | X | |||||||||||||||||||||||||||||||
Sovereign Debt | X | X | X | X | X | X | X | X | X | |||||||||||||||||||||||||||||||
Currency | X | X | X | X | X | X | X | X | X | |||||||||||||||||||||||||||||||
Leveraging | X | X | X | X | X | X | X | X | X | |||||||||||||||||||||||||||||||
Small-Cap and Mid-Cap Company | X | X | X | X | X | X | X | X | X | |||||||||||||||||||||||||||||||
Management | X | X | X | X | X | X | X | X | X | |||||||||||||||||||||||||||||||
Short Exposure | X | X | X | X | X | X | X | X | X | |||||||||||||||||||||||||||||||
Tax | X | X | X | X | X | X | X | X | X | |||||||||||||||||||||||||||||||
Subsidiary | X | X | X | X | X | X | X | X | X | |||||||||||||||||||||||||||||||
Arbitrage | X | X | X | X | X | X | X | X | X | |||||||||||||||||||||||||||||||
Convertible Securities | X | X | X | X | X | X | X | X | X | |||||||||||||||||||||||||||||||
Exchange-Traded Fund | X | X | X | X | X | X | X | X | X |
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A Fund is generally subject to a different level and amount of risk relative to its target date and time horizon. The principal risks of investing in a Fund include risks from direct investments and/or for certain Funds that invest in Acquired Funds or Underlying PIMCO Funds, indirect exposure through investment in such Acquired Funds or Underlying PIMCO Funds. Please see “Description of Principal Risks” in a Fund’s prospectus for a more detailed description of the risks of investing in a Fund.
The following risks are principal risks of investing in a Fund.
New/Small Fund Risk is the risk that a new or smaller Fund’s performance may not represent how a Fund is expected to or may perform in the long term. In addition, new Funds have limited operating histories for investors to evaluate and new and smaller Funds may not attract sufficient assets to achieve investment and trading efficiencies.
Allocation Risk is the risk that a Fund could lose money as a result of less than optimal or poor asset allocation decisions. A Fund could miss attractive investment opportunities by underweighting markets that subsequently experience significant returns and could lose value by overweighting markets that subsequently experience significant declines.
Acquired Fund Risk is the risk that a Fund’s performance is closely related to the risks associated with the securities and other investments held by the Acquired Funds and that the ability of a Fund to achieve its investment objective will depend upon the ability of the Acquired Funds to achieve their investment objectives.
The following risks are principal risks of investing in a Fund that include risks from direct investments and/or indirect exposure through investment in Acquired Funds.
New/Small Fund Risk is the risk that a new or smaller Fund’s performance may not represent how a Fund is expected to or may perform in the long term. In addition, new Funds have limited operating histories for investors to evaluate and new and smaller Funds may not attract sufficient assets to achieve investment and trading efficiencies.
Equity Risk is the risk that the value of equity securities, such as common stocks and preferred securities, may decline due to general market conditions which are not specifically related to a particular company or to factors affecting a particular industry or industries. Equity securities generally have greater price volatility than fixed income securities.
Value Investing Risk is the risk that 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.
Interest Rate Risk is the risk that fixed income securities will decline in value because of an increase in interest rates; a fund with a longer
average portfolio duration will be more sensitive to changes in interest rates than a fund with a shorter average portfolio duration. Acclimated
Call Risk is the risk that an issuer may exercise its right to redeem a fixed income security earlier than expected (a call). Issuers may call outstanding securities prior to their maturity for a number of reasons (e.g., declining interest rates, changes in credit spreads and improvements in the issuer’s credit quality). If an issuer calls a security that a Fund has invested in, a Fund may not recoup the full amount of its initial investment and may be forced to reinvest in lower-yielding securities, securities with greater credit risks or securities with other, less favorable features.
Credit Risk is the risk that a Fund could lose money if the issuer or guarantor of a fixed income security, or the counterparty to a derivative contract, is unable or unwilling to meet its financial obligations.
High Yield and Distressed Company Risk is the risk that high yield securities and unrated securities of similar credit quality (commonly known as “junk bonds”) and securities of distressed companies may be subject to greater levels of credit, issuer and liquidity risks. Securities of distressed companies include both debt and equity securities. High yield securities and debt securities of distressed companies are considered primarily speculative with respect to the issuer’s continuing ability to make principal and interest payments. Distressed companies may be engaged in restructurings or bankruptcy proceedings.
Market Risk is the risk that the value of securities owned by a Fund may go up or down, sometimes rapidly or unpredictably, due to factors affecting securities markets generally or particular industries.
Issuer Risk is the risk that the value of a security may decline for a reason directly related to the issuer, such as management performance, financial leverage and reduced demand for the issuer’s goods or services.
Liquidity Risk is the risk that a particular investment may be difficult to purchase or sell and that a Fund may be unable to sell illiquid securities at an advantageous time or price or achieve its desired level of exposure to a certain sector. Liquidity risk may result from the lack of an active market, reduced number and capacity of traditional market participants to make a market in fixed income securities, and may be magnified in a rising interest rate environment or other circumstances where investor redemptions from fixed income mutual funds may be higher than normal, causing increased supply in the market due to selling activity.
Derivatives Risk is the risk of investing in derivative instruments (such as futures, swaps and structured securities), including leverage, liquidity, interest rate, market, credit and management risks, mispricing or valuation complexity. Changes in the value of the derivative may not
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correlate perfectly with, and may be more sensitive to market events than, the underlying asset, rate or index, and a Fund could lose more than the initial amount invested. A Fund’s use of derivatives may result in losses to the Fund, a reduction in a Fund’s returns and/or increased volatility. Over-the-counter (“OTC”) derivatives are also subject to the risk that a counterparty to the transaction will not fulfill its contractual obligations to the other party, as many of the protections afforded to centrally-cleared derivative transactions might not be available for OTC derivatives. For derivatives traded on an exchange or through a central counterparty, credit risk resides with the Fund’s clearing broker, or the clearinghouse itself, rather than with a counterparty in an OTC derivative transaction. Changes in regulation relating to a mutual fund’s use of derivatives and related instruments could potentially limit or impact a Fund’s ability to invest in derivatives, limit a Fund’s ability to employ certain strategies that use derivatives and/or adversely affect the value of derivatives and a Fund’s performance.
Commodity Risk is the risk that investing in commodity-linked derivative instruments may subject a Fund to greater volatility than investments in traditional securities. The value of commodity-linked 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.
Mortgage-Related and Other Asset-Backed Securities Risk is the risk of investing in mortgage-related and other asset-backed securities, including interest rate risk, extension risk, prepayment risk and credit risk.
Foreign (Non-U.S.) Investment Risk is the risk that investing in foreign (non-U.S.) securities may result in a Fund experiencing more rapid and extreme changes in value than a fund that invests exclusively in securities of U.S. companies, due to smaller markets, differing reporting, accounting and auditing standards, increased risk of delayed settlement of portfolio transactions or loss of certificates of portfolio securities, and the risk of unfavorable foreign government actions, including nationalization, expropriation or confiscatory taxation, currency blockage, or political changes or diplomatic developments. Foreign securities may also be less liquid and more difficult to value than securities of U.S. issuers.
Real Estate Risk is the risk that a Fund’s investments in Real Estate Investment Trusts (“REITs”) or real estate-linked derivative instruments will subject a Fund to risks similar to those associated with direct ownership of real estate, including losses from casualty or condemnation, and changes in local and general economic conditions, supply and demand, interest rates, zoning laws, regulatory limitations on rents, property taxes and operating expenses. A Fund’s investments
in REITs or real estate-linked derivative instruments subject it to management and tax risks. In addition, privately traded REITs subject a Fund to liquidity and valuation risk.
Emerging Markets Risk is the risk of investing in emerging market securities, primarily increased foreign (non-U.S.) investment risk.
Sovereign Debt Risk is the risk that investments in fixed income instruments issued by sovereign entities may decline in value as a result of default or other adverse credit event resulting from an issuer’s inability or unwillingness to make principal or interest payments in a timely fashion.
Currency Risk is the risk that foreign (non-U.S.) currencies will change in value relative to the U.S. dollar and affect a Fund’s investments in foreign (non-U.S.) currencies or in securities that trade in, and receive revenues in, or in derivatives that provide exposure to, foreign (non-U.S.) currencies.
Leveraging Risk is the risk that certain transactions of a Fund, such as reverse repurchase agreements, loans of portfolio securities, and the use of when-issued, delayed delivery or forward commitment transactions, or derivative instruments, may give rise to leverage, magnifying gains and losses and causing a Fund to be more volatile than if it had not been leveraged. This means that leverage entails a heightened risk of loss.
Small-Cap and Mid-Cap Company Risk is the risk that the value of securities issued by small-capitalization and mid-capitalization companies may go up or down, sometimes rapidly and unpredictably, due to narrow markets and limited managerial and financial resources.
Management Risk is the risk that the investment techniques and risk analyses applied by PIMCO will not produce the desired results and that legislative, regulatory, or tax restrictions, policies or developments may affect the investment techniques available to PIMCO and the individual portfolio manager in connection with managing a Fund. There is no guarantee that the investment objective of a Fund will be achieved.
Short Exposure Risk is the risk of entering into short sales, including the potential loss of more money than the actual cost of the investment, and the risk that the third party to the short sale will not fulfill its contractual obligations, causing a loss to a Fund.
Tax Risk is the risk that the tax treatment of swap agreements and other derivative instruments, such as commodity-linked derivative instruments, including commodity index-linked notes, swap agreements, commodity options, futures, and options on futures, may be affected by future regulatory or legislative changes that could affect whether income from such investments is “qualifying income” under Subchapter M of the Internal Revenue Code, or otherwise affect the
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character, timing and/or amount of the Fund’s taxable income or gains and distributions.
Subsidiary Risk is the risk that, by investing in certain Underlying PIMCO Funds that invest in a subsidiary (each a “Subsidiary”), a Fund is indirectly exposed to the risks associated with a Subsidiary’s investments. The Subsidiaries are not registered under the 1940 Act and may not be subject to all the investor protections of the 1940 Act. There is no guarantee that the investment objective of a Subsidiary will be achieved.
Arbitrage Risk is the risk that securities purchased pursuant to an arbitrage strategy intended to take advantage of a perceived relationship between the value of two securities may not perform as expected.
Convertible Securities Risk is the risk that arises when convertible securities share both fixed income and equity characteristics. Convertible securities are subject to risks to which fixed income and equity investments are subject. These risks include equity risk, interest rate risk and credit risk.
Exchange-Traded Fund Risk is the risk that an exchange-traded fund may not track the performance of the index it is designed to track, market prices of shares of an exchange-traded fund may fluctuate rapidly and materially, or shares of an exchange-traded fund may trade significantly above or below net asset value, any of which may cause losses to a Fund invested in the exchange-traded fund.
7. MASTER NETTING ARRANGEMENTS
A Fund may be subject to various netting arrangements (“Master Agreements”) with select counterparties. 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 present 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 most 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 depending on the terms outlined in the applicable Master Agreement. 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 with counterparty. 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 from counterparty. 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 Schedules of Investments.
Master Securities Forward Transaction Agreements (“Master Forward Agreements”) govern certain forward settling transactions, such as TBA 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, transaction 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 Schedules of Investments.
Customer Account Agreements and related addenda govern cleared derivatives transactions such as futures, options on futures, and cleared OTC derivatives. Such transactions require posting of initial margin as determined by each relevant clearing agency which is segregated in an account at a futures commission merchant (“FCM”) registered with the Commodity Futures Trading Commission (“CFTC”). In the United States, counterparty risk may be reduced as creditors of an FCM cannot have a claim to Fund assets in the segregated account. Portability of exposure 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 unless the parties have agreed to a
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Notes to Financial Statements (Cont.)
separate arrangement in respect of portfolio margining. The market value or accumulated unrealized appreciation (depreciation), initial margin posted, and any unsettled variation margin as of period end is disclosed in the Notes to Schedules of Investments.
International Swaps and Derivatives Association, Inc. Master Agreements and Credit Support Annexes (“ISDA Master Agreements”) govern bilateral OTC derivative transactions entered into by a Fund with select counterparties. ISDA Master Agreements maintain provisions for general obligations, representations, agreements, collateral posting 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 Schedules of Investments.
8. 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 in note (b) 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 Fees and Supervisory and Administrative Fees for all classes, as applicable, are charged at the annual rate as noted in the following table (calculated as a percentage of each Fund’s average daily net assets attributable to each class):
Investment Advisory Fee | Supervisory and Administrative Fee | |||||||||||||||||||||||||||||||
Fund Name | All Classes | Institutional Class | Administrative Class | Class D | Class A | Class R | ||||||||||||||||||||||||||
PIMCO REALPATH® Blend 2020 Fund | 0.01% | 0.02% | 0.02% | 0.27% | * | 0.27% | 0.27% | * | ||||||||||||||||||||||||
PIMCO REALPATH® Blend 2025 Fund | 0.01% | 0.02% | 0.02% | 0.27% | * | 0.27% | 0.27% | * | ||||||||||||||||||||||||
PIMCO REALPATH® Blend 2030 Fund | 0.02% | 0.02% | 0.02% | 0.27% | * | 0.27% | 0.27% | * | ||||||||||||||||||||||||
PIMCO REALPATH® Blend 2035 Fund | 0.03% | 0.02% | 0.02% | 0.27% | * | 0.27% | 0.27% | * | ||||||||||||||||||||||||
PIMCO REALPATH® Blend 2040 Fund | 0.03% | 0.02% | 0.02% | 0.27% | * | 0.27% | 0.27% | * | ||||||||||||||||||||||||
PIMCO REALPATH® Blend 2045 Fund | 0.03% | 0.02% | 0.02% | 0.27% | * | 0.27% | 0.27% | * | ||||||||||||||||||||||||
PIMCO REALPATH® Blend 2050 Fund | 0.03% | 0.02% | 0.02% | 0.27% | * | 0.27% | 0.27% | * | ||||||||||||||||||||||||
PIMCO REALPATH® Blend 2055 Fund | 0.03% | 0.02% | 0.02% | 0.27% | * | 0.27% | 0.27% | * | ||||||||||||||||||||||||
PIMCO REALPATH® Blend Income Fund | 0.01% | 0.02% | 0.02% | 0.27% | * | 0.27% | 0.27% | * |
* | This particular share class has been registered with the SEC, but has not yet launched. |
(c) Distribution and Servicing Fees PIMCO Investments LLC, 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 and Class R shares of the Trust pursuant to Rule 12b-1 under the Act. In connection with the distribution of Class R shares of the Trust, the Distributor receives distribution fees from the Trust of up to 0.25% for Class R shares and in connection with personal services rendered to Class A 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 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
78 | PIMCO EQUITY SERIES |
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December 31, 2017 (Unaudited)
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 noted 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 R | 0.25% | * | 0.25% | * |
* | This particular share class has been registered with the SEC, but has not yet launched. |
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 December 31, 2017, the Distributor retained $40,489 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.
Each Trustee, other than those affiliated with PIMCO or its affiliates, 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 and $750 for each Board meeting attended telephonically, 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, so that each co-lead individually receives an additional retainer of $1,000) 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 Pursuant to the Expense Limitation Agreement, PIMCO has agreed to waive a portion of the Funds’ Supervisory and Administrative Fee, or reimburse each Fund, to the extent that each Fund’s organizational expenses and pro rata share of Trustee Fees exceed 0.0049%, the “Expense Limit” (calculated as a percentage of each Fund’s average daily net assets attributable to each class). The Expense 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.
Under certain conditions, PIMCO may be reimbursed for these waived amounts in future periods, not to exceed thirty-six months after the waiver. The total recoverable amounts to PIMCO at December 31, 2017, were as follows (amounts in thousands†):
Expiring within | ||||||||||||||||||||
Fund Name | 12 months | 13-24 months | 25-36 months | Total | ||||||||||||||||
PIMCO RealPath® Blend 2020 Fund | $ | 16 | $ | 0 | $ | 1 | $ | 17 | ||||||||||||
PIMCO RealPath® Blend 2025 Fund | 16 | 0 | 1 | 17 | ||||||||||||||||
PIMCO RealPath® Blend 2030 Fund | 15 | 1 | 1 | 17 | ||||||||||||||||
PIMCO RealPath® Blend 2035 Fund | 15 | 1 | 1 | 17 | ||||||||||||||||
PIMCO RealPath® Blend 2040 Fund | 15 | 1 | 1 | 17 | ||||||||||||||||
PIMCO RealPath® Blend 2045 Fund | 15 | 1 | 1 | 17 | ||||||||||||||||
PIMCO RealPath® Blend 2050 Fund | 15 | 0 | 1 | 16 | ||||||||||||||||
PIMCO RealPath® Blend 2055 Fund | 16 | 0 | 1 | 17 | ||||||||||||||||
PIMCO RealPath® Blend Income Fund | 16 | 0 | 1 | 17 |
† | A zero balance may reflect actual amounts rounding to less than one thousand. |
SEMIANNUAL REPORT | DECEMBER 31, 2017 | 79 |
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Notes to Financial Statements (Cont.)
(f) Acquired Fund Fees and Expenses Acquired Fund expenses incurred by a Fund will vary with changes in the expenses of the Acquired Funds, as well as the allocation of the 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.
9. RELATED PARTY TRANSACTIONS
The Adviser, Administrator, and Distributor are related parties. Fees paid to these parties are disclosed in Note 8, Fees and Expenses, and the accrued related party fee amounts are disclosed on the Statements of Assets and Liabilities.
10. 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.
11. 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 may involve correspondingly greater transaction costs 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 transaction 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 December 31, 2017, 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 | $ | 15,157 | $ | 3,582 | ||||||||||||
PIMCO REALPATH® Blend 2025 Fund | 0 | 0 | 20,295 | 2,690 | ||||||||||||||||
PIMCO REALPATH® Blend 2030 Fund | 0 | 0 | 15,621 | 1,228 | ||||||||||||||||
PIMCO REALPATH® Blend 2035 Fund | 0 | 0 | 13,004 | 1,974 | ||||||||||||||||
PIMCO REALPATH® Blend 2040 Fund | 0 | 0 | 8,611 | 3,369 | ||||||||||||||||
PIMCO REALPATH® Blend 2045 Fund | 0 | 0 | 8,605 | 1,915 | ||||||||||||||||
PIMCO REALPATH® Blend 2050 Fund | 0 | 0 | 12,705 | 1,548 | ||||||||||||||||
PIMCO REALPATH® Blend 2055 Fund | 0 | 0 | 1,245 | 231 | ||||||||||||||||
PIMCO REALPATH® Blend Income Fund | 0 | 0 | 15,623 | 1,726 |
† | A zero balance may reflect actual amounts rounding to less than one thousand. |
80 | PIMCO EQUITY SERIES |
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12. SHARES OF BENEFICIAL INTEREST
The Trust may issue an unlimited number of shares of beneficial interest with a $0.001 par value. Changes in shares of beneficial interest were as follows (shares and amounts in thousands†):
PIMCO REALPATH® Blend 2020 Fund | PIMCO REALPATH® Blend 2025 Fund | |||||||||||||||||||||||||||||||||
Six Months Ended 12/31/2017 | Year Ended 06/30/2017 | Six Months Ended 12/31/2017 | Year Ended 06/30/2017 | |||||||||||||||||||||||||||||||
Shares | Amount | Shares | Amount | Shares | Amount | Shares | Amount | |||||||||||||||||||||||||||
Receipts for shares sold | ||||||||||||||||||||||||||||||||||
Institutional Class | 140 | $ | 1,515 | 770 | $ | 8,002 | 103 | $ | 1,146 | 549 | $ | 5,708 | ||||||||||||||||||||||
Administrative Class | 1,181 | 13,109 | 0 | 2 | 1,689 | 18,957 | 1 | 11 | ||||||||||||||||||||||||||
Class A | 55 | 596 | 247 | 2,555 | 68 | 741 | 363 | 3,763 | ||||||||||||||||||||||||||
Issued as reinvestment of distributions | ||||||||||||||||||||||||||||||||||
Institutional Class | 14 | 154 | 13 | 133 | 9 | 105 | 10 | 100 | ||||||||||||||||||||||||||
Administrative Class | 13 | 147 | 0 | 0 | 17 | 195 | 0 | 0 | ||||||||||||||||||||||||||
Class A | 4 | 44 | 1 | 14 | 5 | 60 | 2 | 19 | ||||||||||||||||||||||||||
Cost of shares redeemed | ||||||||||||||||||||||||||||||||||
Institutional Class | (135 | ) | (1,464 | ) | (397 | ) | (4,160 | ) | (45 | ) | (494 | ) | (326 | ) | (3,420 | ) | ||||||||||||||||||
Administrative Class | (161 | ) | (1,792 | ) | 0 | (2 | ) | (187 | ) | (2,096 | ) | 0 | 0 | |||||||||||||||||||||
Class A | (7 | ) | (73 | ) | (23 | ) | (238 | ) | (8 | ) | (85 | ) | (1 | ) | (11 | ) | ||||||||||||||||||
Net increase (decrease) resulting from Fund share transactions | 1,104 | $ | 12,236 | 611 | $ | 6,306 | 1,651 | $ | 18,529 | 598 | $ | 6,170 | ||||||||||||||||||||||
PIMCO REALPATH® Blend 2030 Fund | PIMCO REALPATH® Blend 2035 Fund | |||||||||||||||||||||||||||||||||
Six Months Ended 12/31/2017 | Year Ended 06/30/2017 | Six Months Ended 12/31/2017 | Year Ended 06/30/2017 | |||||||||||||||||||||||||||||||
Shares | Amount | Shares | Amount | Shares | Amount | Shares | Amount | |||||||||||||||||||||||||||
Receipts for shares sold | ||||||||||||||||||||||||||||||||||
Institutional Class | 40 | $ | 435 | 908 | $ | 9,604 | 47 | $ | 535 | 1,341 | $ | 14,359 | ||||||||||||||||||||||
Administrative Class | 1,318 | 15,129 | 2 | 12 | 1,069 | 12,428 | 3 | 32 | ||||||||||||||||||||||||||
Class A | 43 | 483 | 291 | 3,032 | 48 | 546 | 303 | 3,207 | ||||||||||||||||||||||||||
Issued as reinvestment of distributions | ||||||||||||||||||||||||||||||||||
Institutional Class | 23 | 267 | 18 | 185 | 30 | 349 | 15 | 154 | ||||||||||||||||||||||||||
Administrative Class | 19 | 221 | 0 | 1 | 16 | 186 | 0 | 0 | ||||||||||||||||||||||||||
Class A | 6 | 63 | 0 | 4 | 6 | 70 | 1 | 5 | ||||||||||||||||||||||||||
Cost of shares redeemed | ||||||||||||||||||||||||||||||||||
Institutional Class | (48 | ) | (533 | ) | (375 | ) | (3,980 | ) | (121 | ) | (1,383 | ) | (379 | ) | (4,065 | ) | ||||||||||||||||||
Administrative Class | (49 | ) | (564 | ) | 0 | 0 | (61 | ) | (716 | ) | (1 | ) | (11 | ) | ||||||||||||||||||||
Class A | (5 | ) | (55 | ) | (3 | ) | (29 | ) | (4 | ) | (45 | ) | (4 | ) | (40 | ) | ||||||||||||||||||
Net increase (decrease) resulting from Fund share transactions | 1,347 | $ | 15,446 | 841 | $ | 8,829 | 1,030 | $ | 11,970 | 1,279 | $ | 13,641 | ||||||||||||||||||||||
PIMCO REALPATH® Blend 2040 Fund | PIMCO REALPATH® Blend 2045 Fund | |||||||||||||||||||||||||||||||||
Six Months Ended 12/31/2017 | Year Ended 06/30/2017 | Six Months Ended 12/31/2017 | Year Ended 06/30/2017 | |||||||||||||||||||||||||||||||
Shares | Amount | Shares | Amount | Shares | Amount | Shares | Amount | |||||||||||||||||||||||||||
Receipts for shares sold | ||||||||||||||||||||||||||||||||||
Institutional Class | 81 | $ | 943 | 2,275 | $ | 24,531 | 150 | $ | 1,719 | 3,323 | $ | 35,870 | ||||||||||||||||||||||
Administrative Class | 694 | 8,158 | 1 | 12 | 649 | 7,637 | 5 | 52 | ||||||||||||||||||||||||||
Class A | 58 | 657 | 481 | 5,113 | 28 | 320 | 281 | 2,982 | ||||||||||||||||||||||||||
Issued as reinvestment of distributions | ||||||||||||||||||||||||||||||||||
Institutional Class | 48 | 557 | 10 | 106 | 65 | 769 | 9 | 94 | ||||||||||||||||||||||||||
Administrative Class | 12 | 147 | 0 | 1 | 10 | 123 | 0 | 1 | ||||||||||||||||||||||||||
Class A | 9 | 105 | 0 | 4 | 5 | 63 | 0 | 0 | ||||||||||||||||||||||||||
Cost of shares redeemed | ||||||||||||||||||||||||||||||||||
Institutional Class | (208 | ) | (2,414 | ) | (425 | ) | (4,596 | ) | (191 | ) | (2,194 | ) | (381 | ) | (4,124 | ) | ||||||||||||||||||
Administrative Class | (40 | ) | (476 | ) | 0 | (1 | ) | (37 | ) | (443 | ) | (4 | ) | (39 | ) | |||||||||||||||||||
Class A | (103 | ) | (1,172 | ) | (3 | ) | (36 | ) | (8 | ) | (87 | ) | (2 | ) | (23 | ) | ||||||||||||||||||
Net increase (decrease) resulting from Fund share transactions | 551 | $ | 6,505 | 2,339 | $ | 25,134 | 671 | $ | 7,907 | 3,231 | $ | 34,813 |
SEMIANNUAL REPORT | DECEMBER 31, 2017 | 81 |
Table of Contents
Notes to Financial Statements (Cont.)
PIMCO REALPATH® Blend 2050 Fund | PIMCO REALPATH® Blend 2055 Fund | |||||||||||||||||||||||||||||||||
Six Months Ended | Year Ended | Six Months Ended | Year Ended | |||||||||||||||||||||||||||||||
Shares | Amount | Shares | Amount | Shares | Amount | Shares | Amount | |||||||||||||||||||||||||||
Receipts for shares sold | ||||||||||||||||||||||||||||||||||
Institutional Class | 280 | $ | 3,236 | 3,959 | $ | 42,900 | 124 | $ | 1,433 | 263 | $ | 2,836 | ||||||||||||||||||||||
Administrative Class | 918 | 10,868 | 1 | 5 | 2 | 20 | 6 | 66 | ||||||||||||||||||||||||||
Class A | 29 | 338 | 305 | 3,233 | 20 | 230 | 169 | 1,791 | ||||||||||||||||||||||||||
Issued as reinvestment of distributions | ||||||||||||||||||||||||||||||||||
Institutional Class | 81 | 960 | 10 | 108 | 18 | 209 | 6 | 66 | ||||||||||||||||||||||||||
Administrative Class | 15 | 174 | 0 | 0 | 0 | 1 | 0 | 1 | ||||||||||||||||||||||||||
Class A | 6 | 65 | 0 | 1 | 4 | 45 | 0 | 2 | ||||||||||||||||||||||||||
Cost of shares redeemed | ||||||||||||||||||||||||||||||||||
Institutional Class | (182 | ) | (2,089 | ) | (428 | ) | (4,643 | ) | (30 | ) | (346 | ) | (20 | ) | (216 | ) | ||||||||||||||||||
Administrative Class | (64 | ) | (765 | ) | 0 | 0 | 0 | 0 | (6 | ) | (66 | ) | ||||||||||||||||||||||
Class A | (34 | ) | (390 | ) | (3 | ) | (29 | ) | (26 | ) | (297 | ) | (11 | ) | (115 | ) | ||||||||||||||||||
Net increase (decrease) resulting from Fund share transactions | 1,049 | $ | 12,397 | 3,844 | $ | 41,575 | 112 | $ | 1,295 | 407 | $ | 4,365 |
PIMCO REALPATH® Blend Income Fund | ||||||||||||||||||
Six Months Ended | Year Ended | |||||||||||||||||
Shares | Amount | Shares | Amount | |||||||||||||||
Receipts for shares sold | ||||||||||||||||||
Institutional Class | 270 | $ | 2,945 | 675 | $ | 7,015 | ||||||||||||
Administrative Class | 1,207 | 13,330 | 3 | 26 | ||||||||||||||
Class A | 130 | 1,433 | 151 | 1,554 | ||||||||||||||
Issued as reinvestment of distributions | ||||||||||||||||||
Institutional Class | 8 | 90 | 10 | 102 | ||||||||||||||
Administrative Class | 12 | 133 | 0 | 1 | ||||||||||||||
Class A | 3 | 32 | 1 | 11 | ||||||||||||||
Cost of shares redeemed | ||||||||||||||||||
Institutional Class | (260 | ) | (2,831 | ) | (448 | ) | (4,682 | ) | ||||||||||
Administrative Class | (18 | ) | (196 | ) | (1 | ) | (7 | ) | ||||||||||
Class A | (25 | ) | (276 | ) | (1 | ) | (9 | ) | ||||||||||
Net increase (decrease) resulting from Fund share transactions | 1,327 | $ | 14,660 | 390 | $ | 4,011 |
† | A zero balance may reflect actual amounts rounding to less than one thousand. |
The following table discloses the number of shareholders that own 10% or more of the outstanding shares of a Fund along with their respective percent ownership, if any, for the period ended December 31, 2017. Some of these shareholders may be considered related parties, which 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.
Shareholders that own 10% or more of outstanding shares | Total percentage of portfolio held by shareholders that own 10% or more of outstanding shares | |||||||||||||||||||
Non-Related Parties | Related Parties | Non-Related Parties | Related Parties | |||||||||||||||||
REALPATH® Blend 2025 Fund | 1 | 0 | 13% | 0% | ||||||||||||||||
REALPATH® Blend 2030 Fund | 1 | 0 | 10% | 0% | ||||||||||||||||
REALPATH® Blend 2035 Fund | 1 | 0 | 10% | 0% | ||||||||||||||||
REALPATH® Blend 2040 Fund | 1 | 0 | 13% | 0% | ||||||||||||||||
REALPATH® Blend 2055 Fund | 1 | 1 | 18% | 37% |
82 | PIMCO EQUITY SERIES |
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13. REGULATORY AND LITIGATION MATTERS
The Funds are not named as defendants in any material litigation or arbitration proceedings and are not aware of any material litigation or claim pending or threatened against them.
The foregoing speaks only as of the date of this report.
14. 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.
A Fund 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 December 31, 2017, 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. federal, state, and local tax returns as required. The Funds’ tax returns are subject to examination by relevant tax
authorities until expiration of the applicable statute of limitations, which is generally three years after the filing of the tax return but which can be extended to six years in certain circumstances. Tax returns for open years have incorporated no uncertain tax positions that require a provision for income taxes.
Under the Regulated Investment Company Modernization 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 their last fiscal year ended June 30, 2017, the Funds had the following post-effective capital losses with no expiration (amounts in thousands†):
Short-Term | Long-Term | |||||||||||
PIMCO REALPATH® Blend 2020 Fund | $ | 0 | $ | 16 | ||||||||
PIMCO REALPATH® Blend 2025 Fund | 38 | 15 | ||||||||||
PIMCO REALPATH® Blend 2030 Fund | 0 | 0 | ||||||||||
PIMCO REALPATH® Blend 2035 Fund | 0 | 8 | ||||||||||
PIMCO REALPATH® Blend 2040 Fund | 0 | 10 | ||||||||||
PIMCO REALPATH® Blend 2045 Fund | 0 | 17 | ||||||||||
PIMCO REALPATH® Blend 2050 Fund | 0 | 12 | ||||||||||
PIMCO REALPATH® Blend 2055 Fund | 6 | 18 | ||||||||||
PIMCO REALPATH® Blend Income Fund | 0 | 11 |
† | A zero balance may reflect actual amounts rounding to less than one thousand. |
As of December 31, 2017, 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)(1) | |||||||||||||||||
PIMCO REALPATH® Blend 2020 Fund | $ | 22,382 | $ | 1,108 | $ | (30 | ) | $ | 1,078 | |||||||||||
PIMCO REALPATH® Blend 2025 Fund | 27,261 | 1,199 | (41 | ) | 1,158 | |||||||||||||||
PIMCO REALPATH® Blend 2030 Fund | 30,105 | 2,198 | (7 | ) | 2,191 | |||||||||||||||
PIMCO REALPATH® Blend 2035 Fund | 31,043 | 2,588 | (6 | ) | 2,582 | |||||||||||||||
PIMCO REALPATH® Blend 2040 Fund | 34,372 | 3,022 | (5 | ) | 3,017 | |||||||||||||||
PIMCO REALPATH® Blend 2045 Fund | 45,156 | 4,073 | (7 | ) | 4,066 | |||||||||||||||
PIMCO REALPATH® Blend 2050 Fund | 57,264 | 5,037 | (10 | ) | 5,027 | |||||||||||||||
PIMCO REALPATH® Blend 2055 Fund | 8,873 | 1,165 | (1 | ) | 1,164 |
(1) | Primary differences, if any, between book and tax net unrealized appreciation (depreciation) are attributable to wash sale loss deferrals for Federal income tax purposes. |
(1) Primary differences, if any, between book and tax net unrealized appreciation (depreciation) are attributable to wash sale loss deferrals for Federal income tax purposes.
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Glossary: (abbreviations that may be used in the preceding statements)
(Unaudited)
Counterparty Abbreviations: | ||||||||||
BPS | BNP Paribas S.A. | GST | Goldman Sachs International | MYI | Morgan Stanley & Co. International PLC | |||||
CBK | Citibank N.A. | JPM | JP Morgan Chase Bank N.A. | |||||||
Currency Abbreviations: | ||||||||||
USD (or $) | United States Dollar | |||||||||
Exchange Abbreviations: | ||||||||||
CBOE | Chicago Board Options Exchange | OTC | Over the Counter | |||||||
Index/Spread Abbreviations: | ||||||||||
BCOMTR | Bloomberg Commodity Index Total Return | DWRTFT | Dow Jones Wilshire REIT Total Return Index | S&P 500 | Standard & Poor’s 500 Index | |||||
Other Abbreviations: | ||||||||||
LIBOR | London Interbank Offered Rate | TBA | To-Be-Announced |
84 | PIMCO EQUITY SERIES |
Table of Contents
Approval of Investment Advisory Contract and Other Agreements
(Unaudited)
Approval of Renewal of the Investment Advisory Contract, Sub-Advisory Agreement, Portfolio Implementation Agreement and Second Amended and Restated Supervision and Administration Agreement
At a meeting held on August 23, 2017, the Board of Trustees (the “Board”) of PIMCO Equity Series (the “Trust”), including the Trustees who are not “interested persons” of the Trust under the Investment Company Act of 1940, as amended (the “Independent Trustees”), considered and unanimously approved the renewal of the Investment Advisory Contract (the “Investment Advisory Contract”) between the Trust, on behalf of each of the Trust’s series (the “Funds”), and Pacific Investment Management Company LLC (“PIMCO”) for an additional one-year term through August 31, 2018. The Board also considered and unanimously approved the renewal of the Second Amended and Restated Supervision and Administration Agreement (the “Supervision and Administration Agreement” and together with the Investment Advisory Contract, the “Agreements”) between the Trust, on behalf of the Funds, and PIMCO for an additional one-year term through August 31, 2018. In addition, the Board considered and unanimously approved the renewal of the: (i) Sub-Advisory Agreement (the “Sub-Advisory Agreement”) between PIMCO, on behalf of PIMCO RAE Fundamental Emerging Markets Fund, PIMCO RAE Fundamental Global ex-US Fund, PIMCO RAE Fundamental Global Fund, PIMCO RAE Fundamental International Fund, PIMCO RAE Fundamental US Fund, PIMCO RAE Fundamental US Small Fund and the equity sleeve of the PIMCO Dividend and Income Fund (the “RAE Funds”), each a series of the Trust, and Research Affiliates, LLC (“Research Affiliates”); and (ii) Portfolio Implementation Agreement (the “Portfolio Implementation Agreement”) among PIMCO, on behalf of the RAE Funds, each a series of the Trust, Research Affiliates and Parametric Portfolio Associates LLC (“Parametric”), each for an additional one-year term through August 31, 2018.
The information, material factors and conclusions that formed the basis for the Board’s approvals are summarized below.
1. INFORMATION RECEIVED
(a) Materials Reviewed: During the course of the past year, the Trustees received a wide variety of materials relating to the services provided by PIMCO, Research Affiliates and Parametric to the Trust. At each of its quarterly meetings, the Board reviewed the Funds’ investment performance and a significant amount of information relating to Fund operations, including shareholder services, valuation and custody, the Funds’ compliance program and other information relating to the nature, extent and quality of services provided by PIMCO, Research Affiliates and Parametric to the Trust and each of the Funds, as applicable. In considering whether to approve the renewal of the Agreements, the Sub-Advisory Agreement, and the Portfolio Implementation Agreement, the Board reviewed additional information,
including, but not limited to, comparative industry data with regard to investment performance, advisory and supervisory and administrative fees and expenses, financial information for PIMCO and, where relevant, Research Affiliates and Parametric, information regarding the profitability to PIMCO of its relationship with the Funds, information about the personnel providing investment management services, other advisory services and supervisory and administrative services to the Funds, and information about the fees charged and services provided to other clients with similar investment mandates as the Funds, where applicable. In addition, the Board reviewed materials provided by counsel to the Trust and the Independent Trustees, which included, among other things, memoranda outlining legal duties of the Board in considering the renewal of the Agreements, the Sub-Advisory Agreement and the Portfolio Implementation Agreement.
(b) Review Process: In connection with considering the renewal of the Agreements, the Sub-Advisory Agreement and the Portfolio Implementation Agreement, the Board reviewed written materials prepared by PIMCO and, where applicable, Research Affiliates and Parametric in response to requests from counsel to the Trust and the Independent Trustees encompassing a wide variety of topics. The Board requested and received assistance and advice regarding, among other things, applicable legal standards from counsel to the Trust and the Independent Trustees, and reviewed comparative fee and performance data prepared at the Board’s request by Broadridge Financial Solutions, Inc. (“Lipper”), an independent provider of investment company performance information and fee and expense data. The Board received presentations on matters related to the Agreements, the Sub-Advisory Agreement and the Portfolio Implementation Agreement and met both as a full Board and in a separate session of the Independent Trustees, without management present, at the August 23, 2017 meeting. The Independent Trustees also conducted an in-person meeting with counsel to the Trust and the Independent Trustees on July 21, 2017 to discuss the Lipper Report, as defined below, and certain aspects of the 2017 15(c) materials including, but not limited to, the Funds’ performance, the Funds’ advisory fees and total expense ratios, the comparative information with respect to fees and performance included in the Lipper Report, and the unified fee structure employed by the Trusts.
The approval determinations were made on the basis of each Trustee’s business judgment after consideration and evaluation 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 renewal of the Agreements, the Sub-Advisory Agreement, and the Portfolio Implementation Agreement, the Board did not identify any single factor or particular information that, in isolation, was controlling. The discussion below is intended to summarize the broad factors and information that figured prominently in the Board’s
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Table of Contents
Approval of Investment Advisory Contract and Other Agreements (Cont.)
consideration of the renewal of the Agreements, the Sub-Advisory Agreement and the Portfolio Implementation Agreement, but is not intended to summarize 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 PIMCO’s investment management process, including: the experience, capability and integrity of its senior management and other personnel; the overall financial strength and stability of its organization; and the ability of its organizational structure to address changes in the Funds’ asset levels. The Board also considered the various services in addition to portfolio management that PIMCO provides under the Investment Advisory Contract. The Board noted that PIMCO makes available to its investment professionals a variety of resources and systems relating to investment management, compliance, trading, performance and portfolio accounting. The Board also noted PIMCO’s commitment to investing in information technology and infrastructure supporting investment, compliance and risk management, as well as PIMCO’s continuing efforts to attract, retain and promote qualified personnel, including personnel with relevant equities experience, and to maintain and enhance its resources and systems. The Board considered PIMCO’s policies, procedures and systems reasonably designed to assure compliance with applicable laws and regulations and its commitment to further developing and strengthening these programs, its oversight of matters that may involve conflicts of interest between the Funds’ investments and those of other accounts managed by PIMCO, and its efforts to keep the Trustees informed about matters relevant to the Funds and their shareholders. The Board also considered PIMCO’s continuous investment in new disciplines and talented personnel, which has enhanced PIMCO’s services to the Funds and has allowed PIMCO to introduce innovative new funds over time.
The Trustees considered that PIMCO has continued to strengthen the process it uses to actively manage counterparty risk and to assess the financial stability of counterparties with which the Funds do business, to manage collateral and to protect the Funds from an unforeseen deterioration in the creditworthiness of trading counterparties. The Trustees noted that, consistent with its fiduciary duty, PIMCO executes transactions through a competitive best execution process and uses only those counterparties that meet its stringent and monitored criteria. The Trustees considered that PIMCO’s collateral management team utilizes a counterparty risk system to analyze portfolio-level exposure and collateral being exchanged with counterparties.
In addition, the Trustees considered new services and service enhancements that PIMCO has implemented since the Board renewed the Agreements in 2016, including, but not limited to: continuing
enhancement of its analytics and technology systems by upgrading hardware and software; enhancing data processing and security and development of tools and applications to support Portfolio Management, Compliance, Analytics, Risk Management, Client Reporting and Customer Relationship Management; continuing investment in its enterprise risk management function including PIMCO’s cybersecurity program; developing the PIMCO Global Advisory Board and continuing to hire new portfolio managers; expanding the Funds and Operations Group global operating model; developing a website monitoring application to ensure accurate data content; adding staff to fund accounting and financial reporting; engaging a third party to perform an independent assessment of PIMCO’s proprietary accounting application and enhancing the same system to provide portfolio managers with more timely and high quality income reporting; establishing a Fund Treasurer’s Office; developing a global tax management application that will enable investment professionals to access foreign market and security tax information on a real-time basis; enhancing reporting of tax reporting for portfolio managers for income products with improved transparency on tax factors impacting income generation and dividend yield; redesigning shareholder statements to be more user friendly and enable e-delivery; and continuing expansion of the pricing portal and the proprietary performance reconciliation tool.
Similarly, the Board considered the sub-advisory services provided by Research Affiliates to the RAE Funds and noted that it had met with senior personnel from Research Affiliates during the year. The Board further considered PIMCO’s oversight of Research Affiliates in connection with Research Affiliates providing sub-advisory services to the RAE Funds. The Board also considered Research Affiliates’ supervisory responsibilities with respect to Parametric’s provision of portfolio implementation services to the RAE Funds. The Board further considered the depth and quality of Research Affiliates’ investment management and research capabilities, the experience and capabilities of its portfolio management personnel and the overall financial strength of the organization.
In addition, the Board considered the portfolio implementation and other operational services provided by Parametric to the RAE Funds by, among other things, effecting portfolio transactions on behalf of the RAE Funds. The Board further considered PIMCO’s oversight of Parametric in connection with Parametric providing portfolio implementation services. The Board also considered information about Parametric’s personnel responsible for providing services to the RAE Funds under the Portfolio Implementation Agreement. The Board also considered the nature and quality of Parametric’s trading, risk management, and compliance capabilities and resources, including Parametric’s policies and procedures regarding trade aggregation and allocation, which are integral parts of its role as portfolio implementer.
86 | PIMCO EQUITY SERIES |
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(Unaudited)
Ultimately, the Board concluded that the nature, extent and quality of services provided or procured by PIMCO under the Agreements, provided by Research Affiliates under the Sub-Advisory Agreement, and provided by Parametric under the Portfolio Implementation Agreement are likely to continue to benefit the Funds and their shareholders, as applicable.
(b) Other Services: The Board also considered the nature, extent and quality of supervisory and administrative services provided by PIMCO to the Funds under the Supervision and Administration Agreement. The Board considered the terms of the Supervision and Administration Agreement, under which the Trust pays for the supervisory and administrative services provided pursuant to that agreement under what is essentially an all-in fee structure (the “unified fee”). In return, PIMCO provides or procures certain supervisory and administrative services and bears the costs of various third party services required by the Funds, including audit, custodial, portfolio accounting, legal, transfer agency, sub-accounting and printing costs. The Board noted that the scope and complexity, as well as the costs, of the supervisory and administrative services provided by PIMCO under the Supervision and Administration Agreement continue to increase. The Board considered PIMCO’s provision of supervisory and administrative services 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 available in the market.
Ultimately, the Board concluded that the nature, extent and quality of the services provided or procured by PIMCO has benefited, and will likely continue to benefit, the Funds and their shareholders.
3. INVESTMENT PERFORMANCE
The Board reviewed information from PIMCO concerning the Funds’ performance, as available, over short- and long-term periods ended March 31, 2017 and other performance data, as available, over short- and long-term periods ended June 30, 2017 (the “PIMCO Report”) and from Lipper concerning the Funds’ performance, as available, over short- and long-term periods ended March 31, 2017 (the “Lipper Report”). The Board considered information regarding both the short- and long-term investment performance of each Fund relative to its peer group and relevant benchmark index as provided to the Board in advance of each of its quarterly meetings throughout the year, including the PIMCO Report and Lipper Report, which were provided in advance of the August 23, 2017 meeting.
The Board noted that, according to Lipper, certain Funds had underperformed in comparison to their respective peer groups or benchmark indexes, or both, over short- and long-term periods. The Board discussed with PIMCO the reasons for the underperformance of certain Funds over short- and long-term periods. The Board also discussed actions that have been taken by PIMCO to attempt to
improve performance and took note of PIMCO’s plans to monitor performance going forward.
The Board ultimately concluded, within the context of all of its considerations in connection with the Agreements, that PIMCO’s performance record and process in managing the Funds indicates that its continued management is likely to benefit the Funds and their shareholders, and merits the approval of the renewal of the Agreements.
4. ADVISORY FEES, SUPERVISORY AND ADMINISTRATIVE FEES AND TOTAL EXPENSES
The Board considered that PIMCO seeks to price funds to scale at the outset with reference to the total expense ratios of the respective Lipper median, if available, while providing a fee premium for innovative investment offerings. PIMCO reported to the Board that, in proposing fees for any Fund or class of shares, it considers a number of factors, including, but not limited to, the type and complexity of the services provided, the cost of providing services, the risk assumed by PIMCO in the development of products and 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 Fund returns to current and potential investors. Fees charged to or proposed for different Funds for advisory services and supervisory and administrative services may vary in light of these various factors. The Board also considered that PIMCO reviews the Funds’ fee levels and carefully considers changes where appropriate due to competitive positioning considerations, observed long-term notable underperformance and significant misalignments with the level or quality of services being provided or a change in the overall strategic positioning of the Funds.
The Board reviewed the advisory fees, supervisory and administrative fees and total expenses of the Funds (each as a percentage of average net assets) and compared such amounts with the average and median fee and expense levels of other similar funds. The Board also reviewed information relating to the sub-advisory fees paid to Research Affiliates with respect to applicable Funds, taking into account that PIMCO compensates Research Affiliates from the advisory fees paid by such Funds to PIMCO. 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 also considered that PIMCO reviews the Funds’ fee levels and carefully considers changes where appropriate, and noted in particular, the reduction in the advisory fee for the PIMCO Dividend and Income Fund effective June 16, 2016. The Board noted that PIMCO had contractually agreed, through October 31, 2017, to reduce its advisory fee by amounts shown in the
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Approval of Investment Advisory Contract and Other Agreements (Cont.)
table below: This contractual agreement was subsequently continued through October 31, 2018.
PIMCO RAE Fundamental Emerging Markets Fund | 0.20% | |||||||
PIMCO RAE Fundamental Global Fund | 0.20% | |||||||
PIMCO RAE Fundamental Global ex-US Fund | 0.20% | |||||||
PIMCO RAE Fundamental International Fund | 0.10% | |||||||
PIMCO RAE Fundamental US Fund | 0.10% | |||||||
PIMCO RAE Fundamental US Small Fund | 0.10% |
The Board also reviewed data comparing the Funds’ advisory fees to the standard and negotiated fee rates PIMCO charges to separate accounts and to other sub-advised clients with similar investment strategies, including differences in advisory services provided. The Board discussed comparisons of fees for Funds with fees for separate accounts and/or PIMCO private/alternative funds with similar investment strategies, noting that for certain Funds, there were no appropriate comparisons because PIMCO did not manage comparable separate accounts at the time that the Board considered the Agreements. The Board noted that the advisory fees (or management fees, where applicable) for most Funds were similar to the fee rates charged to other investment companies with the same investment strategies as the Funds.
Regarding advisory fees charged by PIMCO in its capacity as sub-adviser to third-party/unaffiliated funds, the Trustees took into account that such fees may be lower than the fees charged by PIMCO to serve as adviser to the Funds. The Trustees also took into account that there are various reasons for any such differences in fees, including, but not limited to, the fact that PIMCO may be subject to varying levels of entrepreneurial risk and regulatory requirements, differing legal liabilities on a contract-by-contract basis and different servicing requirements when PIMCO does not serve as the sponsor of a fund and is not principally responsible for all aspects of a fund’s investment program and operations as compared to when PIMCO serves as investment adviser and sponsor. In considering the fees paid by the Funds, the Board noted that retail investors in the Funds receive the benefit of PIMCO’s advisory services at the same advisory fee rates as institutional investors in the Funds.
The Board considered the Funds’ supervisory and administrative fees, comparing them to similar funds in the report supplied by Lipper. The Board also considered that as the Funds’ business has become increasingly complex and the number of Funds has grown over time, PIMCO has provided an increasingly broad array of fund supervisory and administrative functions. In addition, the Board considered the Trust’s unified fee structure, under which the Trust pays for the supervisory and administrative services it requires for one set fee. In return for this unified fee, PIMCO provides or procures supervisory and administrative services and bears the costs of various third party
services required by the Funds, including audit, custodial, portfolio accounting, legal, transfer agency, sub-accounting and printing costs. The Board further considered that many other funds pay for comparable services separately, and thus it is difficult to directly compare the Trust’s unified supervisory and administrative fees with the fees paid by other funds for administrative services alone. The Board also considered that the unified supervisory and administrative fee leads to Fund fees that are fixed over the contract period, rather than variable. The Board noted that, although the unified fee structure does not have breakpoints, it implicitly reflects economies of scale by fixing the absolute level of Fund fees at competitive levels over the contract period even if the Funds’ operating costs rise when assets remain flat or decrease. Other factors the Board considered in assessing the unified fee include PIMCO’s approach of pricing the Funds to scale at inception and reinvesting in other important areas of the business that support the Funds. The Board considered that the Funds’ unified fee structure meant that fees were not impacted by recent outflows in certain Funds, unlike funds without a unified fee structure, which may see increased expense ratios when fixed costs, such as service providers, are passed through to a smaller asset base. The Board concluded that the Funds’ supervisory and administrative fees were reasonable in relation to the value of the services 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 fees during the contractual period, which is beneficial to the Funds and their shareholders.
The Board noted that the Funds’ total expenses continued to be generally in line with those of competitor funds. The Board discussed with PIMCO those Funds and/or classes of Funds that had above median total expenses. Upon comparing the Funds’ total expenses to other funds in the “Peer Groups” provided by Lipper, the Board found total expenses of each Fund to be reasonable.
The Trustees also considered the advisory fees charged to the Funds that operate as funds of funds (the “Funds of Funds”) and the advisory services provided in exchange for such fees. The Trustees determined that such services were in addition to the advisory services provided to the underlying funds in which the Funds of Funds may invest and, therefore, such services were not duplicative of the advisory services provided to the underlying funds. The Board also considered the various fee waiver agreements in place for the Funds of Funds.
Based on the information presented by PIMCO, Research Affiliates, Parametric and Lipper, members of the Board determined, in the exercise of their business judgment, that the level of the advisory fees and supervisory and administrative fees charged by PIMCO under the Agreements, as well as the total expenses of each Fund, are reasonable.
88 | PIMCO EQUITY SERIES |
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(Unaudited)
5. ADVISER COSTS, LEVEL OF PROFITS AND ECONOMIES OF SCALE
The Board reviewed information regarding PIMCO’s costs of providing services to the Funds as a whole and considered that PIMCO’s estimated pre-distribution margin from PIMCO Equity Series for the calendar year 2017 was 46.2% and the estimated post-distribution margin was 27.4% utilizing the adjusted asset methodology. The Independent Trustees also noted that the 2016 margins were within the range of publicly-traded asset manager margins reported by Strategic Insight and Lipper. The Board noted that it had received information regarding the structure and manner in which PIMCO’s investment professionals were compensated and PIMCO’s view of the relationship of such compensation to the attraction and retention of quality personnel. The Board considered PIMCO’s need to invest in global infrastructure, technology capabilities, risk management processes and qualified personnel to reinforce and offer new services and to accommodate changing regulatory requirements.
With respect to potential economies of scale, the Board noted that PIMCO shares the benefits of economies of scale with the Funds and their shareholders in a number of ways, including investing in portfolio and trade operations management, firm technology, middle and back office support, legal and compliance, and fund administration logistics; senior management supervision and governance of those services; and through the pricing of Funds to scale from inception and the enhancement of services and oversight provided to the Funds in return for fees paid. In considering the advisory fees paid by the Funds, the Board also noted that retail investors in the Funds receive the benefit of PIMCO’s advisory services at the same advisory fee rates as institutional investors in the Funds. The Board considered that the Funds’ unified fee rates had been set competitively and/or priced to scale from inception and continued to be competitive compared with peers. The Board also considered that the unified fee is a transparent means of informing a Fund’s shareholders of the fees associated with the Fund, and that the Fund bears certain expenses that are not covered by the advisory fee or the unified fee. The Board further considered the challenges that arise when managing large funds, which can result in certain “diseconomies” of scale and noted that PIMCO has continued to reinvest in many areas of the business to support the Funds.
The Trustees considered that the unified fee has provided inherent economies of scale because a Fund maintains competitive fixed unified fees over the contract term even if the particular Fund’s assets decline and/or operating costs rise. The Trustees further considered that, in contrast, breakpoints may be 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 Trustees also considered that, unlike the Funds’ 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 Trustees also considered that the unified fee protects shareholders from a rise in operating costs that may result from, among other things, PIMCO’s investments in various business enhancements and infrastructure, including those referenced above. The Trustees noted that PIMCO’s investments in these areas are extensive.
6. ANCILLARY BENEFITS
The Board considered other benefits realized by PIMCO and its affiliates as a result of PIMCO’s relationship with the Trust. Such benefits may include possible ancillary benefits to PIMCO’s institutional investment management business due to the reputation and market penetration of the Trust or third party service providers’ relationship-level fee concessions, which decrease fees paid by PIMCO. The Board also considered that affiliates of PIMCO provide distribution and shareholder services to the Funds and their respective shareholders, for which they may be compensated through distribution and servicing fees paid pursuant to the Funds’ Rule 12b-1 plans or otherwise. 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 Funds, it has adopted a policy not to enter into contractual soft dollar arrangements.
7. CONCLUSIONS
Based on their review, including their comprehensive consideration and evaluation of each of the broad factors and information summarized above, the Independent Trustees and the Board as a whole concluded that the nature, extent and quality of the services rendered to the Funds by PIMCO, Research Affiliates and Parametric supported the renewal of the Agreements, the Sub-Advisory Agreement, and the Portfolio Implementation Agreement. The Independent Trustees and the Board as a whole concluded that the Agreements, the Sub-Advisory Agreement, and the Portfolio Implementation Agreement continued to be fair and reasonable to the Funds and their shareholders, that the Funds’ shareholders received reasonable value in return for the fees paid to PIMCO by the Funds under the Agreements, the fees paid to Research Affiliates by PIMCO under the Sub-Advisory Agreement, and the fees paid to Parametric by PIMCO under the Portfolio Implementation Agreement, and that the renewal of the Agreements, the Sub-Advisory Agreement, and the Portfolio Implementation Agreement was in the best interests of the Funds and their shareholders.
SEMIANNUAL REPORT | DECEMBER 31, 2017 | 89 |
Table of Contents
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
Kansas City, MO 64105
Transfer Agent
DST Asset Manager Solutions, Inc.
Institutional Class, Class P, Administrative Class
330 W. 9th Street, 5th Floor
Kansas City, MO 64105
DST Asset Manager Solutions, Inc.
Class A, Class C, Class R, Class D
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.
Table of Contents
PES4002SAR_123117
Table of Contents
PIMCO Equity Series®
Semiannual
Report
December 31, 2017
PIMCO RAFI Dynamic Multi-Factor Emerging Markets Equity ETF
PIMCO RAFI Dynamic Multi-Factor International Equity ETF
PIMCO RAFI Dynamic Multi-Factor U.S. Equity ETF
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Approval of Investment Advisory Contract and Other Agreements | 60 | |||||||
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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 Semiannual Report for the PIMCO Equity Series covering the six-month reporting period ended December 31, 2017. The following pages contain 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 the six-month reporting period include:
∎ | During the reporting period, geopolitical concerns remained an investor focus but the global economy provided a solid fundamental backdrop with robust consumer confidence in both the eurozone and the U.S. This environment gave room for developed market central banks to adopt a more “dovish taper”. The European Central Bank (“ECB”), for example, announced a tapering in its monthly asset purchases, but President Mario Draghi emphasized the ECB’s overall accommodative stance. In September, the Federal Reserve (“Fed”) provided details on its plan to unwind its balance sheet and kept rates on hold through its November meeting, but raised the Federal Funds Rate in December by 0.25% to a range of 1.25% to 1.50% (marking the third rate increase during 2017, following rate increases in March and in June). The Bank of England (“BOE”) raised its policy rate and suggested reduced stimulus on the horizon and the Bank of Canada (“BOC”) raised interest rates twice after a seven-year gap. Furthermore, President Xi Jinping was extended a second five-year term following the 19th National Party Congress in China, while Japan’s Prime Minister Shinzo Abe won a decisive victory in snap elections. |
∎ | As a result, many developed market yield curves flattened over the reporting period as front-end rates moved higher alongside less accommodative monetary policy. In the U.S., solid growth momentum and the Fed’s three rate hikes throughout the year pushed the two-year yield to its highest level in nearly a decade. In turn, this drove the spread between two-year and 10-year rates to its narrowest level since November 2007. Front-end yields also moved higher in the U.K. and Canada as the BOE and BOC both raised policy rates for the first time in years. |
∎ | Global stock markets reached new highs as increasingly solid economic data, rising corporate earnings, and non-restrictive central bank policy underpinned robust risk sentiment. U.S. equities, as represented by the S&P 500 Index, returned 11.42% over the reporting period. Developed market equities outside the U.S. and Canada, as represented by the MSCI EAFE Net Dividend Index (USD Hedged) and the MSCI EAFE Net Dividend Index (USD Unhedged), returned 7.92% and 9.86%, respectively, over the reporting period. Japanese equities, as represented by the Nikkei 225 Index (in JPY), returned 14.63% over the reporting period and European equities, as represented by the MSCI Europe Index (in EUR), returned 3.34% over the reporting period. |
∎ | EM equities, as represented by the MSCI Emerging Markets Index (Net Dividends in USD), returned 15.92% over the reporting period as fundamentals remained healthy in select economies. Emerging markets benefited from broad-based and synchronized global growth, robust liquidity conditions, rising commodity prices, and a weak U.S. dollar. |
∎ | U.S. Treasuries, as represented by the Bloomberg Barclays U.S. Treasury Index, returned 0.43% for the reporting period. Yields rose across the majority of the yield curve through 10-year maturities, but declined across 20- and 30-year maturities. The benchmark 10-year U.S. Treasury note yielded 2.40% at the end of the reporting period, up from 2.31% on June 30, 2017. The Bloomberg Barclays U.S. Aggregate Index, a widely used index of U.S. investment-grade bonds, returned 1.24% for the reporting period. |
If you have any questions regarding the funds, please contact your account manager or financial adviser, or call one of our shareholder associates at 888.400.4ETF. We also invite you to visit our website at www.pimcoetfs.com to learn more about our views and global thought leadership.
2 | PIMCO EQUITY SERIES |
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Thank you for the assets you have placed with us. We deeply value your trust, and we work diligently to meet your broad investment needs.
![]() | Sincerely,
Brent R. Harris Chairman of the Board, PIMCO Equity Series
February 21, 2018 |
Past performance is no guarantee of future results. Unless otherwise noted, index returns reflect the reinvestment of income distributions and capital gains, if any, but do not reflect fees, brokerage commissions or other expenses of investing. It is not possible to invest directly in an unmanaged index.
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Important Information About the Funds
PIMCO Equity Series (the “Trust”) is an open-end management investment company that includes PIMCO RAFI Dynamic Multi-Factor Emerging Markets Equity ETF, PIMCO RAFI Dynamic Multi-Factor International Equity ETF, and PIMCO RAFI Dynamic Multi-Factor U.S. Equity ETF, which are exchange-traded funds (“ETFs”) that seek to provide total return that closely corresponds, before fees and expenses, to the total return of a specified index (each, a “Fund” and collectively, the “Funds”). Each Fund employs a representative sampling strategy in seeking to achieve its investment objective. In using this strategy, PIMCO seeks to invest in a combination of instruments such that the portfolio effectively provides exposure to the underlying index. A Fund may not track its underlying index with the same degree of accuracy as a fund that replicates the composition and weighting of the underlying index. Shares of the Funds will be listed and traded at market prices on NYSE Arca, Inc. (“NYSE Arca”) and other secondary markets. The market price for each Fund’s shares may be different from the Fund’s net asset value (“NAV”). Each Fund issues and redeems shares at its NAV only in blocks of a specified number of shares (“Creation Units”). Only certain large institutional investors may purchase or redeem Creation Units directly with the Funds at NAV (“Authorized Participants”). These transactions are in exchange for certain securities similar to a Fund’s portfolio and/or cash. Except when aggregated in Creation Units, shares of a Fund are not redeemable securities. Shareholders who are not Authorized Participants may not redeem shares from the Funds at NAV.
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 securities, 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 equity securities.
The Funds may be subject to various risks as described in each Fund’s prospectus and in the Principal Risks in the Notes to Financial Statements.
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.
On each individual Fund Summary page in this Shareholder Report, the Cumulative Returns chart measures performance assuming that any dividend and capital gain distributions were reinvested. Returns do not reflect the deduction of taxes that a shareholder would pay on: (i) Fund distributions; or (ii) the sale of Fund shares. Each Fund’s performance is measured against the performance of at least one broad-based securities market index (“benchmark index”). A Fund’s past performance, before and after taxes, is not necessarily an indication of how the Fund will perform in the future. There is no assurance that any Fund, including any Fund that has experienced high or unusual performance for one or more periods, will experience similar levels of performance in the future. High performance is defined as a significant increase in either 1) a Fund’s total return in excess of that of the Fund’s benchmark between reporting periods or 2) a Fund’s total return in excess of the Fund’s historical returns between reporting periods. Unusual performance is defined as a significant change in a Fund’s performance as compared to one or more previous reporting periods.
The following table discloses the inception dates of each Fund along with each Fund’s diversification status as of period end:
Fund Name | Fund Inception | Diversification Status | ||||||||||
PIMCO RAFI Dynamic Multi-Factor Emerging Markets Equity ETF | 08/31/17 | Diversified | ||||||||||
PIMCO RAFI Dynamic Multi-Factor International Equity ETF | 08/31/17 | Diversified | ||||||||||
PIMCO RAFI Dynamic Multi-Factor U.S. Equity ETF | 08/31/17 | Diversified |
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 the Funds.
The Trustees are responsible generally for overseeing the management of the Trust. The Trustees authorize the Trust to enter into service
4 | PIMCO EQUITY SERIES |
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agreements with the Adviser, the Distributor, the Administrator and other service providers in order to provide, and in some cases authorize service providers to procure through other parties, necessary or desirable services on behalf of the Trust and the Funds. Shareholders are not parties to or third-party beneficiaries of such service agreements. Neither a Fund’s prospectus nor a Fund’s summary prospectus, the Trust’s Statement of Additional Information (“SAI”), any contracts filed as exhibits to the Trust’s registration statement, nor any other communications, disclosure documents or regulatory filings (including this report) from or on behalf of the Trust or a Fund creates a contract between or among any shareholder of a Fund, on the one hand, and the Trust, a Fund, a service provider to the Trust or a Fund, and/or the Trustees or officers of the Trust, on the other hand. The Trustees (or the Trust and its officers, service providers or other delegates acting under authority of the Trustees) may amend the most recent prospectus or use a new prospectus, summary prospectus or SAI with respect to a Fund or the Trust, and/or amend, file and/or issue any other communications, disclosure documents or regulatory filings, and may amend or enter into any contracts to which the Trust or a Fund is a party, and interpret the investment objective(s), policies, restrictions and contractual provisions applicable to any Fund, without shareholder input or approval, except in circumstances in which shareholder approval is specifically required by law (such as changes to fundamental investment policies) or where a shareholder approval requirement is specifically disclosed in the Trust’s then-current prospectus or SAI.
The Funds may make available a complete schedule of portfolio holdings and the percentages they represent of the Fund’s net assets. The frequency at which the daily market prices were at a discount or
premium to each Fund’s NAV is disclosed on www.pimcoetfs.com. Please see “Disclosure of Portfolio Holdings” in the SAI for information about the availability of the complete schedule of each Fund’s holdings. Fund fact sheets provide additional information regarding a Fund and may be requested by calling 888.400.4ETF and are available on the Fund’s website at www.pimcoetfs.com.
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 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 888.400.4ETF, on the Fund’s website at www.pimcoetfs.com, and on the Securities and Exchange Commission’s (“SEC”) website at www.sec.gov.
The Trust files a complete schedule of each Fund’s 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 copy of the Funds’ Form N-Q is also available without charge, upon request, by calling the Trust at 888.400.4ETF and on the Funds’ website at www.pimcoetfs.com. Information on the operation of the Public Reference Room may be obtained by calling 1-800-SEC-0330.
SEMIANNUAL REPORT | DECEMBER 31, 2017 | 5 |
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PIMCO RAFI Dynamic Multi-Factor Emerging Markets Equity ETF
Cumulative Returns Through December 31, 2017
A line graph is not included since the Fund has less than six months performance.
Investment Objective and Strategy Overview
PIMCO RAFI Dynamic Multi-Factor Emerging Markets Equity ETF seeks to track the investment results of the RAFI Dynamic Multi-Factor Emerging Markets Index (the “Underlying Index”) by investing under normal circumstances at least 80% of its total assets (exclusive of collateral held from securities lending) in the component securities (“Component Securities”) of the Underlying Index. The Fund may invest the remainder of its assets in cash, securities and instruments that are not Component Securities, but which the Fund’s sub-adviser, Parametric Portfolio Associates LLC, believes will help the Fund track its Underlying Index. The Underlying Index is designed to provide long-only exposure to multiple equity factors that seek to produce attractive long-term returns, and which may lower risk compared to less diversified strategies. Please refer to the Fund’s current prospectus for more information regarding the Fund’s strategy.
Cumulative Total Return for the period ended December 31, 2017 | ||||||
Fund Inception (08/31/17) | ||||||
PIMCO RAFI Dynamic Multi-Factor Emerging Markets Equity ETF (Based on Net Asset Value) | 4.34% | |||||
PIMCO RAFI Dynamic Multi-Factor Emerging Markets Equity ETF (At Market Price(1)) | 4.65% | |||||
RAFI Dynamic Multi-Factor Emerging Market Index± | 4.79% |
All Fund returns are net of fees and expenses.
Market Returns do not include brokerage commissions that may be payable on secondary market transactions. If brokerage commissions were included, market returns would be lower. Market and NAV returns assume that dividends and capital gain distributions have been reinvested in the Fund at market price and NAV, respectively.
(1) The market price is determined using the midpoint between the highest bid and the lowest offer on the listing exchange, as of the time that the Fund’s NAV is calculated.
± The RAFI Dynamic Multi-Factor Emerging Market Index strategy takes time-varying exposures to four return factors; value, low volatility, quality, and momentum. The index uses recent and historical metrics to tilt toward factor portfolios which are particularly attractive on a forward looking basis.
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 by authorized participants. Returns shown do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or on the redemption of Fund shares. Differences in the Fund’s performance versus the index and related attribution information with respect to particular categories of securities or individual positions may be attributable, in part, to differences in the pricing methodologies used by the Fund and the index. Performance data current to the most recent month-end is available at www.pimcoetfs.com or via (888) 400-4ETF.
The Fund’s total annual operating expense ratio in effect as of period end was 0.59%. Details regarding any changes to the Fund’s operating expenses, subsequent to period end, can be found in the Fund’s current prospectus, as supplemented.
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Ticker symbol - MFEM |
Geographic Breakdown as of 12/31/20171§
South Korea | 21.2% | |||||||
China | 17.3% | |||||||
Taiwan | 12.8% | |||||||
Brazil | 7.1% | |||||||
South Africa | 6.1% | |||||||
India | 6.1% | |||||||
Russia | 5.6% | |||||||
Ireland | 4.7% | |||||||
Thailand | 3.1% | |||||||
Hong Kong | 2.5% | |||||||
Chile | 2.4% | |||||||
Malaysia | 2.4% | |||||||
Mexico | 2.2% | |||||||
Poland | 1.9% | |||||||
Indonesia | 1.8% | |||||||
Turkey | 1.2% | |||||||
Philippines | 1.0% | |||||||
Greece | 0.6% |
1 % of Investments, at value.
§ Geographic Breakdown and % of Investments exclude securities sold short, financial derivative instruments and short-term instruments, if any.
Fund Insights
The following affected performance during the reporting period:
» | Holdings in the consumer discretionary sector contributed to absolute returns for both the Fund and the Underlying Index. |
» | Holdings in the energy sector contributed to absolute returns for both the Fund and the Underlying Index. |
» | Holdings in the materials sector contributed to absolute returns for both the Fund and the Underlying Index. |
» | Holdings in the information technology sector contributed to absolute returns for both the Fund and the Underlying Index. |
» | Holdings in the utilities sector detracted from absolute returns for both the Fund and the Underlying Index. |
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PIMCO RAFI Dynamic Multi-Factor International Equity ETF
Cumulative Returns Through December 31, 2017
A line graph is not included since the Fund has less than six months performance.
Investment Objective and Strategy Overview
PIMCO RAFI Dynamic Multi-Factor International Equity ETF seeks to track the investment results of the RAFI Dynamic Multi-Factor Developed Ex-U.S. Index (the “Underlying Index”) by investing under normal circumstances at least 80% of its total assets (exclusive of collateral held from securities lending) in the component securities (“Component Securities”) of the Underlying Index. The Fund may invest the remainder of its assets in cash, securities and instruments that are not Component Securities, but which the Fund’s sub-adviser, Parametric Portfolio Associates LLC, believes will help the Fund track its Underlying Index. The Underlying Index is designed to provide long-only exposure to multiple equity factors that seek to produce attractive long-term returns, and which may lower risk compared to less diversified strategies. Please refer to the Fund’s current prospectus for more information regarding the Fund’s strategy.
Cumulative Total Return for the period ended December 31, 2017 | ||||||
Fund Inception (08/31/17) | ||||||
PIMCO RAFI Dynamic Multi-Factor International Equity ETF (Based on Net Asset Value) | 7.16% | |||||
PIMCO RAFI Dynamic Multi-Factor International Equity ETF (At Market Price(1)) | 6.89% | |||||
RAFI Dynamic Multi-Factor Developed Ex-U.S. Index± | 8.00% |
All Fund returns are net of fees and expenses.
Market Returns do not include brokerage commissions that may be payable on secondary market transactions. If brokerage commissions were included, market returns would be lower. Market and NAV returns assume that dividends and capital gain distributions have been reinvested in the Fund at market price and NAV, respectively.
(1) The market price is determined using the midpoint between the highest bid and the lowest offer on the listing exchange, as of the time that the Fund’s NAV is calculated.
± The RAFI Dynamic Multi-Factor Developed Ex-U.S. Index takes time-varying exposures to five return factors; value, low volatility, quality, momentum and size. The index uses recent and historical metrics to tilt toward factor portfolios which are particularly attractive on a forward looking basis.
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 by authorized participants. Returns shown do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or on the redemption of Fund shares. Differences in the Fund’s performance versus the index and related attribution information with respect to particular categories of securities or individual positions may be attributable, in part, to differences in the pricing methodologies used by the Fund and the index. Performance data current to the most recent month-end is available at www.pimcoetfs.com or via (888) 400-4ETF.
The Fund’s total annual operating expense ratio in effect as of period end was 0.49%. Details regarding any changes to the Fund’s operating expenses, subsequent to period end, can be found in the Fund’s current prospectus, as supplemented.
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Ticker symbol - MFDX |
Geographic Breakdown as of 12/31/20171§
Japan | 24.5% | |||||||
United Kingdom | 17.0% | |||||||
Switzerland | 7.2% | |||||||
Canada | 6.8% | |||||||
Germany | 6.7% | |||||||
France | 6.1% | |||||||
Australia | 5.0% | |||||||
Netherlands | 3.4% | |||||||
Spain | 3.4% | |||||||
Sweden | 3.1% | |||||||
Italy | 3.1% | |||||||
Hong Kong | 2.9% | |||||||
Singapore | 2.0% | |||||||
Denmark | 1.7% | |||||||
Belgium | 1.3% | |||||||
Ireland | 1.1% | |||||||
Norway | 1.0% | |||||||
Other | 3.7% |
1 % of Investments, at value.
§ Geographic Breakdown and % of Investments exclude securities sold short, financial derivative instruments and short-term instruments, if any.
Fund Insights
The following affected performance during the reporting period:
» | Holdings in the consumer discretionary sector contributed to absolute returns for both the Fund and the Underlying Index. |
» | Holdings in the industrial sector contributed to absolute returns for both the Fund and the Underlying Index. |
» | Holdings in the materials sector contributed to absolute returns for both the Fund and the Underlying Index. |
» | Holdings in the financial sector contributed to absolute returns for both the Fund and the Underlying Index. |
» | Holdings in the utilities sector detracted from absolute returns for both the Fund and the Underlying Index. |
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PIMCO RAFI Dynamic Multi-Factor U.S. Equity ETF
Cumulative Returns Through December 31, 2017
A line graph is not included since the Fund has less than six months performance.
Investment Objective and Strategy Overview
PIMCO RAFI Dynamic Multi-Factor U.S. Equity ETF seeks to track the investment results of the RAFI Dynamic Multi-Factor U.S. Index (the “Underlying Index”) by investing under normal circumstances at least 80% of its total assets (exclusive of collateral held from securities lending) in the component securities (“Component Securities”) of the Underlying Index. The Fund may invest the remainder of its assets in cash, securities and instruments that are not Component Securities, but which the Fund’s sub-adviser, Parametric Portfolio Associates LLC, believes will help the Fund track its Underlying Index. The Underlying Index is designed to provide long-only exposure to multiple equity factors that seek to produce attractive long-term returns, and which may lower risk compared to less diversified strategies. Please refer to the Fund’s current prospectus for more information regarding the Fund’s strategy.
Cumulative Total Return for the period ended December 31, 2017 | ||||||
Fund Inception (08/31/17) | ||||||
PIMCO RAFI Dynamic Multi-Factor U.S. Equity ETF (Based on Net Asset Value) | 11.11% | |||||
PIMCO RAFI Dynamic Multi-Factor U.S. Equity ETF (At Market Price(1)) | 10.96% | |||||
RAFI Dynamic Multi-Factor U.S. Index± | 11.35% |
All Fund returns are net of fees and expenses.
Market Returns do not include brokerage commissions that may be payable on secondary market transactions. If brokerage commissions were included, market returns would be lower. Market and NAV returns assume that dividends and capital gain distributions have been reinvested in the Fund at market price and NAV, respectively.
(1) The market price is determined using the midpoint between the highest bid and the lowest offer on the listing exchange, as of the time that the Fund’s NAV is calculated.
± The RAFI Dynamic Multi-Factor U.S. Index takes time-varying exposures to five return factors; value, low volatility, quality, momentum and size. The index uses recent and historical metrics to tilt toward factor portfolios which are particularly attractive on a forward looking basis.
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 by authorized participants. Returns shown do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or on the redemption of Fund shares. Differences in the Fund’s performance versus the index and related attribution information with respect to particular categories of securities or individual positions may be attributable, in part, to differences in the pricing methodologies used by the Fund and the index. Performance data current to the most recent month-end is available at www.pimcoetfs.com or via (888) 400-4ETF.
The Fund’s total annual operating expense ratio in effect as of period end was 0.39%. Details regarding any changes to the Fund’s operating expenses, subsequent to period end, can be found in the Fund’s current prospectus, as supplemented.
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Ticker symbol - MFUS |
Sector Breakdown as of 12/31/20171§
Information Technology | 20.3% | |||||||
Consumer Discretionary | 17.0% | |||||||
Industrials | 13.1% | |||||||
Consumer Staples | 12.6% | |||||||
Financials | 9.9% | |||||||
Health Care | 8.9% | |||||||
Energy | 5.3% | |||||||
Materials | 4.5% | |||||||
Real Estate | 3.7% | |||||||
Telecommunication Services | 2.7% | |||||||
Utilities | 2.0% |
1 % of Investments, at value.
§ Sector Breakdown and % of Investments exclude securities sold short, financial derivative instruments and short-term instruments, if any.
Fund Insights
The following affected performance during the reporting period:
» | Holdings in the consumer discretionary sector contributed to absolute returns for both the Fund and the Underlying Index. |
» | Holdings in the industrial sector contributed to absolute returns for both the Fund and the Underlying Index. |
» | Holdings in the information technology sector contributed to absolute returns for both the Fund and the Underlying Index. |
» | Holdings in the financial sector contributed to absolute returns for both the Fund and the Underlying Index. |
» | Holdings in the energy sector contributed to absolute returns for both the Fund and the Underlying Index. |
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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 July 1, 2017 to December 31, 2017 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 this information, 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 row 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 (07/01/17)(a) | Ending Account Value (12/31/17) | Expenses Paid During Period* | Beginning Account Value (07/01/17) | Ending Account Value (12/31/17) | Expenses Paid During Period* | Net Annualized Expense Ratio** | ||||||||||||||||||||||||||||||||||
PIMCO RAFI Dynamic Multi-Factor Emerging Markets Equity ETF | $ | 1,000.00 | $ | 1,043.40 | $ | 1.69 | $ | 1,000.00 | $ | 1,022.36 | $ | 2.46 | 0.49 | % | ||||||||||||||||||||||||||
PIMCO RAFI Dynamic Multi-Factor International Equity ETF | 1,000.00 | 1,071.60 | 1.36 | 1,000.00 | 1,022.81 | 2.01 | 0.39 | |||||||||||||||||||||||||||||||||
PIMCO RAFI Dynamic Multi-Factor U.S. Equity ETF | 1,000.00 | 1,111.10 | 1.21 | 1,000.00 | 1,023.11 | 1.71 | 0.34 |
(a) The Beginning Account Value is reflective as of 08/31/2017 for Actual expense, which is the inception date of the Funds.
* 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 123/365 (to reflect the actual days in the period). Overall fees and expenses of investing in the Fund will be higher because the example does not reflect variable contract fees and expenses.
** Net Annualized Expense Ratio is reflective of any applicable contractual fee waivers and/or expense reimbursements or voluntary fee waivers. Details regarding fee waivers, if any, can be found in Note 8, Fees and Expenses, in the Notes to Financial Statements.
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Investment Operations | Less Distributions(b) | |||||||||||||||||||||||||||||||||||
Selected Per Share Data for the Period Ended:^ | Net Asset Value | Net Investment Income (Loss)(a) | Net Realized/ Unrealized Gain (Loss) | Total | From Net Investment Income | From Net Realized Capital Gains | Tax Basis Return of Capital | Total | ||||||||||||||||||||||||||||
PIMCO RAFI Dynamic Multi-Factor Emerging Markets Equity ETF | ||||||||||||||||||||||||||||||||||||
08/31/2017 - 12/31/2017+ | $ | 25.00 | $ | 0.21 | $ | 0.87 | $ | 1.08 | $ | (0.05 | ) | $ | 0.00 | $ | 0.00 | $ | (0.05 | ) | ||||||||||||||||||
PIMCO RAFI Dynamic Multi-Factor International Equity ETF | ||||||||||||||||||||||||||||||||||||
08/31/2017 - 12/31/2017+ | $ | 25.00 | $ | 0.14 | $ | 1.65 | $ | 1.79 | $ | (0.19 | ) | $ | 0.00 | $ | 0.00 | $ | (0.19 | ) | ||||||||||||||||||
PIMCO RAFI Dynamic Multi-Factor U.S. Equity ETF | ||||||||||||||||||||||||||||||||||||
08/31/2017 - 12/31/2017+ | $ | 25.00 | $ | 0.17 | $ | 2.61 | $ | 2.78 | $ | (0.28 | ) | $ | 0.00 | $ | 0.00 | $ | (0.28 | ) |
^ | A zero balance may reflect actual amounts rounding to less than $0.01 or 0.01%. |
+ | Unaudited |
* | Annualized |
(a) | Per share amounts based on average number of shares outstanding during the year or period. |
(b) | The tax characterization of distributions is determined in accordance with Federal income tax regulations. The actual tax characterization of distributions paid is determined at the end of the fiscal year. See Note 2, Distributions to Shareholders, in the Notes to Financial Statements for more information. |
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Ratios/Supplemental Data | ||||||||||||||||||||||||||||||||||
Ratios to Average Net Assets | ||||||||||||||||||||||||||||||||||
Net Asset Value End Of Period | Total Return | Net Assets End of Period (000s) | Expenses | Expenses Excluding Waivers | Expenses Excluding Interest Expense | Expenses Excluding Interest Expense and Waivers | Net Investment Income (Loss) | Portfolio Turnover Rate | ||||||||||||||||||||||||||
$ | 26.03 | 4.34 | % | $ | 107,262 | 0.49 | %* | 0.49 | %* | 0.49 | %* | 0.49 | %* | 2.49 | %* | 33 | % | |||||||||||||||||
$ | 26.60 | 7.16 | % | $ | 24,472 | 0.40 | %* | 0.40 | %* | 0.40 | %* | 0.40 | %* | 1.65 | %* | 23 | % | |||||||||||||||||
$ | 27.50 | 11.11 | % | $ | 17,051 | 0.34 | %* | 0.34 | %* | 0.34 | %* | 0.34 | %* | 1.90 | %* | 17 | % |
SEMIANNUAL REPORT | DECEMBER 31, 2017 | 15 |
Table of Contents
Statements of Assets and Liabilities
December 31, 2017 (Unaudited)
(Amounts in thousands†, except per share amounts) | PIMCO RAFI Dynamic Multi-Factor Emerging Markets | PIMCO RAFI Dynamic Multi-Factor International Equity ETF | PIMCO RAFI Dynamic Multi-Factor U.S. Equity ETF | |||||||||
Assets: | ||||||||||||
Investments, at value | ||||||||||||
Investments in securities | $ | 106,368 | $ | 24,358 | $ | 16,979 | ||||||
Cash | 682 | 234 | 210 | |||||||||
Foreign currency, at value | 121 | 20 | 0 | |||||||||
Receivable for investments sold | 0 | 10 | 24 | |||||||||
Interest and/or dividends receivable | 359 | 35 | 24 | |||||||||
Total Assets | 107,530 | 24,657 | 17,237 | |||||||||
Liabilities: | ||||||||||||
Payable for investments purchased | $ | 0 | $ | 0 | $ | 8 | ||||||
Distributions payable | 222 | 176 | 173 | |||||||||
Accrued management fees | 45 | 9 | 5 | |||||||||
Other liabilities | 1 | 0 | 0 | |||||||||
Total Liabilities | 268 | 185 | 186 | |||||||||
Net Assets | $ | 107,262 | $ | 24,472 | $ | 17,051 | ||||||
Net Assets Consist of: | ||||||||||||
Paid in capital | $ | 103,857 | $ | 23,030 | $ | 14,577 | ||||||
Undistributed (overdistributed) net investment income | 188 | (42 | ) | (18 | ) | |||||||
Accumulated undistributed net realized gain (loss) | (436 | ) | 371 | 1,415 | ||||||||
Net unrealized appreciation (depreciation) | 3,653 | 1,113 | 1,077 | |||||||||
Net Assets | $ | 107,262 | $ | 24,472 | $ | 17,051 | ||||||
Shares Issued and Outstanding | 4,120 | 920 | 620 | |||||||||
Net Asset Value Per Share Outstanding: | $ | 26.03 | $ | 26.60 | $ | 27.50 | ||||||
Cost of investments in securities | $ | 102,717 | $ | 23,245 | $ | 15,902 | ||||||
Cost of foreign currency held | $ | 120 | $ | 20 | $ | 0 |
† | A zero balance may reflect actual amounts rounding to less than one thousand. |
16 | PIMCO EQUITY SERIES | See Accompanying Notes |
Table of Contents
Inception date through December 31, 2017 (Unaudited) | ||||||||||||
(Amounts in thousands†) | PIMCO RAFI Dynamic Multi-Factor Emerging Markets Equity ETF(1) | PIMCO RAFI Dynamic Multi-Factor International Equity ETF(1) | PIMCO RAFI Dynamic Multi-Factor U.S. Equity ETF(1) | |||||||||
Investment Income: | ||||||||||||
Dividends, net of foreign taxes* | $ | 491 | $ | 167 | $ | 183 | ||||||
Total Income | 491 | 167 | 183 | |||||||||
Expenses: | ||||||||||||
Management fees | 80 | 32 | 24 | |||||||||
Miscellaneous expense | 1 | 1 | 4 | |||||||||
Total Expenses | 81 | 33 | 28 | |||||||||
Net Investment Income (Loss) | 410 | 134 | 155 | |||||||||
Net Realized Gain (Loss): | ||||||||||||
Investments in securities | (396 | ) | 372 | 1,415 | ||||||||
Over the counter financial derivative instruments | 3 | (3 | ) | 0 | ||||||||
Foreign currency | (43 | ) | 2 | 0 | ||||||||
Net Realized Gain (Loss) | (436 | ) | 371 | 1,415 | ||||||||
Net Change in Unrealized Appreciation (Depreciation): | ||||||||||||
Investments in securities | 3,651 | 1,113 | 1,077 | |||||||||
Foreign currency assets and liabilities | 2 | 0 | 0 | |||||||||
Net Change in Unrealized Appreciation (Depreciation) | 3,653 | 1,113 | 1,077 | |||||||||
Net Increase (Decrease) in Net Assets Resulting from Operations | $ | 3,627 | $ | 1,618 | $ | 2,647 | ||||||
* Foreign tax withholdings - Dividends | $ | 100 | $ | 17 | $ | 0 |
† | A zero balance may reflect actual amounts rounding to less than one thousand. |
(1) | Period from August 31, 2017 to December 31, 2017. |
See Accompanying Notes | SEMIANNUAL REPORT | DECEMBER 31, 2017 | 17 |
Table of Contents
Statements of Changes in Net Assets
PIMCO | PIMCO RAFI Dynamic Multi-Factor International Equity ETF | PIMCO RAFI Dynamic Multi-Factor U.S. Equity ETF | ||||||||||
(Amounts in thousands†) | Inception date through December 31, 2017 (Unaudited) | Inception date through December 31, 2017 (Unaudited) | Inception date through December 31, 2017 (Unaudited) | |||||||||
Increase (Decrease) in Net Assets from: | ||||||||||||
Operations: | ||||||||||||
Net investment income (loss) | $ | 410 | $ | 134 | $ | 155 | ||||||
Net realized gain (loss) | (436 | ) | 371 | 1,415 | ||||||||
Net change in unrealized appreciation (depreciation) | 3,653 | 1,113 | 1,077 | |||||||||
Net Increase (Decrease) in Net Assets Resulting from Operations | 3,627 | 1,618 | 2,647 | |||||||||
Distributions to Shareholders: | ||||||||||||
From net investment income | (222 | ) | (176 | ) | (173 | ) | ||||||
Total Distributions(a) | (222 | ) | (176 | ) | (173 | ) | ||||||
Fund Share Transactions: | ||||||||||||
Receipts for shares sold | 103,857 | 28,284 | 30,884 | |||||||||
Cost of shares redeemed | 0 | (5,254 | ) | (16,307 | ) | |||||||
Net increase (decrease) resulting from Fund share transactions | 103,857 | 23,030 | 14,577 | |||||||||
Total Increase (Decrease) in Net Assets | 107,262 | 24,472 | 17,051 | |||||||||
Net Assets: | ||||||||||||
Beginning of period | 0 | 0 | 0 | |||||||||
End of period* | $ | 107,262 | $ | 24,472 | $ | 17,051 | ||||||
* Including undistributed (overdistributed) net investment income of: | $ | 188 | $ | (42 | ) | $ | (18 | ) | ||||
Shares of Beneficial Interest: | ||||||||||||
Shares sold | 4,120 | 1,120 | 1,220 | |||||||||
Net increase (decrease) in shares outstanding | 4,120 | 1,120 | 1,220 |
† | A zero balance may reflect actual amounts rounding to less than one thousand. |
(a) | The tax characterization of distributions is determined in accordance with Federal income tax regulations. The actual tax characterization of distributions paid is determined at the end of the fiscal year. See Note 2, Distributions to Shareholders, in the Notes to Financial Statements for more information. |
18 | PIMCO EQUITY SERIES | See Accompanying Notes |
Table of Contents
Schedule of Investments PIMCO RAFI Dynamic Multi-Factor Emerging Markets Equity ETF
December 31, 2017 (Unaudited)
SHARES | MARKET VALUE (000S) | |||||||||||
INVESTMENTS IN SECURITIES 99.2% | ||||||||||||
COMMON STOCKS 91.4% | ||||||||||||
BRAZIL 4.7% | ||||||||||||
CONSUMER DISCRETIONARY 0.5% | ||||||||||||
Cyrela Brazil Realty S.A. Empreendimentos e Participacoes | 12,600 | $ | 50 | |||||||||
Kroton Educacional S.A. | 28,700 | 160 | ||||||||||
Lojas Renner S.A. | 27,900 | 298 | ||||||||||
Via Varejo S.A. | 9,100 | 67 | ||||||||||
|
| |||||||||||
575 | ||||||||||||
|
| |||||||||||
CONSUMER STAPLES 1.3% | ||||||||||||
Ambev S.A. ADR | 97,149 | 628 | ||||||||||
BRF S.A. (a) | 41,200 | 455 | ||||||||||
JBS S.A. | 32,300 | 95 | ||||||||||
M Dias Branco S.A. | 2,100 | 33 | ||||||||||
Natura Cosmeticos S.A. | 8,200 | 82 | ||||||||||
Raia Drogasil S.A. | 2,000 | 55 | ||||||||||
|
| |||||||||||
1,348 | ||||||||||||
|
| |||||||||||
ENERGY 0.8% | ||||||||||||
Petroleo Brasileiro S.A. SP - ADR (a) | 44,528 | 458 | ||||||||||
Ultrapar Participacoes S.A. | 18,500 | 419 | ||||||||||
|
| |||||||||||
877 | ||||||||||||
|
| |||||||||||
FINANCIALS 0.5% | ||||||||||||
B3 SA - Brasil Bolsa Balcao | 35,100 | 241 | ||||||||||
Banco do Brasil S.A. | 22,700 | 218 | ||||||||||
BB Seguridade Participacoes S.A. | 6,300 | 54 | ||||||||||
Porto Seguro S.A. | 2,000 | 22 | ||||||||||
Sul America S.A. | 9,100 | 51 | ||||||||||
|
| |||||||||||
586 | ||||||||||||
|
| |||||||||||
INDUSTRIALS 0.2% | ||||||||||||
Embraer S.A. SP - ADR | 1,891 | 45 | ||||||||||
WEG S.A. | 20,100 | 146 | ||||||||||
|
| |||||||||||
191 | ||||||||||||
|
| |||||||||||
MATERIALS 1.1% | ||||||||||||
Cia Siderurgica Nacional S.A. (a) | 57,000 | 144 | ||||||||||
Fibria Celulose S.A. | 11,200 | 162 | ||||||||||
Vale S.A. SP - ADR | 68,081 | 832 | ||||||||||
|
| |||||||||||
1,138 | ||||||||||||
|
| |||||||||||
TELECOMMUNICATION SERVICES 0.0% | ||||||||||||
TIM Participacoes S.A. ADR | 2,508 | 48 | ||||||||||
|
| |||||||||||
UTILITIES 0.3% | ||||||||||||
AES Tiete Energia S.A. | 12,000 | 46 | ||||||||||
Cia de Saneamento de Minas Gerais-COPASA | 2,800 | 37 | ||||||||||
Eletropaulo Metropolitana Eletricidade de Sao Paulo S.A. | 13,100 | 64 | ||||||||||
Engie Brasil Energia S.A. | 8,100 | 87 | ||||||||||
Light S.A. (a) | 4,000 | 20 | ||||||||||
Transmissora Alianca de Energia Eletrica S.A. | 10,400 | 67 | ||||||||||
|
| |||||||||||
321 | ||||||||||||
|
| |||||||||||
Total Brazil | 5,084 | |||||||||||
|
|
SHARES | MARKET VALUE (000S) | |||||||||||
CHILE 2.3% | ||||||||||||
CONSUMER DISCRETIONARY 0.1% | ||||||||||||
SACI Falabella | 16,184 | $ | 162 | |||||||||
|
| |||||||||||
CONSUMER STAPLES 0.4% | ||||||||||||
Cencosud S.A. | 75,592 | 222 | ||||||||||
Cia Cervecerias Unidas S.A. SP - ADR | 6,039 | 179 | ||||||||||
|
| |||||||||||
401 | ||||||||||||
|
| |||||||||||
ENERGY 0.1% | ||||||||||||
Empresas COPEC S.A. | 10,108 | 160 | ||||||||||
|
| |||||||||||
FINANCIALS 0.3% | ||||||||||||
Banco de Chile | 915,432 | 147 | ||||||||||
Banco de Credito e Inversiones | 682 | 47 | ||||||||||
Banco Santander Chile ADR | 2,698 | 84 | ||||||||||
Itau CorpBanca | 5,842,897 | 53 | ||||||||||
Sociedad Matriz del Banco de Chile S.A. ‘B’ | 66,481 | 34 | ||||||||||
|
| |||||||||||
365 | ||||||||||||
|
| |||||||||||
INDUSTRIALS 0.4% | ||||||||||||
Cia Sud Americana de Vapores S.A. (a) | 2,125,975 | 114 | ||||||||||
Latam Airlines Group S.A. | 19,011 | 268 | ||||||||||
|
| |||||||||||
382 | ||||||||||||
|
| |||||||||||
MATERIALS 0.3% | ||||||||||||
CAP S.A. | 2,190 | 28 | ||||||||||
Empresas CMPC S.A. | 36,551 | 125 | ||||||||||
Sociedad Quimica y Minera de Chile S.A. SP - ADR | 3,221 | 191 | ||||||||||
|
| |||||||||||
344 | ||||||||||||
|
| |||||||||||
TELECOMMUNICATION SERVICES 0.1% | ||||||||||||
Empresa Nacional de Telecomunicaciones S.A. | 5,154 | 58 | ||||||||||
|
| |||||||||||
UTILITIES 0.6% | ||||||||||||
AES Gener S.A. | 125,694 | 41 | ||||||||||
Aguas Andinas S.A. ‘A’ | 84,666 | 56 | ||||||||||
Colbun S.A. | 189,179 | 42 | ||||||||||
Enel Americas S.A. | 1,366,420 | 304 | ||||||||||
Enel Chile S.A. | 249,530 | 30 | ||||||||||
Enel Generacion Chile S.A. | 186,242 | 169 | ||||||||||
|
| |||||||||||
642 | ||||||||||||
|
| |||||||||||
Total Chile | 2,514 | |||||||||||
|
| |||||||||||
CHINA 17.1% | ||||||||||||
CONSUMER DISCRETIONARY 3.0% | ||||||||||||
ANTA Sports Products Ltd. | 37,000 | 168 | ||||||||||
BAIC Motor Corp. Ltd. | 23,500 | 30 | ||||||||||
BYD Co. Ltd. ‘H’ | 15,500 | 135 | ||||||||||
China ZhengTong Auto Services Holdings Ltd. | 59,000 | 59 | ||||||||||
Dongfeng Motor Group Co. Ltd. ‘H’ | 42,000 | 51 | ||||||||||
Geely Automobile Holdings Ltd. | 146,000 | 503 | ||||||||||
Great Wall Motor Co. Ltd. ‘H’ | 150,500 | 172 | ||||||||||
Guangzhou Automobile Group Co. Ltd. ‘H’ | 56,000 | 132 |
SHARES | MARKET VALUE (000S) | |||||||||||
JD.com, Inc. ADR (a) | 32,029 | $ | 1,327 | |||||||||
Shenzhou International Group Holdings Ltd. | 30,000 | 286 | ||||||||||
Yum China Holdings, Inc. | 8,641 | 346 | ||||||||||
Zhongsheng Group Holdings Ltd. | 9,500 | 21 | ||||||||||
|
| |||||||||||
3,230 | ||||||||||||
|
| |||||||||||
CONSUMER STAPLES 1.0% | ||||||||||||
Dali Foods Group Co. Ltd. | 57,000 | 52 | ||||||||||
Hengan International Group Co. Ltd. | 40,000 | 443 | ||||||||||
Tingyi Cayman Islands Holding Corp. | 120,000 | 234 | ||||||||||
Tsingtao Brewery Co. Ltd. ‘H’ | 2,000 | 10 | ||||||||||
Uni-President China Holdings Ltd. | 50,000 | 42 | ||||||||||
Want Want China Holdings Ltd. | 311,000 | 260 | ||||||||||
|
| |||||||||||
1,041 | ||||||||||||
|
| |||||||||||
ENERGY 1.0% | ||||||||||||
China Petroleum & Chemical Corp. ‘H’ | 1,114,000 | 816 | ||||||||||
China Shenhua Energy Co. Ltd. ‘H’ | 51,000 | 132 | ||||||||||
CNOOC Ltd. | 110,000 | 158 | ||||||||||
|
| |||||||||||
1,106 | ||||||||||||
|
| |||||||||||
FINANCIALS 2.4% | ||||||||||||
China Life Insurance Co. Ltd. ‘H’ | 174,000 | 543 | ||||||||||
China Merchants Bank Co. Ltd. ‘H’ | 91,000 | 360 | ||||||||||
China Reinsurance Group Corp. ‘H’ | 257,000 | 58 | ||||||||||
New China Life Insurance Co. Ltd. ‘H’ | 25,900 | 177 | ||||||||||
People’s Insurance Co. Group of China Ltd. ‘H’ | 157,000 | 77 | ||||||||||
PICC Property & Casualty Co. Ltd. ‘H’ | 104,000 | 199 | ||||||||||
Ping An Insurance Group Co. of China Ltd. ‘H’ | 116,000 | 1,203 | ||||||||||
|
| |||||||||||
2,617 | ||||||||||||
|
| |||||||||||
HEALTH CARE 0.0% | ||||||||||||
Shanghai Fosun Pharmaceutical Group Co. Ltd. | 4,500 | 29 | ||||||||||
|
| |||||||||||
INDUSTRIALS 0.8% | ||||||||||||
Air China Ltd. ‘H’ | 42,000 | 51 | ||||||||||
Beijing Capital International Airport Co. Ltd. ‘H’ | 40,000 | 60 | ||||||||||
China Southern Airlines Co. Ltd. ‘H’ | 118,000 | 122 | ||||||||||
COSCO SHIPPING Holdings Co. Ltd. ‘H’ (a) | 93,500 | 48 | ||||||||||
Fosun International Ltd. | 53,000 | 117 | ||||||||||
Jiangsu Expressway Co. Ltd. ‘H’ | 42,000 | 64 | ||||||||||
Shanghai Electric Group Co. Ltd. ‘H’ | 36,000 | 15 | ||||||||||
Sinopec Engineering Group Co. Ltd. ‘H’ | 60,000 | 57 | ||||||||||
Sinotrans Ltd. ‘H’ | 56,000 | 27 | ||||||||||
Sinotruk Hong Kong Ltd. | 41,500 | 47 | ||||||||||
Weichai Power Co. Ltd. ‘H’ | 40,000 | 44 | ||||||||||
Yangzijiang Shipbuilding Holdings Ltd. | 120,700 | 132 | ||||||||||
Zhejiang Expressway Co. Ltd. ‘H’ | 40,000 | 44 | ||||||||||
|
| |||||||||||
828 | ||||||||||||
|
|
See Accompanying Notes | SEMIANNUAL REPORT | DECEMBER 31, 2017 | 19 |
Table of Contents
Schedule of Investments PIMCO RAFI Dynamic Multi-Factor Emerging Markets Equity ETF (Cont.)
SHARES | MARKET VALUE (000S) | |||||||||||
INFORMATION TECHNOLOGY 5.7% | ||||||||||||
AAC Technologies Holdings, Inc. | 27,500 | $ | 487 | |||||||||
Alibaba Group Holding Ltd. SP -ADR (a) | 10,545 | 1,818 | ||||||||||
Baidu, Inc. SP - ADR (a) | 5,762 | 1,349 | ||||||||||
BYD Electronic International Co. Ltd. | 10,000 | 22 | ||||||||||
FIH Mobile Ltd. | 127,000 | 39 | ||||||||||
Lenovo Group Ltd. | 378,000 | 213 | ||||||||||
Tencent Holdings Ltd. | 42,100 | 2,179 | ||||||||||
ZTE Corp. ‘H’ | 17,800 | 66 | ||||||||||
|
| |||||||||||
6,173 | ||||||||||||
|
| |||||||||||
MATERIALS 0.9% | ||||||||||||
Aluminum Corp. of China Ltd. ‘H’ (a) | 128,000 | 91 | ||||||||||
Angang Steel Co. Ltd. ‘H’ | 4,000 | 4 | ||||||||||
Anhui Conch Cement Co. Ltd. ‘H’ | 26,500 | 124 | ||||||||||
BBMG Corp. ‘H’ | 55,500 | 25 | ||||||||||
China BlueChemical Ltd. ‘H’ | 90,000 | 28 | ||||||||||
China Molybdenum Co. Ltd. ‘H’ | 116,000 | 74 | ||||||||||
China National Building Material Co. Ltd. ‘H’ | 286,000 | 255 | ||||||||||
China National Materials Co. Ltd. ‘H’ | 99,000 | 74 | ||||||||||
China Oriental Group Co. Ltd. | 70,000 | 52 | ||||||||||
Jiangxi Copper Co. Ltd. ‘H’ | 80,000 | 127 | ||||||||||
Sinopec Shanghai Petrochemical Co. Ltd. ‘H’ | 166,000 | 94 | ||||||||||
|
| |||||||||||
948 | ||||||||||||
|
| |||||||||||
REAL ESTATE 1.7% | ||||||||||||
Agile Group Holdings Ltd. | 196,000 | 296 | ||||||||||
China Evergrande Group | 46,000 | 158 | ||||||||||
China Vanke Co. Ltd. ‘H’ | 29,300 | 117 | ||||||||||
CIFI Holdings Group Co. Ltd. | 36,000 | 22 | ||||||||||
Country Garden Holdings Co. Ltd. | 164,000 | 312 | ||||||||||
Greentown China Holdings Ltd. | 41,500 | 53 | ||||||||||
Guangzhou R&F Properties Co. Ltd. ‘H’ | 54,000 | 121 | ||||||||||
Kaisa Group Holdings Ltd. (a) | 262,000 | 147 | ||||||||||
KWG Property Holding Ltd. | 64,000 | 75 | ||||||||||
Logan Property Holdings Co. Ltd. | 16,000 | 17 | ||||||||||
Longfor Properties Co. Ltd. | 24,000 | 60 | ||||||||||
Powerlong Real Estate Holdings Ltd. | 88,000 | 43 | ||||||||||
Shui On Land Ltd. | 129,000 | 36 | ||||||||||
Sino-Ocean Group Holding Ltd. | 170,500 | 117 | ||||||||||
SOHO China Ltd. | 152,500 | 89 | ||||||||||
Sunac China Holdings Ltd. | 45,000 | 185 | ||||||||||
|
| |||||||||||
1,848 | ||||||||||||
|
| |||||||||||
TELECOMMUNICATION SERVICES 0.1% | ||||||||||||
China Communications Services Corp. Ltd. ‘H’ | 104,000 | 70 | ||||||||||
|
| |||||||||||
UTILITIES 0.5% | ||||||||||||
Beijing Jingneng Clean Energy Co. Ltd. ‘H’ | 72,000 | 19 | ||||||||||
CGN Power Co. Ltd. ‘H’ | 261,000 | 71 | ||||||||||
Datang International Power Generation Co. Ltd. ‘H’ | 70,000 | 21 | ||||||||||
ENN Energy Holdings Ltd. | 41,000 | 291 | ||||||||||
Huadian Fuxin Energy Corp. Ltd. ‘H’ | 164,000 | 40 |
SHARES | MARKET VALUE (000S) | |||||||||||
Huaneng Power International, Inc. ‘H’ | 80,000 | $ | 50 | |||||||||
|
| |||||||||||
492 | ||||||||||||
|
| |||||||||||
Total China | 18,382 | |||||||||||
|
| |||||||||||
GREECE 0.6% | ||||||||||||
CONSUMER DISCRETIONARY 0.1% | ||||||||||||
OPAP S.A. | 7,416 | 93 | ||||||||||
|
| |||||||||||
ENERGY 0.0% | ||||||||||||
Motor Oil Hellas Corinth Refineries S.A. | 1,590 | 36 | ||||||||||
|
| |||||||||||
FINANCIALS 0.4% | ||||||||||||
Alpha Bank AE (a) | 63,863 | 137 | ||||||||||
National Bank of Greece S.A. (a) | 430,834 | 164 | ||||||||||
Piraeus Bank S.A. (a) | 24,366 | 90 | ||||||||||
|
| |||||||||||
391 | ||||||||||||
|
| |||||||||||
TELECOMMUNICATION SERVICES 0.1% | ||||||||||||
Hellenic Telecommunications Organization S.A. | 4,465 | 62 | ||||||||||
|
| |||||||||||
UTILITIES 0.0% | ||||||||||||
Public Power Corp. S.A. | 1,491 | 4 | ||||||||||
|
| |||||||||||
Total Greece | 586 | |||||||||||
|
| |||||||||||
HONG KONG 2.5% | ||||||||||||
CONSUMER DISCRETIONARY 0.2% | ||||||||||||
Brilliance China Automotive Holdings Ltd. | 76,000 | 202 | ||||||||||
Dah Chong Hong Holdings Ltd. | 75,000 | 35 | ||||||||||
|
| |||||||||||
237 | ||||||||||||
|
| |||||||||||
CONSUMER STAPLES 0.4% | ||||||||||||
China Agri-Industries Holdings Ltd. | 199,000 | 87 | ||||||||||
China Resources Beer Holdings Co. Ltd. | 92,000 | 330 | ||||||||||
|
| |||||||||||
417 | ||||||||||||
|
| |||||||||||
ENERGY 0.2% | ||||||||||||
Kunlun Energy Co. Ltd. | 202,000 | 210 | ||||||||||
|
| |||||||||||
FINANCIALS 0.5% | ||||||||||||
BOC Hong Kong Holdings Ltd. | 70,500 | 356 | ||||||||||
China Taiping Insurance Holdings Co. Ltd. | 43,200 | 161 | ||||||||||
|
| |||||||||||
517 | ||||||||||||
|
| |||||||||||
INDUSTRIALS 0.1% | ||||||||||||
Beijing Enterprises Holdings Ltd. | 3,000 | 18 | ||||||||||
China State Construction International Holdings Ltd. | 44,000 | 61 | ||||||||||
COSCO SHIPPING Ports Ltd. | 40,000 | 42 | ||||||||||
Tianjin Port Development Holdings Ltd. | 104,000 | 15 | ||||||||||
|
| |||||||||||
136 | ||||||||||||
|
| |||||||||||
MATERIALS 0.1% | ||||||||||||
China Resources Cement Holdings Ltd. | 36,000 | 23 |
SHARES | MARKET VALUE (000S) | |||||||||||
Shougang Fushan Resources Group Ltd. | 134,000 | $ | 29 | |||||||||
Sinofert Holdings Ltd. | 120,000 | 20 | ||||||||||
|
| |||||||||||
72 | ||||||||||||
|
| |||||||||||
REAL ESTATE 0.4% | ||||||||||||
China Jinmao Holdings Group Ltd. | 80,000 | 35 | ||||||||||
China Resources Land Ltd. | 84,000 | 247 | ||||||||||
Poly Property Group Co. Ltd. | 115,000 | 60 | ||||||||||
Yuexiu Property Co. Ltd. | 592,000 | 110 | ||||||||||
|
| |||||||||||
452 | ||||||||||||
|
| |||||||||||
TELECOMMUNICATION SERVICES 0.2% | ||||||||||||
China Unicom Hong Kong Ltd. | 168,000 | 227 | ||||||||||
|
| |||||||||||
UTILITIES 0.4% | ||||||||||||
China Power International Development Ltd. | 372,000 | 98 | ||||||||||
China Resources Gas Group Ltd. | 8,000 | 29 | ||||||||||
China Resources Power Holdings Co. Ltd. | 122,000 | 227 | ||||||||||
Guangdong Investment Ltd. | 40,000 | 53 | ||||||||||
|
| |||||||||||
407 | ||||||||||||
|
| |||||||||||
Total Hong Kong | 2,675 | |||||||||||
|
| |||||||||||
INDIA 6.0% | ||||||||||||
FINANCIALS 2.1% | ||||||||||||
HDFC Bank Ltd. ADR | 22,595 | 2,297 | ||||||||||
|
| |||||||||||
HEALTH CARE 0.7% | ||||||||||||
Dr Reddy’s Laboratories Ltd. ADR | 20,043 | 753 | ||||||||||
|
| |||||||||||
INFORMATION TECHNOLOGY 2.7% | ||||||||||||
Infosys Ltd. SP - ADR | 113,253 | 1,837 | ||||||||||
Wipro Ltd. ADR | 186,746 | 1,021 | ||||||||||
|
| |||||||||||
2,858 | ||||||||||||
|
| |||||||||||
MATERIALS 0.5% | ||||||||||||
Tata Steel Ltd. GDR | 47,432 | 541 | ||||||||||
|
| |||||||||||
Total India | 6,449 | |||||||||||
|
| |||||||||||
INDONESIA 1.8% | ||||||||||||
CONSUMER DISCRETIONARY 0.3% | ||||||||||||
Astra International Tbk PT | 531,400 | 325 | ||||||||||
|
| |||||||||||
CONSUMER STAPLES 0.2% | ||||||||||||
Gudang Garam Tbk PT | 10,200 | 63 | ||||||||||
Hanjaya Mandala Sampoerna Tbk PT | 73,500 | 26 | ||||||||||
Indofood CBP Sukses Makmur Tbk PT | 70,700 | 46 | ||||||||||
Unilever Indonesia Tbk PT | 12,400 | 51 | ||||||||||
|
| |||||||||||
186 | ||||||||||||
|
| |||||||||||
ENERGY 0.3% | ||||||||||||
Indo Tambangraya Megah Tbk PT | 41,200 | 63 | ||||||||||
Tambang Batubara Bukit Asam Persero Tbk PT | 236,000 | 43 | ||||||||||
United Tractors Tbk PT | 72,100 | 188 | ||||||||||
|
| |||||||||||
294 | ||||||||||||
|
|
20 | PIMCO EQUITY SERIES | See Accompanying Notes |
Table of Contents
December 31, 2017 (Unaudited)
SHARES | MARKET VALUE (000S) | |||||||||||
FINANCIALS 0.5% | ||||||||||||
Bank Central Asia Tbk PT | 133,800 | $ | 216 | |||||||||
Bank Negara Indonesia Persero Tbk PT | 127,900 | 93 | ||||||||||
Bank Rakyat Indonesia Persero Tbk PT | 1,020,600 | 274 | ||||||||||
|
| |||||||||||
583 | ||||||||||||
|
| |||||||||||
MATERIALS 0.2% | ||||||||||||
Indah Kiat Pulp & Paper Corp. Tbk PT | 147,400 | 59 | ||||||||||
Indocement Tunggal Prakarsa Tbk PT | 45,500 | 73 | ||||||||||
Semen Indonesia Persero Tbk PT | 115,300 | 84 | ||||||||||
|
| |||||||||||
216 | ||||||||||||
|
| |||||||||||
TELECOMMUNICATION SERVICES 0.3% | ||||||||||||
Telekomunikasi Indonesia Persero Tbk PT | 1,000,100 | 327 | ||||||||||
|
| |||||||||||
Total Indonesia | 1,931 | |||||||||||
|
| |||||||||||
MALAYSIA 2.4% | ||||||||||||
CONSUMER DISCRETIONARY 0.3% | ||||||||||||
Genting Bhd. | 72,100 | 164 | ||||||||||
Genting Malaysia Bhd. | 79,700 | 111 | ||||||||||
UMW Holdings Bhd. (a) | 24,100 | 31 | ||||||||||
|
| |||||||||||
306 | ||||||||||||
|
| |||||||||||
CONSUMER STAPLES 0.3% | ||||||||||||
British American Tobacco Malaysia Bhd. | 4,400 | 44 | ||||||||||
Felda Global Ventures Holdings Bhd. | 154,400 | 64 | ||||||||||
IOI Corp. Bhd. | 85,200 | 96 | ||||||||||
Kuala Lumpur Kepong Bhd. | 8,400 | 52 | ||||||||||
PPB Group Bhd. | 10,400 | 44 | ||||||||||
Sime Darby Plantation Bhd. (a) | 44,800 | 66 | ||||||||||
|
| |||||||||||
366 | ||||||||||||
|
| |||||||||||
ENERGY 0.0% | ||||||||||||
Petronas Dagangan Bhd. | 8,400 | 50 | ||||||||||
|
| |||||||||||
FINANCIALS 0.9% | ||||||||||||
AMMB Holdings Bhd. | 44,800 | 49 | ||||||||||
CIMB Group Holdings Bhd. | 182,000 | 294 | ||||||||||
Hong Leong Bank Bhd. | 12,900 | 54 | ||||||||||
Malayan Banking Bhd. | 156,600 | 379 | ||||||||||
Public Bank Bhd. | 26,900 | 138 | ||||||||||
|
| |||||||||||
914 | ||||||||||||
|
| |||||||||||
INDUSTRIALS 0.2% | ||||||||||||
AirAsia Bhd. | 106,000 | 88 | ||||||||||
Berjaya Corp. Bhd. (a) | 443,100 | 37 | ||||||||||
IJM Corp. Bhd. | 60,900 | 46 | ||||||||||
MISC Bhd. | 26,400 | 48 | ||||||||||
Sime Darby Bhd. | 65,800 | 36 | ||||||||||
|
| |||||||||||
255 | ||||||||||||
|
| |||||||||||
MATERIALS 0.1% | ||||||||||||
Petronas Chemicals Group Bhd. | 28,400 | 54 | ||||||||||
|
|
SHARES | MARKET VALUE (000S) | |||||||||||
REAL ESTATE 0.0% | ||||||||||||
IOI Properties Group Bhd. | 4,800 | $ | 2 | |||||||||
Sime Darby Property Bhd. (a) | 44,800 | 20 | ||||||||||
|
| |||||||||||
22 | ||||||||||||
|
| |||||||||||
TELECOMMUNICATION SERVICES 0.3% | ||||||||||||
Axiata Group Bhd. | 81,500 | 110 | ||||||||||
DiGi.Com Bhd. | 40,800 | 51 | ||||||||||
Maxis Bhd. | 42,300 | 63 | ||||||||||
Telekom Malaysia Bhd. | 32,400 | 51 | ||||||||||
|
| |||||||||||
275 | ||||||||||||
|
| |||||||||||
UTILITIES 0.3% | ||||||||||||
Petronas Gas Bhd. | 10,400 | 45 | ||||||||||
Tenaga Nasional Bhd. | 53,700 | 202 | ||||||||||
YTL Corp. Bhd. | 149,908 | 51 | ||||||||||
|
| |||||||||||
298 | ||||||||||||
|
| |||||||||||
Total Malaysia |
| 2,540 | ||||||||||
|
| |||||||||||
MEXICO 2.2% | ||||||||||||
CONSUMER STAPLES 1.0% | ||||||||||||
Arca Continental S.A.B. de C.V. | 6,400 | 44 | ||||||||||
Coca-Cola Femsa S.A.B. de C.V. SP - ADR | 1,483 | 103 | ||||||||||
Gruma S.A.B. de C.V. ‘B’ | 5,695 | 72 | ||||||||||
Grupo Lala S.A.B. de C.V. | 10,500 | 15 | ||||||||||
Kimberly-Clark de Mexico S.A.B. de C.V. ‘A’ | 67,400 | 119 | ||||||||||
Wal-Mart de Mexico S.A.B. de C.V. | 273,800 | 672 | ||||||||||
|
| |||||||||||
1,025 | ||||||||||||
|
| |||||||||||
FINANCIALS 0.1% | ||||||||||||
Grupo Elektra S.A.B. de C.V. | 2,185 | 78 | ||||||||||
Grupo Financiero Santander Mexico S.A.B. de C.V. ADR ‘B’ | 6,312 | 46 | ||||||||||
|
| |||||||||||
124 | ||||||||||||
|
| |||||||||||
INDUSTRIALS 0.0% | ||||||||||||
Grupo Carso S.A.B. de C.V. | 10,400 | 34 | ||||||||||
|
| |||||||||||
MATERIALS 0.4% | ||||||||||||
Alpek S.A.B. de C.V. | 12,700 | 15 | ||||||||||
Grupo Mexico S.A.B. de C.V. ‘B’ | 114,200 | 377 | ||||||||||
|
| |||||||||||
392 | ||||||||||||
|
| |||||||||||
TELECOMMUNICATION SERVICES 0.6% | ||||||||||||
America Movil S.A.B. de C.V. SP - ADR ‘L’ | 39,181 | 672 | ||||||||||
|
| |||||||||||
UTILITIES 0.1% | ||||||||||||
Infraestructura Energetica Nova S.A.B. de C.V. | 12,200 | 60 | ||||||||||
|
| |||||||||||
Total Mexico | 2,307 | |||||||||||
|
| |||||||||||
PHILIPPINES 1.0% | ||||||||||||
CONSUMER STAPLES 0.0% | ||||||||||||
Universal Robina Corp. | 5,160 | 16 | ||||||||||
|
| |||||||||||
ENERGY 0.0% | ||||||||||||
Petron Corp. | 166,100 | 31 | ||||||||||
|
|
SHARES | MARKET VALUE (000S) | |||||||||||
FINANCIALS 0.4% | ||||||||||||
Ayala Corp. | 7,030 | $ | 143 | |||||||||
Bank of the Philippine Islands | 22,260 | 48 | ||||||||||
BDO Unibank, Inc. | 48,460 | 159 | ||||||||||
Metropolitan Bank & Trust Co. | 49,680 | 101 | ||||||||||
|
| |||||||||||
451 | ||||||||||||
|
| |||||||||||
INDUSTRIALS 0.2% | ||||||||||||
Aboitiz Equity Ventures, Inc. | 31,310 | 46 | ||||||||||
DMCI Holdings, Inc. | 148,200 | 43 | ||||||||||
JG Summit Holdings, Inc. | 32,240 | 46 | ||||||||||
SM Investments Corp. | 3,610 | 72 | ||||||||||
|
| |||||||||||
207 | ||||||||||||
|
| |||||||||||
REAL ESTATE 0.1% | ||||||||||||
Ayala Land, Inc. | 123,500 | 110 | ||||||||||
|
| |||||||||||
TELECOMMUNICATION SERVICES 0.2% | ||||||||||||
Globe Telecom, Inc. | 1,140 | 44 | ||||||||||
PLDT, Inc. | 4,320 | 128 | ||||||||||
|
| |||||||||||
172 | ||||||||||||
|
| |||||||||||
UTILITIES 0.1% | ||||||||||||
Aboitiz Power Corp. | 57,600 | 48 | ||||||||||
Manila Electric Co. | 8,440 | 55 | ||||||||||
�� |
|
| ||||||||||
103 | ||||||||||||
|
| |||||||||||
Total Philippines | 1,090 | |||||||||||
|
| |||||||||||
POLAND 1.9% | ||||||||||||
CONSUMER DISCRETIONARY 0.0% | ||||||||||||
Cyfrowy Polsat S.A. | 6,015 | 43 | ||||||||||
|
| |||||||||||
ENERGY 0.6% | ||||||||||||
Grupa Lotos S.A. | 7,700 | 128 | ||||||||||
Polski Koncern Naftowy ORLEN S.A. | 13,913 | 423 | ||||||||||
Polskie Gornictwo Naftowe i Gazownictwo S.A. | 42,268 | 76 | ||||||||||
|
| |||||||||||
627 | ||||||||||||
|
| |||||||||||
FINANCIALS 0.6% | ||||||||||||
Bank Handlowy w Warszawie S.A. | 2,287 | 54 | ||||||||||
Bank Pekao S.A. | 3,146 | 117 | ||||||||||
Powszechna Kasa Oszczednosci Bank Polski S.A. | 15,513 | 197 | ||||||||||
Powszechny Zaklad Ubezpieczen S.A. | 25,681 | 310 | ||||||||||
|
| |||||||||||
678 | ||||||||||||
|
| |||||||||||
MATERIALS 0.3% | ||||||||||||
Grupa Azoty S.A. | 927 | 18 | ||||||||||
KGHM Polska Miedz S.A. | 6,718 | 214 | ||||||||||
Synthos S.A. | 30,731 | 43 | ||||||||||
|
| |||||||||||
275 | ||||||||||||
|
| |||||||||||
TELECOMMUNICATION SERVICES 0.1% | ||||||||||||
Orange Polska S.A. | 52,516 | 87 | ||||||||||
|
| |||||||||||
UTILITIES 0.3% | ||||||||||||
Enea S.A. | 9,096 | 30 | ||||||||||
Energa S.A. | 20,471 | 75 | ||||||||||
PGE Polska Grupa Energetyczna S.A. (a) | 34,932 | 121 |
See Accompanying Notes | SEMIANNUAL REPORT | DECEMBER 31, 2017 | 21 |
Table of Contents
Schedule of Investments PIMCO RAFI Dynamic Multi-Factor Emerging Markets Equity ETF (Cont.)
SHARES | MARKET VALUE (000S) | |||||||||||
Tauron Polska Energia S.A. | 52,600 | $ | 46 | |||||||||
|
| |||||||||||
272 | ||||||||||||
|
| |||||||||||
Total Poland | 1,982 | |||||||||||
|
| |||||||||||
RUSSIA 5.1% | ||||||||||||
CONSUMER STAPLES 0.4% | ||||||||||||
Magnit PJSC SP - GDR | 7,949 | 216 | ||||||||||
X5 Retail Group NV GDR (a) | 5,305 | 201 | ||||||||||
|
| |||||||||||
417 | ||||||||||||
|
| |||||||||||
ENERGY 2.2% | ||||||||||||
Gazprom Neft PJSC | 9,970 | 42 | ||||||||||
Gazprom PJSC | 374,790 | 843 | ||||||||||
Lukoil PJSC SP - ADR | 17,216 | 981 | ||||||||||
Tatneft PJSC SP - ADR | 10,546 | 519 | ||||||||||
TMK PJSC | 11,640 | 15 | ||||||||||
|
| |||||||||||
2,400 | ||||||||||||
|
| |||||||||||
INFORMATION TECHNOLOGY 0.1% | ||||||||||||
Mail.Ru Group Ltd. SP - GDR (a) | 3,355 | 96 | ||||||||||
|
| |||||||||||
MATERIALS 1.3% | ||||||||||||
Alrosa PJSC | 128,600 | 167 | ||||||||||
Evraz PLC | 3,636 | 17 | ||||||||||
Magnitogorsk Iron & Steel Works PJSC | 93,200 | 68 | ||||||||||
MMC Norilsk Nickel PJSC ADR | 39,681 | 740 | ||||||||||
Novolipetsk Steel PJSC | 57,800 | 148 | ||||||||||
PhosAgro PJSC GDR | 3,268 | 50 | ||||||||||
Polymetal International PLC | 5,135 | 64 | ||||||||||
Severstal PJSC GDR | 8,794 | 134 | ||||||||||
|
| |||||||||||
1,388 | ||||||||||||
|
| |||||||||||
TELECOMMUNICATION SERVICES 0.9% | ||||||||||||
MegaFon PJSC SP - GDR | 16,203 | 150 | ||||||||||
Mobile TeleSystems PJSC SP - ADR | 68,438 | 698 | ||||||||||
Rostelecom PJSC | 49,160 | 54 | ||||||||||
Sistema PJSC FC | 353,000 | 74 | ||||||||||
|
| |||||||||||
976 | ||||||||||||
|
| |||||||||||
UTILITIES 0.2% | ||||||||||||
Mosenergo PJSC | 798,000 | 36 | ||||||||||
OGK-2 PJSC | 2,819,000 | 22 | ||||||||||
Rosseti PJSC | 2,663,000 | 38 | ||||||||||
RusHydro PJSC | 6,065,000 | 77 | ||||||||||
Unipro PJSC | 1,046,000 | 46 | ||||||||||
|
| |||||||||||
219 | ||||||||||||
|
| |||||||||||
Total Russia | 5,496 | |||||||||||
|
| |||||||||||
SOUTH AFRICA 6.0% | ||||||||||||
CONSUMER DISCRETIONARY 2.6% | ||||||||||||
Imperial Holdings Ltd. | 8,550 | 181 | ||||||||||
Mr Price Group Ltd. | 10,008 | 197 | ||||||||||
Naspers Ltd. ‘N’ | 8,141 | 2,255 | ||||||||||
Truworths International Ltd. | 15,130 | 116 | ||||||||||
|
| |||||||||||
2,749 | ||||||||||||
|
| |||||||||||
CONSUMER STAPLES 0.4% | ||||||||||||
Massmart Holdings Ltd. | 4,752 | 54 | ||||||||||
Shoprite Holdings Ltd. | 13,279 | 237 | ||||||||||
Tiger Brands Ltd. | 3,645 | 135 | ||||||||||
|
| |||||||||||
426 | ||||||||||||
|
|
SHARES | MARKET VALUE (000S) | |||||||||||
ENERGY 0.1% | ||||||||||||
Exxaro Resources Ltd. | 4,692 | $ | 62 | |||||||||
|
| |||||||||||
FINANCIALS 0.2% | ||||||||||||
Capitec Bank Holdings Ltd. | 1,235 | 109 | ||||||||||
Discovery Ltd. | 7,643 | 115 | ||||||||||
|
| |||||||||||
224 | ||||||||||||
|
| |||||||||||
HEALTH CARE 0.0% | ||||||||||||
Life Healthcare Group Holdings Ltd. | 18,085 | 41 | ||||||||||
|
| |||||||||||
INDUSTRIALS 0.1% | ||||||||||||
Barloworld Ltd. | 11,214 | 145 | ||||||||||
|
| |||||||||||
MATERIALS 1.5% | ||||||||||||
African Rainbow Minerals Ltd. | 3,961 | 43 | ||||||||||
Anglo American Platinum Ltd. (a) | 610 | 17 | ||||||||||
AngloGold Ashanti Ltd. SP - ADR | 17,819 | 182 | ||||||||||
Gold Fields Ltd. SP - ADR | 91,932 | 395 | ||||||||||
Harmony Gold Mining Co. Ltd. SP - ADR | 19,428 | 36 | ||||||||||
Impala Platinum Holdings Ltd. (a) | 42,930 | 113 | ||||||||||
Kumba Iron Ore Ltd. | 4,497 | 138 | ||||||||||
Sappi Ltd. | 23,131 | 167 | ||||||||||
Sasol Ltd. | 13,308 | 460 | ||||||||||
Sibanye Gold Ltd. ADR | 5,053 | 26 | ||||||||||
|
| |||||||||||
1,577 | ||||||||||||
|
| |||||||||||
TELECOMMUNICATION SERVICES 1.1% | ||||||||||||
MTN Group Ltd. | 71,097 | 785 | ||||||||||
Vodacom Group Ltd. | 32,021 | 375 | ||||||||||
|
| |||||||||||
1,160 | ||||||||||||
|
| |||||||||||
Total South Africa | 6,384 | |||||||||||
|
| |||||||||||
SOUTH KOREA 21.0% | ||||||||||||
CONSUMER DISCRETIONARY 5.0% | ||||||||||||
Coway Co. Ltd. | 1,804 | 164 | ||||||||||
Hankook Tire Co. Ltd. | 2,252 | 115 | ||||||||||
Hanon Systems | 11,407 | 148 | ||||||||||
Hyundai Department Store Co. Ltd. | 554 | 54 | ||||||||||
Hyundai Mobis Co. Ltd. | 3,932 | 966 | ||||||||||
Hyundai Motor Co. | 11,777 | 1,714 | ||||||||||
Hyundai Wia Corp. | 2,350 | 143 | ||||||||||
Kangwon Land, Inc. | 2,873 | 93 | ||||||||||
Kia Motors Corp. | 19,981 | 625 | ||||||||||
LG Electronics, Inc. | 9,085 | 898 | ||||||||||
LOTTE Himart Co. Ltd. | 754 | 49 | ||||||||||
Lotte Shopping Co. Ltd. | 1,068 | 199 | ||||||||||
Mando Corp. | 322 | 93 | ||||||||||
Shinsegae, Inc. | 286 | 80 | ||||||||||
|
| |||||||||||
5,341 | ||||||||||||
|
| |||||||||||
CONSUMER STAPLES 1.3% | ||||||||||||
Amorepacific Corp. | 502 | 143 | ||||||||||
Amorepacific Group | 577 | 76 | ||||||||||
CJ CheilJedang Corp. | 144 | 49 | ||||||||||
E-MART, Inc. | 1,193 | 302 | ||||||||||
GS Retail Co. Ltd. | 63 | 2 | ||||||||||
KT&G Corp. | 4,367 | 471 | ||||||||||
LG Household & Health Care Ltd. | 356 | 396 | ||||||||||
Lotte Chilsung Beverage Co. Ltd. | 1 | 1 | ||||||||||
|
| |||||||||||
1,440 | ||||||||||||
|
|
SHARES | MARKET VALUE (000S) | |||||||||||
ENERGY 1.4% | ||||||||||||
E1 Corp. | 51 | $ | 3 | |||||||||
GS Holdings Corp. | 3,114 | 181 | ||||||||||
S-Oil Corp. | 1,417 | 155 | ||||||||||
SK Gas Ltd. | 474 | 41 | ||||||||||
SK Innovation Co. Ltd. | 5,743 | 1,095 | ||||||||||
|
| |||||||||||
1,475 | ||||||||||||
|
| |||||||||||
FINANCIALS 3.0% | ||||||||||||
BNK Financial Group, Inc. | 8,812 | 77 | ||||||||||
DGB Financial Group, Inc. | 6,652 | 65 | ||||||||||
Dongbu Insurance Co. Ltd. | 1,270 | 85 | ||||||||||
Hana Financial Group, Inc. | 5,086 | 236 | ||||||||||
Hanwha Life Insurance Co. Ltd. | 14,944 | 96 | ||||||||||
Hyundai Marine & Fire Insurance Co. Ltd. | 3,212 | 141 | ||||||||||
Industrial Bank of Korea | 11,581 | 178 | ||||||||||
KB Financial Group, Inc. | 11,249 | 666 | ||||||||||
Meritz Fire & Marine Insurance Co. Ltd. | 2,096 | 46 | ||||||||||
Mirae Asset Daewoo Co. Ltd. | 6,154 | 53 | ||||||||||
NH Investment & Securities Co. Ltd. | 3,812 | 49 | ||||||||||
Samsung Card Co. Ltd. | 1,413 | 52 | ||||||||||
Samsung Fire & Marine Insurance Co. Ltd. | 1,047 | 261 | ||||||||||
Samsung Life Insurance Co. Ltd. | 2,214 | 257 | ||||||||||
Shinhan Financial Group Co. Ltd. | 15,181 | 701 | ||||||||||
Woori Bank | 17,654 | 260 | ||||||||||
|
| |||||||||||
3,223 | ||||||||||||
|
| |||||||||||
INDUSTRIALS 1.8% | ||||||||||||
CJ Corp. | 842 | 143 | ||||||||||
Daelim Industrial Co. Ltd. | 986 | 76 | ||||||||||
Daewoo Engineering & Construction Co. Ltd. (a) | 4,100 | 23 | ||||||||||
Doosan Heavy Industries & Construction Co. Ltd. | 2,651 | 38 | ||||||||||
Doosan Infracore Co. Ltd. (a) | 4,659 | 38 | ||||||||||
GS Engineering & Construction Corp. | 1,997 | 53 | ||||||||||
Hanwha Corp. | 964 | 37 | ||||||||||
Hanwha Techwin Co. Ltd. | 1,374 | 46 | ||||||||||
Hyundai Development Co-Engineering & Construction | 2,384 | 86 | ||||||||||
Hyundai Engineering & Construction Co. Ltd. | 1,656 | 56 | ||||||||||
Hyundai Glovis Co. Ltd. | 309 | 39 | ||||||||||
KCC Corp. | 147 | 52 | ||||||||||
Korean Air Lines Co. Ltd. (a) | 3,777 | 119 | ||||||||||
LG Corp. | 3,904 | 332 | ||||||||||
LG International Corp. | 2,572 | 65 | ||||||||||
Lotte Confectionery Co. Ltd. | 728 | 44 | ||||||||||
LS Corp. | 1,521 | 103 | ||||||||||
Pan Ocean Co. Ltd. | 3,557 | 17 | ||||||||||
Posco Daewoo Corp. | 6,367 | 108 | ||||||||||
Samsung Heavy Industries Co. Ltd. | 12,399 | 85 | ||||||||||
SK Holdings Co. Ltd. | 747 | 197 | ||||||||||
SK Networks Co. Ltd. | 24,747 | 154 | ||||||||||
|
| |||||||||||
1,911 | ||||||||||||
|
| |||||||||||
INFORMATION TECHNOLOGY 4.6% | ||||||||||||
LG Display Co. Ltd. | 21,497 | 598 | ||||||||||
LG Innotek Co. Ltd. | 1,173 | 157 | ||||||||||
NAVER Corp. | 63 | 51 | ||||||||||
Samsung Electro-Mechanics Co. Ltd. | 4,016 | 375 |
22 | PIMCO EQUITY SERIES | See Accompanying Notes |
Table of Contents
December 31, 2017 (Unaudited)
SHARES | MARKET VALUE (000S) | |||||||||||
Samsung Electronics Co. Ltd. | 780 | $ | 1,853 | |||||||||
Samsung SDI Co. Ltd. | 1,013 | 193 | ||||||||||
Samsung SDS Co. Ltd. | 784 | 146 | ||||||||||
SK Hynix, Inc. | 21,843 | 1,552 | ||||||||||
|
| |||||||||||
4,925 | ||||||||||||
|
| |||||||||||
MATERIALS 1.7% | ||||||||||||
Dongkuk Steel Mill Co. Ltd. | 3,066 | 32 | ||||||||||
Hanwha Chemical Corp. | 1,325 | 39 | ||||||||||
Hyundai Steel Co. | 2,984 | 163 | ||||||||||
Kolon Industries, Inc. | 1,250 | 104 | ||||||||||
Korea Zinc Co. Ltd. | 168 | 77 | ||||||||||
LG Chem Ltd. | 855 | 323 | ||||||||||
OCI Co. Ltd. | 843 | 107 | ||||||||||
POSCO | 2,956 | 920 | ||||||||||
SK Chemicals Co. Ltd. | 421 | 33 | ||||||||||
Taekwang Industrial Co. Ltd. | 34 | 42 | ||||||||||
Young Poong Corp. | 2 | 2 | ||||||||||
|
| |||||||||||
1,842 | ||||||||||||
|
| |||||||||||
TELECOMMUNICATION SERVICES 1.1% | ||||||||||||
KT Corp. SP - ADR | 31,762 | 496 | ||||||||||
LG Uplus Corp. | 9,464 | 123 | ||||||||||
SK Telecom Co. Ltd. | 2,469 | 616 | ||||||||||
|
| |||||||||||
1,235 | ||||||||||||
|
| |||||||||||
UTILITIES 1.1% | ||||||||||||
Korea Electric Power Corp. | 29,105 | 1,035 | ||||||||||
Korea Gas Corp. | 3,629 | 144 | ||||||||||
|
| |||||||||||
1,179 | ||||||||||||
|
| |||||||||||
Total South Korea | 22,571 | |||||||||||
|
| |||||||||||
TAIWAN 12.6% | ||||||||||||
CONSUMER DISCRETIONARY 0.3% | ||||||||||||
Cheng Shin Rubber Industry Co. Ltd. | 103,000 | 182 | ||||||||||
Formosa Taffeta Co. Ltd. | 16,000 | 17 | ||||||||||
Hotai Motor Co. Ltd. | 1,000 | 12 | ||||||||||
Pou Chen Corp. | 62,000 | 80 | ||||||||||
Yulon Motor Co. Ltd. | 36,000 | 29 | ||||||||||
|
| |||||||||||
320 | ||||||||||||
|
| |||||||||||
CONSUMER STAPLES 0.5% | ||||||||||||
President Chain Store Corp. | 13,000 | 124 | ||||||||||
Uni-President Enterprises Corp. | 183,000 | 405 | ||||||||||
|
| |||||||||||
529 | ||||||||||||
|
| |||||||||||
ENERGY 0.1% | ||||||||||||
Formosa Petrochemical Corp. | 42,000 | 162 | ||||||||||
|
| |||||||||||
FINANCIALS 1.6% | ||||||||||||
Chang Hwa Commercial Bank Ltd. | 93,000 | 52 | ||||||||||
China Development Financial Holding Corp. | 215,000 | 73 | ||||||||||
CTBC Financial Holding Co. Ltd. | 485,000 | 333 | ||||||||||
E.Sun Financial Holding Co. Ltd. | 116,000 | 74 | ||||||||||
First Financial Holding Co. Ltd. | 282,000 | 185 | ||||||||||
Fubon Financial Holding Co. Ltd. | 214,000 | 364 | ||||||||||
Hua Nan Financial Holdings Co. Ltd. | 131,000 | 74 | ||||||||||
Mega Financial Holding Co. Ltd. | 200,000 | 161 |
SHARES | MARKET VALUE (000S) | |||||||||||
Shin Kong Financial Holding Co. Ltd. | 360,000 | $ | 127 | |||||||||
SinoPac Financial Holdings Co. Ltd. | 273,400 | 89 | ||||||||||
Taishin Financial Holding Co. Ltd. | 285,000 | 132 | ||||||||||
Taiwan Cooperative Financial Holding Co. Ltd. | 173,000 | 96 | ||||||||||
|
| |||||||||||
1,760 | ||||||||||||
|
| |||||||||||
INDUSTRIALS 0.4% | ||||||||||||
China Airlines Ltd. (a) | 170,000 | 67 | ||||||||||
Eva Airways Corp. | 132,000 | 70 | ||||||||||
Far Eastern New Century Corp. | 67,000 | 60 | ||||||||||
Taiwan High Speed Rail Corp. | 76,000 | 60 | ||||||||||
Walsin Lihwa Corp. | 231,000 | 136 | ||||||||||
Wan Hai Lines Ltd. | 84,000 | 54 | ||||||||||
|
| |||||||||||
447 | ||||||||||||
|
| |||||||||||
INFORMATION TECHNOLOGY 7.4% | ||||||||||||
Acer, Inc. | 142,000 | 115 | ||||||||||
Asustek Computer, Inc. | 23,000 | 216 | ||||||||||
AU Optronics Corp. | 314,000 | 131 | ||||||||||
Catcher Technology Co. Ltd. | 10,000 | 110 | ||||||||||
Compal Electronics, Inc. | 230,000 | 165 | ||||||||||
Foxconn Technology Co. Ltd. | 38,000 | 108 | ||||||||||
Hon Hai Precision Industry Co. Ltd. | 665,000 | 2,115 | ||||||||||
HTC Corp. | 51,000 | 125 | ||||||||||
Innolux Corp. | 1,398,000 | 580 | ||||||||||
Inventec Corp. | 179,000 | 143 | ||||||||||
Largan Precision Co. Ltd. | 2,300 | 309 | ||||||||||
Lite-On Technology Corp. | 170,000 | 231 | ||||||||||
MediaTek, Inc. | 70,000 | 688 | ||||||||||
Micro-Star International Co. Ltd. | 41,000 | 105 | ||||||||||
Novatek Microelectronics Corp. | 19,000 | 72 | ||||||||||
Pegatron Corp. | 123,000 | 296 | ||||||||||
Powertech Technology, Inc. | 34,000 | 100 | ||||||||||
Quanta Computer, Inc. | 128,000 | 266 | ||||||||||
Synnex Technology International Corp. | 58,000 | 79 | ||||||||||
Taiwan Semiconductor Manufacturing Co. Ltd. SP - ADR | 38,541 | 1,528 | ||||||||||
TPK Holding Co. Ltd. | 12,000 | 34 | ||||||||||
Unimicron Technology Corp. | 61,000 | 33 | ||||||||||
United Microelectronics Corp. | 367,000 | 174 | ||||||||||
Wistron Corp. | 134,000 | 107 | ||||||||||
WPG Holdings Ltd. | 73,000 | 96 | ||||||||||
|
| |||||||||||
7,926 | ||||||||||||
|
| |||||||||||
MATERIALS 1.2% | ||||||||||||
Asia Cement Corp. | 70,000 | 66 | ||||||||||
China Steel Corp. | 162,000 | 135 | ||||||||||
Formosa Chemicals & Fibre Corp. | 70,000 | 242 | ||||||||||
Formosa Plastics Corp. | 96,000 | 318 | ||||||||||
Nan Ya Plastics Corp. | 144,000 | 376 | ||||||||||
Taiwan Cement Corp. | 100,000 | 122 | ||||||||||
|
| |||||||||||
1,259 | ||||||||||||
|
| |||||||||||
TELECOMMUNICATION SERVICES 1.1% | ||||||||||||
Chunghwa Telecom Co. Ltd. | 206,000 | 733 | ||||||||||
Far EasTone Telecommunications Co. Ltd. | 79,000 | 195 |
SHARES | MARKET VALUE (000S) | |||||||||||
Taiwan Mobile Co. Ltd. | 64,000 | $ | 231 | |||||||||
|
| |||||||||||
1,159 | ||||||||||||
|
| |||||||||||
Total Taiwan | 13,562 | |||||||||||
|
| |||||||||||
THAILAND 3.0% | ||||||||||||
CONSUMER STAPLES 0.3% | ||||||||||||
CP ALL PCL | 104,800 | 248 | ||||||||||
Thai Union Group PCL ‘F’ | 120,100 | 73 | ||||||||||
|
| |||||||||||
321 | ||||||||||||
|
| |||||||||||
ENERGY 0.8% | ||||||||||||
Bangchak Corp. PCL | 127,000 | 159 | ||||||||||
IRPC PCL | 1,501,100 | 325 | ||||||||||
Star Petroleum Refining PCL | 177,200 | 93 | ||||||||||
Thai Oil PCL | 78,200 | 248 | ||||||||||
|
| |||||||||||
825 | ||||||||||||
|
| |||||||||||
FINANCIALS 0.2% | ||||||||||||
Bangkok Bank PCL | 31,600 | 196 | ||||||||||
Thanachart Capital PCL | 32,800 | 56 | ||||||||||
|
| |||||||||||
252 | ||||||||||||
|
| |||||||||||
HEALTH CARE 0.0% | ||||||||||||
Bangkok Dusit Medical Services PCL ‘F’ | 76,100 | 49 | ||||||||||
|
| |||||||||||
INDUSTRIALS 0.2% | ||||||||||||
Airports of Thailand PCL | 117,400 | 244 | ||||||||||
|
| |||||||||||
MATERIALS 0.9% | ||||||||||||
Indorama Ventures PCL | 38,800 | 63 | ||||||||||
PTT Global Chemical PCL | 193,300 | 504 | ||||||||||
Siam Cement PCL | 24,300 | 360 | ||||||||||
|
| |||||||||||
927 | ||||||||||||
|
| |||||||||||
REAL ESTATE 0.0% | ||||||||||||
Land & Houses PCL NVDR | 100,000 | 32 | ||||||||||
|
| |||||||||||
TELECOMMUNICATION SERVICES 0.5% | ||||||||||||
Advanced Info Service PCL | 70,600 | 414 | ||||||||||
Total Access Communication PCL | 79,800 | 120 | ||||||||||
|
| |||||||||||
534 | ||||||||||||
|
| |||||||||||
UTILITIES 0.1% | ||||||||||||
Glow Energy PCL | 23,500 | 59 | ||||||||||
Ratchaburi Electricity Generating Holding PCL | 12,200 | 20 | ||||||||||
|
| |||||||||||
79 | ||||||||||||
|
| |||||||||||
Total Thailand | 3,263 | |||||||||||
|
| |||||||||||
TURKEY 1.2% | ||||||||||||
CONSUMER DISCRETIONARY 0.1% | ||||||||||||
Ford Otomotiv Sanayi A/S | 4,306 | 68 | ||||||||||
Tofas Turk Otomobil Fabrikasi A/S | 414 | 4 | ||||||||||
|
| |||||||||||
72 | ||||||||||||
|
| |||||||||||
CONSUMER STAPLES 0.1% | ||||||||||||
BIM Birlesik Magazalar A/S | 4,965 | 102 | ||||||||||
|
|
See Accompanying Notes | SEMIANNUAL REPORT | DECEMBER 31, 2017 | 23 |
Table of Contents
Schedule of Investments PIMCO RAFI Dynamic Multi-Factor Emerging Markets Equity ETF (Cont.)
SHARES | MARKET VALUE (000S) | |||||||||||
ENERGY 0.2% | ||||||||||||
Tupras Turkiye Petrol Rafinerileri A/S | 6,595 | $ | 211 | |||||||||
|
| |||||||||||
FINANCIALS 0.2% | ||||||||||||
Turkiye Halk Bankasi A/S | 14,500 | 41 | ||||||||||
Turkiye Is Bankasi ‘C’ | 18,963 | 35 | ||||||||||
Turkiye Vakiflar Bankasi TAO ‘D’ | 30,421 | 54 | ||||||||||
Yapi ve Kredi Bankasi A/S | 40,874 | 47 | ||||||||||
|
| |||||||||||
177 | ||||||||||||
|
| |||||||||||
INDUSTRIALS 0.2% | ||||||||||||
Turk Hava Yollari AO (a) | 53,644 | 222 | ||||||||||
|
| |||||||||||
MATERIALS 0.1% | ||||||||||||
Eregli Demir ve Celik Fabrikalari TAS | 19,683 | 52 | ||||||||||
|
| |||||||||||
TELECOMMUNICATION SERVICES 0.3% | ||||||||||||
Turk Telekomunikasyon A/S | 35,266 | 60 | ||||||||||
Turkcell Iletisim Hizmetleri A/S | 72,412 | 295 | ||||||||||
|
| |||||||||||
355 | ||||||||||||
|
| |||||||||||
UTILITIES 0.0% | ||||||||||||
Aygaz A/S | 10,016 | 43 | ||||||||||
|
| |||||||||||
Total Turkey | 1,234 | |||||||||||
|
| |||||||||||
Total Common Stocks (Cost $94,679) |
| 98,050 | ||||||||||
|
| |||||||||||
UNITS | ||||||||||||
EQUITY-LINKED SECURITIES 4.7% | ||||||||||||
IRELAND 4.7% | ||||||||||||
CONSUMER DISCRETIONARY 0.3% | ||||||||||||
Citigroup Global Markets Holdings, Inc., Hero MotoCorp Ltd. - Exp. 02/08/2018 | 1,003 | 59 | ||||||||||
Citigroup Global Markets Holdings, Inc., Maruti Suzuki India Ltd. - Exp. 02/08/2018 | 1,817 | 277 | ||||||||||
|
| |||||||||||
336 | ||||||||||||
|
| |||||||||||
CONSUMER STAPLES 0.7% | ||||||||||||
Citigroup Global Markets Holdings, Inc., Hindustan Unilever Ltd. - Exp. 02/08/2018 | 14,526 | 311 | ||||||||||
Citigroup Global Markets Holdings, Inc., ITC Ltd. - Exp. 02/08/2018 | 103,829 | 428 | ||||||||||
|
| |||||||||||
739 | ||||||||||||
|
| |||||||||||
ENERGY 1.3% | ||||||||||||
Citigroup Global Markets Holdings, Inc., Bharat Petroleum Corp. Ltd. - Exp. 02/08/2018 | 12,801 | 104 | ||||||||||
Citigroup Global Markets Holdings, Inc., Coal India Ltd. - Exp. 02/08/2018 | 38,419 | 158 | ||||||||||
Citigroup Global Markets Holdings, Inc., Hindustan Petroleum Corp. Ltd. - Exp. 02/08/2018 | 32,801 | 215 | ||||||||||
Citigroup Global Markets Holdings, Inc., Indian Oil Corp. Ltd. - Exp. 02/08/2018 | 10,004 | 61 |
UNITS | MARKET VALUE (000S) | |||||||||||
Citigroup Global Markets Holdings, Inc., Jindal Steel & Power Ltd. - Exp. 02/08/2018 | 7,195 | $ | 23 | |||||||||
Citigroup Global Markets Holdings, Inc., Reliance Industries Ltd. - Exp. 02/08/2018 | 59,090 | 853 | ||||||||||
|
| |||||||||||
1,414 | ||||||||||||
|
| |||||||||||
FINANCIALS 1.3% | ||||||||||||
Citigroup Global Markets Holdings, Inc., Housing Development Finance Corp. Ltd. - Exp. 02/08/2018 | 23,590 | 632 | ||||||||||
Citigroup Global Markets Holdings, Inc., ICICI Bank Ltd. - Exp. 02/08/2018 | 66,575 | 327 | ||||||||||
Citigroup Global Markets Holdings, Inc., Indiabulls Housing Finance Ltd. - Exp. 02/08/2018 | 1,267 | 24 | ||||||||||
Citigroup Global Markets Holdings, Inc., IndusInd Bank Ltd. - Exp. 02/08/2018 | 8,111 | 209 | ||||||||||
Citigroup Global Markets Holdings, Inc., Kotak Mahindra Bank Ltd. - Exp. 02/08/2018 | 13,190 | 209 | ||||||||||
|
| |||||||||||
1,401 | ||||||||||||
|
| |||||||||||
HEALTH CARE 0.0% | ||||||||||||
Citigroup Global Markets Holdings, Inc., Sun Pharmaceutical Industries Ltd. - Exp. 02/08/2018 | 1,915 | 17 | ||||||||||
|
| |||||||||||
INFORMATION TECHNOLOGY 0.6% | ||||||||||||
Citigroup Global Markets Holdings, Inc., HCL Technologies Ltd. - Exp. 02/08/2018 | 8,672 | 121 | ||||||||||
Citigroup Global Markets Holdings, Inc., Tata Consultancy Services Ltd. - Exp. 02/08/2018 | 9,537 | 403 | ||||||||||
Citigroup Global Markets Holdings, Inc., Tech Mahindra Ltd. - Exp. 02/08/2018 | 9,983 | 79 | ||||||||||
|
| |||||||||||
603 | ||||||||||||
|
| |||||||||||
MATERIALS 0.1% | ||||||||||||
Citigroup Global Markets Holdings, Inc., Asian Paints Ltd. - Exp. 02/08/2018 | 5,846 | 106 | ||||||||||
Citigroup Global Markets Holdings, Inc., Hindalco Industries Ltd. - Exp. 02/08/2018 | 6,186 | 27 | ||||||||||
|
| |||||||||||
133 | ||||||||||||
|
| |||||||||||
TELECOMMUNICATION SERVICES 0.4% | ||||||||||||
Citigroup Global Markets Holdings, Inc., Bharti Airtel Ltd. - Exp. 02/08/2018 | 32,146 | 267 | ||||||||||
Citigroup Global Markets Holdings, Inc., Idea Cellular Ltd. - Exp. 02/08/2018 | 54,312 | 92 | ||||||||||
Citigroup Global Markets Holdings, Inc., Reliance Communications Ltd. - Exp. 02/08/2018 | 87,854 | 50 | ||||||||||
|
| |||||||||||
409 | ||||||||||||
|
| |||||||||||
Total Equity-Linked Securities (Cost $4,841) |
| 5,052 | ||||||||||
|
|
SHARES | MARKET VALUE (000S) | |||||||||||
PREFERRED STOCKS 2.9% | ||||||||||||
BRAZIL 2.3% | ||||||||||||
BANKING & FINANCE 1.3% | ||||||||||||
Banco do Estado do Rio Grande do Sul S.A. | 6,900 | $ | 31 | |||||||||
Itau Unibanco Holding S.A. | 72,600 | 931 | ||||||||||
Itausa - Investimentos Itau S.A. | 135,700 | 442 | ||||||||||
|
| |||||||||||
1,404 | ||||||||||||
|
| |||||||||||
CONSUMER STAPLES 0.1% | ||||||||||||
Cia Brasileira de Distribuicao | 7,300 | 174 | ||||||||||
|
| |||||||||||
MATERIALS 0.5% | ||||||||||||
Braskem S.A. | 12,500 | 161 | ||||||||||
Gerdau S.A. | 58,900 | 220 | ||||||||||
Metalurgica Gerdau S.A. | 71,100 | 124 | ||||||||||
Usinas Siderurgicas de Minas Gerais S.A. | 7,900 | 22 | ||||||||||
|
| |||||||||||
527 | ||||||||||||
|
| |||||||||||
UTILITIES 0.4% | ||||||||||||
Cia de Gas de Sao Paulo - COMGAS | 2,000 | 36 | ||||||||||
Cia de Transmissao de Energia Eletrica Paulista | 100 | 2 | ||||||||||
Cia Energetica de Minas Gerais | 89,669 | 186 | ||||||||||
Cia Energetica de Sao Paulo | 26,700 | 106 | ||||||||||
Cia Paranaense de Energia | 7,900 | 59 | ||||||||||
|
| |||||||||||
389 | ||||||||||||
|
| |||||||||||
Total Brazil | 2,494 | |||||||||||
|
| |||||||||||
CHILE 0.1% | ||||||||||||
CONSUMER STAPLES 0.1% | ||||||||||||
Embotelladora Andina S.A. | 13,997 | 70 | ||||||||||
|
| |||||||||||
Total Chile | 70 | |||||||||||
|
| |||||||||||
RUSSIA 0.5% | ||||||||||||
ENERGY 0.5% | ||||||||||||
Bashneft PJSC | 670 | 16 | ||||||||||
Surgutneftegas OJSC | 687,000 | 334 | ||||||||||
Transneft PJSC | 40 | 123 | ||||||||||
|
| |||||||||||
473 | ||||||||||||
|
| |||||||||||
Total Russia | 473 | |||||||||||
|
| |||||||||||
Total Preferred Stocks (Cost $2,986) | 3,037 | |||||||||||
|
| |||||||||||
REAL ESTATE INVESTMENT TRUSTS 0.2% | ||||||||||||
MEXICO 0.1% | ||||||||||||
REAL ESTATE 0.1% | ||||||||||||
Fibra Uno Administracion S.A. de C.V. | 52,000 | 77 | ||||||||||
|
| |||||||||||
Total Mexico | 77 | |||||||||||
|
| |||||||||||
SOUTH AFRICA 0.1% | ||||||||||||
REAL ESTATE 0.1% | ||||||||||||
Growthpoint Properties Ltd. | 40,501 | 91 |
24 | PIMCO EQUITY SERIES | See Accompanying Notes |
Table of Contents
December 31, 2017 (Unaudited)
SHARES | MARKET VALUE (000S) | |||||||||||
Redefine Properties Ltd. | 70,979 | $ | 61 | |||||||||
|
| |||||||||||
152 | ||||||||||||
|
| |||||||||||
Total South Africa | 152 | |||||||||||
|
| |||||||||||
Total Real Estate Investment Trusts (Cost $211) | 229 | |||||||||||
|
| |||||||||||
Total Investments in Securities (Cost $102,717) | 106,368 | |||||||||||
Total Investments 99.2% (Cost $102,717) | $ | 106,368 | ||||||||||
Other Assets and Liabilities, net 0.8% | 894 | |||||||||||
|
| |||||||||||
Net Assets 100.0% | $ | 107,262 | ||||||||||
|
|
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 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.
The effect of Financial Derivative Instruments on the Statements of Operations for the period ended December 31, 2017:
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 | $ | 3 | $ | 0 | $ | 3 | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
FAIR VALUE MEASUREMENTS
The following is a summary of the fair valuations according to the inputs used as of December 31, 2017 in valuing the Fund’s assets and liabilities:
Category and Subcategory | Level 1 | Level 2 | Level 3 | Fair Value at 12/31/2017 | ||||||||||||
Investments in Securities, at Value |
| |||||||||||||||
Common Stocks | ||||||||||||||||
Brazil | ||||||||||||||||
Consumer Discretionary | $ | 0 | $ | 575 | $ | 0 | $ | 575 | ||||||||
Consumer Staples | 1,293 | 55 | 0 | 1,348 | ||||||||||||
Energy | 458 | 419 | 0 | 877 | ||||||||||||
Financials | 51 | 535 | 0 | 586 | ||||||||||||
Industrials | 45 | 146 | 0 | 191 | ||||||||||||
Materials | 832 | 306 | 0 | 1,138 | ||||||||||||
Telecommunication Services | 48 | 0 | 0 | 48 | ||||||||||||
Utilities | 197 | 124 | 0 | 321 | ||||||||||||
Chile | ||||||||||||||||
Consumer Discretionary | 0 | 162 | 0 | 162 | ||||||||||||
Consumer Staples | 401 | 0 | 0 | 401 | ||||||||||||
Energy | 160 | 0 | 0 | 160 | ||||||||||||
Financials | 365 | 0 | 0 | 365 | ||||||||||||
Industrials | 114 | 268 | 0 | 382 | ||||||||||||
Materials | 316 | 28 | 0 | 344 | ||||||||||||
Telecommunication Services | 58 | 0 | 0 | 58 | ||||||||||||
Utilities | 473 | 169 | 0 | 642 | ||||||||||||
China | ||||||||||||||||
Consumer Discretionary | 2,127 | 1,103 | 0 | 3,230 | ||||||||||||
Consumer Staples | 244 | 797 | 0 | 1,041 | ||||||||||||
Energy | 0 | 1,106 | 0 | 1,106 |
Category and Subcategory | Level 1 | Level 2 | Level 3 | Fair Value at 12/31/2017 | ||||||||||||
Financials | $ | 0 | $ | 2,617 | $ | 0 | $ | 2,617 | ||||||||
Health Care | 29 | 0 | 0 | 29 | ||||||||||||
Industrials | 330 | 498 | 0 | 828 | ||||||||||||
Information Technology | 3,206 | 2,967 | 0 | 6,173 | ||||||||||||
Materials | 0 | 948 | 0 | 948 | ||||||||||||
Real Estate | 77 | 1,771 | 0 | 1,848 | ||||||||||||
Telecommunication Services | 0 | 70 | 0 | 70 | ||||||||||||
Utilities | 0 | 492 | 0 | 492 | ||||||||||||
Greece | ||||||||||||||||
Consumer Discretionary | 93 | 0 | 0 | 93 | ||||||||||||
Energy | 36 | 0 | 0 | 36 | ||||||||||||
Financials | 90 | 301 | 0 | 391 | ||||||||||||
Telecommunication Services | 62 | 0 | 0 | 62 | ||||||||||||
Utilities | 0 | 4 | 0 | 4 | ||||||||||||
Hong Kong | ||||||||||||||||
Consumer Discretionary | 35 | 202 | 0 | 237 | ||||||||||||
Consumer Staples | 0 | 417 | 0 | 417 | ||||||||||||
Energy | 0 | 210 | 0 | 210 | ||||||||||||
Financials | 0 | 517 | 0 | 517 | ||||||||||||
Industrials | 42 | 94 | 0 | 136 | ||||||||||||
Materials | 0 | 72 | 0 | 72 | ||||||||||||
Real Estate | 0 | 452 | 0 | 452 | ||||||||||||
Telecommunication Services | 0 | 227 | 0 | 227 | ||||||||||||
Utilities | 0 | 407 | 0 | 407 |
See Accompanying Notes | SEMIANNUAL REPORT | DECEMBER 31, 2017 | 25 |
Table of Contents
Schedule of Investments PIMCO RAFI Dynamic Multi-Factor Emerging Markets Equity ETF (Cont.)
December 31, 2017 (Unaudited)
Category and Subcategory | Level 1 | Level 2 | Level 3 | Fair Value at 12/31/2017 | ||||||||||||
India | ||||||||||||||||
Financials | $ | 2,297 | $ | 0 | $ | 0 | $ | 2,297 | ||||||||
Health Care | 753 | 0 | 0 | 753 | ||||||||||||
Information Technology | 2,858 | 0 | 0 | 2,858 | ||||||||||||
Materials | 541 | 0 | 0 | 541 | ||||||||||||
Indonesia | ||||||||||||||||
Consumer Discretionary | 0 | 325 | 0 | 325 | ||||||||||||
Consumer Staples | 186 | 0 | 0 | 186 | ||||||||||||
Energy | 231 | 63 | 0 | 294 | ||||||||||||
Financials | 367 | 216 | 0 | 583 | ||||||||||||
Materials | 216 | 0 | 0 | 216 | ||||||||||||
Telecommunication Services | 0 | 327 | 0 | 327 | ||||||||||||
Malaysia | ||||||||||||||||
Consumer Discretionary | 111 | 195 | 0 | 306 | ||||||||||||
Consumer Staples | 322 | 44 | 0 | 366 | ||||||||||||
Energy | 0 | 50 | 0 | 50 | ||||||||||||
Financials | 535 | 379 | 0 | 914 | ||||||||||||
Industrials | 207 | 48 | 0 | 255 | ||||||||||||
Materials | 54 | 0 | 0 | 54 | ||||||||||||
Real Estate | 22 | 0 | 0 | 22 | ||||||||||||
Telecommunication Services | 51 | 224 | 0 | 275 | ||||||||||||
Utilities | 45 | 253 | 0 | 298 | ||||||||||||
Mexico | ||||||||||||||||
Consumer Staples | 1,025 | 0 | 0 | 1,025 | ||||||||||||
Financials | 124 | 0 | 0 | 124 | ||||||||||||
Industrials | 34 | 0 | 0 | 34 | ||||||||||||
Materials | 392 | 0 | 0 | 392 | ||||||||||||
Telecommunication Services | 672 | 0 | 0 | 672 | ||||||||||||
Utilities | 60 | 0 | 0 | 60 | ||||||||||||
Philippines | ||||||||||||||||
Consumer Staples | 16 | 0 | 0 | 16 | ||||||||||||
Energy | 31 | 0 | 0 | 31 | ||||||||||||
Financials | 0 | 451 | 0 | 451 | ||||||||||||
Industrials | 161 | 46 | 0 | 207 | ||||||||||||
Real Estate | 0 | 110 | 0 | 110 | ||||||||||||
Telecommunication Services | 44 | 128 | 0 | 172 | ||||||||||||
Utilities | 103 | 0 | 0 | 103 | ||||||||||||
Poland | ||||||||||||||||
Consumer Discretionary | 43 | 0 | 0 | 43 | ||||||||||||
Energy | 76 | 551 | 0 | 627 | ||||||||||||
Financials | 54 | 624 | 0 | 678 | ||||||||||||
Materials | 61 | 214 | 0 | 275 | ||||||||||||
Telecommunication Services | 0 | 87 | 0 | 87 | ||||||||||||
Utilities | 30 | 242 | 0 | 272 | ||||||||||||
Russia | ||||||||||||||||
Consumer Staples | 203 | 214 | 0 | 417 | ||||||||||||
Energy | 0 | 2,400 | 0 | 2,400 | ||||||||||||
Information Technology | 11 | 85 | 0 | 96 | ||||||||||||
Materials | 31 | 1,357 | 0 | 1,388 | ||||||||||||
Telecommunication Services | 848 | 128 | 0 | 976 | ||||||||||||
Utilities | 159 | 60 | 0 | 219 | ||||||||||||
South Africa | ||||||||||||||||
Consumer Discretionary | 116 | 2,633 | 0 | 2,749 | ||||||||||||
Consumer Staples | 426 | 0 | 0 | 426 | ||||||||||||
Energy | 62 | 0 | 0 | 62 | ||||||||||||
Financials | 109 | 115 | 0 | 224 | ||||||||||||
Health Care | 41 | 0 | 0 | 41 | ||||||||||||
Industrials | 145 | 0 | 0 | 145 | ||||||||||||
Materials | 961 | 616 | 0 | 1,577 | ||||||||||||
Telecommunication Services | 0 | 1,160 | 0 | 1,160 | ||||||||||||
South Korea | ||||||||||||||||
Consumer Discretionary | 2,062 | 3,279 | 0 | 5,341 | ||||||||||||
Consumer Staples | 1,087 | 353 | 0 | 1,440 |
Category and Subcategory | Level 1 | Level 2 | Level 3 | Fair Value at 12/31/2017 | ||||||||||||
Energy | $ | 0 | $ | 1,475 | $ | 0 | $ | 1,475 | ||||||||
Financials | 85 | 3,138 | 0 | 3,223 | ||||||||||||
Industrials | 421 | 1,490 | 0 | 1,911 | ||||||||||||
Information Technology | 0 | 4,925 | 0 | 4,925 | ||||||||||||
Materials | 442 | 1,400 | 0 | 1,842 | ||||||||||||
Telecommunication Services | 1,235 | 0 | 0 | 1,235 | ||||||||||||
Utilities | 0 | 1,179 | 0 | 1,179 | ||||||||||||
Taiwan | ||||||||||||||||
Consumer Discretionary | 182 | 138 | 0 | 320 | ||||||||||||
Consumer Staples | 0 | 529 | 0 | 529 | ||||||||||||
Energy | 0 | 162 | 0 | 162 | ||||||||||||
Financials | 89 | 1,671 | 0 | 1,760 | ||||||||||||
Industrials | 0 | 447 | 0 | 447 | ||||||||||||
Information Technology | 2,135 | 5,791 | 0 | 7,926 | ||||||||||||
Materials | 0 | 1,259 | 0 | 1,259 | ||||||||||||
Telecommunication Services | 426 | 733 | 0 | 1,159 | ||||||||||||
Thailand | ||||||||||||||||
Consumer Staples | 0 | 321 | 0 | 321 | ||||||||||||
Energy | 0 | 825 | 0 | 825 | ||||||||||||
Financials | 0 | 252 | 0 | 252 | ||||||||||||
Health Care | 0 | 49 | 0 | 49 | ||||||||||||
Industrials | 0 | 244 | 0 | 244 | ||||||||||||
Materials | 0 | 927 | 0 | 927 | ||||||||||||
Real Estate | 32 | 0 | 0 | 32 | ||||||||||||
Telecommunication Services | 0 | 534 | 0 | 534 | ||||||||||||
Utilities | 0 | 79 | 0 | 79 | ||||||||||||
Turkey | ||||||||||||||||
Consumer Discretionary | 68 | 4 | 0 | 72 | ||||||||||||
Consumer Staples | 0 | 102 | 0 | 102 | ||||||||||||
Energy | 0 | 211 | 0 | 211 | ||||||||||||
Financials | 0 | 177 | 0 | 177 | ||||||||||||
Industrials | 0 | 222 | 0 | 222 | ||||||||||||
Materials | 0 | 52 | 0 | 52 | ||||||||||||
Telecommunication Services | 0 | 355 | 0 | 355 | ||||||||||||
Utilities | 0 | 43 | 0 | 43 | ||||||||||||
Equity-Linked Securities | ||||||||||||||||
Ireland | ||||||||||||||||
Consumer Discretionary | 0 | 336 | 0 | 336 | ||||||||||||
Consumer Staples | 0 | 739 | 0 | 739 | ||||||||||||
Energy | 0 | 1,414 | 0 | 1,414 | ||||||||||||
Financials | 0 | 1,401 | 0 | 1,401 | ||||||||||||
Health Care | 0 | 17 | 0 | 17 | ||||||||||||
Information Technology | 0 | 603 | 0 | 603 | ||||||||||||
Materials | 0 | 133 | 0 | 133 | ||||||||||||
Telecommunication Services | 0 | 409 | 0 | 409 | ||||||||||||
Preferred Stocks | ||||||||||||||||
Brazil | ||||||||||||||||
Banking & Finance | 31 | 1,373 | 0 | 1,404 | ||||||||||||
Consumer Staples | 0 | 174 | 0 | 174 | ||||||||||||
Materials | 0 | 527 | 0 | 527 | ||||||||||||
Utilities | 108 | 281 | 0 | 389 | ||||||||||||
Chile | ||||||||||||||||
Consumer Staples | 70 | 0 | 0 | 70 | ||||||||||||
Russia | ||||||||||||||||
Energy | 0 | 473 | 0 | 473 | ||||||||||||
Real Estate Investment Trusts | ||||||||||||||||
Mexico | ||||||||||||||||
Real Estate | 77 | 0 | 0 | 77 | ||||||||||||
South Africa | ||||||||||||||||
Real Estate | 152 | 0 | 0 | 152 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Total Investments | $ | 34,718 | $ | 71,650 | $ | 0 | $ | 106,368 | ||||||||
|
|
|
|
|
|
|
|
There were no significant transfers among Levels 1, 2, or 3 during the period ended December 31, 2017.
26 | PIMCO EQUITY SERIES | See Accompanying Notes |
Table of Contents
Schedule of Investments PIMCO RAFI Dynamic Multi-Factor International Equity ETF
December 31, 2017 (Unaudited)
SHARES | MARKET VALUE (000S) | |||||||||||
INVESTMENTS IN SECURITIES 99.5% | ||||||||||||
COMMON STOCKS 96.3% | ||||||||||||
AUSTRALIA 4.8% | ||||||||||||
CONSUMER DISCRETIONARY 0.2% | ||||||||||||
Aristocrat Leisure Ltd. | 867 | $ | 16 | |||||||||
Fairfax Media Ltd. | 12,684 | 8 | ||||||||||
JB Hi-Fi Ltd. | 378 | 7 | ||||||||||
Nine Entertainment Co. Holdings Ltd. | 5,965 | 7 | ||||||||||
Super Retail Group Ltd. | 1,035 | 7 | ||||||||||
|
| |||||||||||
45 | ||||||||||||
|
| |||||||||||
CONSUMER STAPLES 0.8% | ||||||||||||
Blackmores Ltd. | 55 | 7 | ||||||||||
GrainCorp Ltd. | 1,208 | 8 | ||||||||||
Inghams Group Ltd. | 2,877 | 8 | ||||||||||
Metcash Ltd. | 3,855 | 9 | ||||||||||
Treasury Wine Estates Ltd. | 595 | 8 | ||||||||||
Wesfarmers Ltd. | 2,352 | 81 | ||||||||||
Woolworths Ltd. | 3,426 | 73 | ||||||||||
|
| |||||||||||
194 | ||||||||||||
|
| |||||||||||
ENERGY 0.4% | ||||||||||||
Caltex Australia Ltd. | 1,448 | 38 | ||||||||||
Origin Energy Ltd. | 3,953 | 29 | ||||||||||
Santos Ltd. (a) | 1,870 | 8 | ||||||||||
Woodside Petroleum Ltd. | 440 | 11 | ||||||||||
WorleyParsons Ltd. | 670 | 8 | ||||||||||
|
| |||||||||||
94 | ||||||||||||
|
| |||||||||||
FINANCIALS 0.7% | ||||||||||||
AMP Ltd. | 8,918 | 36 | ||||||||||
Genworth Mortgage Insurance Australia Ltd. | 3,002 | 7 | ||||||||||
Insurance Australia Group Ltd. | 2,813 | 16 | ||||||||||
Macquarie Group Ltd. | 273 | 21 | ||||||||||
Medibank Pvt Ltd. | 9,663 | 25 | ||||||||||
nib holdings Ltd. | 1,517 | 8 | ||||||||||
Platinum Asset Management Ltd. | 1,288 | 8 | ||||||||||
QBE Insurance Group Ltd. | 2,799 | 23 | ||||||||||
Suncorp Group Ltd. | 2,424 | 26 | ||||||||||
|
| |||||||||||
170 | ||||||||||||
|
| |||||||||||
HEALTH CARE 0.5% | ||||||||||||
Ansell Ltd. | 574 | 11 | ||||||||||
Australian Pharmaceutical Industries Ltd. | 5,695 | 7 | ||||||||||
Cochlear Ltd. | 106 | 14 | ||||||||||
CSL Ltd. | 636 | 70 | ||||||||||
Sigma Healthcare Ltd. | 10,357 | 8 | ||||||||||
|
| |||||||||||
110 | ||||||||||||
|
| |||||||||||
INDUSTRIALS 0.3% | ||||||||||||
Brambles Ltd. | 1,599 | 13 | ||||||||||
CIMIC Group Ltd. | 259 | 10 | ||||||||||
Downer EDI Ltd. | 1,394 | 8 | ||||||||||
Monadelphous Group Ltd. | 548 | 7 | ||||||||||
Qantas Airways Ltd. | 1,904 | 7 | ||||||||||
SEEK Ltd. | 508 | 8 | ||||||||||
Sydney Airport | 1,709 | 9 | ||||||||||
Transurban Group | 2,379 | 23 | ||||||||||
|
| |||||||||||
85 | ||||||||||||
|
|
SHARES | MARKET VALUE (000S) | |||||||||||
INFORMATION TECHNOLOGY 0.1% | ||||||||||||
carsales.com Ltd. | 624 | $ | 7 | |||||||||
Computershare Ltd. | 774 | 10 | ||||||||||
Domain Holdings Australia Ltd. (a) | 1,025 | 3 | ||||||||||
REA Group Ltd. | 129 | 7 | ||||||||||
|
| |||||||||||
27 | ||||||||||||
|
| |||||||||||
MATERIALS 1.4% | ||||||||||||
Adelaide Brighton Ltd. | 1,852 | 9 | ||||||||||
Alumina Ltd. | 5,076 | 10 | ||||||||||
Amcor Ltd. | 1,119 | 13 | ||||||||||
BHP Billiton Ltd. | 4,322 | 99 | ||||||||||
BHP Billiton PLC | 4,455 | 90 | ||||||||||
BlueScope Steel Ltd. | 744 | 9 | ||||||||||
Boral Ltd. | 1,384 | 8 | ||||||||||
CSR Ltd. | 3,017 | 11 | ||||||||||
DuluxGroup Ltd. | 1,190 | 7 | ||||||||||
Iluka Resources Ltd. | 998 | 8 | ||||||||||
Incitec Pivot Ltd. | 2,461 | 8 | ||||||||||
Mineral Resources Ltd. | 553 | 9 | ||||||||||
Newcrest Mining Ltd. | 1,719 | 31 | ||||||||||
Northern Star Resources Ltd. | 1,757 | 8 | ||||||||||
Orica Ltd. | 520 | 7 | ||||||||||
Regis Resources Ltd. | 2,346 | 8 | ||||||||||
Western Areas Ltd. | 3,354 | 9 | ||||||||||
|
| |||||||||||
344 | ||||||||||||
|
| |||||||||||
REAL ESTATE 0.0% | ||||||||||||
Lend Lease Group | 595 | 8 | ||||||||||
|
| |||||||||||
TELECOMMUNICATION SERVICES 0.3% | ||||||||||||
Telstra Corp. Ltd. | 22,672 | 64 | ||||||||||
|
| |||||||||||
UTILITIES 0.1% | ||||||||||||
AGL Energy Ltd. | 1,207 | 23 | ||||||||||
|
| |||||||||||
Total Australia | 1,164 | |||||||||||
|
| |||||||||||
AUSTRIA 0.6% | ||||||||||||
ENERGY 0.1% | ||||||||||||
OMV AG | 587 | 37 | ||||||||||
|
| |||||||||||
FINANCIALS 0.1% | ||||||||||||
Erste Group Bank AG | 272 | 12 | ||||||||||
Raiffeisen Bank International AG (a) | 318 | 11 | ||||||||||
UNIQA Insurance Group AG | 708 | 7 | ||||||||||
Vienna Insurance Group AG Wiener Versicherung Gruppe | 245 | 8 | ||||||||||
|
| |||||||||||
38 | ||||||||||||
|
| |||||||||||
INDUSTRIALS 0.1% | ||||||||||||
ANDRITZ AG | 178 | 10 | ||||||||||
Oesterreichische Post AG | 189 | 9 | ||||||||||
|
| |||||||||||
19 | ||||||||||||
|
| |||||||||||
INFORMATION TECHNOLOGY 0.1% | ||||||||||||
ams AG | 76 | 7 | ||||||||||
AT&S Austria Technologie & Systemtechnik AG | 263 | 7 | ||||||||||
|
| |||||||||||
14 | ||||||||||||
|
|
SHARES | MARKET VALUE (000S) | |||||||||||
MATERIALS 0.1% | ||||||||||||
voestalpine AG | 126 | $ | 7 | |||||||||
Wienerberger AG | 317 | 8 | ||||||||||
|
| |||||||||||
15 | ||||||||||||
|
| |||||||||||
REAL ESTATE 0.1% | ||||||||||||
BUWOG AG | 326 | 11 | ||||||||||
CA Immobilien Anlagen AG | 277 | 9 | ||||||||||
|
| |||||||||||
20 | ||||||||||||
|
| |||||||||||
Total Austria | 143 | |||||||||||
|
| |||||||||||
BELGIUM 1.2% | ||||||||||||
CONSUMER STAPLES 0.7% | ||||||||||||
Anheuser-Busch InBev S.A. NV | 1,359 | 152 | ||||||||||
Colruyt S.A. | 148 | 7 | ||||||||||
|
| |||||||||||
159 | ||||||||||||
|
| |||||||||||
ENERGY 0.0% | ||||||||||||
Euronav NV S.A. | 1,016 | 9 | ||||||||||
|
| |||||||||||
FINANCIALS 0.3% | ||||||||||||
Ageas | 666 | 32 | ||||||||||
Gimv NV | 143 | 9 | ||||||||||
KBC Group NV | 224 | 19 | ||||||||||
|
| |||||||||||
60 | ||||||||||||
|
| |||||||||||
HEALTH CARE 0.0% | ||||||||||||
UCB S.A. | 94 | 8 | ||||||||||
|
| |||||||||||
INDUSTRIALS 0.0% | ||||||||||||
bpost S.A. | 302 | 9 | ||||||||||
|
| |||||||||||
MATERIALS 0.1% | ||||||||||||
Nyrstar NV (a) | 1,002 | 8 | ||||||||||
Umicore S.A. | 266 | 13 | ||||||||||
|
| |||||||||||
21 | ||||||||||||
|
| |||||||||||
TELECOMMUNICATION SERVICES 0.1% | ||||||||||||
Proximus S.A. | 404 | 13 | ||||||||||
|
| |||||||||||
UTILITIES 0.0% | ||||||||||||
Elia System Operator S.A. | 151 | 9 | ||||||||||
|
| |||||||||||
Total Belgium | 288 | |||||||||||
|
| |||||||||||
CAMBODIA 0.0% | ||||||||||||
CONSUMER DISCRETIONARY 0.0% | ||||||||||||
NagaCorp Ltd. | 8,000 | 6 | ||||||||||
|
| |||||||||||
Total Cambodia | 6 | |||||||||||
|
| |||||||||||
CANADA 6.4% | ||||||||||||
CONSUMER DISCRETIONARY 1.1% | ||||||||||||
Aimia, Inc. | 2,643 | 8 | ||||||||||
Canadian Tire Corp. Ltd. ‘A’ | 153 | 20 | ||||||||||
Cineplex, Inc. | 344 | 10 | ||||||||||
Cogeco, Inc. (b) | 100 | 7 | ||||||||||
Dollarama, Inc. | 180 | 22 | ||||||||||
Enercare, Inc. | 453 | 7 | ||||||||||
Gildan Activewear, Inc. | 277 | 9 |
See Accompanying Notes | SEMIANNUAL REPORT | DECEMBER 31, 2017 | 27 |
Table of Contents
Schedule of Investments PIMCO RAFI Dynamic Multi-Factor International Equity ETF (Cont.)
SHARES | MARKET VALUE (000S) | |||||||||||
Great Canadian Gaming Corp. (a) | 379 | $ | 10 | |||||||||
Linamar Corp. | 138 | 8 | ||||||||||
Lululemon Athletica, Inc. (a) | 96 | 8 | ||||||||||
Magna International, Inc. | 1,882 | 107 | ||||||||||
Martinrea International, Inc. (b) | 600 | 8 | ||||||||||
Quebecor, Inc. ‘B’ | 677 | 13 | ||||||||||
Restaurant Brands International, Inc. | 285 | 18 | ||||||||||
Shaw Communications, Inc. ‘B’ | 970 | 22 | ||||||||||
|
| |||||||||||
277 | ||||||||||||
|
| |||||||||||
CONSUMER STAPLES 0.5% | ||||||||||||
Alimentation Couche-Tard, Inc. ‘B’ | 332 | 17 | ||||||||||
Empire Co. Ltd. ‘A’ | 817 | 16 | ||||||||||
George Weston Ltd. | 79 | 7 | ||||||||||
Jean Coutu Group PJC, Inc. ‘A’ | 376 | 7 | ||||||||||
Loblaw Cos. Ltd. | 329 | 18 | ||||||||||
Maple Leaf Foods, Inc. | 521 | 15 | ||||||||||
Metro, Inc. | 678 | 22 | ||||||||||
North West Co., Inc. | 290 | 7 | ||||||||||
Premium Brands Holdings Corp. | 87 | 7 | ||||||||||
Saputo, Inc. | 200 | 7 | ||||||||||
|
| |||||||||||
123 | ||||||||||||
|
| |||||||||||
ENERGY 0.5% | ||||||||||||
Baytex Energy Corp. (a) | 2,421 | 7 | ||||||||||
Bonavista Energy Corp. | 3,970 | 7 | ||||||||||
Calfrac Well Services Ltd. (a)(b) | 1,756 | 8 | ||||||||||
Cenovus Energy, Inc. | 1,880 | 17 | ||||||||||
Crescent Point Energy Corp. | 1,493 | 11 | ||||||||||
Enerplus Corp. | 826 | 8 | ||||||||||
Gibson Energy, Inc. | 516 | 8 | ||||||||||
Husky Energy, Inc. (a) | 781 | 11 | ||||||||||
Obsidian Energy Ltd. (a) | 5,989 | 8 | ||||||||||
ShawCor Ltd. | 307 | 7 | ||||||||||
Trican Well Service Ltd. (a) | 2,997 | 10 | ||||||||||
Trinidad Drilling Ltd. (a) | 6,189 | 8 | ||||||||||
|
| |||||||||||
110 | ||||||||||||
|
| |||||||||||
FINANCIALS 1.8% | ||||||||||||
AGF Management Ltd. ‘B’ | 1,380 | 9 | ||||||||||
Bank of Nova Scotia | 1,012 | 65 | ||||||||||
Canadian Imperial Bank of Commerce | 335 | 33 | ||||||||||
CI Financial Corp. | 891 | 21 | ||||||||||
Fairfax Financial Holdings Ltd. | 20 | 11 | ||||||||||
Great-West Lifeco, Inc. (b) | 403 | 11 | ||||||||||
IGM Financial, Inc. | 494 | 17 | ||||||||||
Intact Financial Corp. | 242 | 20 | ||||||||||
Manulife Financial Corp. | 1,721 | 36 | ||||||||||
National Bank of Canada | 260 | 13 | ||||||||||
Onex Corp. | 96 | 7 | ||||||||||
Power Corp. of Canada | 1,113 | 29 | ||||||||||
Power Financial Corp. | 304 | 8 | ||||||||||
Royal Bank of Canada | 827 | 67 | ||||||||||
Thomson Reuters Corp. | 867 | 38 | ||||||||||
Toronto-Dominion Bank | 1,104 | 65 | ||||||||||
|
| |||||||||||
450 | ||||||||||||
|
| |||||||||||
HEALTH CARE 0.1% | ||||||||||||
Chartwell Retirement Residences | 585 | 7 | ||||||||||
Medical Facilities Corp. | 692 | 8 | ||||||||||
|
| |||||||||||
15 | ||||||||||||
|
| |||||||||||
SHARES | MARKET VALUE (000S) | |||||||||||
INDUSTRIALS 0.9% | ||||||||||||
Aecon Group, Inc. | 723 | $ | 11 | |||||||||
Air Canada (a) | 465 | 10 | ||||||||||
Bombardier, Inc. ‘B’ (a) | 2,947 | 7 | ||||||||||
CAE, Inc. | 408 | 8 | ||||||||||
Canadian National Railway Co. | 657 | 54 | ||||||||||
Canadian Pacific Railway Ltd. | 141 | 26 | ||||||||||
Finning International, Inc. | 351 | 9 | ||||||||||
Maxar Technologies Ltd. | 109 | 7 | ||||||||||
New Flyer Industries, Inc. | 170 | 7 | ||||||||||
Ritchie Bros Auctioneers, Inc. | 253 | 8 | ||||||||||
Russel Metals, Inc. | 317 | 7 | ||||||||||
TFI International, Inc. | 291 | 8 | ||||||||||
Toromont Industries Ltd. | 282 | 12 | ||||||||||
Transcontinental, Inc. ‘A’ | 347 | 7 | ||||||||||
Waste Connections, Inc. | 426 | 30 | ||||||||||
WestJet Airlines Ltd. | 521 | 11 | ||||||||||
|
| |||||||||||
222 | ||||||||||||
|
| |||||||||||
INFORMATION TECHNOLOGY 0.2% | ||||||||||||
BlackBerry Ltd. (a) | 674 | 7 | ||||||||||
Celestica, Inc. (a) | 694 | 7 | ||||||||||
Constellation Software, Inc. (b) | 39 | 24 | ||||||||||
|
| |||||||||||
38 | ||||||||||||
|
| |||||||||||
MATERIALS 0.9% | ||||||||||||
Agrium, Inc. | 489 | 56 | ||||||||||
CCL Industries, Inc. ‘B’ | 211 | 10 | ||||||||||
Centerra Gold, Inc. | 1,208 | 6 | ||||||||||
Franco-Nevada Corp. | 169 | 13 | ||||||||||
Kinross Gold Corp. (a) | 2,035 | 9 | ||||||||||
Labrador Iron Ore Royalty Corp. | 377 | 8 | ||||||||||
Mercer International, Inc. | 536 | 8 | ||||||||||
Methanex Corp. | 130 | 8 | ||||||||||
Potash Corp. of Saskatchewan, Inc. | 3,342 | 69 | ||||||||||
Teck Resources Ltd. ‘B’ | 388 | 10 | ||||||||||
Western Forest Products, Inc. | 4,611 | 9 | ||||||||||
Winpak Ltd. | 231 | 9 | ||||||||||
Yamana Gold, Inc. | 2,749 | 9 | ||||||||||
|
| |||||||||||
224 | ||||||||||||
|
| |||||||||||
REAL ESTATE 0.0% | ||||||||||||
Colliers International Group, Inc. | 120 | 7 | ||||||||||
|
| |||||||||||
TELECOMMUNICATION SERVICES 0.2% | ||||||||||||
BCE, Inc. | 362 | 17 | ||||||||||
Rogers Communications, Inc. ‘B’ | 564 | 29 | ||||||||||
TELUS Corp. | 339 | 13 | ||||||||||
|
| |||||||||||
59 | ||||||||||||
|
| |||||||||||
UTILITIES 0.2% | ||||||||||||
Atco Ltd. ‘I’ | 204 | 7 | ||||||||||
Capital Power Corp. | 383 | 8 | ||||||||||
Fortis, Inc. | 365 | 14 | ||||||||||
Superior Plus Corp. | 779 | 7 | ||||||||||
TransAlta Corp. | 1,232 | 7 | ||||||||||
|
| |||||||||||
43 | ||||||||||||
|
| |||||||||||
Total Canada | 1,568 | |||||||||||
|
| |||||||||||
DENMARK 1.7% | ||||||||||||
CONSUMER DISCRETIONARY 0.1% | ||||||||||||
Pandora A/S | 95 | 10 | ||||||||||
|
|
SHARES | MARKET VALUE (000S) | |||||||||||
CONSUMER STAPLES 0.1% | ||||||||||||
Carlsberg A/S ‘B’ | 138 | $ | 17 | |||||||||
Royal Unibrew A/S | 168 | 10 | ||||||||||
|
| |||||||||||
27 | ||||||||||||
|
| |||||||||||
FINANCIALS 0.2% | ||||||||||||
Alm Brand A/S | 586 | 8 | ||||||||||
Danske Bank A/S | 522 | 20 | ||||||||||
Topdanmark A/S (a) | 182 | 8 | ||||||||||
Tryg A/S | 582 | 14 | ||||||||||
|
| |||||||||||
50 | ||||||||||||
|
| |||||||||||
HEALTH CARE 0.6% | ||||||||||||
Coloplast A/S ‘B’ | 119 | 10 | ||||||||||
GN Store Nord A/S | 226 | 7 | ||||||||||
H Lundbeck A/S | 152 | 8 | ||||||||||
Novo Nordisk A/S ‘B’ | 2,259 | 121 | ||||||||||
|
| |||||||||||
146 | ||||||||||||
|
| |||||||||||
INDUSTRIALS 0.5% | ||||||||||||
AP Moller - Maersk A/S ‘B’ | 58 | 101 | ||||||||||
Dfds A/S | 169 | 9 | ||||||||||
ISS A/S | 193 | 7 | ||||||||||
|
| |||||||||||
117 | ||||||||||||
|
| |||||||||||
MATERIALS 0.1% | ||||||||||||
Chr Hansen Holding A/S | 114 | 11 | ||||||||||
Novozymes A/S ‘B’ | 262 | 15 | ||||||||||
|
| |||||||||||
26 | ||||||||||||
|
| |||||||||||
TELECOMMUNICATION SERVICES 0.1% | ||||||||||||
TDC A/S | 4,269 | 26 | ||||||||||
|
| |||||||||||
UTILITIES 0.0% | ||||||||||||
Orsted A/S | 159 | 9 | ||||||||||
|
| |||||||||||
Total Denmark | 411 | |||||||||||
|
| |||||||||||
FINLAND 0.9% | ||||||||||||
CONSUMER DISCRETIONARY 0.0% | ||||||||||||
Nokian Renkaat Oyj | 229 | 10 | ||||||||||
|
| |||||||||||
CONSUMER STAPLES 0.0% | ||||||||||||
Kesko Oyj ‘B’ | 190 | 10 | ||||||||||
|
| |||||||||||
ENERGY 0.1% | ||||||||||||
Neste Oyj | 204 | 13 | ||||||||||
|
| |||||||||||
FINANCIALS 0.2% | ||||||||||||
Sampo Oyj ‘A’ | 655 | 36 | ||||||||||
|
| |||||||||||
HEALTH CARE 0.0% | ||||||||||||
Orion Oyj ‘B’ | 197 | 7 | ||||||||||
|
| |||||||||||
INDUSTRIALS 0.3% | ||||||||||||
Finnair Oyj | 523 | 8 | ||||||||||
Kone Oyj ‘B’ | 436 | 24 | ||||||||||
Metso Oyj | 212 | 7 | ||||||||||
Ramirent Oyj | 667 | 6 |
28 | PIMCO EQUITY SERIES | See Accompanying Notes |
Table of Contents
December 31, 2017 (Unaudited)
SHARES | MARKET VALUE (000S) | |||||||||||
Wartsila Oyj Abp | 291 | $ | 18 | |||||||||
YIT OYJ | 977 | 8 | ||||||||||
|
| |||||||||||
71 | ||||||||||||
|
| |||||||||||
INFORMATION TECHNOLOGY 0.0% | ||||||||||||
Tieto OYJ | 227 | 7 | ||||||||||
|
| |||||||||||
MATERIALS 0.2% | ||||||||||||
Kemira Oyj | 653 | 9 | ||||||||||
Stora Enso Oyj ‘R’ | 1,730 | 28 | ||||||||||
|
| |||||||||||
37 | ||||||||||||
|
| |||||||||||
TELECOMMUNICATION SERVICES 0.0% | ||||||||||||
Elisa Oyj | 280 | 11 | ||||||||||
|
| |||||||||||
UTILITIES 0.1% | ||||||||||||
Fortum Oyj | 1,064 | 21 | ||||||||||
|
| |||||||||||
Total Finland | 223 | |||||||||||
|
| |||||||||||
FRANCE 5.9% | ||||||||||||
CONSUMER DISCRETIONARY 1.3% | ||||||||||||
Accor S.A. | 145 | 7 | ||||||||||
Cie Generale des Etablissements Michelin | 137 | 20 | ||||||||||
Elior Group S.A. | 374 | 8 | ||||||||||
Eutelsat Communications S.A. | 339 | 8 | ||||||||||
Hermes International | 45 | 24 | ||||||||||
JCDecaux S.A. | 255 | 10 | ||||||||||
Kaufman & Broad S.A. | 162 | 8 | ||||||||||
Kering | 62 | 29 | ||||||||||
Lagardere S.C.A. | 590 | 19 | ||||||||||
LVMH Moet Hennessy Louis Vuitton SE | 197 | 58 | ||||||||||
Metropole Television S.A. | 279 | 7 | ||||||||||
Peugeot S.A. | 1,502 | 30 | ||||||||||
Publicis Groupe S.A. | 98 | 7 | ||||||||||
Sodexo S.A. | 147 | 20 | ||||||||||
Vivendi S.A. | 2,603 | 70 | ||||||||||
|
| |||||||||||
325 | ||||||||||||
|
| |||||||||||
CONSUMER STAPLES 0.6% | ||||||||||||
Carrefour S.A. | 835 | 18 | ||||||||||
Casino Guichard Perrachon S.A. | 517 | 31 | ||||||||||
Danone S.A. | 793 | 67 | ||||||||||
Pernod-Ricard S.A. | 202 | 32 | ||||||||||
Rallye S.A. | 468 | 8 | ||||||||||
|
| |||||||||||
156 | ||||||||||||
|
| |||||||||||
ENERGY 0.1% | ||||||||||||
Total S.A. | 269 | 15 | ||||||||||
Vallourec S.A. | 1,346 | 8 | ||||||||||
|
| |||||||||||
23 | ||||||||||||
|
| |||||||||||
FINANCIALS 0.3% | ||||||||||||
Coface S.A. (a) | 651 | 7 | ||||||||||
Credit Agricole S.A. | 971 | 16 | ||||||||||
Eurazeo S.A. | 217 | 20 | ||||||||||
Natixis S.A. | 2,114 | 17 | ||||||||||
SCOR SE | 200 | 8 | ||||||||||
|
| |||||||||||
68 | ||||||||||||
|
| |||||||||||
SHARES | MARKET VALUE (000S) | |||||||||||
HEALTH CARE 0.1% | ||||||||||||
BioMerieux | 86 | $ | 8 | |||||||||
Ipsen S.A. | 74 | 9 | ||||||||||
Korian S.A. | 199 | 7 | ||||||||||
Orpea | 70 | 8 | ||||||||||
|
| |||||||||||
32 | ||||||||||||
|
| |||||||||||
INDUSTRIALS 1.9% | ||||||||||||
Aeroports de Paris | 38 | 7 | ||||||||||
Air France-KLM (a) | 1,774 | 29 | ||||||||||
Airbus SE | 766 | 76 | ||||||||||
Alstom S.A. | 470 | 20 | ||||||||||
Bouygues S.A. | 942 | 49 | ||||||||||
Bureau Veritas S.A. | 413 | 11 | ||||||||||
Cie de Saint-Gobain | 367 | 20 | ||||||||||
Derichebourg S.A. | 677 | 7 | ||||||||||
Edenred | 253 | 7 | ||||||||||
Elis S.A. | 329 | 9 | ||||||||||
Getlink SE | 572 | 7 | ||||||||||
Legrand S.A. | 305 | 24 | ||||||||||
Rexel S.A. | 1,113 | 20 | ||||||||||
Safran S.A. | 287 | 30 | ||||||||||
Societe BIC S.A. | 64 | 7 | ||||||||||
Thales S.A. | 71 | 8 | ||||||||||
Vinci S.A. | 1,138 | 116 | ||||||||||
Zodiac Aerospace | 299 | 9 | ||||||||||
|
| |||||||||||
456 | ||||||||||||
|
| |||||||||||
INFORMATION TECHNOLOGY 0.3% | ||||||||||||
Alten S.A. | 88 | 7 | ||||||||||
Atos SE | 147 | 21 | ||||||||||
Capgemini SE | 121 | 14 | ||||||||||
Dassault Systemes | 132 | 14 | ||||||||||
Neopost S.A. | 259 | 8 | ||||||||||
Ubisoft Entertainment SA (a) | 97 | 8 | ||||||||||
Worldline S.A. (a) | 205 | 10 | ||||||||||
|
| |||||||||||
82 | ||||||||||||
|
| |||||||||||
MATERIALS 0.1% | ||||||||||||
Eramet (a) | 69 | 8 | ||||||||||
Vicat S.A. | 114 | 9 | ||||||||||
|
| |||||||||||
17 | ||||||||||||
|
| |||||||||||
REAL ESTATE 0.1% | ||||||||||||
Nexity S.A. | 243 | 14 | ||||||||||
|
| |||||||||||
TELECOMMUNICATION SERVICES 0.2% | ||||||||||||
Iliad S.A. | 39 | 9 | ||||||||||
Orange S.A. | 2,414 | 42 | ||||||||||
|
| |||||||||||
51 | ||||||||||||
|
| |||||||||||
UTILITIES 0.9% | ||||||||||||
Electricite de France S.A. | 3,950 | 50 | ||||||||||
Engie S.A. | 7,226 | 124 | ||||||||||
Rubis S.C.A. | 104 | 7 | ||||||||||
Suez | 482 | 9 | ||||||||||
Veolia Environnement S.A. | 1,543 | 39 | ||||||||||
|
| |||||||||||
229 | ||||||||||||
|
| |||||||||||
Total France | 1,453 | |||||||||||
|
| |||||||||||
SHARES | MARKET VALUE (000S) | |||||||||||
GERMANY 5.9% | ||||||||||||
CONSUMER DISCRETIONARY 0.7% | ||||||||||||
adidas AG | 95 | $ | 19 | |||||||||
Axel Springer SE | 92 | 7 | ||||||||||
Ceconomy AG | 516 | 8 | ||||||||||
Continental AG | 211 | 57 | ||||||||||
CTS Eventim AG & Co. KGaA | 158 | 7 | ||||||||||
Fielmann AG | 82 | 7 | ||||||||||
Hella GmbH & Co. KGaA | 124 | 8 | ||||||||||
Hugo Boss AG | 215 | 18 | ||||||||||
Leoni AG | 189 | 14 | ||||||||||
ProSiebenSat.1 Media SE | 320 | 11 | ||||||||||
TUI AG | 860 | 18 | ||||||||||
|
| |||||||||||
174 | ||||||||||||
|
| |||||||||||
CONSUMER STAPLES 0.1% | ||||||||||||
Beiersdorf AG | �� | 80 | 9 | |||||||||
Suedzucker AG | 360 | 8 | ||||||||||
|
| |||||||||||
17 | ||||||||||||
|
| |||||||||||
FINANCIALS 1.0% | ||||||||||||
Commerzbank AG | 3,581 | 53 | ||||||||||
Deutsche Bank AG | 3,282 | 62 | ||||||||||
Deutsche Boerse AG | 369 | 43 | ||||||||||
Deutsche Pfandbriefbank AG | 624 | 10 | ||||||||||
GRENKE AG | 74 | 7 | ||||||||||
Hannover Rueck SE | 56 | 7 | ||||||||||
Muenchener Rueckversicherungs-Gesellschaft AG in Muenchen | 221 | 48 | ||||||||||
Talanx AG | 164 | 6 | ||||||||||
Wuestenrot & Wuerttembergische AG | 318 | 9 | ||||||||||
|
| |||||||||||
245 | ||||||||||||
|
| |||||||||||
HEALTH CARE 0.6% | ||||||||||||
Bayer AG | 611 | 76 | ||||||||||
Carl Zeiss Meditec AG | 115 | 7 | ||||||||||
Fresenius Medical Care AG & Co. KGaA | 381 | 40 | ||||||||||
Fresenius SE & Co. KGaA | 172 | 13 | ||||||||||
Rhoen Klinikum AG | 331 | 12 | ||||||||||
|
| |||||||||||
148 | ||||||||||||
|
| |||||||||||
INDUSTRIALS 0.8% | ||||||||||||
Bilfinger SE | 305 | 14 | ||||||||||
Brenntag AG | 155 | 10 | ||||||||||
Deutsche Lufthansa AG | 1,440 | 53 | ||||||||||
Deutsche Post AG | 772 | 37 | ||||||||||
Deutz AG | 883 | 8 | ||||||||||
Duerr AG | 60 | 8 | ||||||||||
Fraport AG Frankfurt Airport Services Worldwide | 70 | 8 | ||||||||||
Hapag-Lloyd AG (a) | 163 | 7 | ||||||||||
Hochtief AG | 42 | 7 | ||||||||||
KION Group AG | 108 | 9 | ||||||||||
Kloeckner & Co. SE | 729 | 9 | ||||||||||
MTU Aero Engines AG | 86 | 15 | ||||||||||
OSRAM Licht AG | 84 | 8 | ||||||||||
Rheinmetall AG | 65 | 8 | ||||||||||
Wacker Neuson SE | 263 | 9 | ||||||||||
|
| |||||||||||
210 | ||||||||||||
|
| |||||||||||
INFORMATION TECHNOLOGY 0.5% | ||||||||||||
Infineon Technologies AG | 910 | 25 | ||||||||||
SAP SE | 508 | 57 |
See Accompanying Notes | SEMIANNUAL REPORT | DECEMBER 31, 2017 | 29 |
Table of Contents
Schedule of Investments PIMCO RAFI Dynamic Multi-Factor International Equity ETF (Cont.)
SHARES | MARKET VALUE (000S) | |||||||||||
Software AG | 190 | $ | 11 | |||||||||
United Internet AG | 257 | 17 | ||||||||||
Wirecard AG | 107 | 12 | ||||||||||
|
| |||||||||||
122 | ||||||||||||
|
| |||||||||||
MATERIALS 0.9% | ||||||||||||
Aurubis AG | 273 | 25 | ||||||||||
BASF SE | 1,163 | 128 | ||||||||||
Covestro AG | 103 | 11 | ||||||||||
Evonik Industries AG | 194 | 7 | ||||||||||
K+S AG | 564 | 14 | ||||||||||
Linde AG (a) | 126 | 30 | ||||||||||
Salzgitter AG | 183 | 10 | ||||||||||
|
| |||||||||||
225 | ||||||||||||
|
| |||||||||||
REAL ESTATE 0.3% | ||||||||||||
Aroundtown S.A. | 980 | 8 | ||||||||||
Deutsche Wohnen SE | 354 | 15 | ||||||||||
TAG Immobilien AG | 711 | 13 | ||||||||||
TLG Immobilien AG | 287 | 8 | ||||||||||
Vonovia SE | 608 | 30 | ||||||||||
|
| |||||||||||
74 | ||||||||||||
|
| |||||||||||
TELECOMMUNICATION SERVICES 0.1% | ||||||||||||
Freenet AG | 525 | 20 | ||||||||||
Telefonica Deutschland Holding AG | 1,844 | 9 | ||||||||||
|
| |||||||||||
29 | ||||||||||||
|
| |||||||||||
UTILITIES 0.9% | ||||||||||||
E.ON SE | 10,118 | 110 | ||||||||||
RWE AG (a) | 2,422 | 49 | ||||||||||
Uniper SE | 1,643 | 51 | ||||||||||
|
| |||||||||||
210 | ||||||||||||
|
| |||||||||||
Total Germany | 1,454 | |||||||||||
|
| |||||||||||
HONG KONG 2.7% | ||||||||||||
CONSUMER DISCRETIONARY 0.4% | ||||||||||||
Chow Tai Fook Jewellery Group Ltd. | 6,800 | 7 | ||||||||||
Galaxy Entertainment Group Ltd. | 3,000 | 24 | ||||||||||
Li & Fung Ltd. | 20,000 | 11 | ||||||||||
Luk Fook Holdings International Ltd. | 2,000 | 9 | ||||||||||
Melco Resorts & Entertainment Ltd. | 465 | 13 | ||||||||||
Shangri-La Asia Ltd. | 4,000 | 9 | ||||||||||
SJM Holdings Ltd. | 14,000 | 12 | ||||||||||
Techtronic Industries Co. Ltd. | 2,000 | 13 | ||||||||||
Yue Yuen Industrial Holdings Ltd. | 2,000 | 8 | ||||||||||
|
| |||||||||||
106 | ||||||||||||
|
| |||||||||||
CONSUMER STAPLES 0.1% | ||||||||||||
Dairy Farm International Holdings Ltd. | 900 | 7 | ||||||||||
Sun Art Retail Group Ltd. | 7,000 | 7 | ||||||||||
WH Group Ltd. | 15,500 | 18 | ||||||||||
|
| |||||||||||
32 | ||||||||||||
|
| |||||||||||
FINANCIALS 0.5% | ||||||||||||
AIA Group Ltd. | 8,000 | 68 | ||||||||||
Hang Seng Bank Ltd. | 1,000 | 25 |
SHARES | MARKET VALUE (000S) | |||||||||||
Hong Kong Exchanges and Clearing Ltd. | 900 | $ | 27 | |||||||||
Kingston Financial Group Ltd. | 8,000 | 8 | ||||||||||
|
| |||||||||||
128 | ||||||||||||
|
| |||||||||||
HEALTH CARE 0.1% | ||||||||||||
Sino Biopharmaceutical Ltd. | 10,000 | 18 | ||||||||||
|
| |||||||||||
INDUSTRIALS 0.4% | ||||||||||||
Cathay Pacific Airways Ltd. | 5,000 | 8 | ||||||||||
Jardine Matheson Holdings Ltd. | 400 | 24 | ||||||||||
Jardine Strategic Holdings Ltd. | 500 | 20 | ||||||||||
MTR Corp. Ltd. | 2,000 | 11 | ||||||||||
Orient Overseas International Ltd. | 500 | 5 | ||||||||||
Pacific Basin Shipping Ltd. | 32,000 | 7 | ||||||||||
Seaspan Corp. | 1,322 | 9 | ||||||||||
|
| |||||||||||
84 | ||||||||||||
|
| |||||||||||
INFORMATION TECHNOLOGY 0.2% | ||||||||||||
ASM Pacific Technology Ltd. | 400 | 6 | ||||||||||
GCL-Poly Energy Holdings Ltd. (a) | 44,000 | 8 | ||||||||||
Kingboard Chemical Holdings Ltd. | 1,500 | 8 | ||||||||||
Landing International Development Ltd. (a) | 180,000 | 7 | ||||||||||
Truly International Holdings Ltd. | 20,000 | 9 | ||||||||||
VTech Holdings Ltd. | 500 | 6 | ||||||||||
|
| |||||||||||
44 | ||||||||||||
|
| |||||||||||
MATERIALS 0.0% | ||||||||||||
Lee & Man Paper Manufacturing Ltd. | 6,000 | 7 | ||||||||||
|
| |||||||||||
REAL ESTATE 0.5% | ||||||||||||
CK Asset Holdings Ltd. | 2,000 | 17 | ||||||||||
Henderson Land Development Co. Ltd. | 1,000 | 7 | ||||||||||
Hongkong Land Holdings Ltd. | 2,000 | 14 | ||||||||||
Hysan Development Co. Ltd. | 1,000 | 5 | ||||||||||
Kerry Properties Ltd. | 1,500 | 7 | ||||||||||
New World Development Co. Ltd. | 17,000 | 25 | ||||||||||
Shimao Property Holdings Ltd. | 3,500 | 8 | ||||||||||
Sun Hung Kai Properties Ltd. | 1,000 | 17 | ||||||||||
Swire Pacific Ltd. ‘A’ | 2,500 | 23 | ||||||||||
Wheelock & Co. Ltd. | 1,000 | 7 | ||||||||||
|
| |||||||||||
130 | ||||||||||||
|
| |||||||||||
TELECOMMUNICATION SERVICES 0.1% | ||||||||||||
HKT Trust & HKT Ltd. | 10,000 | 13 | ||||||||||
PCCW Ltd. | 14,000 | 8 | ||||||||||
|
| |||||||||||
21 | ||||||||||||
|
| |||||||||||
UTILITIES 0.4% | ||||||||||||
China Gas Holdings Ltd. | 4,000 | 11 | ||||||||||
CLP Holdings Ltd. | 3,500 | 36 | ||||||||||
Hong Kong & China Gas Co. Ltd. | 15,000 | 29 | ||||||||||
Power Assets Holdings Ltd. | 2,000 | 17 | ||||||||||
|
| |||||||||||
93 | ||||||||||||
|
| |||||||||||
Total Hong Kong | 663 | |||||||||||
|
|
SHARES | MARKET VALUE (000S) | |||||||||||
IRELAND 1.1% | ||||||||||||
CONSUMER DISCRETIONARY 0.0% | ||||||||||||
Paddy Power Betfair PLC | 63 | $ | 8 | |||||||||
|
| |||||||||||
CONSUMER STAPLES 0.2% | ||||||||||||
C&C Group PLC | 2,121 | 7 | ||||||||||
Glanbia PLC | 426 | 8 | ||||||||||
Kerry Group PLC ‘A’ | 178 | 20 | ||||||||||
|
| |||||||||||
35 | ||||||||||||
|
| |||||||||||
HEALTH CARE 0.5% | ||||||||||||
ICON PLC (a) | 134 | 15 | ||||||||||
Jazz Pharmaceuticals PLC (a) | 100 | 13 | ||||||||||
Medtronic PLC | 922 | 74 | ||||||||||
Perrigo Co. PLC | 213 | 19 | ||||||||||
UDG Healthcare PLC | 658 | 8 | ||||||||||
|
| |||||||||||
129 | ||||||||||||
|
| |||||||||||
INDUSTRIALS 0.2% | ||||||||||||
AerCap Holdings NV (a) | 138 | 7 | ||||||||||
Allegion PLC | 123 | 10 | ||||||||||
DCC PLC | 180 | 18 | ||||||||||
Fly Leasing Ltd. ADR (a) | 550 | 7 | ||||||||||
Grafton Group PLC | 693 | 8 | ||||||||||
Kingspan Group PLC | 169 | 7 | ||||||||||
|
| |||||||||||
57 | ||||||||||||
|
| |||||||||||
MATERIALS 0.2% | ||||||||||||
James Hardie Industries PLC ADR | 755 | 13 | ||||||||||
Smurfit Kappa Group PLC | 627 | 21 | ||||||||||
|
| |||||||||||
34 | ||||||||||||
|
| |||||||||||
Total Ireland | 263 | |||||||||||
|
| |||||||||||
ISRAEL 0.5% | ||||||||||||
FINANCIALS 0.3% | ||||||||||||
Bank Hapoalim BM | 880 | 6 | ||||||||||
Bank Leumi Le-Israel BM | 2,450 | 15 | ||||||||||
Harel Insurance Investments & Financial Services Ltd. | 1,008 | 7 | ||||||||||
Israel Discount Bank Ltd. ‘A’ (a) | 3,565 | 10 | ||||||||||
Migdal Insurance & Financial Holding Ltd. | 6,800 | 8 | ||||||||||
Mizrahi Tefahot Bank Ltd. | 330 | 6 | ||||||||||
Plus500 Ltd. | 701 | 9 | ||||||||||
|
| |||||||||||
61 | ||||||||||||
|
| |||||||||||
INDUSTRIALS 0.0% | ||||||||||||
Elbit Systems Ltd. | 66 | 9 | ||||||||||
|
| |||||||||||
INFORMATION TECHNOLOGY 0.1% | ||||||||||||
Check Point Software Technologies Ltd. (a) | 178 | 19 | ||||||||||
Nice Ltd. | 96 | 9 | ||||||||||
Tower Semiconductor Ltd. (a) | 216 | 7 | ||||||||||
|
| |||||||||||
35 | ||||||||||||
|
| |||||||||||
30 | PIMCO EQUITY SERIES | See Accompanying Notes |
Table of Contents
December 31, 2017 (Unaudited)
SHARES | MARKET VALUE (000S) | |||||||||||
MATERIALS 0.1% | ||||||||||||
Frutarom Industries Ltd. | 81 | $ | 7 | |||||||||
Israel Chemicals Ltd. | 1,650 | 7 | ||||||||||
|
| |||||||||||
14 | ||||||||||||
|
| |||||||||||
TELECOMMUNICATION SERVICES 0.0% | ||||||||||||
Bezeq The Israeli Telecommunication Corp. Ltd. | 7,860 | 12 | ||||||||||
|
| |||||||||||
Total Israel | 131 | |||||||||||
|
| |||||||||||
ITALY 3.1% | ||||||||||||
CONSUMER DISCRETIONARY 0.2% | ||||||||||||
Brembo SpA | 482 | 7 | ||||||||||
De’ Longhi SpA | 246 | 8 | ||||||||||
Ferrari NV | 165 | 17 | ||||||||||
Luxottica Group SpA | 130 | 8 | ||||||||||
Moncler SpA | 256 | 8 | ||||||||||
PRADA SpA | 2,000 | 7 | ||||||||||
|
| |||||||||||
55 | ||||||||||||
|
| |||||||||||
CONSUMER STAPLES 0.1% | ||||||||||||
Davide Campari-Milano SpA | 944 | 7 | ||||||||||
MARR SpA | 286 | 8 | ||||||||||
|
| |||||||||||
15 | ||||||||||||
|
| |||||||||||
ENERGY 0.6% | ||||||||||||
Eni SpA | 5,967 | 99 | ||||||||||
Saipem SpA (a) | 1,789 | 8 | ||||||||||
Saras SpA | 4,518 | 11 | ||||||||||
Snam SpA | 5,352 | 26 | ||||||||||
|
| |||||||||||
144 | ||||||||||||
|
| |||||||||||
FINANCIALS 1.1% | ||||||||||||
Anima Holding SpA | 1,262 | 9 | ||||||||||
Assicurazioni Generali SpA | 959 | 17 | ||||||||||
Banca Carige SpA | 597,891 | 6 | ||||||||||
Banca Generali SpA | 235 | 8 | ||||||||||
Banca Popolare di Sondrio SCPA | 2,356 | 9 | ||||||||||
BPER Banca | 1,582 | 8 | ||||||||||
Credito Valtellinese SpA (a) | 2,141 | 3 | ||||||||||
Intesa Sanpaolo SpA | 9,723 | 32 | ||||||||||
Mediobanca SpA | 730 | 8 | ||||||||||
Societa Cattolica di Assicurazioni S.C. | 858 | 9 | ||||||||||
UniCredit SpA | 6,677 | 125 | ||||||||||
Unione di Banche Italiane SpA | 4,480 | 19 | ||||||||||
Unipol Gruppo SpA | 1,657 | 8 | ||||||||||
|
| |||||||||||
261 | ||||||||||||
|
| |||||||||||
HEALTH CARE 0.1% | ||||||||||||
DiaSorin SpA | 96 | 9 | ||||||||||
Recordati SpA | 162 | 7 | ||||||||||
|
| |||||||||||
16 | ||||||||||||
|
| |||||||||||
INDUSTRIALS 0.2% | ||||||||||||
ASTM SpA | 271 | 8 | ||||||||||
Atlantia SpA | 832 | 26 | ||||||||||
Salini Impregilo SpA | 1,867 | 7 |
SHARES | MARKET VALUE (000S) | |||||||||||
Societa Iniziative Autostradali e Servizi SpA | 389 | $ | 8 | |||||||||
|
| |||||||||||
49 | ||||||||||||
|
| |||||||||||
TELECOMMUNICATION SERVICES 0.1% | ||||||||||||
Telecom Italia SpA (a) | 34,776 | 30 | ||||||||||
|
| |||||||||||
UTILITIES 0.7% | ||||||||||||
Enel SpA | 23,190 | 142 | ||||||||||
ERG SpA | 380 | 7 | ||||||||||
Iren SpA | 2,659 | 8 | ||||||||||
Terna Rete Elettrica Nazionale SpA | 3,087 | 18 | ||||||||||
|
| |||||||||||
175 | ||||||||||||
|
| |||||||||||
Total Italy | 745 | |||||||||||
|
| |||||||||||
JAPAN 23.7% | ||||||||||||
CONSUMER DISCRETIONARY 5.4% | ||||||||||||
Adastria Co. Ltd. | 400 | 8 | ||||||||||
Ahresty Corp. | 900 | 7 | ||||||||||
Aisin Seiki Co. Ltd. | 400 | 22 | ||||||||||
Arata Corp. | 100 | 5 | ||||||||||
Atsugi Co. Ltd. | 700 | 8 | ||||||||||
Autobacs Seven Co. Ltd. | 600 | 12 | ||||||||||
Avex, Inc. | 500 | 7 | ||||||||||
Bandai Namco Holdings, Inc. | 200 | 7 | ||||||||||
Benesse Holdings, Inc. | 200 | 7 | ||||||||||
Bridgestone Corp. | 1,700 | 79 | ||||||||||
Canon Marketing Japan, Inc. | 300 | 8 | ||||||||||
Casio Computer Co. Ltd. | 500 | 7 | ||||||||||
DCM Holdings Co. Ltd. | 700 | 7 | ||||||||||
Denso Corp. | 1,100 | 66 | ||||||||||
Eagle Industry Co. Ltd. | 500 | 9 | ||||||||||
EDION Corp. | 600 | 7 | ||||||||||
FCC Co. Ltd. | 300 | 8 | ||||||||||
Foster Electric Co. Ltd. | 300 | 7 | ||||||||||
Fuji Corp. Ltd. | 1,000 | 8 | ||||||||||
Fuji Media Holdings, Inc. | 1,000 | 16 | ||||||||||
Geo Holdings Corp. | 300 | 6 | ||||||||||
H2O Retailing Corp. | 400 | 8 | ||||||||||
Happinet Corp. | 400 | 8 | ||||||||||
Honda Motor Co. Ltd. | 1,700 | 58 | ||||||||||
Ichibanya Co. Ltd. | 100 | 4 | ||||||||||
Imasen Electric Industrial | 600 | 7 | ||||||||||
Isetan Mitsukoshi Holdings Ltd. ‘L’ | 800 | 10 | ||||||||||
Isuzu Motors Ltd. | 1,500 | 25 | ||||||||||
JVC Kenwood Corp. | 2,200 | 8 | ||||||||||
K’s Holdings Corp. | 500 | 13 | ||||||||||
Keihin Corp. | 400 | 8 | ||||||||||
Kohnan Shoji Co. Ltd. | 300 | 6 | ||||||||||
Koito Manufacturing Co. Ltd. | 200 | 14 | ||||||||||
Komeri Co. Ltd. | 300 | 9 | ||||||||||
KYB Corp. | 100 | 6 | ||||||||||
Mazda Motor Corp. | 500 | 7 | ||||||||||
Mitsubishi Motors Corp. | 2,700 | 19 | ||||||||||
Musashi Seimitsu Industry Co. Ltd. | 300 | 10 | ||||||||||
NHK Spring Co. Ltd. | 600 | 7 | ||||||||||
Nifco, Inc. | 100 | 7 | ||||||||||
Nikon Corp. | 500 | 10 | ||||||||||
Nishimatsuya Chain Co. Ltd. | 600 | 7 | ||||||||||
Nissan Motor Co. Ltd. | 5,000 | 50 | ||||||||||
Nitori Holdings Co. Ltd. | 100 | 14 | ||||||||||
Nojima Corp. | 300 | 7 |
SHARES | MARKET VALUE (000S) | |||||||||||
NOK Corp. | 400 | $ | 9 | |||||||||
Oriental Land Co. Ltd. | 200 | 18 | ||||||||||
Paltac Corp. | 200 | 9 | ||||||||||
Panasonic Corp. | 6,300 | 92 | ||||||||||
Pioneer Corp. (a) | 3,800 | 8 | ||||||||||
Plenus Co. Ltd. | 400 | 9 | ||||||||||
Round One Corp. | 600 | 10 | ||||||||||
Royal Holdings Co. Ltd. | 200 | 6 | ||||||||||
Saizeriya Co. Ltd. | 300 | 10 | ||||||||||
Sanden Holdings Corp. (a) | 300 | 6 | ||||||||||
Sanrio Co. Ltd. | 400 | 7 | ||||||||||
Sekisui Chemical Co. Ltd. | 1,500 | 30 | ||||||||||
Seria Co. Ltd. | 200 | 12 | ||||||||||
Sharp Corp. (a) | 200 | 7 | ||||||||||
Shimachu Co. Ltd. | 200 | 6 | ||||||||||
Shochiku Co. Ltd. | 100 | 17 | ||||||||||
Sony Corp. | 1,100 | 49 | ||||||||||
Stanley Electric Co. Ltd. | 500 | 20 | ||||||||||
Start Today Co. Ltd. | 500 | 15 | ||||||||||
Starts Corp., Inc. | 300 | 8 | ||||||||||
Sumitomo Electric Industries Ltd. | 700 | 12 | ||||||||||
Sumitomo Forestry Co. Ltd. | 500 | 9 | ||||||||||
Sumitomo Rubber Industries Ltd. | 500 | 9 | ||||||||||
Suzuki Motor Corp. | 900 | 52 | ||||||||||
Takashimaya Co. Ltd. | 1,000 | 11 | ||||||||||
Tokai Rika Co. Ltd. | 500 | 11 | ||||||||||
Tomy Co. Ltd. | 500 | 7 | ||||||||||
Toridoll Holdings Corp. | 300 | 11 | ||||||||||
Toyo Tire & Rubber Co. Ltd. | 300 | 6 | ||||||||||
Toyoda Gosei Co. Ltd. | 400 | 10 | ||||||||||
Toyota Industries Corp. | 600 | 38 | ||||||||||
Toyota Motor Corp. | 1,200 | 76 | ||||||||||
TS Tech Co. Ltd. | 200 | 8 | ||||||||||
Unipres Corp. | 300 | 8 | ||||||||||
United Arrows Ltd. | 300 | 12 | ||||||||||
USS Co. Ltd. | 300 | 6 | ||||||||||
Yamada Denki Co. Ltd. | 3,500 | 19 | ||||||||||
Yamaha Corp. | 300 | 11 | ||||||||||
Yamaha Motor Co. Ltd. | 300 | 10 | ||||||||||
Yokohama Rubber Co. Ltd. | 300 | 7 | ||||||||||
Yondoshi Holdings, Inc. | 200 | 5 | ||||||||||
Yoshinoya Holdings Co. Ltd. | 600 | 10 | ||||||||||
|
| |||||||||||
1,329 | ||||||||||||
|
| |||||||||||
CONSUMER STAPLES 2.1% | ||||||||||||
Aeon Co. Ltd. | 600 | 10 | ||||||||||
Ain Holdings, Inc. | 100 | 6 | ||||||||||
Ajinomoto Co., Inc. | 1,000 | 19 | ||||||||||
Ariake Japan Co. Ltd. | 100 | 9 | ||||||||||
Asahi Group Holdings Ltd. | 500 | 25 | ||||||||||
Ci:z Holdings Co. Ltd. | 200 | 10 | ||||||||||
cocokara fine, Inc. | 100 | 6 | ||||||||||
Earth Chemical Co. Ltd. | 100 | 5 | ||||||||||
Fancl Corp. | 300 | 9 | ||||||||||
Feed One Co. Ltd. | 2,900 | 7 | ||||||||||
Heiwado Co. Ltd. | 400 | 8 | ||||||||||
J-Oil Mills, Inc. | 200 | 7 | ||||||||||
Japan Tobacco, Inc. | 1,600 | 52 | ||||||||||
Kao Corp. | 500 | 34 | ||||||||||
Key Coffee, Inc. | 300 | 6 | ||||||||||
Kikkoman Corp. | 300 | 12 | ||||||||||
Kirin Holdings Co. Ltd. | 2,200 | 55 | ||||||||||
Kyokuyo Co. Ltd. | 200 | 8 | ||||||||||
Mandom Corp. | 200 | 7 |
See Accompanying Notes | SEMIANNUAL REPORT | DECEMBER 31, 2017 | 31 |
Table of Contents
Schedule of Investments PIMCO RAFI Dynamic Multi-Factor International Equity ETF (Cont.)
SHARES | MARKET VALUE (000S) | |||||||||||
Maruha Nichiro Corp. | 500 | $ | 15 | |||||||||
Matsumotokiyoshi Holdings Co. Ltd. | 200 | 8 | ||||||||||
Milbon Co. Ltd. | 200 | 7 | ||||||||||
Mitsui Sugar Co. Ltd. | 200 | 8 | ||||||||||
Morinaga & Co. Ltd. | 100 | 5 | ||||||||||
Nichirei Corp. | 300 | 8 | ||||||||||
Nisshin Oillio Group Ltd. | 200 | 6 | ||||||||||
Nisshin Seifun Group, Inc. | 600 | 12 | ||||||||||
Nissin Foods Holdings Co. Ltd. | 100 | 7 | ||||||||||
Noevir Holdings Co. Ltd. | 100 | 7 | ||||||||||
Pigeon Corp. | 500 | 19 | ||||||||||
Pola Orbis Holdings, Inc. | 200 | 7 | ||||||||||
Prima Meat Packers Ltd. | 1,000 | 7 | ||||||||||
Rock Field Co. Ltd. | 400 | 7 | ||||||||||
S Foods, Inc. | 100 | 5 | ||||||||||
Sakata Seed Corp. | 200 | 7 | ||||||||||
Shiseido Co. Ltd. | 500 | 24 | ||||||||||
Shoei Foods Corp. | 200 | 8 | ||||||||||
ST Corp. | 300 | 7 | ||||||||||
Tsuruha Holdings, Inc. | 100 | 14 | ||||||||||
Valor Holdings Co. Ltd. | 400 | 9 | ||||||||||
Warabeya Nichiyo Holdings Co. Ltd. | 300 | 9 | ||||||||||
Yakult Honsha Co. Ltd. | 100 | 8 | ||||||||||
|
| |||||||||||
509 | ||||||||||||
|
| |||||||||||
ENERGY 0.7% | ||||||||||||
Fuji Oil Co. Ltd. | 1,400 | 8 | ||||||||||
Idemitsu Kosan Co. Ltd. | 500 | 20 | ||||||||||
Inpex Corp. | 2,400 | 30 | ||||||||||
Japan Petroleum Exploration Co. Ltd. | 300 | 8 | ||||||||||
JXTG Holdings, Inc. | 15,100 | 97 | ||||||||||
Showa Shell Sekiyu KK | 900 | 12 | ||||||||||
|
| |||||||||||
175 | ||||||||||||
|
| |||||||||||
FINANCIALS 0.7% | ||||||||||||
Chiba Bank Ltd. | 1,000 | 8 | ||||||||||
Dai-ichi Life Holdings, Inc. | 2,100 | 43 | ||||||||||
Daiwa Securities Group, Inc. | 3,000 | 19 | ||||||||||
Ehime Bank Ltd. | 700 | 8 | ||||||||||
Fuyo General Lease Co. Ltd. | 100 | 7 | ||||||||||
Ichiyoshi Securities Co. Ltd. | 600 | 7 | ||||||||||
Jafco Co. Ltd. | 200 | 12 | ||||||||||
Japan Exchange Group, Inc. | 400 | 7 | ||||||||||
Japan Post Holdings Co. Ltd. | 600 | 7 | ||||||||||
Kyokuto Securities Co. Ltd. | 500 | 7 | ||||||||||
Marusan Securities Co. Ltd. | 800 | 7 | ||||||||||
North Pacific Bank Ltd. | 2,100 | 7 | ||||||||||
Okasan Securities Group, Inc. | 1,000 | 6 | ||||||||||
Sompo Holdings, Inc. | 200 | 8 | ||||||||||
Zenkoku Hosho Co. Ltd. | 300 | 13 | ||||||||||
|
| |||||||||||
166 | ||||||||||||
|
| |||||||||||
HEALTH CARE 1.2% | ||||||||||||
Alfresa Holdings Corp. | 600 | 14 | ||||||||||
Astellas Pharma, Inc. | 2,800 | 36 | ||||||||||
Chugai Pharmaceutical Co. Ltd. | 200 | 10 | ||||||||||
Eisai Co. Ltd. | 400 | 23 | ||||||||||
Hogy Medical Co. Ltd. | 100 | 8 | ||||||||||
Hoya Corp. | 600 | 30 | ||||||||||
Kaken Pharmaceutical Co. Ltd. | 100 | 5 | ||||||||||
Medipal Holdings Corp. | 500 | 10 | ||||||||||
Nippon Shinyaku Co. Ltd. | 200 | 15 |
SHARES | MARKET VALUE (000S) | |||||||||||
Olympus Corp. | 300 | $ | 12 | |||||||||
Ono Pharmaceutical Co. Ltd. | 300 | 7 | ||||||||||
Otsuka Holdings Co. Ltd. | 100 | 4 | ||||||||||
Paramount Bed Holdings Co. Ltd. | 200 | 10 | ||||||||||
Santen Pharmaceutical Co. Ltd. | 400 | 6 | ||||||||||
Sawai Pharmaceutical Co. Ltd. | 100 | 4 | ||||||||||
Suzuken Co. Ltd. | 200 | 8 | ||||||||||
Sysmex Corp. | 100 | 8 | ||||||||||
Takeda Pharmaceutical Co. Ltd. | 1,100 | 62 | ||||||||||
Terumo Corp. | 200 | 9 | ||||||||||
Toho Holdings Co. Ltd. | 300 | 7 | ||||||||||
|
| |||||||||||
288 | ||||||||||||
|
| |||||||||||
INDUSTRIALS 5.5% | ||||||||||||
Aida Engineering Ltd. | 600 | 7 | ||||||||||
Alconix Corp. | 300 | 6 | ||||||||||
ANA Holdings, Inc. | 400 | 17 | ||||||||||
Asahi Diamond Industrial Co. Ltd. | 700 | 8 | ||||||||||
Asahi Glass Co. Ltd. | 300 | 13 | ||||||||||
Central Glass Co. Ltd. | 300 | 6 | ||||||||||
Dai Nippon Printing Co. Ltd. | 900 | 20 | ||||||||||
Daifuku Co. Ltd. | 100 | 5 | ||||||||||
Daikin Industries Ltd. | 300 | 35 | ||||||||||
Daiseki Co. Ltd. | 300 | 8 | ||||||||||
East Japan Railway Co. | 100 | 10 | ||||||||||
FANUC Corp. | 300 | 72 | ||||||||||
Fuji Electric Co. Ltd. | 2,000 | 15 | ||||||||||
Fujikura Ltd. | 1,400 | 12 | ||||||||||
Fujitec Co. Ltd. | 600 | 9 | ||||||||||
Furukawa Co. Ltd. | 400 | 8 | ||||||||||
Hanwa Co. Ltd. | 200 | 9 | ||||||||||
Harmonic Drive Systems, Inc. | 200 | 12 | ||||||||||
Hino Motors Ltd. | 1,100 | 14 | ||||||||||
ITOCHU Corp. | 1,000 | 19 | ||||||||||
Iwatani Corp. | 200 | 6 | ||||||||||
Japan Airlines Co. Ltd. | 1,500 | 59 | ||||||||||
JTEKT Corp. | 600 | 10 | ||||||||||
Juki Corp. | 400 | 7 | ||||||||||
Kajima Corp. | 1,000 | 10 | ||||||||||
Kanematsu Corp. | 600 | 8 | ||||||||||
Kawasaki Heavy Industries Ltd. | 200 | 7 | ||||||||||
Kawasaki Kisen Kaisha Ltd. | 200 | 5 | ||||||||||
Kinden Corp. | 400 | 7 | ||||||||||
Komatsu Ltd. | 2,300 | 83 | ||||||||||
Kubota Corp. | 1,000 | 20 | ||||||||||
Kumagai Gumi Co. Ltd. | 200 | 6 | ||||||||||
Kuroda Electric Co. Ltd. | 200 | 5 | ||||||||||
LIXIL Group Corp. | 300 | 8 | ||||||||||
Makino Milling Machine Co. Ltd. | 1,000 | 10 | ||||||||||
Makita Corp. | 400 | 17 | ||||||||||
Marubeni Corp. | 6,300 | 46 | ||||||||||
Meitec Corp. | 200 | 11 | ||||||||||
Minebea Mitsumi, Inc. | 700 | 15 | ||||||||||
MISUMI Group, Inc. | 200 | 6 | ||||||||||
Mitsubishi Heavy Industries Ltd. | 300 | 11 | ||||||||||
Mitsui & Co. Ltd. | 4,400 | 71 | ||||||||||
Mitsui Engineering & Shipbuilding Co. Ltd. | 500 | 7 | ||||||||||
Mitsui Matsushima Co. Ltd. | 500 | 7 | ||||||||||
Mitsui OSK Lines Ltd. | 200 | 7 | ||||||||||
Miura Co. Ltd. | 300 | 8 | ||||||||||
Nagase & Co. Ltd. | 600 | 11 | ||||||||||
Nidec Corp. | 200 | 28 | ||||||||||
Nippon Express Co. Ltd. | 200 | 13 |
SHARES | MARKET VALUE (000S) | |||||||||||
Nippon Sheet Glass Co. Ltd. (a) | 800 | $ | 7 | |||||||||
Nippon Yusen KK | 800 | 19 | ||||||||||
Nisshinbo Holdings, Inc. | 600 | 8 | ||||||||||
Nomura Co. Ltd. | 300 | 7 | ||||||||||
NSK Ltd. | 1,300 | 20 | ||||||||||
NTN Corp. | 1,700 | 8 | ||||||||||
Obara Group, Inc. | 100 | 7 | ||||||||||
Obayashi Corp. | 1,200 | 15 | ||||||||||
OSG Corp. | 400 | 9 | ||||||||||
Pasona Group, Inc. | 400 | 8 | ||||||||||
Penta-Ocean Construction Co. Ltd. | 900 | 7 | ||||||||||
Recruit Holdings Co. Ltd. | 1,200 | 30 | ||||||||||
Ryobi Ltd. | 300 | 9 | ||||||||||
Sakai Moving Service Co. Ltd. | 100 | 5 | ||||||||||
Sanwa Holdings Corp. | 600 | 8 | ||||||||||
Sanyo Denki Co. Ltd. | 100 | 7 | ||||||||||
Seino Holdings Co. Ltd. | 900 | 14 | ||||||||||
Shima Seiki Manufacturing Ltd. | 100 | 6 | ||||||||||
Shimizu Corp. | 700 | 7 | ||||||||||
Shinsho Corp. | 300 | 9 | ||||||||||
SHO-BOND Holdings Co. Ltd. | 100 | 7 | ||||||||||
SMC Corp. | 100 | 41 | ||||||||||
Sodick Co. Ltd. | 500 | 6 | ||||||||||
Sohgo Security Services Co. Ltd. | 200 | 11 | ||||||||||
Sojitz Corp. | 5,400 | 17 | ||||||||||
Star Micronics Co. Ltd. | 500 | 9 | ||||||||||
Sumitomo Corp. | 1,100 | 19 | ||||||||||
Sumitomo Mitsui Construction Co. Ltd. | 1,320 | 7 | ||||||||||
Taikisha Ltd. | 300 | 10 | ||||||||||
Taisei Corp. | 500 | 25 | ||||||||||
Takeuchi Manufacturing Co. Ltd. | 300 | 7 | ||||||||||
Tatsuta Electric Wire and Cable Co. Ltd. | 900 | 7 | ||||||||||
TechnoPro Holdings, Inc. | 200 | 11 | ||||||||||
Toa Corp. (a) | 200 | 5 | ||||||||||
Tobu Railway Co. Ltd. | 300 | 10 | ||||||||||
TOKAI Holdings Corp. | 900 | 8 | ||||||||||
Toppan Printing Co. Ltd. | 2,000 | 18 | ||||||||||
Toshiba Corp. (a) | 3,000 | 8 | ||||||||||
Toshiba Plant Systems & Services Corp. | 400 | 7 | ||||||||||
TOTO Ltd. | 200 | 12 | ||||||||||
Toyota Tsusho Corp. | 1,000 | 40 | ||||||||||
Tsugami Corp. | 1,000 | 13 | ||||||||||
West Japan Railway Co. | 200 | 15 | ||||||||||
Yuasa Trading Co. Ltd. | 200 | 7 | ||||||||||
|
| |||||||||||
1,344 | ||||||||||||
|
| |||||||||||
INFORMATION TECHNOLOGY 3.6% | ||||||||||||
Advantest Corp. | 400 | 7 | ||||||||||
Alps Electric Co. Ltd. | 300 | 9 | ||||||||||
Amano Corp. | 200 | 5 | ||||||||||
Anritsu Corp. | 700 | 8 | ||||||||||
Arisawa Manufacturing Co. Ltd. | 700 | 8 | ||||||||||
Brother Industries Ltd. | 300 | 7 | ||||||||||
Canon, Inc. | 1,600 | 60 | ||||||||||
Capcom Co. Ltd. | 400 | 13 | ||||||||||
Daiwabo Holdings Co. Ltd. | 200 | 8 | ||||||||||
Dexerials Corp. | 600 | 8 | ||||||||||
Fujitsu Ltd. | 3,000 | 21 | ||||||||||
Gree, Inc. | 1,200 | 7 | ||||||||||
Hitachi Kokusai Electric, Inc. | 400 | 11 | ||||||||||
Hitachi Ltd. | 21,000 | 163 |
32 | PIMCO EQUITY SERIES | See Accompanying Notes |
Table of Contents
December 31, 2017 (Unaudited)
SHARES | MARKET VALUE (000S) | |||||||||||
Horiba Ltd. | 200 | $ | 12 | |||||||||
Hosiden Corp. | 600 | 9 | ||||||||||
Ibiden Co. Ltd. | 400 | 6 | ||||||||||
Ines Corp. | 700 | 7 | ||||||||||
Iriso Electronics Co. Ltd. | 100 | 6 | ||||||||||
Japan Display, Inc. (a) | 3,500 | 7 | ||||||||||
Kaga Electronics Co. Ltd. | 300 | 8 | ||||||||||
Keyence Corp. | 100 | 56 | ||||||||||
Konami Holdings Corp. | 200 | 11 | ||||||||||
Konica Minolta, Inc. | 1,200 | 11 | ||||||||||
Kyocera Corp. | 400 | 26 | ||||||||||
Mixi, Inc. | 100 | 4 | ||||||||||
Murata Manufacturing Co. Ltd. | 200 | 27 | ||||||||||
NEC Corp. | 800 | 22 | ||||||||||
NET One Systems Co. Ltd. | 1,100 | 17 | ||||||||||
Nexon Co. Ltd. (a) | 300 | 9 | ||||||||||
Nintendo Co. Ltd. | 100 | 36 | ||||||||||
Nippon Chemi-Con Corp. | 100 | 3 | ||||||||||
Nippon Electric Glass Co. Ltd. | 300 | 11 | ||||||||||
Nomura Research Institute Ltd. | 200 | 9 | ||||||||||
Oki Electric Industry Co. Ltd. | 500 | 7 | ||||||||||
Omron Corp. | 500 | 30 | ||||||||||
Otsuka Corp. | 100 | 8 | ||||||||||
Renesas Electronics Corp. (a) | 600 | 7 | ||||||||||
Ricoh Co. Ltd. | 2,300 | 21 | ||||||||||
Rohm Co. Ltd. | 100 | 11 | ||||||||||
Sanken Electric Co. Ltd. | 1,000 | 7 | ||||||||||
SCREEN Holdings Co. Ltd. | 200 | 16 | ||||||||||
Seiko Epson Corp. | 500 | 12 | ||||||||||
Shimadzu Corp. | 300 | 7 | ||||||||||
Square Enix Holdings Co. Ltd. | 100 | 5 | ||||||||||
SUMCO Corp. | 300 | 8 | ||||||||||
Tokyo Electron Device Ltd. | 500 | 9 | ||||||||||
Tokyo Electron Ltd. | 200 | 36 | ||||||||||
Tokyo Seimitsu Co. Ltd. | 300 | 12 | ||||||||||
Topcon Corp. | 400 | 9 | ||||||||||
Trend Micro, Inc. | 100 | 6 | ||||||||||
Ulvac, Inc. | 100 | 6 | ||||||||||
Wacom Co. Ltd. | 1,300 | 7 | ||||||||||
Yahoo Japan Corp. | 1,600 | 7 | ||||||||||
Yaskawa Electric Corp. | 500 | 22 | ||||||||||
|
| |||||||||||
885 | ||||||||||||
|
| |||||||||||
MATERIALS 2.5% | ||||||||||||
Asahi Kasei Corp. | 1,000 | 13 | ||||||||||
Dai Nippon Toryo Co. Ltd. | 400 | 6 | ||||||||||
Daicel Corp. | 600 | 7 | ||||||||||
Daido Steel Co. Ltd. | 100 | 6 | ||||||||||
Daiki Aluminium Industry Co. Ltd. | 1,000 | 8 | ||||||||||
FP Corp. | 100 | 5 | ||||||||||
Fuji Seal International, Inc. | 200 | 6 | ||||||||||
Hitachi Metals Ltd. | 500 | 7 | ||||||||||
Ishihara Sangyo Kaisha Ltd. (a) | 400 | 8 | ||||||||||
JFE Holdings, Inc. | 1,800 | 43 | ||||||||||
Kansai Paint Co. Ltd. | 400 | 10 | ||||||||||
KH Neochem Co. Ltd. | 300 | 8 | ||||||||||
Kobe Steel Ltd. | 1,200 | 11 | ||||||||||
Kuraray Co. Ltd. | 400 | 8 | ||||||||||
Mitsubishi Chemical Holdings Corp. | 1,600 | 17 | ||||||||||
Mitsubishi Gas Chemical Co., Inc. | 300 | 9 | ||||||||||
Mitsubishi Materials Corp. | 400 | 14 | ||||||||||
Mitsui Chemicals, Inc. | 500 | 16 | ||||||||||
Mitsui Mining & Smelting Co. Ltd. | 100 | 6 | ||||||||||
Nippon Light Metal Holdings Co. Ltd. | 2,700 | 8 |
SHARES | MARKET VALUE (000S) | |||||||||||
Nippon Paint Holdings Co. Ltd. | 300 | $ | 9 | |||||||||
Nippon Paper Industries Co. Ltd. | 600 | 11 | ||||||||||
Nippon Steel & Sumitomo Metal Corp. | 1,800 | 46 | ||||||||||
Nippon Valqua Industries Ltd. | 300 | 8 | ||||||||||
Nittetsu Mining Co. Ltd. | 100 | 7 | ||||||||||
Nitto Denko Corp. | 300 | 27 | ||||||||||
Oji Holdings Corp. | 5,000 | 33 | ||||||||||
Osaka Soda Co. Ltd. | 300 | 8 | ||||||||||
Rengo Co. Ltd. | 1,100 | 8 | ||||||||||
Sanyo Special Steel Co. Ltd. | 300 | 8 | ||||||||||
Sekisui Plastics Co. Ltd. | 500 | 7 | ||||||||||
Shin-Etsu Chemical Co. Ltd. | 400 | 40 | ||||||||||
Showa Denko KK | 300 | 13 | ||||||||||
Sumitomo Chemical Co. Ltd. | 6,000 | 43 | ||||||||||
Sumitomo Metal Mining Co. Ltd. | 200 | 9 | ||||||||||
Taiheiyo Cement Corp. | 200 | 9 | ||||||||||
Tokai Carbon Co. Ltd. | 700 | 9 | ||||||||||
Tokuyama Corp. | 500 | 16 | ||||||||||
Tokyo Ohka Kogyo Co. Ltd. | 300 | 13 | ||||||||||
Tokyo Steel Manufacturing Co. Ltd. | 800 | 7 | ||||||||||
Toray Industries, Inc. | 3,800 | 36 | ||||||||||
Tosoh Corp. | 300 | 7 | ||||||||||
Toyo Seikan Group Holdings Ltd. ‘L’ | 400 | 6 | ||||||||||
Toyobo Co. Ltd. | 400 | 7 | ||||||||||
Ube Industries Ltd. | 300 | 9 | ||||||||||
|
| |||||||||||
612 | ||||||||||||
|
| |||||||||||
REAL ESTATE 0.3% | ||||||||||||
Daito Trust Construction Co. Ltd. | 100 | 20 | ||||||||||
Daiwa House Industry Co. Ltd. | 500 | 19 | ||||||||||
Kenedix, Inc. | 1,100 | 7 | ||||||||||
Leopalace21 Corp. | 800 | 6 | ||||||||||
Open House Co. Ltd. | 100 | 5 | ||||||||||
Relo Group, Inc. | 500 | 14 | ||||||||||
|
| |||||||||||
71 | ||||||||||||
|
| |||||||||||
TELECOMMUNICATION SERVICES 1.0% | ||||||||||||
KDDI Corp. | 2,300 | 57 | ||||||||||
Nippon Telegraph & Telephone Corp. | 1,000 | 47 | ||||||||||
NTT DOCOMO, Inc. | 500 | 12 | ||||||||||
SoftBank Group Corp. | 1,600 | 126 | ||||||||||
|
| |||||||||||
242 | ||||||||||||
|
| |||||||||||
UTILITIES 0.7% | ||||||||||||
Chubu Electric Power Co., Inc. | 2,100 | 26 | ||||||||||
Chugoku Electric Power Co., Inc. | 1,600 | 17 | ||||||||||
Electric Power Development Co. Ltd. | 600 | 16 | ||||||||||
Hokuriku Electric Power Co. | 800 | 6 | ||||||||||
Kansai Electric Power Co., Inc. | 600 | 7 | ||||||||||
Osaka Gas Co. Ltd. | 1,500 | 29 | ||||||||||
Shikoku Electric Power Co., Inc. | 600 | 7 | ||||||||||
Shizuoka Gas Co. Ltd. | 900 | 8 | ||||||||||
Toho Gas Co. Ltd. | 200 | 5 | ||||||||||
Tokyo Electric Power Co. Holdings, Inc. (a) | 5,700 | 23 | ||||||||||
Tokyo Gas Co. Ltd. | 1,200 | 27 | ||||||||||
|
| |||||||||||
171 | ||||||||||||
|
| |||||||||||
Total Japan | 5,792 | |||||||||||
|
| |||||||||||
JERSEY, CHANNEL ISLANDS 0.0% | ||||||||||||
MATERIALS 0.0% | ||||||||||||
Randgold Resources Ltd. | 79 | 8 | ||||||||||
|
| |||||||||||
Total Jersey, Channel Islands | 8 | |||||||||||
|
|
SHARES | MARKET VALUE (000S) | |||||||||||
LUXEMBOURG 0.5% | ||||||||||||
CONSUMER DISCRETIONARY 0.1% | ||||||||||||
RTL Group S.A. | 200 | $ | 16 | |||||||||
SES S.A. | 521 | 8 | ||||||||||
|
| |||||||||||
24 | ||||||||||||
|
| |||||||||||
MATERIALS 0.3% | ||||||||||||
APERAM S.A. | 142 | 8 | ||||||||||
ArcelorMittal | 2,161 | 70 | ||||||||||
|
| |||||||||||
78 | ||||||||||||
|
| |||||||||||
REAL ESTATE 0.1% | ||||||||||||
Grand City Properties S.A. | 312 | 7 | ||||||||||
|
| |||||||||||
Total Luxembourg | 109 | |||||||||||
|
| |||||||||||
MACAU 0.1% | ||||||||||||
CONSUMER DISCRETIONARY 0.1% | ||||||||||||
MGM China Holdings Ltd. | 2,400 | 7 | ||||||||||
Sands China Ltd. | 2,400 | 13 | ||||||||||
Wynn Macau Ltd. | 2,800 | 9 | ||||||||||
|
| |||||||||||
29 | ||||||||||||
|
| |||||||||||
Total Macau | 29 | |||||||||||
|
| |||||||||||
NETHERLANDS 3.4% | ||||||||||||
CONSUMER STAPLES 0.4% | ||||||||||||
ForFarmers NV | 599 | 8 | ||||||||||
Heineken Holding NV | 264 | 26 | ||||||||||
Heineken NV | 201 | 21 | ||||||||||
Koninklijke Ahold Delhaize NV | 1,953 | 43 | ||||||||||
Sligro Food Group NV | 154 | 7 | ||||||||||
|
| |||||||||||
105 | ||||||||||||
|
| |||||||||||
ENERGY 0.6% | ||||||||||||
Core Laboratories NV | 71 | 8 | ||||||||||
Fugro NV (a) | 1,005 | 16 | ||||||||||
Royal Dutch Shell PLC ‘A’ | 3,726 | 124 | ||||||||||
|
| |||||||||||
148 | ||||||||||||
|
| |||||||||||
FINANCIALS 1.0% | ||||||||||||
ABN AMRO Group NV | 230 | 8 | ||||||||||
Aegon NV | 6,402 | 41 | ||||||||||
ASR Nederland NV | 177 | 7 | ||||||||||
Euronext NV | 116 | 7 | ||||||||||
ING Groep NV - Dutch Certificate | 7,749 | 142 | ||||||||||
NN Group NV | 564 | 24 | ||||||||||
|
| |||||||||||
229 | ||||||||||||
|
| |||||||||||
HEALTH CARE 0.1% | ||||||||||||
Koninklijke Philips NV | 729 | 28 | ||||||||||
|
| |||||||||||
INDUSTRIALS 0.4% | ||||||||||||
Arcadis NV | 370 | 8 | ||||||||||
Boskalis Westminster | 199 | 8 | ||||||||||
Brunel International NV | 410 | 8 | ||||||||||
Chicago Bridge & Iron Co. NV | 398 | 6 | ||||||||||
IMCD Group NV | 115 | 7 | ||||||||||
Koninklijke BAM Groep NV | 1,703 | 8 | ||||||||||
Philips Lighting NV | 319 | 12 | ||||||||||
PostNL NV | 1,498 | 7 | ||||||||||
TKH Group NV | 217 | 14 |
See Accompanying Notes | SEMIANNUAL REPORT | DECEMBER 31, 2017 | 33 |
Table of Contents
Schedule of Investments PIMCO RAFI Dynamic Multi-Factor International Equity ETF (Cont.)
SHARES | MARKET VALUE (000S) | |||||||||||
Wolters Kluwer NV | 383 | $ | 20 | |||||||||
|
| |||||||||||
98 | ||||||||||||
|
| |||||||||||
INFORMATION TECHNOLOGY 0.5% | ||||||||||||
ASML Holding NV | 432 | 75 | ||||||||||
BE Semiconductor Industries NV | 91 | 7 | ||||||||||
NXP Semiconductors NV (a) | 245 | 29 | ||||||||||
|
| |||||||||||
111 | ||||||||||||
|
| |||||||||||
MATERIALS 0.3% | ||||||||||||
Akzo Nobel NV | 475 | 42 | ||||||||||
Corbion NV | 259 | 8 | ||||||||||
Koninklijke DSM NV | 311 | 30 | ||||||||||
|
| |||||||||||
80 | ||||||||||||
|
| |||||||||||
TELECOMMUNICATION SERVICES 0.1% | ||||||||||||
Koninklijke KPN NV | 4,807 | 17 | ||||||||||
VEON Ltd. ADR | 4,313 | 16 | ||||||||||
|
| |||||||||||
33 | ||||||||||||
|
| |||||||||||
Total Netherlands | 832 | |||||||||||
|
| |||||||||||
NEW ZEALAND 0.4% | ||||||||||||
CONSUMER DISCRETIONARY 0.0% | ||||||||||||
SKYCITY Entertainment Group Ltd. | 2,375 | 7 | ||||||||||
|
| |||||||||||
HEALTH CARE 0.1% | ||||||||||||
Fisher & Paykel Healthcare Corp. Ltd. | 1,816 | 18 | ||||||||||
|
| |||||||||||
INDUSTRIALS 0.0% | ||||||||||||
Mainfreight Ltd. | 495 | 9 | ||||||||||
|
| |||||||||||
MATERIALS 0.1% | ||||||||||||
Fletcher Building Ltd. | 1,654 | 9 | ||||||||||
|
| |||||||||||
REAL ESTATE 0.0% | ||||||||||||
Argosy Property Ltd. | 11,583 | 9 | ||||||||||
|
| |||||||||||
TELECOMMUNICATION SERVICES 0.1% | ||||||||||||
Chorus Ltd. | 2,481 | 8 | ||||||||||
Spark New Zealand Ltd. | 7,521 | 19 | ||||||||||
|
| |||||||||||
27 | ||||||||||||
|
| |||||||||||
UTILITIES 0.1% | ||||||||||||
Contact Energy Ltd. | 1,681 | 7 | ||||||||||
Genesis Energy Ltd. | 4,962 | 9 | ||||||||||
Mercury NZ Ltd. | 3,586 | 8 | ||||||||||
|
| |||||||||||
24 | ||||||||||||
|
| |||||||||||
Total New Zealand | 103 | |||||||||||
|
| |||||||||||
NORWAY 1.0% | ||||||||||||
CONSUMER STAPLES 0.1% | ||||||||||||
Austevoll Seafood ASA | 961 | 8 | ||||||||||
Marine Harvest ASA | 428 | 7 | ||||||||||
Orkla ASA | 708 | 8 | ||||||||||
|
| |||||||||||
23 | ||||||||||||
|
| |||||||||||
ENERGY 0.4% | ||||||||||||
Aker Solutions ASA | 1,404 | 8 | ||||||||||
Nordic American Tankers Ltd. | 1,791 | 4 |
SHARES | MARKET VALUE (000S) | |||||||||||
Petroleum Geo-Services ASA | 5,068 | $ | 10 | |||||||||
Ship Finance International Ltd. | 482 | 8 | ||||||||||
Statoil ASA | 3,707 | 79 | ||||||||||
|
| |||||||||||
109 | ||||||||||||
|
| |||||||||||
FINANCIALS 0.1% | ||||||||||||
DNB ASA | 718 | 13 | ||||||||||
SpareBank 1 SMN | 677 | 7 | ||||||||||
SpareBank 1 SR-Bank ASA | 786 | 8 | ||||||||||
|
| |||||||||||
28 | ||||||||||||
|
| |||||||||||
MATERIALS 0.2% | ||||||||||||
Norsk Hydro ASA | 1,107 | 8 | ||||||||||
Yara International ASA | 685 | 32 | ||||||||||
|
| |||||||||||
40 | ||||||||||||
|
| |||||||||||
TELECOMMUNICATION SERVICES 0.2% | ||||||||||||
Telenor ASA | 2,545 | 55 | ||||||||||
|
| |||||||||||
Total Norway | 255 | |||||||||||
|
| |||||||||||
PORTUGAL 0.4% | ||||||||||||
CONSUMER STAPLES 0.1% | ||||||||||||
Jeronimo Martins SGPS S.A. | 509 | 10 | ||||||||||
Sonae SGPS S.A. | 5,348 | 7 | ||||||||||
|
| |||||||||||
17 | ||||||||||||
|
| |||||||||||
FINANCIALS 0.0% | ||||||||||||
Banco Comercial Portugues S.A. ‘R’ (a) | 27,338 | 9 | ||||||||||
|
| |||||||||||
INDUSTRIALS 0.0% | ||||||||||||
CTT-Correios de Portugal S.A. | 1,088 | 5 | ||||||||||
|
| |||||||||||
MATERIALS 0.0% | ||||||||||||
Navigator Co. S.A. | 1,413 | 7 | ||||||||||
|
| |||||||||||
TELECOMMUNICATION SERVICES 0.0% | ||||||||||||
Pharol SGPS S.A. (a) | 21,265 | 6 | ||||||||||
|
| |||||||||||
UTILITIES 0.3% | ||||||||||||
EDP - Energias de Portugal S.A. | 15,160 | 53 | ||||||||||
REN - Redes Energeticas Nacionais SGPS S.A. | 2,701 | 8 | ||||||||||
|
| |||||||||||
61 | ||||||||||||
|
| |||||||||||
Total Portugal | 105 | |||||||||||
|
| |||||||||||
SINGAPORE 1.8% | ||||||||||||
CONSUMER DISCRETIONARY 0.1% | ||||||||||||
Genting Singapore PLC | 7,300 | 7 | ||||||||||
Jardine Cycle & Carriage Ltd. | 200 | 6 | ||||||||||
Singapore Press Holdings Ltd. | 7,400 | 15 | ||||||||||
|
| |||||||||||
28 | ||||||||||||
|
| |||||||||||
CONSUMER STAPLES 0.1% | ||||||||||||
Golden Agri-Resources Ltd. | 25,900 | 7 | ||||||||||
Wilmar International Ltd. | 6,000 | 14 | ||||||||||
|
| |||||||||||
21 | ||||||||||||
|
| |||||||||||
SHARES | MARKET VALUE (000S) | |||||||||||
ENERGY 0.0% | ||||||||||||
BW LPG Ltd. | 1,702 | $ | 8 | |||||||||
|
| |||||||||||
FINANCIALS 0.7% | ||||||||||||
DBS Group Holdings Ltd. | 3,000 | 55 | ||||||||||
Oversea-Chinese Banking Corp. Ltd. | 5,700 | 53 | ||||||||||
Singapore Exchange Ltd. | 1,600 | 9 | ||||||||||
United Overseas Bank Ltd. | 2,200 | 43 | ||||||||||
|
| |||||||||||
160 | ||||||||||||
|
| |||||||||||
HEALTH CARE 0.0% | ||||||||||||
Haw Par Corp. Ltd. | 1,000 | 9 | ||||||||||
|
| |||||||||||
INDUSTRIALS 0.4% | ||||||||||||
Chip Eng Seng Corp. Ltd. | 10,500 | 8 | ||||||||||
ComfortDelGro Corp. Ltd. | 6,600 | 10 | ||||||||||
Hutchison Port Holdings Trust | 21,900 | 9 | ||||||||||
Keppel Corp. Ltd. | 5,200 | 28 | ||||||||||
SATS Ltd. | 1,800 | 7 | ||||||||||
Sembcorp Industries Ltd. | 3,600 | 8 | ||||||||||
Singapore Airlines Ltd. | 2,000 | 16 | ||||||||||
Singapore Post Ltd. | 8,600 | 8 | ||||||||||
Singapore Technologies Engineering Ltd. | 3,000 | 7 | ||||||||||
|
| |||||||||||
101 | ||||||||||||
|
| |||||||||||
INFORMATION TECHNOLOGY 0.1% | ||||||||||||
Venture Corp. Ltd. | 700 | 11 | ||||||||||
|
| |||||||||||
REAL ESTATE 0.1% | ||||||||||||
City Developments Ltd. | 1,000 | 9 | ||||||||||
Global Logistic Properties Ltd. | 2,900 | 7 | ||||||||||
UOL Group Ltd. | 2,200 | 15 | ||||||||||
|
| |||||||||||
31 | ||||||||||||
|
| |||||||||||
TELECOMMUNICATION SERVICES 0.3% | ||||||||||||
M1 Ltd. | 6,700 | 9 | ||||||||||
Singapore Telecommunications Ltd. | 23,800 | 63 | ||||||||||
StarHub Ltd. | 3,300 | 7 | ||||||||||
|
| |||||||||||
79 | ||||||||||||
|
| |||||||||||
Total Singapore | 448 | |||||||||||
|
| |||||||||||
SOUTH AFRICA 0.1% | ||||||||||||
HEALTH CARE 0.0% | ||||||||||||
Mediclinic International PLC | 886 | 8 | ||||||||||
|
| |||||||||||
MATERIALS 0.1% | ||||||||||||
Mondi PLC | 482 | 12 | ||||||||||
|
| |||||||||||
Total South Africa | 20 | |||||||||||
|
| |||||||||||
SPAIN 3.4% | ||||||||||||
CONSUMER DISCRETIONARY 0.1% | ||||||||||||
Industria de Diseno Textil S.A. | 716 | 25 | ||||||||||
Mediaset Espana Comunicacion S.A. | 768 | 9 | ||||||||||
|
| |||||||||||
34 | ||||||||||||
|
| |||||||||||
CONSUMER STAPLES 0.1% | ||||||||||||
Distribuidora Internacional de Alimentacion S.A. | 2,318 | 12 | ||||||||||
Ebro Foods S.A. | 319 | 7 |
34 | PIMCO EQUITY SERIES | See Accompanying Notes |
Table of Contents
December 31, 2017 (Unaudited)
SHARES | MARKET VALUE (000S) | |||||||||||
Viscofan S.A. | 163 | $ | 11 | |||||||||
|
| |||||||||||
30 | ||||||||||||
|
| |||||||||||
ENERGY 0.5% | ||||||||||||
Enagas S.A. | 426 | 12 | ||||||||||
Repsol S.A. | 5,675 | 101 | ||||||||||
|
| |||||||||||
113 | ||||||||||||
|
| |||||||||||
FINANCIALS 1.0% | ||||||||||||
Banco Bilbao Vizcaya Argentaria S.A. | 4,923 | 42 | ||||||||||
Banco de Sabadell S.A. | 4,584 | 9 | ||||||||||
Banco Santander S.A. | 22,670 | 149 | ||||||||||
Bankia S.A. | 1,490 | 7 | ||||||||||
CaixaBank S.A. | 2,584 | 12 | ||||||||||
Grupo Catalana Occidente S.A. | 169 | 8 | ||||||||||
Mapfre S.A. | 2,303 | 7 | ||||||||||
|
| |||||||||||
234 | ||||||||||||
|
| |||||||||||
HEALTH CARE 0.1% | ||||||||||||
Grifols S.A. | 518 | 15 | ||||||||||
|
| |||||||||||
INDUSTRIALS 0.4% | ||||||||||||
Abertis Infraestructuras S.A. | 1,137 | 25 | ||||||||||
ACS Actividades de Construccion y Servicios S.A. | 736 | 29 | ||||||||||
Aena SME S.A. | 137 | 28 | ||||||||||
Cia de Distribucion Integral Logista Holdings S.A. | 275 | 6 | ||||||||||
Ferrovial S.A. | 339 | 8 | ||||||||||
Obrascon Huarte Lain S.A. (a) | 1,255 | 7 | ||||||||||
Prosegur Cia de Seguridad S.A. | 882 | 7 | ||||||||||
|
| |||||||||||
110 | ||||||||||||
|
| |||||||||||
INFORMATION TECHNOLOGY 0.2% | ||||||||||||
Amadeus IT Group S.A. | 739 | 53 | ||||||||||
|
| |||||||||||
MATERIALS 0.0% | ||||||||||||
Ence Energia y Celulosa S.A. | 1,068 | 7 | ||||||||||
|
| |||||||||||
TELECOMMUNICATION SERVICES 0.2% | ||||||||||||
Telefonica S.A. | 4,135 | 40 | ||||||||||
|
| |||||||||||
UTILITIES 0.8% | ||||||||||||
Endesa S.A. | 3,557 | 76 | ||||||||||
Gas Natural SDG S.A. | 607 | 14 | ||||||||||
Iberdrola S.A. | 10,996 | 85 | ||||||||||
Red Electrica Corp. S.A. | 716 | 16 | ||||||||||
|
| |||||||||||
191 | ||||||||||||
|
| |||||||||||
Total Spain | 827 | |||||||||||
|
| |||||||||||
SWEDEN 3.1% | ||||||||||||
CONSUMER DISCRETIONARY 0.5% | ||||||||||||
Autoliv, Inc. | 249 | 32 | ||||||||||
Electrolux AB ‘B’ | 667 | 21 | ||||||||||
Hennes & Mauritz AB ‘B’ | 2,409 | 50 | ||||||||||
Husqvarna AB ‘B’ | 847 | 8 | ||||||||||
JM AB | 306 | 7 | ||||||||||
Nobia AB | 699 | 6 | ||||||||||
|
| |||||||||||
124 | ||||||||||||
|
|
SHARES | MARKET VALUE (000S) | |||||||||||
CONSUMER STAPLES 0.1% | ||||||||||||
Axfood AB | 663 | $ | 13 | |||||||||
Swedish Match AB | 386 | 15 | ||||||||||
|
| |||||||||||
28 | ||||||||||||
|
| |||||||||||
FINANCIALS 0.2% | ||||||||||||
Industrivarden AB ‘C’ | 353 | 9 | ||||||||||
Ratos AB ‘B’ | 2,068 | 9 | ||||||||||
Svenska Handelsbanken AB ‘A’ | 1,896 | 26 | ||||||||||
|
| |||||||||||
44 | ||||||||||||
|
| |||||||||||
INDUSTRIALS 1.1% | ||||||||||||
Alfa Laval AB | 800 | 19 | ||||||||||
Assa Abloy AB ‘B’ | 771 | 16 | ||||||||||
Atlas Copco AB ‘A’ | 1,558 | 67 | ||||||||||
Intrum Justitia AB | 189 | 7 | ||||||||||
NCC AB ‘B’ | 377 | 7 | ||||||||||
S.A.S. AB (a) | 2,650 | 7 | ||||||||||
Sandvik AB | 2,416 | 42 | ||||||||||
Securitas AB ‘B’ | 714 | 13 | ||||||||||
SKF AB ‘B’ | 715 | 16 | ||||||||||
Trelleborg AB ‘B’ | 313 | 7 | ||||||||||
Volvo AB ‘B’ | 3,293 | 62 | ||||||||||
|
| |||||||||||
263 | ||||||||||||
|
| |||||||||||
INFORMATION TECHNOLOGY 0.6% | ||||||||||||
Hexagon AB ‘B’ | 148 | 7 | ||||||||||
Telefonaktiebolaget LM Ericsson ‘B’ | 19,234 | 127 | ||||||||||
|
| |||||||||||
134 | ||||||||||||
|
| |||||||||||
MATERIALS 0.1% | ||||||||||||
BillerudKorsnas AB | 617 | 10 | ||||||||||
Boliden AB | 279 | 9 | ||||||||||
Hexpol AB | 848 | 9 | ||||||||||
Svenska Cellulosa AB S.C.A. ‘B’ | 738 | 8 | ||||||||||
|
| |||||||||||
36 | ||||||||||||
|
| |||||||||||
TELECOMMUNICATION SERVICES 0.5% | ||||||||||||
Tele2 AB ‘B’ | 3,514 | 43 | ||||||||||
Telia Co. AB | 18,994 | 85 | ||||||||||
|
| |||||||||||
128 | ||||||||||||
|
| |||||||||||
Total Sweden | 757 | |||||||||||
|
| |||||||||||
SWITZERLAND 7.2% | ||||||||||||
CONSUMER DISCRETIONARY 0.5% | ||||||||||||
Cie Financiere Richemont S.A. | 890 | 81 | ||||||||||
Forbo Holding AG | 5 | 8 | ||||||||||
Garmin Ltd. | 274 | 16 | ||||||||||
Swatch Group AG | 25 | 10 | ||||||||||
Valora Holding AG | 28 | 9 | ||||||||||
|
| |||||||||||
124 | ||||||||||||
|
| |||||||||||
CONSUMER STAPLES 0.9% | ||||||||||||
Aryzta AG | 192 | 8 | ||||||||||
Barry Callebaut AG | 4 | 9 | ||||||||||
Coca-Cola HBC AG | 282 | 9 | ||||||||||
Emmi AG | 10 | 7 | ||||||||||
Nestle S.A. | 2,097 | 180 | ||||||||||
|
| |||||||||||
213 | ||||||||||||
|
|
SHARES | MARKET VALUE (000S) | |||||||||||
ENERGY 0.1% | ||||||||||||
Transocean Ltd. | 2,812 | $ | 30 | |||||||||
|
| |||||||||||
FINANCIALS 2.0% | ||||||||||||
Baloise Holding AG | 129 | 20 | ||||||||||
Banque Cantonale Vaudoise | 9 | 7 | ||||||||||
Cembra Money Bank AG | 189 | 18 | ||||||||||
Credit Suisse Group AG | 1,813 | 32 | ||||||||||
GAM Holding AG | 741 | 12 | ||||||||||
Julius Baer Group Ltd. | 212 | 13 | ||||||||||
St Galler Kantonalbank AG | 19 | 9 | ||||||||||
Swiss Life Holding AG | 24 | 9 | ||||||||||
Swiss Re AG | 1,300 | 122 | ||||||||||
UBS Group AG | 2,742 | 50 | ||||||||||
Valiant Holding AG | 67 | 7 | ||||||||||
Zurich Insurance Group AG | 618 | 188 | ||||||||||
|
| |||||||||||
487 | ||||||||||||
|
| |||||||||||
HEALTH CARE 0.8% | ||||||||||||
Lonza Group AG | 135 | 36 | ||||||||||
Roche Holding AG | 413 | 105 | ||||||||||
Sonova Holding AG | 119 | 19 | ||||||||||
Straumann Holding AG | 23 | 16 | ||||||||||
Vifor Pharma AG | 93 | 12 | ||||||||||
|
| |||||||||||
188 | ||||||||||||
|
| |||||||||||
INDUSTRIALS 1.3% | ||||||||||||
ABB Ltd. | 4,655 | 125 | ||||||||||
Adecco Group AG | 136 | 10 | ||||||||||
Bobst Group S.A. | 55 | 7 | ||||||||||
Bucher Industries AG | 37 | 15 | ||||||||||
Conzzeta AG | 7 | 7 | ||||||||||
dormakaba Holding AG | 8 | 8 | ||||||||||
Flughafen Zurich AG | 32 | 7 | ||||||||||
Geberit AG | 49 | 22 | ||||||||||
Georg Fischer AG | 17 | 23 | ||||||||||
Kuehne + Nagel International AG | 138 | 24 | ||||||||||
Panalpina Welttransport Holding AG | 76 | 12 | ||||||||||
Schindler Holding AG | 41 | 9 | ||||||||||
Schweiter Technologies AG | 6 | 8 | ||||||||||
SGS S.A. | 10 | 26 | ||||||||||
Wizz Air Holdings PLC (a) | 154 | 8 | ||||||||||
|
| |||||||||||
311 | ||||||||||||
|
| |||||||||||
INFORMATION TECHNOLOGY 0.3% | ||||||||||||
ALSO Holding AG | 54 | 7 | ||||||||||
Logitech International S.A. | 295 | 10 | ||||||||||
STMicroelectronics NV | 484 | 11 | ||||||||||
TE Connectivity Ltd. | 507 | 48 | ||||||||||
|
| |||||||||||
76 | ||||||||||||
|
| |||||||||||
MATERIALS 1.1% | ||||||||||||
Clariant AG | 713 | 20 | ||||||||||
EMS-Chemie Holding AG | 10 | 6 | ||||||||||
Ferrexpo PLC | 4,265 | 17 | ||||||||||
Givaudan S.A. | 16 | 37 | ||||||||||
Glencore PLC | 32,240 | 169 | ||||||||||
Sika AG | 3 | 24 | ||||||||||
|
| |||||||||||
273 | ||||||||||||
|
|
See Accompanying Notes | SEMIANNUAL REPORT | DECEMBER 31, 2017 | 35 |
Table of Contents
Schedule of Investments PIMCO RAFI Dynamic Multi-Factor International Equity ETF (Cont.)
SHARES | MARKET VALUE (000S) | |||||||||||
REAL ESTATE 0.1% | ||||||||||||
Allreal Holding AG | 44 | $ | 7 | |||||||||
PSP Swiss Property AG | 79 | 8 | ||||||||||
|
| |||||||||||
15 | ||||||||||||
|
| |||||||||||
TELECOMMUNICATION SERVICES 0.1% | ||||||||||||
Swisscom AG | 63 | 33 | ||||||||||
|
| |||||||||||
UTILITIES 0.0% | ||||||||||||
BKW AG | 122 | 7 | ||||||||||
|
| |||||||||||
Total Switzerland | 1,757 | |||||||||||
|
| |||||||||||
THAILAND 0.0% | ||||||||||||
CONSUMER STAPLES 0.0% | ||||||||||||
Thai Beverage PCL | 15,000 | 10 | ||||||||||
|
| |||||||||||
Total Thailand | 10 | |||||||||||
|
| |||||||||||
UNITED KINGDOM 16.3% | ||||||||||||
CONSUMER DISCRETIONARY 2.3% | ||||||||||||
Barratt Developments PLC | 1,227 | 11 | ||||||||||
BCA Marketplace PLC | 2,419 | 7 | ||||||||||
Bellway PLC | 379 | 18 | ||||||||||
Berkeley Group Holdings PLC | 249 | 14 | ||||||||||
Bovis Homes Group PLC | 471 | 7 | ||||||||||
Burberry Group PLC | 680 | 16 | ||||||||||
Card Factory PLC | 1,939 | 8 | ||||||||||
Cineworld Group PLC | 1,178 | 10 | ||||||||||
Compass Group PLC | 3,557 | 77 | ||||||||||
Daily Mail & General Trust PLC ‘A’ | 1,045 | 8 | ||||||||||
Dunelm Group PLC | 749 | 7 | ||||||||||
Fiat Chrysler Automobiles NV | 2,277 | 41 | ||||||||||
Greggs PLC | 401 | 8 | ||||||||||
Halfords Group PLC | 1,837 | 9 | ||||||||||
Inchcape PLC | 882 | 9 | ||||||||||
InterContinental Hotels Group PLC | 248 | 16 | ||||||||||
ITV PLC | 4,966 | 11 | ||||||||||
J D Wetherspoon PLC | 430 | 7 | ||||||||||
JD Sports Fashion PLC | 1,624 | 7 | ||||||||||
Kingfisher PLC | 12,754 | 58 | ||||||||||
Marks & Spencer Group PLC | 5,148 | 22 | ||||||||||
Marston’s PLC | 4,543 | 7 | ||||||||||
N Brown Group PLC | 2,005 | 7 | ||||||||||
Next PLC | 417 | 25 | ||||||||||
Pearson PLC | 4,636 | 46 | ||||||||||
Persimmon PLC | 628 | 23 | ||||||||||
Sky PLC (a) | 895 | 12 | ||||||||||
Sports Direct International PLC | 1,842 | 9 | ||||||||||
SSP Group PLC | 1,360 | 13 | ||||||||||
Taylor Wimpey PLC | 7,121 | 20 | ||||||||||
WH Smith PLC | 404 | 13 | ||||||||||
Whitbread PLC | 138 | 7 | ||||||||||
|
| |||||||||||
553 | ||||||||||||
|
| |||||||||||
CONSUMER STAPLES 3.5% | ||||||||||||
Associated British Foods PLC | 995 | 38 | ||||||||||
Booker Group PLC | 6,885 | 21 | ||||||||||
British American Tobacco PLC | 2,431 | 164 | ||||||||||
Britvic PLC | 863 | 9 | ||||||||||
Dairy Crest Group PLC | 945 | 7 | ||||||||||
Diageo PLC | 5,306 | 195 | ||||||||||
Imperial Brands PLC | 888 | 38 | ||||||||||
J Sainsbury PLC | 14,552 | 47 |
SHARES | MARKET VALUE (000S) | |||||||||||
Reckitt Benckiser Group PLC | 793 | $ | 74 | |||||||||
Tate & Lyle PLC | 1,738 | 17 | ||||||||||
Tesco PLC | 11,012 | 31 | ||||||||||
Unilever NV | 1,948 | 110 | ||||||||||
Unilever PLC | 1,245 | 69 | ||||||||||
Wm Morrison Supermarkets PLC | 15,077 | 45 | ||||||||||
|
| |||||||||||
865 | ||||||||||||
|
| |||||||||||
ENERGY 0.6% | ||||||||||||
BP PLC | 17,265 | 121 | ||||||||||
Hunting PLC (a) | 992 | 8 | ||||||||||
Premier Oil PLC | 7,616 | 8 | ||||||||||
Subsea 7 S.A. | 508 | 8 | ||||||||||
|
| |||||||||||
145 | ||||||||||||
|
| |||||||||||
FINANCIALS 3.8% | ||||||||||||
3i Group PLC | 1,534 | 19 | ||||||||||
Admiral Group PLC | 633 | 17 | ||||||||||
Aviva PLC | 4,088 | 28 | ||||||||||
Barclays PLC | 37,972 | 104 | ||||||||||
Direct Line Insurance Group PLC | 8,407 | 43 | ||||||||||
esure Group PLC | 2,319 | 8 | ||||||||||
Hargreaves Lansdown PLC | 317 | 8 | ||||||||||
HSBC Holdings PLC | 16,546 | 171 | ||||||||||
IG Group Holdings PLC | 1,339 | 13 | ||||||||||
Jardine Lloyd Thompson Group PLC | 389 | 7 | ||||||||||
Jupiter Fund Management PLC | 2,132 | 18 | ||||||||||
Lancashire Holdings Ltd. | 1,110 | 10 | ||||||||||
Legal & General Group PLC | 5,615 | 21 | ||||||||||
Lloyds Banking Group PLC | 73,332 | 67 | ||||||||||
London Stock Exchange Group PLC | 491 | 25 | ||||||||||
Man Group PLC | 5,472 | 15 | ||||||||||
Old Mutual PLC | 6,607 | 21 | ||||||||||
Provident Financial PLC | 639 | 8 | ||||||||||
Prudential PLC | 2,634 | 68 | ||||||||||
Royal Bank of Scotland Group PLC (a) | 9,021 | 34 | ||||||||||
RSA Insurance Group PLC | 1,013 | 9 | ||||||||||
Saga PLC | 3,759 | 6 | ||||||||||
Schroders PLC | 429 | 20 | ||||||||||
St James’s Place PLC | 1,021 | 17 | ||||||||||
Standard Chartered PLC (a) | 11,737 | 123 | ||||||||||
Standard Life Aberdeen PLC | 6,175 | 36 | ||||||||||
|
| |||||||||||
916 | ||||||||||||
|
| |||||||||||
HEALTH CARE 1.3% | ||||||||||||
AstraZeneca PLC | 1,290 | 89 | ||||||||||
GlaxoSmithKline PLC | 10,032 | 178 | ||||||||||
Indivior PLC (a) | 2,837 | 15 | ||||||||||
Smith & Nephew PLC | 1,523 | 26 | ||||||||||
Spire Healthcare Group PLC | 2,242 | 8 | ||||||||||
|
| |||||||||||
316 | ||||||||||||
|
| |||||||||||
INDUSTRIALS 2.0% | ||||||||||||
Aggreko PLC | 985 | 11 | ||||||||||
Ashtead Group PLC | 326 | 9 | ||||||||||
Babcock International Group PLC | 930 | 9 | ||||||||||
BAE Systems PLC | 2,677 | 21 | ||||||||||
Balfour Beatty PLC | 4,213 | 17 | ||||||||||
Bunzl PLC | 280 | 8 | ||||||||||
Capita PLC | 1,168 | 6 | ||||||||||
Carillion PLC | 11,278 | 3 | ||||||||||
CNH Industrial NV | 1,688 | 23 | ||||||||||
easyJet PLC | 1,165 | 23 |
SHARES | MARKET VALUE (000S) | |||||||||||
Experian PLC | 1,063 | $ | 23 | |||||||||
Fenner PLC | 1,392 | 7 | ||||||||||
Firstgroup PLC (a) | 4,963 | 7 | ||||||||||
Galliford Try PLC | 545 | 9 | ||||||||||
Hays PLC | 7,278 | 18 | ||||||||||
HomeServe PLC | 860 | 9 | ||||||||||
Howden Joinery Group PLC | 1,928 | 12 | ||||||||||
IMI PLC | 569 | 10 | ||||||||||
International Consolidated Airlines Group S.A. | 1,413 | 12 | ||||||||||
Intertek Group PLC | 130 | 9 | ||||||||||
Meggitt PLC | 1,283 | 8 | ||||||||||
Mitie Group PLC | 2,795 | 7 | ||||||||||
Pagegroup PLC | 1,534 | 10 | ||||||||||
QinetiQ Group PLC | 4,436 | 14 | ||||||||||
RELX NV | 1,215 | 28 | ||||||||||
RELX PLC | 1,352 | 32 | ||||||||||
Rentokil Initial PLC | 5,844 | 25 | ||||||||||
Rolls-Royce Holdings PLC | 1,965 | 22 | ||||||||||
Royal Mail PLC | 6,458 | 39 | ||||||||||
Senior PLC | 2,189 | 8 | ||||||||||
SIG PLC | 4,057 | 10 | ||||||||||
Spirax-Sarco Engineering PLC | 259 | 20 | ||||||||||
Stagecoach Group PLC | 3,770 | 8 | ||||||||||
Travis Perkins PLC | 552 | 12 | ||||||||||
Vesuvius PLC | 983 | 8 | ||||||||||
|
| |||||||||||
497 | ||||||||||||
|
| |||||||||||
INFORMATION TECHNOLOGY 0.3% | ||||||||||||
Halma PLC | 423 | 7 | ||||||||||
Laird PLC | 4,602 | 9 | ||||||||||
Micro Focus International PLC | 287 | 10 | ||||||||||
Moneysupermarket.com Group PLC | 1,933 | 9 | ||||||||||
Renishaw PLC | 108 | 8 | ||||||||||
Sage Group PLC | 2,561 | 27 | ||||||||||
Worldpay Group PLC | 1,559 | 9 | ||||||||||
|
| |||||||||||
79 | ||||||||||||
|
| |||||||||||
MATERIALS 0.9% | ||||||||||||
Anglo American PLC | 1,699 | 35 | ||||||||||
Croda International PLC | 374 | 22 | ||||||||||
DS Smith PLC | 1,033 | 7 | ||||||||||
Essentra PLC | 1,035 | 7 | ||||||||||
Johnson Matthey PLC | 606 | 25 | ||||||||||
KAZ Minerals PLC (a) | 703 | 9 | ||||||||||
Rio Tinto Ltd. | 893 | 53 | ||||||||||
Rio Tinto PLC | 871 | 46 | ||||||||||
Synthomer PLC | 1,273 | 8 | ||||||||||
Victrex PLC | 365 | 13 | ||||||||||
|
| |||||||||||
225 | ||||||||||||
|
| |||||||||||
TELECOMMUNICATION SERVICES 0.9% | ||||||||||||
BT Group PLC | 5,145 | 19 | ||||||||||
TalkTalk Telecom Group PLC | 3,793 | 8 | ||||||||||
Vodafone Group PLC | 61,639 | 195 | ||||||||||
|
| |||||||||||
222 | ||||||||||||
|
| |||||||||||
UTILITIES 0.7% | ||||||||||||
Centrica PLC | 7,179 | 13 | ||||||||||
Drax Group PLC | 2,430 | 9 | ||||||||||
National Grid PLC | 4,021 | 47 | ||||||||||
Pennon Group PLC | 1,100 | 12 | ||||||||||
Severn Trent PLC | 428 | 13 |
36 | PIMCO EQUITY SERIES | See Accompanying Notes |
Table of Contents
December 31, 2017 (Unaudited)
SHARES | MARKET VALUE (000S) | |||||||||||
SSE PLC | 3,722 | $ | 66 | |||||||||
United Utilities Group PLC | 818 | 9 | ||||||||||
|
| |||||||||||
169 | ||||||||||||
|
| |||||||||||
Total United Kingdom | 3,987 | |||||||||||
|
| |||||||||||
UNITED STATES 0.1% | ||||||||||||
CONSUMER DISCRETIONARY 0.1% | ||||||||||||
Carnival PLC | 111 | 7 | ||||||||||
Samsonite International S.A. | 2,400 | 11 | ||||||||||
|
| |||||||||||
18 | ||||||||||||
|
| |||||||||||
MATERIALS 0.0% | ||||||||||||
Sims Metal Management Ltd. | 619 | 8 | ||||||||||
|
| |||||||||||
Total United States | 26 | |||||||||||
|
| |||||||||||
Total Common Stocks (Cost $22,502) |
| 23,577 | ||||||||||
|
| |||||||||||
PREFERRED STOCKS 0.7% | ||||||||||||
GERMANY 0.7% | ||||||||||||
CONSUMER DISCRETIONARY 0.5% | ||||||||||||
Porsche Automobil Holding SE | 86 | 7 | ||||||||||
Volkswagen AG | 605 | 120 | ||||||||||
|
| |||||||||||
127 | ||||||||||||
|
| |||||||||||
CONSUMER STAPLES 0.1% | ||||||||||||
Henkel AG & Co. KGaA | 128 | 17 | ||||||||||
|
| |||||||||||
HEALTH CARE 0.0% | ||||||||||||
Draegerwerk AG & Co. KGaA | 103 | 9 | ||||||||||
|
| |||||||||||
MATERIALS 0.1% | ||||||||||||
Fuchs Petrolub SE | 401 | 21 | ||||||||||
|
| |||||||||||
Total Preferred Stocks (Cost $157) | 174 | |||||||||||
|
| |||||||||||
REAL ESTATE INVESTMENT TRUSTS 2.5% | ||||||||||||
AUSTRALIA 0.2% | ||||||||||||
REAL ESTATE 0.2% | ||||||||||||
GDI Property Group | 7,195 | 7 | ||||||||||
Goodman Group | 2,152 | 14 | ||||||||||
GPT Group | 1,751 | 7 | ||||||||||
Mirvac Group | 3,800 | 7 | ||||||||||
Scentre Group | 3,008 | 10 | ||||||||||
|
| |||||||||||
45 | ||||||||||||
|
| |||||||||||
Total Australia | 45 | |||||||||||
|
| |||||||||||
BELGIUM 0.1% | ||||||||||||
REAL ESTATE 0.1% | ||||||||||||
Befimmo S.A. | 110 | 7 | ||||||||||
Cofinimmo S.A. | 119 | 16 | ||||||||||
|
| |||||||||||
23 | ||||||||||||
|
| |||||||||||
Total Belgium | 23 | |||||||||||
|
| |||||||||||
CANADA 0.4% | ||||||||||||
REAL ESTATE 0.4% | ||||||||||||
Allied Properties Real Estate Investment Trust | 361 | 12 | ||||||||||
Artis Real Estate Investment Trust | 1,153 | 13 | ||||||||||
Canadian Apartment Properties REIT | 246 | 7 |
SHARES | MARKET VALUE (000S) | |||||||||||
Cominar Real Estate Investment Trust | 662 | $ | 8 | |||||||||
Dream Global Real Estate Investment Trust | 758 | 7 | ||||||||||
Dream Office Real Estate Investment Trust | 627 | 11 | ||||||||||
Granite Real Estate Investment Trust | 263 | 10 | ||||||||||
H&R Real Estate Investment Trust | 498 | 9 | ||||||||||
RioCan Real Estate Investment Trust | 443 | 9 | ||||||||||
|
| |||||||||||
86 | ||||||||||||
|
| |||||||||||
Total Canada | 86 | |||||||||||
|
| |||||||||||
FRANCE 0.2% | ||||||||||||
REAL ESTATE 0.2% | ||||||||||||
ICADE | 75 | 7 | ||||||||||
Klepierre S.A. | 174 | 8 | ||||||||||
Mercialys S.A. | 340 | 7 | ||||||||||
Unibail-Rodamco SE | 82 | 21 | ||||||||||
|
| |||||||||||
43 | ||||||||||||
|
| |||||||||||
Total France | 43 | |||||||||||
|
| |||||||||||
HONG KONG 0.1% | ||||||||||||
REAL ESTATE 0.1% | ||||||||||||
Link REIT | 3,500 | 32 | ||||||||||
|
| |||||||||||
Total Hong Kong | 32 | |||||||||||
|
| |||||||||||
ITALY 0.0% | ||||||||||||
REAL ESTATE 0.0% | ||||||||||||
Beni Stabili SpA SIIQ | 7,909 | 7 | ||||||||||
|
| |||||||||||
Total Italy | 7 | |||||||||||
|
| |||||||||||
JAPAN 0.7% | ||||||||||||
REAL ESTATE 0.7% | ||||||||||||
Activia Properties, Inc. | 2 | 8 | ||||||||||
Advance Residence Investment Corp. | 5 | 12 | ||||||||||
Aeon REIT Investment Corp. | 8 | 8 | ||||||||||
Daiwa Office Investment Corp. | 2 | 11 | ||||||||||
Frontier Real Estate Investment Corp. | 2 | 8 | ||||||||||
Fukuoka REIT Corp. | 4 | 6 | ||||||||||
GLP J-Reit | 11 | 12 | ||||||||||
Heiwa Real Estate REIT, Inc. | 8 | 7 | ||||||||||
Industrial & Infrastructure Fund Investment Corp. | 1 | 4 | ||||||||||
Japan Excellent, Inc. | 6 | 7 | ||||||||||
Japan Hotel REIT Investment Corp. | 10 | 7 | ||||||||||
Japan Logistics Fund, Inc. | 4 | 7 | ||||||||||
Japan Prime Realty Investment Corp. | 2 | 6 | ||||||||||
Kenedix Office Investment Corp. | 1 | 6 | ||||||||||
Mori Hills REIT Investment Corp. | 7 | 9 | ||||||||||
Mori Trust Sogo Reit, Inc. | 6 | 8 | ||||||||||
Nippon Accommodations Fund, Inc. | 2 | 8 | ||||||||||
Nippon Prologis REIT, Inc. | 5 | 11 | ||||||||||
Premier Investment Corp. | 8 | 8 | ||||||||||
Sekisui House Residential Investment Corp. | 7 | 7 | ||||||||||
Tokyu REIT, Inc. | 6 | 7 | ||||||||||
|
| |||||||||||
167 | ||||||||||||
|
| |||||||||||
Total Japan | 167 | |||||||||||
|
| |||||||||||
NETHERLANDS 0.0% | ||||||||||||
REAL ESTATE 0.0% | ||||||||||||
NSI NV | 173 | 7 | ||||||||||
|
| |||||||||||
Total Netherlands | 7 | |||||||||||
|
| |||||||||||
SHARES | MARKET VALUE (000S) | |||||||||||
SINGAPORE 0.2% | ||||||||||||
REAL ESTATE 0.2% | ||||||||||||
Ascendas Hospitality Trust | 11,400 | $ | 7 | |||||||||
CDL Hospitality Trusts | 5,900 | 8 | ||||||||||
Mapletree Commercial Trust | 7,600 | 9 | ||||||||||
Mapletree Logistics Trust | 10,000 | 10 | ||||||||||
Viva Industrial Trust | 10,100 | 7 | ||||||||||
|
| |||||||||||
41 | ||||||||||||
|
| |||||||||||
Total Singapore | 41 | |||||||||||
|
| |||||||||||
SPAIN 0.0% | ||||||||||||
REAL ESTATE 0.0% | ||||||||||||
Inmobiliaria Colonial Socimi S.A. | 697 | 7 | ||||||||||
|
| |||||||||||
Total Spain | 7 | |||||||||||
|
| |||||||||||
UNITED KINGDOM 0.6% | ||||||||||||
REAL ESTATE 0.6% | ||||||||||||
British Land Co. PLC | 1,682 | 16 | ||||||||||
Derwent London PLC | 367 | 16 | ||||||||||
Great Portland Estates PLC | 1,261 | 12 | ||||||||||
Hammerson PLC | 1,409 | 10 | ||||||||||
Hansteen Holdings PLC | 5,027 | 10 | ||||||||||
Land Securities Group PLC | 2,061 | 28 | ||||||||||
Redefine International PLC | 18,974 | 9 | ||||||||||
Segro PLC | 2,204 | 17 | ||||||||||
Shaftesbury PLC | 1,344 | 19 | ||||||||||
UNITE Group PLC | 848 | 9 | ||||||||||
|
| |||||||||||
146 | ||||||||||||
|
| |||||||||||
Total United Kingdom | 146 | |||||||||||
|
| |||||||||||
Total Real Estate Investment Trusts | 604 | |||||||||||
|
| |||||||||||
RIGHTS 0.0% | ||||||||||||
AUSTRALIA 0.0% | ||||||||||||
CONSUMER STAPLES 0.0% | ||||||||||||
Transurban Group - Exp. 01/24/2018 | 122 | 0 | ||||||||||
|
| |||||||||||
Total Australia | 0 | |||||||||||
|
| |||||||||||
SPAIN 0.0% | ||||||||||||
ENERGY 0.0% | ||||||||||||
Repsol S.A. - Exp. 01/10/2018 | 5,675 | 3 | ||||||||||
|
| |||||||||||
Total Spain | 3 | |||||||||||
|
| |||||||||||
Total Rights (Cost $2) | 3 | |||||||||||
|
| |||||||||||
Total Investments in Securities (Cost $23,245) | 24,358 | |||||||||||
Total Investments 99.5% (Cost $23,245) | $ | 24,358 | ||||||||||
Other Assets and Liabilities, net 0.5% | 114 | |||||||||||
|
| |||||||||||
Net Assets 100.0% | $ | 24,472 | ||||||||||
|
|
See Accompanying Notes | SEMIANNUAL REPORT | DECEMBER 31, 2017 | 37 |
Table of Contents
Schedule of Investments PIMCO RAFI Dynamic Multi-Factor International Equity ETF (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. |
(b) RESTRICTED SECURITIES:
Issuer Description | Acquisition Date | Cost | Market Value | Market Value as Percentage of Net Assets | ||||||||||||||
Calfrac Well Services Ltd. | 12/15/2017 | $ | 7 | $ | 8 | 0.03 | % | |||||||||||
Cogeco, Inc. | 09/29/2017 - 12/13/2017 | 7 | 7 | 0.03 | ||||||||||||||
Constellation Software, Inc. | 08/31/2017 - 12/13/2017 | 22 | 24 | 0.10 | ||||||||||||||
Great-West Lifeco, Inc. | 08/31/2017 - 12/13/2017 | 11 | 11 | 0.05 | ||||||||||||||
Martinrea International, Inc. | 08/31/2017 - 12/13/2017 | 6 | 8 | 0.03 | ||||||||||||||
|
| |||||||||||||||||
$ | 53 | $ | 58 | 0.24 | % | |||||||||||||
|
|
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.
The effect of Financial Derivative Instruments on the Statements of Operations for the period ended December 31, 2017:
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 | ||||||||||||||||||||||||
Forward Foreign Currency Contracts | $ | 0 | $ | 0 | $ | 0 | $ | (3 | ) | $ | 0 | $ | (3 | ) | ||||||||||
|
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|
|
|
|
|
|
|
|
|
|
FAIR VALUE MEASUREMENTS
The following is a summary of the fair valuations according to the inputs used as of December 31, 2017 in valuing the Fund’s assets and liabilities:
Category and Subcategory | Level 1 | Level 2 | Level 3 | Fair Value at 12/31/2017 | ||||||||||||
Investments in Securities, at Value |
| |||||||||||||||
Common Stocks |
| |||||||||||||||
Australia |
| |||||||||||||||
Consumer Discretionary | $ | 0 | $ | 45 | $ | 0 | $ | 45 | ||||||||
Consumer Staples | 0 | 194 | 0 | 194 | ||||||||||||
Energy | 0 | 94 | 0 | 94 | ||||||||||||
Financials | 8 | 162 | 0 | 170 | ||||||||||||
Health Care | 0 | 110 | 0 | 110 | ||||||||||||
Industrials | 0 | 85 | 0 | 85 | ||||||||||||
Information Technology | 3 | 24 | 0 | 27 | ||||||||||||
Materials | 0 | 344 | 0 | 344 | ||||||||||||
Real Estate | 0 | 8 | 0 | 8 | ||||||||||||
Telecommunication Services | 0 | 64 | 0 | 64 | ||||||||||||
Utilities | 0 | 23 | 0 | 23 | ||||||||||||
Austria |
| |||||||||||||||
Energy | 37 | 0 | 0 | 37 | ||||||||||||
Financials | 18 | 20 | 0 | 38 | ||||||||||||
Industrials | 0 | 19 | 0 | 19 | ||||||||||||
Information Technology | 0 | 14 | 0 | 14 | ||||||||||||
Materials | 0 | 15 | 0 | 15 | ||||||||||||
Real Estate | 9 | 11 | 0 | 20 | ||||||||||||
Belgium |
| |||||||||||||||
Consumer Staples | 0 | 159 | 0 | 159 | ||||||||||||
Energy | 9 | 0 | 0 | 9 | ||||||||||||
Financials | 0 | 60 | 0 | 60 | ||||||||||||
Health Care | 0 | 8 | 0 | 8 | ||||||||||||
Industrials | 0 | 9 | 0 | 9 | ||||||||||||
Materials | 0 | 21 | 0 | 21 | ||||||||||||
Telecommunication Services | 13 | 0 | 0 | 13 | ||||||||||||
Utilities | 9 | 0 | 0 | 9 |
Category and Subcategory | Level 1 | Level 2 | Level 3 | Fair Value at 12/31/2017 | ||||||||||||
Cambodia |
| |||||||||||||||
Consumer Discretionary | $ | 0 | $ | 6 | $ | 0 | $ | 6 | ||||||||
Canada |
| |||||||||||||||
Consumer Discretionary | 277 | 0 | 0 | 277 | ||||||||||||
Consumer Staples | 123 | 0 | 0 | 123 | ||||||||||||
Energy | 110 | 0 | 0 | 110 | ||||||||||||
Financials | 450 | 0 | 0 | 450 | ||||||||||||
Health Care | 15 | 0 | 0 | 15 | ||||||||||||
Industrials | 222 | 0 | 0 | 222 | ||||||||||||
Information Technology | 38 | 0 | 0 | 38 | ||||||||||||
Materials | 224 | 0 | 0 | 224 | ||||||||||||
Real Estate | 7 | 0 | 0 | 7 | ||||||||||||
Telecommunication Services | 59 | 0 | 0 | 59 | ||||||||||||
Utilities | 43 | 0 | 0 | 43 | ||||||||||||
Denmark |
| |||||||||||||||
Consumer Discretionary | 0 | 10 | 0 | 10 | ||||||||||||
Consumer Staples | 0 | 27 | 0 | 27 | ||||||||||||
Financials | 8 | 42 | 0 | 50 | ||||||||||||
Health Care | 0 | 146 | 0 | 146 | ||||||||||||
Industrials | 0 | 117 | 0 | 117 | ||||||||||||
Materials | 11 | 15 | 0 | 26 | ||||||||||||
Telecommunication Services | 26 | 0 | 0 | 26 | ||||||||||||
Utilities | 9 | 0 | 0 | 9 | ||||||||||||
Finland |
| |||||||||||||||
Consumer Discretionary | 10 | 0 | 0 | 10 | ||||||||||||
Consumer Staples | 0 | 10 | 0 | 10 | ||||||||||||
Energy | 0 | 13 | 0 | 13 | ||||||||||||
Financials | 0 | 36 | 0 | 36 | ||||||||||||
Health Care | 0 | 7 | 0 | 7 | ||||||||||||
Industrials | 40 | 31 | 0 | 71 |
38 | PIMCO EQUITY SERIES | See Accompanying Notes |
Table of Contents
December 31, 2017 (Unaudited)
Category and Subcategory | Level 1 | Level 2 | Level 3 | Fair Value at 12/31/2017 | ||||||||||||
Information Technology | $ | 0 | $ | 7 | $ | 0 | $ | 7 | ||||||||
Materials | 0 | 37 | 0 | 37 | ||||||||||||
Telecommunication Services | 0 | 11 | 0 | 11 | ||||||||||||
Utilities | 0 | 21 | 0 | 21 | ||||||||||||
France |
| |||||||||||||||
Consumer Discretionary | 0 | 325 | 0 | 325 | ||||||||||||
Consumer Staples | 0 | 156 | 0 | 156 | ||||||||||||
Energy | 0 | 23 | 0 | 23 | ||||||||||||
Financials | 0 | 68 | 0 | 68 | ||||||||||||
Health Care | 7 | 25 | 0 | 32 | ||||||||||||
Industrials | 7 | 449 | 0 | 456 | ||||||||||||
Information Technology | 18 | 64 | 0 | 82 | ||||||||||||
Materials | 9 | 8 | 0 | 17 | ||||||||||||
Real Estate | 0 | 14 | 0 | 14 | ||||||||||||
Telecommunication Services | 0 | 51 | 0 | 51 | ||||||||||||
Utilities | 50 | 179 | 0 | 229 | ||||||||||||
Germany |
| |||||||||||||||
Consumer Discretionary | 0 | 174 | 0 | 174 | ||||||||||||
Consumer Staples | 0 | 17 | 0 | 17 | ||||||||||||
Financials | 0 | 245 | 0 | 245 | ||||||||||||
Health Care | 0 | 148 | 0 | 148 | ||||||||||||
Industrials | 7 | 203 | 0 | 210 | ||||||||||||
Information Technology | 0 | 122 | 0 | 122 | ||||||||||||
Materials | 30 | 195 | 0 | 225 | ||||||||||||
Real Estate | 8 | 66 | 0 | 74 | ||||||||||||
Telecommunication Services | 0 | 29 | 0 | 29 | ||||||||||||
Utilities | 51 | 159 | 0 | 210 | ||||||||||||
Hong Kong |
| |||||||||||||||
Consumer Discretionary | 29 | 77 | 0 | 106 | ||||||||||||
Consumer Staples | 18 | 14 | 0 | 32 | ||||||||||||
Financials | 0 | 128 | 0 | 128 | ||||||||||||
Health Care | 0 | 18 | 0 | 18 | ||||||||||||
Industrials | 29 | 55 | 0 | 84 | ||||||||||||
Information Technology | 0 | 44 | 0 | 44 | ||||||||||||
Materials | 0 | 7 | 0 | 7 | ||||||||||||
Real Estate | 5 | 125 | 0 | 130 | ||||||||||||
Telecommunication Services | 13 | 8 | 0 | 21 | ||||||||||||
Utilities | 36 | 57 | 0 | 93 | ||||||||||||
Ireland |
| |||||||||||||||
Consumer Discretionary | 0 | 8 | 0 | 8 | ||||||||||||
Consumer Staples | 28 | 7 | 0 | 35 | ||||||||||||
Health Care | 121 | 8 | 0 | 129 | ||||||||||||
Industrials | 32 | 25 | 0 | 57 | ||||||||||||
Materials | 21 | 13 | 0 | 34 | ||||||||||||
Israel |
| |||||||||||||||
Financials | 8 | 53 | 0 | 61 | ||||||||||||
Industrials | 0 | 9 | 0 | 9 | ||||||||||||
Information Technology | 26 | 9 | 0 | 35 | ||||||||||||
Materials | 0 | 14 | 0 | 14 | ||||||||||||
Telecommunication Services | 12 | 0 | 0 | 12 | ||||||||||||
Italy |
| |||||||||||||||
Consumer Discretionary | 16 | 39 | 0 | 55 | ||||||||||||
Consumer Staples | 8 | 7 | 0 | 15 | ||||||||||||
Energy | 0 | 144 | 0 | 144 | ||||||||||||
Financials | 12 | 249 | 0 | 261 | ||||||||||||
Health Care | 0 | 16 | 0 | 16 | ||||||||||||
Industrials | 15 | 34 | 0 | 49 | ||||||||||||
Telecommunication Services | 0 | 30 | 0 | 30 | ||||||||||||
Utilities | 8 | 167 | 0 | 175 | ||||||||||||
Japan |
| |||||||||||||||
Consumer Discretionary | 12 | 1,317 | 0 | 1,329 | ||||||||||||
Consumer Staples | 0 | 509 | 0 | 509 | ||||||||||||
Energy | 0 | 175 | 0 | 175 | ||||||||||||
Financials | 0 | 166 | 0 | 166 | ||||||||||||
Health Care | 0 | 288 | 0 | 288 | ||||||||||||
Industrials | 8 | 1,336 | 0 | 1,344 | ||||||||||||
Information Technology | 0 | 885 | 0 | 885 | ||||||||||||
Materials | 0 | 612 | 0 | 612 | ||||||||||||
Real Estate | 5 | 66 | 0 | 71 | ||||||||||||
Telecommunication Services | 0 | 242 | 0 | 242 | ||||||||||||
Utilities | 0 | 171 | 0 | 171 |
Category and Subcategory | Level 1 | Level 2 | Level 3 | Fair Value at 12/31/2017 | ||||||||||||
Jersey, Channel Islands |
| |||||||||||||||
Materials | $ | 0 | $ | 8 | $ | 0 | $ | 8 | ||||||||
Luxembourg |
| |||||||||||||||
Consumer Discretionary | 8 | 16 | 0 | 24 | ||||||||||||
Materials | 0 | 78 | 0 | 78 | ||||||||||||
Real Estate | 0 | 7 | 0 | 7 | ||||||||||||
Macau |
| |||||||||||||||
Consumer Discretionary | 0 | 29 | 0 | 29 | ||||||||||||
Netherlands |
| |||||||||||||||
Consumer Staples | 15 | 90 | 0 | 105 | ||||||||||||
Energy | 8 | 140 | 0 | 148 | ||||||||||||
Financials | 0 | 229 | 0 | 229 | ||||||||||||
Health Care | 0 | 28 | 0 | 28 | ||||||||||||
Industrials | 6 | 92 | 0 | 98 | ||||||||||||
Information Technology | 29 | 82 | 0 | 111 | ||||||||||||
Materials | 0 | 80 | 0 | 80 | ||||||||||||
Telecommunication Services | 16 | 17 | 0 | 33 | ||||||||||||
New Zealand |
| |||||||||||||||
Consumer Discretionary | 7 | 0 | 0 | 7 | ||||||||||||
Health Care | 0 | 18 | 0 | 18 | ||||||||||||
Industrials | 9 | 0 | 0 | 9 | ||||||||||||
Materials | 0 | 9 | 0 | 9 | ||||||||||||
Real Estate | 9 | 0 | 0 | 9 | ||||||||||||
Telecommunication Services | 19 | 8 | 0 | 27 | ||||||||||||
Utilities | 17 | 7 | 0 | 24 | ||||||||||||
Norway |
| |||||||||||||||
Consumer Staples | 8 | 15 | 0 | 23 | ||||||||||||
Energy | 12 | 97 | 0 | 109 | ||||||||||||
Financials | 8 | 20 | 0 | 28 | ||||||||||||
Materials | 0 | 40 | 0 | 40 | ||||||||||||
Telecommunication Services | 0 | 55 | 0 | 55 | ||||||||||||
Portugal |
| |||||||||||||||
Consumer Staples | 17 | 0 | 0 | 17 | ||||||||||||
Financials | 0 | 9 | 0 | 9 | ||||||||||||
Industrials | 5 | 0 | 0 | 5 | ||||||||||||
Materials | 0 | 7 | 0 | 7 | ||||||||||||
Telecommunication Services | 0 | 6 | 0 | 6 | ||||||||||||
Utilities | 61 | 0 | 0 | 61 | ||||||||||||
Singapore |
| |||||||||||||||
Consumer Discretionary | 0 | 28 | 0 | 28 | ||||||||||||
Consumer Staples | 0 | 21 | 0 | 21 | ||||||||||||
Energy | 0 | 8 | 0 | 8 | ||||||||||||
Financials | 0 | 160 | 0 | 160 | ||||||||||||
Health Care | 9 | 0 | 0 | 9 | ||||||||||||
Industrials | 15 | 86 | 0 | 101 | ||||||||||||
Information Technology | 0 | 11 | 0 | 11 | ||||||||||||
Real Estate | 7 | 24 | 0 | 31 | ||||||||||||
Telecommunication Services | 9 | 70 | 0 | 79 | ||||||||||||
South Africa |
| |||||||||||||||
Health Care | 8 | 0 | 0 | 8 | ||||||||||||
Materials | 0 | 12 | 0 | 12 | ||||||||||||
Spain |
| |||||||||||||||
Consumer Discretionary | 0 | 34 | 0 | 34 | ||||||||||||
Consumer Staples | 7 | 23 | 0 | 30 | ||||||||||||
Energy | 0 | 113 | 0 | 113 | ||||||||||||
Financials | 8 | 226 | 0 | 234 | ||||||||||||
Health Care | 0 | 15 | 0 | 15 | ||||||||||||
Industrials | 0 | 110 | 0 | 110 | ||||||||||||
Information Technology | 0 | 53 | 0 | 53 | ||||||||||||
Materials | 7 | 0 | 0 | 7 | ||||||||||||
Telecommunication Services | 0 | 40 | 0 | 40 | ||||||||||||
Utilities | 0 | 191 | 0 | 191 | ||||||||||||
Sweden |
| |||||||||||||||
Consumer Discretionary | 38 | 86 | 0 | 124 | ||||||||||||
Consumer Staples | 0 | 28 | 0 | 28 | ||||||||||||
Financials | 9 | 35 | 0 | 44 | ||||||||||||
Industrials | 14 | 249 | 0 | 263 | ||||||||||||
Information Technology | 0 | 134 | 0 | 134 | ||||||||||||
Materials | 8 | 28 | 0 | 36 | ||||||||||||
Telecommunication Services | 0 | 128 | 0 | 128 |
See Accompanying Notes | SEMIANNUAL REPORT | DECEMBER 31, 2017 | 39 |
Table of Contents
Schedule of Investments PIMCO RAFI Dynamic Multi-Factor International Equity ETF (Cont.)
December 31, 2017 (Unaudited)
Category and Subcategory | Level 1 | Level 2 | Level 3 | Fair Value at 12/31/2017 | ||||||||||||
Switzerland |
| |||||||||||||||
Consumer Discretionary | $ | 24 | $ | 100 | $ | 0 | $ | 124 | ||||||||
Consumer Staples | 17 | 196 | 0 | 213 | ||||||||||||
Energy | 30 | 0 | 0 | 30 | ||||||||||||
Financials | 16 | 471 | 0 | 487 | ||||||||||||
Health Care | 19 | 169 | 0 | 188 | ||||||||||||
Industrials | 34 | 277 | 0 | 311 | ||||||||||||
Information Technology | 48 | 28 | 0 | 76 | ||||||||||||
Materials | 17 | 256 | 0 | 273 | ||||||||||||
Real Estate | 7 | 8 | 0 | 15 | ||||||||||||
Telecommunication Services | 0 | 33 | 0 | 33 | ||||||||||||
Utilities | 0 | 7 | 0 | 7 | ||||||||||||
Thailand |
| |||||||||||||||
Consumer Staples | 10 | 0 | 0 | 10 | ||||||||||||
United Kingdom |
| |||||||||||||||
Consumer Discretionary | 207 | 346 | 0 | 553 | ||||||||||||
Consumer Staples | 142 | 723 | 0 | 865 | ||||||||||||
Energy | 8 | 137 | 0 | 145 | ||||||||||||
Financials | 63 | 853 | 0 | 916 | ||||||||||||
Health Care | 8 | 308 | 0 | 316 | ||||||||||||
Industrials | 129 | 368 | 0 | 497 | ||||||||||||
Information Technology | 9 | 70 | 0 | 79 | ||||||||||||
Materials | 0 | 225 | 0 | 225 | ||||||||||||
Telecommunication Services | 27 | 195 | 0 | 222 | ||||||||||||
Utilities | 22 | 147 | 0 | 169 | ||||||||||||
United States |
| |||||||||||||||
Consumer Discretionary | 11 | 7 | 0 | 18 | ||||||||||||
Materials | 0 | 8 | 0 | 8 | ||||||||||||
Preferred Stocks |
| |||||||||||||||
Germany |
| |||||||||||||||
Consumer Discretionary | 0 | 127 | 0 | 127 | ||||||||||||
Consumer Staples | 0 | 17 | 0 | 17 |
Category and Subcategory | Level 1 | Level 2 | Level 3 | Fair Value at 12/31/2017 | ||||||||||||
Health Care | $ | 0 | $ | 9 | $ | 0 | $ | 9 | ||||||||
Materials | 0 | 21 | 0 | 21 | ||||||||||||
Real Estate Investment Trusts |
| |||||||||||||||
Australia |
| |||||||||||||||
Real Estate | 7 | 38 | 0 | 45 | ||||||||||||
Belgium |
| |||||||||||||||
Real Estate | 7 | 16 | 0 | 23 | ||||||||||||
Canada |
| |||||||||||||||
Real Estate | 86 | 0 | 0 | 86 | ||||||||||||
France |
| |||||||||||||||
Real Estate | 7 | 36 | 0 | 43 | ||||||||||||
Hong Kong |
| |||||||||||||||
Real Estate | 0 | 32 | 0 | 32 | ||||||||||||
Italy |
| |||||||||||||||
Real Estate | 7 | 0 | 0 | 7 | ||||||||||||
Japan |
| |||||||||||||||
Real Estate | 120 | 47 | 0 | 167 | ||||||||||||
Netherlands |
| |||||||||||||||
Real Estate | 7 | 0 | 0 | 7 | ||||||||||||
Singapore |
| |||||||||||||||
Real Estate | 34 | 7 | 0 | 41 | ||||||||||||
Spain |
| |||||||||||||||
Real Estate | 0 | 7 | 0 | 7 | ||||||||||||
United Kingdom |
| |||||||||||||||
Real Estate | 54 | 92 | 0 | 146 | ||||||||||||
Rights |
| |||||||||||||||
Spain |
| |||||||||||||||
Energy | 3 | 0 | 0 | 3 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Total Investments | $ | 4,000 | $ | 20,358 | $ | 0 | $ | 24,358 | ||||||||
|
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|
|
|
|
|
There were no significant transfers among Levels 1, 2, or 3 during the period ended December 31, 2017.
40 | PIMCO EQUITY SERIES | See Accompanying Notes |
Table of Contents
Schedule of Investments PIMCO RAFI Dynamic Multi-Factor U.S. Equity ETF
December 31, 2017 (Unaudited)
SHARES | MARKET VALUE (000S) | |||||||||||
INVESTMENTS IN SECURITIES 99.6% | ||||||||||||
COMMON STOCKS 95.4% | ||||||||||||
BERMUDA 0.1% | ||||||||||||
FINANCIALS 0.1% | ||||||||||||
XL Group Ltd. | 311 | $ | 11 | |||||||||
|
| |||||||||||
Total Bermuda | 11 | |||||||||||
|
| |||||||||||
IRELAND 0.3% | ||||||||||||
INFORMATION TECHNOLOGY 0.3% | ||||||||||||
Accenture PLC ‘A’ | 326 | 50 | ||||||||||
|
| |||||||||||
Total Ireland | 50 | |||||||||||
|
| |||||||||||
SWITZERLAND 0.1% | ||||||||||||
FINANCIALS 0.1% | ||||||||||||
Chubb Ltd. | 160 | 23 | ||||||||||
|
| |||||||||||
Total Switzerland | 23 | |||||||||||
|
| |||||||||||
UNITED STATES 94.9% | ||||||||||||
CONSUMER DISCRETIONARY 17.0% | ||||||||||||
Aaron’s, Inc. | 71 | 3 | ||||||||||
Abercrombie & Fitch Co. ‘A’ | 285 | 5 | ||||||||||
Adient PLC | 124 | 10 | ||||||||||
Adtalem Global Education, Inc. | 151 | 6 | ||||||||||
Advance Auto Parts, Inc. | 23 | 2 | ||||||||||
Amazon.com, Inc. (a) | 235 | 275 | ||||||||||
American Eagle Outfitters, Inc. | 1,092 | 21 | ||||||||||
Aramark | 104 | 4 | ||||||||||
Asbury Automotive Group, Inc. (a) | 90 | 6 | ||||||||||
Ascena Retail Group, Inc. (a) | 808 | 2 | ||||||||||
AutoNation, Inc. (a) | 73 | 4 | ||||||||||
AutoZone, Inc. (a) | 19 | 13 | ||||||||||
Barnes & Noble, Inc. | 315 | 2 | ||||||||||
Bed Bath & Beyond, Inc. | 1,196 | 26 | ||||||||||
Best Buy Co., Inc. | 610 | 42 | ||||||||||
Big Lots, Inc. | 123 | 7 | ||||||||||
BJ’s Restaurants, Inc. | 55 | 2 | ||||||||||
Bloomin’ Brands, Inc. | 112 | 2 | ||||||||||
BorgWarner, Inc. | 123 | 6 | ||||||||||
Bright Horizons Family Solutions, Inc. (a) | 45 | 4 | ||||||||||
Brinker International, Inc. | 425 | 16 | ||||||||||
Buckle, Inc. | 190 | 4 | ||||||||||
Burlington Stores, Inc. (a) | 17 | 2 | ||||||||||
Cable One, Inc. | 2 | 1 | ||||||||||
Caesars Entertainment Corp. (a) | 344 | 4 | ||||||||||
CalAtlantic Group, Inc. | 31 | 2 | ||||||||||
Caleres, Inc. | 94 | 3 | ||||||||||
Capella Education Co. | 25 | 2 | ||||||||||
Carnival Corp. | 177 | 12 | ||||||||||
Carter’s, Inc. | 108 | 13 | ||||||||||
Cato Corp. ‘A’ | 112 | 2 | ||||||||||
CBS Corp. NVDR ‘B’ | 450 | 27 | ||||||||||
Charter Communications, Inc. ‘A’ (a) | 107 | 36 | ||||||||||
Cheesecake Factory, Inc. | 142 | 7 | ||||||||||
Chico’s FAS, Inc. | 654 | 6 | ||||||||||
Children’s Place, Inc. | 20 | 3 | ||||||||||
Chipotle Mexican Grill, Inc. (a) | 26 | 7 | ||||||||||
Choice Hotels International, Inc. | 42 | 3 | ||||||||||
Churchill Downs, Inc. | 13 | 3 | ||||||||||
Cinemark Holdings, Inc. | 116 | 4 | ||||||||||
Comcast Corp. ‘A’ | 883 | 35 | ||||||||||
Cooper Tire & Rubber Co. | 218 | 8 | ||||||||||
SHARES | MARKET VALUE (000S) | |||||||||||
Cooper-Standard Holding, Inc. (a) | 27 | $ | 3 | |||||||||
Core-Mark Holding Co., Inc. | 76 | 2 | ||||||||||
Cracker Barrel Old Country Store, Inc. | 41 | 6 | ||||||||||
Crocs, Inc. (a) | 155 | 2 | ||||||||||
Dana, Inc. | 351 | 11 | ||||||||||
Darden Restaurants, Inc. | 210 | 20 | ||||||||||
Deckers Outdoor Corp. (a) | 73 | 6 | ||||||||||
Dick’s Sporting Goods, Inc. | 36 | 1 | ||||||||||
Dillard’s, Inc. ‘A’ | 52 | 3 | ||||||||||
DineEquity, Inc. | 83 | 4 | ||||||||||
Dollar General Corp. | 478 | 44 | ||||||||||
Domino’s Pizza, Inc. | 45 | 8 | ||||||||||
Dorman Products, Inc. (a) | 48 | 3 | ||||||||||
DR Horton, Inc. | 206 | 11 | ||||||||||
DSW Inc. ‘A’ | 465 | 10 | ||||||||||
Dunkin’ Brands Group, Inc. | 45 | 3 | ||||||||||
Expedia, Inc. | 72 | 9 | ||||||||||
Express, Inc. (a) | 765 | 8 | ||||||||||
Extended Stay America, Inc. | 144 | 3 | ||||||||||
Finish Line, Inc. ‘A’ | 265 | 4 | ||||||||||
Foot Locker, Inc. | 231 | 11 | ||||||||||
Ford Motor Co. | 3,999 | 50 | ||||||||||
Fossil Group, Inc. (a) | 335 | 3 | ||||||||||
Fred’s, Inc. ‘A’ | 282 | 1 | ||||||||||
G-III Apparel Group Ltd. (a) | 104 | 4 | ||||||||||
GameStop Corp. ‘A’ | 339 | 6 | ||||||||||
Gannett Co., Inc. | 351 | 4 | ||||||||||
Gap, Inc. | 1,190 | 41 | ||||||||||
General Motors Co. | 1,489 | 61 | ||||||||||
Genesco, Inc. (a) | 124 | 4 | ||||||||||
Gentex Corp. | 239 | 5 | ||||||||||
Genuine Parts Co. | 77 | 7 | ||||||||||
GNC Holdings, Inc. ‘A’ | 774 | 3 | ||||||||||
Graham Holdings Co. ‘B’ | 6 | 3 | ||||||||||
Grand Canyon Education, Inc. (a) | 18 | 2 | ||||||||||
Group 1 Automotive, Inc. | 66 | 5 | ||||||||||
Guess?, Inc. | 321 | 5 | ||||||||||
H&R Block, Inc. | 422 | 11 | ||||||||||
Hanesbrands, Inc. | 259 | 5 | ||||||||||
Harley-Davidson, Inc. | 229 | 12 | ||||||||||
Hasbro, Inc. | 111 | 10 | ||||||||||
Hibbett Sports, Inc. (a) | 238 | 5 | ||||||||||
Hilton Worldwide Holdings, Inc. | 126 | 10 | ||||||||||
Home Depot, Inc. | 1,371 | 260 | ||||||||||
Houghton Mifflin Harcourt Co. (a) | 311 | 3 | ||||||||||
HSN, Inc. | 161 | 6 | ||||||||||
International Game Technology PLC | 73 | 2 | ||||||||||
Interpublic Group of Cos., Inc. | 323 | 6 | ||||||||||
Jack in the Box, Inc. | 60 | 6 | ||||||||||
JC Penney Co., Inc. (a) | 624 | 2 | ||||||||||
KB Home | 90 | 3 | ||||||||||
Kohl’s Corp. | 464 | 25 | ||||||||||
L Brands, Inc. | 245 | 15 | ||||||||||
La-Z-Boy, Inc. | 155 | 5 | ||||||||||
Las Vegas Sands Corp. | 265 | 18 | ||||||||||
Lear Corp. | 71 | 13 | ||||||||||
Leggett & Platt, Inc. | 140 | 7 | ||||||||||
Lennar Corp. ‘A’ | 122 | 8 | ||||||||||
Liberty Broadband Corp. ‘C’ (a) | 75 | 6 | ||||||||||
Liberty Interactive Corp. QVC Group ‘A’ (a) | 695 | 17 | ||||||||||
Liberty Ventures (a) | 33 | 2 | ||||||||||
Lions Gate Entertainment Corp. ‘A’ (a) | 58 | 2 | ||||||||||
Live Nation Entertainment, Inc. (a) | 53 | 2 | ||||||||||
Lowe’s Cos., Inc. | 865 | 80 | ||||||||||
SHARES | MARKET VALUE (000S) | |||||||||||
Macy’s, Inc. | 1,403 | $ | 35 | |||||||||
Madison Square Garden Co. ‘A’ (a) | 7 | 1 | ||||||||||
Marriott International, Inc. ‘A’ | 257 | 35 | ||||||||||
Marriott Vacations Worldwide Corp. | 28 | 4 | ||||||||||
Mattel, Inc. | 550 | 8 | ||||||||||
McDonald’s Corp. | 1,351 | 233 | ||||||||||
MDC Holdings, Inc. | 70 | 2 | ||||||||||
MGM Resorts International | 291 | 10 | ||||||||||
Modine Manufacturing Co. (a) | 106 | 2 | ||||||||||
Mohawk Industries, Inc. (a) | 36 | 10 | ||||||||||
Monro, Inc. | 31 | 2 | ||||||||||
Murphy USA, Inc. (a) | 168 | 13 | ||||||||||
National CineMedia, Inc. | 255 | 2 | ||||||||||
Netflix, Inc. (a) | 162 | 31 | ||||||||||
News Corp. ‘A’ | 838 | 14 | ||||||||||
NIKE, Inc. ‘B’ | 761 | 48 | ||||||||||
Nordstrom, Inc. | 428 | 20 | ||||||||||
Norwegian Cruise Line Holdings Ltd. (a) | 70 | 4 | ||||||||||
NVR, Inc. (a) | 6 | 21 | ||||||||||
O’Reilly Automotive, Inc. (a) | 103 | 25 | ||||||||||
Office Depot, Inc. | 1,372 | 5 | ||||||||||
Omnicom Group, Inc. | 354 | 26 | ||||||||||
Oxford Industries, Inc. | 21 | 2 | ||||||||||
Penn National Gaming, Inc. (a) | 80 | 2 | ||||||||||
Penske Automotive Group, Inc. | 38 | 2 | ||||||||||
Pier 1 Imports, Inc. | 500 | 2 | ||||||||||
Pinnacle Entertainment, Inc. (a) | 88 | 3 | ||||||||||
Polaris Industries, Inc. | 91 | 11 | ||||||||||
Pool Corp. | 29 | 4 | ||||||||||
Priceline Group, Inc. (a) | 34 | 59 | ||||||||||
PulteGroup, Inc. | 157 | 5 | ||||||||||
PVH Corp. | 45 | 6 | ||||||||||
Ralph Lauren Corp. | 82 | 8 | ||||||||||
Regal Entertainment Group ‘A’ | 163 | 4 | ||||||||||
Rent-A-Center, Inc. | 271 | 3 | ||||||||||
Ross Stores, Inc. | 168 | 13 | ||||||||||
Royal Caribbean Cruises Ltd. | 100 | 12 | ||||||||||
Sally Beauty Holdings, Inc. (a) | 475 | 9 | ||||||||||
Scholastic Corp. | 51 | 2 | ||||||||||
Scripps Networks Interactive, Inc. ‘A’ | 105 | 9 | ||||||||||
SeaWorld Entertainment, Inc. | 335 | 5 | ||||||||||
Service Corp. International | 141 | 5 | ||||||||||
ServiceMaster Global Holdings, Inc. (a) | 93 | 5 | ||||||||||
Signet Jewelers Ltd. | 33 | 2 | ||||||||||
Sirius XM Holdings, Inc. | 753 | 4 | ||||||||||
Six Flags Entertainment Corp. | 147 | 10 | ||||||||||
Skechers U.S.A., Inc. ‘A’ (a) | 51 | 2 | ||||||||||
Sleep Number Corp. (a) | 68 | 3 | ||||||||||
Sonic Automotive, Inc. ‘A’ | 88 | 2 | ||||||||||
Starbucks Corp. | 411 | 24 | ||||||||||
Steven Madden Ltd. (a) | 67 | 3 | ||||||||||
Strayer Education, Inc. | 20 | 2 | ||||||||||
Sturm Ruger & Co., Inc. | 66 | 4 | ||||||||||
Target Corp. | 2,744 | 179 | ||||||||||
TEGNA, Inc. | 139 | 2 | ||||||||||
Tenneco, Inc. | 66 | 4 | ||||||||||
Texas Roadhouse, Inc. | 29 | 2 | ||||||||||
Thor Industries, Inc. | 50 | 8 | ||||||||||
Tiffany & Co. | 69 | 7 | ||||||||||
Time Warner, Inc. | 248 | 23 | ||||||||||
Time, Inc. | 313 | 6 | ||||||||||
TJX Cos., Inc. | 585 | 45 | ||||||||||
Toll Brothers, Inc. | 57 | 3 | ||||||||||
See Accompanying Notes | SEMIANNUAL REPORT | DECEMBER 31, 2017 | 41 |
Table of Contents
Schedule of Investments PIMCO RAFI Dynamic Multi-Factor U.S. Equity ETF (Cont.)
SHARES | MARKET VALUE (000S) | |||||||||||
Tractor Supply Co. | 120 | $ | 9 | |||||||||
Tribune Media Co. ‘A’ | 79 | 3 | ||||||||||
Tupperware Brands Corp. | 92 | 6 | ||||||||||
Twenty-First Century Fox, Inc. ‘A’ | 1,643 | 57 | ||||||||||
Urban Outfitters, Inc. (a) | 323 | 11 | ||||||||||
Vail Resorts, Inc. | 27 | 6 | ||||||||||
VF Corp. | 411 | 30 | ||||||||||
Viacom, Inc. ‘B’ | 1,946 | 60 | ||||||||||
Vista Outdoor, Inc. (a) | 223 | 3 | ||||||||||
Visteon Corp. (a) | 74 | 9 | ||||||||||
Weight Watchers International, Inc. (a) | 77 | 3 | ||||||||||
Wendy’s Co. | 741 | 12 | ||||||||||
Williams-Sonoma, Inc. | 119 | 6 | ||||||||||
Wyndham Worldwide Corp. | 187 | 22 | ||||||||||
Wynn Resorts Ltd. | 47 | 8 | ||||||||||
Yum! Brands, Inc. | 381 | 31 | ||||||||||
Zumiez, Inc. (a) | 148 | 3 | ||||||||||
|
| |||||||||||
2,895 | ||||||||||||
|
| |||||||||||
CONSUMER STAPLES 12.6% | ||||||||||||
Altria Group, Inc. | 1,402 | 100 | ||||||||||
Andersons, Inc. | 49 | 2 | ||||||||||
Archer-Daniels-Midland Co. | 949 | 38 | ||||||||||
B&G Foods, Inc. | 50 | 2 | ||||||||||
Bob Evans Farms, Inc. | 120 | 9 | ||||||||||
Boston Beer Co., Inc. ‘A’ (a) | 17 | 3 | ||||||||||
Brown-Forman Corp. ‘B’ | 398 | 27 | ||||||||||
Bunge Ltd. | 596 | 40 | ||||||||||
Cal-Maine Foods, Inc. (a) | 121 | 5 | ||||||||||
Campbell Soup Co. | 177 | 9 | ||||||||||
Casey’s General Stores, Inc. | 56 | 6 | ||||||||||
Church & Dwight Co., Inc. | 232 | 12 | ||||||||||
Clorox Co. | 87 | 13 | ||||||||||
Coca-Cola Co. | 3,903 | 179 | ||||||||||
Colgate-Palmolive Co. | 695 | 52 | ||||||||||
Conagra Brands, Inc. | 318 | 12 | ||||||||||
Constellation Brands, Inc. ‘A’ | 120 | 27 | ||||||||||
Costco Wholesale Corp. | 451 | 84 | ||||||||||
Coty, Inc. ‘A’ | 202 | 4 | ||||||||||
CVS Health Corp. | 2,448 | 177 | ||||||||||
Dr Pepper Snapple Group, Inc. | 214 | 21 | ||||||||||
Edgewell Personal Care Co. (a) | 63 | 4 | ||||||||||
Estee Lauder Cos., Inc. ‘A’ | 289 | 37 | ||||||||||
Flowers Foods, Inc. | 260 | 5 | ||||||||||
Fresh Del Monte Produce, Inc. | 88 | 4 | ||||||||||
General Mills, Inc. | 599 | 36 | ||||||||||
Herbalife Ltd. (a) | 82 | 6 | ||||||||||
Hershey Co. | 107 | 12 | ||||||||||
Hormel Foods Corp. | 125 | 5 | ||||||||||
Ingredion, Inc. | 42 | 6 | ||||||||||
J&J Snack Foods Corp. | 13 | 2 | ||||||||||
JM Smucker Co. | 78 | 10 | ||||||||||
Kellogg Co. | 212 | 14 | ||||||||||
Kimberly-Clark Corp. | 230 | 28 | ||||||||||
Kroger Co. | 2,262 | 62 | ||||||||||
Lamb Weston Holdings, Inc. | 158 | 9 | ||||||||||
Lancaster Colony Corp. | 36 | 5 | ||||||||||
McCormick & Co., Inc. | 72 | 7 | ||||||||||
Mondelez International, Inc. ‘A’ | 1,318 | 56 | ||||||||||
Monster Beverage Corp. (a) | 255 | 16 | ||||||||||
Nu Skin Enterprises, Inc. ‘A’ | 181 | 12 | ||||||||||
PepsiCo, Inc. | 1,381 | 166 | ||||||||||
Performance Food Group Co. (a) | 93 | 3 | ||||||||||
SHARES | MARKET VALUE (000S) | |||||||||||
Philip Morris International, Inc. | 2,333 | $ | 246 | |||||||||
Pinnacle Foods, Inc. | 75 | 4 | ||||||||||
Procter & Gamble Co. | 1,416 | 130 | ||||||||||
Sanderson Farms, Inc. | 89 | 12 | ||||||||||
Smart & Final Stores, Inc. (a) | 195 | 2 | ||||||||||
SpartanNash Co. | 67 | 2 | ||||||||||
Spectrum Brands Holdings, Inc. | 15 | 2 | ||||||||||
Sprouts Farmers Market, Inc. (a) | 126 | 3 | ||||||||||
Sysco Corp. | 321 | 20 | ||||||||||
TreeHouse Foods, Inc. (a) | 56 | 3 | ||||||||||
Tyson Foods, Inc. ‘A’ | 207 | 17 | ||||||||||
United Natural Foods, Inc. (a) | 163 | 8 | ||||||||||
Universal Corp. | 79 | 4 | ||||||||||
Vector Group Ltd. | 168 | 4 | ||||||||||
Wal-Mart Stores, Inc. | 3,658 | 361 | ||||||||||
|
| |||||||||||
2,145 | ||||||||||||
|
| |||||||||||
ENERGY 5.2% | ||||||||||||
Andeavor | 286 | 33 | ||||||||||
Archrock, Inc. | 176 | 2 | ||||||||||
Bristow Group, Inc. | 277 | 4 | ||||||||||
Cabot Oil & Gas Corp. | 178 | 5 | ||||||||||
California Resources Corp. (a) | 134 | 3 | ||||||||||
CARBO Ceramics, Inc. (a) | 173 | 2 | ||||||||||
Chevron Corp. | 950 | 119 | ||||||||||
Cloud Peak Energy, Inc. (a) | 376 | 2 | ||||||||||
CNX Resources Corp. (a) | 204 | 3 | ||||||||||
ConocoPhillips | 1,779 | 98 | ||||||||||
CONSOL Energy, Inc. (a) | 36 | 1 | ||||||||||
Denbury Resources, Inc. (a) | 1,901 | 4 | ||||||||||
Diamond Offshore Drilling, Inc. (a) | 237 | 4 | ||||||||||
Dorian LPG Ltd. (a) | 14 | 0 | ||||||||||
Dril-Quip, Inc. (a) | 68 | 3 | ||||||||||
Exterran Corp. (a) | 74 | 2 | ||||||||||
Exxon Mobil Corp. | 1,279 | 107 | ||||||||||
Green Plains, Inc. | 152 | 3 | ||||||||||
Hess Corp. | 592 | 28 | ||||||||||
HollyFrontier Corp. | 1,416 | 73 | ||||||||||
International Seaways, Inc. (a) | 65 | 1 | ||||||||||
Marathon Oil Corp. | 1,650 | 28 | ||||||||||
Marathon Petroleum Corp. | 1,008 | 66 | ||||||||||
McDermott International, Inc. (a) | 391 | 3 | ||||||||||
Murphy Oil Corp. | 390 | 12 | ||||||||||
Nabors Industries Ltd. | 655 | 4 | ||||||||||
National Oilwell Varco, Inc. | 682 | 25 | ||||||||||
Newpark Resources, Inc. (a) | 211 | 2 | ||||||||||
Occidental Petroleum Corp. | 165 | 12 | ||||||||||
Oceaneering International, Inc. | 152 | 3 | ||||||||||
Oil States International, Inc. (a) | 165 | 5 | ||||||||||
ONEOK, Inc. | 114 | 6 | ||||||||||
Patterson-UTI Energy, Inc. | 167 | 4 | ||||||||||
PBF Energy, Inc. ‘A’ | 193 | 7 | ||||||||||
Peabody Energy Corp. (a) | 171 | 7 | ||||||||||
Phillips 66 | 712 | 72 | ||||||||||
QEP Resources, Inc. (a) | 218 | 2 | ||||||||||
Renewable Energy Group, Inc. (a) | 132 | 2 | ||||||||||
REX American Resources Corp. (a) | 18 | 1 | ||||||||||
Rowan Cos. PLC ‘A’ (a) | 506 | 8 | ||||||||||
SEACOR Holdings, Inc. | 42 | 2 | ||||||||||
SM Energy Co. | 151 | 3 | ||||||||||
Superior Energy Services, Inc. (a) | 663 | 6 | ||||||||||
Unit Corp. (a) | 91 | 2 | ||||||||||
Valero Energy Corp. | 1,135 | 104 | ||||||||||
SHARES | MARKET VALUE (000S) | |||||||||||
Whiting Petroleum Corp. (a) | 69 | $ | 2 | |||||||||
World Fuel Services Corp. | 258 | 7 | ||||||||||
|
| |||||||||||
892 | ||||||||||||
|
| |||||||||||
FINANCIALS 9.1% | ||||||||||||
Affiliated Managers Group, Inc. | 54 | 11 | ||||||||||
Aflac, Inc. | 281 | 25 | ||||||||||
Alleghany Corp. (a) | 9 | 5 | ||||||||||
Allstate Corp. | 702 | 74 | ||||||||||
Ally Financial, Inc. | 989 | 29 | ||||||||||
Ambac Financial Group, Inc. (a) | 131 | 2 | ||||||||||
American Equity Investment Life Holding Co. | 101 | 3 | ||||||||||
American Express Co. | 418 | 42 | ||||||||||
American Financial Group, Inc. | 82 | 9 | ||||||||||
American International Group, Inc. | 1,380 | 82 | ||||||||||
Ameriprise Financial, Inc. | 86 | 15 | ||||||||||
Arthur J Gallagher & Co. | 70 | 4 | ||||||||||
Assurant, Inc. | 63 | 6 | ||||||||||
Bank of America Corp. | 5,700 | 168 | ||||||||||
BGC Partners, Inc. ‘A’ | 92 | 1 | ||||||||||
Brown & Brown, Inc. | 90 | 5 | ||||||||||
Cannae Holdings, Inc. (a) | 124 | 2 | ||||||||||
Capitol Federal Financial, Inc. | 192 | 3 | ||||||||||
CBOE Holdings, Inc. | 116 | 14 | ||||||||||
Cincinnati Financial Corp. | 81 | 6 | ||||||||||
Citigroup, Inc. | 1,547 | 115 | ||||||||||
CME Group, Inc. | 320 | 47 | ||||||||||
CNO Financial Group, Inc. | 191 | 5 | ||||||||||
Credit Acceptance Corp. (a) | 5 | 2 | ||||||||||
Donnelley Financial Solutions, Inc. (a) | 75 | 1 | ||||||||||
E*TRADE Financial Corp. (a) | 105 | 5 | ||||||||||
EZCORP, Inc. ‘A’ (a) | 159 | 2 | ||||||||||
FactSet Research Systems, Inc. | 31 | 6 | ||||||||||
Federated Investors, Inc. ‘B’ | 111 | 4 | ||||||||||
First American Financial Corp. | 176 | 10 | ||||||||||
FirstCash, Inc. | 47 | 3 | ||||||||||
FNF Group | 242 | 10 | ||||||||||
Franklin Resources, Inc. | 404 | 18 | ||||||||||
Genworth Financial, Inc. ‘A’ (a) | 1,905 | 6 | ||||||||||
Greenhill & Co., Inc. | 72 | 1 | ||||||||||
Hanover Insurance Group, Inc. | 76 | 8 | ||||||||||
Hartford Financial Services Group, Inc. | 443 | 25 | ||||||||||
Infinity Property & Casualty Corp. | 13 | 1 | ||||||||||
Interactive Brokers Group, Inc. ‘A’ | 32 | 2 | ||||||||||
Intercontinental Exchange, Inc. | 470 | 33 | ||||||||||
JPMorgan Chase & Co. | 2,020 | 216 | ||||||||||
Kemper Corp. | 77 | 5 | ||||||||||
Legg Mason, Inc. | 126 | 5 | ||||||||||
Loews Corp. | 350 | 18 | ||||||||||
LPL Financial Holdings, Inc. | 200 | 11 | ||||||||||
Markel Corp. (a) | 5 | 6 | ||||||||||
Marsh & McLennan Cos., Inc. | 421 | 34 | ||||||||||
MBIA, Inc. (a) | 417 | 3 | ||||||||||
Mercury General Corp. | 46 | 2 | ||||||||||
MetLife, Inc. | 483 | 24 | ||||||||||
MGIC Investment Corp. (a) | 236 | 3 | ||||||||||
Moody’s Corp. | 160 | 24 | ||||||||||
Morningstar, Inc. | 18 | 2 | ||||||||||
MSCI, Inc. | 82 | 10 | ||||||||||
Nasdaq, Inc. | 48 | 4 | ||||||||||
National Bank Holdings Corp. ‘A’ | 41 | 1 | ||||||||||
Navient Corp. | 544 | 7 | ||||||||||
Navigators Group, Inc. | 27 | 1 | ||||||||||
42 | PIMCO EQUITY SERIES | See Accompanying Notes |
Table of Contents
December 31, 2017 (Unaudited)
SHARES | MARKET VALUE (000S) | |||||||||||
Northwest Bancshares, Inc. | 121 | $ | 2 | |||||||||
Ocwen Financial Corp. (a) | 568 | 2 | ||||||||||
Old Republic International Corp. | 88 | 2 | ||||||||||
PHH Corp. (a) | 91 | 1 | ||||||||||
PNC Financial Services Group, Inc. | 277 | 40 | ||||||||||
PRA Group, Inc. (a) | 51 | 2 | ||||||||||
Primerica, Inc. | 17 | 2 | ||||||||||
Principal Financial Group, Inc. | 166 | 12 | ||||||||||
ProAssurance Corp. | 44 | 3 | ||||||||||
Progressive Corp. | 647 | 36 | ||||||||||
Reinsurance Group of America, Inc. | 37 | 6 | ||||||||||
RLI Corp. | 56 | 3 | ||||||||||
S&P Global, Inc. | 224 | 38 | ||||||||||
Safety Insurance Group, Inc. | 18 | 1 | ||||||||||
Santander Consumer USA Holdings, Inc. | 155 | 3 | ||||||||||
SEI Investments Co. | 152 | 11 | ||||||||||
State Street Corp. | 204 | 20 | ||||||||||
Stewart Information Services Corp. | 44 | 2 | ||||||||||
T Rowe Price Group, Inc. | 333 | 35 | ||||||||||
Torchmark Corp. | 63 | 6 | ||||||||||
Travelers Cos., Inc. | 679 | 92 | ||||||||||
Unum Group | 131 | 7 | ||||||||||
Voya Financial, Inc. | 250 | 12 | ||||||||||
Waddell & Reed Financial, Inc. ‘A’ | 386 | 9 | ||||||||||
White Mountains Insurance Group Ltd. | 8 | 7 | ||||||||||
World Acceptance Corp. (a) | 33 | 3 | ||||||||||
WR Berkley Corp. | 61 | 4 | ||||||||||
|
| |||||||||||
1,547 | ||||||||||||
|
| |||||||||||
HEALTH CARE 8.9% | ||||||||||||
Abbott Laboratories | 1,012 | 58 | ||||||||||
AbbVie, Inc. | 922 | 89 | ||||||||||
Aetna, Inc. | 190 | 34 | ||||||||||
Agilent Technologies, Inc. | 188 | 13 | ||||||||||
Alexion Pharmaceuticals, Inc. (a) | 124 | 15 | ||||||||||
Align Technology, Inc. (a) | 28 | 6 | ||||||||||
AmerisourceBergen Corp. | 54 | 5 | ||||||||||
Analogic Corp. | 19 | 2 | ||||||||||
Anthem, Inc. | 394 | 89 | ||||||||||
Baxter International, Inc. | 475 | 31 | ||||||||||
Becton Dickinson and Co. | 236 | 50 | ||||||||||
Bio-Rad Laboratories, Inc. ‘A’ (a) | 23 | 5 | ||||||||||
Biogen, Inc. (a) | 62 | 20 | ||||||||||
Boston Scientific Corp. (a) | 802 | 20 | ||||||||||
Brookdale Senior Living, Inc. (a) | 150 | 1 | ||||||||||
Bruker Corp. | 87 | 3 | ||||||||||
Cardinal Health, Inc. | 359 | 22 | ||||||||||
Catalent, Inc. (a) | 90 | 4 | ||||||||||
Centene Corp. (a) | 97 | 10 | ||||||||||
Cerner Corp. (a) | 186 | 12 | ||||||||||
Charles River Laboratories International, Inc. (a) | 18 | 2 | ||||||||||
Chemed Corp. | 36 | 9 | ||||||||||
Cigna Corp. | 217 | 44 | ||||||||||
Community Health Systems, Inc. (a) | 596 | 3 | ||||||||||
Cooper Cos., Inc. | 40 | 9 | ||||||||||
Danaher Corp. | 169 | 16 | ||||||||||
DaVita, Inc. (a) | 82 | 6 | ||||||||||
Dentsply Sirona, Inc. | 99 | 6 | ||||||||||
Encompass Health Corp. | 36 | 2 | ||||||||||
Express Scripts Holding Co. (a) | 1,675 | 125 | ||||||||||
Gilead Sciences, Inc. | 879 | 63 | ||||||||||
Haemonetics Corp. (a) | 60 | 3 | ||||||||||
SHARES | MARKET VALUE (000S) | |||||||||||
Henry Schein, Inc. (a) | 72 | $ | 5 | |||||||||
Hill-Rom Holdings, Inc. | 25 | 2 | ||||||||||
Humana, Inc. | 180 | 45 | ||||||||||
Illumina, Inc. (a) | 69 | 15 | ||||||||||
Integra LifeSciences Holdings Corp. (a) | 46 | 2 | ||||||||||
Intuitive Surgical, Inc. (a) | 81 | 30 | ||||||||||
Invacare Corp. | 99 | 2 | ||||||||||
IQVIA Holdings, Inc. (a) | 57 | 6 | ||||||||||
Johnson & Johnson | 1,606 | 224 | ||||||||||
Kindred Healthcare, Inc. | 432 | 4 | ||||||||||
Laboratory Corp. of America Holdings (a) | 36 | 6 | ||||||||||
LifePoint Health, Inc. (a) | 119 | 6 | ||||||||||
Magellan Health, Inc. (a) | 53 | 5 | ||||||||||
Masimo Corp. (a) | 36 | 3 | ||||||||||
MEDNAX, Inc. (a) | 129 | 7 | ||||||||||
Mettler-Toledo International, Inc. (a) | 20 | 12 | ||||||||||
Molina Healthcare, Inc. (a) | 19 | 1 | ||||||||||
Myriad Genetics, Inc. (a) | 294 | 10 | ||||||||||
Owens & Minor, Inc. | 304 | 6 | ||||||||||
Patterson Cos., Inc. | 116 | 4 | ||||||||||
PDL BioPharma, Inc. (a) | 770 | 2 | ||||||||||
PerkinElmer, Inc. | 43 | 3 | ||||||||||
PRA Health Sciences, Inc. (a) | 20 | 2 | ||||||||||
Quest Diagnostics, Inc. | 87 | 9 | ||||||||||
Regeneron Pharmaceuticals, Inc. (a) | 31 | 12 | ||||||||||
ResMed, Inc. | 228 | 19 | ||||||||||
Select Medical Holdings Corp. (a) | 250 | 4 | ||||||||||
Stryker Corp. | 253 | 39 | ||||||||||
Teleflex, Inc. | 37 | 9 | ||||||||||
Tenet Healthcare Corp. (a) | 451 | 7 | ||||||||||
Thermo Fisher Scientific, Inc. | 234 | 44 | ||||||||||
United Therapeutics Corp. (a) | 40 | 6 | ||||||||||
UnitedHealth Group, Inc. | 559 | 123 | ||||||||||
Valeant Pharmaceuticals International, Inc. (a) | 368 | 8 | ||||||||||
Varian Medical Systems, Inc. (a) | 92 | 10 | ||||||||||
Vertex Pharmaceuticals, Inc. (a) | 98 | 15 | ||||||||||
Waters Corp. (a) | 45 | 9 | ||||||||||
WellCare Health Plans, Inc. (a) | 17 | 3 | ||||||||||
Zoetis, Inc. | 243 | 17 | ||||||||||
|
| |||||||||||
1,513 | ||||||||||||
|
| |||||||||||
INDUSTRIALS 13.0% | ||||||||||||
3M Co. | 931 | 219 | ||||||||||
AAR Corp. | 70 | 3 | ||||||||||
ABM Industries, Inc. | 93 | 4 | ||||||||||
ACCO Brands Corp. (a) | 138 | 2 | ||||||||||
Actuant Corp. ‘A’ | 152 | 4 | ||||||||||
Aegion Corp. (a) | 71 | 2 | ||||||||||
AGCO Corp. | 76 | 5 | ||||||||||
Air Lease Corp. | 37 | 2 | ||||||||||
Aircastle Ltd. | 77 | 2 | ||||||||||
Alaska Air Group, Inc. | 79 | 6 | ||||||||||
Allegiant Travel Co. | 15 | 2 | ||||||||||
Allison Transmission Holdings, Inc. | 176 | 8 | ||||||||||
AMERCO | 6 | 2 | ||||||||||
American Airlines Group, Inc. | 403 | 21 | ||||||||||
AMETEK, Inc. | 133 | 10 | ||||||||||
AO Smith Corp. | 70 | 4 | ||||||||||
Applied Industrial Technologies, Inc. | 59 | 4 | ||||||||||
ArcBest Corp. | 98 | 4 | ||||||||||
Atlas Air Worldwide Holdings, Inc. (a) | 52 | 3 | ||||||||||
Avis Budget Group, Inc. (a) | 300 | 13 | ||||||||||
SHARES | MARKET VALUE (000S) | |||||||||||
Babcock & Wilcox Enterprises, Inc. (a) | 525 | $ | 3 | |||||||||
Boeing Co. | 601 | 177 | ||||||||||
Briggs & Stratton Corp. | 98 | 3 | ||||||||||
Brink’s Co. | 19 | 2 | ||||||||||
BWX Technologies, Inc. | 140 | 8 | ||||||||||
Caterpillar, Inc. | 348 | 55 | ||||||||||
CH Robinson Worldwide, Inc. | 249 | 22 | ||||||||||
Cintas Corp. | 145 | 23 | ||||||||||
Copart, Inc. (a) | 280 | 12 | ||||||||||
Covanta Holding Corp. | 195 | 3 | ||||||||||
Crane Co. | 43 | 4 | ||||||||||
CSX Corp. | 496 | 27 | ||||||||||
Cummins, Inc. | 252 | 45 | ||||||||||
Curtiss-Wright Corp. | 35 | 4 | ||||||||||
Deere & Co. | 888 | 139 | ||||||||||
Delta Air Lines, Inc. | 63 | 4 | ||||||||||
Deluxe Corp. | 50 | 4 | ||||||||||
Donaldson Co., Inc. | 95 | 5 | ||||||||||
Emerson Electric Co. | 688 | 48 | ||||||||||
Encore Wire Corp. | 29 | 1 | ||||||||||
ESCO Technologies, Inc. | 24 | 1 | ||||||||||
Esterline Technologies Corp. (a) | 19 | 1 | ||||||||||
Expeditors International of Washington, Inc. | 291 | 19 | ||||||||||
Fastenal Co. | 182 | 10 | ||||||||||
Federal Signal Corp. | 90 | 2 | ||||||||||
Flowserve Corp. | 34 | 1 | ||||||||||
Fluor Corp. | 278 | 14 | ||||||||||
Fortive Corp. | 180 | 13 | ||||||||||
Franklin Electric Co., Inc. | 37 | 2 | ||||||||||
FTI Consulting, Inc. (a) | 42 | 2 | ||||||||||
GATX Corp. | 72 | 4 | ||||||||||
Generac Holdings, Inc. (a) | 86 | 4 | ||||||||||
General Cable Corp. | 116 | 3 | ||||||||||
General Dynamics Corp. | 335 | 68 | ||||||||||
Graco, Inc. | 156 | 7 | ||||||||||
Greenbrier Cos., Inc. | 97 | 5 | ||||||||||
H&E Equipment Services, Inc. | 121 | 5 | ||||||||||
Harris Corp. | 70 | 10 | ||||||||||
Harsco Corp. (a) | 132 | 2 | ||||||||||
HD Supply Holdings, Inc. (a) | 64 | 3 | ||||||||||
Healthcare Services Group, Inc. | 104 | 6 | ||||||||||
HEICO Corp. | 25 | 2 | ||||||||||
Herc Holdings, Inc. (a) | 45 | 3 | ||||||||||
Herman Miller, Inc. | 66 | 3 | ||||||||||
Hertz Global Holdings, Inc. (a) | 336 | 7 | ||||||||||
Hexcel Corp. | 107 | 7 | ||||||||||
Hillenbrand, Inc. | 54 | 2 | ||||||||||
HNI Corp. | 64 | 2 | ||||||||||
Hub Group, Inc. ‘A’ (a) | 80 | 4 | ||||||||||
Hubbell, Inc. | 22 | 3 | ||||||||||
Huntington Ingalls Industries, Inc. | 46 | 11 | ||||||||||
Hyster-Yale Materials Handling, Inc. | 29 | 2 | ||||||||||
IDEX Corp. | 80 | 11 | ||||||||||
Illinois Tool Works, Inc. | 216 | 36 | ||||||||||
Insperity, Inc. | 86 | 5 | ||||||||||
Interface, Inc. | 81 | 2 | ||||||||||
ITT, Inc. | 82 | 4 | ||||||||||
Jacobs Engineering Group, Inc. | 123 | 8 | ||||||||||
JB Hunt Transport Services, Inc. | 87 | 10 | ||||||||||
Kaman Corp. | 38 | 2 | ||||||||||
KAR Auction Services, Inc. | 106 | 5 | ||||||||||
KBR, Inc. | 652 | 13 | ||||||||||
Kennametal, Inc. | 31 | 2 | ||||||||||
See Accompanying Notes | SEMIANNUAL REPORT | DECEMBER 31, 2017 | 43 |
Table of Contents
Schedule of Investments PIMCO RAFI Dynamic Multi-Factor U.S. Equity ETF (Cont.)
SHARES | MARKET VALUE (000S) | |||||||||||
Knight-Swift Transportation Holdings, Inc. | 79 | $ | 3 | |||||||||
Landstar System, Inc. | 91 | 9 | ||||||||||
Lennox International, Inc. | 38 | 8 | ||||||||||
Lincoln Electric Holdings, Inc. | 72 | 7 | ||||||||||
Lindsay Corp. | 23 | 2 | ||||||||||
Lockheed Martin Corp. | 350 | 112 | ||||||||||
LSC Communications, Inc. | 92 | 1 | ||||||||||
Macquarie Infrastructure Corp. | 73 | 5 | ||||||||||
ManpowerGroup, Inc. | 114 | 14 | ||||||||||
Masco Corp. | 126 | 6 | ||||||||||
Masonite International Corp. (a) | 19 | 1 | ||||||||||
Moog, Inc. ‘A’ (a) | 36 | 3 | ||||||||||
MRC Global, Inc. (a) | 232 | 4 | ||||||||||
MSC Industrial Direct Co., Inc. ‘A’ | 128 | 12 | ||||||||||
Mueller Industries, Inc. | 58 | 2 | ||||||||||
MYR Group, Inc. (a) | 43 | 2 | ||||||||||
Nordson Corp. | 34 | 5 | ||||||||||
Norfolk Southern Corp. | 167 | 24 | ||||||||||
Northrop Grumman Corp. | 349 | 107 | ||||||||||
NOW, Inc. (a) | 313 | 3 | ||||||||||
Old Dominion Freight Line, Inc. | 48 | 6 | ||||||||||
Orbital ATK, Inc. | 22 | 3 | ||||||||||
Oshkosh Corp. | 61 | 6 | ||||||||||
Owens Corning | 64 | 6 | ||||||||||
Parker-Hannifin Corp. | 187 | 37 | ||||||||||
Pitney Bowes, Inc. | 672 | 8 | ||||||||||
Quad/Graphics, Inc. | 80 | 2 | ||||||||||
Quanex Building Products Corp. | 59 | 1 | ||||||||||
Quanta Services, Inc. (a) | 191 | 7 | ||||||||||
Raytheon Co. | 305 | 57 | ||||||||||
Republic Services, Inc. | 241 | 16 | ||||||||||
Robert Half International, Inc. | 193 | 11 | ||||||||||
Rockwell Automation, Inc. | 137 | 27 | ||||||||||
Rockwell Collins, Inc. | 213 | 29 | ||||||||||
Rollins, Inc. | 100 | 5 | ||||||||||
Roper Technologies, Inc. | 59 | 15 | ||||||||||
RR Donnelley & Sons Co. | 344 | 3 | ||||||||||
Rush Enterprises, Inc. ‘A’ (a) | 73 | 4 | ||||||||||
Ryder System, Inc. | 54 | 5 | ||||||||||
Sensata Technologies Holding NV (a) | 67 | 3 | ||||||||||
SkyWest, Inc. | 103 | 5 | ||||||||||
Southwest Airlines Co. | 47 | 3 | ||||||||||
Spirit AeroSystems Holdings, Inc. ‘A’ | 143 | 12 | ||||||||||
SPX FLOW, Inc. (a) | 77 | 4 | ||||||||||
Stanley Black & Decker, Inc. | 89 | 15 | ||||||||||
Steelcase, Inc. ‘A’ | 246 | 4 | ||||||||||
Stericycle, Inc. (a) | 57 | 4 | ||||||||||
Teledyne Technologies, Inc. (a) | 38 | 7 | ||||||||||
Terex Corp. | 198 | 10 | ||||||||||
Textainer Group Holdings Ltd. (a) | 80 | 2 | ||||||||||
Textron, Inc. | 141 | 8 | ||||||||||
Timken Co. | 135 | 7 | ||||||||||
Toro Co. | 111 | 7 | ||||||||||
TransDigm Group, Inc. | 17 | 5 | ||||||||||
TransUnion (a) | 63 | 3 | ||||||||||
Trinity Industries, Inc. | 150 | 6 | ||||||||||
Triumph Group, Inc. | 115 | 3 | ||||||||||
TrueBlue, Inc. (a) | 57 | 2 | ||||||||||
Tutor Perini Corp. (a) | 80 | 2 | ||||||||||
United Parcel Service, Inc. ‘B’ | 484 | 58 | ||||||||||
United Rentals, Inc. (a) | 115 | 20 | ||||||||||
United Technologies Corp. | 680 | 87 | ||||||||||
Verisk Analytics, Inc. (a) | 50 | 5 | ||||||||||
Viad Corp. | 30 | 2 | ||||||||||
SHARES | MARKET VALUE (000S) | |||||||||||
Wabash National Corp. | 153 | $ | 3 | |||||||||
WABCO Holdings, Inc. (a) | 60 | 9 | ||||||||||
Wabtec Corp. | 66 | 5 | ||||||||||
Waste Management, Inc. | 440 | 38 | ||||||||||
Watsco, Inc. | 45 | 8 | ||||||||||
Welbilt, Inc. (a) | 143 | 3 | ||||||||||
Werner Enterprises, Inc. | 98 | 4 | ||||||||||
WESCO International, Inc. (a) | 118 | 8 | ||||||||||
WW Grainger, Inc. | 110 | 26 | ||||||||||
XPO Logistics, Inc. (a) | 46 | 4 | ||||||||||
Xylem, Inc. | 189 | 13 | ||||||||||
|
| |||||||||||
2,218 | ||||||||||||
|
| |||||||||||
INFORMATION TECHNOLOGY 19.9% | ||||||||||||
Activision Blizzard, Inc. | 413 | 26 | ||||||||||
Adobe Systems, Inc. (a) | 288 | 50 | ||||||||||
ADTRAN, Inc. | 125 | 2 | ||||||||||
Alliance Data Systems Corp. | 13 | 3 | ||||||||||
Alphabet, Inc. ‘A’ (a) | 269 | 283 | ||||||||||
Amdocs Ltd. | 96 | 6 | ||||||||||
Amphenol Corp. ‘A’ | 178 | 16 | ||||||||||
Analog Devices, Inc. | 215 | 19 | ||||||||||
Anixter International, Inc. (a) | 54 | 4 | ||||||||||
ANSYS, Inc. (a) | 66 | 10 | ||||||||||
Apple, Inc. | 2,668 | 451 | ||||||||||
Applied Materials, Inc. | 622 | 32 | ||||||||||
Arista Networks, Inc. (a) | 19 | 4 | ||||||||||
Arrow Electronics, Inc. (a) | 113 | 9 | ||||||||||
Aspen Technology, Inc. (a) | 49 | 3 | ||||||||||
Autodesk, Inc. (a) | 85 | 9 | ||||||||||
Automatic Data Processing, Inc. | 242 | 28 | ||||||||||
Avnet, Inc. | 284 | 11 | ||||||||||
Benchmark Electronics, Inc. (a) | 124 | 4 | ||||||||||
Booz Allen Hamilton Holding Corp. | 271 | 10 | ||||||||||
Broadcom Ltd. | 238 | 61 | ||||||||||
Broadridge Financial Solutions, Inc. | 117 | 11 | ||||||||||
CACI International, Inc. ‘A’ (a) | 54 | 7 | ||||||||||
Cadence Design Systems, Inc. (a) | 180 | 8 | ||||||||||
CDK Global, Inc. | 52 | 4 | ||||||||||
CDW Corp. | 101 | 7 | ||||||||||
Cognex Corp. | 64 | 4 | ||||||||||
Cognizant Technology Solutions Corp. ‘A’ | 343 | 24 | ||||||||||
Coherent, Inc. (a) | 14 | 4 | ||||||||||
Comtech Telecommunications Corp. | 80 | 2 | ||||||||||
Convergys Corp. | 202 | 5 | ||||||||||
CoreLogic, Inc. (a) | 32 | 1 | ||||||||||
Corning, Inc. | 1,120 | 36 | ||||||||||
CoStar Group, Inc. (a) | 14 | 4 | ||||||||||
Cree, Inc. (a) | 223 | 8 | ||||||||||
CSG Systems International, Inc. | 49 | 2 | ||||||||||
CSRA, Inc. | 86 | 3 | ||||||||||
Cypress Semiconductor Corp. | 125 | 2 | ||||||||||
Dolby Laboratories, Inc. ‘A’ | 71 | 4 | ||||||||||
DST Systems, Inc. | 65 | 4 | ||||||||||
eBay, Inc. (a) | 445 | 17 | ||||||||||
Electronic Arts, Inc. (a) | 209 | 22 | ||||||||||
Entegris, Inc. | 55 | 2 | ||||||||||
EPAM Systems, Inc. (a) | 20 | 2 | ||||||||||
ePlus, Inc. (a) | 22 | 2 | ||||||||||
Euronet Worldwide, Inc. (a) | 20 | 2 | ||||||||||
F5 Networks, Inc. (a) | 43 | 6 | ||||||||||
Facebook, Inc. ‘A’ (a) | 1,376 | 243 | ||||||||||
Fair Isaac Corp. | 28 | 4 | ||||||||||
SHARES | MARKET VALUE (000S) | |||||||||||
Fidelity National Information Services, Inc. | 194 | $ | 18 | |||||||||
First Data Corp. ‘A’ (a) | 272 | 5 | ||||||||||
First Solar, Inc. (a) | 69 | 5 | ||||||||||
Fiserv, Inc. (a) | 220 | 29 | ||||||||||
FleetCor Technologies, Inc. (a) | 35 | 7 | ||||||||||
FLIR Systems, Inc. | 193 | 9 | ||||||||||
Fortinet, Inc. (a) | 58 | 3 | ||||||||||
Gartner, Inc. (a) | 34 | 4 | ||||||||||
Genpact Ltd. | 316 | 10 | ||||||||||
Global Payments, Inc. | 62 | 6 | ||||||||||
HP, Inc. | 2,092 | 44 | ||||||||||
Insight Enterprises, Inc. (a) | 64 | 2 | ||||||||||
Integrated Device Technology, Inc. (a) | 132 | 4 | ||||||||||
InterActiveCorp (a) | 29 | 4 | ||||||||||
International Business Machines Corp. | 2,155 | 331 | ||||||||||
Intuit, Inc. | 235 | 37 | ||||||||||
IPG Photonics Corp. (a) | 20 | 4 | ||||||||||
Jabil, Inc. | 188 | 5 | ||||||||||
Jack Henry & Associates, Inc. | 108 | 13 | ||||||||||
Juniper Networks, Inc. | 234 | 7 | ||||||||||
Keysight Technologies, Inc. (a) | 72 | 3 | ||||||||||
KLA-Tencor Corp. | 198 | 21 | ||||||||||
Lam Research Corp. | 95 | 17 | ||||||||||
Leidos Holdings, Inc. | 188 | 12 | ||||||||||
Littelfuse, Inc. | 9 | 2 | ||||||||||
Manhattan Associates, Inc. (a) | 38 | 2 | ||||||||||
ManTech International Corp. ‘A’ | 53 | 3 | ||||||||||
Mastercard, Inc. ‘A’ | 779 | 118 | ||||||||||
Maxim Integrated Products, Inc. | 163 | 9 | ||||||||||
Methode Electronics, Inc. | 32 | 1 | ||||||||||
Microchip Technology, Inc. | 134 | 12 | ||||||||||
Micron Technology, Inc. (a) | 646 | 27 | ||||||||||
Microsoft Corp. | 3,359 | 287 | ||||||||||
MKS Instruments, Inc. | 21 | 2 | ||||||||||
Motorola Solutions, Inc. | 432 | 39 | ||||||||||
National Instruments Corp. | 47 | 2 | ||||||||||
NVIDIA Corp. | 318 | 62 | ||||||||||
ON Semiconductor Corp. (a) | 163 | 3 | ||||||||||
Oracle Corp. | 1,785 | 84 | ||||||||||
Paychex, Inc. | 221 | 15 | ||||||||||
PayPal Holdings, Inc. (a) | 663 | 49 | ||||||||||
Photronics, Inc. (a) | 212 | 2 | ||||||||||
Plantronics, Inc. | 55 | 3 | ||||||||||
Plexus Corp. (a) | 60 | 4 | ||||||||||
PTC, Inc. (a) | 45 | 3 | ||||||||||
Qorvo, Inc. (a) | 143 | 10 | ||||||||||
QUALCOMM, Inc. | 1,464 | 94 | ||||||||||
Red Hat, Inc. (a) | 69 | 8 | ||||||||||
salesforce.com, Inc. (a) | 266 | 27 | ||||||||||
Sanmina Corp. (a) | 178 | 6 | ||||||||||
Seagate Technology PLC | 1,156 | 48 | ||||||||||
Silicon Laboratories, Inc. (a) | 16 | 1 | ||||||||||
Skyworks Solutions, Inc. | 132 | 13 | ||||||||||
SS&C Technologies Holdings, Inc. | 68 | 3 | ||||||||||
Symantec Corp. | 581 | 16 | ||||||||||
SYNNEX Corp. | 10 | 1 | ||||||||||
Synopsys, Inc. (a) | 58 | 5 | ||||||||||
Syntel, Inc. (a) | 96 | 2 | ||||||||||
Take-Two Interactive Software, Inc. (a) | 44 | 5 | ||||||||||
Tech Data Corp. (a) | 74 | 7 | ||||||||||
Teradata Corp. (a) | 133 | 5 | ||||||||||
Teradyne, Inc. | 141 | 6 | ||||||||||
Texas Instruments, Inc. | 502 | 52 | ||||||||||
44 | PIMCO EQUITY SERIES | See Accompanying Notes |
Table of Contents
December 31, 2017 (Unaudited)
SHARES | MARKET VALUE (000S) | |||||||||||
Total System Services, Inc. | 155 | $ | 12 | |||||||||
Trimble, Inc. (a) | 98 | 4 | ||||||||||
Twitter, Inc. (a) | 251 | 6 | ||||||||||
Tyler Technologies, Inc. (a) | 14 | 2 | ||||||||||
VeriSign, Inc. (a) | 73 | 8 | ||||||||||
Versum Materials, Inc. | 98 | 4 | ||||||||||
Visa, Inc. ‘A’ | 1,560 | 178 | ||||||||||
Vishay Intertechnology, Inc. | 304 | 6 | ||||||||||
VMware, Inc. ‘A’ (a) | 45 | 6 | ||||||||||
Western Digital Corp. | 169 | 13 | ||||||||||
Western Union Co. | 575 | 11 | ||||||||||
Xerox Corp. | 406 | 12 | ||||||||||
Xilinx, Inc. | 265 | 18 | ||||||||||
Zebra Technologies Corp. ‘A’ (a) | 20 | 2 | ||||||||||
|
| |||||||||||
3,401 | ||||||||||||
|
| |||||||||||
MATERIALS 4.4% | ||||||||||||
AdvanSix, Inc. (a) | 74 | 3 | ||||||||||
Albemarle Corp. | 65 | 8 | ||||||||||
Alcoa Corp. (a) | 415 | 22 | ||||||||||
Allegheny Technologies, Inc. (a) | 349 | 8 | ||||||||||
AptarGroup, Inc. | 93 | 8 | ||||||||||
Ashland Global Holdings, Inc. | 24 | 2 | ||||||||||
Avery Dennison Corp. | 111 | 13 | ||||||||||
Ball Corp. | 119 | 5 | ||||||||||
Bemis Co., Inc. | 144 | 7 | ||||||||||
Berry Global Group, Inc. (a) | 51 | 3 | ||||||||||
Boise Cascade Co. | 106 | 4 | ||||||||||
Carpenter Technology Corp. | 87 | 4 | ||||||||||
Celanese Corp. ‘A’ | 79 | 9 | ||||||||||
CF Industries Holdings, Inc. | 383 | 16 | ||||||||||
Chemours Co. | 72 | 4 | ||||||||||
Clearwater Paper Corp. (a) | 48 | 2 | ||||||||||
Cleveland-Cliffs, Inc. (a) | 1,170 | 8 | ||||||||||
Commercial Metals Co. | 341 | 7 | ||||||||||
Compass Minerals International, Inc. | 85 | 6 | ||||||||||
Crown Holdings, Inc. (a) | 101 | 6 | ||||||||||
Domtar Corp. | 129 | 6 | ||||||||||
DowDuPont, Inc. | 1,749 | 125 | ||||||||||
Eastman Chemical Co. | 77 | 7 | ||||||||||
FMC Corp. | 52 | 5 | ||||||||||
Freeport-McMoRan, Inc. (a) | 1,336 | 25 | ||||||||||
GCP Applied Technologies, Inc. (a) | 69 | 2 | ||||||||||
Graphic Packaging Holding Co. | 296 | 5 | ||||||||||
Huntsman Corp. | 118 | 4 | ||||||||||
Innophos Holdings, Inc. | 37 | 2 | ||||||||||
Innospec, Inc. | 26 | 2 | ||||||||||
International Flavors & Fragrances, Inc. | 76 | 12 | ||||||||||
Kaiser Aluminum Corp. | 42 | 5 | ||||||||||
Louisiana-Pacific Corp. (a) | 56 | 2 | ||||||||||
LyondellBasell Industries NV ‘A’ | 1,007 | 111 | ||||||||||
Materion Corp. | 40 | 2 | ||||||||||
Monsanto Co. | 767 | 90 | ||||||||||
Mosaic Co. | 782 | 20 | ||||||||||
NewMarket Corp. | 12 | 5 | ||||||||||
Olin Corp. | 64 | 2 | ||||||||||
Owens-Illinois, Inc. (a) | 160 | 4 | ||||||||||
Packaging Corp. of America | 101 | 12 | ||||||||||
PolyOne Corp. | 130 | 6 | ||||||||||
PPG Industries, Inc. | 175 | 20 | ||||||||||
Praxair, Inc. | 287 | 44 | ||||||||||
Reliance Steel & Aluminum Co. | 84 | 7 | ||||||||||
Royal Gold, Inc. | 25 | 2 | ||||||||||
SHARES | MARKET VALUE (000S) | |||||||||||
RPM International, Inc. | 109 | $ | 6 | |||||||||
Schnitzer Steel Industries, Inc. ‘A’ | 122 | 4 | ||||||||||
Schweitzer-Mauduit International, Inc. | 33 | 2 | ||||||||||
Scotts Miracle-Gro Co. | 37 | 4 | ||||||||||
Sealed Air Corp. | 131 | 7 | ||||||||||
Sensient Technologies Corp. | 45 | 3 | ||||||||||
Sherwin-Williams Co. | 64 | 26 | ||||||||||
Silgan Holdings, Inc. | 211 | 6 | ||||||||||
Sonoco Products Co. | 209 | 11 | ||||||||||
TimkenSteel Corp. (a) | 129 | 2 | ||||||||||
Trinseo S.A. | 32 | 2 | ||||||||||
Tronox Ltd. ‘A’ | 153 | 3 | ||||||||||
United States Steel Corp. | 44 | 2 | ||||||||||
Valvoline, Inc. | 135 | 3 | ||||||||||
Worthington Industries, Inc. | 32 | 1 | ||||||||||
WR Grace & Co. | 35 | 2 | ||||||||||
|
| |||||||||||
756 | ||||||||||||
|
| |||||||||||
REAL ESTATE 0.1% | ||||||||||||
CBRE Group, Inc. ‘A’ (a) | 120 | 5 | ||||||||||
Jones Lang LaSalle, Inc. | 18 | 3 | ||||||||||
Realogy Holdings Corp. | 53 | 1 | ||||||||||
St. Joe Co. (a) | 110 | 2 | ||||||||||
|
| |||||||||||
11 | ||||||||||||
|
| |||||||||||
TELECOMMUNICATION SERVICES 2.7% | ||||||||||||
AT&T, Inc. | 3,402 | 132 | ||||||||||
CenturyLink, Inc. | 1,411 | 24 | ||||||||||
Frontier Communications Corp. | 645 | 4 | ||||||||||
Telephone & Data Systems, Inc. | 152 | 4 | ||||||||||
Verizon Communications, Inc. | 5,638 | 299 | ||||||||||
Windstream Holdings, Inc. | 1,238 | 2 | ||||||||||
|
| |||||||||||
465 | ||||||||||||
|
| |||||||||||
UTILITIES 2.0% | ||||||||||||
AES Corp. | 1,710 | 19 | ||||||||||
ALLETE, Inc. | 20 | 2 | ||||||||||
Ameren Corp. | 142 | 8 | ||||||||||
American Electric Power Co., Inc. | 288 | 21 | ||||||||||
Aqua America, Inc. | 69 | 3 | ||||||||||
Atmos Energy Corp. | 61 | 5 | ||||||||||
Calpine Corp. (a) | 514 | 8 | ||||||||||
CenterPoint Energy, Inc. | 247 | 7 | ||||||||||
CMS Energy Corp. | 164 | 8 | ||||||||||
DTE Energy Co. | 104 | 11 | ||||||||||
Dynegy, Inc. (a) | 351 | 4 | ||||||||||
Entergy Corp. | 262 | 21 | ||||||||||
Eversource Energy | 185 | 12 | ||||||||||
Exelon Corp. | 1,346 | 53 | ||||||||||
FirstEnergy Corp. | 513 | 16 | ||||||||||
Great Plains Energy, Inc. | 126 | 4 | ||||||||||
Hawaiian Electric Industries, Inc. | 72 | 3 | ||||||||||
IDACORP, Inc. | 11 | 1 | ||||||||||
MDU Resources Group, Inc. | 250 | 7 | ||||||||||
New Jersey Resources Corp. | 33 | 1 | ||||||||||
NextEra Energy, Inc. | 275 | 43 | ||||||||||
NiSource, Inc. | 162 | 4 | ||||||||||
NRG Energy, Inc. | 438 | 12 | ||||||||||
ONE Gas, Inc. | 20 | 1 | ||||||||||
Pinnacle West Capital Corp. | 65 | 6 | ||||||||||
PNM Resources, Inc. | 31 | 1 | ||||||||||
PPL Corp. | 700 | 22 | ||||||||||
Public Service Enterprise Group, Inc. | 296 | 15 | ||||||||||
SHARES | MARKET VALUE (000S) | |||||||||||
Spire, Inc. | 49 | $ | 4 | |||||||||
Vectren Corp. | 32 | 2 | ||||||||||
Westar Energy, Inc. | 80 | 4 | ||||||||||
WGL Holdings, Inc. | 20 | 2 | ||||||||||
Xcel Energy, Inc. | 297 | 14 | ||||||||||
|
| |||||||||||
344 | ||||||||||||
|
| |||||||||||
Total United States | 16,187 | |||||||||||
|
| |||||||||||
Total Common Stocks | 16,271 | |||||||||||
|
| |||||||||||
REAL ESTATE INVESTMENT TRUSTS 4.2% | ||||||||||||
UNITED STATES 4.2% | ||||||||||||
FINANCIALS 0.6% | ||||||||||||
AGNC Investment Corp. | 700 | 14 | ||||||||||
Annaly Capital Management, Inc. | 1,403 | 17 | ||||||||||
Apollo Commercial Real Estate Finance, Inc. | 115 | 2 | ||||||||||
Blackstone Mortgage Trust, Inc. ‘A’ | 119 | 4 | ||||||||||
Capstead Mortgage Corp. | 243 | 2 | ||||||||||
Chimera Investment Corp. | 378 | 7 | ||||||||||
CYS Investments, Inc. | 477 | 4 | ||||||||||
Invesco Mortgage Capital, Inc. | 294 | 5 | ||||||||||
Ladder Capital Corp. | 102 | 1 | ||||||||||
MFA Financial, Inc. | 722 | 6 | ||||||||||
New Residential Investment Corp. | 428 | 8 | ||||||||||
New York Mortgage Trust, Inc. | 306 | 2 | ||||||||||
PennyMac Mortgage Investment Trust | 186 | 3 | ||||||||||
Redwood Trust, Inc. | 131 | 2 | ||||||||||
Starwood Property Trust, Inc. | 287 | 6 | ||||||||||
Two Harbors Investment Corp. | 570 | 9 | ||||||||||
|
| |||||||||||
92 | ||||||||||||
|
| |||||||||||
REAL ESTATE 3.6% | ||||||||||||
Acadia Realty Trust | 61 | 2 | ||||||||||
Alexandria Real Estate Equities, Inc. | 50 | 6 | ||||||||||
American Campus Communities, Inc. | 109 | 4 | ||||||||||
American Homes 4 Rent ‘A’ | 113 | 2 | ||||||||||
American Tower Corp. | 302 | 43 | ||||||||||
Apartment Investment & Management Co. ‘A’ | 99 | 4 | ||||||||||
AvalonBay Communities, Inc. | 39 | 7 | ||||||||||
Boston Properties, Inc. | 62 | 8 | ||||||||||
Brandywine Realty Trust | 211 | 4 | ||||||||||
Brixmor Property Group, Inc. | 374 | 7 | ||||||||||
Camden Property Trust | 72 | 7 | ||||||||||
CBL & Associates Properties, Inc. | 483 | 3 | ||||||||||
Columbia Property Trust, Inc. | 236 | 5 | ||||||||||
CoreCivic, Inc. | 224 | 5 | ||||||||||
Corporate Office Properties Trust | 97 | 3 | ||||||||||
Cousins Properties, Inc. | 162 | 1 | ||||||||||
Crown Castle International Corp. | 301 | 33 | ||||||||||
CubeSmart | 175 | 5 | ||||||||||
CyrusOne, Inc. | 58 | 3 | ||||||||||
DCT Industrial Trust, Inc. | 89 | 5 | ||||||||||
DDR Corp. | 586 | 5 | ||||||||||
Digital Realty Trust, Inc. | 161 | 18 | ||||||||||
Douglas Emmett, Inc. | 94 | 4 | ||||||||||
Duke Realty Corp. | 242 | 7 | ||||||||||
EastGroup Properties, Inc. | 33 | 3 | ||||||||||
Education Realty Trust, Inc. | 49 | 2 | ||||||||||
Empire State Realty Trust, Inc. ‘A’ | 68 | 1 | ||||||||||
EPR Properties | 47 | 3 | ||||||||||
Equinix, Inc. | 44 | 20 | ||||||||||
See Accompanying Notes | SEMIANNUAL REPORT | DECEMBER 31, 2017 | 45 |
Table of Contents
Schedule of Investments PIMCO RAFI Dynamic Multi-Factor U.S. Equity ETF (Cont.)
December 31, 2017 (Unaudited)
SHARES | MARKET VALUE (000S) | |||||||||||
Equity Commonwealth (a) | 155 | $ | 5 | |||||||||
Equity LifeStyle Properties, Inc. | 63 | 6 | ||||||||||
Equity Residential | 144 | 9 | ||||||||||
Essex Property Trust, Inc. | 55 | 13 | ||||||||||
Extra Space Storage, Inc. | 103 | 9 | ||||||||||
Federal Realty Investment Trust | 39 | 5 | ||||||||||
First Industrial Realty Trust, Inc. | 59 | 2 | ||||||||||
Forest City Realty Trust, Inc. | 99 | 2 | ||||||||||
Franklin Street Properties Corp. | 167 | 2 | ||||||||||
Gaming and Leisure Properties, Inc. | 199 | 7 | ||||||||||
GGP, Inc. | 280 | 7 | ||||||||||
Government Properties Income Trust | 98 | 2 | ||||||||||
Gramercy Property Trust | 105 | 3 | ||||||||||
HCP, Inc. | 274 | 7 | ||||||||||
Healthcare Realty Trust, Inc. | 86 | 3 | ||||||||||
Healthcare Trust of America, Inc. ‘A’ | 96 | 3 | ||||||||||
Highwoods Properties, Inc. | 77 | 4 | ||||||||||
Hudson Pacific Properties, Inc. | 61 | 2 | ||||||||||
Iron Mountain, Inc. | 506 | 19 | ||||||||||
Kilroy Realty Corp. | 61 | 5 | ||||||||||
Kimco Realty Corp. | 222 | 4 | ||||||||||
Kite Realty Group Trust | 115 | 2 | ||||||||||
Lamar Advertising Co. ‘A’ | 86 | 6 | ||||||||||
Lexington Realty Trust | 264 | 3 | ||||||||||
Liberty Property Trust | 147 | 6 | ||||||||||
Life Storage, Inc. | 49 | 4 | ||||||||||
Macerich Co. | 78 | 5 | ||||||||||
Mack-Cali Realty Corp. | 132 | 3 | ||||||||||
Medical Properties Trust, Inc. | 231 | 3 | ||||||||||
SHARES | MARKET VALUE (000S) | |||||||||||
Mid-America Apartment Communities, Inc. | 98 | $ | 10 | |||||||||
National Health Investors, Inc. | 21 | 2 | ||||||||||
National Retail Properties, Inc. | 108 | 5 | ||||||||||
New Senior Investment Group, Inc. | 162 | 1 | ||||||||||
Omega Healthcare Investors, Inc. | 176 | 5 | ||||||||||
Outfront Media, Inc. | 209 | 5 | ||||||||||
Paramount Group, Inc. | 256 | 4 | ||||||||||
Piedmont Office Realty Trust, Inc. ‘A’ | 234 | 5 | ||||||||||
Potlatch Corp. | 29 | 1 | ||||||||||
Prologis, Inc. | 169 | 11 | ||||||||||
PS Business Parks, Inc. | 22 | 3 | ||||||||||
Public Storage | 73 | 15 | ||||||||||
Quality Care Properties, Inc. (a) | 256 | 4 | ||||||||||
Ramco-Gershenson Properties Trust | 112 | 2 | ||||||||||
Rayonier, Inc. | 163 | 5 | ||||||||||
Realty Income Corp. | 76 | 4 | ||||||||||
Regency Centers Corp. | 59 | 4 | ||||||||||
Retail Opportunity Investments Corp. | 73 | 1 | ||||||||||
Retail Properties of America, Inc. ‘A’ | 356 | 5 | ||||||||||
Ryman Hospitality Properties, Inc. | 37 | 3 | ||||||||||
Sabra Health Care REIT, Inc. | 82 | 2 | ||||||||||
SBA Communications Corp. (a) | 60 | 10 | ||||||||||
Select Income REIT | 82 | 2 | ||||||||||
Senior Housing Properties Trust | 332 | 6 | ||||||||||
Simon Property Group, Inc. | 206 | 35 | ||||||||||
SL Green Realty Corp. | 47 | 5 | ||||||||||
Spirit Realty Capital, Inc. | 655 | 6 | ||||||||||
SHARES | MARKET VALUE (000S) | |||||||||||
STAG Industrial, Inc. | 81 | $ | 2 | |||||||||
STORE Capital Corp. | 102 | 3 | ||||||||||
Sun Communities, Inc. | 62 | 6 | ||||||||||
Sunstone Hotel Investors, Inc. | 123 | 2 | ||||||||||
Tanger Factory Outlet Centers, Inc. | 127 | 3 | ||||||||||
Taubman Centers, Inc. | 56 | 4 | ||||||||||
UDR, Inc. | 264 | 10 | ||||||||||
Ventas, Inc. | 151 | 9 | ||||||||||
VEREIT, Inc. | 535 | 4 | ||||||||||
Vornado Realty Trust | 71 | 6 | ||||||||||
Washington Prime Group, Inc. | 637 | 5 | ||||||||||
Washington Real Estate Investment Trust | 68 | 2 | ||||||||||
Weingarten Realty Investors | 115 | 4 | ||||||||||
Welltower, Inc. | 171 | 11 | ||||||||||
WP Carey, Inc. | 118 | 8 | ||||||||||
Xenia Hotels & Resorts, Inc. | 234 | 5 | ||||||||||
|
| |||||||||||
616 | ||||||||||||
|
| |||||||||||
Total Real Estate Investment Trusts |
| 708 | ||||||||||
|
| |||||||||||
Total Investments in Securities (Cost $15,902) | 16,979 | |||||||||||
Total Investments 99.6% (Cost $15,902) | $ | 16,979 | ||||||||||
Other Assets and Liabilities, net 0.4% | 72 | |||||||||||
|
| |||||||||||
Net Assets 100.0% | $ | 17,051 | ||||||||||
|
|
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 December 31, 2017 in valuing the Fund’s assets and liabilities:
Category and Subcategory | Level 1 | Level 2 | Level 3 | Fair Value at 12/31/2017 | ||||||||||||
Investments in Securities, at Value |
| |||||||||||||||
Common Stocks | ||||||||||||||||
Bermuda | ||||||||||||||||
Financials | $ | 11 | $ | 0 | $ | 0 | $ | 11 | ||||||||
Ireland | ||||||||||||||||
Information Technology | 50 | 0 | 0 | 50 | ||||||||||||
Switzerland | ||||||||||||||||
Financials | 23 | 0 | 0 | 23 | ||||||||||||
United States | ||||||||||||||||
Consumer Discretionary | 2,895 | 0 | 0 | 2,895 | ||||||||||||
Consumer Staples | 2,145 | 0 | 0 | 2,145 | ||||||||||||
Energy | 892 | 0 | 0 | 892 | ||||||||||||
Financials | 1,547 | 0 | 0 | 1,547 | ||||||||||||
Health Care | 1,513 | 0 | 0 | 1,513 |
Category and Subcategory | Level 1 | Level 2 | Level 3 | Fair Value at 12/31/2017 | ||||||||||||
Industrials | $ | 2,218 | $ | 0 | $ | 0 | $ | 2,218 | ||||||||
Information Technology | 3,401 | 0 | 0 | 3,401 | ||||||||||||
Materials | 756 | 0 | 0 | 756 | ||||||||||||
Real Estate | 11 | 0 | 0 | 11 | ||||||||||||
Telecommunication Services | 465 | 0 | 0 | 465 | ||||||||||||
Utilities | 344 | 0 | 0 | 344 | ||||||||||||
Real Estate Investment Trusts | ||||||||||||||||
United States | ||||||||||||||||
Financials | 92 | 0 | 0 | 92 | ||||||||||||
Real Estate | 616 | 0 | 0 | 616 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Total Investments | $ | 16,979 | $ | 0 | $ | 0 | $ | 16,979 | ||||||||
|
|
|
|
|
|
|
|
There were no significant transfers among Levels 1, 2, or 3 during the period ended December 31, 2017.
46 | PIMCO EQUITY SERIES | See Accompanying Notes |
Table of Contents
December 31, 2017 (Unaudited)
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 funds (each a “Fund” and collectively the “Funds”) indicated on the cover of this report. Pacific Investment Management Company LLC (“PIMCO” or “Manager”) serves as the investment adviser for the Funds. PIMCO has engaged Parametric Portfolio Associates LLC (“Parametric” or “Sub-Adviser”) to serve as sub-adviser to each Fund.
Each Fund is an exchange-traded fund (“ETF”). ETFs are funds that trade like other publicly-traded securities and may be designed to track an index or to be actively managed. Unlike shares of a mutual fund, which can be bought from and redeemed by the issuing fund by all shareholders at a price based on net asset value (“NAV”), shares of a Fund may be directly purchased from and redeemed by a Fund at NAV solely by certain large institutional investors. Also unlike shares of a mutual fund, shares of each Fund are listed on a national securities exchange and trade in the secondary market at market prices that change throughout the day.
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 beyond a standard settlement period for the security after the trade date. Realized gains (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 a 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, with the exception of securities with a forward starting effective date, where interest income is recorded on the accrual basis from effective 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. Paydown gains (losses) on mortgage-related and other asset-backed securities, if any, are recorded as components of interest income on the Statements of Operations. Income or short-term capital gain distributions received from registered investment companies, if any, are recorded as dividend income. Long-term capital gain distributions received from registered investment companies, if any, 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 denominated in foreign currencies 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 gain (loss) and net change in unrealized appreciation (depreciation) 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. Realized foreign exchange gains (losses) arising from sales of spot foreign currencies, currency gains (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 (loss) on foreign currency transactions on the Statements of Operations. Net unrealized foreign exchange gains (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 (depreciation) on foreign currency assets and liabilities on the Statements of Operations.
(c) Distributions to Shareholders The following table shows the anticipated frequency of distributions from net investment income, if any, for each Fund.
SEMIANNUAL REPORT | DECEMBER 31, 2017 | 47 |
Table of Contents
Notes to Financial Statements (Cont.)
Distribution Frequency | ||||||||||||
Fund Name | Declared | Distributed | ||||||||||
PIMCO RAFI Dynamic Multi-Factor Emerging Markets Equity ETF | Quarterly | Quarterly | ||||||||||
PIMCO RAFI Dynamic Multi-Factor International Equity ETF | Quarterly | Quarterly | ||||||||||
PIMCO RAFI Dynamic Multi-Factor U.S. Equity ETF | Quarterly | Quarterly |
Net realized capital gains earned by each Fund, if any, will be distributed no less frequently than once each year. The Trust does not provide an automatic dividend and/or distributions reinvestment service.
Income distributions 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. Further, the character of investment income and capital gains may be different for certain transactions under the two methods of accounting. As a result, income distributions 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.
If a Fund estimates that a portion of one of its dividend distributions may be comprised of amounts from sources other than net investment income in accordance with its policies and good accounting practices, the Fund will notify shareholders of record of the estimated composition of such distribution through a Section 19 Notice. For these purposes, a Fund estimates the source or sources from which a distribution is paid, to the close of the period as of which it is paid, in reference to its internal accounting records and related accounting practices. If, based on such accounting records and practices, it is estimated that a particular distribution does not include capital gains or paid-in surplus or other capital sources, a Section 19 Notice generally would not be issued. It is important to note that differences exist between a Fund’s daily internal accounting records and practices, a Fund’s financial statements presented in accordance with U.S. GAAP, and recordkeeping practices under income tax regulations. For instance, a Fund’s internal accounting records and practices may take into account, among other factors, tax-related characteristics of certain sources of distributions that differ from treatment under U.S. GAAP. Examples of such differences may include, among others, the treatment of paydowns on mortgage-backed securities purchased at a discount and periodic payments under interest rate swap contracts. Accordingly, among other consequences, it is possible that a Fund may not issue a Section 19 Notice in situations where the Fund’s financial statements prepared later and in accordance with U.S. GAAP and/or the final tax character of those distributions might later report that the sources of those distributions included capital gains and/or a return of capital. Please visit www.pimco.com for the most recent Section 19 Notice, if applicable, for additional information regarding the estimated
composition of distributions. Final determination of a distribution’s tax character will be reported on Form 1099 DIV sent to shareholders for the calendar year.
Distributions classified as a tax basis return of capital, if any, are reflected on the 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 gain (loss) and/or paid in capital to more appropriately conform U.S. GAAP to tax characterizations of distributions.
(d) New Accounting Pronouncements In March 2016, the Financial Accounting Standards Board (“FASB”) issued an Accounting Standards Update (“ASU”), ASU 2016-05, which provides guidance related to the impact of derivative contract novations on certain relationships under Accounting Standards Codification (“ASC”) 815. The ASU is effective for annual periods beginning after December 15, 2016, and interim periods within those annual periods. The Funds have adopted the ASU. The implementation of the ASU did not have an impact on the Funds’ financial statements.
In August 2016, the FASB issued ASU 2016-15 which amends ASC 230 to clarify guidance on the classification of certain cash receipts and cash payments in the Statement of Cash Flows. The ASU is effective for annual periods beginning after December 15, 2017, and interim periods within those annual periods. At this time, management is evaluating the implications of these changes on the financial statements.
In October 2016, the U.S. Securities and Exchange Commission (“SEC”) adopted new rules and forms, and amendments to certain current rules and forms, to modernize reporting and disclosure of information by registered investment companies. The amendments to Regulation S-X require standardized, enhanced disclosure about derivatives in investment company financial statements, and also change the rules governing the form and content of such financial statements. The compliance date for these amendments was August 1, 2017. Compliance is based on reporting period-end date. Management has adopted these amendments and the changes are incorporated in the financial statements.
In November 2016, the FASB issued ASU 2016-18 which amends ASC 230 to provide guidance on the classification and presentation of changes in restricted cash and restricted cash equivalents on the Statement of Cash Flows. The ASU is effective for annual periods beginning after December 15, 2017, and interim periods within those annual periods. At this time, management is evaluating the implications of these changes on the financial statements.
48 | PIMCO EQUITY SERIES |
Table of Contents
December 31, 2017 (Unaudited)
In March 2017, the FASB issued ASU 2017-08 which provides guidance related to the amortization period for certain purchased callable debt securities held at a premium. The ASU is effective for annual periods beginning after December 15, 2018, and interim periods within those annual periods. The Funds have adopted the ASU. The implementation of the ASU did not have an impact on the Funds’ financial statements.
3. INVESTMENT VALUATION AND FAIR VALUE MEASUREMENTS
(a) Investment Valuation Policies The NAV of the Fund’s shares is determined by dividing the total value of the Fund’s portfolio investments and other assets, less any liabilities attributable to that Fund, by the total number of shares outstanding.
On each day that the NYSE Arca is open, Fund shares are ordinarily valued as of the close of regular trading (“NYSE Close”). 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 as of which its respective NAV is calculated if the Fund closes earlier, or as permitted by the SEC.
For purposes of calculating a 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. If market value pricing is used, 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. A Fund’s investments in open-end management investment companies, other than exchange-traded funds (“ETFs”), are valued at the NAVs of such investments. Open-end management investment companies may include affiliated funds.
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 of the Trust (the “Board”). 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, a 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, a 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 foreign (non-U.S.) securities. For these purposes, any movement in the applicable reference index or instrument (“zero trigger”) between the earlier close of the applicable foreign market and the NYSE Close may be deemed to be a significant event, prompting the application of the pricing model (effectively resulting in daily fair valuations). Foreign 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 shareholders 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.
SEMIANNUAL REPORT | DECEMBER 31, 2017 | 49 |
Table of Contents
Notes to Financial Statements (Cont.)
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 value of such investments and, in turn, 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 investments 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.) investments, the value of those investments may change at times when shareholders are unable to buy or sell shares and the value of such investments will be reflected in the Fund’s next calculated NAV.
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 or persons acting at their direction. The Board has adopted methods for valuing securities and other assets in circumstances where market quotes are not readily available, and has delegated to the Manager 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 (“Valuation Oversight Committee”), generally based on recommendations provided by the Manager. The Manager may consult with the Sub-Adviser 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, indicative market quotations (“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 a 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 the Manager the responsibility for monitoring significant events that may materially affect the values of a 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 a Fund uses fair valuation to determine the value of a portfolio security or other asset for purposes of calculating its NAV, such investments 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 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 a 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 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 a 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 each Fund’s prospectus.
(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:
∎ | Level 1 — Quoted prices in active markets or exchanges for identical assets and liabilities. |
∎ | 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. |
∎ | 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 into 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 realized gain (loss), unrealized appreciation (depreciation), purchases and sales, accrued discounts (premiums), and transfers into and out of the Level 3 category during the period. The end of period value is used for the transfers between Levels of a Fund’s assets and liabilities. Additionally,
50 | PIMCO EQUITY SERIES |
Table of Contents
December 31, 2017 (Unaudited)
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 and liabilities 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 Services that use broker-dealer quotations, reported trades or valuation estimates from their internal pricing models. The Pricing Services’ internal models use inputs that are observable such as issuer details, interest rates, yield curves, prepayment speeds, credit risks/spreads, default rates and quoted 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 Services 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, ETFs, exchange-traded notes and financial derivative instruments, such as futures contracts, rights and warrants, 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.
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 Services 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.
Investments in registered open-end investment companies (other than ETFs) 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.
Equity exchange-traded options and over the counter financial derivative instruments, such as forward foreign currency contracts and options contracts derive their value from underlying asset prices, indices, reference rates, and other inputs or a combination of these factors. These contracts are normally valued on the basis of quotes obtained from a quotation reporting system, established market makers or Pricing Services (normally determined as of the NYSE Close). Depending on the product and the terms of the transaction, financial derivative instruments can be valued by Pricing Services 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 and over the counter swaps derive their value from underlying asset prices, indices, reference rates, and other inputs or a combination of these factors. They are valued using a broker-dealer bid quotation or on market-based prices provided by Pricing Services (normally determined as of the NYSE close). Centrally cleared swaps and over the counter swaps can be valued by Pricing Services
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using a series of techniques, including simulation pricing models. The pricing models may use inputs that are observed from actively quoted markets such as the overnight index swap rate (“OIS”), London Interbank Offered Rate (“LIBOR”) forward rate, interest rates, yield curves and credit spreads. These securities 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 the Manager that uses significant unobservable inputs, investments 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.
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 instruments is approximately the same as the fair value of the instrument as determined without the use of amortized cost valuation. These securities are categorized as Level 2 or Level 3 of the fair value hierarchy depending on the source of the base price.
4. SECURITIES AND OTHER INVESTMENTS
(a) Investments in Securities
The Funds may utilize the investments and strategies described below to the extent permitted by each Fund’s respective investment policies.
Equity-Linked Securities are privately issued securities that have a return component based on the performance of a single stock, a basket of stocks, or a stock index. Equity-linked securities are often used for many of the same purposes as, and share many of the same risks with derivative instruments.
Real Estate Investment Trusts (“REITs”) are pooled investment vehicles that own, and typically operate, income-producing real estate. If a REIT meets certain requirements, including distributing to shareholders substantially all of its taxable income (other than net capital gains), then it is not taxed on the income distributed to shareholders. Distributions received from REITs may be characterized as income, capital gain or a return of capital. A return of capital is recorded by a Fund as a reduction to the cost basis of its investment in the REIT. REITs are subject to management fees and other expenses, and so the Funds that invest in REITs will bear their proportionate share of the costs of the REITs’ operations.
Restricted Investments are subject to legal or contractual restrictions on resale and may generally be sold privately, but may be required to be registered or exempted from such registration before being sold to the public. Private placement securities are generally considered to be restricted except for those securities traded between qualified
institutional investors under the provisions of Rule 144A of the Securities Act of 1933. Disposal of restricted investments may involve time-consuming negotiations and expenses, and prompt sale at an acceptable price may be difficult to achieve. Restricted investments held by the Funds at December 31, 2017 are disclosed in the Notes to Schedules of Investments.
Warrants are securities that are usually issued together with a debt security or preferred security and that give the holder the right to buy a proportionate amount of common stock at a specified price. Warrants are freely transferable and are often traded on major exchanges. Warrants normally have a life that is measured in years and entitle the holder to buy common stock of a company at a price that is usually higher than the market price at the time the warrant is issued. Warrants may entail greater risks than certain other types of investments. Generally, warrants do not carry the right to receive dividends or exercise voting rights with respect to the underlying securities, and they do not represent any rights in the assets of the issuer. In addition, their value does not necessarily change with the value of the underlying securities, and they cease to have value if they are not exercised on or before their expiration date. If the market price of the underlying stock does not exceed the exercise price during the life of the warrant, the warrant will expire worthless. Warrants may increase the potential profit or loss to be realized from the investment as compared with investing the same amount in the underlying securities. Similarly, the percentage increase or decrease in the value of an equity security warrant may be greater than the percentage increase or decrease in the value of the underlying common stock. Warrants may relate to the purchase of equity or debt securities. Debt obligations with warrants attached to purchase equity securities have many characteristics of convertible securities and their prices may, to some degree, reflect the performance of the underlying stock. Debt obligations also may be issued with warrants attached to purchase additional debt securities at the same coupon rate. A decline in interest rates would permit a Fund to sell such warrants at a profit. If interest rates rise, these warrants would generally expire with no value.
5. FINANCIAL DERIVATIVE INSTRUMENTS
The Funds may enter into the financial derivative instruments described below to the extent permitted by each Fund’s respective investment policies.
The following disclosures contain information on how and why the Funds use financial derivative instruments, and how financial derivative instruments affect the Funds’ financial position, results of operations and cash flows. The location and fair value amounts of these instruments on the Statements of Assets and Liabilities and the net realized gain (loss) and net change in unrealized appreciation (depreciation) on the Statements of Operations, each categorized by
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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 net realized gain (loss) and net change in unrealized appreciation (depreciation) 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 may be engaged, 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 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 (loss). Realized gains (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 (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.
6. PRINCIPAL RISKS
The principal risks of investing in a Fund, which could adversely affect its net asset value, yield and total return, are listed below.
PIMCO RAFI | PIMCO RAFI Dynamic Multi-Factor International Equity ETF | PIMCO RAFI Dynamic Multi-Factor U.S. Equity ETF | ||||||||||||||
Risks | ||||||||||||||||
New/Small Fund | X | X | X | |||||||||||||
Market Trading | X | X | X | |||||||||||||
Equity | X | X | X | |||||||||||||
Credit | X | X | X | |||||||||||||
Market | X | X | X | |||||||||||||
Liquidity | X | X | X | |||||||||||||
Issuer | X | X | X | |||||||||||||
Derivatives | X | X | X | |||||||||||||
Foreign (Non-U.S.) Investment | X | X | ||||||||||||||
Emerging Markets | X | |||||||||||||||
Currency | X | X | ||||||||||||||
Model | X | X | X | |||||||||||||
Leveraging | X | X | X | |||||||||||||
Management and Tracking Error | X | X | X | |||||||||||||
Indexing | X | X | X |
Please see “Description of Principal Risks” in a Fund’s prospectus for a more detailed description of the risks of investing in a Fund.
New/Small Fund Risk is the risk that a new or smaller Fund’s performance may not represent how a Fund is expected to or may perform in the long term. In addition, new Funds have limited operating histories for investors to evaluate and new and smaller Funds may not attract sufficient assets to achieve investment and trading efficiencies.
Market Trading Risk is the risk that an active secondary trading market for Fund shares does not continue once developed, that a Fund may not continue to meet a listing exchange’s trading or listing requirements, or that Fund shares trade at prices other than a Fund’s net asset value.
Equity Risk is the risk that the value of equity securities, such as common stocks and preferred securities, may decline due to general market conditions which are not specifically related to a particular company or to factors affecting a particular industry or industries. Equity securities generally have greater price volatility than fixed income securities.
Credit Risk is the risk that a Fund could lose money if the counterparty to a derivative contract is unable or unwilling to meet its financial obligations.
Market Risk is the risk that the value of securities owned by a Fund may go up or down, sometimes rapidly or unpredictably, due to factors affecting securities markets generally or particular industries.
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Liquidity Risk is the risk that a particular investment may be difficult to purchase or sell and that a Fund may be unable to sell illiquid securities at an advantageous time or price or achieve its desired level of exposure to a certain sector. The liquidity of a Fund’s shares may be constrained by the liquidity of a Fund’s portfolio holdings.
Issuer Risk is the risk that the value of a security may decline for a reason directly related to the issuer, such as management performance, financial leverage and reduced demand for the issuer’s goods or services.
Derivatives Risk is the risk of investing in derivative instruments (such as futures, swaps and structured securities), including leverage, liquidity, interest rate, market, credit and management risks, mispricing or valuation complexity. Changes in the value of the derivative may not correlate perfectly with, and may be more sensitive to market events than, the underlying asset, rate or index, and a Fund could lose more than the initial amount invested. A Fund’s use of derivatives may result in losses to a Fund, a reduction in a Fund’s returns and/or increased volatility. Over-the-counter (“OTC”) derivatives are also subject to the risk that a counterparty to the transaction will not fulfill its contractual obligations to the other party, as many of the protections afforded to centrally-cleared derivative transactions might not be available for OTC derivatives. For derivatives traded on an exchange or through a central counterparty, credit risk resides with a Fund’s clearing broker, or the clearinghouse itself, rather than with a counterparty in an OTC derivative transaction. Changes in regulation relating to a fund’s use of derivatives and related instruments could potentially limit or impact a Fund’s ability to invest in derivatives, limit a Fund’s ability to employ certain strategies that use derivatives and/ or adversely affect the value of derivatives and a Fund’s performance.
Foreign (Non-U.S.) Investment Risk is the risk that investing in foreign (non-U.S.) securities may result in a Fund experiencing more rapid and extreme changes in value than a fund that invests exclusively in securities of U.S. companies, due to smaller markets, differing reporting, accounting and auditing standards, increased risk of delayed settlement of portfolio transactions or loss of certificates of portfolio securities, and the risk of unfavorable foreign government actions, including nationalization, expropriation or confiscatory taxation, currency blockage, or political changes or diplomatic developments. Foreign securities may also be less liquid and more difficult to value than securities of U.S. issuers.
Emerging Markets Risk is the risk of investing in emerging market securities, primarily increased foreign (non-U.S.) investment risk.
Currency Risk is the risk that foreign (non-U.S.) currencies will change in value relative to the U.S. dollar and affect a Fund’s investments in foreign (non-U.S.) currencies or in securities that trade in, and receive revenues in, or in derivatives that provide exposure to, foreign (non-U.S.) currencies.
Model Risk is the risk that a Fund’s investment models used in making investment allocation decisions, including the indexation methodologies used in constructing the Underlying Index, may not adequately take into account certain factors and may result in a decline in the value of an investment in a Fund.
Leveraging Risk is the risk that certain transactions of a Fund, such as reverse repurchase agreements, loans of portfolio securities, and the use of when-issued, delayed delivery or forward commitment transactions, or derivative instruments, may give rise to leverage, magnifying gains and losses and causing a Fund to be more volatile than if it had not been leveraged. This means that leverage entails a heightened risk of loss.
Management and Tracking Error Risk is the risk that the portfolio manager’s investment decisions may not produce the desired results or that a Fund’s portfolio may not closely track the Underlying Index for a number of reasons. A Fund incurs operating expenses, which are not applicable to the Underlying Index, and the costs of buying and selling securities, especially when rebalancing a Fund’s portfolio to reflect changes in the composition of the Underlying Index. Performance of a Fund and the Underlying Index may vary due to asset valuation differences and differences between a Fund’s portfolio and the Underlying Index due to legal restrictions, cost or liquidity restraints. The risk that performance of a Fund and the Underlying Index may vary may be heightened during periods of increased market volatility or other unusual market conditions. In addition, a Fund’s use of a representative sampling approach may cause a Fund to be less correlated to the return of the Underlying Index than if a Fund held all of the securities in the Underlying Index.
Indexing Risk is the risk that a Fund is negatively affected by general declines in the asset classes represented by the Underlying Index.
7. MASTER NETTING ARRANGEMENTS
A Fund may be subject to various netting arrangements (“Master Agreements”) with select counterparties. 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 present derivative assets and liabilities on a gross basis, which reflects the full risks and exposures prior to netting.
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Master Agreements can also help limit counterparty risk by specifying collateral posting arrangements at pre-arranged exposure levels. Under most 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 depending on the terms outlined in the applicable Master Agreement. 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 with counterparty. 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 from counterparty. 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 Schedules of Investments.
Master Securities Forward Transaction Agreements (“Master Forward Agreements”) govern certain forward settling transactions, such as TBA 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, transaction 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 Schedules of Investments.
Customer Account Agreements and related addenda govern cleared derivatives transactions such as futures, options on futures, and cleared OTC derivatives. Such transactions require posting of initial margin as determined by each relevant clearing agency which is segregated in an account at a futures commission merchant (“FCM”) registered with the Commodity Futures Trading Commission (“CFTC”). In the United States, counterparty risk may be reduced as creditors of an FCM cannot have a claim to Fund assets in the segregated account. Portability of
exposure 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 unless the parties have agreed to a separate arrangement in respect of portfolio margining. The market value or accumulated unrealized appreciation (depreciation), initial margin posted, and any unsettled variation margin as of period end are disclosed in the Notes to Schedules of Investments.
International Swaps and Derivatives Association, Inc. Master Agreements and Credit Support Annexes (“ISDA Master Agreements”) govern bilateral OTC derivative transactions entered into by a Fund with select counterparties. ISDA Master Agreements maintain provisions for general obligations, representations, agreements, collateral posting 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 Schedules of Investments.
8. FEES AND EXPENSES
(a) Management Fee PIMCO, a majority-owned subsidiary of Allianz Asset Management of America L.P. (“Allianz Asset Management”), serves as the Manager to the Trust, pursuant to an investment management agreement. Each Fund pays PIMCO fees in return for providing investment advisory, supervisory and administrative services under an all-in fee structure. Each Fund will pay monthly management fees to PIMCO at an annual rate based on average daily net assets (the “Management Fee”), at an annual rate as noted in the table below.
Fund Name | Management Fee | |||||||
PIMCO RAFI Dynamic Multi-Factor Emerging Markets Equity ETF | 0.49% | |||||||
PIMCO RAFI Dynamic Multi-Factor International Equity ETF | 0.39% | |||||||
PIMCO RAFI Dynamic Multi-Factor U.S. Equity ETF | 0.29% |
(b) Distribution and Servicing Fees PIMCO Investments LLC, a wholly-owned subsidiary of PIMCO, serves as the distributor (“Distributor”) of each Fund’s Creation Units. The Distributor does not maintain a secondary market in shares of the Funds. During the period ended December 31, 2017 each Fund was permitted to compensate the Distributor at an annual rate of up to 0.25% of a Fund’s average daily net assets (the “12b-1 Plan Fee”). However, the Board of Trustees has determined not to authorize payment of a 12b-1 Plan Fee at this time.
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The 12b-1 Plan Fee may only be imposed or increased when the Board determines that it is in the best interests of shareholders to do so. Because these fees are paid out of a Fund’s assets on an ongoing basis, to the extent that a fee is authorized, over time it will increase the cost of an investment in the Fund. The 12b-1 Plan Fee may cost an investor more than other types of sales charges.
(c) 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 Funds bear other expenses which are not covered under the Management Fee which may vary and affect the total level of expenses paid by shareholders, such as (i) taxes and governmental fees; (ii) brokerage fees and commissions and other portfolio transaction expenses; (iii) costs of borrowing money, including interest expense; (iv) securities lending fees and expenses; (v) fees and expenses of the Trustees who are not “interested persons” of PIMCO or the Trust, and any counsel retained exclusively for their benefit; (vi) extraordinary expense, including costs of litigation and indemnification expenses; and (vii) organizational expenses. The ratio of expenses to average net assets, as disclosed on the Financial Highlights, may differ from the annual fund operating expenses as disclosed in the Prospectus.
Each Trustee, other than those affiliated with PIMCO or its affiliates, 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 and $750 for each Board meeting attended telephonically, 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, so that each co-lead individually receives an additional retainer of $1,000) 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 Manager, all of whom receive remuneration for their services to the Trust from the Manager or its affiliates.
(d) Expense Limitation Pursuant to the Expense Limitation Agreement, PIMCO has agreed to waive a portion of the Funds’ Management Fee, or reimburse each Fund, to the extent that each Fund’s organizational expenses and pro rata share of Trustee Fees exceed 0.0049%, the “Expense Limit” (calculated as a percentage of the Fund’s average
daily net assets attributable to each class). The Expense 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.
Under certain conditions, PIMCO may be reimbursed for these waived amounts in future periods, not to exceed thirty-six months after the waiver. At December 31, 2017, there were no recoverable amounts.
9. RELATED PARTY TRANSACTIONS
The Manager and Distributor are related parties. Fees paid to these parties are disclosed in Note 8, Fees and Expenses, 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. 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, or an affiliate of 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 under the Act. Further, as defined under the procedures, each transaction is effected at the current market price.
10. 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.
11. 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 may involve correspondingly greater transaction costs 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
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(which are generally taxed at ordinary income tax rates). The transaction 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 December 31, 2017, were as follows (amounts in thousands†):
U.S. Government/Agency | All Other | |||||||||||||||||||
Fund Name | Purchases | Sales | Purchases | Sales | ||||||||||||||||
PIMCO RAFI Dynamic Multi-Factor Emerging Markets Equity ETF | $ | 0 | $ | 0 | $ | 81,643 | $ | 17,543 | ||||||||||||
PIMCO RAFI Dynamic Multi-Factor International Equity ETF | 0 | 0 | 8,344 | 5,382 | ||||||||||||||||
PIMCO RAFI Dynamic Multi-Factor U.S. Equity ETF | 0 | 0 | 6,956 | 4,124 |
† | A zero balance may reflect actual amounts rounding to less than one thousand. |
12. CAPITAL SHARE TRANSACTIONS
Capital shares are issued and redeemed by a Fund only in Creation Units. Except when aggregated in Creation Units, shares of a Fund are not redeemable. Transactions in capital shares for a Fund are disclosed in detail on the Statements of Changes in Net Assets.
The consideration for the purchase of Creation Units of a Fund generally consists of a basket of cash and/or securities that the Fund specifies each business day. Authorized Participants may be charged transaction fees as set forth below. To offset transfer and other transaction costs associated with the issuance and redemption of Creation Units, Authorized Participants are subject to standard creation and redemption transaction fees payable directly to State Street Bank and Trust Company, the sub-administrator of the Funds. PIMCO may, from time to time, at its own expense, compensate purchasers of Creation Units who have purchased substantial amounts of Creation Units and other financial institutions for administrative or marketing services. Creations and redemptions for cash (when cash creations and redemptions are available or specified) may be subject to an additional variable charge up to the maximum amount shown in the table below.
Fund Name | Standard Creation/ | Maximum Variable Charge for Cash Creations** | Maximum Variable Charge for Cash Redemptions** | |||||||||||||
PIMCO RAFI Dynamic Multi-Factor Emerging Markets Equity ETF | $ | 2,250 | 3.00% | 2.00% | ||||||||||||
PIMCO RAFI Dynamic Multi-Factor International Equity ETF | $ | 5,000 | 3.00% | 2.00% | ||||||||||||
PIMCO RAFI Dynamic Multi-Factor U.S. Equity ETF | $ | 2,250 | 3.00% | 2.00% |
* | Applicable to in-kind contributions or redemptions only. |
** | As a percentage of the cash amount invested or received. |
13. REGULATORY AND LITIGATION MATTERS
The Funds are not named as defendants in any material litigation or arbitration proceedings and are not aware of any material litigation or claim pending or threatened against them.
The foregoing speaks only as of the date of this report.
14. 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.
A Fund 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 Manager has reviewed the Funds’ tax positions for all open tax years. As of December 31, 2017, 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. federal, state, and local tax returns as required. The Funds’ tax returns are subject to examination by relevant tax authorities until expiration of the applicable statute of limitations, which is generally three years after the filing of the tax return but which
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December 31, 2017 (Unaudited)
can be extended to six years in certain circumstances. Tax returns for open years have incorporated no uncertain tax positions that require a provision for income taxes.
Under the Regulated Investment Company Modernization 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 December 31, 2017, 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)(1) | |||||||||||||||||
PIMCO RAFI Dynamic Multi-Factor Emerging Markets Equity ETF | $ | 103,149 | $ | 4,404 | $ | (1,185 | ) | $ | 3,219 | |||||||||||
PIMCO RAFI Dynamic Multi-Factor International Equity ETF | 23,245 | 1,424 | (311 | ) | 1,113 | |||||||||||||||
PIMCO RAFI Dynamic Multi-Factor U.S. Equity ETF | 15,905 | 1,253 | (179 | ) | 1,074 |
(1) | Primary differences, if any, between book and tax net unrealized appreciation (depreciation) are attributable to wash sale loss deferrals for Federal income tax purposes. |
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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 | REIT | Real Estate Investment Trust | SP - GDR | Sponsored Global Depositary Receipt | |||||
GDR | Global Depositary Receipt | SP - ADR | Sponsored American Depositary Receipt | TBA | To-Be-Announced | |||||
NVDR | Non-Voting Depositary Receipt |
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Approval of Investment Advisory Contract and Other Agreements
Approval of the Investment Management Agreement and Sub-Advisory Agreement for PIMCO RAFI Dynamic Multi-Factor U.S. Equity ETF, PIMCO RAFI Dynamic Multi-Factor International Equity ETF, and PIMCO RAFI Dynamic Multi-Factor Emerging Markets Equity ETF
At a meeting held on May 17, 2017, the Board of Trustees (the “Board”) of PIMCO Equity Series (the “Trust”), including the Trustees who are not “interested persons” of the Trust under the Investment Company Act of 1940, as amended (the “Independent Trustees”), considered and unanimously approved the Investment Management Agreement (the “New Funds’ Management Agreement”) between the Trust, on behalf of PIMCO RAFI Dynamic Multi-Factor International Equity ETF and PIMCO RAFI Dynamic Multi-Factor Emerging Markets Equity ETF (each a “New Fund” and collectively, the “New Funds”), and Pacific Investment Management Company LLC (“PIMCO”) for an initial two-year term. In addition, the Board considered and unanimously approved the Sub-Advisory Agreement (the “New Funds’ Sub-Advisory Agreement” and together with the New Funds’ Management Agreement, the “New Funds’ Agreements”) between PIMCO, on behalf of the New Funds, each a series of the Trust, and Parametric Portfolio Associates LLC (“Parametric”) for an initial two-year period.
The information, material factors and conclusions that formed the basis for the Board’s approvals are summarized below.
1. INFORMATION RECEIVED
(a) Materials Reviewed: The Trustees received a wide variety of materials relating to the services to be provided by PIMCO and Parametric, both in connection with the approval of the New Funds’ Agreements and with respect to services provided to existing series of the Trust. The Board reviewed information relating to the proposed New Funds’ operations, including shareholder services, valuation, distribution, custody, the New Funds’ compliance program and other information relating to the nature, extent and quality of services proposed to be provided by PIMCO. In considering whether to approve the New Funds’ Agreements, the Board reviewed materials provided by PIMCO, which included, among other things, comparative industry data with regard to advisory fees and expense ratios of funds with investment objectives and policies similar to those of the New Funds. In addition, the Board reviewed materials provided by counsel to the Trust and the Independent Trustees, which included, among other things, memoranda outlining legal duties of the Board in considering the approval of the New Funds’ Agreements. The Board also reviewed information about the personnel who would be providing investment management services, other advisory services and supervisory and administrative services to the New Funds.
(b) Review Process: In connection with the approval of the New Funds’ Agreements, the Board reviewed written materials prepared by PIMCO, which included, among other things, comparative fee data for funds in the appropriate Broadridge Financial Solutions, Inc. (“Lipper”) peer group. The Board also requested and received assistance and advice regarding, among other things, applicable legal standards from counsel to the Trust and the Independent Trustees. The Board heard oral presentations on matters related to the New Funds’ Agreements at the May 17, 2017 meeting. The approval determinations were made on the basis of each Trustee’s business judgment after consideration and evaluation 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 New Funds’ Agreements, the Board did not identify any single factor or particular information that, in isolation, was controlling. The discussion below is intended to summarize the broad factors and information that figured prominently in the Board’s consideration of the approval of the New Funds’ Agreements, but is not intended to summarize all of the factors considered by the Board.
2. NATURE, EXTENT AND QUALITY OF SERVICES
(a) PIMCO, Parametric, their Personnel and Resources: The Board considered the depth and quality of PIMCO’s investment management process, including: the experience, capability and integrity of its senior management and other personnel; the overall financial strength and stability of its organization; and the ability of its organizational structure to address changes in the New Funds’ asset levels. The Board also considered the various services in addition to portfolio management that PIMCO proposes to provide under the New Funds’ Management Agreement. The Board noted that PIMCO makes available to its investment professionals a variety of resources and systems relating to investment management, compliance, trading, performance and portfolio accounting. The Board also noted PIMCO’s commitment to investing in information technology and infrastructure supporting investment, compliance and risk management, as well as PIMCO’s continuing efforts to attract, retain and promote qualified personnel, including personnel with relevant equities experience, and to maintain and enhance its resources and systems. The Board considered PIMCO’s policies, procedures and systems reasonably designed to assure compliance with applicable laws and regulations and its commitment to further developing and strengthening these programs, its oversight of matters that may involve conflicts of interest between the New Funds’ investments and those of other accounts managed by PIMCO, and its efforts to keep the Trustees informed about matters relevant to the New Funds and their shareholders.
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In addition, the Board considered the sub-advisory services proposed to be provided by Parametric to the New Funds. The Board also considered information about Parametric’s investment personnel responsible for providing services under the New Funds’ Sub-Advisory Agreement and Parametric’s existing operational connectivity and replication capabilities. The Board further considered the difference between the sub-advisory services that Parametric is proposed to provide to the New Funds and the portfolio implementation services that Parametric performs for certain other series of the Trust.
Ultimately, the Board further concluded that the nature, extent and quality of services proposed to be provided or procured by PIMCO under the New Funds’ Management Agreement and provided by Parametric under the New Funds’ Sub-Advisory Agreement are likely to benefit the New Funds and their shareholders.
(b) Other Services: The Board also considered the nature, extent and quality of supervisory and administrative services to be provided by PIMCO to the New Funds under the New Funds’ Management Agreement. The Board considered the terms of the New Funds’ Management Agreement, under which the Trust pays for the supervisory and administrative services provided pursuant to that agreement under what is essentially an all-in fee structure (the “unified fee”). In return, PIMCO would provide or procure certain supervisory and administrative services and bears 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 supervisory and administrative 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 available in the market.
Ultimately, the Board concluded that the nature, extent and quality of services to be provided or procured 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 New Funds’ Agreements were considered, the Trustees did not receive or consider investment performance information.
4. MANAGEMENT FEE AND TOTAL EXPENSES
The Board considered that PIMCO seeks to price funds to scale at the outset with reference to the total expense ratios of the respective Lipper median, if available, while providing a fee premium for innovative investment offerings. PIMCO reported to the Board that, in proposing fees for the New Funds, it considers a number of factors, including, but not limited to, 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.
The Board considered the uniqueness of the proposed fee structure within the Trust, considering comparable fee structures used by other PIMCO-advised exchange-traded funds. The Board reviewed the proposed management 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 expenses of other similar funds. With respect to the management fee of each New Fund, 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. PIMCO reported to the Board that the proposed fees for each of the New Funds were competitive with both multi-factor and other exchange-traded funds following RAFI indices, while still reflecting a premium for innovation. The Board also noted that the management fees and total expenses for each of the New Funds compared favorably to the Lipper medians and Lipper averages for comparable funds.
The Board noted that the New Funds would be covered by an Expense Limitation Agreement that is designed to cap organizational expenses and trustee fees.
Based on information presented by PIMCO, Parametric and Lipper, members of the Board determined, in the exercise of their business judgment, that the management fee to be charged by PIMCO under the New Funds’ Agreements, as well as the total expenses of each New Fund, are reasonable.
5. ADVISER COSTS, LEVEL OF PROFITS AND ECONOMIES OF SCALE
As the New Funds had not yet commenced operations at the time the New Funds’ Agreements were considered, 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 Trustees considered that the unified fee provides inherent economies of scale because the New Funds maintain competitive fixed unified fees over the contract term even if the particular New Fund’s assets decline and/or operating costs rise. The Trustees further considered that, in contrast, breakpoints may be 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 Trustees also considered that, unlike the New Funds’ unified fee structure, funds with “pass through” administrative fee structures may experience increased
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Approval of Investment Advisory Contract and Other Agreements (Cont.)
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expense ratios when fixed dollar fees are charged against declining fund assets. The Trustees also considered that the unified fee protects shareholders from a rise in operating costs that may result from, among other things, PIMCO’s investments in various business enhancements and infrastructure, including those referenced above. The Trustees noted that PIMCO’s investments in these areas are extensive.
The Board concluded that the New Funds’ proposed cost structures were reasonable and that PIMCO is appropriately sharing economies of scale, if any, through the New Funds’ unified fee structure, by generally pricing the New Funds to scale at inception and reinvesting in its business to provide enhanced and expanded services to the New Funds and their respective shareholders.
6. ANCILLARY BENEFITS
The Board considered other benefits realized by PIMCO and its affiliates as a result of PIMCO’s relationship with the Trust. Such benefits may include possible ancillary benefits to PIMCO’s institutional investment management business due to the reputation and market penetration of the Trust or third party service providers’ relationship-level fee concessions, which decrease fees paid by PIMCO. 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 their review, including their comprehensive consideration and evaluation of each of the broad factors and information summarized above, the Independent Trustees and the Board as a whole concluded that the nature, extent and quality of the services to be rendered to the New Funds by PIMCO and Parametric supported the approval of New Funds’ Agreement. The Independent Trustees and the Board as a whole concluded that the New Funds’ Agreements were fair and reasonable to the New Funds and their respective shareholders and that the approval of the New Funds’ Agreements was in the best interest of the New Funds and their respective shareholders.
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General Information
Investment Adviser and Administrator
Pacific Investment Management Company LLC
650 Newport Center Drive
Newport Beach, CA 92660
Investment Sub-Adviser
Parametric Portfolio Associates
1918 Eighth Avenue, Suite 3100
Seattle, WA 98101
Distributor
PIMCO Investments LLC
1633 Broadway
New York, NY 10019
Custodian
State Street Bank and Trust Company
801 Pennsylvania
Kansas City, MO 64105
Transfer Agent
State Street Bank and Trust Company
1 Heritage Drive
Quincy, MA 02171
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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PES4004SAR_123117
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Item 2. | Code of Ethics. |
The information required by this Item 2 is only required in an annual report on this Form N-CSR.
Item 3. | Audit Committee Financial Expert. |
The information required by this Item 3 is only required in an annual report on this Form N-CSR.
Item 4. | Principal Accountant Fees and Services. |
The information required by this Item 4 is only required in an annual report on this Form N-CSR.
Item 5. | Audit Committee of Listed Registrants. |
The information required by this Item 5 is only required in an annual report on this Form N-CSR.
Item 6. | Schedule of Investments. |
The information required by this Item 6 is included as part of the semiannual reports to shareholders filed under Item 1 of this Form N-CSR.
Item 7. | Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies. |
Not applicable.
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. |
There have been no material changes to the procedures by which shareholders may recommend nominees to the Trust’s Board of Trustees since the Trust last provided disclosure in response to this item.
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 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 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. | Disclosure of Securities Lending Activities for Closed-End Management Investment Companies. |
Not applicable.
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Item 13. | Exhibits. |
(a)(1) Exhibit 99.CODE—Code of Ethics is not applicable for semiannual reports.
(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: | February 28, 2018 |
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: | February 28, 2018 | |
By: | /s/ Trent W. Walker
| |
Trent W. Walker Treasurer (Principal Financial & Accounting Officer) | ||
Date: | February 28, 2018 |