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)
Bijal Parikh
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, 2020
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.
| Item 1. | Reports to Shareholders. |
The following is a copy of the report transmitted to shareholders pursuant to Rule 30e-1 under the Investment Company Act of 1940, as amended (the “Act”) (17 CFR 270.30e-1).
| | • | | PIMCO Equity Series Funds |
| | • | | PIMCO Equity Series RAE 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 |
| | • | | PIMCO RAFI ESG U.S. ETF |
PIMCO EQUITY SERIES®
Semiannual Report
December 31, 2020
PIMCO Dividend and Income Fund
As permitted by regulations adopted by the Securities and Exchange Commission, paper copies of the Fund’s annual and semi-annual shareholder reports will no longer be sent by mail, unless you specifically request paper copies of the reports from the Fund or from your financial intermediary, such as a broker-dealer or bank. Instead, the reports will be made available on the Fund’s website, pimco.com/literature, and you will be notified by mail each time a report is posted and provided with a website link to access the report.
If you already elected to receive shareholder reports electronically, you will not be affected by this change and you need not take any action. You may elect to receive shareholder reports and other communications from the Fund electronically by visiting pimco.com/edelivery or by contacting your financial intermediary, such as a broker dealer or bank.
You may elect to receive all future reports in paper free of charge. If you own these shares through a financial intermediary, such as a broker-dealer or bank, you may contact your financial intermediary to request that you continue to receive paper copies of your shareholder reports. If you invest directly with the Fund, you can inform the Fund that you wish to continue receiving paper copies of your shareholder reports by calling 888.87.PIMCO (888.877.4626). Your election to receive reports in paper will apply to all funds held with the fund complex if you invest directly with the Fund or to all funds held in your account if you invest through a financial intermediary, such as a broker-dealer or bank.
Table of Contents
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.
Chairman’s Letter
Dear Shareholder,
We hope that you and your family are remaining safe and healthy during these challenging times. We continue to work tirelessly to navigate markets and manage the assets that you have entrusted with us. Following this letter is the PIMCO Equity Series Semiannual Report, which covers the six-month reporting period ended December 31, 2020. On the subsequent pages, you will find specific details regarding investment results and a discussion of the factors that most affected performance during the reporting period.
For the six-month reporting period ended December 31, 2020
The global economy was severely impacted by the repercussions related to the COVID-19 pandemic. Looking back before the reporting period began, second-quarter 2020 U.S. annualized gross domestic product (“GDP”) was -31.4%. This represented the steepest quarterly decline on record. With the economy reopening, third-quarter GDP growth was 33.4%, the largest quarterly increase on record. The Commerce Department’s initial estimate for fourth-quarter annualized GDP growth — released after the reporting period ended — was 4.0%.
The Federal Reserve (the “Fed”) took unprecedented actions to support the economy and keep markets functioning properly. In early March 2020, before the reporting period began, the Fed lowered the federal funds rate to a range between 1.00% and 1.25%. Later in the month, the Fed lowered the rate to a range between 0.00% and 0.25%. On March 23, the Fed announced that it would make unlimited purchases of Treasury and mortgage securities and, for the first time, it would purchase corporate bonds on the open market. In August 2020, Fed Chair Jerome Powell said the central bank had changed how it viewed the trade-off between lower unemployment and higher inflation. Per Powell’s statement, the Fed’s new approach to setting U.S. monetary policy will entail letting inflation run higher, which could mean that interest rates remain low for an extended period. Meanwhile, in March 2020, the U.S. government passed a total of roughly $2.8 trillion in fiscal stimulus measures to aid the economy. A subsequent $900 billion stimulus package was finalized in December 2020.
Economies outside the U.S. were significantly impacted by the pandemic too. In its October 2020 World Economic Outlook Update, the International Monetary Fund (“IMF”) stated that it expects 2020 GDP in the eurozone, U.K. and Japan will be -8.3%, -9.8% and -5.3%, respectively. For comparison purposes, the GDP of these economies expanded 1.3%, 1.5% and 0.7%, respectively, in 2019.
Against this backdrop, central banks and governments around the world took a number of aggressive actions. Looking back, in March 2020, the European Central Bank (the “ECB”) unveiled a new €750 billion bond-buying program, which was subsequently expanded by another €600 billion in June 2020. In July, the European
Union agreed on a €1.8 trillion spending package to bolster its economy. In December 2020, the ECB expanded its monetary stimulus program by another €500 billion.
The Bank of England reduced its key lending rate to 0.10% — a record low — in March, added £100 billion to its quantitative easing program in June, and increased its bond-buying program by £150 billion to £895 billion in November. Finally, toward the end of the year, the U.K. and the European Union agreed to a long-awaited Brexit deal. Elsewhere, the Bank of Japan maintained its short-term interest rate at -0.10%, while increasing the target for its holdings of corporate bonds to ¥4.2 trillion from ¥3.2 trillion. In May 2020, the Japanese government doubled its stimulus measures with a ¥117 trillion package. Finally, in December 2020, the Bank of Japan announced a new ¥73.6 trillion stimulus package.
Short-term U.S. Treasury yields edged modestly lower, whereas long-term yields moved higher, albeit from a very low level during the reporting period. The yield on the benchmark 10-year U.S. Treasury note was 0.93% at the end of the reporting period, versus 0.66% on June 30, 2020. The Bloomberg Barclays Global Treasury Index (USD Hedged), which tracks fixed-rate, local currency government debt of investment grade countries, including both developed and emerging markets, returned 0.78%. Meanwhile, the Bloomberg Barclays Global Aggregate Credit Index (USD Hedged), a widely used index of global investment grade credit bonds, returned 4.20%. Riskier fixed income asset classes, including high yield corporate bonds and emerging market debt, also rallied. The ICE BofAML Developed Markets High Yield Constrained Index (USD Hedged), a widely used index of below-investment-grade bonds, returned 10.82%, whereas emerging market external debt, as represented by the JPMorgan Emerging Markets Bond Index (EMBI) Global (USD Hedged), returned 7.89%. Emerging market local bonds, as represented by the JPMorgan Government Bond Index-Emerging Markets Global Diversified Index (Unhedged), returned 10.29%.
Despite the headwinds from the pandemic, global equities produced strong results. All told, U.S. equities, as represented by the S&P 500 Index, returned 22.16%, partially fueled by a sharp rally in November and December 2020, because, in our view, investor sentiment improved after positive COVID-19 vaccine news. Global equities, as represented by the MSCI World Index, returned 23.00%, whereas emerging market equities, as measured by the MSCI Emerging Markets Index, returned 31.14%. Meanwhile, Japanese equities, as represented by the Nikkei 225 Index (in JPY), returned 24.12% and European equities, as represented by the MSCI Europe Index (in EUR), returned 10.91%.
Commodity prices were volatile and produced mixed results. When the reporting period began, Brent crude oil was approximately $41 a barrel. Brent crude oil ended the reporting period at roughly $52 a barrel. We believe that oil prices rallied because producers reduced their output and investors anticipated stronger demand as global
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| | SEMIANNUAL REPORT | | DECEMBER 31, 2020 | | 3 |
Chairman’s Letter (Cont.)
growth improved and several new COVID-19 vaccines were introduced. Elsewhere, copper prices moved higher, while gold declined.
Finally, there were also periods of volatility in the foreign exchange markets, in our view due to fluctuating economic growth, trade conflicts and changing central bank monetary policies, along with the U.S. election and several geopolitical events. The U.S. dollar weakened against a number of other major currencies. For example, the U.S. dollar returned -8.74%, -10.23% and -4.53% versus the euro, the British pound and the Japanese yen, respectively.
Thank you for the assets you have placed with us. We deeply value your trust, and we will continue to work diligently to meet your broad investment needs. For 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 global viewpoints.
| | |
 | | Sincerely, 
Peter G. Strelow Chairman of the Board
PIMCO Equity Series |
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.
Important Information About the PIMCO Dividend and Income Fund
PIMCO Equity Series (the “Trust”) is an open-end management investment company that includes PIMCO Dividend and Income Fund (the “Fund”).
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 the 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 Fund may be subject to various risks as described in its prospectus and in the Principal and Other Risks in the Notes to Financial Statements.
Classifications of the Fund’s portfolio holdings in this report are made according to financial reporting standards. The classification of a particular portfolio holding as shown in the Allocation Breakdown and Schedule of Investments sections of this report may differ from the classification used for the Fund’s compliance calculations, including those used in the Fund’s prospectus, investment objectives, regulatory, and other investment limitations and policies, which may be based on different asset class, sector or geographical classifications. The Fund is separately monitored for compliance with respect to prospectus and regulatory requirements.
The geographical classification of foreign (non-U.S.) securities in this report, if any, 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.
Beginning in January 2020, global financial markets have experienced and may continue to experience significant volatility resulting from the spread of a novel coronavirus known as COVID-19. The outbreak of COVID-19 has resulted in travel and border restrictions, quarantines, supply chain disruptions, lower consumer demand and general market uncertainty. The effects of COVID-19 have and may continue to adversely affect the global economy, the economies of certain nations and individual issuers, all of which may negatively impact the Fund’s performance. In addition, COVID-19
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| | SEMIANNUAL REPORT | | DECEMBER 31, 2020 | | 5 |
Important Information About the PIMCO Dividend and Income Fund (Cont.)
and governmental responses to COVID-19 may negatively impact the capabilities of the Fund’s service providers and disrupt the Fund’s operations.
The United States’ enforcement of restrictions on U.S. investments in certain issuers and tariffs on goods from other countries, each with a focus on China, has contributed to international trade tensions and may impact portfolio securities.
The United Kingdom’s withdrawal from the European Union may impact Fund returns. The withdrawal may cause substantial volatility in foreign exchange markets, lead to weakness in the exchange rate of the British pound, result in a sustained period of market uncertainty, and destabilize some or all of the other European Union member countries and/or the Eurozone.
The Fund may invest in certain instruments that rely in some fashion upon the London Interbank Offered Rate (“LIBOR”). LIBOR is an average interest rate, determined by the ICE Benchmark Administration, that banks charge one another for the use of short-term money. The United Kingdom’s Financial Conduct Authority, which regulates LIBOR, has announced plans to ultimately phase out the use of LIBOR. There remains uncertainty regarding future utilization of LIBOR and the nature of any replacement rate (e.g., the Secured Overnight Financing Rate, which is intended to replace U.S. dollar LIBOR and measures the cost of overnight borrowings through repurchase agreement transactions collateralized with U.S. Treasury securities). Any potential effects of the transition away from LIBOR on the Fund or on certain instruments in which the Fund invests can be difficult to ascertain, and they may vary depending on a variety of factors. The transition may also result in a reduction in the value of certain instruments held by the Fund or a reduction in the effectiveness of related Fund transactions such as hedges. Any such effects of the transition away from LIBOR, as well as other unforeseen effects, could result in losses to the Fund.
On the 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, I-2 and I-3 shares is $1,000,000. The minimum initial investment amount for Class A and Class C shares is $1,000. The 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. The 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 the Fund, even if the Fund 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) the Fund’s total return in excess of that of the Fund’s benchmark between reporting periods
or 2) the Fund’s total return in excess of the Fund’s historical returns between reporting periods. Unusual performance is defined as a significant change in the Fund’s performance as compared to one or more previous reporting periods. Historical performance for the Fund or share class may have been positively impacted by fee waivers or expense limitations in place during some or all of the periods shown, if applicable. Future performance (including total return or yield) and distributions may be negatively impacted by the expiration or reduction of any such fee waivers or expense limitations.
The following table discloses the inception dates of the Fund and its share classes along with the Fund’s diversification status as of period end:
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Fund Name | | | | | Fund
Inception | | | Institutional
Class | | | I-2 | | | I-3 | | | 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 | | | Diversified |
An investment in the Fund is not a bank deposit and is not guaranteed or insured by the Federal Deposit Insurance Corporation or any other government agency. It is possible to lose money on investments in the 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 Fund. Shareholders are not parties to or third-party beneficiaries of such service agreements. Neither the Fund’s prospectus nor the 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 the Fund creates a contract between or among any shareholder of the Fund, on the one hand, and the Trust, the Fund, a service provider to the Trust or the 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 the 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 the Fund is a party, and interpret the investment objective(s), policies, restrictions and contractual provisions applicable to the 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 the Fund. A description of the policies and procedures that PIMCO uses to vote proxies relating to portfolio securities of the 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.
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| | SEMIANNUAL REPORT | | DECEMBER 31, 2020 | | 7 |
Important Information About the PIMCO Dividend and Income Fund (Cont.)
The Fund files portfolio holdings information with the SEC on Form N-PORT within 60 days of the end of each fiscal quarter. The Fund’s complete schedule of securities holdings as of the end of each fiscal quarter will be made available to the public on the SEC’s website at www.sec.gov and on PIMCO’s website at www.pimco.com, and will be made available, upon request, by calling PIMCO at (888) 87-PIMCO.
The SEC adopted a rule that allows the Fund to fulfill its obligation to deliver shareholder reports to investors by providing access to such reports online free of charge and by mailing a notice that the report is electronically available. Pursuant to the rule, investors may elect to receive all future reports in paper free of charge by contacting their financial intermediary or, if invested directly with the Fund, investors can inform the Fund by calling 888.877.4626. Any election to receive reports in paper will apply to all funds held with the fund complex if invested directly with the Fund or to all funds held in the investor’s account if invested through a financial intermediary.
In August 2020, the SEC proposed changes to the mutual fund and ETF shareholder report and registration statement disclosure requirements and the registered fund advertising rules, which, if adopted, will change the disclosures provided to shareholders.
In October 2020, the SEC adopted a rule related to the use of derivatives, short sales, reverse repurchase agreements and certain other transactions by registered investment companies that rescinds and withdraws the guidance of the SEC and its staff regarding asset segregation and cover transactions. Subject to certain exceptions, and after an eighteen-month transition period, the rule requires funds to trade derivatives and other transactions that create future payment or delivery obligations (except reverse repurchase agreements and similar financing transactions) subject to a value-at-risk leverage limit, certain derivatives risk management program and reporting requirements. These requirements may limit the ability of the Fund to use derivatives and reverse repurchase agreements and similar financing transactions as part of its investment strategies and may increase the cost of the Fund’s investments and cost of doing business, which could adversely affect investors.
In October 2020, the SEC adopted a rule regarding the ability of a fund to invest in other funds. The rule allows a fund to acquire shares of another fund in excess of certain limitations currently imposed by the Investment Company Act of 1940 (the “Act”) without obtaining individual exemptive relief from the SEC, subject to certain conditions. The rule also included the rescission of certain exemptive relief from the SEC and guidance from the SEC staff for funds to invest in other funds. The impact that these changes may have on the Fund is uncertain.
In December 2020, the SEC adopted a rule addressing fair valuation of fund investments. The new rule sets forth requirements for good faith determinations of fair value as well as for the performance of fair value determinations, including related oversight and reporting obligations. The new rule also defines “readily available market quotations” for purposes of the definition of “value” under the Act, and the SEC noted that this definition will apply in all contexts under the Act. The SEC adopted an eighteen-month transition period beginning from the effective date for both the new rule and the associated new recordkeeping requirements. The impact of the new rule on the Fund is uncertain at this time.
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| | SEMIANNUAL REPORT | | DECEMBER 31, 2020 | | 9 |
PIMCO Dividend and Income Fund
Cumulative Returns Through December 31, 2020
$1,000,000 invested at the end of the month when the Fund’s Institutional Class commenced operations.
| | | | | | | | | | | | | | | | | | |
|
| Average Annual Total Return for the period ended December 31, 2020 | |
| | | | | |
| | | | | 6 Months* | | | 1 Year | | | 5 Years | | | Fund
Inception
(12/14/11) | |
 | | PIMCO Dividend and Income Fund Institutional Class | | | 17.62% | | | | (1.35)% | | | | 5.86% | | | | 6.08% | |
| | PIMCO Dividend and Income Fund I-2 | | | 17.52% | | | | (1.52)% | | | | 5.78% | | | | 5.98% | |
| | PIMCO Dividend and Income Fund Class A | | | 17.45% | | | | (1.71)% | | | | 5.47% | | | | 5.70% | |
| | PIMCO Dividend and Income Fund Class A (adjusted) | | | 11.04% | | | | (7.14)% | | | | 4.28% | | | | 5.04% | |
| | PIMCO Dividend and Income Fund Class C | | | 16.99% | | | | (2.51)% | | | | 4.68% | | | | 4.90% | |
| | PIMCO Dividend and Income Fund Class C (adjusted) | | | 15.99% | | | | (3.46)% | | | | 4.68% | | | | 4.90% | |
 | | MSCI World Index± | | | 23.00% | | | | 15.90% | | | | 12.19% | | | | 12.12% | |
 | | 75% MSCI World Index/25% Bloomberg Barclays Global Aggregate USD Unhedged±± | | | 18.71% | | | | 14.73% | | | | 10.52% | | | | 9.84% | |
All Fund returns are net of fees and expenses and include applicable fee waivers and/or expense limitations. Absent any applicable fee waivers and/or expense limitations, performance would have been lower and there can be no assurance that any such waivers or limitations will continue in the future.
* 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 funs 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 0.80% for Institutional Class shares, 0.90% for I-2 shares, 1.15% for Class A shares, and 1.90% for 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.
| | |
| Institutional Class - PQIIX | | I-2 - PQIPX |
| Class A - PQIZX | | Class C - PQICX |
| | | | |
| |
| Geographic Breakdown as of December 31, 2020†§ | | | |
| |
| United States | | | 55.7% | |
| Japan | | | 9.1% | |
| Australia | | | 6.5% | |
| United Kingdom | | | 6.4% | |
| France | | | 3.6% | |
| Spain | | | 3.3% | |
| Germany | | | 2.6% | |
| Switzerland | | | 2.0% | |
| Italy | | | 1.3% | |
| Cayman Islands | | | 1.3% | |
| Netherlands | | | 1.3% | |
| Short-Term Instruments‡ | | | 0.7% | |
| Other | | | 6.2% | |
| | | | |
| |
| Sector Breakdown as of December 31, 2020†§ | | | |
| |
| Financials | | | 15.3% | |
| Energy | | | 10.8% | |
| U.S. Government Agencies | | | 9.7% | |
| Materials | | | 8.3% | |
| Industrials | | | 8.0% | |
| Consumer Staples | | | 7.1% | |
| Communication Services | | | 6.6% | |
| Health Care | | | 6.5% | |
| Consumer Discretionary | | | 5.0% | |
| Information Technology | | | 4.7% | |
| Asset-Backed Securities | | | 3.5% | |
| Non-Agency Mortgage-Backed Securities | | | 3.4% | |
| Utilities | | | 3.0% | |
| U.S. Treasury Obligations | | | 2.9% | |
| Real Estate | | | 2.0% | |
| Sovereign Issues | | | 1.4% | |
| Short-Term Instruments‡ | | | 0.7% | |
| Other | | | 1.1% | |
| † | | % of Investments, at value. |
| § | | Geographic and Sector Breakdown and % of Investments exclude securities sold short and financial derivative instruments, if any. |
| ‡ | | Includes Central Funds Used for Cash Management Purposes. |
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| | SEMIANNUAL REPORT | | DECEMBER 31, 2020 | | 11 |
PIMCO Dividend and Income Fund (Cont.)
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. Equity-related securities include securities having an equity component (e.g., hybrids, bank capital) and equity derivatives. With respect to investments in equity securities, there is no limitation on the market capitalization range of the issuers in which the Fund may invest. 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.
Fund Insights
The following affected performance (on a gross basis) during the reporting period:
Equity Portfolio:
| » | | 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 real estate sector contributed to relative returns, as the sector underperformed the benchmark index 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. |
| » | | Security selection in the communications services and health care sectors detracted from relative returns, as the Fund’s holdings 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. |
Fixed Income Portfolio:
| » | | Long exposure to investment grade corporate credit contributed to performance, as these securities posted positive returns. |
| » | | Long exposure to emerging market external debt in select countries, including Mexico and Brazil, contributed to performance, as prices for these securities increased. |
| » | | Long exposure to non-agency mortgage backed securities contributed to performance, as prices for these securities appreciated. |
| » | | There were no material detractors to the Fund on an absolute basis. |
Expense Example
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 investment advisory fees, supervisory and administrative 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, 2020 to December 31, 2020 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 investment advisory fees and supervisory and administrative 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
(07/01/20) | | | Ending
Account Value
(12/31/20) | | | Expenses Paid
During Period* | | | | | | Beginning
Account Value
(07/01/20) | | | Ending
Account Value
(12/31/20) | | | Expenses Paid
During Period* | | | | | | Net Annualized
Expense Ratio** | |
Institutional Class | | | | | | $ | 1,000.00 | | | $ | 1,176.20 | | | $ | 4.35 | | | | | | | $ | 1,000.00 | | | $ | 1,021.62 | | | $ | 4.04 | | | | | | | | 0.78 | % |
I-2 | | | | | | | 1,000.00 | | | | 1,175.20 | | | | 4.90 | | | | | | | | 1,000.00 | | | | 1,021.11 | | | | 4.56 | | | | | | | | 0.88 | |
Class A | | | | | | | 1,000.00 | | | | 1,174.50 | | | | 6.29 | | | | | | | | 1,000.00 | | | | 1,019.83 | | | | 5.85 | | | | | | | | 1.13 | |
Class C | | | | | | | 1,000.00 | | | | 1,169.90 | | | | 10.45 | | | | | | | | 1,000.00 | | | | 1,015.98 | | | | 9.71 | | | | | | | | 1.88 | |
* 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 187/365 (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.
| | | | | | |
| | SEMIANNUAL REPORT | | DECEMBER 31, 2020 | | 13 |
Financial Highlights PIMCO Dividend and Income Fund
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | Investment Operations | | | | Less Distributions(c) |
| | | | | | | | | | | | | | | | | |
Selected Per Share Data for the Year or Period Ended^: | | Net Asset
Value Beginning
of Year or
Period(a) | | Net Investment Income
(Loss)(b) | | Net
Realized/ Unrealized Gain (Loss) | | Total | | | | From Net Investment Income | | From Net Realized Capital Gains | | Total |
| | | | | | | | |
Institutional Class | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | |
07/01/2020 - 12/31/2020+ | | | $ | 9.71 | | | | $ | 0.19 | | | | $ | 1.51 | | | | $ | 1.70 | | | | | | | | | $ | (0.28 | ) | | | $ | 0.00 | | | | $ | (0.28 | ) |
| | | | | | | | |
06/30/2020 | | | | 11.27 | | | | | 0.33 | | | | | (1.57 | ) | | | | (1.24 | ) | | | | | | | | | (0.32 | ) | | | | 0.00 | | | | | (0.32 | ) |
| | | | | | | | |
06/30/2019 | | | | 11.54 | | | | | 0.39 | | | | | (0.18 | ) | | | | 0.21 | | | | | | | | | | (0.48 | ) | | | | 0.00 | | | | | (0.48 | ) |
| | | | | | | | |
06/30/2018 | | | | 11.09 | | | | | 0.36 | | | | | 0.41 | | | | | 0.77 | | | | | | | | | | (0.32 | ) | | | | 0.00 | | | | | (0.32 | ) |
| | | | | | | | |
06/30/2017 | | | | 9.94 | | | | | 0.30 | | | | | 1.08 | | | | | 1.38 | | | | | | | | | | (0.23 | ) | | | | 0.00 | | | | | (0.23 | ) |
| | | | | | | | |
06/30/2016 | | | | 12.29 | | | | | 0.43 | | | | | (1.58 | ) | | | | (1.15 | ) | | | | | | | | | (0.44 | ) | | | | (0.76 | ) | | | | (1.20 | ) |
| | | | | | | | |
I-2 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | |
07/01/2020 - 12/31/2020+ | | | | 9.72 | | | | | 0.18 | | | | | 1.53 | | | | | 1.71 | | | | | | | | | | (0.28 | ) | | | | 0.00 | | | | | (0.28 | ) |
| | | | | | | | |
06/30/2020 | | | | 11.29 | | | | | 0.32 | | | | | (1.58 | ) | | | | (1.26 | ) | | | | | | | | | (0.31 | ) | | | | 0.00 | | | | | (0.31 | ) |
| | | | | | | | |
06/30/2019 | | | | 11.56 | | | | | 0.38 | | | | | (0.19 | ) | | | | 0.19 | | | | | | | | | | (0.46 | ) | | | | 0.00 | | | | | (0.46 | ) |
| | | | | | | | |
06/30/2018 | | | | 11.11 | | | | | 0.34 | | | | | 0.42 | | | | | 0.76 | | | | | | | | | | (0.31 | ) | | | | 0.00 | | | | | (0.31 | ) |
| | | | | | | | |
06/30/2017 | | | | 9.96 | | | | | 0.30 | | | | | 1.07 | | | | | 1.37 | | | | | | | | | | (0.22 | ) | | | | 0.00 | | | | | (0.22 | ) |
| | | | | | | | |
06/30/2016 | | | | 12.30 | | | | | 0.39 | | | | | (1.54 | ) | | | | (1.15 | ) | | | | | | | | | (0.43 | ) | | | | (0.76 | ) | | | | (1.19 | ) |
| | | | | | | | |
Class A | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | |
07/01/2020 - 12/31/2020+ | | | | 9.70 | | | | | 0.17 | | | | | 1.52 | | | | | 1.69 | | | | | | | | | | (0.27 | ) | | | | 0.00 | | | | | (0.27 | ) |
| | | | | | | | |
06/30/2020 | | | | 11.27 | | | | | 0.29 | | | | | (1.57 | ) | | | | (1.28 | ) | | | | | | | | | (0.29 | ) | | | | 0.00 | | | | | (0.29 | ) |
| | | | | | | | |
06/30/2019 | | | | 11.53 | | | | | 0.35 | | | | | (0.19 | ) | | | | 0.16 | | | | | | | | | | (0.42 | ) | | | | 0.00 | | | | | (0.42 | ) |
| | | | | | | | |
06/30/2018 | | | | 11.08 | | | | | 0.31 | | | | | 0.42 | | | | | 0.73 | | | | | | | | | | (0.28 | ) | | | | 0.00 | | | | | (0.28 | ) |
| | | | | | | | |
06/30/2017 | | | | 9.94 | | | | | 0.27 | | | | | 1.07 | | | | | 1.34 | | | | | | | | | | (0.20 | ) | | | | 0.00 | | | | | (0.20 | ) |
| | | | | | | | |
06/30/2016 | | | | 12.29 | | | | | 0.39 | | | | | (1.57 | ) | | | | (1.18 | ) | | | | | | | | | (0.41 | ) | | | | (0.76 | ) | | | | (1.17 | ) |
| | | | | | | | |
Class C | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | |
07/01/2020 - 12/31/2020+ | | | | 9.70 | | | | | 0.13 | | | | | 1.51 | | | | | 1.64 | | | | | | | | | | (0.22 | ) | | | | 0.00 | | | | | (0.22 | ) |
| | | | | | | | |
06/30/2020 | | | | 11.29 | | | | | 0.21 | | | | | (1.57 | ) | | | | (1.36 | ) | | | | | | | | | (0.23 | ) | | | | 0.00 | | | | | (0.23 | ) |
| | | | | | | | |
06/30/2019 | | | | 11.48 | | | | | 0.26 | | | | | (0.18 | ) | | | | 0.08 | | | | | | | | | | (0.27 | ) | | | | 0.00 | | | | | (0.27 | ) |
| | | | | | | | |
06/30/2018 | | | | 11.06 | | | | | 0.22 | | | | | 0.42 | | | | | 0.64 | | | | | | | | | | (0.22 | ) | | | | 0.00 | | | | | (0.22 | ) |
| | | | | | | | |
06/30/2017 | | | | 9.92 | | | | | 0.18 | | | | | 1.07 | | | | | 1.25 | | | | | | | | | | (0.11 | ) | | | | 0.00 | | | | | (0.11 | ) |
| | | | | | | | |
06/30/2016 | | | | 12.27 | | | | | 0.31 | | | | | (1.57 | ) | | | | (1.26 | ) | | | | | | | | | (0.33 | ) | | | | (0.76 | ) | | | | (1.09 | ) |
| ^ | A zero balance may reflect actual amounts rounding to less than $0.01 or 0.01%. |
| (a) | Includes adjustments required by U.S. GAAP and may differ from net asset values and performance reported elsewhere by the Fund. |
| (b) | Per share amounts based on average number of shares outstanding during the year or period. |
| (c) | 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. |
| (d) | Effective June 16, 2016, the Fund’s Investment advisory fee was decreased by 0.20% to an annual rate of 0.49%. |
| (e) | Effective October 1, 2020, the Fund’s Investment advisory fee was decreased by 0.04% to an annual rate of 0.45%. |
| | | | | | |
| 14 | | PIMCO EQUITY SERIES | | | | See Accompanying Notes |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | Ratios/Supplemental Data |
| | | | | | | Ratios to Average Net Assets | | |
Net Asset Value End of Year or Period(a) | | Total Return(a) | | 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 |
| | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | |
| | $ | 11.13 | | | | | 17.62 | % | | | $ | 18,207 | | | | | 0.78 | %(e)* | | | | 0.79 | %(e)* | | | | 0.76 | %(e)* | | | | 0.77 | %(e)* | | | | 3.53 | %* | | | | 107 | % |
| | | | | | | | |
| | | 9.71 | | | | | (11.38 | ) | | | | 16,438 | | | | | 0.83 | | | | | 0.84 | | | | | 0.80 | | | | | 0.81 | | | | | 3.05 | | | | | 158 | |
| | | | | | | | |
| | | 11.27 | | | | | 2.06 | | | | | 20,685 | | | | | 0.95 | | | | | 0.96 | | | | | 0.80 | | | | | 0.81 | | | | | 3.48 | | | | | 108 | |
| | | | | | | | |
| | | 11.54 | | | | | 6.89 | | | | | 23,027 | | | | | 0.85 | | | | | 0.86 | | | | | 0.80 | | | | | 0.81 | | | | | 3.04 | | | | | 80 | |
| | | | | | | | |
| | | 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 | (d) | | | | 1.00 | (d) | | | | 0.83 | (d) | | | | 1.00 | (d) | | | | 4.03 | | | | | 114 | |
| | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | |
| | | 11.15 | | | | | 17.64 | | | | | 18,522 | | | | | 0.88 | (e)* | | | | 0.89 | (e)* | | | | 0.86 | (e)* | | | | 0.87 | (e)* | | | | 3.43 | * | | | | 107 | |
| | | | | | | | |
| | | 9.72 | | | | | (11.52 | ) | | | | 19,236 | | | | | 0.93 | | | | | 0.94 | | | | | 0.90 | | | | | 0.91 | | | | | 2.95 | | | | | 158 | |
| | | | | | | | |
| | | 11.29 | | | | | 1.91 | | | | | 25,573 | | | | | 1.05 | | | | | 1.06 | | | | | 0.90 | | | | | 0.91 | | | | | 3.40 | | | | | 108 | |
| | | | | | | | |
| | | 11.56 | | | | | 6.80 | | | | | 27,286 | | | | | 0.95 | | | | | 0.96 | | | | | 0.90 | | | | | 0.91 | | | | | 2.94 | | | | | 80 | |
| | | | | | | | |
| | | 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 | (d) | | | | 1.10 | (d) | | | | 0.93 | (d) | | | | 1.10 | (d) | | | | 3.53 | | | | | 114 | |
| | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | |
| | | 11.12 | | | | | 17.45 | | | | | 108,273 | | | | | 1.13 | (e)* | | | | 1.14 | (e)* | | | | 1.11 | (e)* | | | | 1.12 | (e)* | | | | 3.17 | * | | | | 107 | |
| | | | | | | | |
| | | 9.70 | | | | | (11.72 | ) | | | | 96,148 | | | | | 1.18 | | | | | 1.19 | | | | | 1.15 | | | | | 1.16 | | | | | 2.70 | | | | | 158 | |
| | | | | | | | |
| | | 11.27 | | | | | 1.61 | | | | | 122,533 | | | | | 1.30 | | | | | 1.31 | | | | | 1.15 | | | | | 1.16 | | | | | 3.13 | | | | | 108 | |
| | | | | | | | |
| | | 11.53 | | | | | 6.60 | | | | | 138,561 | | | | | 1.20 | | | | | 1.21 | | | | | 1.15 | | | | | 1.16 | | | | | 2.70 | | | | | 80 | |
| | | | | | | | |
| | | 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 | (d) | | | | 1.35 | (d) | | | | 1.18 | (d) | | | | 1.35 | (d) | | | | 3.67 | | | | | 114 | |
| | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | |
| | | 11.12 | | | | | 16.99 | | | | | 34,076 | | | | | 1.88 | (e)* | | | | 1.89 | (e)* | | | | 1.86 | (e)* | | | | 1.87 | (e)* | | | | 2.44 | * | | | | 107 | |
| | | | | | | | |
| | | 9.70 | | | | | (12.36 | ) | | | | 46,644 | | | | | 1.93 | | | | | 1.94 | | | | | 1.90 | | | | | 1.91 | | | | | 1.92 | | | | | 158 | |
| | | | | | | | |
| | | 11.29 | | | | | 0.87 | | | | | 83,059 | | | | | 2.05 | | | | | 2.06 | | | | | 1.90 | | | | | 1.91 | | | | | 2.34 | | | | | 108 | |
| | | | | | | | |
| | | 11.48 | | | | | 5.72 | | | | | 115,183 | | | | | 1.95 | | | | | 1.96 | | | | | 1.90 | | | | | 1.91 | | | | | 1.91 | | | | | 80 | |
| | | | | | | | |
| | | 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 | (d) | | | | 2.10 | (d) | | | | 1.93 | (d) | | | | 2.10 | (d) | | | | 2.91 | | | | | 114 | |
| | | | | | |
| | SEMIANNUAL REPORT | | DECEMBER 31, 2020 | | 15 |
Statement of Assets and Liabilities PIMCO Dividend and Income Fund
| | | | |
| (Amounts in thousands†, except per share amounts) | |
| |
Assets: | | | | |
| |
Investments, at value | | | | |
Investments in securities* | | $ | 193,288 | |
Investments in Affiliates | | | 741 | |
| |
Financial Derivative Instruments | | | | |
Exchange-traded or centrally cleared | | | 24 | |
Over the counter | | | 305 | |
Cash | | | 42 | |
Deposits with counterparty | | | 651 | |
Foreign currency, at value | | | 456 | |
Receivable for investments sold | | | 503 | |
Receivable for TBA investments sold | | | 22,794 | |
Receivable for Fund shares sold | | | 89 | |
Interest and/or dividends receivable | | | 1,195 | |
Dividends receivable from Affiliates | | | 1 | |
Reimbursement receivable from PIMCO | | | 1 | |
Other assets | | | 1 | |
| |
Total Assets | | | 220,091 | |
| |
Liabilities: | | | | |
| |
Borrowings & Other Financing Transactions | | | | |
Payable for reverse repurchase agreements | | $ | 3,668 | |
Payable for sale-buyback transactions | | | 770 | |
| |
Financial Derivative Instruments | | | | |
Exchange-traded or centrally cleared | | | 33 | |
Over the counter | | | 191 | |
Payable for investments purchased | | | 145 | |
Payable for investments in Affiliates purchased | | | 1 | |
Payable for TBA investments purchased | | | 35,345 | |
Payable for unfunded loan commitments | | | 6 | |
Payable for Fund shares redeemed | | | 653 | |
Accrued investment advisory fees | | | 76 | |
Accrued supervisory and administrative fees | | | 66 | |
Accrued distribution fees | | | 24 | |
Accrued servicing fees | | | 34 | |
Accrued reimbursement to PIMCO | | | 1 | |
| |
Total Liabilities | | | 41,013 | |
| |
Net Assets | | $ | 179,078 | |
| |
Net Assets Consist of: | | | | |
| |
Paid in capital | | $ | 276,267 | |
Distributable earnings (accumulated loss) | | | (97,189 | ) |
| |
Net Assets | | $ | 179,078 | |
| |
Cost of investments in securities | | $ | 172,127 | |
Cost of investments in Affiliates | | $ | 740 | |
Cost of foreign currency held | | $ | 449 | |
Cost or premiums of financial derivative instruments, net | | $ | (1,905 | ) |
| |
* Includes repurchase agreements of: | | $ | 522 | |
| † | A zero balance may reflect actual amounts rounding to less than one thousand. |
| | | | | | |
| 16 | | PIMCO EQUITY SERIES | | | | See Accompanying Notes |
December 31, 2020 (Unaudited)
| | | | |
| | | | |
| |
Net Assets: | | | | |
| |
Institutional Class | | $ | 18,207 | |
I-2 | | | 18,522 | |
Class A | | | 108,273 | |
Class C | | | 34,076 | |
| |
Shares Issued and Outstanding: | | | | |
| |
Institutional Class | | | 1,636 | |
I-2 | | | 1,661 | |
Class A | | | 9,735 | |
Class C | | | 3,064 | |
| |
Net Asset Value Per Share Outstanding(a): | | | | |
| |
Institutional Class | | $ | 11.13 | |
I-2 | | | 11.15 | |
Class A | | | 11.12 | |
Class C | | | 11.12 | |
| (a) | Includes adjustments required by U.S. GAAP and may differ from net asset values and performance reported elsewhere by the Fund. |
| | | | | | |
| | SEMIANNUAL REPORT | | DECEMBER 31, 2020 | | 17 |
Statement of Operations PIMCO Dividend and Income Fund
| | | | |
| Six Months Ended December 31, 2020 (Unaudited) | | | |
| (Amounts in thousands†) | | | |
| |
Investment Income: | | | | |
| |
Interest | | $ | 1,094 | |
Dividends, net of foreign taxes* | | | 2,771 | |
Dividends from Investments in Affiliates | | | 2 | |
Total Income | | | 3,867 | |
| |
Expenses: | | | | |
| |
Investment advisory fees | | | 421 | |
Supervisory and administrative fees | | | 350 | |
Distribution fees - Class C | | | 139 | |
Servicing fees - Class A | | | 133 | |
Servicing fees - Class C | | | 46 | |
Trustee fees | | | 7 | |
Interest expense | | | 21 | |
Miscellaneous expense | | | 5 | |
Total Expenses | | | 1,122 | |
Waiver and/or Reimbursement by PIMCO | | | (7 | ) |
Net Expenses | | | 1,115 | |
| |
Net Investment Income (Loss) | | | 2,752 | |
| |
Net Realized Gain (Loss): | | | | |
| |
Investments in securities | | | (2,057 | ) |
Investments in Affiliates | | | 1 | |
Exchange-traded or centrally cleared financial derivative instruments | | | (2,153 | ) |
Over the counter financial derivative instruments | | | (461 | ) |
Foreign currency | | | 23 | |
| |
Net Realized Gain (Loss) | | | (4,647 | ) |
| |
Net Change in Unrealized Appreciation (Depreciation): | | | | |
| |
Investments in securities | | | 26,887 | |
Exchange-traded or centrally cleared financial derivative instruments | | | 2,736 | |
Over the counter financial derivative instruments | | | 290 | |
Foreign currency assets and liabilities | | | (50 | ) |
| |
Net Change in Unrealized Appreciation (Depreciation) | | | 29,863 | |
| |
Net Increase (Decrease) in Net Assets Resulting from Operations | | $ | 27,968 | |
| |
* Foreign tax withholdings - Dividends | | $ | 79 | |
| † | A zero balance may reflect actual amounts rounding to less than one thousand. |
| | | | | | |
| 18 | | PIMCO EQUITY SERIES | | | | See Accompanying Notes |
Statements of Changes in Net Assets PIMCO Dividend and Income Fund
| | | | | | | | |
| (Amounts in thousands†) | | Six Months Ended
December 31, 2020
(Unaudited) | | | Year Ended
June 30, 2020 | |
| | |
Increase (Decrease) in Net Assets from: | | | | | | | | |
| | |
Operations: | | | | | | | | |
| | |
Net investment income (loss) | | $ | 2,752 | | | $ | 5,539 | |
Net realized gain (loss) | | | (4,647 | ) | | | (17,040 | ) |
Net change in unrealized appreciation (depreciation) | | | 29,863 | | | | (15,771 | ) |
| | |
Net Increase (Decrease) in Net Assets Resulting from Operations | | | 27,968 | | | | (27,272 | ) |
| | |
Distributions to Shareholders: | | | | | | | | |
| | |
From net investment income and/or net realized capital gains | | | | | | | | |
Institutional Class | | | (452 | ) | | | (569 | ) |
I-2 | | | (463 | ) | | | (701 | ) |
Class A | | | (2,591 | ) | | | (3,061 | ) |
Class C | | | (693 | ) | | | (1,420 | ) |
| | |
Total Distributions(a) | | | (4,199 | ) | | | (5,751 | ) |
| | |
Fund Share Transactions: | | | | | | | | |
| | |
Net increase (decrease) resulting from Fund share transactions* | | | (23,157 | ) | | | (40,361 | ) |
| | |
Total Increase (Decrease) in Net Assets | | | 612 | | | | (73,384 | ) |
| | |
Net Assets: | | | | | | | | |
| | |
Beginning of period | | | 178,466 | | | | 251,850 | |
End of period | | $ | 179,078 | | | $ | 178,466 | |
| † | 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, 2020 | | 19 |
Schedule of Investments PIMCO Dividend and Income Fund
(Amounts in thousands*, except number of shares, contracts, units and ounces, if any)
| | | | | | | | | | | | |
| | | | | PRINCIPAL
AMOUNT
(000S) | | | | | MARKET
VALUE
(000S) | |
| INVESTMENTS IN SECURITIES 107.9% | |
| |
| ASSET-BACKED SECURITIES 3.8% | |
| |
| CAYMAN ISLANDS 0.6% | |
|
Evans Grove CLO Ltd. | |
1.144% due 05/28/2028 • | | $ | | | 676 | | | $ | | | 673 | |
|
TruPS Financials Note Securitization Ltd. | |
1.809% due 09/20/2039 • | | | | | 415 | | | | | | 399 | |
| | | | | | | | | | | | |
Total Cayman Islands | | | | | | | | | | | 1,072 | |
| | | | | | | | | | | | |
| |
| UNITED STATES 3.2% | |
|
Conseco Finance Corp. | |
6.280% due 09/01/2030 | | | | | 205 | | | | | | 216 | |
|
Credit Suisse First Boston Mortgage Securities Corp. | |
0.768% due 01/25/2032 • | | | | | 946 | | | | | | 915 | |
|
EMC Mortgage Loan Trust | |
1.448% due 02/25/2041 • | | | | | 28 | | | | | | 28 | |
|
Legacy Mortgage Asset Trust | |
1.898% due 01/28/2070 • | | | | | 756 | | | | | | 762 | |
|
LP Credit Card ABS Master Trust | |
1.740% due 08/20/2024 • | | | | | 254 | | | | | | 263 | |
|
Morgan Stanley Home Equity Loan Trust | |
0.248% due 12/25/2036 • | | | | | 1,638 | | | | | | 976 | |
|
Navient Student Loan Trust | |
1.198% due 12/27/2066 • | | | | | 466 | | | | | | 472 | |
|
Residential Asset Securities Corp. Trust | |
1.033% due 01/25/2034 • | | | | | 891 | | | | | | 888 | |
|
Structured Asset Investment Loan Trust | |
0.298% due 09/25/2036 • | | | | | 1,305 | | | | | | 1,275 | |
| | | | | | | | | | | | |
Total United States | | | | | | | | | | | 5,795 | |
| | | | | | | | | | | | |
Total Asset-Backed Securities
(Cost $6,557) | | | 6,867 | |
| | | | |
| |
| LOAN PARTICIPATIONS AND ASSIGNMENTS 0.5% | |
| |
| BERMUDA 0.0% | |
|
Ingersoll Rand Co. Ltd. | |
1.897% due 03/01/2027 | | | | | 9 | | | | | | 9 | |
| | | | | | | | | | | | |
Total Bermuda | | | | | | | | | | | 9 | |
| | | | | | | | | | | | |
| |
| CANADA 0.0% | |
|
Bausch Health Cos., Inc. | |
3.148% due 06/02/2025 | | | | | 4 | | | | | | 3 | |
| | | | | | | | | | | | |
Total Canada | | | | | | | | | | | 3 | |
| | | | | | | | | | | | |
| |
| LUXEMBOURG 0.0% | |
|
Intelsat Jackson Holdings S.A. | |
3.600% - 6.500% due 07/13/2022 | | | | | 13 | | | | | | 14 | |
| | | | | | | | | | | | |
| | | | | PRINCIPAL
AMOUNT
(000S) | | | | | MARKET
VALUE
(000S) | |
8.000% due 11/27/2023 | | $ | | | 14 | | | $ | | | 14 | |
8.625% due 01/02/2024 | | | | | 13 | | | | | | 13 | |
| | | | | | | | | | | | |
Total Luxembourg | | | | | | | | | | | 41 | |
| | | | | | | | | | | | |
| |
| UNITED KINGDOM 0.0% | |
|
Froneri International PLC | |
2.397% due 01/31/2027 | | | | | 10 | | | | | | 10 | |
|
Valaris PLC | |
TBD% due 08/17/2021 « | | | | | 2 | | | | | | 2 | |
| | | | | | | | | | | | |
Total United Kingdom | | | | | | | | | | | 12 | |
| | | | | | | | | | | | |
| |
| UNITED STATES 0.5% | |
|
Avolon TLB Borrower (U.S.) LLC | |
2.250% due 02/12/2027 | | | | | 7 | | | | | | 7 | |
|
Beacon Roofing Supply, Inc. | |
2.397% due 01/02/2025 | | | | | 10 | | | | | | 10 | |
|
BWAY Holding Co. | |
3.480% due 04/03/2024 | | | | | 10 | | | | | | 9 | |
|
Caesars Resort Collection LLC | |
2.897% due 12/23/2024 | | | | | 97 | | | | | | 95 | |
|
Core & Main LP | |
3.750% due 08/01/2024 | | | | | 10 | | | | | | 10 | |
|
Diamond Resorts Corp. | |
4.750% due 09/02/2023 | | | | | 96 | | | | | | 91 | |
|
Emerald TopCo, Inc. | |
3.714% due 07/24/2026 | | | | | 3 | | | | | | 3 | |
|
Envision Healthcare Corp. | |
3.897% due 10/10/2025 | | | | | 101 | | | | | | 85 | |
|
EyeCare Partners LLC | |
3.750% - 3.897% due 02/18/2027 | | | | | 5 | | | | | | 5 | |
|
Hilton Worldwide Finance LLC | |
1.898% due 06/22/2026 | | | | | 230 | | | | | | 228 | |
|
Jefferies Finance LLC | |
3.188% due 06/03/2026 | | | | | 4 | | | | | | 4 | |
|
Lealand Finance Company B.V. (1.147% Cash and 3.000% PIK) | |
4.147% due 06/30/2025 (a) | | | | | 3 | | | | | | 2 | |
|
McDermott Technology Americas, Inc. | |
3.147% due 01/29/2021 « | | | | | 1 | | | | | | 1 | |
|
MH Sub LLC | |
3.647% due 09/13/2024 | | | | | 19 | | | | | | 19 | |
|
Nascar Holdings, Inc. | |
2.900% due 10/19/2026 | | | | | 3 | | | | | | 3 | |
|
Neiman Marcus Group Ltd. LLC | |
13.000% due 09/25/2025 | | | | | 89 | | | | | | 95 | |
|
Pacific Drilling Co. LLC | |
1.000% due 12/31/2025 µ | | | | | 6 | | | | | | 6 | |
|
PetSmart, Inc. | |
4.500% due 03/11/2022 | | | | | 13 | | | | | | 12 | |
| | | | | | |
| 20 | | PIMCO EQUITY SERIES | | | | See Accompanying Notes |
(Unaudited)
December 31, 2020
| | | | | | | | | | | | |
| | | | | PRINCIPAL
AMOUNT
(000S) | | | | | MARKET
VALUE
(000S) | |
|
PUG LLC | |
3.647% due 02/12/2027 | | $ | | | 4 | | | $ | | | 4 | |
|
Refinitiv U.S. Holdings, Inc. | |
3.397% due 10/01/2025 | | | | | 114 | | | | | | 113 | |
|
Syniverse Holdings, Inc. | |
6.000% due 03/09/2023 | | | | | 13 | | | | | | 11 | |
|
U.S. Renal Care, Inc. | |
5.147% due 06/26/2026 | | | | | 13 | | | | | | 13 | |
|
Westmoreland Mining Holdings LLC | |
9.250% due 03/15/2022 | | | | | 1 | | | | | | 1 | |
|
Westmoreland Mining Holdings LLC (15.000% PIK) | |
15.000% due 03/15/2029 (a) | | | | | 4 | | | | | | 2 | |
|
Whatabrands LLC | |
2.970% due 07/31/2026 | | | | | 2 | | | | | | 2 | |
| | | | | | | | | | | | |
Total United States | | | | | | | | | | | 831 | |
| | | | | | | | | | | | |
Total Loan Participations and Assignments (Cost $920) | | | 896 | |
| | | | |
| | | | | | | | | | | | |
| | | | | SHARES | | | | | | |
| COMMON STOCKS 71.7% | |
| |
| AUSTRALIA 7.0% | |
| |
| CONSUMER DISCRETIONARY 0.3% | |
| | | | |
Harvey Norman Holdings Ltd. | | | | | 11,857 | | | | | | 43 | |
| | | | |
Wesfarmers Ltd. | | | | | 11,081 | | | | | | 430 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 473 | |
| | | | | | | | | | | | |
| |
| CONSUMER STAPLES 0.2% | |
| | | | |
Coles Group Ltd. | | | | | 3,706 | | | | | | 52 | |
| | | | |
Metcash Ltd. | | | | | 54,990 | | | | | | 143 | |
| | | | |
Woolworths Group Ltd. | | | | | 4,999 | | | | | | 152 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 347 | |
| | | | | | | | | | | | |
| |
| ENERGY 0.0% | |
| | | | |
Woodside Petroleum Ltd. | | | | | 4,570 | | | | | | 80 | |
| | | | | | | | | | | | |
| |
| FINANCIALS 1.8% | |
| | | | |
Australia & New Zealand Banking Group Ltd. | | | | | 21,197 | | | | | | 372 | |
| | | | |
Bank of Queensland Ltd. | | | | | 8,473 | | | | | | 50 | |
| | | | |
Bendigo & Adelaide Bank Ltd. | | | | | 28,132 | | | | | | 203 | |
| | | | |
Commonwealth Bank of Australia | | | | | 20,479 | | | | | | 1,302 | |
| | | | |
National Australia Bank Ltd. | | | | | 30,291 | | | | | | 528 | |
| | | | |
Suncorp Group Ltd. | | | | | 12,936 | | | | | | 97 | |
| | | | |
Westpac Banking Corp. | | | | | 50,203 | | | | | | 747 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 3,299 | |
| | | | | | | | | | | | |
| | | | | | | | | | | | |
| | | | | SHARES | | | | | MARKET
VALUE
(000S) | |
| INDUSTRIALS 0.1% | |
| | | | |
Aurizon Holdings Ltd. | | | | | 58,454 | | | $ | | | 176 | |
| | | | | | | | | | | | |
| |
| MATERIALS 4.5% | |
| | | | |
BHP Group Ltd. | | | | | 135,899 | | | | | | 4,440 | |
| | | | |
BHP Group PLC | | | | | 23,430 | | | | | | 619 | |
| | | | |
Boral Ltd. | | | | | 5,418 | | | | | | 21 | |
| | | | |
Fortescue Metals Group Ltd. | | | | | 50,264 | | | | | | 908 | |
| | | | |
Rio Tinto Ltd. | | | | | 23,980 | | | | | | 2,109 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 8,097 | |
| | | | | | | | | | | | |
| |
| UTILITIES 0.1% | |
| | | | |
AGL Energy Ltd. | | | | | 15,336 | | | | | | 142 | |
| | | | | | | | | | | | |
Total Australia | | | | | | | | | | | 12,614 | |
| | | | | | | | | | | | |
| |
| AUSTRIA 0.0% | |
| |
| MATERIALS 0.0% | |
| | | | |
voestalpine AG | | | | | 2,051 | | | | | | 73 | |
| | | | | | | | | | | | |
Total Austria | | | | | | | | | | | 73 | |
| | | | | | | | | | | | |
| |
| BELGIUM 0.2% | |
| |
| COMMUNICATION SERVICES 0.1% | |
| | | | |
Proximus SADP | | | | | 4,886 | | | | | | 96 | |
| | | | | | | | | | | | |
| |
| FINANCIALS 0.1% | |
| | | | |
Ageas S.A. | | | | | 2,011 | | | | | | 107 | |
| | | | |
KBC Group NV | | | | | 244 | | | | | | 17 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 124 | |
| | | | | | | | | | | | |
| |
| MATERIALS 0.0% | |
| | | | |
Solvay S.A. | | | | | 653 | | | | | | 77 | |
| | | | | | | | | | | | |
Total Belgium | | | | | | | | | | | 297 | |
| | | | | | | | | | | | |
| |
| BRAZIL 0.0% | |
| |
| ENERGY 0.0% | |
| | | | |
Dommo Energia S.A. (c)(i) | | | | | 1 | | | | | | 0 | |
| | | | |
Dommo Energia S.A. «(i) | | | | | 19,637 | | | | | | 5 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 5 | |
| | | | | | | | | | | | |
Total Brazil | | | | | | | | | | | 5 | |
| | | | | | | | | | | | |
| |
| | | | | | |
| See Accompanying Notes | | SEMIANNUAL REPORT | | DECEMBER 31, 2020 | | 21 |
Schedule of Investments PIMCO Dividend and Income Fund (Cont.)
| | | | | | | | | | | | |
| | | | | SHARES | | | | | MARKET
VALUE
(000S) | |
| CANADA 0.5% | |
| |
| CONSUMER DISCRETIONARY 0.0% | |
| | | | |
Magna International, Inc. | | | | | 211 | | | $ | | | 15 | |
| | | | | | | | | | | | |
| |
| ENERGY 0.3% | |
| | | | |
ARC Resources Ltd. | | | | | 24,485 | | | | | | 115 | |
| | | | |
Canadian Natural Resources Ltd. | | | | | 3,439 | | | | | | 83 | |
| | | | |
Enbridge, Inc. | | | | | 8,964 | | | | | | 287 | |
| | | | |
Inter Pipeline Ltd. | | | | | 3,906 | | | | | | 36 | |
| | | | |
Suncor Energy, Inc. | | | | | 3,551 | | | | | | 59 | |
| | | | |
Vermilion Energy, Inc. | | | | | 9,553 | | | | | | 43 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 623 | |
| | | | | | | | | | | | |
| |
| FINANCIALS 0.2% | |
| | | | |
Canadian Imperial Bank of Commerce | | | | | 932 | | | | | | 80 | |
| | | | |
Power Corp. of Canada | | | | | 11,718 | | | | | | 269 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 349 | |
| | | | | | | | | | | | |
Total Canada | | | | | | | | | | | 987 | |
| | | | | | | | | | | | |
| |
| DENMARK 0.2% | |
| |
| FINANCIALS 0.2% | |
| | | | |
Danske Bank A/S | | | | | 14,827 | | | | | | 245 | |
| | | | | | | | | | | | |
| |
| HEALTH CARE 0.0% | |
| | | | |
Novo Nordisk A/S ‘B’ | | | | | 448 | | | | | | 31 | |
| | | | | | | | | | | | |
Total Denmark | | | | | | | | | | | 276 | |
| | | | | | | | | | | | |
| |
| FINLAND 0.8% | |
| |
| FINANCIALS 0.6% | |
| | | | |
Nordea Bank Abp (c) | | | | | 105,560 | | | | | | 865 | |
| | | | |
Sampo Oyj ‘A’ | | | | | 3,228 | | | | | | 138 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 1,003 | |
| | | | | | | | | | | | |
| |
| INDUSTRIALS 0.1% | |
| | | | |
Kone Oyj ‘B’ | | | | | 515 | | | | | | 42 | |
| | | | |
Wartsila Oyj Abp | | | | | 16,181 | | | | | | 162 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 204 | |
| | | | | | | | | | | | |
| |
| MATERIALS 0.1% | |
| | | | |
UPM-Kymmene Oyj | | | | | 5,888 | | | | | | 220 | |
| | | | | | | | | | | | |
Total Finland | | | | | | | | | | | 1,427 | |
| | | | | | | | | | | | |
| | | | | | | | | | | | |
| | | | | SHARES | | | | | MARKET
VALUE
(000S) | |
| FRANCE 2.8% | |
| |
| COMMUNICATION SERVICES 0.1% | |
| | | | |
Orange S.A. | | | | | 10,413 | | | $ | | | 124 | |
| | | | | | | | | | | | |
| |
| CONSUMER DISCRETIONARY 0.7% | |
| | | | |
Renault S.A. | | | | | 25,756 | | | | | | 1,128 | |
| | | | |
Valeo S.A. | | | | | 2,719 | | | | | | 107 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 1,235 | |
| | | | | | | | | | | | |
| |
| ENERGY 1.4% | |
| | | | |
Total SE | | | | | 59,326 | | | | | | 2,561 | |
| | | | | | | | | | | | |
| |
| FINANCIALS 0.3% | |
| | | | |
AXA S.A. | | | | | 4,085 | | | | | | 98 | |
| | | | |
BNP Paribas S.A. | | | | | 1,905 | | | | | | 100 | |
| | | | |
Natixis S.A. | | | | | 40,812 | | | | | | 140 | |
| | | | |
Societe Generale S.A. (c) | | | | | 10,762 | | | | | | 224 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 562 | |
| | | | | | | | | | | | |
| |
| HEALTH CARE 0.1% | |
| | | | |
Sanofi | | | | | 2,220 | | | | | | 215 | |
| | | | | | | | | | | | |
| |
| INDUSTRIALS 0.2% | |
| | | | |
Bouygues S.A. | | | | | 2,556 | | | | | | 105 | |
| | | | |
Cie de Saint-Gobain (c) | | | | | 2,523 | | | | | | 116 | |
| | | | |
Rexel S.A. | | | | | 2,112 | | | | | | 33 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 254 | |
| | | | | | | | | | | | |
Total France | | | | | | | | | | | 4,951 | |
| | | | | | | | | | | | |
| |
| GERMANY 2.3% | |
| |
| COMMUNICATION SERVICES 0.1% | |
| | | | |
Deutsche Telekom AG | | | | | 4,014 | | | | | | 73 | |
| | | | |
Telefonica Deutschland Holding AG | | | | | 55,120 | | | | | | 152 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 225 | |
| | | | | | | | | | | | |
| |
| CONSUMER DISCRETIONARY 0.6% | |
| | | | |
Bayerische Motoren Werke AG | | | | | 2,809 | | | | | | 248 | |
| | | | |
Daimler AG | | | | | 9,708 | | | | | | 688 | |
| | | | |
TUI AG | | | | | 5,173 | | | | | | 32 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 968 | |
| | | | | | | | | | | | |
| |
| | | | | | |
| 22 | | PIMCO EQUITY SERIES | | | | See Accompanying Notes |
(Unaudited)
December 31, 2020
| | | | | | | | | | | | |
| | | | | SHARES | | | | | MARKET
VALUE
(000S) | |
| CONSUMER STAPLES 0.1% | |
| | | | |
Metro AG | | | | | 20,974 | | | $ | | | 236 | |
| | | | | | | | | | | | |
| |
| FINANCIALS 0.1% | |
| | | | |
Muenchener Rueckversicherungs-Gesellschaft AG in Muenchen | | | | | 670 | | | | | | 199 | |
| | | | | | | | | | | | |
| |
| HEALTH CARE 0.0% | |
| | | | |
Bayer AG | | | | | 1,204 | | | | | | 71 | |
| | | | | | | | | | | | |
| |
| INDUSTRIALS 0.4% | |
| | | | |
Deutsche Lufthansa AG | | | | | 5,089 | | | | | | 67 | |
| | | | |
Deutsche Post AG | | | | | 1,607 | | | | | | 80 | |
| | | | |
Hochtief AG | | | | | 1,043 | | | | | | 101 | |
| | | | |
Siemens AG | | | | | 3,102 | | | | | | 447 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 695 | |
| | | | | | | | | | | | |
| |
| MATERIALS 0.9% | |
| | | | |
Aurubis AG | | | | | 1,248 | | | | | | 97 | |
| | | | |
BASF SE | | | | | 17,071 | | | | | | 1,349 | |
| | | | |
Covestro AG | | | | | 2,657 | | | | | | 164 | |
| | | | |
Evonik Industries AG | | | | | 1,497 | | | | | | 49 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 1,659 | |
| | | | | | | | | | | | |
| |
| UTILITIES 0.1% | |
| | | | |
E.ON SE | | | | | 9,892 | | | | | | 110 | |
| | | | | | | | | | | | |
Total Germany | | | | | | | | | | | 4,163 | |
| | | | | | | | | | | | |
| |
| HONG KONG 0.1% | |
| |
| CONSUMER DISCRETIONARY 0.0% | |
| | | | |
Yue Yuen Industrial Holdings Ltd. | | | | | 25,000 | | | | | | 52 | |
| | | | | | | | | | | | |
| |
| INDUSTRIALS 0.0% | |
| | | | |
CK Hutchison Holdings Ltd. | | | | | 2,500 | | | | | | 17 | |
| | | | | | | | | | | | |
| |
| INFORMATION TECHNOLOGY 0.1% | |
| | | | |
VTech Holdings Ltd. | | | | | 7,300 | | | | | | 57 | |
| | | | | | | | | | | | |
| |
| REAL ESTATE 0.0% | |
| | | | |
Shimao Property Holdings Ltd. | | | | | 13,500 | | | | | | 43 | |
| | | | | | | | | | | | |
Total Hong Kong | | | | | | | | | | | 169 | |
| | | | | | | | | | | | |
| | | | | | | | | | | | |
| | | | | SHARES | | | | | MARKET
VALUE
(000S) | |
| ITALY 1.2% | |
| |
| ENERGY 0.4% | |
| | | | |
Eni SpA | | | | | 70,677 | | | $ | | | 738 | |
| | | | | | | | | | | | |
| |
| FINANCIALS 0.6% | |
| | | | |
Assicurazioni Generali SpA | | | | | 1,767 | | | | | | 31 | |
| | | | |
Intesa Sanpaolo SpA | | | | | 437,067 | | | | | | 1,033 | |
| | | | |
Poste Italiane SpA | | | | | 3,413 | | | | | | 35 | |
| | | | |
UnipolSai Assicurazioni SpA | | | | | 13,308 | | | | | | 35 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 1,134 | |
| | | | | | | | | | | | |
| |
| UTILITIES 0.2% | |
| | | | |
Enel SpA | | | | | 28,776 | | | | | | 293 | |
| | | | | | | | | | | | |
Total Italy | | | | | | | | | | | 2,165 | |
| | | | | | | | | | | | |
| |
| JAPAN 9.9% | |
| |
| COMMUNICATION SERVICES 1.0% | |
| | | | |
KDDI Corp. | | | | | 6,000 | | | | | | 178 | |
| | | | |
Nippon Telegraph & Telephone Corp. | | | | | 21,000 | | | | | | 538 | |
| | | | |
Softbank Corp. | | | | | 79,500 | | | | | | 998 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 1,714 | |
| | | | | | | | | | | | |
| |
| CONSUMER DISCRETIONARY 1.0% | |
| | | | |
Bridgestone Corp. | | | | | 4,200 | | | | | | 138 | |
| | | | |
Honda Motor Co. Ltd. | | | | | 4,600 | | | | | | 130 | |
| | | | |
Isuzu Motors Ltd. | | | | | 7,800 | | | | | | 74 | |
| | | | |
Mazda Motor Corp. | | | | | 1,900 | | | | | | 13 | |
| | | | |
Nissan Motor Co. Ltd. | | | | | 52,900 | | | | | | 287 | |
| | | | |
Panasonic Corp. | | | | | 31,500 | | | | | | 367 | |
| | | | |
Sekisui House Ltd. | | | | | 12,000 | | | | | | 244 | |
| | | | |
Subaru Corp. | | | | | 16,100 | | | | | | 322 | |
| | | | |
Yamaha Motor Co. Ltd. | | | | | 7,300 | | | | | | 149 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 1,724 | |
| | | | | | | | | | | | |
| |
| CONSUMER STAPLES 1.0% | |
| | | | |
Japan Tobacco, Inc. | | | | | 80,500 | | | | | | 1,641 | |
| | | | |
Kirin Holdings Co. Ltd. | | | | | 8,500 | | | | | | 201 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 1,842 | |
| | | | | | | | | | | | |
| |
| ENERGY 0.2% | |
| | | | |
Idemitsu Kosan Co. Ltd. | | | | | 6,900 | | | | | | 152 | |
| | | | | | |
| See Accompanying Notes | | SEMIANNUAL REPORT | | DECEMBER 31, 2020 | | 23 |
Schedule of Investments PIMCO Dividend and Income Fund (Cont.)
| | | | | | | | | | | | |
| | | | | SHARES | | | | | MARKET
VALUE
(000S) | |
| | | | |
JXTG Holdings, Inc. | | | | | 57,000 | | | $ | | | 205 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 357 | |
| | | | | | | | | | | | |
| |
| FINANCIALS 2.0% | |
| | | | |
Aozora Bank Ltd. | | | | | 3,300 | | | | | | 61 | |
| | | | |
Japan Post Holdings Co. Ltd. | | | | | 39,600 | | | | | | 308 | |
| | | | |
Mitsubishi UFJ Financial Group, Inc. | | | | | 169,800 | | | | | | 752 | |
| | | | |
Mizuho Financial Group, Inc. | | | | | 31,330 | | | | | | 398 | |
| | | | |
MS&AD Insurance Group Holdings, Inc. | | | | | 5,900 | | | | | | 180 | |
| | | | |
ORIX Corp. | | | | | 17,100 | | | | | | 263 | |
| | | | |
Resona Holdings, Inc. | | | | | 31,800 | | | | | | 111 | |
| | | | |
Sumitomo Mitsui Financial Group, Inc. | | | | | 48,500 | | | | | | 1,503 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 3,576 | |
| | | | | | | | | | | | |
| |
| HEALTH CARE 0.2% | |
| | | | |
Astellas Pharma, Inc. | | | | | 5,700 | | | | | | 88 | |
| | | | |
Takeda Pharmaceutical Co. Ltd. | | | | | 4,800 | | | | | | 174 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 262 | |
| | | | | | | | | | | | |
| |
| INDUSTRIALS 2.5% | |
| | | | |
Amada Co. Ltd. | | | | | 8,900 | | | | | | 98 | |
| | | | |
Asahi Glass Co. Ltd. | | | | | 2,200 | | | | | | 77 | |
| | | | |
ITOCHU Corp. | | | | | 7,400 | | | | | | 213 | |
| | | | |
Kajima Corp. | | | | | 2,000 | | | | | | 27 | |
| | | | |
Komatsu Ltd. | | | | | 11,400 | | | | | | 315 | |
| | | | |
Marubeni Corp. | | | | | 79,900 | | | | | | 532 | |
| | | | |
Mitsubishi Corp. | | | | | 72,400 | | | | | | 1,785 | |
| | | | |
Mitsubishi Electric Corp. | | | | | 2,700 | | | | | | 41 | |
| | | | |
Mitsubishi Heavy Industries Ltd. | | | | | 8,200 | | | | | | 251 | |
| | | | |
Mitsui & Co. Ltd. | | | | | 7,500 | | | | | | 137 | |
| | | | |
NSK Ltd. | | | | | 23,300 | | | | | | 203 | |
| | | | |
Sojitz Corp. | | | | | 55,300 | | | | | | 123 | |
| | | | |
Sumitomo Corp. | | | | | 53,300 | | | | | | 706 | |
| | | | |
Taisei Corp. | | | | | 400 | | | | | | 14 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 4,522 | |
| | | | | | | | | | | | |
| |
| INFORMATION TECHNOLOGY 1.5% | |
| | | | |
Canon, Inc. | | | | | 99,200 | | | | | | 1,922 | |
| | | | |
Hitachi Ltd. | | | | | 3,900 | | | | | | 154 | |
| | | | |
Konica Minolta, Inc. | | | | | 20,400 | | | | | | 78 | |
| | | | | | | | | | | | |
| | | | | SHARES | | | | | MARKET
VALUE
(000S) | |
| | | | |
Mixi, Inc. | | | | | 5,900 | | | $ | | | 147 | |
| | | | |
Nippon Electric Glass Co. Ltd. | | | | | 6,500 | | | | | | 142 | |
| | | | |
Seiko Epson Corp. | | | | | 12,000 | | | | | | 178 | |
| | | | |
Tokyo Electron Ltd. | | | | | 200 | | | | | | 75 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 2,696 | |
| | | | | | | | | | | | |
| |
| MATERIALS 0.3% | |
| | | | |
JFE Holdings, Inc. | | | | | 3,000 | | | | | | 29 | |
| | | | |
Mitsubishi Chemical Holdings Corp. | | | | | 20,900 | | | | | | 126 | |
| | | | |
Mitsubishi Gas Chemical Co., Inc. | | | | | 3,600 | | | | | | 83 | |
| | | | |
Mitsui Chemicals, Inc. | | | | | 500 | | | | | | 15 | |
| | | | |
Nitto Denko Corp. | | | | | 1,000 | | | | | | 89 | |
| | | | |
Showa Denko KK | | | | | 600 | | | | | | 13 | |
| | | | |
Sumitomo Chemical Co. Ltd. | | | | | 20,500 | | | | | | 83 | |
| | | | |
Ube Industries Ltd. | | | | | 7,600 | | | | | | 138 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 576 | |
| | | | | | | | | | | | |
| |
| REAL ESTATE 0.2% | |
| | | | |
Daito Trust Construction Co. Ltd. | | | | | 3,400 | | | | | | 317 | |
| | | | |
Daiwa House Industry Co. Ltd. | | | | | 800 | | | | | | 24 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 341 | |
| | | | | | | | | | | | |
| |
| UTILITIES 0.0% | |
| | | | |
Tohoku Electric Power Co., Inc. | | | | | 6,500 | | | | | | 54 | |
| | | | | | | | | | | | |
Total Japan | | | | | | | | | | | 17,664 | |
| | | | | | | | | | | | |
| |
| LUXEMBOURG 0.0% | |
| |
| MATERIALS 0.0% | |
| | | | |
Ternium S.A. SP - ADR (c) | | | | | 1,427 | | | | | | 42 | |
| | | | | | | | | | | | |
Total Luxembourg | | | | | | | | | | | 42 | |
| | | | | | | | | | | | |
| |
| MEXICO 0.0% | |
| |
| CONSUMER DISCRETIONARY 0.0% | |
| | | | |
Desarrolladora Homex S.A.B. de C.V. (c) | | | | | 41,996 | | | | | | 0 | |
| | | | | | | | | | | | |
Total Mexico | | | | | | | | | | | 0 | |
| | | | | | | | | | | | |
| |
| | | | | | |
| 24 | | PIMCO EQUITY SERIES | | | | See Accompanying Notes |
(Unaudited)
December 31, 2020
| | | | | | | | | | | | |
| | | | | SHARES | | | | | MARKET
VALUE
(000S) | |
| NETHERLANDS 1.0% | |
| |
| COMMUNICATION SERVICES 0.1% | |
| | | | |
Koninklijke KPN NV | | | | | 18,763 | | | $ | | | 57 | |
| | | | |
VEON Ltd. ADR | | | | | 107,413 | | | | | | 162 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 219 | |
| | | | | | | | | | | | |
| |
| CONSUMER STAPLES 0.1% | |
| | | | |
Koninklijke Ahold Delhaize NV | | | | | 3,570 | | | | | | 101 | |
| | | | | | | | | | | | |
| |
| ENERGY 0.3% | |
| | | | |
Royal Dutch Shell PLC ‘A’ | | | | | 26,210 | | | | | | 460 | |
| | | | | | | | | | | | |
| |
| FINANCIALS 0.5% | |
| | | | |
ABN AMRO Bank NV | | | | | 17,370 | | | | | | 170 | |
| | | | |
Aegon NV | | | | | 17,593 | | | | | | 70 | |
| | | | |
ASR Nederland NV | | | | | 882 | | | | | | 35 | |
| | | | |
ING Groep NV | | | | | 17,893 | | | | | | 167 | |
| | | | |
NN Group NV | | | | | 12,676 | | | | | | 548 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 990 | |
| | | | | | | | | | | | |
| |
| INDUSTRIALS 0.0% | |
| | | | |
Randstad NV | | | | | 206 | | | | | | 13 | |
| | | | |
Signify NV (c) | | | | | 1,119 | | | | | | 47 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 60 | |
| | | | | | | | | | | | |
Total Netherlands | | | | | | | | | | | 1,830 | |
| | | | | | | | | | | | |
| |
| NEW ZEALAND 0.0% | |
| |
| UTILITIES 0.0% | |
| | | | |
Contact Energy Ltd. | | | | | 4,118 | | | | | | 27 | |
| | | | | | | | | | | | |
Total New Zealand | | | | | | | | | | | 27 | |
| | | | | | | | | | | | |
| |
| NORWAY 0.3% | |
| |
| COMMUNICATION SERVICES 0.1% | |
| | | | |
Telenor ASA | | | | | 6,550 | | | | | | 111 | |
| | | | | | | | | | | | |
| |
| ENERGY 0.2% | |
| | | | |
Equinor ASA | | | | | 20,891 | | | | | | 353 | |
| | | | | | | | | | | | |
| |
| MATERIALS 0.0% | |
| | | | |
Norsk Hydro ASA | | | | | 7,721 | | | | | | 36 | |
| | | | | | | | | | | | |
Total Norway | | | | | | | | | | | 500 | |
| | | | | | | | | | | | |
| | | | | | | | | | | | |
| | | | | SHARES | | | | | MARKET
VALUE
(000S) | |
| PORTUGAL 0.0% | |
| |
| UTILITIES 0.0% | |
| | | | |
EDP - Energias de Portugal S.A. | | | | | 10,879 | | | $ | | | 68 | |
| | | | | | | | | | | | |
Total Portugal | | | | | | | | | | | 68 | |
| | | | | | | | | | | | |
| |
| SPAIN 3.6% | |
| |
| COMMUNICATION SERVICES 0.9% | |
| | | | |
Telefonica S.A. | | | | | 388,173 | | | | | | 1,544 | |
| | | | | | | | | | | | |
| |
| ENERGY 0.9% | |
| | | | |
Repsol S.A. | | | | | 162,550 | | | | | | 1,638 | |
| | | | | | | | | | | | |
| |
| FINANCIALS 1.1% | |
| | | | |
Banco Bilbao Vizcaya Argentaria S.A. | | | | | 298,166 | | | | | | 1,478 | |
| | | | |
Bankia S.A. | | | | | 164,517 | | | | | | 293 | |
| | | | |
Mapfre S.A. | | | | | 97,677 | | | | | | 191 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 1,962 | |
| | | | | | | | | | | | |
| |
| INDUSTRIALS 0.2% | |
| | | | |
ACS Actividades de Construccion Y Servicios S.A. | | | | | 12,381 | | | | | | 411 | |
| | | | | | | | | | | | |
| |
| UTILITIES 0.5% | |
| | | | |
Endesa S.A. | | | | | 13,576 | | | | | | 372 | |
| | | | |
Naturgy Energy Group S.A. | | | | | 19,732 | | | | | | 459 | |
| | | | |
Red Electrica Corp. S.A. | | | | | 3,550 | | | | | | 73 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 904 | |
| | | | | | | | | | | | |
Total Spain | | | | | | | | | | | 6,459 | |
| | | | | | | | | | | | |
| |
| SWEDEN 0.5% | |
| |
| COMMUNICATION SERVICES 0.0% | |
| | | | |
Telia Co. AB | | | | | 3,314 | | | | | | 14 | |
| | | | | | | | | | | | |
| |
| CONSUMER DISCRETIONARY 0.1% | |
| | | | |
Hennes & Mauritz AB ‘B’ (c) | | | | | 3,841 | | | | | | 81 | |
| | | | | | | | | | | | |
| |
| FINANCIALS 0.4% | |
| | | | |
Skandinaviska Enskilda Banken AB ‘A’ (c) | | | | | 4,168 | | | | | | 43 | |
| | | | |
Swedbank AB ‘A’ (c) | | | | | 40,453 | | | | | | 709 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 752 | |
| | | | | | | | | | | | |
Total Sweden | | | | | | | | | | | 847 | |
| | | | | | | | | | | | |
| | | | | | |
| See Accompanying Notes | | SEMIANNUAL REPORT | | DECEMBER 31, 2020 | | 25 |
Schedule of Investments PIMCO Dividend and Income Fund (Cont.)
| | | | | | | | | | | | |
| | | | | SHARES | | | | | MARKET
VALUE
(000S) | |
| SWITZERLAND 2.1% | |
| |
| CONSUMER STAPLES 0.1% | |
| | | | |
Nestle S.A. | | | | | 1,336 | | | $ | | | 158 | |
| | | | | | | | | | | | |
| |
| FINANCIALS 1.0% | |
| | | | |
Swiss Re AG | | | | | 9,187 | | | | | | 865 | |
| | | | |
Zurich Insurance Group AG | | | | | 2,308 | | | | | | 973 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 1,838 | |
| | | | | | | | | | | | |
| |
| HEALTH CARE 0.6% | |
| | | | |
Novartis AG | | | | | 3,359 | | | | | | 316 | |
| | | | |
Roche Holding AG | | | | | 1,941 | | | | | | 676 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 992 | |
| | | | | | | | | | | | |
| |
| INDUSTRIALS 0.4% | |
| | | | |
ABB Ltd. | | | | | 12,046 | | | | | | 338 | |
| | | | |
Adecco Group AG | | | | | 4,886 | | | | | | 326 | |
| | | | |
Siemens Energy AG (c) | | | | | 794 | | | | | | 29 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 693 | |
| | | | | | | | | | | | |
Total Switzerland | | | | | | | | | | | 3,681 | |
| | | | | | | | | | | | |
| |
| UNITED KINGDOM 4.2% | |
| |
| COMMUNICATION SERVICES 0.3% | |
| | | | |
BT Group PLC | | | | | 167,932 | | | | | | 303 | |
| | | | |
Vodafone Group PLC | | | | | 78,121 | | | | | | 128 | |
| | | | |
WPP PLC | | | | | 7,749 | | | | | | 84 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 515 | |
| | | | | | | | | | | | |
| |
| CONSUMER DISCRETIONARY 0.2% | |
| | | | |
Fiat Chrysler Automobiles NV (c) | | | | | 3,199 | | | | | | 58 | |
| | | | |
Kingfisher PLC | | | | | 3,692 | | | | | | 14 | |
| | | | |
Marks & Spencer Group PLC | | | | | 20,175 | | | | | | 37 | |
| | | | |
Persimmon PLC | | | | | 8,365 | | | | | | 316 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 425 | |
| | | | | | | | | | | | |
| |
| CONSUMER STAPLES 1.4% | |
| | | | |
British American Tobacco PLC | | | | | 24,162 | | | | | | 897 | |
| | | | |
Imperial Brands PLC | | | | | 78,771 | | | | | | 1,652 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 2,549 | |
| | | | | | | | | | | | |
| |
| | | | | | | | | | | | |
| | | | | SHARES | | | | | MARKET
VALUE
(000S) | |
| ENERGY 0.1% | |
| | | | |
BP PLC | | | | | 55,162 | | | $ | | | 190 | |
| | | | | | | | | | | | |
| |
| FINANCIALS 0.3% | |
| | | | |
HSBC Holdings PLC | | | | | 17,916 | | | | | | 93 | |
| | | | |
Legal & General Group PLC | | | | | 24,085 | | | | | | 88 | |
| | | | |
M&G PLC | | | | | 32,643 | | | | | | 88 | |
| | | | |
Standard Life Aberdeen PLC | | | | | 66,299 | | | | | | 254 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 523 | |
| | | | | | | | | | | | |
| |
| INDUSTRIALS 0.2% | |
| | | | |
Royal Mail PLC | | | | | 78,043 | | | | | | 360 | |
| | | | | | | | | | | | |
| |
| MATERIALS 1.5% | |
| | | | |
Amcor PLC | | | | | 8,148 | | | | | | 96 | |
| | | | |
Evraz PLC | | | | | 42,172 | | | | | | 269 | |
| | | | |
Rio Tinto PLC | | | | | 29,798 | | | | | | 2,243 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 2,608 | |
| | | | | | | | | | | | |
| |
| UTILITIES 0.2% | |
| | | | |
Centrica PLC | | | | | 282,966 | | | | | | 179 | |
| | | | |
SSE PLC | | | | | 4,919 | | | | | | 101 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 280 | |
| | | | | | | | | | | | |
Total United Kingdom | | | | | | | | | | | 7,450 | |
| | | | | | | | | | | | |
| |
| UNITED STATES 35.0% | |
| |
| COMMUNICATION SERVICES 4.6% | |
| | | | |
AT&T, Inc. | | | | | 125,759 | | | | | | 3,617 | |
| | | | |
CenturyLink, Inc. | | | | | 250,471 | | | | | | 2,442 | |
| | | | |
Clear Channel Outdoor Holdings, Inc. (c) | | | | | 29,821 | | | | | | 49 | |
| | | | |
iHeartMedia, Inc. ‘A’ (c) | | | | | 1,656 | | | | | | 21 | |
| | | | |
iHeartMedia, Inc. ���B’ «(c) | | | | | 23 | | | | | | 0 | |
| | | | |
Omnicom Group, Inc. | | | | | 763 | | | | | | 48 | |
| | | | |
Verizon Communications, Inc. | | | | | 33,769 | | | | | | 1,984 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 8,161 | |
| | | | | | | | | | | | |
| |
| CONSUMER DISCRETIONARY 2.7% | |
| | | | |
Bed Bath & Beyond, Inc. | | | | | 21,697 | | | | | | 385 | |
| | | | |
Foot Locker, Inc. | | | | | 478 | | | | | | 19 | |
| | | | |
Ford Motor Co. | | | | | 121,188 | | | | | | 1,065 | |
| | | | |
Gap, Inc. | | | | | 6,110 | | | | | | 123 | |
| | | | | | |
| 26 | | PIMCO EQUITY SERIES | | | | See Accompanying Notes |
(Unaudited)
December 31, 2020
| | | | | | | | | | | | |
| | | | | SHARES | | | | | MARKET
VALUE
(000S) | |
| | | | |
General Motors Co. | | | | | 2,822 | | | $ | | | 118 | |
| | | | |
Home Depot, Inc. | | | | | 51 | | | | | | 14 | |
| | | | |
Kohl’s Corp. | | | | | 12,812 | | | | | | 521 | |
| | | | |
L Brands, Inc. | | | | | 7,771 | | | | | | 289 | |
| | | | |
Las Vegas Sands Corp. | | | | | 3,205 | | | | | | 191 | |
| | | | |
Macy’s, Inc. | | | | | 130,403 | | | | | | 1,467 | |
| | | | |
McDonald’s Corp. | | | | | 336 | | | | | | 72 | |
| | | | |
Newell Brands, Inc. | | | | | 13,147 | | | | | | 279 | |
| | | | |
Nordstrom, Inc. | | | | | 2,276 | | | | | | 71 | |
| | | | |
Tapestry, Inc. | | | | | 1,151 | | | | | | 36 | |
| | | | |
Target Corp. | | | | | 576 | | | | | | 102 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 4,752 | |
| | | | | | | | | | | | |
| |
| CONSUMER STAPLES 4.8% | |
| | | | |
Altria Group, Inc. | | | | | 100,230 | | | | | | 4,109 | |
| | | | |
Archer-Daniels-Midland Co. | | | | | 3,042 | | | | | | 153 | |
| | | | |
Bunge Ltd. | | | | | 1,160 | | | | | | 76 | |
| | | | |
Coca-Cola Co. | | | | | 3,012 | | | | | | 165 | |
| | | | |
General Mills, Inc. | | | | | 2,033 | | | | | | 120 | |
| | | | |
Kraft Heinz Co. | | | | | 16,550 | | | | | | 574 | |
| | | | |
PepsiCo, Inc. | | | | | 397 | | | | | | 59 | |
| | | | |
Philip Morris International, Inc. | | | | | 37,595 | | | | | | 3,112 | |
| | | | |
Procter & Gamble Co. | | | | | 359 | | | | | | 50 | |
| | | | |
Walgreens Boots Alliance, Inc. | | | | | 4,355 | | | | | | 174 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 8,592 | |
| | | | | | | | | | | | |
| |
| ENERGY 7.8% | |
| | | | |
Chevron Corp. | | | | | 17,714 | | | | | | 1,496 | |
| | | | |
ConocoPhillips | | | | | 1,801 | | | | | | 72 | |
| | | | |
Exxon Mobil Corp. | | | | | 119,982 | | | | | | 4,946 | |
| | | | |
Helmerich & Payne, Inc. | | | | | 9,805 | | | | | | 227 | |
| | | | |
HollyFrontier Corp. | | | | | 1,655 | | | | | | 43 | |
| | | | |
Kinder Morgan, Inc. | | | | | 23,208 | | | | | | 317 | |
| | | | |
Marathon Petroleum Corp. | | | | | 1,862 | | | | | | 77 | |
| | | | |
Occidental Petroleum Corp. | | | | | 159,806 | | | | | | 2,766 | |
| | | | |
ONEOK, Inc. | | | | | 9,922 | | | | | | 381 | |
| | | | |
Phillips 66 | | | | | 4,312 | | | | | | 302 | |
| | | | |
Schlumberger NV | | | | | 66,267 | | | | | | 1,447 | |
| | | | |
Targa Resources Corp. | | | | | 16,503 | | | | | | 435 | |
| | | | |
Valero Energy Corp. | | | | | 16,994 | | | | | | 961 | |
| | | | |
Williams Cos., Inc. | | | | | 23,315 | | | | | | 467 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 13,937 | |
| | | | | | | | | | | | |
| | | | | | | | | | | | |
| | | | | | | | | | | | |
| | | | | SHARES | | | | | MARKET
VALUE
(000S) | |
| FINANCIALS 2.0% | |
| | | | |
American International Group, Inc. | | | | | 1,169 | | | $ | | | 44 | |
| | | | |
Blackstone Group, Inc. | | | | | 1,247 | | | | | | 81 | |
| | | | |
CIT Group, Inc. | | | | | 735 | | | | | | 26 | |
| | | | |
Comerica, Inc. | | | | | 1,713 | | | | | | 96 | |
| | | | |
Fifth Third Bancorp | | | | | 5,924 | | | | | | 163 | |
| | | | |
Franklin Resources, Inc. | | | | | 8,459 | | | | | | 211 | |
| | | | |
Huntington Bancshares, Inc. | | | | | 2,911 | | | | | | 37 | |
| | | | |
Invesco Ltd. | | | | | 36,838 | | | | | | 642 | |
| | | | |
KeyCorp. | | | | | 5,481 | | | | | | 90 | |
| | | | |
MetLife, Inc. | | | | | 4,350 | | | | | | 204 | |
| | | | |
Navient Corp. | | | | | 12,730 | | | | | | 125 | |
| | | | |
PNC Financial Services Group, Inc. | | | | | 944 | | | | | | 141 | |
| | | | |
Principal Financial Group, Inc. | | | | | 5,872 | | | | | | 291 | |
| | | | |
Prudential Financial, Inc. | | | | | 6,528 | | | | | | 510 | |
| | | | |
U.S. Bancorp | | | | | 367 | | | | | | 17 | |
| | | | |
Unum Group | | | | | 2,454 | | | | | | 56 | |
| | | | |
Wells Fargo & Co. | | | | | 29,803 | | | | | | 900 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 3,634 | |
| | | | | | | | | | | | |
| |
| HEALTH CARE 6.1% | |
| | | | |
AbbVie, Inc. | | | | | 39,152 | | | | | | 4,195 | |
| | | | |
Amgen, Inc. | | | | | 2,541 | | | | | | 584 | |
| | | | |
Bristol-Myers Squibb Co. | | | | | 4,207 | | | | | | 261 | |
| | | | |
Cardinal Health, Inc. | | | | | 4,456 | | | | | | 239 | |
| | | | |
Eli Lilly & Co. | | | | | 322 | | | | | | 54 | |
| | | | |
Gilead Sciences, Inc. | | | | | 23,419 | | | | | | 1,365 | |
| | | | |
Johnson & Johnson | | | | | 6,252 | | | | | | 984 | |
| | | | |
Merck & Co., Inc. | | | | | 7,124 | | | | | | 583 | |
| | | | |
Pfizer, Inc. | | | | | 73,811 | | | | | | 2,717 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 10,982 | |
| | | | | | | | | | | | |
| |
| INDUSTRIALS 1.2% | |
| | | | |
3M Co. | | | | | 5,352 | | | | | | 936 | |
| | | | |
Caterpillar, Inc. | | | | | 651 | | | | | | 119 | |
| | | | |
Cummins, Inc. | | | | | 461 | | | | | | 105 | |
| | | | |
Eaton Corp. PLC | | | | | 1,784 | | | | | | 214 | |
| | | | |
Emerson Electric Co. | | | | | 1,234 | | | | | | 99 | |
| | | | |
Illinois Tool Works, Inc. | | | | | 477 | | | | | | 97 | |
| | | | |
Lockheed Martin Corp. | | | | | 127 | | | | | | 45 | |
| | | | |
ManpowerGroup, Inc. | | | | | 521 | | | | | | 47 | |
| | | | |
Neilsen Holdings PLC | | | | | 3,163 | | | | | | 66 | |
| | | | | | |
| See Accompanying Notes | | SEMIANNUAL REPORT | | DECEMBER 31, 2020 | | 27 |
Schedule of Investments PIMCO Dividend and Income Fund (Cont.)
| | | | | | | | | | | | |
| | | | | SHARES | | | | | MARKET
VALUE
(000S) | |
| | | | |
Neiman Marcus Group Ltd. LLC «(i) | | | | | 1,124 | | | $ | | | 102 | |
| | | | |
Noble Corp. PLC «(i) | | | | | 380 | | | | | | 3 | |
| | | | |
Union Pacific Corp. | | | | | 358 | | | | | | 75 | |
| | | | |
United Parcel Service, Inc. ‘B’ | | | | | 1,487 | | | | | | 250 | |
| | | | |
Westmoreland Mining Holdings LLC «(i) | | | | | 53 | | | | | | 0 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 2,158 | |
| | | | | | | | | | | | |
| |
| INFORMATION TECHNOLOGY 3.5% | |
| | | | |
Broadcom, Inc. | | | | | 577 | | | | | | 253 | |
| | | | |
Cisco Systems, Inc. | | | | | 12,321 | | | | | | 551 | |
| | | | |
Corning, Inc. | | | | | 3,692 | | | | | | 133 | |
| | | | |
Hewlett Packard Enterprise Co. | | | | | 3,892 | | | | | | 46 | |
| | | | |
HP, Inc. | | | | | 6,238 | | | | | | 153 | |
| | | | |
International Business Machines Corp. | | | | | 29,805 | | | | | | 3,752 | |
| | | | |
Juniper Networks, Inc. | | | | | 3,109 | | | | | | 70 | |
| | | | |
NetApp, Inc. | | | | | 1,807 | | | | | | 120 | |
| | | | |
QUALCOMM, Inc. | | | | | 3,400 | | | | | | 518 | |
| | | | |
Seagate Technology PLC | | | | | 7,324 | | | | | | 455 | |
| | | | |
Texas Instruments, Inc. | | | | | 1,138 | | | | | | 187 | |
| | | | |
Western Digital Corp. | | | | | 1,029 | | | | | | 57 | |
| | | | |
Xerox Holdings Corp. | | | | | 2,444 | | | | | | 57 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 6,352 | |
| | | | | | | | | | | | |
| |
| MATERIALS 1.5% | |
| | | | |
Dow, Inc. | | | | | 8,252 | | | | | | 458 | |
| | | | |
Eastman Chemical Co. | | | | | 737 | | | | | | 74 | |
| | | | |
International Paper Co. | | | | | 12,407 | | | | | | 617 | |
| | | | |
LyondellBasell Industries NV ‘A’ | | | | | 15,081 | | | | | | 1,382 | |
| | | | |
WestRock Co. | | | | | 2,896 | | | | | | 126 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 2,657 | |
| | | | | | | | | | | | |
| |
| UTILITIES 0.8% | |
| | | | |
Dominion Energy, Inc. | | | | | 5,171 | | | | | | 389 | |
| | | | |
Duke Energy Corp. | | | | | 2,703 | | | | | | 248 | |
| | | | |
Exelon Corp. | | | | | 3,106 | | | | | | 131 | |
| | | | |
PPL Corp. | | | | | 15,563 | | | | | | 439 | |
| | | | |
Southern Co. | | | | | 4,204 | | | | | | 258 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 1,465 | |
| | | | | | | | | | | | |
Total United States | | | | | | | | | | | 62,690 | |
| | | | | | | | | | | | |
Total Common Stocks
(Cost $110,993) | | | 128,385 | |
| | | | |
| | | | | | | | | | | | |
| | | | | PRINCIPAL
AMOUNT
(000S) | | | | | MARKET
VALUE
(000S) | |
| CONVERTIBLE BONDS & NOTES 0.0% | |
| |
| JERSEY, CHANNEL ISLANDS 0.0% | |
| |
| UTILITIES 0.0% | |
|
Ensco Jersey Finance Ltd. | |
3.000% due 01/31/2024 ^(b) | | $ | | | 2 | | | $ | | | 0 | |
| | | | | | | | | | | | |
Total Convertible Bonds & Notes (Cost $1) | | | 0 | |
| | | | |
| |
| CORPORATE BONDS & NOTES 8.8% | |
| |
| ARGENTINA 0.0% | |
| |
| INDUSTRIALS 0.0% | |
|
YPF S.A. | |
38.259% (BADLARPP + 6.000%) due 03/04/2021 ~ | | ARS | | | 700 | | | | | | 5 | |
| | | | | | | | | | | | |
Total Argentina | | | | | | | | | | | 5 | |
| | | | | | | | | | | | |
| |
| BERMUDA 0.0% | |
| |
| INDUSTRIALS 0.0% | |
|
NCL Corp. Ltd. | |
3.625% due 12/15/2024 | | $ | | | 2 | | | | | | 2 | |
| | | | | | | | | | | | |
Total Bermuda | | | | | | | | | | | 2 | |
| | | | | | | | | | | | |
| |
| BRAZIL 0.3% | |
| |
| INDUSTRIALS 0.0% | |
|
Odebrecht Oil & Gas Finance Ltd. | |
0.000% due 02/01/2021 (d)(g) | | | | | 46 | | | | | | 0 | |
|
Vale Overseas Ltd. | |
6.875% due 11/21/2036 | | | | | 10 | | | | | | 15 | |
6.250% due 08/10/2026 | | | | | 23 | | | | | | 28 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 43 | |
| | | | | | | | | | | | |
| |
| UTILITIES 0.3% | |
|
Petrobras Global Finance BV | |
6.250% due 12/14/2026 | | GBP | | | 100 | | | | | | 163 | |
5.093% due 01/15/2030 | | $ | | | 253 | | | | | | 283 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 446 | |
| | | | | | | | | | | | |
Total Brazil | | | | | | | | | | | 489 | |
| | | | | | | | | | | | |
| |
| CANADA 0.1% | |
| |
| BANKING & FINANCE 0.0% | |
|
Brookfield Finance, Inc. | |
4.700% due 09/20/2047 | | | | | 20 | | | | | | 25 | |
|
Fairfax Financial Holdings Ltd. | |
4.850% due 04/17/2028 | | | | | 6 | | | | | | 7 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 32 | |
| | | | | | | | | | | | |
| | | | | | |
| 28 | | PIMCO EQUITY SERIES | | | | See Accompanying Notes |
(Unaudited)
December 31, 2020
| | | | | | | | | | | | |
| | | | | PRINCIPAL
AMOUNT
(000S) | | | | | MARKET
VALUE
(000S) | |
| INDUSTRIALS 0.1% | |
|
B.C. Unlimited Liability Co. | |
4.250% due 05/15/2024 | | $ | | | 15 | | | $ | | | 15 | |
|
Bombardier, Inc. | |
7.875% due 04/15/2027 | | | | | 39 | | | | | | 36 | |
6.125% due 01/15/2023 | | | | | 2 | | | | | | 2 | |
7.500% due 03/15/2025 | | | | | 2 | | | | | | 2 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 55 | |
| | | | | | | | | | | | |
Total Canada | | | | | | | | | | | 87 | |
| | | | | | | | | | | | |
| |
| CAYMAN ISLANDS 0.8% | |
| |
| BANKING & FINANCE 0.8% | |
|
Ambac LSNI LLC | |
6.000% due 02/12/2023 • | | | | | 72 | | | | | | 72 | |
|
Avolon Holdings Funding Ltd. | |
5.500% due 01/15/2023 | | | | | 18 | | | | | | 19 | |
5.125% due 10/01/2023 | | | | | 16 | | | | | | 17 | |
2.875% due 02/15/2025 | | | | | 16 | | | | | | 16 | |
3.250% due 02/15/2027 | | | | | 4 | | | | | | 4 | |
|
Park Aerospace Holdings Ltd. | |
5.250% due 08/15/2022 | | | | | 307 | | | | | | 322 | |
5.500% due 02/15/2024 | | | | | 9 | | | | | | 10 | |
3.625% due 03/15/2021 | | | | | 13 | | | | | | 13 | |
4.500% due 03/15/2023 | | | | | 21 | | | | | | 22 | |
|
U.S. Capital Funding Ltd. | |
0.504% due 07/10/2043 • | | | | | 936 | | | | | | 815 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 1,310 | |
| | | | | | | | | | | | |
| |
| INDUSTRIALS 0.0% | |
|
Noble Holding International Ltd. | |
7.875% due 02/01/2026 ^(b) | | | | | 26 | | | | | | 10 | |
|
Transocean, Inc. | |
7.500% due 01/15/2026 | | | | | 10 | | | | | | 5 | |
7.250% due 11/01/2025 | | | | | 16 | | | | | | 8 | |
8.000% due 02/01/2027 | | | | | 10 | | | | | | 5 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 28 | |
| | | | | | | | | | | | |
| |
| UTILITIES 0.0% | |
|
Odebrecht Drilling Norbe Ltd. | |
6.350% due 12/01/2021 ^ | | | | | 8 | | | | | | 8 | |
|
Odebrecht Drilling Norbe Ltd. (6.350% Cash and 1.000% PIK) | |
7.350% due 12/01/2026 ^(a) | | | | | 94 | | | | | | 25 | |
|
Odebrecht Offshore Drilling Finance Ltd. | |
6.720% due 12/01/2022 ^ | | | | | 1 | | | | | | 1 | |
|
Transocean Phoenix Ltd. | |
7.750% due 10/15/2024 | | | | | 3 | | | | | | 3 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 37 | |
| | | | | | | | | | | | |
Total Cayman Islands | | | | | | | | | | | 1,375 | |
| | | | | | | | | | | | |
| | | | | | | | | | | | |
| | | | | PRINCIPAL
AMOUNT
(000S) | | | | | MARKET
VALUE
(000S) | |
| CURACAO 0.0% | |
| |
| INDUSTRIALS 0.0% | |
|
Teva Pharmaceutical Finance BV | |
3.650% due 11/10/2021 | | $ | | | 2 | | | $ | | | 2 | |
| | | | | | | | | | | | |
Total Curacao | | | | | | | | | | | 2 | |
| | | | | | | | | | | | |
| |
| FRANCE 0.5% | |
| |
| BANKING & FINANCE 0.1% | |
|
Societe Generale S.A. | |
7.375% due 10/04/2023 •(g)(h) | | | | | 200 | | | | | | 216 | |
| | | | | | | | | | | | |
| |
| INDUSTRIALS 0.4% | |
|
Altice France S.A. | |
7.375% due 05/01/2026 | | | | | 700 | | | | | | 738 | |
| | | | | | | | | | | | |
Total France | | | | | | | | | | | 954 | |
| | | | | | | | | | | | |
| |
| GERMANY 0.4% | |
| |
| BANKING & FINANCE 0.4% | |
|
Deutsche Bank AG | |
4.250% due 10/14/2021 | | | | | 590 | | | | | | 605 | |
3.961% due 11/26/2025 • | | | | | 150 | | | | | | 164 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 769 | |
| | | | | | | | | | | | |
Total Germany | | | | | | | | | | | 769 | |
| | | | | | | | | | | | |
| |
| IRELAND 0.4% | |
| |
| BANKING & FINANCE 0.1% | |
|
AIB Group PLC | |
4.263% due 04/10/2025 •(k) | | | | | 200 | | | | | | 219 | |
| | | | | | | | | | | | |
| |
| INDUSTRIALS 0.3% | |
|
Russian Railways via RZD Capital PLC | |
7.487% due 03/25/2031 | | GBP | | | 300 | | | | | | 562 | |
| | | | | | | | | | | | |
Total Ireland | | | | | | | | | | | 781 | |
| | | | | | | | | | | | |
| |
| ITALY 0.3% | |
| |
| BANKING & FINANCE 0.3% | |
|
UniCredit SpA | |
7.830% due 12/04/2023 | | $ | | | 370 | | | | | | 439 | |
| | | | | | | | | | | | |
Total Italy | | | | | | | | | | | 439 | |
| | | | | | | | | | | | |
| |
| | | | | | |
| See Accompanying Notes | | SEMIANNUAL REPORT | | DECEMBER 31, 2020 | | 29 |
Schedule of Investments PIMCO Dividend and Income Fund (Cont.)
| | | | | | | | | | | | |
| | | | | PRINCIPAL
AMOUNT
(000S) | | | | | MARKET
VALUE
(000S) | |
| JERSEY, CHANNEL ISLANDS 0.2% | |
| |
| INDUSTRIALS 0.2% | |
|
AA Bond Co. Ltd. | |
2.875% due 07/31/2043 | | GBP | | | 300 | | | $ | | | 411 | |
| | | | | | | | | | | | |
Total Jersey, Channel Islands | | | | | | 411 | |
| | | | | | | | | | | | |
| |
| LUXEMBOURG 0.9% | |
| |
| BANKING & FINANCE 0.2% | |
|
Sberbank of Russia Via SB Capital S.A. | |
6.125% due 02/07/2022 | | $ | | | 400 | | | | | | 422 | |
| | | | | | | | | | | | |
| |
| INDUSTRIALS 0.3% | |
|
Altice Financing S.A. | |
3.000% due 01/15/2028 | | EUR | | | 200 | | | | | | 236 | |
|
Gazprom OAO Via Gaz Capital S.A. | |
5.999% due 01/23/2021 | | $ | | | 30 | | | | | | 30 | |
|
Intelsat Connect Finance S.A. | |
9.500% due 02/15/2023 ^(b) | | | | | 20 | | | | | | 5 | |
|
Intelsat Jackson Holdings S.A. | |
9.750% due 07/15/2025 ^(b) | | | | | 39 | | | | | | 28 | |
5.500% due 08/01/2023 ^(b) | | | | | 28 | | | | | | 19 | |
8.000% due 02/15/2024 | | | | | 34 | | | | | | 35 | |
8.500% due 10/15/2024 ^(b) | | | | | 229 | | | | | | 164 | |
|
Intelsat Luxembourg S.A. | |
7.750% due 06/01/2021 ^(b) | | | | | 54 | | | | | | 3 | |
|
Pacific Drilling SA | |
8.375% due 10/01/2023 ^(b) | | | | | 34 | | | | | | 9 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 529 | |
| | | | | | | | | | | | |
| |
| UTILITIES 0.4% | |
|
Gazprom Neft OAO Via GPN Capital S.A. | |
4.375% due 09/19/2022 | | | | | 300 | | | | | | 315 | |
6.000% due 11/27/2023 | | | | | 300 | | | | | | 336 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 651 | |
| | | | | | | | | | | | |
Total Luxembourg | | | | | | | | | | | 1,602 | |
| | | | | | | | | | | | |
| |
| MEXICO 0.2% | |
| |
| INDUSTRIALS 0.2% | |
|
Corp. GEO S.A.B. de C.V. | |
8.875% due 03/27/2022 ^«(b) | | | | | 300 | | | | | | 0 | |
|
Petroleos Mexicanos | |
6.750% due 09/21/2047 | | | | | 10 | | | | | | 9 | |
6.500% due 03/13/2027 | | | | | 40 | | | | | | 42 | |
6.500% due 01/23/2029 | | | | | 74 | | | | | | 77 | |
6.490% due 01/23/2027 | | | | | 30 | | | | | | 32 | |
6.840% due 01/23/2030 | | | | | 82 | | | | | | 86 | |
| | | | | | | | | | | | |
| | | | | PRINCIPAL
AMOUNT
(000S) | | | | | MARKET
VALUE
(000S) | |
7.690% due 01/23/2050 | | $ | | | 10 | | | $ | | | 10 | |
5.950% due 01/28/2031 | | | | | 67 | | | | | | 67 | |
6.950% due 01/28/2060 | | | | | 30 | | | | | | 28 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 351 | |
| | | | | | | | | | | | |
Total Mexico | | | | | | | | | | | 351 | |
| | | | | | | | | | | | |
| |
| MULTINATIONAL 0.0% | |
| |
| INDUSTRIALS 0.0% | |
|
Broadcom Corp. | |
3.875% due 01/15/2027 | | | | | 16 | | | | | | 18 | |
|
Connect Finco SARL | |
6.750% due 10/01/2026 | | | | | 6 | | | | | | 6 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 24 | |
| | | | | | | | | | | | |
Total Multinational | | | | | | | | | | | 24 | |
| | | | | | | | | | | | |
| |
| NETHERLANDS 0.4% | |
| |
| BANKING & FINANCE 0.3% | |
|
Cooperatieve Rabobank UA | |
6.625% due 06/29/2021 •(g)(h) | | EUR | | | 400 | | | | | | 503 | |
|
Stichting AK Rabobank Certificaten | |
6.500% due 12/29/2049 (g) | | | | | 26 | | | | | | 42 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 545 | |
| | | | | | | | | | | | |
| |
| INDUSTRIALS 0.1% | |
|
Teva Pharmaceutical Finance Netherlands BV | |
2.200% due 07/21/2021 | | $ | | | 46 | | | | | | 46 | |
| | | | | | | | | | | | |
| |
| UTILITIES 0.0% | |
|
Shell International Finance BV | |
3.250% due 04/06/2050 | | | | | 14 | | | | | | 16 | |
| | | | | | | | | | | | |
Total Netherlands | | | | | | | | | | | 607 | |
| | | | | | | | | | | | |
| |
| PANAMA 0.0% | |
| |
| INDUSTRIALS 0.0% | |
|
Carnival Corp. | |
11.500% due 04/01/2023 | | | | | 54 | | | | | | 63 | |
| | | | | | | | | | | | |
Total Panama | | | | | | | | | | | 63 | |
| | | | | | | | | | | | |
| |
| PERU 0.0% | |
| |
| BANKING & FINANCE 0.0% | |
|
Banco de Credito del Peru | |
4.650% due 09/17/2024 | | PEN | | | 100 | | | | | | 30 | |
| | | | | | | | | | | | |
Total Peru | | | | | | | | | | | 30 | |
| | | | | | | | | | | | |
| | | | | | |
| 30 | | PIMCO EQUITY SERIES | | | | See Accompanying Notes |
(Unaudited)
December 31, 2020
| | | | | | | | | | | | |
| | | | | PRINCIPAL
AMOUNT
(000S) | | | | | MARKET
VALUE
(000S) | |
| SWITZERLAND 0.1% | |
| |
| BANKING & FINANCE 0.1% | |
|
UBS AG | |
5.125% due 05/15/2024 (h) | | $ | | | 200 | | | $ | | | 221 | |
| | | | | | | | | | | | |
Total Switzerland | | | | | | | | | | | 221 | |
| | | | | | | | | | | | |
| |
| TURKEY 0.1% | |
| |
| BANKING & FINANCE 0.1% | |
|
Hazine Mustesarligi Varlik Kiralama A/S | |
5.800% due 02/21/2022 | | | | | 200 | | | | | | 205 | |
| | | | | | | | | | | | |
Total Turkey | | | | | | | | | | | 205 | |
| | | | | | | | | | | | |
| |
| UNITED KINGDOM 1.6% | |
| |
| BANKING & FINANCE 1.4% | |
|
Barclays PLC | |
4.972% due 05/16/2029 •(k) | | | | | 400 | | | | | | 480 | |
|
FCE Bank PLC | |
1.875% due 06/24/2021 | | EUR | | | 100 | | | | | | 123 | |
|
HSBC Holdings PLC | |
6.000% due 09/29/2023 •(g)(h) | | | | | 320 | | | | | | 430 | |
|
Lloyds Banking Group PLC | |
7.875% due 06/27/2029 •(g)(h) | | GBP | | | 200 | | | | | | 339 | |
7.625% due 06/27/2023 •(g)(h) | | | | | 200 | | | | | | 301 | |
7.500% due 09/27/2025 •(g)(h) | | $ | | | 200 | | | | | | 230 | |
|
Natwest Group PLC | |
8.625% due 08/15/2021 •(g)(h) | | | | | 200 | | | | | | 208 | |
|
Tesco Property Finance PLC | |
6.052% due 10/13/2039 | | GBP | | | 217 | | | | | | 405 | |
|
Unique Pub Finance Co. PLC | |
5.659% due 06/30/2027 | | | | | 33 | | | | | | 47 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 2,563 | |
| | | | | | | | | | | | |
| |
| INDUSTRIALS 0.2% | |
|
Marston’s Issuer PLC | |
2.596% due 07/16/2035 ~ | | | | | 200 | | | | | | 155 | |
|
Mitchells & Butlers Finance PLC | |
0.493% (BP0003M + 0.450%) due 12/15/2030 ~ | | | | | 108 | | | | | | 134 | |
|
Valaris PLC | |
5.750% due 10/01/2044 ^(b) | | $ | | | 12 | | | | | | 1 | |
7.750% due 02/01/2026 ^(b) | | | | | 2 | | | | | | 0 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 290 | |
| | | | | | | | | | | | |
Total United Kingdom | | | | | | | | | | | 2,853 | |
| | | | | | | | | | | | |
| | | | | | | | | | | | |
| | | | | PRINCIPAL
AMOUNT
(000S) | | | | | MARKET
VALUE
(000S) | |
| UNITED STATES 2.5% | |
| |
| BANKING & FINANCE 0.3% | |
|
BGC Partners, Inc. | |
5.375% due 07/24/2023 | | $ | | | 4 | | | $ | | | 4 | |
3.750% due 10/01/2024 | | | | | 6 | | | | | | 6 | |
|
Brighthouse Financial, Inc. | |
3.700% due 06/22/2027 | | | | | 5 | | | | | | 6 | |
|
Brixmor Operating Partnership LP | |
1.264% (US0003M + 1.050%) due 02/01/2022 ~ | | | | | 18 | | | | | | 18 | |
|
Cantor Fitzgerald LP | |
4.875% due 05/01/2024 | | | | | 2 | | | | | | 2 | |
|
CBL & Associates LP | |
5.950% due 12/15/2026 ^(b) | | | | | 17 | | | | | | 7 | |
|
CIT Group, Inc. | |
4.125% due 03/09/2021 | | | | | 6 | | | | | | 6 | |
5.000% due 08/15/2022 | | | | | 30 | | | | | | 32 | |
|
CTR Partnership LP | |
5.250% due 06/01/2025 | | | | | 12 | | | | | | 13 | |
|
EPR Properties | |
4.950% due 04/15/2028 | | | | | 2 | | | | | | 2 | |
4.750% due 12/15/2026 | | | | | 2 | | | | | | 2 | |
|
Fortress Transportation & Infrastructure Investors LLC | |
6.750% due 03/15/2022 | | | | | 42 | | | | | | 42 | |
6.500% due 10/01/2025 | | | | | 45 | | | | | | 47 | |
|
GLP Capital LP | |
5.250% due 06/01/2025 | | | | | 3 | | | | | | 3 | |
5.300% due 01/15/2029 | | | | | 19 | | | | | | 22 | |
|
Howard Hughes Corp. | |
5.375% due 03/15/2025 | | | | | 25 | | | | | | 26 | |
|
Hudson Pacific Properties LP | |
3.950% due 11/01/2027 | | | | | 5 | | | | | | 6 | |
|
Hunt Cos., Inc. | |
6.250% due 02/15/2026 | | | | | 2 | | | | | | 2 | |
|
Kennedy-Wilson, Inc. | |
5.875% due 04/01/2024 | | | | | 10 | | | | | | 10 | |
|
Ladder Capital Finance Holdings LLLP | |
4.250% due 02/01/2027 | | | | | 3 | | | | | | 3 | |
|
Life Storage LP | |
3.875% due 12/15/2027 | | | | | 2 | | | | | | 2 | |
|
Navient Corp. | |
6.500% due 06/15/2022 | | | | | 66 | | | | | | 70 | |
|
Newmark Group, Inc. | |
6.125% due 11/15/2023 | | | | | 10 | | | | | | 11 | |
|
Omega Healthcare Investors, Inc. | |
3.625% due 10/01/2029 | | | | | 8 | | | | | | 9 | |
|
OneMain Finance Corp. | |
5.625% due 03/15/2023 | | | | | 196 | | | | | | 211 | |
6.125% due 03/15/2024 | | | | | 12 | | | | | | 13 | |
| | | | | | |
| See Accompanying Notes | | SEMIANNUAL REPORT | | DECEMBER 31, 2020 | | 31 |
Schedule of Investments PIMCO Dividend and Income Fund (Cont.)
| | | | | | | | | | | | |
| | | | | PRINCIPAL
AMOUNT
(000S) | | | | | MARKET
VALUE
(000S) | |
|
Physicians Realty LP | |
3.950% due 01/15/2028 | | $ | | | 4 | | | $ | | | 4 | |
|
Sabra Health Care LP | |
4.800% due 06/01/2024 | | | | | 3 | | | | | | 3 | |
|
Santander Holdings USA, Inc. | |
4.400% due 07/13/2027 | | | | | 7 | | | | | | 8 | |
3.400% due 01/18/2023 | | | | | 8 | | | | | | 9 | |
|
SL Green Operating Partnership LP | |
3.250% due 10/15/2022 | | | | | 2 | | | | | | 2 | |
|
Starwood Property Trust, Inc. | |
4.750% due 03/15/2025 | | | | | 8 | | | | | | 8 | |
|
STORE Capital Corp. | |
4.500% due 03/15/2028 | | | | | 4 | | | | | | 5 | |
4.625% due 03/15/2029 | | | | | 2 | | | | | | 2 | |
|
Welltower, Inc. | |
4.250% due 04/15/2028 | | | | | 2 | | | | | | 2 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 618 | |
| | | | | | | | | | | | |
| |
| INDUSTRIALS 1.4% | |
|
American Airlines Pass-Through Trust | |
3.350% due 04/15/2031 | | | | | 9 | | | | | | 9 | |
|
Anheuser-Busch InBev Worldwide, Inc. | |
4.500% due 06/01/2050 | | | | | 25 | | | | | | 32 | |
4.600% due 06/01/2060 | | | | | 9 | | | | | | 12 | |
|
Broadcom, Inc. | |
4.110% due 09/15/2028 | | | | | 8 | | | | | | 9 | |
|
CCO Holdings LLC | |
4.750% due 03/01/2030 | | | | | 18 | | | | | | 19 | |
4.500% due 08/15/2030 | | | | | 14 | | | | | | 15 | |
|
Centene Corp. | |
4.750% due 01/15/2025 | | | | | 17 | | | | | | 18 | |
4.250% due 12/15/2027 | | | | | 6 | | | | | | 6 | |
|
Charter Communications Operating LLC | |
1.864% (US0003M + 1.650%) due 02/01/2024 ~ | | | | | 74 | | | | | | 76 | |
4.800% due 03/01/2050 | | | | | 16 | | | | | | 19 | |
|
Citrix Systems, Inc. | |
3.300% due 03/01/2030 | | | | | 3 | | | | | | 3 | |
|
Community Health Systems, Inc. | |
8.625% due 01/15/2024 | | | | | 87 | | | | | | 91 | |
8.000% due 03/15/2026 | | | | | 46 | | | | | | 50 | |
6.625% due 02/15/2025 | | | | | 60 | | | | | | 63 | |
5.625% due 03/15/2027 | | | | | 130 | | | | | | 140 | |
6.000% due 01/15/2029 | | | | | 30 | | | | | | 33 | |
|
Corning, Inc. | |
5.450% due 11/15/2079 | | | | | 6 | | | | | | 8 | |
|
CVS Pass-Through Trust | |
8.353% due 07/10/2031 (k) | | | | | 441 | | | | | | 583 | |
|
DAE Funding LLC | |
4.500% due 08/01/2022 | | | | | 10 | | | | | | 10 | |
5.000% due 08/01/2024 | | | | | 16 | | | | | | 16 | |
| | | | | | | | | | | | |
| | | | | PRINCIPAL
AMOUNT
(000S) | | | | | MARKET
VALUE
(000S) | |
|
Diamond Resorts International, Inc. | |
7.750% due 09/01/2023 | | $ | | | 107 | | | $ | | | 110 | |
|
Energy Transfer Operating LP | |
3.750% due 05/15/2030 | | | | | 7 | | | | | | 8 | |
5.000% due 05/15/2050 | | | | | 6 | | | | | | 7 | |
|
Exela Intermediate LLC | |
10.000% due 07/15/2023 | | | | | 16 | | | | | | 5 | |
|
General Electric Co. | |
5.550% due 01/05/2026 | | | | | 41 | | | | | | 50 | |
6.150% due 08/07/2037 | | | | | 1 | | | | | | 1 | |
6.875% due 01/10/2039 | | | | | 8 | | | | | | 12 | |
|
Hilton Domestic Operating Co., Inc. | |
3.750% due 05/01/2029 | | | | | 200 | | | | | | 209 | |
|
Kraft Heinz Foods Co. | |
3.000% due 06/01/2026 | | | | | 20 | | | | | | 21 | |
3.750% due 04/01/2030 | | | | | 18 | | | | | | 19 | |
|
Level 3 Financing, Inc. | |
3.875% due 11/15/2029 | | | | | 10 | | | | | | 11 | |
|
Micron Technology, Inc. | |
5.327% due 02/06/2029 | | | | | 8 | | | | | | 10 | |
4.663% due 02/15/2030 | | | | | 12 | | | | | | 15 | |
|
Netflix, Inc. | |
5.375% due 11/15/2029 | | | | | 8 | | | | | | 9 | |
|
Noble Corp. | |
15.000% due 02/16/2028 « | | | | | 5 | | | | | | 5 | |
|
Occidental Petroleum Corp. | |
1.671% (US0003M + 1.450%) due 08/15/2022 ~ | | | | | 18 | | | | | | 18 | |
|
Ortho-Clinical Diagnostics, Inc. | |
7.375% due 06/01/2025 | | | | | 3 | | | | | | 3 | |
|
PetSmart, Inc. | |
5.875% due 06/01/2025 | | | | | 14 | | | | | | 14 | |
|
Post Holdings, Inc. | |
4.625% due 04/15/2030 | | | | | 6 | | | | | | 6 | |
|
QVC, Inc. | |
4.850% due 04/01/2024 | | | | | 8 | | | | | | 9 | |
4.450% due 02/15/2025 | | | | | 19 | | | | | | 20 | |
|
Staples, Inc. | |
7.500% due 04/15/2026 | | | | | 2 | | | | | | 2 | |
|
Tenet Healthcare Corp. | |
4.625% due 07/15/2024 | | | | | 4 | | | | | | 4 | |
|
Topaz Solar Farms LLC | |
5.750% due 09/30/2039 | | | | | 75 | | | | | | 86 | |
4.875% due 09/30/2039 | | | | | 10 | | | | | | 11 | |
|
TransDigm, Inc. | |
5.500% due 11/15/2027 | | | | | 4 | | | | | | 4 | |
|
Triumph Group, Inc. | |
5.250% due 06/01/2022 | | | | | 4 | | | | | | 4 | |
|
U.S. Renal Care, Inc. | |
10.625% due 07/15/2027 | | | | | 6 | | | | | | 7 | |
|
United Airlines Pass-Through Trust | |
5.875% due 04/15/2029 | | | | | 415 | | | | | | 450 | |
| | | | | | |
| 32 | | PIMCO EQUITY SERIES | | | | See Accompanying Notes |
(Unaudited)
December 31, 2020
| | | | | | | | | | | | |
| | | | | PRINCIPAL
AMOUNT
(000S) | | | | | MARKET
VALUE
(000S) | |
|
Univision Communications, Inc. | |
5.125% due 02/15/2025 | | $ | | | 62 | | | $ | | | 63 | |
|
VMware, Inc. | |
3.900% due 08/21/2027 | | | | | 10 | | | | | | 11 | |
|
Western Digital Corp. | |
4.750% due 02/15/2026 | | | | | 20 | | | | | | 22 | |
|
Western Midstream Operating LP | |
6.250% due 02/01/2050 | | | | | 3 | | | | | | 3 | |
2.074% (US0003M + 1.850%) due 01/13/2023 ~ | | | | | 4 | | | | | | 4 | |
|
Windstream Escrow LLC | |
7.750% due 08/15/2028 | | | | | 2 | | | | | | 2 | |
|
Wyndham Destinations, Inc. | |
6.000% due 04/01/2027 | | | | | 6 | | | | | | 7 | |
5.650% due 04/01/2024 | | | | | 5 | | | | | | 5 | |
3.900% due 03/01/2023 | | | | | 2 | | | | | | 2 | |
4.625% due 03/01/2030 | | | | | 4 | | | | | | 4 | |
|
Zayo Group Holdings, Inc. | |
6.125% due 03/01/2028 | | | | | 7 | | | | | | 7 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 2,472 | |
| | | | | | | | | | | | |
| |
| UTILITIES 0.8% | |
|
AT&T, Inc. | |
3.650% due 06/01/2051 | | | | | 8 | | | | | | 8 | |
3.850% due 06/01/2060 | | | | | 8 | | | | | | 8 | |
|
CenturyLink, Inc. | |
4.000% due 02/15/2027 | | | | | 6 | | | | | | 6 | |
|
Edison International | |
2.950% due 03/15/2023 | | | | | 1 | | | | | | 1 | |
2.400% due 09/15/2022 | | | | | 14 | | | | | | 14 | |
5.750% due 06/15/2027 | | | | | 7 | | | | | | 8 | |
3.125% due 11/15/2022 | | | | | 6 | | | | | | 6 | |
3.550% due 11/15/2024 | | | | | 8 | | | | | | 9 | |
|
Enable Midstream Partners LP | |
4.950% due 05/15/2028 | | | | | 4 | | | | | | 4 | |
|
FirstEnergy Corp. | |
2.850% due 07/15/2022 (k) | | | | | 410 | | | | | | 417 | |
|
Pacific Gas & Electric Co. | |
3.750% due 08/15/2042 | | | | | 2 | | | | | | 2 | |
2.950% due 03/01/2026 | | | | | 53 | | | | | | 56 | |
4.500% due 12/15/2041 | | | | | 2 | | | | | | 2 | |
3.250% due 06/15/2023 | | | | | 23 | | | | | | 24 | |
3.750% due 02/15/2024 | | | | | 41 | | | | | | 44 | |
3.400% due 08/15/2024 | | | | | 35 | | | | | | 37 | |
3.500% due 06/15/2025 | | | | | 19 | | | | | | 21 | |
4.000% due 12/01/2046 | | | | | 2 | | | | | | 2 | |
3.300% due 03/15/2027 | | | | | 20 | | | | | | 22 | |
4.250% due 03/15/2046 | | | | | 4 | | | | | | 4 | |
3.750% due 07/01/2028 | | | | | 110 | | | | | | 120 | |
4.550% due 07/01/2030 | | | | | 76 | | | | | | 86 | |
4.950% due 07/01/2050 | | | | | 105 | | | | | | 125 | |
3.150% due 01/01/2026 | | | | | 131 | | | | | | 140 | |
4.500% due 07/01/2040 | | | | | 131 | | | | | | 147 | |
| | | | | | | | | | | | |
| | | | | PRINCIPAL
AMOUNT
(000S) | | | | | MARKET
VALUE
(000S) | |
|
Southern California Edison Co. | |
6.650% due 04/01/2029 | | $ | | | 2 | | | $ | | | 3 | |
5.750% due 04/01/2035 | | | | | 2 | | | | | | 3 | |
4.875% due 03/01/2049 | | | | | 1 | | | | | | 1 | |
2.850% due 08/01/2029 | | | | | 1 | | | | | | 1 | |
3.650% due 02/01/2050 | | | | | 3 | | | | | | 4 | |
|
Sprint Corp. | |
7.625% due 03/01/2026 | | | | | 7 | | | | | | 9 | |
|
Talen Energy Supply LLC | |
6.625% due 01/15/2028 | | | | | 4 | | | | | | 4 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 1,338 | |
| | | | | | | | | | | | |
Total United States | | | | | | | | | | | 4,428 | |
| | | | | | | | | | | | |
| |
| VENEZUELA 0.0% | |
| |
| INDUSTRIALS 0.0% | |
|
Petroleos de Venezuela S.A. | |
6.000% due 11/15/2026 ^(b) | | | | | 300 | | | | | | 12 | |
6.000% due 05/16/2024 ^(b) | | | | | 20 | | | | | | 1 | |
9.750% due 05/17/2035 ^(b) | | | | | 20 | | | | | | 1 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 14 | |
| | | | | | | | | | | | |
Total Venezuela | | | | | | | | | | | 14 | |
| | | | | | | | | | | | |
Total Corporate Bonds & Notes
(Cost $15,076) | | | 15,712 | |
| | | | | | | | | | | | |
| |
| NON-AGENCY MORTGAGE-BACKED SECURITIES 3.7% | |
| |
| UNITED KINGDOM 1.0% | |
|
Eurosail PLC | |
0.741% due 09/13/2045 • | | GBP | | | 462 | | | | | | 612 | |
0.991% due 06/13/2045 • | | | | | 682 | | | | | | 930 | |
|
Grifonas Finance PLC | |
0.000% due 08/28/2039 • | | EUR | | | 269 | | | | | | 319 | |
| | | | | | | | | | | | |
Total United Kingdom | | | | | | | | | | | 1,861 | |
| | | | | | | | | | | | |
| |
| UNITED STATES 2.7% | |
|
Banc of America Alternative Loan Trust | |
6.000% due 04/25/2036 ^ | | $ | | | 27 | | | | | | 27 | |
6.000% due 07/25/2046 ^ | | | | | 64 | | | | | | 62 | |
|
Banc of America Funding Trust | |
3.481% due 05/20/2036 ^~ | | | | | 10 | | | | | | 10 | |
|
Banc of America Mortgage Trust | |
3.077% due 11/20/2046 ^~ | | | | | 5 | | | | | | 5 | |
6.000% due 10/25/2036 ^ | | | | | 15 | | | | | | 15 | |
|
Bear Stearns Mortgage Funding Trust | |
7.500% due 08/25/2036 þ | | | | | 61 | | | | | | 59 | |
|
Chase Mortgage Finance Trust | |
3.338% due 09/25/2036 ^~ | | | | | 30 | | | | | | 26 | |
| | | | | | |
| See Accompanying Notes | | SEMIANNUAL REPORT | | DECEMBER 31, 2020 | | 33 |
Schedule of Investments PIMCO Dividend and Income Fund (Cont.)
| | | | | | | | | | | | |
| | | | | PRINCIPAL
AMOUNT
(000S) | | | | | MARKET
VALUE
(000S) | |
|
Countrywide Alternative Loan Trust | |
6.000% due 06/25/2036 ^ | | $ | | | 105 | | | $ | | | 83 | |
6.000% due 02/25/2037 ^ | | | | | 59 | | | | | | 35 | |
6.250% due 12/25/2036 ^• | | | | | 26 | | | | | | 17 | |
|
Countrywide Home Loan Mortgage Pass-Through Trust | |
0.648% due 07/25/2037 ^• | | | | | 17 | | | | | | 6 | |
|
Credit Suisse First Boston Mortgage Securities Corp. | |
6.000% due 01/25/2036 ^ | | | | | 37 | | | | | | 31 | |
|
Credit Suisse First Boston Mortgage-Backed Pass-Through Certificates | |
6.000% due 11/25/2035 ^ | | | | | 328 | | | | | | 141 | |
|
Credit Suisse Mortgage Capital Certificates | |
2.458% due 12/29/2037 ~ | | | | | 157 | | | | | | 121 | |
|
First Horizon Alternative Mortgage Securities Trust | |
2.553% due 06/25/2036 ^~ | | | | | 235 | | | | | | 215 | |
|
HSI Asset Loan Obligation Trust | |
6.000% due 06/25/2037 ^ | | | | | 6 | | | | | | 5 | |
|
JPMorgan Alternative Loan Trust | |
5.692% due 05/26/2037 ~ | | | | | 62 | | | | | | 54 | |
|
JPMorgan Mortgage Trust | |
6.500% due 07/25/2036 ^ | | | | | 88 | | | | | | 55 | |
|
Merrill Lynch Mortgage Investors Trust | |
3.344% due 03/25/2036 ^~ | | | | | 11 | | | | | | 8 | |
|
OBX Trust | |
0.998% due 04/25/2048 • | | | | | 290 | | | | | | 292 | |
|
Residential Accredit Loans, Inc. Trust | |
0.948% due 10/25/2045 • | | | | | 63 | | | | | | 54 | |
5.500% due 03/25/2037 ^ | | | | | 341 | | | | | | 324 | |
6.250% due 03/25/2037 ^ | | | | | 27 | | | | | | 25 | |
|
Structured Adjustable Rate Mortgage Loan Trust | |
3.134% due 10/25/2036 ^~ | | | | | 1,596 | | | | | | 1,201 | |
|
Wells Fargo Alternative Loan Trust | |
3.327% due 07/25/2037 ^~ | | | | | 803 | | | | | | 743 | |
|
Wells Fargo Commercial Mortgage Trust | |
3.412% due 09/15/2058 | | | | | 1,048 | | | | | | 1,113 | |
| | | | | | | | | | | | |
Total United States | | | | | | | | | | | 4,727 | |
| | | | | | | | | | | | |
Total Non-Agency Mortgage-Backed Securities (Cost $6,254) | | | 6,588 | |
| | | | |
| |
| MUNICIPAL BONDS & NOTES 0.5% | |
| |
| CALIFORNIA 0.1% | |
|
California State Public Works Board Revenue Notes, Series 2011 | |
5.786% due 12/01/2021 | | | | | 168 | | | | | | 176 | |
| | | | | | | | | | | | |
Total California | | | | | | | | | | | 176 | |
| | | | | | | | | | | | |
| |
| 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 | |
| | | | | | | | | | | | |
| | | | | PRINCIPAL
AMOUNT
(000S) | | | | | MARKET
VALUE
(000S) | |
|
Illinois State General Obligation Bonds, Series 2003 | |
5.100% due 06/01/2033 | | $ | | | 60 | | | $ | | | 65 | |
| | | | | | | | | | | | |
Total Illinois | | | | | | | | | | | 88 | |
| | | | | | | | | | | | |
| |
| PUERTO RICO 0.1% | |
|
Commonwealth of Puerto Rico General Obligation Bonds, Series 2001 | |
5.125% due 07/01/2031 ^(b) | | | | | 30 | | | | | | 23 | |
|
Commonwealth of Puerto Rico General Obligation Bonds, Series 2007 | |
5.250% due 07/01/2034 ^(b) | | | | | 5 | | | | | | 4 | |
5.250% due 07/01/2037 ^(b) | | | | | 5 | | | | | | 4 | |
|
Commonwealth of Puerto Rico General Obligation Bonds, Series 2008 | |
5.500% due 07/01/2032 ^(b) | | | | | 20 | | | | | | 15 | |
5.700% due 07/01/2023 ^(b) | | | | | 10 | | | | | | 8 | |
|
Commonwealth of Puerto Rico General Obligation Bonds, Series 2009 | |
6.000% due 07/01/2039 ^(b) | | | | | 5 | | | | | | 4 | |
|
Commonwealth of Puerto Rico General Obligation Bonds, Series 2011 | |
5.375% due 07/01/2030 ^(b) | | | | | 10 | | | | | | 7 | |
|
Commonwealth of Puerto Rico General Obligation Bonds, Series 2012 | |
5.000% due 07/01/2041 ^(b) | | | | | 120 | | | | | | 84 | |
5.125% due 07/01/2037 ^(b) | | | | | 10 | | | | | | 7 | |
|
Commonwealth of Puerto Rico General Obligation Notes, Series 2012 | |
5.000% due 07/01/2021 ^(b) | | | | | 10 | | | | | | 7 | |
|
Puerto Rico Electric Power Authority Revenue Bonds, (BABs), Series 2010 | |
6.125% due 07/01/2040 ^(b) | | | | | 100 | | | | | | 81 | |
| | | | | | | | | | | | |
Total Puerto Rico | | | | | | | | | | | 244 | |
| | | | | | | | | | | | |
| |
| VIRGINIA 0.2% | |
|
Tobacco Settlement Financing Corp., Virginia Revenue Bonds, Series 2007 | |
6.706% due 06/01/2046 | | | | | 370 | | | | | | 387 | |
| | | | | | | | | | | | |
Total Virginia | | | | | | | | | | | 387 | |
| | | | | | | | | | | | |
Total Municipal Bonds & Notes (Cost $624) | | | 895 | |
| | | | |
| | | | | | | | | | | | |
| | | | | SHARES | | | | | | |
| PREFERRED STOCKS 0.3% | |
| |
| GERMANY 0.1% | |
| |
| INDUSTRIALS 0.1% | |
| | | | |
Schaeffler AG | | | | | 17,183 | | | | | | 143 | |
| | | | | | | | | | | | |
Total Germany | | | | | | | | | | | 143 | |
| | | | | | | | | | | | |
| |
| | | | | | |
| 34 | | PIMCO EQUITY SERIES | | | | See Accompanying Notes |
(Unaudited)
December 31, 2020
| | | | | | | | | | | | |
| | | | | SHARES | | | | | MARKET
VALUE
(000S) | |
| UNITED KINGDOM 0.1% | |
| |
| BANKING & FINANCE 0.1% | |
|
Nationwide Building Society | |
10.250% ~ | | | | | 1,130 | | | $ | | | 274 | |
| | | | | | | | | | | | |
Total United Kingdom | | | | | | | | | | | 274 | |
| | | | | | | | | | | | |
| |
| UNITED STATES 0.1% | |
| |
| INDUSTRIALS 0.1% | |
|
General Electric Co. | |
5.000% due 03/15/2021 •(g) | | | | | 169,000 | | | | | | 157 | |
| | | | | | | | | | | | |
Total United States | | | | | | | | | | | 157 | |
| | | | | | | | | | | | |
Total Preferred Stocks (Cost $554) | | | 574 | |
| | | | |
| |
| REAL ESTATE INVESTMENT TRUSTS 2.9% | |
| |
| AUSTRALIA 0.0% | |
| |
| REAL ESTATE 0.0% | |
| | | | |
Stockland | | | | | 16,671 | | | | | | 54 | |
| | | | | | | | | | | | |
Total Australia | | | | | | | | | | | 54 | |
| | | | | | | | | | | | |
| |
| CANADA 0.0% | |
| |
| REAL ESTATE 0.0% | |
| | | | |
H&R Real Estate Investment Trust | | | | | 1,230 | | | | | | 13 | |
| | | | |
RioCan Real Estate Investment Trust | | | | | 4,149 | | | | | | 55 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 68 | |
| | | | | | | | | | | | |
Total Canada | | | | | | | | | | | 68 | |
| | | | | | | | | | | | |
| |
| FRANCE 0.6% | |
| |
| REAL ESTATE 0.6% | |
| | | | |
Klepierre S.A. | | | | | 7,450 | | | | | | 168 | |
| | | | |
Unibail-Rodamco-Westfield | | | | | 10,496 | | | | | | 818 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 986 | |
| | | | | | | | | | | | |
Total France | | | | | | | | | | | 986 | |
| | | | | | | | | | | | |
| |
| HONG KONG 0.0% | |
| |
| REAL ESTATE 0.0% | |
| | | | |
Link REIT | | | | | 4,200 | | | | | | 38 | |
| | | | | | | | | | | | |
Total Hong Kong | | | | | | | | | | | 38 | |
| | | | | | | | | | | | |
| |
| | | | | | | | | | | | |
| | | | | SHARES | | | | | MARKET
VALUE
(000S) | |
| JAPAN 0.0% | |
| |
| REAL ESTATE 0.0% | |
| | | | |
Japan Retail Fund Investment Corp. | | | | | 15 | | | $ | | | 27 | |
| | | | | | | | | | | | |
Total Japan | | | | | | | | | | | 27 | |
| | | | | | | | | | | | |
| |
| UNITED STATES 2.3% | |
| |
| FINANCIALS 0.9% | |
| | | | |
AGNC Investment Corp. | | | | | 23,409 | | | | | | 365 | |
| | | | |
Annaly Capital Management, Inc. | | | | | 110,690 | | | | | | 935 | |
| | | | |
New Residential Investment Corp. | | | | | 38,374 | | | | | | 382 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 1,682 | |
| | | | | | | | | | | | |
| |
| REAL ESTATE 1.4% | |
| | | | |
Host Hotels & Resorts, Inc. | | | | | 3,330 | | | | | | 49 | |
| | | | |
Iron Mountain, Inc. | | | | | 18,786 | | | | | | 554 | |
| | | | |
Park Hotels & Resorts, Inc. | | | | | 21,354 | | | | | | 366 | |
| | | | |
Simon Property Group, Inc. | | | | | 3,242 | | | | | | 277 | |
| | | | |
Uniti Group, Inc. | | | | | 32 | | | | | | 0 | |
| | | | |
Ventas, Inc. | | | | | 5,997 | | | | | | 294 | |
| | | | |
VEREIT, Inc. | | | | | 2,686 | | | | | | 102 | |
| | | | |
VICI Properties, Inc. | | | | | 26,432 | | | | | | 674 | |
| | | | |
Weyerhaeuser Co. | | | | | 3,084 | | | | | | 103 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 2,419 | |
| | | | | | | | | | | | |
Total United States | | | | | | | | | | | 4,101 | |
| | | | | | | | | | | | |
Total Real Estate Investment Trusts (Cost $3,962) | | | 5,274 | |
| | | | |
| |
| RIGHTS 0.0% | |
| |
| SPAIN 0.0% | |
| |
| ENERGY 0.0% | |
| | | | |
Repsol S.A. | | | | | 91,234 | | | | | | 31 | |
| | | | | | | | | | | | |
Total Rights (Cost $32) | | | 31 | |
| | | | |
| | | | | | | | | | | | |
| | | | | PRINCIPAL
AMOUNT
(000S) | | | | | | |
| SOVEREIGN ISSUES 1.7% | |
| |
| ARGENTINA 0.4% | |
|
Argentina Government International Bond | |
0.125% due 07/09/2030 þ | | | | | 133 | | | | | | 127 | |
0.125% due 07/09/2035 þ | | | | | 373 | | | | | | 136 | |
| | | | | | |
| See Accompanying Notes | | SEMIANNUAL REPORT | | DECEMBER 31, 2020 | | 35 |
Schedule of Investments PIMCO Dividend and Income Fund (Cont.)
| | | | | | | | | | | | |
| | | | | PRINCIPAL
AMOUNT
(000S) | | | | | MARKET
VALUE
(000S) | |
0.125% due 01/09/2038 þ | | | | | 269 | | | $ | | | 111 | |
0.125% due 07/09/2041 þ | | | | | 182 | | | | | | 69 | |
1.000% due 07/09/2029 | | | | | 31 | | | | | | 14 | |
1.000% due 08/05/2021 (f) | | ARS | | | 22,610 | | | | | | 161 | |
1.500% due 03/25/2024 (f) | | | | | 137 | | | | | | 1 | |
15.500% due 10/17/2026 | | | | | 1,226 | | | | | | 3 | |
34.109% (BADLARPP) due 10/04/2022 ~ | | | | | 28 | | | | | | 0 | |
36.174% (BADLARPP + 2.000%) due 04/03/2022 ~ | | | | | 2,640 | | | | | | 18 | |
|
Autonomous City of Buenos Aires Argentina | |
37.424% (BADLARPP + 3.250%) due 03/29/2024 ~ | | | | | 3,875 | | | | | | 22 | |
37.981% (BADLARPP + 5.000%) due 01/23/2022 ~ | | | | | 1,140 | | | | | | 8 | |
|
Provincia de Buenos Aires | |
34.187% due 05/31/2022 | | | | | 532 | | | | | | 3 | |
36.050% due 04/12/2025 | | | | | 389 | | | | | | 1 | |
| | | | | | | | | | | | |
Total Argentina | | | | | | | | | | | 674 | |
| | | | | | | | | | | | |
| |
| CHINA 0.3% | |
|
China Development Bank | |
2.890% due 06/22/2025 | | CNY | | | 300 | | | | | | 45 | |
3.300% due 02/01/2024 | | | | | 100 | | | | | | 15 | |
3.430% due 01/14/2027 | | | | | 100 | | | | | | 15 | |
3.680% due 02/26/2026 | | | | | 1,200 | | | | | | 187 | |
3.740% due 09/10/2025 | | | | | 300 | | | | | | 47 | |
4.150% due 10/26/2025 | | | | | 1,100 | | | | | | 175 | |
| | | | | | | | | | | | |
Total China | | | | | | | | | | | 484 | |
| | | | | | | | | | | | |
| |
| PERU 0.3% | |
|
Peru Government International Bond | |
5.400% due 08/12/2034 | | PEN | | | 1 | | | | | | 0 | |
5.940% due 02/12/2029 | | | | | 378 | | | | | | 130 | |
6.150% due 08/12/2032 | | | | | 336 | | | | | | 114 | |
6.350% due 08/12/2028 | | | | | 347 | | | | | | 122 | |
6.900% due 08/12/2037 | | | | | 7 | | | | | | 2 | |
6.950% due 08/12/2031 | | | | | 235 | | | | | | 85 | |
8.200% due 08/12/2026 | | | | | 199 | | | | | | 75 | |
| | | | | | | | | | | | |
Total Peru | | | | | | | | | | | 528 | |
| | | | | | | | | | | | |
| |
| SAUDI ARABIA 0.3% | |
|
Saudi Government International Bond | |
4.500% due 10/26/2046 | | $ | | | 200 | | | | | | 243 | |
4.625% due 10/04/2047 | | | | | 200 | | | | | | 248 | |
| | | | | | | | | | | | |
Total Saudi Arabia | | | | | | | | | | | 491 | |
| | | | | | | | | | | | |
| |
| | | | | | | | | | | | |
| | | | | PRINCIPAL
AMOUNT
(000S) | | | | | MARKET
VALUE
(000S) | |
| SOUTH AFRICA 0.1% | |
|
South Africa Government International Bond | |
8.750% due 02/28/2048 | | ZAR | | | 200 | | | $ | | | 11 | |
10.500% due 12/21/2026 | | | | | 3,300 | | | | | | 267 | |
| | | | | | | | | | | | |
Total South Africa | | | | | | | | | | | 278 | |
| | | | | | | | | | | | |
| |
| TURKEY 0.3% | |
|
Turkey Government International Bond | |
4.250% due 03/13/2025 | | $ | | | 200 | | | | | | 201 | |
4.625% due 03/31/2025 | | EUR | | | 100 | | | | | | 130 | |
5.250% due 03/13/2030 | | $ | | | 200 | | | | | | 201 | |
| | | | | | | | | | | | |
Total Turkey | | | | | | | | | | | 532 | |
| | | | | | | | | | | | |
| |
| VENEZUELA 0.0% | |
|
Venezuela Government International Bond | |
7.000% due 03/31/2038 ^(b) | | | | | 2 | | | | | | 0 | |
7.650% due 04/21/2025 ^(b) | | | | | 3 | | | | | | 1 | |
9.250% due 09/15/2027 ^(b) | | | | | 44 | | | | | | 4 | |
| | | | | | | | | | | | |
Total Venezuela | | | | | | | | | | | 5 | |
| | | | | | | | | | | | |
Total Sovereign Issues (Cost $3,043) | | | 2,992 | |
| | | | |
| |
| U.S. GOVERNMENT AGENCIES 10.5% | |
| |
| UNITED STATES 10.5% | |
|
Uniform Mortgage-Backed Security | |
3.000% due 11/01/2029 - 03/01/2050 | | | | | 99 | | | | | | 105 | |
3.500% due 02/01/2050 | | | | | 75 | | | | | | 80 | |
4.000% due 08/01/2048 - 07/01/2050 | | | | | 5,547 | | | | | | 5,924 | |
|
Uniform Mortgage-Backed Security, TBA | |
2.000% due 03/01/2051 | | | | | 1,000 | | | | | | 1,035 | |
2.500% due 03/01/2051 | | | | | 3,500 | | | | | | 3,678 | |
3.000% due 01/01/2051 - 02/01/2051 | | | | | 3,700 | | | | | | 3,880 | |
3.500% due 02/01/2051 | | | | | 2,600 | | | | | | 2,752 | |
4.000% due 01/01/2051 - 02/01/2051 | | | | | 1,200 | | | | | | 1,283 | |
| | | | | | | | | | | | |
Total U.S. Government Agencies (Cost $18,659) | | | 18,737 | |
| | | | |
| |
| U.S. TREASURY OBLIGATIONS 3.1% | |
| |
| UNITED STATES 3.1% | |
|
U.S. Treasury Bonds | |
2.875% due 11/15/2046 (k) | | | | | 600 | | | | | | 765 | |
3.000% due 02/15/2049 (k) | | | | | 1,550 | | | | | | 2,041 | |
| | | | | | |
| 36 | | PIMCO EQUITY SERIES | | | | See Accompanying Notes |
(Unaudited)
December 31, 2020
| | | | | | | | | | | | |
| | | | | PRINCIPAL
AMOUNT
(000S) | | | | | MARKET
VALUE
(000S) | |
|
U.S. Treasury Inflation Protected Securities (f) | |
0.125% due 10/15/2024 | | $ | | | 203 | | | $ | | | 218 | |
0.125% due 07/15/2030 | | | | | 305 | | | | | | 342 | |
0.250% due 07/15/2029 (m) | | | | | 731 | | | | | | 828 | |
0.375% due 01/15/2027 | | | | | 34 | | | | | | 38 | |
0.375% due 07/15/2027 | | | | | 11 | | | | | | 12 | |
0.750% due 07/15/2028 | | | | | 519 | | | | | | 603 | |
0.875% due 01/15/2029 | | | | | 358 | | | | | | 421 | |
1.000% due 02/15/2048 | | | | | 106 | | | | | | 147 | |
1.000% due 02/15/2049 | | | | | 103 | | | | | | 146 | |
|
U.S. Treasury Notes | |
1.500% due 02/15/2030 | | | | | 71 | | | | | | 75 | |
| | | | | | | | | | | | |
Total U.S. Treasury Obligations (Cost $4,675) | | | 5,636 | |
| | | | |
| | | | | | | | | | | | |
| | | | | SHARES | | | | | | |
| WARRANTS 0.1% | |
| |
| UNITED STATES 0.1% | |
| |
| COMMUNICATION SERVICES 0.1% | |
| | | | |
iHeartMedia, Inc. - Exp. 05/01/2039 « | | | | | 10,786 | | | | | | 138 | |
| | | | | | | | | | | | |
| |
| INFORMATION TECHNOLOGY 0.0% | |
| | | | |
Windstream Holdings LLC - Exp. 03/24/2021 « | | | | | 40 | | | | | | 1 | |
| | | | | | | | | | | | |
Total Warrants (Cost $212) | | | 139 | |
| | | | |
| |
| SHORT-TERM INSTRUMENTS 0.3% | |
| |
| REPURCHASE AGREEMENTS (j) 0.3% | |
| | | | | | | | | | | 522 | |
| | | | | | | | | | | | |
| |
| | | | | | | | | | | | |
| | | | | PRINCIPAL
AMOUNT
(000S) | | | | | MARKET
VALUE
(000S) | |
| SHORT-TERM NOTES 0.0% | |
|
Argentina Treasury Bond BONCER | |
1.100% due 04/17/2021 (f) | | ARS | | | 1,505 | | | $ | | | 10 | |
| | | | | | | | | | | | |
| |
| ARGENTINA TREASURY BILLS 0.0% | |
(3.480)% due 09/13/2021 (d)(e) | | | | | 4,147 | | | $ | | | 30 | |
| | | | | | | | | | | | |
Total Argentina Treasury Bills (Cost $30) | | | 30 | |
| | | | |
Total Short-Term Instruments (Cost $565) | | | 562 | |
|
| |
| Total Investments in Securities (Cost $172,127) | | | 193,288 | |
| | | | |
| |
| | | | | SHARES | | | | | | |
| INVESTMENTS IN AFFILIATES 0.4% | |
| |
| SHORT-TERM INSTRUMENTS 0.4% | |
| |
| CENTRAL FUNDS USED FOR CASH MANAGEMENT PURPOSES 0.4% | |
| | | |
PIMCO Short-Term Floating NAV Portfolio III | | | 75,110 | | | | | | 741 | |
| | | | | | | | | | | | |
| Total Short-Term Instruments (Cost $740) | | | 741 | |
|
| |
| Total Investments in Affiliates (Cost $740) | | | 741 | |
|
| |
| Total Investments 108.3% (Cost $172,867) | | | $ | | | 194,029 | |
| | | | | | | | | | | | |
Financial Derivative Instruments (l)(n) 0.1% (Cost or Premiums, net $(1,905)) | | | 105 | |
| | | | | | | | | | | | |
| Other Assets and Liabilities, net (8.4)% | | | | | | (15,056 | ) |
| | | | | | | | | | | | |
| Net Assets 100.0% | | | $ | | | 179,078 | |
| | | | | | | |
NOTES TO SCHEDULE OF INVESTMENTS:
| * | A zero balance may reflect actual amounts rounding to less than one thousand. |
| « | Security valued using significant unobservable inputs (Level 3). |
| µ | All or a portion of this amount represents unfunded loan commitments. The interest rate for the unfunded portion will be determined at the time of funding. See Note 5, Securities and Other Investments, in the Notes to Financial Statements for more information regarding unfunded loan commitments. |
| ~ | 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. |
| | | | | | |
| See Accompanying Notes | | SEMIANNUAL REPORT | | DECEMBER 31, 2020 | | 37 |
Schedule of Investments PIMCO Dividend and Income Fund (Cont.)
| • | 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. |
| þ | Coupon represents a rate which changes periodically based on a predetermined schedule or event. Rate shown is the rate in effect as of period end. |
| (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. |
| (e) | Coupon represents a yield to maturity. |
| (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. |
(i) RESTRICTED SECURITIES:
| | | | | | | | | | | | | | | | |
| Issuer Description | | Acquisition
Date | | | Cost | | | Market
Value | | | Market Value
as Percentage
of Net Assets | |
Dommo Energia S.A. | | | 12/03/2019 | | | $ | 4 | | | $ | 5 | | | | 0.00 | % |
Neiman Marcus Group Ltd. LLC | | | 09/25/2020 | | | | 36 | | | | 102 | | | | 0.06 | |
Noble Corp. PLC | | | 12/23/2020 | | | | 0 | | | | 3 | | | | 0.00 | |
Westmoreland Mining Holdings LLC | | | 03/26/2019 | | | | 0 | | | | 0 | | | | 0.00 | |
| | | | | | | | | | | | | | | | |
| | | | | | $ | 40 | | | $ | 110 | | | | 0.06 | % |
| | | | | | | | | | | | | | | | |
BORROWINGS AND OTHER FINANCING TRANSACTIONS
(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 | |
FICC | | | 0.000 | % | | | 12/31/2020 | | | | 01/04/2021 | | | $ | 522 | | | U.S. Treasury Bills 0.000% due 12/30/2021 | | $ | (532 | ) | | $ | 522 | | | $ | 522 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total Repurchase Agreements | | | | | $ | (532 | ) | | $ | 522 | | | $ | 522 | |
| | | | | | | | | | | | | | | |
REVERSE REPURCHASE AGREEMENTS:
| | | | | | | | | | | | | | | | | | | | |
| Counterparty | | Borrowing
Rate(1) | | | Settlement
Date | | | Maturity
Date | | | Amount
Borrowed(1) | | | Payable for
Reverse
Repurchase
Agreements | |
DEU | | | 0.170 | % | | | 10/13/2020 | | | | 01/08/2021 | | | $ | (2,069 | ) | | $ | (2,070 | ) |
FOB | | | 0.450 | | | | 10/28/2020 | | | | 01/26/2021 | | | | (201 | ) | | | (201 | ) |
TDM | | | 0.300 | | | | 11/20/2020 | | | | TBD | (2) | | | (1,397 | ) | | | (1,397 | ) |
| | | | | | | | | | | | | | | | | | | | |
Total Reverse Repurchase Agreements | | | $ | (3,668 | ) |
| | | | | | | | | | | | | | | | | | | | |
| | | | | | |
| 38 | | PIMCO EQUITY SERIES | | | | See Accompanying Notes |
(Unaudited)
December 31, 2020
SALE-BUYBACK TRANSACTIONS:
| | | | | | | | | | | | | | | | | | | | |
| Counterparty | | Borrowing
Rate(1) | | | Borrowing
Date | | | Maturity
Date | | | Amount
Borrowed(1) | | | Payable for
Sale-Buyback
Transactions | |
BPG | | | 0.180 | % | | | 10/21/2020 | | | | 01/21/2021 | | | $ | (770 | ) | | $ | (770 | ) |
| | | | | | | | | | | | | | | | | | | | |
Total Sale-Buyback Transactions | | | $ | (770 | ) |
| | | | | | | | | | | | | | | | | | | | |
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, 2020:
| | | | | | | | | | | | | | | | | | | | | | | | |
| Counterparty | | Repurchase
Agreement
Proceeds to be
Received | | | Payable for
Reverse
Repurchase
Agreements | | | Payable for
Sale-Buyback
Transactions | | | Total
Borrowings and
Other Financing
Transactions | | | Collateral
Pledged/
(Received) | | | Net Exposure(3) | |
Global/Master Repurchase Agreement | |
DEU | | $ | 0 | | | $ | (2,070 | ) | | $ | 0 | | | $ | (2,070 | ) | | $ | 2,041 | | | $ | (29 | ) |
FICC | | | 522 | | | | 0 | | | | 0 | | | | 522 | | | | (532 | ) | | | (10 | ) |
FOB | | | 0 | | | | (201 | ) | | | 0 | | | | (201 | ) | | | 219 | | | | 18 | |
TDM | | | 0 | | | | (1,397 | ) | | | 0 | | | | (1,397 | ) | | | 1,480 | | | | 83 | |
| | | | | | |
Master Securities Forward Transaction Agreement | | | | | | | | | | | | | | | | | | | | | | | | |
BPG | | | 0 | | | | 0 | | | | (770 | ) | | | (770 | ) | | | 765 | | | | (5 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total Borrowings and Other Financing Transactions | | $ | 522 | | | $ | (3,668 | ) | | $ | (770 | ) | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | |
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 | |
Corporate Bonds & Notes | | $ | 0 | | | $ | (2,271 | ) | | $ | 0 | | | $ | (1,397 | ) | | $ | (3,668 | ) |
| | | | | | | | | | | | | | | | | | | | |
Total | | $ | 0 | | | $ | (2,271 | ) | | $ | 0 | | | $ | (1,397 | ) | | $ | (3,668 | ) |
|
Sale-Buyback Transactions | |
U.S. Treasury Obligations | | | 0 | | | | (770 | ) | | | 0 | | | | 0 | | | | (770 | ) |
| | | | | | | | | | | | | | | | | | | | |
Total | | $ | 0 | | | $ | (770 | ) | | $ | 0 | | | $ | 0 | | | $ | (770 | ) |
| | | | | | | | | | | | | | | | | | | | |
Total Borrowings | | $ | 0 | | | $ | (3,041 | ) | | $ | 0 | | | $ | (1,397 | ) | | $ | (4,438 | ) |
| | | | | | | | | | | | | | | | | | | | |
Payable for reverse repurchase agreements and sale-buyback financing transactions | | | | | | | $ | (4,438 | ) |
| | | | | | | | | | | | | | | | | | | | |
| (k) | Securities with an aggregate market value of $4,505 have been pledged as collateral under the terms of the above master agreements as of December 31, 2020. |
| (1) | The average amount of borrowings outstanding during the period ended December 31, 2020 was $(5,549) at a weighted average interest rate of 0.280%. Average borrowings may include reverse repurchase agreements and sale-buyback transactions, if held during the period. |
| (2) | Open maturity reverse repurchase agreement. |
| (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. |
| | | | | | |
| See Accompanying Notes | | SEMIANNUAL REPORT | | DECEMBER 31, 2020 | | 39 |
Schedule of Investments PIMCO Dividend and Income Fund (Cont.)
(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 | |
Euro-BTP Italy Government Bond March Futures | | | 03/2021 | | | | 7 | | | $ | 1,300 | | | $ | 5 | | | $ | 1 | | | $ | 0 | |
U.S. Treasury 10-Year Note March Futures | | | 03/2021 | | | | 129 | | | | 17,812 | | | | (3 | ) | | | 14 | | | | 0 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | $ | 2 | | | $ | 15 | | | $ | 0 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
SHORT FUTURES CONTRACTS
| | | | | | | | | | | | | | | | | | | | | | | | |
| Description | | Expiration
Month | | | # of
Contracts | | | Notional
Amount | | | Unrealized
Appreciation/
(Depreciation) | | | Variation Margin | |
| | Asset | | | Liability | |
Australia Government 10-Year Bond March Futures | | | 03/2021 | | | | 18 | | | $ | (2,043 | ) | | $ | (11 | ) | | $ | 2 | | | $ | (2 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total Futures Contracts | | | $ | (9 | ) | | $ | 17 | | | $ | (2 | ) |
| | | | | | | | | | | | | |
SWAP AGREEMENTS:
CREDIT DEFAULT SWAPS ON CREDIT INDICES - BUY PROTECTION(1)
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Index/Tranches | | Fixed
(Pay) Rate | | | Payment
Frequency | | | Maturity
Date | | | Notional
Amount(3) | | | Premiums
Paid/
(Received) | | | Unrealized
Appreciation/
(Depreciation) | | | Market
Value(4) | | | Variation Margin | |
| | Asset | | | Liability | |
CDX.HY-35 5-Year Index | | | (5.000 | )% | | | Quarterly | | | | 12/20/2025 | | | $ | 300 | | | $ | (12 | ) | | $ | (16 | ) | | $ | (28 | ) | | $ | 0 | | | $ | (1 | ) |
CDX.IG-31 5-Year Index | | | (1.000 | ) | | | Quarterly | | | | 12/20/2023 | | | | 100 | | | | (1 | ) | | | (2 | ) | | | (3 | ) | | | 0 | | | | 1 | |
CDX.IG-33 5-Year Index | | | (1.000 | ) | | | Quarterly | | | | 12/20/2024 | | | | 900 | | | | (14 | ) | | | (1 | ) | | | (15 | ) | | | 0 | | | | (1 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | $ | (27 | ) | | $ | (19 | ) | | $ | (46 | ) | | $ | 0 | | | $ | (1 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
CREDIT DEFAULT SWAPS ON CREDIT INDICES - SELL PROTECTION(2)
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Index/Tranches | | Fixed
Receive Rate | | | Payment
Frequency | | | Maturity
Date | | | Notional
Amount(3) | | | Premiums
Paid/
(Received) | | | Unrealized
Appreciation/
(Depreciation) | | | Market
Value(4) | | | Variation Margin | |
| | Asset | | | Liability | |
CDX.EM-34 5-Year Index | | | 1.000 | % | | | Quarterly | | | | 12/20/2025 | | | $ | 300 | | | $ | (20 | ) | | $ | 13 | | | $ | (7 | ) | | $ | 1 | | | $ | 0 | |
iTraxx Europe Main 34 5-Year Index | | | 1.000 | | | | Quarterly | | | | 12/20/2025 | | | EUR | 800 | | | | 22 | | | | 4 | | | | 26 | | | | 0 | | | | 0 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | $ | 2 | | | $ | 17 | | | $ | 19 | | | $ | 1 | | | $ | 0 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
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 | |
| Receive(5) | | 1-Day GBP-SONIO Compounded-OIS | | | 0.250 | % | | Annual | | | 03/17/2031 | | | GBP | 900 | | | $ | (4 | ) | | $ | (7 | ) | | $ | (11 | ) | | $ | 0 | | | $ | (3 | ) |
| Receive | | 1-Year BRL-CDI | | | 2.840 | | | Maturity | | | 01/03/2022 | | | BRL | 100 | | | | 0 | | | | 0 | | | | 0 | | | | 0 | | | | 0 | |
| Receive | | 1-Year BRL-CDI | | | 2.848 | | | Maturity | | | 01/03/2022 | | | | 100 | | | | 0 | | | | 0 | | | | 0 | | | | 0 | | | | 0 | |
| | | | | | |
| 40 | | PIMCO EQUITY SERIES | | | | See Accompanying Notes |
(Unaudited)
December 31, 2020
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
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 | | 1-Year BRL-CDI | | | 2.859 | % | | Maturity | | | 01/03/2022 | | | BRL | 400 | | | $ | 0 | | | $ | 0 | | | $ | 0 | | | $ | 0 | | | $ | 0 | |
| Receive | | 1-Year BRL-CDI | | | 2.865 | | | Maturity | | | 01/03/2022 | | | | 200 | | | | 0 | | | | 0 | | | | 0 | | | | 0 | | | | 0 | |
| Receive | | 1-Year BRL-CDI | | | 2.870 | | | Maturity | | | 01/03/2022 | | | | 100 | | | | 0 | | | | 0 | | | | 0 | | | | 0 | | | | 0 | |
| Receive | | 1-Year BRL-CDI | | | 2.880 | | | Maturity | | | 01/03/2022 | | | | 100 | | | | 0 | | | | 0 | | | | 0 | | | | 0 | | | | 0 | |
| Receive | | 1-Year BRL-CDI | | | 2.883 | | | Maturity | | | 01/03/2022 | | | | 300 | | | | 0 | | | | 0 | | | | 0 | | | | 0 | | | | 0 | |
| Receive | | 1-Year BRL-CDI | | | 2.884 | | | Maturity | | | 01/03/2022 | | | | 100 | | | | 0 | | | | 0 | | | | 0 | | | | 0 | | | | 0 | |
| Receive | | 1-Year BRL-CDI | | | 2.886 | | | Maturity | | | 01/03/2022 | | | | 100 | | | | 0 | | | | 0 | | | | 0 | | | | 0 | | | | 0 | |
| Pay | | 1-Year BRL-CDI | | | 3.060 | | | Maturity | | | 01/03/2022 | | | | 3,000 | | | | 0 | | | | 1 | | | | 1 | | | | 0 | | | | 0 | |
| Pay | | 1-Year BRL-CDI | | | 5.830 | | | Maturity | | | 01/02/2023 | | | | 800 | | | | 8 | | | | 1 | | | | 9 | | | | 0 | | | | 0 | |
| Pay | | 1-Year BRL-CDI | | | 5.836 | | | Maturity | | | 01/02/2023 | | | | 600 | | | | 6 | | | | 0 | | | | 6 | | | | 0 | | | | 0 | |
| Pay | | 1-Year BRL-CDI | | | 5.855 | | | Maturity | | | 01/02/2023 | | | | 200 | | | | 2 | | | | 0 | | | | 2 | | | | 0 | | | | 0 | |
| Receive | | 3-Month USD-LIBOR | | | 1.500 | | | Semi-Annual | | | 12/18/2021 | | | $ | 100 | | | | (2 | ) | | | 1 | | | | (1 | ) | | | 0 | | | | 0 | |
| Receive | | 3-Month USD-LIBOR | | | 1.000 | | | Semi-Annual | | | 06/17/2022 | | | | 500 | | | | (7 | ) | | | 1 | | | | (6 | ) | | | 0 | | | | 0 | |
| Receive | | 3-Month USD-LIBOR | | | 2.500 | | | Semi-Annual | | | 12/18/2024 | | | | 3,100 | | | | (293 | ) | | | 23 | | | | (270 | ) | | | 0 | | | | (2 | ) |
| Receive | | 3-Month USD-LIBOR | | | 3.000 | | | Semi-Annual | | | 06/19/2026 | | | | 2,300 | | | | (345 | ) | | | 28 | | | | (317 | ) | | | 0 | | | | (2 | ) |
| Receive | | 3-Month USD-LIBOR | | | 1.740 | | | Semi-Annual | | | 12/16/2026 | | | | 100 | | | | (8 | ) | | | 1 | | | | (7 | ) | | | 0 | | | | 0 | |
| Receive | | 3-Month USD-LIBOR | | | 2.250 | | | Semi-Annual | | | 06/20/2028 | | | | 4,900 | | | | (642 | ) | | | 78 | | | | (564 | ) | | | 0 | | | | (7 | ) |
| Receive | | 3-Month USD-LIBOR | | | 2.000 | | | Semi-Annual | | | 12/10/2029 | | | | 100 | | | | (12 | ) | | | 2 | | | | (10 | ) | | | 0 | | | | 0 | |
| Receive | | 3-Month USD-LIBOR | | | 1.500 | | | Semi-Annual | | | 12/18/2029 | | | | 200 | | | | (15 | ) | | | 3 | | | | (12 | ) | | | 0 | | | | 0 | |
| Receive | | 3-Month USD-LIBOR | | | 1.750 | | | Semi-Annual | | | 01/15/2030 | | | | 300 | | | | (30 | ) | | | 4 | | | | (26 | ) | | | 0 | | | | 0 | |
| Receive | | 3-Month USD-LIBOR | | | 2.000 | | | Semi-Annual | | | 02/12/2030 | | | | 200 | | | | (25 | ) | | | 3 | | | | (22 | ) | | | 0 | | | | 0 | |
| Receive | | 3-Month USD-LIBOR | | | 2.000 | | | Semi-Annual | | | 03/10/2030 | | | | 100 | | | | (13 | ) | | | 2 | | | | (11 | ) | | | 0 | | | | 0 | |
| Receive | | 3-Month USD-LIBOR | | | 1.250 | | | Semi-Annual | | | 06/17/2030 | | | | 2,400 | | | | (130 | ) | | | 48 | | | | (82 | ) | | | 0 | | | | (3 | ) |
| Receive | | 3-Month USD-LIBOR | | | 1.910 | | | Semi-Annual | | | 10/17/2049 | | | | 100 | | | | (23 | ) | | | 10 | | | | (13 | ) | | | 0 | | | | 0 | |
| Receive | | 3-Month USD-LIBOR | | | 1.895 | | | Semi-Annual | | | 10/18/2049 | | | | 100 | | | | (23 | ) | | | 10 | | | | (13 | ) | | | 0 | | | | 0 | |
| Receive | | 3-Month USD-LIBOR | | | 2.250 | | | Semi-Annual | | | 12/11/2049 | | | | 900 | | | | (292 | ) | | | 101 | | | | (191 | ) | | | 0 | | | | (4 | ) |
| Receive | | 3-Month USD-LIBOR | | | 2.000 | | | Semi-Annual | | | 01/15/2050 | | | | 100 | | | | (26 | ) | | | 10 | | | | (16 | ) | | | 0 | | | | (1 | ) |
| Receive | | 3-Month USD-LIBOR | | | 1.625 | | | Semi-Annual | | | 01/16/2050 | | | | 100 | | | | (16 | ) | | | 10 | | | | (6 | ) | | | 0 | | | | 0 | |
| Receive | | 3-Month USD-LIBOR | | | 1.750 | | | Semi-Annual | | | 01/22/2050 | | | | 500 | | | | (97 | ) | | | 50 | | | | (47 | ) | | | 0 | | | | (2 | ) |
| Receive | | 3-Month USD-LIBOR | | | 1.625 | | | Semi-Annual | | | 02/03/2050 | | | | 300 | | | | (48 | ) | | | 30 | | | | (18 | ) | | | 0 | | | | (1 | ) |
| Receive | | 3-Month USD-LIBOR | | | 2.250 | | | Semi-Annual | | | 03/12/2050 | | | | 600 | | | | (196 | ) | | | 65 | | | | (131 | ) | | | 0 | | | | (3 | ) |
| Pay | | 3-Month ZAR-JIBAR | | | 7.250 | | | Quarterly | | | 09/19/2023 | | | ZAR | 900 | | | | 5 | | | | 0 | | | | 5 | | | | 0 | | | | 0 | |
| Receive | | 3-Month ZAR-JIBAR | | | 8.300 | | | Quarterly | | | 03/15/2027 | | | | 600 | | | | (5 | ) | | | (2 | ) | | | (7 | ) | | | 0 | | | | 0 | |
| Pay | | 6-Month AUD-BBR-BBSW | | | 2.750 | | | Semi-Annual | | | 06/17/2026 | | | AUD | 5,080 | | | | 483 | | | | 13 | | | | 496 | | | | 2 | | | | 0 | |
| Receive | | 6-Month AUD-BBR-BBSW | | | 3.000 | | | Semi-Annual | | | 03/21/2027 | | | | 80 | | | | (9 | ) | | | (1 | ) | | | (10 | ) | | | 0 | | | | 0 | |
| Receive | | 6-Month EUR-EURIBOR | | | 0.150 | | | Annual | | | 03/18/2030 | | | EUR | 800 | | | | (2 | ) | | | (11 | ) | | | (13 | ) | | | 0 | | | | 0 | |
| Receive(5) | | 6-Month JPY-LIBOR | | | 0.020 | | | Semi-Annual | | | 09/20/2028 | | | JPY | 210,000 | | | | 4 | | | | (1 | ) | | | 3 | | | | 1 | | | | 0 | |
| Receive(5) | | 6-Month JPY-LIBOR | | | 0.000 | | | Semi-Annual | | | 03/15/2029 | | | | 341,000 | | | | 4 | | | | (2 | ) | | | 2 | | | | 1 | | | | 0 | |
| Receive | | 28-Day MXN-TIIE | | | 6.950 | | | Lunar | | | 06/17/2022 | | | MXN | 32,100 | | | | (66 | ) | | | 0 | | | | (66 | ) | | | 0 | | | | (1 | ) |
| Pay | | 28-Day MXN-TIIE | | | 7.640 | | | Lunar | | | 01/03/2023 | | | | 200 | | | | 1 | | | | 0 | | | | 1 | | | | 0 | | | | 0 | |
| Pay | | 28-Day MXN-TIIE | | | 7.645 | | | Lunar | | | 01/03/2023 | | | | 2,000 | | | | 6 | | | | 1 | | | | 7 | | | | 0 | | | | 0 | |
| Pay | | 28-Day MXN-TIIE | | | 7.745 | | | Lunar | | | 01/05/2023 | | | | 1,400 | | | | 5 | | | | 0 | | | | 5 | | | | 0 | | | | 0 | |
| Pay | | 28-Day MXN-TIIE | | | 7.610 | | | Lunar | | | 01/23/2023 | | | | 6,000 | | | | 19 | | | | 1 | | | | 20 | | | | 0 | | | | 0 | |
| Pay | | 28-Day MXN-TIIE | | | 7.805 | | | Lunar | | | 02/06/2023 | | | | 3,400 | | | | 12 | | | | 0 | | | | 12 | | | | 0 | | | | 0 | |
| Pay | | 28-Day MXN-TIIE | | | 7.820 | | | Lunar | | | 02/06/2023 | | | | 3,400 | | | | 12 | | | | 1 | | | | 13 | | | | 0 | | | | 0 | |
| Pay | | 28-Day MXN-TIIE | | | 5.950 | | | Lunar | | | 01/30/2026 | | | | 600 | | | | 1 | | | | 1 | | | | 2 | | | | 0 | | | | 0 | |
| Pay | | 28-Day MXN-TIIE | | | 5.990 | | | Lunar | | | 01/30/2026 | | | | 4,300 | | | | 9 | | | | 4 | | | | 13 | | | | 0 | | | | 0 | |
| Pay | | 28-Day MXN-TIIE | | | 6.080 | | | Lunar | | | 03/10/2026 | | | | 15,500 | | | | 35 | | | | 15 | | | | 50 | | | | 1 | | | | 0 | |
| Pay | | 28-Day MXN-TIIE | | | 6.490 | | | Lunar | | | 09/08/2026 | | | | 30,000 | | | | 97 | | | | 34 | | | | 131 | | | | 1 | | | | 0 | |
| Pay | | 28-Day MXN-TIIE | | | 7.380 | | | Lunar | | | 11/04/2026 | | | | 100 | | | | 1 | | | | 0 | | | | 1 | | | | 0 | | | | 0 | |
| Pay | | 28-Day MXN-TIIE | | | 8.090 | | | Lunar | | | 01/15/2027 | | | | 3,300 | | | | 24 | | | | 5 | | | | 29 | | | | 0 | | | | 0 | |
| Pay | | 28-Day MXN-TIIE | | | 8.120 | | | Lunar | | | 01/15/2027 | | | | 700 | | | | 5 | | | | 1 | | | | 6 | | | | 0 | | | | 0 | |
| Pay | | 28-Day MXN-TIIE | | | 7.865 | | | Lunar | | | 02/02/2027 | | | | 2,400 | | | | 16 | | | | 4 | | | | 20 | | | | 0 | | | | 0 | |
| Pay | | 28-Day MXN-TIIE | | | 8.010 | | | Lunar | | | 02/04/2027 | | | | 1,200 | | | | 8 | | | | 2 | | | | 10 | | | | 0 | | | | 0 | |
| Pay | | 28-Day MXN-TIIE | | | 7.818 | | | Lunar | | | 02/17/2027 | | | | 1,100 | | | | 7 | | | | 2 | | | | 9 | | | | 0 | | | | 0 | |
| Pay | | 28-Day MXN-TIIE | | | 7.150 | | | Lunar | | | 06/11/2027 | | | | 1,200 | | | | 6 | | | | 2 | | | | 8 | | | | 0 | | | | 0 | |
| Pay | | 28-Day MXN-TIIE | | | 7.370 | | | Lunar | | | 10/11/2027 | | | | 2,500 | | | | 14 | | | | 4 | | | | 18 | | | | 0 | | | | 0 | |
| Receive | | 28-Day MXN-TIIE | | | 7.984 | | | Lunar | | | 12/10/2027 | | | | 2,900 | | | | (22 | ) | | | (4 | ) | | | (26 | ) | | | 0 | | | | 0 | |
| Receive | | 28-Day MXN-TIIE | | | 8.005 | | | Lunar | | | 12/21/2027 | | | | 11,400 | | | | (86 | ) | | | (18 | ) | | | (104 | ) | | | 0 | | | | (1 | ) |
| Receive | | 28-Day MXN-TIIE | | | 7.800 | | | Lunar | | | 12/28/2027 | | | | 1,200 | | | | (8 | ) | | | (2 | ) | | | (10 | ) | | | 0 | | | | 0 | |
| Receive | | 28-Day MXN-TIIE | | | 7.910 | | | Lunar | | | 12/30/2027 | | | | 700 | | | | (5 | ) | | | (1 | ) | | | (6 | ) | | | 0 | | | | 0 | |
| Receive | | 28-Day MXN-TIIE | | | 8.030 | | | Lunar | | | 01/31/2028 | | | | 2,000 | | | | (15 | ) | | | (4 | ) | | | (19 | ) | | | 0 | | | | 0 | |
| Receive | | 28-Day MXN-TIIE | | | 8.050 | | | Lunar | | | 01/31/2028 | | | | 1,900 | | | | (15 | ) | | | (3 | ) | | | (18 | ) | | | 0 | | | | 0 | |
| | | | | | |
| See Accompanying Notes | | SEMIANNUAL REPORT | | DECEMBER 31, 2020 | | 41 |
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 | |
| Pay | | 28-Day MXN-TIIE | | | 7.165 | % | | Lunar | | | 09/06/2032 | | | | MXN 400 | | | $ | 2 | | | $ | 1 | | | $ | 3 | | | $ | 0 | | | $ | 0 | |
| Pay | | 28-Day MXN-TIIE | | | 7.380 | | | Lunar | | | 08/14/2037 | | | | 100 | | | | 1 | | | | 0 | | | | 1 | | | | 0 | | | | 0 | |
| Pay | | 28-Day MXN-TIIE | | | 7.360 | | | Lunar | | | 08/21/2037 | | | | 100 | | | | 1 | | | | 0 | | | | 1 | | | | 0 | | | | 0 | |
| Receive | | 28-Day MXN-TIIE | | | 8.103 | | | Lunar | | | 01/04/2038 | | | | 900 | | | | (9 | ) | | | (2 | ) | | | (11 | ) | | | 0 | | | | 0 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | $ | (1,695 | ) | | $ | 515 | | | $ | (1,180 | ) | | $ | 6 | | | $ | (30 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total Swap Agreements | | | | | | | | | | | | | | | | $ | (1,720 | ) | | $ | 513 | | | $ | (1,207 | ) | | $ | 7 | | | $ | (31 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
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, 2020:
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | 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 | | | $ | 17 | | | $ | 7 | | | $ | 24 | | | | | | | $ | 0 | | | $ | (2 | ) | | $ | (31 | ) | | $ | (33 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| (m) | Securities with an aggregate market value of $694 and cash of $651 have been pledged as collateral for exchange-traded and centrally cleared financial derivative instruments as of December 31, 2020. See Note 8, Master Netting Arrangements, in the Notes to Financial Statements for more information. |
| (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) | 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. |
| (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 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 underlying referenced instrument’s credit soundness and a greater likelihood or risk of default or other credit event occurring as defined under the terms of the agreement. |
| (5) | 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. |
| | | | | | |
| 42 | | PIMCO EQUITY SERIES | | | | See Accompanying Notes |
(Unaudited)
December 31, 2020
(n) 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 | | | 01/2021 | | | | BRL | | | | 112 | | | $ | | | | | 21 | | | $ | 0 | | | $ | 0 | |
| | | 01/2021 | | | | JPY | | | | 1,563 | | | | | | | | 15 | | | | 0 | | | | 0 | |
| | | 01/2021 | | | $ | | | | | 22 | | | | BRL | | | | 112 | | | | 0 | | | | (1 | ) |
| | | 01/2021 | | | | | | | | 43 | | | | ZAR | | | | 672 | | | | 3 | | | | 0 | |
| | | 02/2021 | | | | | | | | 163 | | | | NOK | | | | 1,520 | | | | 14 | | | | 0 | |
| | | 02/2021 | | | | | | | | 153 | | | | SEK | | | | 1,325 | | | | 8 | | | | 0 | |
| | | 02/2021 | | | | | | | | 8 | | | | TRY | | | | 61 | | | | 0 | | | | 0 | |
| | | 03/2021 | | | | | | | | 381 | | | | INR | | | | 28,672 | | | | 9 | | | | 0 | |
| | | 06/2021 | | | | | | | | 214 | | | | MXN | | | | 4,621 | | | | 14 | | | | 0 | |
BPS | | | 01/2021 | | | | | | | | 304 | | | | AUD | | | | 413 | | | | 15 | | | | 0 | |
| | | 01/2021 | | | | | | | | 49 | | | | GBP | | | | 36 | | | | 1 | | | | 0 | |
| | | 01/2021 | | | | | | | | 9 | | | | TRY | | | | 73 | | | | 0 | | | | 0 | |
BRC | | | 01/2021 | | | | | | | | 24 | | | | | | | | 183 | | | | 1 | | | | 0 | |
| | | 01/2021 | | | | ZAR | | | | 237 | | | $ | | | | | 16 | | | | 0 | | | | 0 | |
| | | 02/2021 | | | $ | | | | | 15 | | | | TRY | | | | 113 | | | | 0 | | | | 0 | |
CBK | | | 01/2021 | | | | | | | | 147 | | | | PEN | | | | 528 | | | | 0 | | | | (1 | ) |
| | | 01/2021 | | | | | | | | 44 | | | | RUB | | | | 3,386 | | | | 2 | | | | 0 | |
| | | 01/2021 | | | | | | | | 99 | | | | ZAR | | | | 1,540 | | | | 6 | | | | 0 | |
| | | 01/2021 | | | | ZAR | | | | 837 | | | $ | | | | | 56 | | | | 0 | | | | (1 | ) |
| | | 02/2021 | | | $ | | | | | 58 | | | | MXN | | | | 1,341 | | | | 9 | | | | 0 | |
| | | 02/2021 | | | | | | | | 53 | | | | RUB | | | | 3,933 | | | | 0 | | | | (1 | ) |
| | | 02/2021 | | | | | | | | 157 | | | | SEK | | | | 1,380 | | | | 11 | | | | 0 | |
| | | 02/2021 | | | | | | | | 14 | | | | TRY | | | | 107 | | | | 0 | | | | 0 | |
| | | 06/2021 | | | | PEN | | | | 528 | | | $ | | | | | 146 | | | | 1 | | | | 0 | |
DUB | | | 03/2021 | | | | | | | | 103 | | | | | | | | 29 | | | | 0 | | | | 0 | |
FBF | | | 02/2021 | | | $ | | | | | 34 | | | | TRY | | | | 268 | | | | 1 | | | | 0 | |
GLM | | | 01/2021 | | | | BRL | | | | 112 | | | $ | | | | | 22 | | | | 0 | | | | 0 | |
| | | 01/2021 | | | $ | | | | | 21 | | | | BRL | | | | 112 | | | | 0 | | | | 0 | |
| | | 01/2021 | | | | | | | | 80 | | | | MXN | | | | 1,684 | | | | 5 | | | | 0 | |
| | | 01/2021 | | | | | | | | 55 | | | | RUB | | | | 4,215 | | | | 2 | | | | 0 | |
| | | 01/2021 | | | | ZAR | | | | 766 | | | $ | | | | | 51 | | | | 0 | | | | (1 | ) |
| | | 02/2021 | | | | NZD | | | | 946 | | | | | | | | 645 | | | | 0 | | | | (36 | ) |
| | | 02/2021 | | | $ | | | | | 22 | | | | BRL | | | | 112 | | | | 0 | | | | 0 | |
| | | 02/2021 | | | | | | | | 109 | | | | RUB | | | | 8,345 | | | | 3 | | | | 0 | |
| | | 02/2021 | | | | | | | | 13 | | | | TRY | | | | 97 | | | | 0 | | | | 0 | |
HUS | | | 01/2021 | | | | BRL | | | | 1,262 | | | $ | | | | | 249 | | | | 6 | | | | 0 | |
| | | 01/2021 | | | | GBP | | | | 3,245 | | | | | | | | 4,340 | | | | 0 | | | | (98 | ) |
| | | 01/2021 | | | | PEN | | | | 528 | | | | | | | | 149 | | | | 3 | | | | 0 | |
| | | 01/2021 | | | $ | | | | | 244 | | | | BRL | | | | 1,262 | | | | 0 | | | | (1 | ) |
| | | 01/2021 | | | | | | | | 124 | | | | ZAR | | | | 1,935 | | | | 8 | | | | 0 | |
| | | 02/2021 | | | | | | | | 249 | | | | BRL | | | | 1,262 | | | | 0 | | | | (6 | ) |
| | | 02/2021 | | | | | | | | 96 | | | | CHF | | | | 87 | | | | 3 | | | | 0 | |
| | | 02/2021 | | | | | | | | 145 | | | | NOK | | | | 1,320 | | | | 9 | | | | 0 | |
| | | 02/2021 | | | | | | | | 163 | | | | RUB | | | | 12,173 | | | | 1 | | | | 0 | |
| | | 02/2021 | | | | | | | | 2 | | | | TRY | | | | 15 | | | | 0 | | | | 0 | |
| | | 03/2021 | | | | PEN | | | | 41 | | | $ | | | | | 12 | | | | 0 | | | | 0 | |
| | | 05/2021 | | | $ | | | | | 383 | | | | MXN | | | | 7,930 | | | | 10 | | | | 0 | |
IND | | | 02/2021 | | | | | | | | 2 | | | | TRY | | | | 15 | | | | 0 | | | | 0 | |
JPM | | | 01/2021 | | | | | | | | 48 | | | | CLP | | | | 37,608 | | | | 5 | | | | 0 | |
| | | 01/2021 | | | | | | | | 10 | | | | RUB | | | | 734 | | | | 0 | | | | 0 | |
| | | 01/2021 | | | | | | | | 42 | | | | TRY | | | | 330 | | | | 2 | | | | 0 | |
| | | 02/2021 | | | | | | | | 38 | | | | | | | | 294 | | | | 1 | | | | 0 | |
MYI | | | 01/2021 | | | | | | | | 53 | | | | GBP | | | | 39 | | | | 0 | | | | 0 | |
| | | 01/2021 | | | | | | | | 19 | | | | TRY | | | | 146 | | | | 1 | | | | 0 | |
| | | | | | |
| See Accompanying Notes | | SEMIANNUAL REPORT | | DECEMBER 31, 2020 | | 43 |
Schedule of Investments PIMCO Dividend and Income Fund (Cont.)
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Counterparty | | Settlement
Month | | | Currency to
be Delivered | | | Currency to
be Received | | | Unrealized Appreciation/
(Depreciation) | |
| | Asset | | | Liability | |
| | | 01/2021 | | | $ | | | | | 41 | | | | ZAR | | | | 636 | | | $ | 2 | | | $ | 0 | |
| | | 02/2021 | | | | | | | | 634 | | | | NZD | | | | 920 | | | | 29 | | | | 0 | |
| | | 02/2021 | | | | | | | | 7 | | | | TRY | | | | 53 | | | | 0 | | | | 0 | |
RYL | | | 02/2021 | | | | | | | | 15 | | | | | | | | 114 | | | | 0 | | | | 0 | |
SCX | | | 01/2021 | | | | EUR | | | | 1,473 | | | $ | | | | | 1,764 | | | | 0 | | | | (35 | ) |
| | | 01/2021 | | | $ | | | | | 14 | | | | TRY | | | | 106 | | | | 0 | | | | 0 | |
| | | 01/2021 | | | | ZAR | | | | 1,468 | | | $ | | | | | 99 | | | | 0 | | | | 0 | |
| | | 02/2021 | | | | EUR | | | | 1,473 | | | | | | | | 1,803 | | | | 3 | | | | 0 | |
| | | 02/2021 | | | $ | | | | | 29 | | | | RUB | | | | 2,260 | | | | 1 | | | | 0 | |
| | | 02/2021 | | | | | | | | 21 | | | | TRY | | | | 159 | | | | 0 | | | | 0 | |
| | | 03/2021 | | | | | | | | 142 | | | | IDR | | | | 2,037,957 | | | | 4 | | | | 0 | |
SSB | | | 01/2021 | | | | BRL | | | | 947 | | | $ | | | | | 182 | | | | 0 | | | | 0 | |
| | | 01/2021 | | | $ | | | | | 178 | | | | BRL | | | | 947 | | | | 4 | | | | 0 | |
| | | 01/2021 | | | | | | | | 11 | | | | ZAR | | | | 164 | | | | 0 | | | | 0 | |
| | | 03/2021 | | | | | | | | 254 | | | | MXN | | | | 5,510 | | | | 21 | | | | 0 | |
UAG | | | 01/2021 | | | | | | | | 46 | | | | | | | | 936 | | | | 1 | | | | 0 | |
| | | 01/2021 | | | | | | | | 6 | | | | RUB | | | | 485 | | | | 0 | | | | 0 | |
| | | 01/2021 | | | | | | | | 38 | | | | TRY | | | | 295 | | | | 1 | | | | 0 | |
| | | 01/2021 | | | | ZAR | | | | 296 | | | $ | | | | | 20 | | | | 0 | | | | 0 | |
| | | 02/2021 | | | $ | | | | | 367 | | | | RUB | | | | 27,708 | | | | 6 | | | | (1 | ) |
| | | 02/2021 | | | | | | | | 3 | | | | TRY | | | | 23 | | | | 0 | | | | 0 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total Forward Foreign Currency Contracts | | | $ | 226 | | | $ | (182 | ) |
| | | | | | | | | |
WRITTEN OPTIONS:
FOREIGN CURRENCY OPTIONS
| | | | | | | | | | | | | | | | | | | | | | | | | | |
| Counterparty | | Description | | Strike
Price | | | Expiration
Date | | | Notional
Amount(1) | | | Premiums
(Received) | | | Market
Value | |
BOA | | Put - OTC USD versus CNH | | | CNH | | | | 6.520 | | | | 01/14/2021 | | | | 48 | | | $ | 0 | | | $ | 0 | |
| | Call - OTC USD versus CNH | | | | | | | 6.780 | | | | 01/14/2021 | | | | 48 | | | | 0 | | | | 0 | |
GLM | | Put - OTC USD versus CNH | | | | | | | 6.534 | | | | 01/15/2021 | | | | 38 | | | | 0 | | | | 0 | |
| | Call - OTC USD versus CNH | | | | | | | 6.792 | | | | 01/15/2021 | | | | 38 | | | | 0 | | | | 0 | |
HUS | | Put - OTC USD versus CNH | | | | | | | 6.530 | | | | 02/05/2021 | | | | 67 | | | | (1 | ) | | | (1 | ) |
| | Call - OTC USD versus CNH | | | | | | | 6.800 | | | | 02/05/2021 | | | | 67 | | | | (1 | ) | | | 0 | |
| | Put - OTC USD versus CNH | | | | | | | 6.510 | | | | 02/08/2021 | | | | 51 | | | | 0 | | | | 0 | |
| | Call - OTC USD versus CNH | | | | | | | 6.810 | | | | 02/08/2021 | | | | 51 | | | | 0 | | | | 0 | |
| | Put - OTC USD versus CNH | | | | | | | 6.450 | | | | 02/19/2021 | | | | 58 | | | | 0 | | | | 0 | |
| | Call - OTC USD versus CNH | | | | | | | 6.700 | | | | 02/19/2021 | | | | 58 | | | | 0 | | | | 0 | |
SCX | | Put - OTC USD versus CNH | | | | | | | 6.400 | | | | 03/09/2021 | | | | 116 | | | | (1 | ) | | | (1 | ) |
| | Call - OTC USD versus CNH | | | | | | | 6.680 | | | | 03/09/2021 | | | | 116 | | | | (1 | ) | | | (1 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | $ | (4 | ) | | $ | (3 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | |
INTEREST RATE SWAPTIONS
| | | | | | | | | | | | | | | | | | | | | | | | | | |
| Counterparty | | Description | | Floating Rate Index | | Pay/Receive
Floating Rate | | Exercise
Rate | | | Expiration
Date | | | Notional
Amount(1) | | | Premiums
(Received) | | | Market
Value | |
MYC | | Call - OTC 30-Year Interest Rate Swap | | 3-Month USD-LIBOR | | Receive | | | 1.131 | % | | | 01/19/2021 | | | | 100 | | | $ | (1 | ) | | $ | 0 | |
| | Put - OTC 30-Year Interest Rate Swap | | 3-Month USD-LIBOR | | Pay | | | 1.491 | | | | 01/19/2021 | | | | 100 | | | | (1 | ) | | | (1 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | $ | (2 | ) | | $ | (1 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total Written Options | | | $ | (6 | ) | | $ | (4 | ) |
| | | | | | | | | |
| | | | | | |
| 44 | | PIMCO EQUITY SERIES | | | | See Accompanying Notes |
(Unaudited)
December 31, 2020
SWAP AGREEMENTS:
CREDIT DEFAULT SWAPS ON CORPORATE AND SOVEREIGN ISSUES - SELL PROTECTION(2)
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Counterparty | | Reference Entity | | Fixed
Receive Rate | | | Payment
Frequency | | Maturity
Date | | | Implied Credit
Spread at
December 31,
2020(3) | | | Notional
Amount(4) | | | Premiums
Paid/
(Received) | | | Unrealized
Appreciation/
(Depreciation) | | | Swap
Agreements,
at Value(5) | |
| | Asset | | | Liability | |
BPS | | Mexico Government International Bond | | | 1.000 | % | | Quarterly | | | 06/20/2024 | | | | 0.485 | % | | $ | 100 | | | $ | (1 | ) | | $ | 3 | | | $ | 2 | | | $ | 0 | |
CBK | | Brazil Government International Bond | | | 1.000 | | | Quarterly | | | 12/20/2022 | | | | 0.630 | | | | 245 | | | | (8 | ) | | | 10 | | | | 2 | | | | 0 | |
| | Brazil Government International Bond | | | 1.000 | | | Quarterly | | | 12/20/2024 | | | | 1.143 | | | | 300 | | | | (5 | ) | | | 3 | | | | 0 | | | | (2 | ) |
| | Mexico Government International Bond | | | 1.000 | | | Quarterly | | | 06/20/2024 | | | | 0.485 | | | | 40 | | | | (1 | ) | | | 2 | | | | 1 | | | | 0 | |
GST | | Brazil Government International Bond | | | 1.000 | | | Quarterly | | | 12/20/2024 | | | | 1.143 | | | | 200 | | | | (3 | ) | | | 2 | | | | 0 | | | | (1 | ) |
| | Colombia Government International Bond | | | 1.000 | | | Quarterly | | | 12/20/2023 | | | | 0.432 | | | | 50 | | | | (1 | ) | | | 2 | | | | 1 | | | | 0 | |
| | Mexico Government International Bond | | | 1.000 | | | Quarterly | | | 06/20/2023 | | | | 0.323 | | | | 100 | | | | (1 | ) | | | 3 | | | | 2 | | | | 0 | |
| | Mexico Government International Bond | | | 1.000 | | | Quarterly | | | 12/20/2024 | | | | 0.566 | | | | 100 | | | | (1 | ) | | | 3 | | | | 2 | | | | 0 | |
| | Petrobras Global Finance BV | | | 1.000 | | | Quarterly | | | 12/20/2021 | | | | 0.272 | | | | 200 | | | | (37 | ) | | | 38 | | | | 1 | | | | 0 | |
HUS | | Brazil Government International Bond | | | 1.000 | | | Quarterly | | | 06/20/2024 | | | | 1.033 | | | | 400 | | | | (12 | ) | | | 12 | | | | 0 | | | | 0 | |
| | Mexico Government International Bond | | | 1.000 | | | Quarterly | | | 12/20/2023 | | | | 0.376 | | | | 300 | | | | (5 | ) | | | 10 | | | | 5 | | | | 0 | |
| | Mexico Government International Bond | | | 1.000 | | | Quarterly | | | 06/20/2024 | | | | 0.485 | | | | 100 | | | | (1 | ) | | | 3 | | | | 2 | | | | 0 | |
JPM | | South Africa Government International Bond | | | 1.000 | | | Quarterly | | | 06/20/2023 | | | | 1.160 | | | | 100 | | | | (5 | ) | | | 5 | | | | 0 | | | | 0 | |
MYC | | Mexico Government International Bond | | | 1.000 | | | Quarterly | | | 12/20/2024 | | | | 0.566 | | | | 300 | | | | (2 | ) | | | 7 | | | | 5 | | | | 0 | |
| | Mexico Government International Bond | | | 1.000 | | | Quarterly | | | 12/20/2025 | | | | 0.812 | | | | 200 | | | | (3 | ) | | | 5 | | | | 2 | | | | 0 | |
| | South Africa Government International Bond | | | 1.000 | | | Quarterly | | | 12/20/2022 | | | | 0.905 | | | | 400 | | | | (8 | ) | | | 9 | | | | 1 | | | | 0 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | $ | (94 | ) | | $ | 117 | | | $ | 26 | | | $ | (3 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
CREDIT DEFAULT SWAPS ON CREDIT INDICES - SELL PROTECTION(2)
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Counterparty | | Index/Tranches | | Fixed
Receive Rate | | | Payment
Frequency | | Maturity
Date | | | Notional
Amount(4) | | | Premiums
Paid/
(Received) | | | Unrealized
Appreciation/
(Depreciation) | | | Swap
Agreements,
at Value(5) | |
| | Asset | | | Liability | |
GST | | CMBX.NA.AAA.10 Index | | | 0.500 | % | | Monthly | | | 11/17/2059 | | | $ | 4,000 | | | $ | (85 | ) | | $ | 137 | | | $ | 52 | | | $ | 0 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
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 | |
AZD | | Pay | | 3-Month CNY-CNREPOFIX | | | 2.445 | % | | Quarterly | | | 06/17/2025 | | | | CNY 1,100 | | | $ | 0 | | | $ | (2 | ) | | $ | 0 | | | $ | (2 | ) |
CBK | | Pay | | 3-Month CNY-CNREPOFIX | | | 2.850 | | | Quarterly | | | 01/23/2025 | | | | 500 | | | | 0 | | | | 1 | | | | 1 | | | | 0 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | $ | 0 | | | $ | (1 | ) | | $ | 1 | | | $ | (2 | ) |
| | | | | | | | | | | | | | | | | | | | | |
Total Swap Agreements | | | $ | (179 | ) | | $ | 253 | | | $ | 79 | | | $ | (5 | ) |
| | | | | | | | | | | | | | | | | |
| | | | | | |
| See Accompanying Notes | | SEMIANNUAL REPORT | | DECEMBER 31, 2020 | | 45 |
Schedule of Investments PIMCO Dividend and Income Fund (Cont.)
FINANCIAL DERIVATIVE INSTRUMENTS: OVER THE COUNTER SUMMARY
The following is a summary by counterparty of the market value of OTC financial derivative instruments and collateral pledged/(received) as of December 31, 2020:
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | 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(6) | |
AZD | | $ | 0 | | | $ | 0 | | | $ | 0 | | | $ | 0 | | | | | | | $ | 0 | | | $ | 0 | | | $ | (2 | ) | | $ | (2 | ) | | $ | (2 | ) | | $ | 0 | | | $ | (2 | ) |
BOA | | | 48 | | | | 0 | | | | 0 | | | | 48 | | | | | | | | (1 | ) | | | 0 | | | | 0 | | | | (1 | ) | | | 47 | | | | 0 | | | | 47 | |
BPS | | | 16 | | | | 0 | | | | 2 | | | | 18 | | | | | | | | 0 | | | | 0 | | | | 0 | | | | 0 | | | | 18 | | | | 0 | | | | 18 | |
BRC | | | 1 | | | | 0 | | | | 0 | | | | 1 | | | | | | | | 0 | | | | 0 | | | | 0 | | | | 0 | | | | 1 | | | | 0 | | | | 1 | |
CBK | | | 29 | | | | 0 | | | | 4 | | | | 33 | | | | | | | | (3 | ) | | | 0 | | | | (2 | ) | | | (5 | ) | | | 28 | | | | 0 | | | | 28 | |
FBF | | | 1 | | | | 0 | | | | 0 | | | | 1 | | | | | | | | 0 | | | | 0 | | | | 0 | | | | 0 | | | | 1 | | | | 0 | | | | 1 | |
GLM | | | 10 | | | | 0 | | | | 0 | | | | 10 | | | | | | | | (37 | ) | | | 0 | | | | 0 | | | | (37 | ) | | | (27 | ) | | | 0 | | | | (27 | ) |
GST | | | 0 | | | | 0 | | | | 58 | | | | 58 | | | | | | | | 0 | | | | 0 | | | | (1 | ) | | | (1 | ) | | | 57 | | | | 0 | | | | 57 | |
HUS | | | 40 | | | | 0 | | | | 7 | | | | 47 | | | | | | | | (105 | ) | | | (1 | ) | | | 0 | | | | (106 | ) | | | (59 | ) | | | 0 | | | | (59 | ) |
JPM | | | 8 | | | | 0 | | | | 0 | | | | 8 | | | | | | | | 0 | | | | 0 | | | | 0 | | | | 0 | | | | 8 | | | | 0 | | | | 8 | |
MYC | | | 0 | | | | 0 | | | | 8 | | | | 8 | | | | | | | | 0 | | | | (1 | ) | | | 0 | | | | (1 | ) | | | 7 | | | | 0 | | | | 7 | |
MYI | | | 32 | | | | 0 | | | | 0 | | | | 32 | | | | | | | | 0 | | | | 0 | | | | 0 | | | | 0 | | | | 32 | | | | 0 | | | | 32 | |
SCX | | | 8 | | | | 0 | | | | 0 | | | | 8 | | | | | | | | (35 | ) | | | (2 | ) | | | 0 | | | | (37 | ) | | | (29 | ) | | | 0 | | | | (29 | ) |
SSB | | | 25 | | | | 0 | | | | 0 | | | | 25 | | | | | | | | 0 | | | | 0 | | | | 0 | | | | 0 | | | | 25 | | | | 0 | | | | 25 | |
UAG | | | 8 | | | | 0 | | | | 0 | | | | 8 | | | | | | | | (1 | ) | | | 0 | | | | 0 | | | | (1 | ) | | | 7 | | | | 0 | | | | 7 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total Over the Counter | | $ | 226 | | | $ | 0 | | | $ | 79 | | | $ | 305 | | | | | | | $ | (182 | ) | | $ | (4 | ) | | $ | (5 | ) | | $ | (191 | ) | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| (1) | Notional Amount represents the number of contracts. |
| (2) | 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. |
| (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 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 underlying referenced instrument’s credit soundness and a greater likelihood or risk of default or other credit event occurring as defined under the terms of the agreement. |
| (6) | 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. |
| | | | | | |
| 46 | | PIMCO EQUITY SERIES | | | | See Accompanying Notes |
(Unaudited)
December 31, 2020
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 and Other Risks, in the Notes to Financial Statements on risks of the Fund.
Fair Values of Financial Derivative Instruments on the Statement of Assets and Liabilities as of December 31, 2020:
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | 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 | | | $ | 17 | | | $ | 17 | |
Swap Agreements | | | 0 | | | | 1 | | | | 0 | | | | 0 | | | | 6 | | | | 7 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
| | $ | 0 | | | $ | 1 | | | $ | 0 | | | $ | 0 | | | $ | 23 | | | $ | 24 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Over the counter | |
Forward Foreign Currency Contracts | | $ | 0 | | | $ | 0 | | | $ | 0 | | | $ | 226 | | | $ | 0 | | | $ | 226 | |
Swap Agreements | | | 0 | | | | 78 | | | | 0 | | | | 0 | | | | 1 | | | | 79 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
| | $ | 0 | | | $ | 78 | | | $ | 0 | | | $ | 226 | | | $ | 1 | | | $ | 305 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
| | $ | 0 | | | $ | 79 | | | $ | 0 | | | $ | 226 | | | $ | 24 | | | $ | 329 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
|
Financial Derivative Instruments - Liabilities | |
Exchange-traded or centrally cleared | |
Futures | | $ | 0 | | | $ | 0 | | | $ | 0 | | | $ | 0 | | | $ | 2 | | | $ | 2 | |
Swap Agreements | | | 0 | | | | 1 | | | | 0 | | | | 0 | | | | 30 | | | | 31 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
| | $ | 0 | | | $ | 1 | | | $ | 0 | | | $ | 0 | | | $ | 32 | | | $ | 33 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Over the counter | |
Forward Foreign Currency Contracts | | $ | 0 | | | $ | 0 | | | $ | 0 | | | $ | 182 | | | $ | 0 | | | $ | 182 | |
Written Options | | | 0 | | | | 0 | | | | 0 | | | | 3 | | | | 1 | | | | 4 | |
Swap Agreements | | | 0 | | | | 3 | | | | 0 | | | | 0 | | | | 2 | | | | 5 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
| | $ | 0 | | | $ | 3 | | | $ | 0 | | | $ | 185 | | | $ | 3 | | | $ | 191 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
| | $ | 0 | | | $ | 4 | | | $ | 0 | | | $ | 185 | | | $ | 35 | | | $ | 224 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
The effect of Financial Derivative Instruments on the Statement of Operations for the period ended December 31, 2020:
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | 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 | | | $ | 0 | | | $ | 0 | | | $ | (1 | ) | | $ | (1 | ) |
Futures | | | 0 | | | | 0 | | | | 0 | | | | 0 | | | | 23 | | | | 23 | |
Swap Agreements | | | 0 | | | | 19 | | | | 0 | | | | 0 | | | | (2,194 | ) | | | (2,175 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | |
| | $ | 0 | | | $ | 19 | | | $ | 0 | | | $ | 0 | | | $ | (2,172 | ) | | $ | (2,153 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | |
Over the counter | |
Forward Foreign Currency Contracts | | $ | 0 | | | $ | 0 | | | $ | 0 | | | $ | (493 | ) | | $ | 0 | | | $ | (493 | ) |
Swap Agreements | | | 0 | | | | 27 | | | | 0 | | | | 0 | | | | 5 | | | | 32 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
| | $ | 0 | | | $ | 27 | | | $ | 0 | | | $ | (493 | ) | | $ | 5 | | | $ | (461 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | |
| | $ | 0 | | | $ | 46 | | | $ | 0 | | | $ | (493 | ) | | $ | (2,167 | ) | | $ | (2,614 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | |
| See Accompanying Notes | | SEMIANNUAL REPORT | | DECEMBER 31, 2020 | | 47 |
Schedule of Investments PIMCO Dividend and Income Fund (Cont.)
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | Derivatives not accounted for as hedging instruments | |
| | | Commodity
Contracts | | | Credit
Contracts | | | Equity
Contracts | | | Foreign
Exchange
Contracts | | | Interest
Rate Contracts | | | Total | |
Net Change in Unrealized Appreciation (Depreciation) on Financial Derivative Instruments | |
Exchange-traded or centrally cleared | |
Purchased Options | | $ | 0 | | | $ | 0 | | | $ | 0 | | | $ | 0 | | | $ | 1 | | | $ | 1 | |
Futures | | | 0 | | | | 0 | | | | (21 | ) | | | 0 | | | | (9 | ) | | | (30 | ) |
Swap Agreements | | | 0 | | | | (31 | ) | | | 0 | | | | 0 | | | | 2,796 | | | | 2,765 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
| | $ | 0 | | | $ | (31 | ) | | $ | (21 | ) | | $ | 0 | | | $ | 2,788 | | | $ | 2,736 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Over the counter | |
Forward Foreign Currency Contracts | | $ | 0 | | | $ | 0 | | | $ | 0 | | | $ | 154 | | | $ | 0 | | | $ | 154 | |
Written Options | | | 0 | | | | 0 | | | | 0 | | | | 0 | | | | 2 | | | | 2 | |
Swap Agreements | | | 0 | | | | 137 | | | | 0 | | | | 0 | | | | (3 | ) | | | 134 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
| | $ | 0 | | | $ | 137 | | | $ | 0 | | | $ | 154 | | | $ | (1 | ) | | $ | 290 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
| | $ | 0 | | | $ | 106 | | | $ | (21 | ) | | $ | 154 | | | $ | 2,787 | | | $ | 3,026 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
FAIR VALUE MEASUREMENTS
The following is a summary of the fair valuations according to the inputs used as of December 31, 2020 in valuing the Fund’s assets and liabilities:
| | | | | | | | | | | | | | | | |
| Category and Subcategory | | Level 1 | | | Level 2 | | | Level 3 | | | Fair
Value at
12/31/2020 | |
Investments in Securities, at Value | |
Asset-Backed Securities | |
Cayman Islands | | $ | 0 | | | $ | 1,072 | | | $ | 0 | | | $ | 1,072 | |
United States | | | 0 | | | | 5,795 | | | | 0 | | | | 5,795 | |
Loan Participations and Assignments | |
Bermuda | | | 0 | | | | 9 | | | | 0 | | | | 9 | |
Canada | | | 0 | | | | 3 | | | | 0 | | | | 3 | |
Luxembourg | | | 0 | | | | 41 | | | | 0 | | | | 41 | |
United Kingdom | | | 0 | | | | 10 | | | | 2 | | | | 12 | |
United States | | | 6 | | | | 824 | | | | 1 | | | | 831 | |
Common Stocks | |
Australia | |
Consumer Discretionary | | | 0 | | | | 473 | | | | 0 | | | | 473 | |
Consumer Staples | | | 0 | | | | 347 | | | | 0 | | | | 347 | |
Energy | | | 0 | | | | 80 | | | | 0 | | | | 80 | |
Financials | | | 0 | | | | 3,299 | | | | 0 | | | | 3,299 | |
Industrials | | | 0 | | | | 176 | | | | 0 | | | | 176 | |
Materials | | | 0 | | | | 8,097 | | | | 0 | | | | 8,097 | |
Utilities | | | 0 | | | | 142 | | | | 0 | | | | 142 | |
Austria | |
Materials | | | 0 | | | | 73 | | | | 0 | | | | 73 | |
Belgium | |
Communication Services | | | 0 | | | | 96 | | | | 0 | | | | 96 | |
Financials | | | 0 | | | | 124 | | | | 0 | | | | 124 | |
Materials | | | 0 | | | | 77 | | | | 0 | | | | 77 | |
Brazil | |
Energy | | | 0 | | | | 0 | | | | 5 | | | | 5 | |
Canada | |
Consumer Discretionary | | | 15 | | | | 0 | | | | 0 | | | | 15 | |
Energy | | | 623 | | | | 0 | | | | 0 | | | | 623 | |
Financials | | | 349 | | | | 0 | | | | 0 | | | | 349 | |
Denmark | |
Financials | | | 0 | | | | 245 | | | | 0 | | | | 245 | |
| | | | | | |
| 48 | | PIMCO EQUITY SERIES | | | | See Accompanying Notes |
(Unaudited)
December 31, 2020
| | | | | | | | | | | | | | | | |
| Category and Subcategory | | Level 1 | | | Level 2 | | | Level 3 | | | Fair
Value at
12/31/2020 | |
Health Care | | $ | 0 | | | $ | 31 | | | $ | 0 | | | $ | 31 | |
Finland | |
Financials | | | 0 | | | | 1,003 | | | | 0 | | | | 1,003 | |
Industrials | | | 0 | | | | 204 | | | | 0 | | | | 204 | |
Materials | | | 0 | | | | 220 | | | | 0 | | | | 220 | |
France | |
Communication Services | | | 0 | | | | 124 | | | | 0 | | | | 124 | |
Consumer Discretionary | | | 0 | | | | 1,235 | | | | 0 | | | | 1,235 | |
Energy | | | 0 | | | | 2,561 | | | | 0 | | | | 2,561 | |
Financials | | | 0 | | | | 562 | | | | 0 | | | | 562 | |
Health Care | | | 0 | | | | 215 | | | | 0 | | | | 215 | |
Industrials | | | 0 | | | | 254 | | | | 0 | | | | 254 | |
Germany | |
Communication Services | | | 0 | | | | 225 | | | | 0 | | | | 225 | |
Consumer Discretionary | | | 0 | | | | 968 | | | | 0 | | | | 968 | |
Consumer Staples | | | 0 | | | | 236 | | | | 0 | | | | 236 | |
Financials | | | 0 | | | | 199 | | | | 0 | | | | 199 | |
Health Care | | | 0 | | | | 71 | | | | 0 | | | | 71 | |
Industrials | | | 0 | | | | 695 | | | | 0 | | | | 695 | |
Materials | | | 0 | | | | 1,659 | | | | 0 | | | | 1,659 | |
Utilities | | | 0 | | | | 110 | | | | 0 | | | | 110 | |
Hong Kong | |
Consumer Discretionary | | | 0 | | | | 52 | | | | 0 | | | | 52 | |
Industrials | | | 0 | | | | 17 | | | | 0 | | | | 17 | |
Information Technology | | | 0 | | | | 57 | | | | 0 | | | | 57 | |
Real Estate | | | 0 | | | | 43 | | | | 0 | | | | 43 | |
Italy | |
Energy | | | 0 | | | | 738 | | | | 0 | | | | 738 | |
Financials | | | 0 | | | | 1,134 | | | | 0 | | | | 1,134 | |
Utilities | | | 0 | | | | 293 | | | | 0 | | | | 293 | |
Japan | |
Communication Services | | | 0 | | | | 1,714 | | | | 0 | | | | 1,714 | |
Consumer Discretionary | | | 0 | | | | 1,724 | | | | 0 | | | | 1,724 | |
Consumer Staples | | | 0 | | | | 1,842 | | | | 0 | | | | 1,842 | |
Energy | | | 0 | | | | 357 | | | | 0 | | | | 357 | |
Financials | | | 0 | | | | 3,576 | | | | 0 | | | | 3,576 | |
Health Care | | | 0 | | | | 262 | | | | 0 | | | | 262 | |
Industrials | | | 0 | | | | 4,522 | | | | 0 | | | | 4,522 | |
Information Technology | | | 0 | | | | 2,696 | | | | 0 | | | | 2,696 | |
Materials | | | 0 | | | | 576 | | | | 0 | | | | 576 | |
Real Estate | | | 0 | | | | 341 | | | | 0 | | | | 341 | |
Utilities | | | 0 | | | | 54 | | | | 0 | | | | 54 | |
Luxembourg | |
Materials | | | 42 | | | | 0 | | | | 0 | | | | 42 | |
Netherlands | |
Communication Services | | | 162 | | | | 57 | | | | 0 | | | | 219 | |
Consumer Staples | | | 0 | | | | 101 | | | | 0 | | | | 101 | |
Energy | | | 0 | | | | 460 | | | | 0 | | | | 460 | |
Financials | | | 0 | | | | 990 | | | | 0 | | | | 990 | |
Industrials | | | 0 | | | | 60 | | | | 0 | | | | 60 | |
New Zealand | |
Utilities | | | 0 | | | | 27 | | | | 0 | | | | 27 | |
Norway | |
Communication Services | | | 0 | | | | 111 | | | | 0 | | | | 111 | |
Energy | | | 0 | | | | 353 | | | | 0 | | | | 353 | |
Materials | | | 0 | | | | 36 | | | | 0 | | | | 36 | |
Portugal | |
Utilities | | | 0 | | | | 68 | | | | 0 | | | | 68 | |
| | | | | | |
| See Accompanying Notes | | SEMIANNUAL REPORT | | DECEMBER 31, 2020 | | 49 |
Schedule of Investments PIMCO Dividend and Income Fund (Cont.)
| | | | | | | | | | | | | | | | |
| Category and Subcategory | | Level 1 | | | Level 2 | | | Level 3 | | | Fair
Value at
12/31/2020 | |
Spain | |
Communication Services | | $ | 0 | | | $ | 1,544 | | | $ | 0 | | | $ | 1,544 | |
Energy | | | 0 | | | | 1,638 | | | | 0 | | | | 1,638 | |
Financials | | | 0 | | | | 1,962 | | | | 0 | | | | 1,962 | |
Industrials | | | 0 | | | | 411 | | | | 0 | | | | 411 | |
Utilities | | | 0 | | | | 904 | | | | 0 | | | | 904 | |
Sweden | |
Communication Services | | | 0 | | | | 14 | | | | 0 | | | | 14 | |
Consumer Discretionary | | | 0 | | | | 81 | | | | 0 | | | | 81 | |
Financials | | | 0 | | | | 752 | | | | 0 | | | | 752 | |
Switzerland | |
Consumer Staples | | | 0 | | | | 158 | | | | 0 | | | | 158 | |
Financials | | | 0 | | | | 1,838 | | | | 0 | | | | 1,838 | |
Health Care | | | 0 | | | | 992 | | | | 0 | | | | 992 | |
Industrials | | | 29 | | | | 664 | | | | 0 | | | | 693 | |
United Kingdom | |
Communication Services | | | 0 | | | | 515 | | | | 0 | | | | 515 | |
Consumer Discretionary | | | 0 | | | | 425 | | | | 0 | | | | 425 | |
Consumer Staples | | | 0 | | | | 2,549 | | | | 0 | | | | 2,549 | |
Energy | | | 0 | | | | 190 | | | | 0 | | | | 190 | |
Financials | | | 0 | | | | 523 | | | | 0 | | | | 523 | |
Industrials | | | 0 | | | | 360 | | | | 0 | | | | 360 | |
Materials | | | 96 | | | | 2,512 | | | | 0 | | | | 2,608 | |
Utilities | | | 0 | | | | 280 | | | | 0 | | | | 280 | |
United States | |
Communication Services | | | 8,161 | | | | 0 | | | | 0 | | | | 8,161 | |
Consumer Discretionary | | | 4,752 | | | | 0 | | | | 0 | | | | 4,752 | |
Consumer Staples | | | 8,592 | | | | 0 | | | | 0 | | | | 8,592 | |
Energy | | | 13,937 | | | | 0 | | | | 0 | | | | 13,937 | |
Financials | | | 3,634 | | | | 0 | | | | 0 | | | | 3,634 | |
Health Care | | | 10,982 | | | | 0 | | | | 0 | | | | 10,982 | |
Industrials | | | 2,053 | | | | 0 | | | | 105 | | | | 2,158 | |
Information Technology | | | 6,352 | | | | 0 | | | | 0 | | | | 6,352 | |
Materials | | | 2,657 | | | | 0 | | | | 0 | | | | 2,657 | |
Utilities | | | 1,465 | | | | 0 | | | | 0 | | | | 1,465 | |
Corporate Bonds & Notes | |
Argentina | |
Industrials | | | 0 | | | | 5 | | | | 0 | | | | 5 | |
Bermuda | |
Industrials | | | 0 | | | | 2 | | | | 0 | | | | 2 | |
Brazil | |
Industrials | | | 0 | | | | 43 | | | | 0 | | | | 43 | |
Utilities | | | 0 | | | | 446 | | | | 0 | | | | 446 | |
Canada | |
Banking & Finance | | | 0 | | | | 32 | | | | 0 | | | | 32 | |
Industrials | | | 0 | | | | 55 | | | | 0 | | | | 55 | |
Cayman Islands | |
Banking & Finance | | | 0 | | | | 1,310 | | | | 0 | | | | 1,310 | |
Industrials | | | 0 | | | | 28 | | | | 0 | | | | 28 | |
Utilities | | | 0 | | | | 37 | | | | 0 | | | | 37 | |
Curacao | |
Industrials | | | 0 | | | | 2 | | | | 0 | | | | 2 | |
France | |
Banking & Finance | | | 0 | | | | 216 | | | | 0 | | | | 216 | |
Industrials | | | 0 | | | | 738 | | | | 0 | | | | 738 | |
Germany | |
Banking & Finance | | | 0 | | | | 769 | | | | 0 | | | | 769 | |
Ireland | |
Banking & Finance | | | 0 | | | | 219 | | | | 0 | | | | 219 | |
Industrials | | | 0 | | | | 562 | | | | 0 | | | | 562 | |
| | | | | | |
| 50 | | PIMCO EQUITY SERIES | | | | See Accompanying Notes |
(Unaudited)
December 31, 2020
| | | | | | | | | | | | | | | | |
| Category and Subcategory | | Level 1 | | | Level 2 | | | Level 3 | | | Fair
Value at
12/31/2020 | |
Italy | |
Banking & Finance | | $ | 0 | | | $ | 439 | | | $ | 0 | | | $ | 439 | |
Jersey, Channel Islands | |
Industrials | | | 0 | | | | 411 | | | | 0 | | | | 411 | |
Luxembourg | |
Banking & Finance | | | 0 | | | | 422 | | | | 0 | | | | 422 | |
Industrials | | | 0 | | | | 529 | | | | 0 | | | | 529 | |
Utilities | | | 0 | | | | 651 | | | | 0 | | | | 651 | |
Mexico | |
Industrials | | | 0 | | | | 351 | | | | 0 | | | | 351 | |
Multinational | |
Industrials | | | 0 | | | | 24 | | | | 0 | | | | 24 | |
Netherlands | |
Banking & Finance | | | 0 | | | | 545 | | | | 0 | | | | 545 | |
Industrials | | | 0 | | | | 46 | | | | 0 | | | | 46 | |
Utilities | | | 0 | | | | 16 | | | | 0 | | | | 16 | |
Panama | |
Industrials | | | 0 | | | | 63 | | | | 0 | | | | 63 | |
Peru | |
Banking & Finance | | | 0 | | | | 30 | | | | 0 | | | | 30 | |
Switzerland | |
Banking & Finance | | | 0 | | | | 221 | | | | 0 | | | | 221 | |
Turkey | |
Banking & Finance | | | 0 | | | | 205 | | | | 0 | | | | 205 | |
United Kingdom | |
Banking & Finance | | | 0 | | | | 2,563 | | | | 0 | | | | 2,563 | |
Industrials | | | 0 | | | | 290 | | | | 0 | | | | 290 | |
United States | |
Banking & Finance | | | 0 | | | | 618 | | | | 0 | | | | 618 | |
Industrials | | | 0 | | | | 2,467 | | | | 5 | | | | 2,472 | |
Utilities | | | 0 | | | | 1,338 | | | | 0 | | | | 1,338 | |
Venezuela | |
Industrials | | | 0 | | | | 14 | | | | 0 | | | | 14 | |
Non-Agency Mortgage-Backed Securities | |
United Kingdom | | | 0 | | | | 1,861 | | | | 0 | | | | 1,861 | |
United States | | | 0 | | | | 4,727 | | | | 0 | | | | 4,727 | |
Municipal Bonds & Notes | |
California | | | 0 | | | | 176 | | | | 0 | | | | 176 | |
Illinois | | | 0 | | | | 88 | | | | 0 | | | | 88 | |
Puerto Rico | | | 0 | | | | 244 | | | | 0 | | | | 244 | |
Virginia | | | 0 | | | | 387 | | | | 0 | | | | 387 | |
Preferred Stocks | |
Germany | |
Industrials | | | 143 | | | | 0 | | | | 0 | | | | 143 | |
United Kingdom | |
Banking & Finance | | | 0 | | | | 274 | | | | 0 | | | | 274 | |
United States | |
Industrials | | | 0 | | | | 157 | | | | 0 | | | | 157 | |
Real Estate Investment Trusts | |
Australia | |
Real Estate | | | 0 | | | | 54 | | | | 0 | | | | 54 | |
Canada | |
Real Estate | | | 68 | | | | 0 | | | | 0 | | | | 68 | |
France | |
Real Estate | | | 755 | | | | 231 | | | | 0 | | | | 986 | |
Hong Kong | |
Real Estate | | | 0 | | | | 38 | | | | 0 | | | | 38 | |
Japan | |
Real Estate | | | 0 | | | | 27 | | | | 0 | | | | 27 | |
| | | | | | |
| See Accompanying Notes | | SEMIANNUAL REPORT | | DECEMBER 31, 2020 | | 51 |
Schedule of Investments PIMCO Dividend and Income Fund (Cont.)
(Unaudited)
December 31, 2020
| | | | | | | | | | | | | | | | |
| Category and Subcategory | | Level 1 | | | Level 2 | | | Level 3 | | | Fair
Value at
12/31/2020 | |
United States | |
Financials | | $ | 1,682 | | | $ | 0 | | | $ | 0 | | | $ | 1,682 | |
Real Estate | | | 2,419 | | | | 0 | | | | 0 | | | | 2,419 | |
Rights | |
Spain | |
Energy | | | 31 | | | | 0 | | | | 0 | | | | 31 | |
Sovereign Issues | |
Argentina | | | 0 | | | | 674 | | | | 0 | | | | 674 | |
China | | | 0 | | | | 484 | | | | 0 | | | | 484 | |
Peru | | | 0 | | | | 528 | | | | 0 | | | | 528 | |
Saudi Arabia | | | 0 | | | | 491 | | | | 0 | | | | 491 | |
South Africa | | | 0 | | | | 278 | | | | 0 | | | | 278 | |
Turkey | | | 0 | | | | 532 | | | | 0 | | | | 532 | |
Venezuela | | | 0 | | | | 5 | | | | 0 | | | | 5 | |
U.S. Government Agencies | |
United States | | | 0 | | | | 18,737 | | | | 0 | | | | 18,737 | |
U.S. Treasury Obligations | |
United States | | | 0 | | | | 5,636 | | | | 0 | | | | 5,636 | |
Warrants | |
United States | |
Communication Services | | | 0 | | | | 0 | | | | 138 | | | | 138 | |
Information Technology | | | 0 | | | | 0 | | | | 1 | | | | 1 | |
Short-Term Instruments | |
Repurchase Agreements | | | 0 | | | | 522 | | | | 0 | | | | 522 | |
Short-Term Notes | | | 0 | | | | 10 | | | | 0 | | | | 10 | |
Argentina Treasury Bills | | | 0 | | | | 30 | | | | 0 | | | | 30 | |
| | | | | | | | | | | | | | | | |
| | $ | 69,005 | | | $ | 124,026 | | | $ | 257 | | | $ | 193,288 | |
|
Investments in Affiliates, at Value | |
Short-Term Instruments | |
Central Funds Used for Cash Management Purposes | | $ | 741 | | | $ | 0 | | | $ | 0 | | | $ | 741 | |
| | | | | | | | | | | | | | | | |
Total Investments | | $ | 69,746 | | | $ | 124,026 | | | $ | 257 | | | $ | 194,029 | |
| | | | | | | | | | | | | | | | |
|
Financial Derivative Instruments - Assets | |
Exchange-traded or centrally cleared | | | 17 | | | | 7 | | | | 0 | | | | 24 | |
Over the counter | | | 0 | | | | 305 | | | | 0 | | | | 305 | |
| | | | | | | | | | | | | | | | |
| | $ | 17 | | | $ | 312 | | | $ | 0 | | | $ | 329 | |
|
Financial Derivative Instruments - Liabilities | |
Exchange-traded or centrally cleared | | | (2 | ) | | | (31 | ) | | | 0 | | | | (33 | ) |
Over the counter | | | 0 | | | | (191 | ) | | | 0 | | | | (191 | ) |
| | | | | | | | | | | | | | | | |
| | $ | (2 | ) | | $ | (222 | ) | | $ | 0 | | | $ | (224 | ) |
| | | | | | | | | | | | | | | | |
Total Financial Derivative Instruments | | $ | 15 | | | $ | 90 | | | $ | 0 | | | $ | 105 | |
| | | | | | | | | | | | | | | | |
Totals | | $ | 69,761 | | | $ | 124,116 | | | $ | 257 | | | $ | 194,134 | |
| | | | | | | | | | | | | | | | |
There were no significant transfers into or out of Level 3 during the period ended December 31, 2020.
| | | | | | |
| 52 | | PIMCO EQUITY SERIES | | | | See Accompanying Notes |
Notes to Financial Statements
(Unaudited)
December 31, 2020
1. ORGANIZATION
PIMCO Equity Series (the “Trust”) was established as a Delaware statutory trust on March 30, 2010. 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, I-2, Class A and Class C shares of the PIMCO Dividend and Income Fund (the “Fund”). Pacific Investment Management Company LLC (“PIMCO”) serves as the investment adviser (the “Adviser”) for the Fund. Research Affiliates, LLC (“Research Affiliates”) serves as the sub-adviser for the equity portion of the Fund. PIMCO and Research Affiliates have also engaged Parametric Portfolio Associates, LLC (“Parametric”) to implement the investment strategies of the equity portion of the 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”). The Fund is treated as an investment company under the reporting requirements of U.S. GAAP. The functional and reporting currency for the Fund is the U.S. dollar. 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 the Fund is informed of the ex-dividend date. Interest income, adjusted for the accretion of discounts and amortization of premiums, is recorded on the accrual basis from settlement date, 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 Statement 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 Statement of Operations. Paydown gains (losses) on mortgage-related and other asset-backed securities, if any, are recorded as components of interest income on the Statement 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.
| | | | | | |
| | SEMIANNUAL REPORT | | DECEMBER 31, 2020 | | 53 |
Notes to Financial Statements (Cont.)
(b) Foreign Currency Translation 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 Fund does 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 Statement of Operations. The Fund 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 Statement 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 Statement of Operations.
(c) Multi-Class 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 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 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 Distributions from net investment income, if any, are declared and distributed to shareholders quarterly. In addition, the Fund distributes any net capital gains it earns from the sale of portfolio securities to shareholders no less frequently than annually. Net short-term capital gains may be paid more frequently.
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 the Fund’s annual financial statements presented under U.S. GAAP.
Separately, if the Fund determines that a portion of a distribution may be comprised of amounts from capital gains, paid in capital, or other capital sources in accordance with its policies, accounting records, and accounting practices, the Fund will notify shareholders of the estimated composition of
(Unaudited)
December 31, 2020
such distribution through a Section 19 Notice. For these purposes, the Fund determines 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 determined 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 the Fund’s daily internal accounting records and practices, the Fund’s financial statements presented in accordance with U.S. GAAP, and recordkeeping practices under income tax regulations. For instance, the 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 periodic payments under interest rate swap contracts. Accordingly, among other consequences, it is possible that the 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 provided to shareholders when such information is available.
Distributions classified as a tax basis return of capital at the Fund’s fiscal year end, if any, are reflected on the Statements of Changes in Net Assets and have been recorded to paid in capital on the Statement of Assets and Liabilities. In addition, other amounts have been reclassified between distributable earnings (accumulated loss) and paid in capital on the Statement of Assets and Liabilities to more appropriately conform U.S. GAAP to tax characterizations of distributions.
(e) New Accounting Pronouncements and Regulatory Updates In March 2020, the Financial Accounting Standards Board issued an Accounting Standards Update (“ASU”), ASU 2020-04, which provides optional guidance to ease the potential accounting burden associated with transitioning away from the London Interbank Offered Rate and other reference rates that are expected to be discontinued. The ASU is effective immediately upon release of the update on March 12, 2020 through December 31, 2022. At this time, management is evaluating implications of these changes on the financial statements.
In October 2020, the U.S. Securities and Exchange Commission (“SEC”) adopted a rule related to the use of derivatives, short sales, reverse repurchase agreements and certain other transactions by registered investment companies that rescinds and withdraws the guidance of the SEC and its staff regarding asset segregation and cover transactions. Subject to certain exceptions, the rule requires funds to trade derivatives and other transactions that create future payment or delivery obligations (except reverse repurchase agreements and similar financing transactions) subject to a value-at-risk leverage limit, certain derivatives risk management program and reporting requirements. The rule went into effect on February 19, 2021 and funds will have an eighteen-month transition period to comply with the rule and related reporting requirements. At this time, management is evaluating the implications of these changes on the financial statements.
| | | | | | |
| | SEMIANNUAL REPORT | | DECEMBER 31, 2020 | | 55 |
Notes to Financial Statements (Cont.)
In October 2020, the SEC adopted a rule regarding the ability of a fund to invest in other funds. The rule allows a fund to acquire shares of another fund in excess of certain limitations currently imposed by the Act without obtaining individual exemptive relief from the SEC, subject to certain conditions. The rule also included the rescission of certain exemptive relief from the SEC and guidance from the SEC staff for funds to invest in other funds. The effective date for the rule was January 19, 2021. At this time, management is evaluating the implications of these changes on the financial statements.
In December 2020, the SEC adopted a rule addressing fair valuation of fund investments. The new rule sets forth requirements for good faith determinations of fair value as well as for the performance of fair value determinations, including related oversight and reporting obligations. The new rule also defines “readily available market quotations” for purposes of the definition of “value” under the Act, and the SEC noted that this definition would apply in all contexts under the Act. The effective date for the rule is March 8, 2021. The SEC adopted an eighteen-month transition period beginning from the effective date for both the new rule and the associated new recordkeeping requirements. At this time, management is evaluating the implications of these changes on the financial statements.
3. INVESTMENT VALUATION AND FAIR VALUE MEASUREMENTS
(a) Investment Valuation Policies The price of the Fund’s shares is based on the Fund’s NAV. The NAV of the 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 the Fund or class, by the total number of shares outstanding of the 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 (normally 4:00 p.m., Eastern time) (“NYSE Close”). Information that becomes known to the Fund or its 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. If regular trading on the NYSE closes earlier than scheduled, the Fund reserves the right to either (i) calculate its NAV as of the earlier closing time or (ii) calculate its NAV as of the normally scheduled close of regular trading on the NYSE for that day. The Fund generally does not calculate its NAV on days during which the NYSE is closed. However, if the NYSE is closed on a day it would normally be open for business, the Fund reserves the right to calculate its NAV as of the normally scheduled close of regular trading on the NYSE for that day or such other time that the Fund may determine.
For purposes of calculating NAV, portfolio securities and other assets for which market quotes are readily available are valued at market value. Market value is generally determined on the basis of official closing prices or the last reported sales prices, or if no sales are reported, based on quotes obtained from established market makers or prices (including evaluated prices) supplied by the Fund’s approved pricing services, quotation reporting systems and other third-party sources (together, “Pricing Services”). The Fund will normally use pricing data for domestic equity securities received shortly after the NYSE Close and does 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
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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. The 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, the Fund may determine the fair value of investments based on information provided by Pricing Services and other third-party vendors, which may recommend fair value or adjustments with reference to other securities, indices or assets. In considering whether fair valuation is required and in determining fair values, the Fund may, among other things, consider significant events (which may be considered to include changes in the value of U.S. securities or securities indices) that occur after the close of the relevant market and before the NYSE Close. The 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 the 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 are 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 are 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
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Notes to Financial Statements (Cont.)
turn, the NAV of the Fund’s shares may be affected by changes in the value of currencies in relation to the U.S. dollar. The value of 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 the 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 Board. The Adviser may consult with the Sub-Adviser or Parametric in providing such recommendations or otherwise with respect to valuation of the 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 the Fund’s securities or assets. In addition, market quotes are considered not readily available when, due to extraordinary circumstances, the exchanges or markets on which the securities trade do not open for trading for the entire day and no other market prices are available. The Board has delegated, to the Adviser, the responsibility for monitoring significant events that may materially affect the values of the Fund’s securities or assets and for determining whether the value of the applicable securities or assets should be reevaluated in light of such significant events.
When the Fund uses fair valuation to determine 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 the Fund’s NAV that fairly reflects security values as of the time of pricing, the Trust cannot ensure that fair values determined by the Board or persons acting at their direction would accurately reflect the price that the Fund could obtain for a security if it were to dispose of that security as of the time of pricing (for instance, in a forced or distressed sale). The prices used by the Fund may differ from the value that would be realized if the securities were sold. The Fund’s use of fair valuation may also help to deter “stale price arbitrage” as discussed under the “Abusive Trading Practices” section in the Fund’s prospectus.
(b) Fair Value Hierarchy U.S. GAAP describes fair value as the price that the 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
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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 into and out of Level 3, if material, are disclosed in the Notes to Schedule of Investments for the 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 the 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 the 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.
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Notes to Financial Statements (Cont.)
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.
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
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pricing models may use inputs that are observed from actively quoted markets such as the overnight index swap rate, London Interbank Offered Rate 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
The 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 Fund. A complete schedule of portfolio holdings for each affiliate fund is filed with the SEC for the first and third quarters of each fiscal year on Form N-PORT and is available at the SEC’s website at www.sec.gov. A copy of each affiliate fund’s shareholder report is also available at the SEC’s website at www.sec.gov, on the Fund’s website at www.pimco.com, or upon request, as applicable. The table below shows the Fund’s transactions in and earnings from investments in the affiliated Funds for the period ended December 31, 2020 (amounts in thousands†):
Investment in PIMCO Short-Term Floating NAV Portfolio III
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Market Value
06/30/2020 | | | Purchases
at Cost | | | Proceeds
from Sales | | | Net
Realized
Gain (Loss) | | | Change in
Unrealized
Appreciation
(Depreciation) | | | Market Value
12/31/2020 | | | Dividend
Income(1) | | | Realized Net
Capital Gain
Distributions(1) | |
| | | | | | | |
| $ | 539 | | | $ | 21,602 | | | $ | (21,401) | | | $ | 1 | | | $ | 0 | | | $ | 741 | | | $ | 2 | | | $ | 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 Fund may utilize the investments and strategies described below to the extent permitted by the Fund’s investment policies.
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Notes to Financial Statements (Cont.)
Inflation-Indexed Bonds are fixed income securities whose principal value is periodically adjusted by the rate of inflation. The interest rate on these bonds is generally fixed at issuance at a rate lower than typical bonds. Over the life of an inflation-indexed bond, however, interest will be paid based on a principal value which is adjusted for inflation. Any increase or decrease in the principal amount of an inflation-indexed bond will be included as interest income on the Statement of Operations, even though investors do not receive their principal until maturity. Repayment of the original bond principal upon maturity (as adjusted for inflation) is guaranteed in the case of U.S. Treasury Inflation-Protected Securities. For bonds that do not provide a similar guarantee, the adjusted principal value of the bond repaid at maturity may be less than the original principal.
Loans and Other Indebtedness, Loan Participations and Assignments are direct debt instruments which are interests in amounts owed to lenders or lending syndicates by corporate, governmental, or other borrowers. The 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. The Fund may invest in multiple series or tranches of a loan, which may have varying terms and carry different associated risks. When the 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 Fund 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 Fund 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 the 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, the 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. The Fund may receive a commitment fee based on the undrawn portion of the underlying line of credit portion of a loan. In certain circumstances, the 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 Statement of Operations. Unfunded loan commitments are reflected as a liability on the Statement of Assets and Liabilities.
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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, but not limited to, auto loans, accounts receivable, such as credit card receivables and hospital account receivables, home equity loans, student loans, boat loans, mobile home loans, recreational vehicle loans, manufactured housing loans, aircraft leases, computer leases and syndicated bank 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 the Fund invests. In addition to the normal risks associated with fixed income securities discussed elsewhere in this report and the 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 interest or other payments, (ii) the quality of the collateral may decline in value or default, (iii) the risk that the 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,
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Notes to Financial Statements (Cont.)
including prepayments. CMOs may be less liquid and may exhibit greater price volatility than other types of mortgage-related or asset-backed securities.
Payment In-Kind Securities may give the issuer the option at each interest payment date of making interest payments in either cash and/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 Statement of Assets and Liabilities.
Perpetual Bonds are fixed income securities with no maturity date but pay a coupon in perpetuity (with no specified ending or maturity date). Unlike typical fixed income securities, there is no obligation for perpetual bonds to repay principal. The coupon payments, however, are mandatory. While perpetual bonds have no maturity date, they may have a callable date in which the perpetuity is eliminated and the issuer may return the principal received on the specified call date. Additionally, a perpetual bond may have additional features, such as interest rate increases at periodic dates or an increase as of a predetermined point in the future.
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 the 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 Fund that invests in REITs will bear its 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 Fund at December 31, 2020, as applicable, are disclosed in the Notes to Schedule of Investments.
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, 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
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agency’s obligations. U.S. Government securities may include zero coupon securities which do not distribute interest on a current basis and tend to be subject to a greater risk than interest-paying securities of similar maturities.
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.
In June 2019, FNMA and FHLMC started issuing Uniform Mortgage Backed Securities in place of their current offerings of TBA-eligible securities (the “Single Security Initiative”). The Single Security Initiative seeks to support the overall liquidity of the TBA market and aligns the characteristics of FNMA and FHLMC certificates. The effects that the Single Security Initiative may have on the market for TBA and other mortgage-backed securities are uncertain.
Roll-timing strategies can be used where the 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 Statement of Assets and Liabilities as an asset or liability, respectively.
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
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Notes to Financial Statements (Cont.)
additional debt securities at the same coupon rate. A decline in interest rates would permit the Fund to sell such warrants at a profit. If interest rates rise, these warrants would generally expire with no value.
5. BORROWINGS AND OTHER FINANCING TRANSACTIONS
The Fund may enter into the borrowings and other financing transactions described below to the extent permitted by the Fund’s investment policies.
The following disclosures contain information on the 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 the Fund. The location of these instruments in the Fund’s financial statements is described below.
(a) Repurchase Agreements Under the terms of a typical repurchase agreement, the Fund purchases an underlying debt obligation (collateral) subject to an obligation of the seller to repurchase, and the 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 at any time. The underlying securities for all repurchase agreements are held by the 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 Statement of Assets and Liabilities. Interest earned is recorded as a component of interest income on the Statement of Operations. In periods of increased demand for collateral, the 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, the 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. The 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 the Fund to counterparties are reflected as a liability on the Statement of Assets and Liabilities. Interest payments made by the Fund to counterparties are recorded as a component of interest expense on the Statement of Operations. In periods of increased demand for the security, the Fund may receive a fee for use of the security by the counterparty, which may result in interest income to the Fund. The 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 the 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. The 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 the Fund are
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reflected as a liability on the Statement of Assets and Liabilities. The 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, the Fund would have otherwise received had the security not been sold and (ii) the negotiated financing terms between the Fund and counterparty. Foregone interest and inflationary income adjustments, if any, are recorded as components of interest income on the Statement of Operations. Interest payments based upon negotiated financing terms made by the Fund to counterparties are recorded as a component of interest expense on the Statement of Operations. In periods of increased demand for the security, the Fund may receive a fee for use of the security by the counterparty, which may result in interest income to the Fund. The Fund will segregate assets determined to be liquid by the Adviser or will otherwise cover its obligations under sale-buyback transactions.
(d) Interfund Lending In accordance with an exemptive order (the “Order”) from the SEC, each Fund of the Trust may participate in a joint lending and borrowing facility for temporary purposes (the “Interfund Lending Program”), subject to compliance with the terms and conditions of the Order, and to the extent permitted by each Fund’s investment policies and restrictions. Each Fund is currently permitted to borrow under the Interfund Lending Program. A lending fund may lend in aggregate up to 15% of its current net assets at the time of the interfund loan, but may not lend more than 5% of its net assets to any one borrowing fund through the Interfund Lending Program. A borrowing fund may not borrow through the Interfund Lending Program or from any other source if its total outstanding borrowings immediately after the borrowing would be more than 33 1/3% of its total assets (or any lower threshold provided for by the fund’s investment restrictions). If a borrowing fund’s total outstanding borrowings exceed 10% of its total assets, each of its outstanding interfund loans will be subject to collateralization of at least 102% of the outstanding principal value of the loan. All interfund loans are for temporary or emergency purposes and the interfund loan rate to be charged will be the average of the highest current overnight repurchase agreement rate available to a lending fund and the bank loan rate, as calculated according to a formula established by the Board.
During the period ended December 31, 2020, the Fund did not participate in the Interfund Lending Program.
6. FINANCIAL DERIVATIVE INSTRUMENTS
The Fund may enter into the financial derivative instruments described below to the extent permitted by the Fund’s investment policies.
The following disclosures contain information on how and why the Fund uses financial derivative instruments, and how financial derivative instruments affect the Fund’s financial position, results of operations and cash flows. The location and fair value amounts of these instruments on the Statement of Assets and Liabilities and the net realized gain (loss) and net change in unrealized appreciation (depreciation) on the Statement of Operations, each categorized by type of financial derivative contract and related risk exposure, are included in a table in the Notes to Schedule 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
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derivative instruments during the period, as disclosed in the Notes to Schedule of Investments, serve as indicators of the volume of financial derivative activity for the Fund.
(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 the 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 the 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 Statement of Assets and Liabilities. In addition, the 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 and are traded on an exchange. The 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 the 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, the 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”). Futures Variation Margins, if any, are disclosed within centrally cleared financial derivative instruments on the Statement of Assets and Liabilities. 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 Statement of Assets and Liabilities.
(c) Options Contracts may be written or purchased to enhance returns or to hedge an existing position or future investment. The 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 the Fund’s exposure to the underlying instrument. Writing call options tends to decrease the Fund’s exposure to the underlying instrument. When the Fund writes a call or put, an amount equal to the premium received is recorded and subsequently marked to market to reflect the current value of the option written. These amounts are included on the Statement 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. The Fund
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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 the Fund may not be able to enter into a closing transaction because of an illiquid market.
Purchasing call options tends to increase the Fund’s exposure to the underlying instrument. Purchasing put options tends to decrease the Fund’s exposure to the underlying instrument. The Fund pays a premium which is included as an asset on the Statement 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.
Interest Rate Swaptions may be written or purchased to enter into a pre-defined swap agreement or to shorten, extend, cancel or otherwise modify an existing swap agreement, by some specified date in the future. The writer of the swaption becomes the counterparty to the swap if the buyer exercises. The interest rate swaption agreement will specify whether the buyer of the swaption will be a fixed-rate receiver or a fixed-rate payer upon exercise.
Options on Exchange-Traded Futures Contracts (“Futures Option”) may be written or purchased to hedge an existing position or future investment, for speculative purposes or to manage exposure to market movements. A Futures Option is an option contract in which the underlying instrument is a single futures contract.
(d) Swap Agreements are bilaterally negotiated agreements between the 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”). The 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 Statement of Operations. Daily changes in valuation of centrally cleared swaps (“Swap Variation Margin”), if any, are disclosed within centrally cleared
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financial derivative instruments on the Statement of Assets and Liabilities. Centrally Cleared and OTC swap payments received or paid at the beginning of the measurement period are included on the Statement 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 Statement 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 Statement of Operations. Net periodic payments received or paid by the Fund are included as part of realized gain (loss) on the Statement of Operations.
For purposes of applying certain of the Fund’s investment policies and restrictions, swap agreements, like other derivative instruments, may be valued by the Fund at market value, notional value or full exposure value. In the case of a credit default swap, in applying certain of the Fund’s investment policies and restrictions, the Fund 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 the Fund’s other investment policies and restrictions. For example, the Fund may value credit default swaps at full exposure value for purposes of the Fund’s credit quality guidelines (if any) because such value in general better reflects the Fund’s actual economic exposure during the term of the credit default swap agreement. As a result, the 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 the Fund’s prospectus. In this context, both the notional amount and the market value may be positive or negative depending on whether the Fund is selling or buying protection through the credit default swap. The manner in which certain securities or other instruments are valued by the 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 Statement 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.
The 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 the Fund and the counterparty and by the posting of collateral to the Fund to cover the Fund’s exposure to the counterparty.
To the extent the 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.
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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 the 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, the 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, the Fund would effectively add leverage to its portfolio because, in addition to its total net assets, the Fund would be subject to investment exposure on the notional amount of the swap.
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, 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 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, 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. The Fund may use credit default swaps on credit indices to hedge a portfolio of credit default swaps or bonds,
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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 Schedule 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 the 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 the Fund is the seller of protection are disclosed in the Notes to Schedule 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 the 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 the Fund’s ability to generate income at prevailing market rates. The value of the fixed rate bonds that the Fund holds may decrease if interest rates rise. To help hedge against this risk and to maintain its ability to generate income at prevailing market rates, the Fund may enter into interest rate swap agreements. Interest rate swap agreements involve the exchange by the Fund with another party for their respective commitment to pay or receive interest on the notional amount of principal. Certain forms of interest rate swap agreements may include: (i) interest rate caps, under which, in return for a premium, one party agrees to make payments to the other to the extent that interest rates exceed a specified rate, or “cap”, (ii) interest rate floors, under which, in return for a premium, one party agrees to make payments to the other to the extent that interest rates fall below a specified rate, or “floor”, (iii) interest rate collars, under which a party sells a cap and purchases a floor or vice versa in an attempt to protect itself against interest rate movements exceeding given minimum or maximum levels, (iv) callable interest rate swaps, under which the buyer pays an upfront fee in consideration for the right to early terminate the swap transaction in whole, at zero cost and at a predetermined date and time prior to the maturity date, (v) spreadlocks, which allow the interest rate swap users to lock in the forward differential (or spread) between the interest rate swap rate and a specified benchmark, or (vi) basis swaps, under which two parties can exchange variable interest rates based on different segments of money markets.
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7. PRINCIPAL AND OTHER RISKS
(a) Principal Risks
The principal risks of investing in the Fund, which could adversely affect its net asset value, yield and total return, are listed below. Please see “Description of Principal Risks” in the Fund’s prospectus for a more detailed description of the risks of investing in the 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 the Fund or the 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. The 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 the 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.
Foreign (Non-U.S.) Investment Risk is the risk that investing in foreign (non-U.S.) securities may result in the Fund experiencing more rapid and extreme changes in value than a fund that invests exclusively in securities of U.S. companies, due to smaller markets, differing reporting, accounting and auditing standards, increased risk of delayed settlement of portfolio transactions or loss of certificates of portfolio securities, and the risk of unfavorable foreign government actions, including nationalization, expropriation or confiscatory taxation, currency blockage, 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 the Fund may go up or down, sometimes rapidly or unpredictably, due to factors affecting securities markets generally or particular industries.
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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 the Fund has invested in, the 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 the 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, or is perceived (whether by market participants, rating agencies, pricing services or otherwise) as 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 the 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 the Fund’s investments in Real Estate Investment Trusts (“REITs”) or real estate-linked derivative instruments will subject the Fund to risks similar to those associated with direct ownership of real estate, including losses from casualty or condemnation, and changes in local and general economic conditions, supply and demand, interest rates, zoning laws, regulatory limitations on rents, property taxes and operating expenses. The Fund’s investments in REITs or real estate-linked derivative instruments subject it to management and tax risks. In addition, privately traded REITs subject the Fund to liquidity and valuation risk.
Liquidity Risk is the risk that a particular investment may be difficult to purchase or sell and that the Fund may be unable to sell illiquid investments at an advantageous time or price or achieve its desired level of exposure to a certain sector.
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Leveraging Risk is the risk that certain transactions of the Fund, such as reverse repurchase agreements, loans of portfolio securities, and the use of when-issued, delayed delivery or forward commitment transactions, or derivative instruments, may give rise to leverage, magnifying gains and losses and causing the Fund to be more volatile than if it had not been leveraged. This means that leverage entails a heightened risk of loss.
Management Risk is the risk that the investment techniques and risk analyses applied by PIMCO and the Sub-Adviser, including the use of quantitative models or methods, will not produce the desired results and that actual or potential conflicts of interest, legislative, regulatory, or tax restrictions, policies or developments may affect the investment techniques available to PIMCO, the Sub-Adviser and the individual portfolio manager in connection with managing the Fund and may cause PIMCO to restrict or prohibit participation in certain investments. There is no guarantee that the investment objective of the Fund will be achieved.
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 and valuation complexity. Changes in the value of a derivative may not correlate perfectly with, and may be more sensitive to market events than, the underlying asset, rate or index, and the Fund could lose more than the initial amount invested. The Fund’s use of derivatives may result in losses to the Fund, a reduction in the 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. The primary credit risk on derivatives that are exchange-traded or traded through a central clearing counterparty resides with the Fund’s clearing broker, or the clearinghouse. Changes in regulation relating to a mutual fund’s use of derivatives and related instruments could potentially limit or impact the Fund’s ability to invest in derivatives, limit the Fund’s ability to employ certain strategies that use derivatives and/or adversely affect the value of derivatives and the Fund’s performance.
Model Risk is the risk that the Fund’s investment models used in making investment allocation decisions may not adequately take into account certain factors or may rely on inaccurate data inputs, may contain design flaws or faulty assumptions, and may rely on incomplete or inaccurate data, any of which may result in a decline in the value of an investment in the 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 the Fund.
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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.
LIBOR Transition Risk is the risk related to the anticipated discontinuation of the London Interbank Offered Rate (“LIBOR”) by the end of 2021. Certain instruments held by the Fund rely in some fashion upon LIBOR. Although the transition process away from LIBOR has become increasingly well-defined in advance of the anticipated discontinuation date, there remains uncertainty regarding the nature of any replacement rate, and any potential effects of the transition away from LIBOR on the Fund or on certain instruments in which the Fund invests can be difficult to ascertain. The transition process may involve, among other things, increased volatility or illiquidity in markets for instruments that currently rely on LIBOR and may result in a reduction in value of certain instruments held by the Fund.
(b) Other Risks
In general, the Fund may be subject to additional risks, including, but not limited to, risks related to government regulation and intervention in financial markets, operational risks, risks associated with financial, economic and global market disruptions, and cybersecurity risks. Please see the Fund’s prospectus and Statement of Additional Information for a more detailed description of the risks of investing in the Fund. Please see the Important Information section of this report for additional discussion of certain regulatory and market developments (such as the anticipated discontinuation of the London Interbank Offered Rate) that may impact the Fund’s performance.
Market Disruption Risk The Fund is subject to investment and operational risks associated with financial, economic and other global market developments and disruptions, including those arising from war, terrorism, market manipulation, government interventions, defaults and shutdowns, political changes or diplomatic developments, public health emergencies (such as the spread of infectious diseases, pandemics and epidemics) and natural/environmental disasters, which can all negatively impact the securities markets, interest rates, auctions, secondary trading, ratings, credit risk, inflation, deflation and other factors relating to the Fund’s investments or the Investment Manager’s operations and cause the Fund to lose value. These events can also impair the technology and other operational systems upon which the Fund’s service providers, including PIMCO as the Fund’s investment adviser, rely, and could otherwise disrupt the Fund’s service providers’ ability to fulfill their obligations to the Fund. For example, the recent spread of an infectious respiratory illness caused by a novel strain of coronavirus (known as COVID-19) has caused volatility, severe market dislocations and liquidity constraints in many markets, including markets for the securities the Fund holds, and may adversely affect the Fund’s investments and operations. Please see the Important Information section for additional discussion of the COVID-19 pandemic.
Government Intervention in Financial Markets Federal, state, and other governments, their regulatory agencies, or self-regulatory organizations may take actions that affect the regulation of the instruments in which the Fund invests, or the issuers of such instruments, in ways that are unforeseeable. Legislation or regulation may also change the way in which the Fund itself is regulated. Such legislation or regulation could limit or preclude the Fund’s ability to achieve its investment objective. Furthermore, volatile financial markets can expose the Fund to greater market and liquidity risk and potential difficulty in valuing portfolio instruments held by the Fund. The value
(Unaudited)
December 31, 2020
of the Fund’s holdings is also generally subject to the risk of future local, national, or global economic disturbances based on unknown weaknesses in the markets in which the Fund invests. In addition, it is not certain that the U.S. Government will intervene in response to a future market disturbance and the effect of any such future intervention cannot be predicted. It is difficult for issuers to prepare for the impact of future financial downturns, although companies can seek to identify and manage future uncertainties through risk management programs.
Regulatory Risk Financial entities, such as investment companies and investment advisers, are generally subject to extensive government regulation and intervention. Government regulation and/or intervention may change the way the Fund is regulated, affect the expenses incurred directly by the Fund and the value of its investments, and limit and/or preclude the Fund’s ability to achieve its investment objective. Government regulation may change frequently and may have significant adverse consequences. Moreover, government regulation may have unpredictable and unintended effects.
Operational Risk An investment in the Fund, like any fund, can involve operational risks arising from factors such as processing errors, human errors, inadequate or failed internal or external processes, failures in systems and technology, changes in personnel and errors caused by third-party service providers. The occurrence of any of these failures, errors or breaches could result in a loss of information, regulatory scrutiny, reputational damage or other events, any of which could have a material adverse effect on the Fund. While the Fund seeks to minimize such events through controls and oversight, there may still be failures that could cause losses to the Fund.
Cyber Security Risk As the use of technology has become more prevalent in the course of business, the Fund has become potentially more susceptible to operational and information security risks resulting from breaches in cyber security. A breach in cyber security refers to both intentional and unintentional cyber events that may, among other things, cause the Fund to lose proprietary information, suffer data corruption and/or destruction or lose operational capacity, result in the unauthorized release or other misuse of confidential information, or otherwise disrupt normal business operations. Cyber security failures or breaches may result in financial losses to the Fund and its shareholders. These failures or breaches may also result in disruptions to business operations, potentially resulting in financial losses; interference with the Fund’s ability to calculate its net asset value, process shareholder transactions or otherwise transact business with shareholders; impediments to trading; violations of applicable privacy and other laws; regulatory fines; penalties; reputational damage; reimbursement or other compensation costs; additional compliance and cyber security risk management costs and other adverse consequences. In addition, substantial costs may be incurred in order to prevent any cyber incidents in the future.
8. MASTER NETTING ARRANGEMENTS
The Fund may be subject to various netting arrangements (“Master Agreements”) with select counterparties. Master Agreements govern the terms of certain transactions, and are intended to reduce the counterparty risk associated with relevant transactions by specifying credit protection mechanisms and providing standardization that is intended to improve 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
| | | | | | |
| | SEMIANNUAL REPORT | | DECEMBER 31, 2020 | | 77 |
Notes to Financial Statements (Cont.)
multiple agreements with a single counterparty. As the Master Agreements are specific to unique operations of different asset types, they allow the 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 Statement of Assets and Liabilities generally presents 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 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 Statement 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 Statement 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. The 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 certain sale-buyback transactions between the Fund and select counterparties. Master Repo Agreements maintain provisions for, among other things, initiation, income payments, events of default, and maintenance of collateral. The market value of transactions under the Master Repo Agreement, collateral pledged or received, and the net exposure by counterparty as of period end are disclosed in the Notes to Schedule of Investments.
Master Securities Forward Transaction Agreements (“Master Forward Agreements”) govern certain forward settling transactions, such as TBA securities, delayed-delivery or certain sale-buyback transactions by and between the 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 Schedule 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. 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 Fund. Variation margin, or changes in market value, are generally exchanged daily, but may not be netted between futures and cleared OTC derivatives unless the parties have agreed to a separate arrangement in
(Unaudited)
December 31, 2020
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 Schedule of Investments.
Prime Broker Arrangements may be entered into to facilitate execution and/or clearing of listed equity option transactions or short sales of equity securities between the Portfolio and selected counterparties. The arrangements provide guidelines surrounding the rights, obligations, and other events, including, but not limited to, margin, execution, and settlement. These agreements maintain provisions for, among other things, payments, maintenance of collateral, events of default, and termination. Margin and other assets delivered as collateral are typically in the possession of the prime broker and would offset any obligations due to the prime broker. The market values of listed options and securities sold short and related collateral are disclosed in the Notes to Schedule of Investments.
International Swaps and Derivatives Association, Inc. Master Agreements and Credit Support Annexes (“ISDA Master Agreements”) govern bilateral OTC derivative transactions entered into by the 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. 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 or as required by regulation. Similarly, if required by regulation, the Fund may be required to post additional collateral beyond coverage of daily exposure. These amounts, if any, may (or if required by law, will) be segregated with a third-party custodian. To the extent the Fund is required by regulation to post additional collateral beyond coverage of daily exposure, it could potentially incur costs, including in procuring eligible assets to meet collateral requirements, associate with such posting. The market value of OTC financial derivative instruments, collateral received or pledged, and net exposure by counterparty as of period end are disclosed in the Notes to Schedule of Investments.
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 the 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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| | SEMIANNUAL REPORT | | DECEMBER 31, 2020 | | 79 |
Notes to Financial Statements (Cont.)
The Investment Advisory Fee 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 the Fund’s average daily net assets attributable to each class):
| | | | | | | | | | | | |
| Investment Advisory Fee | | | | Supervisory and Administrative Fee |
| | | | | | |
| All Classes | | | | Institutional Class | | I-2 | | I-3 | | Class A | | Class C |
| | | | | | |
| 0.45%(1) | | | | 0.30% | | 0.40% | | 0.50%*(2) | | 0.40% | | 0.40% |
| * | This particular share class has been registered with the SEC, but has not yet launched. |
| (1) | Effective October 1, 2020, the Fund’s investment advisory fee was reduced by 0.04%. |
| (2) | PIMCO has contractually agreed, through October 31, 2021, to waive its supervisory and administrative fee for I-3 shares by 0.05% of the average daily net assets attributable to I-3 shares 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 the Fund’s average daily net assets attributable to each class):
| | | | | | | | | | | | |
| | | | | | Distribution Fee | | | Servicing Fee | |
| | | |
Class A | | | | | | | — | | | | 0.25% | |
| | | |
Class C | | | | | | | 0.75% | | | | 0.25% | |
The Distributor also received the proceeds of the initial sales charges paid by the shareholders upon the purchase of Class A shares and the contingent deferred sales charges paid by the shareholders upon certain redemptions of Class A and Class C shares. For the period ended December 31, 2020, the Distributor retained $3,282 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 Fund, 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 expenses; (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.
(Unaudited)
December 31, 2020
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 Fund’s Supervisory and Administrative Fee, or reimburse the Fund, to the extent that the Fund’s organizational expenses, pro rata share of expenses related to obtaining or maintaining a Legal Entity Identifier 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.
In any month in which the investment advisory contract or supervision and administration agreement is in effect, PIMCO is entitled to reimbursement by the Fund of any portion of the supervisory and administrative fee waived or reimbursed as set forth above (the “Reimbursement Amount”) during the previous thirty-six months from the date of waiver, provided that such amount paid to PIMCO will not: i) together with any organizational expenses, pro rata share of expenses related to obtaining or maintaining a Legal Entity Identifier and pro rata Trustee fees, exceed, for such month, the Expense Limit (or the amount of the expense limit in place at the time the amount being recouped was originally waived if lower than the Expense Limit); ii) exceed the total Reimbursement Amount; or iii) include any amounts previously reimbursed to PIMCO. The total recoverable amounts to PIMCO at December 31, 2020, were as follows (amounts in thousands†):
| | | | | | | | | | | | | | |
| Expiring within | | | | |
| | | |
| 12 months | | | 13-24 months | | | 25-36 months | | | Total | |
| | | |
| $ | 30 | | | $ | 19 | | | $ | 14 | | | $ | 63 | |
| † | A zero balance may reflect actual amounts rounding to less than one thousand. |
Pursuant to a Fee Waiver Agreement, PIMCO has contractually agreed, through October 31, 2021, to waive its supervisory and administrative fee for I-3 shares by 0.05% of the average daily net assets attributable to I-3 shares of the Fund. This 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.
The Waiver is reflected on the Statement of Operations as a component of Waiver and/or Reimbursement by PIMCO. For the period ended December 31, 2020, the amount was $7,426.
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 Statement of Assets and Liabilities.
The Fund is 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 Fund from or to another fund or
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| | SEMIANNUAL REPORT | | DECEMBER 31, 2020 | | 81 |
Notes to Financial Statements (Cont.)
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. Purchases and sales of securities pursuant to Rule 17a-7 under the Act for the period ended December 31, 2020, were as follows (amounts in thousands†):
| | | | | | |
| Purchases | | | Sales | |
| |
| $ | 0 | | | $ | 1,322 | |
| † | 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 Fund. Additionally, in the normal course of business, the Fund enters into contracts that contain a variety of indemnification clauses. The Fund’s maximum exposure under these arrangements is unknown as this would involve future claims that may be made against the Fund that have not yet occurred. However, the Fund has not had prior claims or losses pursuant to these contracts.
12. PURCHASES AND SALES OF SECURITIES
The length of time the Fund has held a particular security is not generally a consideration in investment decisions. A change in the securities held by the Fund is known as “portfolio turnover.” The 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, including brokerage commissions or dealer mark-ups and other transaction costs on the sale of securities and reinvestments in other securities, which are borne by the Fund. 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 when distributed to shareholders). The transaction costs associated with portfolio turnover may adversely affect the 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, 2020, were as follows (amounts in thousands†):
| | | | | | | | | | | | | | |
| U.S. Government/Agency | | | All Other | |
| | | |
| Purchases | | | Sales | | | Purchases | | | Sales | |
| | | |
| $ | 155,516 | | | $ | 150,758 | | | $ | 49,797 | | | $ | 78,042 | |
| † | A zero balance may reflect actual amounts rounding to less than one thousand. |
(Unaudited)
December 31, 2020
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†):
| | | | | | | | | | | | | | | | | | | | |
| | | | | | Six Months Ended
12/31/2020
(Unaudited) | | | Year Ended
06/30/2020 | |
| | | | | |
| | | | | | Shares | | | Amount | | | Shares | | | Amount | |
| | | | | |
Receipts for shares sold | | | | | | | | | | | | | | | | | | | | |
| | | | | |
Institutional Class | | | | | | | 309 | | | $ | 3,229 | | | | 739 | | | $ | 7,801 | |
| | | | | |
I-2 | | | | | | | 115 | | | | 1,180 | | | | 810 | | | | 8,649 | |
| | | | | |
Class A | | | | | | | 1,455 | | | | 14,618 | | | | 1,980 | | | | 20,694 | |
| | | | | |
Class C | | | | | | | 65 | | | | 677 | | | | 344 | | | | 3,679 | |
| | | | | |
Issued as reinvestment of distributions | | | | | | | | | | | | | | | | | | | | |
| | | | | |
Institutional Class | | | | | | | 41 | | | | 451 | | | | 50 | | | | 567 | |
| | | | | |
I-2 | | | | | | | 34 | | | | 371 | | | | 48 | | | | 543 | |
| | | | | |
Class A | | | | | | | 190 | | | | 2,066 | | | | 236 | | | | 2,684 | |
| | | | | |
Class C | | | | | | | 62 | | | | 678 | | | | 103 | | | | 1,195 | |
| | | | | |
Cost of shares redeemed | | | | | | | | | | | | | | | | | | | | |
| | | | | |
Institutional Class | | | | | | | (408 | ) | | | (4,202 | ) | | | (931 | ) | | | (9,477 | ) |
| | | | | |
I-2 | | | | | | | (466 | ) | | | (4,751 | ) | | | (1,145 | ) | | | (11,909 | ) |
| | | | | |
Class A | | | | | | | (1,822 | ) | | | (18,659 | ) | | | (3,176 | ) | | | (33,056 | ) |
| | | | | |
Class C | | | | | | | (1,871 | ) | | | (18,815 | ) | | | (2,993 | ) | | | (31,731 | ) |
| | | | | |
Net increase (decrease) resulting from Fund share transactions | | | | | | | (2,296 | ) | | $ | (23,157 | ) | | | (3,935 | ) | | $ | (40,361 | ) |
| † | A zero balance may reflect actual amounts rounding to less than one thousand. |
14. REGULATORY AND LITIGATION MATTERS
The Fund is not named as a defendant in any material litigation or arbitration proceedings and is not aware of any material litigation or claim pending or threatened against it.
The foregoing speaks only as of the date of this report.
15. FEDERAL INCOME TAX MATTERS
The Fund intends to qualify as a regulated investment company under Subchapter M of the Internal Revenue Code (the “Code”) and distribute all of its taxable income and net realized gains, if applicable, to shareholders. Accordingly, no provision for Federal income taxes has been made.
The 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 Fund’s tax positions for all open tax years. As of December 31, 2020, the Fund has recorded no liability for net unrecognized tax benefits relating to uncertain income tax positions it has taken or expects to take in future tax returns.
| | | | | | |
| | SEMIANNUAL REPORT | | DECEMBER 31, 2020 | | 83 |
Notes to Financial Statements (Cont.)
(Unaudited)
December 31, 2020
The Fund files U.S. federal, state, and local tax returns as required. The Fund’s 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, 2020, the Fund had the following post-effective capital losses with no expiration (amounts in thousands†):
| | | | | | |
| Short-Term | | | Long-Term | |
| |
| $ | 70,411 | | | $ | 34,789 | |
| † | A zero balance may reflect actual amounts rounding to less than one thousand. |
As of December 31, 2020, 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) | |
| | | |
| $ | 177,386 | | | $ | 19,510 | | | $ | (3,969) | | | $ | 15,541 | |
| † | 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. |
Glossary: (abbreviations that may be used in the preceding statements)
(Unaudited)
| | | | | | |
| | |
| Counterparty Abbreviations: | | | | |
| AZD | | Australia and New Zealand Banking Group | | GST | | Goldman Sachs International |
| BOA | | Bank of America N.A. | | HUS | | HSBC Bank USA N.A. |
| BPG | | BNP Paribas Securities Corp. | | IND | | Crédit Agricole Corporate and Investment Bank S.A. |
| BPS | | BNP Paribas S.A. | | JPM | | JP Morgan Chase Bank N.A. |
| BRC | | Barclays Bank PLC | | MYC | | Morgan Stanley Capital Services LLC |
| CBK | | Citibank N.A. | | MYI | | Morgan Stanley & Co. International PLC |
| DEU | | Deutsche Bank Securities, Inc. | | RYL | | NatWest Markets Plc |
| DUB | | Deutsche Bank AG | | SCX | | Standard Chartered Bank, London |
| FBF | | Credit Suisse International | | SSB | | State Street Bank and Trust Co. |
| FICC | | Fixed Income Clearing Corporation | | TDM | | TD Securities (USA) LLC |
| FOB | | Credit Suisse Securities (USA) LLC | | UAG | | UBS AG Stamford |
| GLM | | Goldman Sachs Bank USA | | | | |
| | |
| Currency Abbreviations: | | | | |
| ARS | | Argentine Peso | | JPY | | Japanese Yen |
| AUD | | Australian Dollar | | MXN | | Mexican Peso |
| BRL | | Brazilian Real | | NOK | | Norwegian Krone |
| CHF | | Swiss Franc | | NZD | | New Zealand Dollar |
| CLP | | Chilean Peso | | PEN | | Peruvian New Sol |
| CNH | | Chinese Renminbi (Offshore) | | RUB | | Russian Ruble |
| CNY | | Chinese Renminbi (Mainland) | | SEK | | Swedish Krona |
| EUR | | Euro | | TRY | | Turkish New Lira |
| GBP | | British Pound | | USD (or $) | | United States Dollar |
| IDR | | Indonesian Rupiah | | ZAR | | South African Rand |
| INR | | Indian Rupee | | | | |
| | |
| Exchange Abbreviations: | | | | |
| OTC | | Over the Counter | | | | |
| | |
| Index/Spread Abbreviations: | | | | |
| BADLARPP | | Argentina Badlar Floating Rate Notes | | CMBX | | Commercial Mortgage-Backed Index |
| BP0003M | | 3 Month GBP-LIBOR | | CNREPOFIX | | China Fixing Repo Rates 7-Day |
| CDX.EM | | Credit Derivatives Index - Emerging Markets | | SONIO | | Sterling Overnight Interbank Average Rate |
| CDX.HY | | Credit Derivatives Index - High Yield | | US0003M | | 3 Month USD Swap Rate |
| CDX.IG | | Credit Derivatives Index - Investment Grade | | | | |
| | |
| Other Abbreviations: | | | | |
| ABS | | Asset-Backed Security | | LIBOR | | London Interbank Offered Rate |
| ADR | | American Depositary Receipt | | Lunar | | Monthly payment based on 28-day periods. One year consists of 13 periods. |
| BABs | | Build America Bonds | | OIS | | Overnight Index Swap |
| BBR | | Bank Bill Rate | | PIK | | Payment-in-Kind |
| BBSW | | Bank Bill Swap Reference Rate | | REIT | | Real Estate Investment Trust |
| BTP | | Buoni del Tesoro Poliennali “Long-term Treasury Bond” | | SP - ADR | | Sponsored American Depositary Receipt |
| CDI | | Brazil Interbank Deposit Rate | | TBA | | To-Be-Announced |
| CLO | | Collateralized Loan Obligation | | TBD | | To-Be-Determined |
| EURIBOR | | Euro Interbank Offered Rate | | TBD% | | Interest rate to be determined when loan settles or at the time of funding |
| JIBAR | | Johannesburg Interbank Agreed Rate | | TIIE | | Tasa de Interés Interbancaria de Equilibrio “Equilibrium Interbank Interest Rate” |
| | | | | | |
| | SEMIANNUAL REPORT | | DECEMBER 31, 2020 | | 85 |
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 18-19, 2020, 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 PIMCO Dividend and Income Fund , PIMCO RAE Emerging Markets Fund, PIMCO RAE Global ex-US Fund, PIMCO RAE Global Fund, PIMCO RAE International Fund, PIMCO RAE US Fund, PIMCO RAE US Small Fund, PIMCO REALPATH® Blend Income 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 2060 Fund (each, a “Fund,” and collectively, the “Funds”), and Pacific Investment Management Company LLC (“PIMCO”) for an additional one-year term through August 31, 2021.1 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, 2021. 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 Emerging Markets Fund, PIMCO RAE Global ex-US Fund, PIMCO RAE Global Fund, PIMCO RAE International Fund, PIMCO RAE US Fund, PIMCO RAE 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, 2021.
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 for the Trust. At each of its quarterly meetings, the Board reviewed the Funds’ investment performance and
| 1 | The Board, including a majority of the Independent Trustees, determined to rely on the relief granted by a temporary exemptive order issued by the U.S. Securities and Exchange Commission (the “SEC”) under the Investment Company Act of 1940 that permits fund boards of trustees to approve advisory contracts at a meeting held by remote communications that allows participating trustees to hear one another simultaneously, rather than in-person, in light of the impact of the novel coronavirus (“COVID-19”) pandemic and restrictions on travel and in-person gatherings. The Board determined that reliance on the exemptive order was necessary and appropriate due to circumstances related to current or potential effects of the COVID-19 pandemic and government-mandated restrictions, and prior to commencing the approval meeting, the Board confirmed that all Board members could hear each other simultaneously during the meeting. The Board noted that it would ratify any actions taken at this meeting pursuant to the SEC relief at its next in-person meeting. |
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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, financial information for 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, a memorandum 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. (“Broadridge”), an independent provider of investment company performance information and fee and expense data. The Board received presentations from PIMCO and, where applicable, Research Affiliates and Parametric, 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 18-19, 2020 meeting. The Independent Trustees also met telephonically with counsel to the Trust and the Independent Trustees, including telephonic meetings on July 10, 2020 and July 30, 2020, and conducted a telephonic meeting on July 30, 2020 with management and counsel to the Trust and the Independent Trustees, to discuss the materials presented and other matters deemed relevant to their consideration of the renewal of the Agreements, the Sub-Advisory Agreement and the Portfolio Implementation Agreement. In connection with its review of the Agreements and the Sub-Advisory Agreement, the Board received comparative information on the performance, the risk-adjusted performance and the fees and expenses of other peer group funds and share classes. The Independent Trustees also requested and received supplemental information, including information regarding Fund performance and profitability.
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 weight 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
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Approval of Investment Advisory Contract and Other Agreements (Cont.)
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 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, but not limited to: 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 enhancing and investing in its global infrastructure, technology capabilities, risk management processes and the specialized talent needed to stay at the forefront of the competitive investment management industry and to strengthen its ability to deliver services under the Agreements. The Board considered PIMCO’s policies, procedures and systems reasonably designed to assure compliance with applicable laws and regulations, including new regulations impacting the Funds, 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.
In addition, the Trustees considered new services and service enhancements that PIMCO has implemented, including, but not limited to: investing in its cybersecurity program and business continuity functions, including the build-out of a new data center; funding projects and initiatives in support of the Funds; improving PIMCO governance and oversight of key fund administration processes; expanding and engaging a technology consultant to improve certain performance reconciliation processes; enhancing PIMCO’s oversight over certain of the Funds’ service providers; continuing to develop initiatives related to pricing, including, among other items, development of pricing tools and capabilities and continued extensive due diligence regarding pricing vendors; forming a new internal group responsible for the operational aspects of the Liquidity Risk Management Programs; developing compliance and operations processes in connection with regulatory developments; continuing to invest in PIMCO’s technology infrastructure; continuing oversight by the Americas Fund Oversight Committee, which provides senior-level oversight and supervision focused on new and ongoing fund-related business opportunities; expanding engagement with a third party service provider to provide certain additional fund administration services subject to PIMCO’s oversight; investing in the Fund Treasurer’s Office; enhancing a proprietary application to support new trading strategies and increase data precision and administration control; developing a global tax management application that will enable investment
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professionals to access foreign market and security tax information on a real-time basis; utilizing a service provider’s proprietary software and managed service model to timely meet N-PORT and N-CEN regulatory requirements; upgrading a proprietary application to allow shareholder subscription and redemption data to pass to portfolio managers more quickly and efficiently; implementing a contingent NAV process; continuing to advocate in the public policy arena; developing a proprietary tool to monitor and facilitate potential interfund lending; utilizing a third-party software technology to allow portfolio management teams to run pre-trade calculations regarding new exchange-traded and cleared derivatives; and developing technology solutions to leverage artificial intelligence and machine learning.
Similarly, the Board considered the sub-advisory services provided by Research Affiliates to the RAE Funds. 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 reviewed materials regarding 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 reviewed materials regarding the nature, extent 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.
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, but not limited to, audit, custodial, portfolio accounting, ordinary 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
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Approval of Investment Advisory Contract and Other Agreements (Cont.)
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, 2020 and other performance data, as available, over short- and long-term periods ended June 30, 2020 (the “PIMCO Report”) and from Broadridge concerning the Funds’ performance, as available, over short- and long-term periods ended March 31, 2020 (the “Broadridge 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 Broadridge Report, which were provided in advance of the August 18-19, 2020 meeting.
The Trustees noted the Funds (based on Institutional Class performance) that outperformed their respective benchmark indexes on a net-of-fees basis over the one-, three- and five-year periods ended June 30, 2020. The Board noted the amounts of the assets of the Trust and PIMCO Funds (based on Institutional Class performance) that outperformed their relevant benchmark net-of-fees over the one-, three- and five-year periods ended June 30, 2020. The Board discussed these and other performance-related developments.
The Board reviewed materials indicating that, according to the Broadridge Report, certain Funds had underperformed in comparison to their respective peer groups or benchmark indexes, or both, over short- and long-term periods. PIMCO reported to the Board on the reasons for the underperformance of certain Funds and actions that have been taken by PIMCO throughout the year to attempt to address underperformance.
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 new funds to scale at the outset. The Board noted that PIMCO generally seeks to price new funds competitively against the median total expense ratio of the respective Broadridge peer group, if available, while acknowledging that a fee premium may be appropriate 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, and the competitive
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marketplace for financial products. 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 the Broadridge Report 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 following: the proposed four basis point reduction in the advisory fee for the PIMCO Dividend and Income Fund; the proposed five basis point reduction in the advisory fee for the PIMCO RAE Global Fund; the proposed 20 basis point reduction in the supervisory and administrative fee for each class of the PIMCO RAE Emerging Markets Fund and PIMCO RAE Global ex-US Fund; the proposed 15 basis point reduction for each class of the PIMCO RAE Global Fund; and the proposed 10 basis point reduction for each class of the PIMCO RAE International Fund, PIMCO RAE US Fund and PIMCO RAE US Small Fund.
The Board also reviewed data comparing certain Funds’ advisory fees to the fee rates PIMCO charges to separate accounts, private funds and sub-advised clients with similar investment strategies. In cases where the fees for other clients were lower than those charged to the Funds, the Trustees noted that the differences in fees were attributable to various factors, including, but not limited to, differences in the advisory and other services provided by PIMCO to the Funds, differences in the number or extent of the services provided by PIMCO to the Funds, the manner in which similar portfolios may be managed, different requirements with respect to liquidity management and the implementation of other regulatory requirements, and the fact that separate accounts may have other contractual arrangements or arrangements across PIMCO strategies that justify different levels of fees. The Trustees also considered that PIMCO faces increased entrepreneurial, legal and regulatory risk in sponsoring and managing mutual funds and ETFs as compared to separate accounts, external sub-advised funds or other investment products. In addition, the Trustees considered that PIMCO may charge certain private funds with similar investment mandates lower fees than the Funds because such private funds are not required to accept daily redemptions or price their assets on a daily basis, generally do not accept small investors with small account balances and operate under a less complex regulatory regime.
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, legal and regulatory risk and different servicing requirements when
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Approval of Investment Advisory Contract and Other Agreements (Cont.)
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.
The Board considered the Funds’ supervisory and administrative fees, comparing them to similar funds managed by other investment advisers in the Broadridge Report. 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, ordinary 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 inherently reflects certain 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 Funds to scale at inception and reinvesting in other important areas of the business that support the Funds. 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 in most cases the Funds’ total expense ratios were lower than the total expense ratios 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 the Broadridge Report, 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 expense limitation agreement in place for all of the Funds and the various fee waiver agreements in place for the Funds of Funds.
Based on the information presented by PIMCO, Research Affiliates and Broadridge, 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, that the fees charged by Research Affiliates under the Sub-Advisory Agreement, and that the total expenses of each Fund and the RAE Funds after the proposals to decrease their fees, as applicable, are reasonable.
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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, as well as the resulting level of profits attributable to the Funds. The Board also 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 investment in global infrastructure, technology capabilities, risk management processes and qualified personnel to reinforce and offer new services and to accommodate changing regulatory requirements.
The Board considered the existence of any economies of scale and noted that, to the extent that PIMCO achieves economies of scale in managing the Funds, PIMCO shares the benefits of economies of scale, if any, 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, governance and oversight of those services, and through fee reductions or waivers, the pricing of Funds to scale from inception and the enhancement of services provided to the Funds in return for fees paid. In considering the advisory fees paid by the Funds, the Board also reviewed materials indicating 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 fees over the annual contract period even if the particular Fund’s assets decline and/or operating costs rise. The Trustees also reviewed materials indicating 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.
The Board concluded that the Funds’ cost structures were reasonable and that PIMCO is appropriately sharing economies of scale, if any, through the Funds’ unified fee structure, generally pricing Funds to scale at inception and reinvesting in its business to provide enhanced and expanded services to the Funds and their 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
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Approval of Investment Advisory Contract and Other Agreements (Cont.)
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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/or shareholder services to the Funds and their shareholders, for which they may be compensated through distribution and servicing fees paid pursuant to the Funds’ Rule 12b-1 plans or otherwise, such as through all or portions of the sales charges on Class A or Class C shares of the Funds, as applicable. The Board noted 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.
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 Avenue
Kansas City, MO 64105
Transfer Agent
DST Asset Manager Solutions, Inc.
Institutional Class, I-2, Administrative Class
430 W 7th Street STE 219024
Kansas City, MO 64105-1407
DST Asset Manager Solutions, Inc.
Class A, Class C, Class R
430 W 7th Street STE 219294
Kansas City, MO 64105-1407
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 Fund listed on the Report cover.
PES4001SAR_123120
PIMCO EQUITY SERIES®
Semiannual Report
December 31, 2020
PIMCO RAE Emerging Markets Fund
PIMCO RAE Global Fund
PIMCO RAE Global ex-US Fund
PIMCO RAE International Fund
PIMCO RAE US Fund
PIMCO RAE US Small Fund
As permitted by regulations adopted by the Securities and Exchange Commission, paper copies of the Fund’s annual and semi-annual shareholder reports will no longer be sent by mail, unless you specifically request paper copies of the reports from the Fund or from your financial intermediary, such as a broker-dealer or bank. Instead, the reports will be made available on the Fund’s website, pimco.com/literature, and you will be notified by mail each time a report is posted and provided with a website link to access the report.
If you already elected to receive shareholder reports electronically, you will not be affected by this change and you need not take any action. You may elect to receive shareholder reports and other communications from the Fund electronically by visiting pimco.com/edelivery or by contacting your financial intermediary, such as a broker-dealer or bank.
You may elect to receive all future reports in paper free of charge. If you own these shares through a financial intermediary, such as a broker-dealer or bank, you may contact your financial intermediary to request that you continue to receive paper copies of your shareholder reports. If you invest directly with the Fund, you can inform the Fund that you wish to continue receiving paper copies of your shareholder reports by calling 888.87.PIMCO (888.877.4626). Your election to receive reports in paper will apply to all funds held with the fund complex if you invest directly with the Fund or to all funds held in your account if you invest through a financial intermediary, such as a broker-dealer or bank.
Table of Contents
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.
Dear Shareholder,
We hope that you and your family are remaining safe and healthy during these challenging times. We continue to work tirelessly to navigate markets and manage the assets that you have entrusted with us. Following this letter is the PIMCO Equity Series Semiannual Report, which covers the six-month reporting period ended December 31, 2020. On the subsequent pages, you will find specific details regarding investment results and a discussion of the factors that most affected performance during the reporting period.
For the six-month reporting period ended December 31, 2020
The global economy was severely impacted by the repercussions related to the COVID-19 pandemic.
Looking back before the reporting period began, second-quarter 2020 U.S. annualized gross domestic product (“GDP”) was -31.4%. This represented the steepest quarterly decline on record. With the economy reopening, third-quarter GDP growth was 33.4%, the largest quarterly increase on record. The Commerce Department’s initial estimate for fourth-quarter annualized GDP growth — released after the reporting period ended — was 4.0%.
The Federal Reserve (the “Fed”) took unprecedented actions to support the economy and keep markets functioning properly. In early March 2020, before the reporting period began, the Fed lowered the federal funds rate to a range between 1.00% and 1.25%. Later in the month, the Fed lowered the rate to a range between 0.00% and 0.25%. On March 23, the Fed announced that it would make unlimited purchases of Treasury and mortgage securities and, for the first time, it would purchase corporate bonds on the open market. In August 2020, Fed Chair Jerome Powell said the central bank had changed how it viewed the trade-off between lower unemployment and higher inflation. Per Powell’s statement, the Fed’s new approach to setting U.S. monetary policy will entail letting inflation run higher, which could mean that interest rates remain low for an extended period. Meanwhile, in March 2020, the U.S. government passed a total of roughly $2.8 trillion in fiscal stimulus measures to aid the economy. A subsequent $900 billion stimulus package was finalized in December 2020.
Economies outside the U.S. were significantly impacted by the pandemic too. In its October 2020 World Economic Outlook Update, the International Monetary Fund (“IMF”) stated that it expects 2020 GDP in the eurozone, U.K. and Japan will be -8.3%, -9.8% and -5.3%, respectively. For comparison purposes, the GDP of these economies expanded 1.3%, 1.5% and 0.7%, respectively, in 2019.
Against this backdrop, central banks and governments around the world took a number of aggressive actions. Looking back, in March 2020, the European Central Bank (the “ECB”) unveiled a new €750 billion bond-buying program, which was subsequently expanded by another €600 billion in June 2020. In July, the European Union agreed on a €1.8 trillion spending package to bolster its economy. In December 2020, the ECB expanded its monetary stimulus program by another €500 billion.
The Bank of England reduced its key lending rate to 0.10% — a record low — in March, added £100 billion to its quantitative easing program in June, and increased its bond-buying program by £150 billion to £895 billion in November. Finally, toward the end of the year, the U.K. and the European Union agreed to a long-awaited Brexit deal. Elsewhere, the Bank of Japan maintained its short-term interest rate at -0.10%, while increasing the target for its holdings of corporate bonds to ¥4.2 trillion from ¥3.2 trillion. In May 2020, the Japanese government doubled its stimulus measures with a ¥117 trillion package. Finally, in December 2020, the Bank of Japan announced a new ¥73.6 trillion stimulus package.
Short-term U.S. Treasury yields edged modestly lower, whereas long-term yields moved higher, albeit from a very low level during the reporting period. The yield on the benchmark 10-year U.S. Treasury note was 0.93% at the end of the reporting period, versus 0.66% on June 30, 2020. The Bloomberg Barclays Global Treasury Index (USD Hedged), which tracks fixed-rate, local currency government debt of investment grade countries, including both developed and emerging markets, returned 0.78%. Meanwhile, the Bloomberg Barclays Global Aggregate Credit Index (USD Hedged), a widely used index of global investment grade credit bonds, returned 4.20%. Riskier fixed income asset classes, including high yield corporate bonds and emerging market debt, also rallied. The ICE BofAML Developed Markets High Yield Constrained Index (USD Hedged), a widely used index of below-investment-grade bonds, returned 10.82%, whereas emerging market external debt, as represented by the JPMorgan Emerging Markets Bond Index (EMBI) Global (USD Hedged), returned 7.89%. Emerging market local bonds, as represented by the JPMorgan Government Bond Index-Emerging Markets Global Diversified Index (Unhedged), returned 10.29%.
Despite the headwinds from the pandemic, global equities produced strong results. All told, U.S. equities, as represented by the S&P 500 Index, returned 22.16%, partially fueled by a sharp rally in November and December 2020, because, in our view, investor sentiment improved after positive COVID-19 vaccine news. Global equities, as represented by the MSCI World Index, returned 23.00%, whereas emerging market equities, as measured by the MSCI Emerging Markets Index, returned 31.14%. Meanwhile, Japanese equities, as represented by the Nikkei 225 Index (in JPY), returned 24.12% and European equities, as represented by the MSCI Europe Index (in EUR), returned 10.91%.
Commodity prices were volatile and produced mixed results. When the reporting period began, Brent crude oil was approximately $41 a barrel. Brent crude oil ended the reporting period at roughly $52 a barrel. We believe that oil prices rallied because producers reduced their output and investors anticipated stronger demand as global growth improved and several new COVID-19 vaccines were introduced. Elsewhere, copper prices moved higher, while gold declined.
Finally, there were also periods of volatility in the foreign exchange markets, in our view due to fluctuating economic growth, trade conflicts and changing central bank monetary policies, along with the U.S. election and several geopolitical events. The U.S. dollar weakened against a number of other major currencies. For example, the U.S. dollar returned -8.74%, -10.23% and -4.53% versus the euro, the British pound and the Japanese yen, respectively.
Thank you for the assets you have placed with us. We deeply value your trust, and we will continue to work diligently to meet your broad investment needs. For 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 global viewpoints.
| | |
 | | Sincerely, 
Peter G. Strelow Chairman of the Board
PIMCO Equity Series |
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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| | | | SEMIANNUAL REPORT | | | | | | | DECEMBER 31, 2020 | | | 3 |
| | | | |
| Important Information About the Funds | | | | |
PIMCO Equity Series (the “Trust”) is an open-end management investment company that includes PIMCO RAE Emerging Markets Fund, PIMCO RAE Global Fund, PIMCO RAE Global ex-US Fund, PIMCO RAE International Fund, PIMCO RAE US Fund and PIMCO RAE 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 Global Fund and PIMCO RAE 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 Global Fund invests substantially all of its assets in Institutional Class shares of the PIMCO RAE US Fund, PIMCO RAE International Fund (“International Fund”) and PIMCO RAE 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 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 Global Fund and PIMCO RAE 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 and Other Risks in the Notes to Financial Statements.
Classifications of the Funds’ portfolio holdings in this report are made according to financial reporting standards. The classification of a particular portfolio holding as shown in the Allocation Breakdown and Schedule of Investments sections of this report may differ from the classification used for the Funds’ compliance calculations, including those used in the Funds’ prospectus, investment objectives, regulatory, and other investment limitations and policies, which may be based on different asset class, sector or geographical classifications. Each Fund is separately monitored for compliance with respect to prospectus and regulatory requirements.
The geographical classification of foreign (non-U.S.) securities in this report, if any, 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.
Beginning in January 2020, global financial markets have experienced and may continue to experience significant volatility resulting from the spread of a novel coronavirus known as COVID-19. The outbreak of COVID-19 has resulted in travel and border restrictions, quarantines, supply chain disruptions, lower consumer demand and general market uncertainty. The effects of COVID-19 have and may continue to adversely affect the global economy, the economies of certain nations and individual issuers, all of which may negatively impact the Funds’ performance. In addition, COVID-19 and governmental responses to COVID-19 may negatively impact the capabilities of the Funds’ service providers and disrupt the Funds’ operations.
The United States’ enforcement of restrictions on U.S. investments in certain issuers and tariffs on goods from other countries, each with a focus on China, has contributed to international trade tensions and may impact portfolio securities (and/or portfolio securities of Underlying Funds or Acquired Funds, as applicable).
The United Kingdom’s withdrawal from the European Union may impact Fund returns. The withdrawal may cause substantial volatility in foreign exchange markets, lead to weakness in the exchange rate of the British pound, result in a sustained period of market uncertainty, and destabilize some or all of the other European Union member countries and/or the Eurozone.
A Fund may invest in certain instruments that rely in some fashion upon the London Interbank Offered Rate (“LIBOR”). LIBOR is an average interest rate, determined by the ICE Benchmark Administration, that banks charge one another for the use of short-term money. The United Kingdom’s Financial Conduct Authority, which regulates LIBOR, has announced plans to ultimately phase out the use of LIBOR. There remains uncertainty regarding future utilization of LIBOR and the nature of any replacement rate (e.g., the Secured Overnight Financing Rate, which is intended to replace U.S. dollar LIBOR and measures the cost of overnight borrowings through repurchase agreement transactions collateralized with U.S. Treasury securities). Any potential effects of the transition away from LIBOR on a Fund or on certain instruments in which a Fund invests can be difficult to ascertain, and they may vary depending on a variety of factors. The transition may also result in a reduction in the value of certain instruments held by a Fund or a reduction in the effectiveness of related Fund transactions such as hedges. Any such effects of the transition away from LIBOR, as well as other unforeseen effects, could result in losses to a Fund
A Fund may invest in securities and instruments that are economically tied to Russia. Investments in Russia are subject to various risks such as political, economic, legal, market and currency risks. The risks include uncertain political and economic policies, short-term market volatility, poor accounting standards, corruption and crime, an inadequate regulatory system, and unpredictable taxation. Investments in Russia are particularly subject to the risk that economic sanctions may be imposed by the United States and/or other countries. Such sanctions — which may impact companies in many sectors, including energy, financial services and defense, among others — may negatively impact the Portfolios’ performance and/or ability to achieve their investment objectives. The Russian securities market, as compared to U.S. markets, has significant price volatility, less liquidity, a smaller market capitalization and a smaller number of traded securities.
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, I-2 and I-3 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. Historical performance for a Fund or share class may have been positively impacted by fee waivers or expense limitations in place during some or all of the periods shown, if applicable. Future performance (including total return or yield) and distributions may be negatively impacted by the expiration or reduction of any such fee waivers or expense limitations.
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 | | | I-2 | | | I-3 | | | Class A | | | Diversification
Status | |
PIMCO RAE Emerging Markets Fund | | | | | | | 06/05/15 | | | | 06/05/15 | | | | 06/05/15 | | | | — | | | | 06/05/15 | | | | Diversified | |
PIMCO RAE Global Fund | | | | | | | 06/05/15 | | | | 06/05/15 | | | | 06/05/15 | | | | — | | | | 06/05/15 | | | | Diversified | |
PIMCO RAE Global ex-US Fund | | | | | | | 06/05/15 | | | | 06/05/15 | | | | 06/05/15 | | | | — | | | | 06/05/15 | | | | Diversified | |
PIMCO RAE International Fund | | | | | | | 06/05/15 | | | | 06/05/15 | | | | 06/05/15 | | | | — | | | | 06/05/15 | | | | Diversified | |
PIMCO RAE US Fund | | | | | | | 06/05/15 | | | | 06/05/15 | | | | 06/05/15 | | | | — | | | | 06/05/15 | | | | Diversified | |
PIMCO RAE US Small Fund | | | | | | | 06/05/15 | | | | 06/05/15 | | | | 06/05/15 | | | | — | | | | 06/05/15 | | | | Diversified | |
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| | | | SEMIANNUAL REPORT | | | | | | | DECEMBER 31, 2020 | | | 5 |
| | | | |
| Important Information About the Funds | | (Cont.) | | |
An investment in a Fund is not a bank deposit and is not guaranteed or insured by the Federal Deposit Insurance Corporation 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 Funds file portfolio holdings information with the SEC on Form N-PORT within 60 days of the end of each fiscal quarter. The
Funds’ complete schedule of securities holdings as of the end of each fiscal quarter will be made available to the public on the SEC’s website at www.sec.gov and on PIMCO’s website at www.pimco.com, and will be made available, upon request, by calling PIMCO at (888) 87-PIMCO.
The SEC adopted a rule that allows the Funds to fulfill their obligation to deliver shareholder reports to investors by providing access to such reports online free of charge and by mailing a notice that the report is electronically available. Pursuant to the rule, investors may elect to receive all future reports in paper free of charge by contacting their financial intermediary or, if invested directly with the Fund, investors can inform the Fund by calling 888.877.4626. Any election to receive reports in paper will apply to all funds held with the fund complex if invested directly with the Fund or to all funds held in the investor’s account if invested through a financial intermediary.
In August 2020, the SEC proposed changes to the mutual fund and ETF shareholder report and registration statement disclosure requirements and the registered fund advertising rules, which, if adopted, will change the disclosures provided to shareholders.
In October 2020, the SEC adopted a rule related to the use of derivatives, short sales, reverse repurchase agreements and certain other transactions by registered investment companies that rescinds and withdraws the guidance of the SEC and its staff regarding asset segregation and cover transactions. Subject to certain exceptions, and after an eighteen-month transition period, the rule requires funds to trade derivatives and other transactions that create future payment or delivery obligations (except reverse repurchase agreements and similar financing transactions) subject to a value-at-risk leverage limit, certain derivatives risk management program and reporting requirements. These requirements may limit the ability of the Funds to use derivatives and reverse repurchase agreements and similar financing transactions as part of their investment strategies and may increase the cost of the Funds’ investments and cost of doing business, which could adversely affect investors.
In October 2020, the SEC adopted a rule regarding the ability of a fund to invest in other funds. The rule allows a fund to acquire shares of another fund in excess of certain limitations currently imposed by the Investment Company Act of 1940 (the “Act”) without obtaining individual exemptive relief from the SEC, subject to certain conditions. The rule also included the rescission of certain exemptive relief from the SEC and guidance from the SEC staff for funds to invest in other funds. The impact that these changes may have on the Funds is uncertain.
In December 2020, the SEC adopted a rule addressing fair valuation of fund investments. The new rule sets forth requirements for good faith determinations of fair value as well as for the performance of fair value determinations, including related oversight and reporting obligations.
The new rule also defines “readily available market quotations” for purposes of the definition of “value” under the Act, and the SEC noted that this definition will apply in all contexts under the Act. The SEC adopted an eighteen-month transition period beginning from the effective date for both the new rule and the associated new recordkeeping requirements. The impact of the new rule on the Funds is uncertain at this time.
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| | | | SEMIANNUAL REPORT | | | | | | | DECEMBER 31, 2020 | | | 7 |
PIMCO RAE Emerging Markets Fund
Cumulative Returns Through December 31, 2020
$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 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 Emerging Markets Portfolio”) through investment in the securities that comprise the RAE Emerging Markets Portfolio. The stocks are selected by the Fund’s sub-adviser, Research Affiliates, 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, 2020* | |
| | | | | | |
| | | | | 6 Months* | | 1 Year | | | 5 Years | | | 10 Years | | | Fund Inception
(05/31/06) | |
 | | PIMCO RAE Emerging Markets Fund Institutional Class | | 29.73% | | | 0.87% | | | | 11.41% | | | | 1.80% | | | | 5.86% | |
| | PIMCO RAE Emerging Markets Fund I-2 | | 29.59% | | | 0.81% | | | | 11.28% | | | | 1.73% | | | | 5.81% | |
| | PIMCO RAE Emerging Markets Fund Class A | | 29.44% | | | 0.54% | | | | 11.06% | | | | 1.62% | | | | 5.74% | |
| | PIMCO RAE Emerging Markets Fund Class A (adjusted) | | 24.62% | | | (3.23)% | | | | 10.22% | | | | 1.23% | | | | 5.47% | |
 | | MSCI Emerging Markets Value Index± | | 28.70% | | | 5.48% | | | | 9.18% | | | | 0.90% | | | | 4.83% | |
 | | MSCI Emerging Markets Index±± ª | | 31.14% | | | 18.31% | | | | 12.81% | | | | 3.63% | | | | 6.26% | |
All Fund returns are net of fees and expenses and include applicable fee waivers and/or expense limitations. Absent any applicable fee waivers and/or expense limitations, performance would have been lower and there can be no assurance that any such waivers or limitations will continue in the future.
* Cumulative return.
ª Prior to 2/28/2019, the fund’s primary benchmark was the MSCI Emerging Markets Index.
± The MSCI Emerging Markets Value Index captures large and mid-cap securities exhibiting overall value style characteristics across a group of emerging markets countries. The value investment style characteristics for index construction of the MSCI Emerging Markets Value Index are defined using three variables: book value to price, 12-month forward earnings to price and dividend yield.
±± 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. 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 0.77% for Institutional Class shares, 0.87% for I-2 shares and 1.12% for 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.
| | | | |
| Institutional Class - PEIFX | | I-2 - PEPFX | | Class A - PEAFX |
Geographic Breakdown as of December 31, 2020†§
| | | | | | | | |
South Korea | | | | | | | 18.7% | |
China | | | | | | | 14.9% | |
India | | | | | | | 14.7% | |
Taiwan | | | | | | | 14.2% | |
Brazil | | | | | | | 7.1% | |
Russia | | | | | | | 6.5% | |
Mexico | | | | | | | 4.1% | |
South Africa | | | | | | | 3.7% | |
Thailand | | | | | | | 2.9% | |
Short-Term Instruments | | | | | | | 2.9% | |
Turkey | | | | | | | 2.7% | |
Hong Kong | | | | | | | 2.3% | |
Malaysia | | | | | | | 1.2% | |
Other | | | | | | | 4.1% | |
† % of Investments, at value.
§ Geographic Breakdown and % of Investments exclude securities sold short and financial derivative
instruments, if any.
Fund Insights
The following affected performance (on a gross basis) during the reporting period:
| » | | Overweight exposure to, and security selection in, the materials, consumer discretionary and information technology sectors contributed to relative returns, as the sectors and the Fund’s holdings outperformed the benchmark index. |
| » | | Underweight exposure to the health care sector contributed to relative returns, as the sector underperformed the benchmark index. |
| » | | Security selection in the financials and energy sectors detracted from relative returns, as the Fund’s holdings underperformed the benchmark index. |
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| | | | SEMIANNUAL REPORT | | | | | | | DECEMBER 31, 2020 | | | 9 |
PIMCO RAE Global Fund
Cumulative Returns Through December 31, 2020
$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 Global Fund seeks long-term capital appreciation by investing under normal circumstances substantially all of its assets in (i) Institutional Class shares of the PIMCO RAE US Fund (“US Fund”), the PIMCO RAE International Fund (“International Fund”), and the PIMCO RAE Emerging Markets Fund (“Emerging Markets Fund”) (together, the US Fund, the International Fund and the Emerging Markets Fund are referred to as the “Underlying Funds”) and (ii) equity securities that are eligible investments for the Underlying Funds. Under normal circumstances, each of the Underlying Funds obtains exposure to a portfolio of stocks (each, a “RAE Portfolio”) through investment in the securities that comprise the RAE Portfolio. The stocks are selected by the Fund’s sub-adviser, Research Affiliates, 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, 2020 | |
| | | | | |
| | | | | 6 Months* | | | 1 Year | | | 5 Years | | | Fund Inception
(06/05/15) | |
| | PIMCO RAE Global Fund Institutional Class | | | 25.51% | | | | 2.84% | | | | 8.76% | | | | 5.87% | |
| | PIMCO RAE Global Fund I-2 | | | 25.43% | | | | 2.80% | | | | 8.64% | | | | 5.76% | |
| | PIMCO RAE Global Fund Class A | | | 25.30% | | | | 2.52% | | | | 8.37% | | | | 5.51% | |
| | PIMCO RAE Global Fund Class A (adjusted) | | | 20.54% | | | | (1.34)% | | | | 7.54% | | | | 4.79% | |
| | MSCI All Country World Value Index± | | | 21.25% | | | | (0.33)% | | | | 7.38% | | | | 5.00% | |
| | MSCI All Country World Index±± ª | | | 24.01% | | | | 16.25% | | | | 12.26% | | | | 9.68% | |
All Fund returns are net of fees and expenses and include applicable fee waivers and/or expense limitations. Absent any applicable fee waivers and/or expense limitations, performance would have been lower and there can be no assurance that any such waivers or limitations will continue in the future.
* Cumulative return.
ª Prior to 2/28/2019, the fund’s primary benchmark was the MSCI All Country World Index.
± The MSCI All Country World Value Index captures large and mid-cap securities exhibiting overall value style characteristics across a group of developed and emerging markets countries. The value investment style characteristics for index construction of the MSCI All Country World Value Index are defined using three variables: book value to price, 12-month forward earnings to price and dividend yield.
±± 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 a group of country indices comprising developed and 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. 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 1.02% for Institutional Class shares, 1.12% for I-2 shares and 1.37% for 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.
| | | | |
| Institutional Class - PFQIX | | I-2 - PFQPX | | Class A - PFQAX |
Top Holdings as of December 31, 2020†§
| | | | | | | | |
PIMCO RAE US Fund | | | | | | | 43.5% | |
PIMCO RAE International Fund | | | | | | | 42.4% | |
PIMCO RAE Emerging Markets Fund | | | | | | | 14.1% | |
† % 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 (on a gross basis) during the reporting period:
| » | | Overweight exposure to, and security selection in, the consumer discretionary, information technology and materials sectors contributed to relative returns, as the sectors and the Fund’s holdings outperformed the benchmark index. |
| » | | Underweight exposure to, and security selection in, the energy 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 industrials sector contributed to relative returns, as the Fund’s holdings outperformed the benchmark index. |
| » | | Underweight exposure to, and security selection in, the financials sector detracted from relative returns, as the sector outperformed the benchmark index and the Fund’s holdings underperformed the benchmark index. |
| | | | | | | | | | | | |
| | | | SEMIANNUAL REPORT | | | | | | | DECEMBER 31, 2020 | | | 11 |
PIMCO RAE Global ex-US Fund
Cumulative Returns Through December 31, 2020
$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 Global ex-US Fund seeks long-term capital appreciation by investing, under normal circumstances substantially all of its assets in (i) Institutional Class shares of the PIMCO RAE International Fund (“International Fund”) and the PIMCO RAE Emerging Markets Fund (“Emerging Markets Fund”) (together, the International Fund and the Emerging Markets Fund are referred to as the “Underlying Funds”) and (ii) securities that are eligible investments for the Underlying Funds. Under normal circumstances, each of the Underlying Funds obtains exposure to a portfolio of stocks (each, a “RAE Portfolio”) through investment in the securities that comprise the RAE Portfolio. The stocks are selected by the Fund’s sub-adviser, Research Affiliates, 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, 2020 | |
| | | | | |
| | | | | 6 Months* | | | 1 Year | | | 5 Years | | | Fund Inception
(06/05/15) | |
| | PIMCO RAE Global ex-US Fund Institutional Class | | | 26.42% | | | | 1.73% | | | | 7.39% | | | | 3.72% | |
| | PIMCO RAE Global ex-US Fund I-2 | | | 26.53% | | | | 1.87% | | | | 7.32% | | | | 3.64% | |
| | PIMCO RAE Global ex-US Fund Class A | | | 26.19% | | | | 1.40% | | | | 7.02% | | | | 3.37% | |
| | PIMCO RAE Global ex-US Fund Class A (adjusted) | | | 21.39% | | | | (2.38)% | | | | 6.21% | | | | 2.66% | |
| | MSCI All Country World ex US Value Index± | | | 23.16% | | | | (0.77)% | | | | 5.70% | | | | 2.39% | |
| | MSCI All Country World ex US Index±± ª | | | 24.33% | | | | 10.65% | | | | 8.93% | | | | 5.87% | |
All Fund returns are net of fees and expenses and include applicable fee waivers and/or expense limitations. Absent any applicable fee waivers and/or expense limitations, performance would have been lower and there can be no assurance that any such waivers or limitations will continue in the future.
* Cumulative return.
ª Prior to 2/28/2019, the fund’s primary benchmark was the MSCI All Country World ex US Index.
± The MSCI All Country World ex US Value Index captures large and mid-cap securities exhibiting overall value style characteristics across a group of developed and emerging markets countries. The value investment style characteristics for index construction of the MSCI All Country World ex US Value Index are defined using three variables: book value to price, 12-month forward earnings to price and dividend yield.
±± 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 a group of country indices comprising developed and 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. 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 1.15% for Institutional Class shares, 1.25% for I-2 shares and 1.50% for 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.
| | | | |
| Institutional Class - PZRIX | | I-2 - PZRPX | | Class A - PZRAX |
Top Holdings as of December 31, 2020†§
| | | | | | | | |
PIMCO RAE International Fund | | | | | | | 75.0% | |
PIMCO RAE Emerging Markets Fund | | | | | | | 24.8% | |
† % 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 (on a gross basis) during the reporting period:
| » | | Overweight exposure to, and security selection in, the materials and consumer discretionary sectors contributed to relative returns, as the sectors and the Fund’s holdings outperformed the benchmark index. |
| » | | Security selection in the industrials sector contributed to relative returns, as the Fund’s holdings outperformed the benchmark index. |
| » | | Underweight exposure to, and security selection in, the energy sector contributed to relative returns, as the sector underperformed the benchmark index and the Fund’s holdings outperformed the benchmark index. |
| » | | Overweight exposure to the information technology sector contributed to relative returns, as the sector outperformed the benchmark index. |
| » | | Security selection in the financials sector detracted from relative returns, as the Fund’s holdings underperformed the benchmark index. |
| | | | | | | | | | | | |
| | | | SEMIANNUAL REPORT | | | | | | | DECEMBER 31, 2020 | | | 13 |
PIMCO RAE International Fund
Cumulative Returns Through December 31, 2020
$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 International Fund seeks long-term capital appreciation under normal circumstances by obtaining exposure to a portfolio of stocks economically tied to at least three foreign (non-U.S.) countries (“RAE International Portfolio”) through investment in the securities that comprise the RAE International Portfolio. The stocks are selected by the Fund’s sub-adviser, Research Affiliates, 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, 2020 | |
| | | | | |
| | | | | 6 Months* | | | 1 Year | | | 5 Years | | | Fund Inception
(06/05/15) | |
| | PIMCO RAE International Fund Institutional Class | | | 25.49% | | | | 2.29% | | | | 6.37% | | | | 3.47% | |
| | PIMCO RAE International Fund I-2 | | | 25.30% | | | | 2.03% | | | | 6.25% | | | | 3.37% | |
| | PIMCO RAE International Fund Class A | | | 25.15% | | | | 1.77% | | | | 5.98% | | | | 3.10% | |
| | PIMCO RAE International Fund Class A (adjusted) | | | 20.49% | | | | (2.01)% | | | | 5.17% | | | | 2.39% | |
| | MSCI EAFE Value Index± | | | 20.62% | | | | (2.63)% | | | | 4.20% | | | | 1.67% | |
| | MSCI EAFE Index±± ª | | | 21.61% | | | | 7.82% | | | | 7.45% | | | | 5.26% | |
All Fund returns are net of fees and expenses and include applicable fee waivers and/or expense limitations. Absent any applicable fee waivers and/or expense limitations, performance would have been lower and there can be no assurance that any such waivers or limitations will continue in the future.
* Cumulative return.
ª Prior to 2/28/2019, the fund’s primary benchmark was the MSCI EAFE Index.
± The MSCI EAFE Value Index captures large and mid-cap securities exhibiting overall value style characteristics across developed markets countries around the world, excluding the US and Canada. The value investment style characteristics for index construction of the MSCI EAFE Value Index are defined using three variables: book value to price, 12-month forward earnings to price and dividend yield.
±± MSCI EAFE Index is an unmanaged index designed to represent the performance of large and mid-cap securities across a group of 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. 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 0.52% for Institutional Class shares, 0.62% for I-2 shares and 0.87% for 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.
| | | | |
| Institutional Class - PPYIX | | I-2 - PPYPX | | Class A - PPYAX |
Geographic Breakdown as of December 31, 2020†§
| | | | | | | | |
Japan | | | | | | | 26.0% | |
Germany | | | | | | | 11.2% | |
United Kingdom | | | | | | | 10.4% | |
France | | | | | | | 7.7% | |
Switzerland | | | | | | | 6.8% | |
Australia | | | | | | | 6.3% | |
Canada | | | | | | | 4.8% | |
Short-Term Instruments | | | | | | | 4.2% | |
Netherlands | | | | | | | 3.7% | |
Luxembourg | | | | | | | 3.3% | |
Italy | | | | | | | 2.8% | |
Spain | | | | | | | 2.3% | |
Hong Kong | | | | | | | 2.1% | |
Israel | | | | | | | 1.3% | |
Norway | | | | | | | 1.2% | |
Other | | | | | | | 5.9% | |
† % of Investments, at value.
§ Geographic Breakdown and % of Investments exclude securities sold short, financial derivative instruments if any.
Fund Insights
The following affected performance (on a gross basis) during the reporting period:
| » | | Overweight exposure to, and security selection in, the materials, consumer discretionary and information technology sectors contributed to relative returns, as the sectors and the Fund’s holdings outperformed the benchmark index. |
| » | | Security selection in the industrials sector contributed to relative returns, as the Fund’s holdings outperformed the benchmark index. |
| » | | Underweight exposure to, and security selection in, the energy and health care sectors contributed to relative returns, as the sectors underperformed the benchmark index and the Fund’s holdings outperformed the benchmark index. |
| » | | Underweight exposure to, and security selection in, the financials sector detracted from relative returns, as the sector outperformed the benchmark index and the Fund’s holdings underperformed the benchmark index. |
| | | | | | | | | | | | |
| | | | SEMIANNUAL REPORT | | | | | | | DECEMBER 31, 2020 | | | 15 |
PIMCO RAE US Fund
Cumulative Returns Through December 31, 2020
$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 US Fund seeks long-term capital appreciation by investing under normal circumstances, at least 80% of its assets in securities of companies economically tied to the United States (“U.S. companies”). Specifically, under normal circumstances, the Fund will obtain exposure to a portfolio of stocks of U.S. companies (“RAE US Portfolio”) through investment in the securities that comprise the RAE US Portfolio. The stocks are selected by the Fund’s sub-adviser, Research Affiliates, 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, 2020* | |
| | | | | | |
| | | | | 6 Months* | | | 1 Year | | | 5 Years | | | 10 Years | | | Fund Inception
(12/22/04) | |
| | PIMCO RAE US Fund Institutional Class | | | 23.93% | | | | 3.93% | | | | 10.17% | | | | 11.04% | | | | 8.19% | |
| | PIMCO RAE US Fund I-2 | | | 23.90% | | | | 3.91% | | | | 10.08% | | | | 10.99% | | | | 8.16% | |
| | PIMCO RAE US Fund Class A | | | 23.72% | | | | 3.55% | | | | 9.72% | | | | 10.79% | | | | 8.05% | |
| | PIMCO RAE US Fund Class A (adjusted) | | | 19.10% | | | | (0.30)% | | | | 8.89% | | | | 10.37% | | | | 7.79% | |
| | Russell 1000® Value Index± | | | 22.75% | | | | 2.80% | | | | 9.74% | | | | 10.50% | | | | 7.31%¨ | |
| | S&P 500 Index±± ª | | | 22.16% | | | | 18.40% | | | | 15.22% | | | | 13.88% | | | | 9.56% ¨ | |
All Fund returns are net of fees and expenses and include applicable fee waivers and/or expense limitations. Absent any applicable fee waivers and/or expense limitations, performance would have been lower and there can be no assurance that any such waivers or limitations will continue in the future.
* Cumulative return.
¨ Average annual total return since 12/31/2004.
ª Prior to 2/28/2019, the fund’s primary benchmark was the S&P 500 Index.
± The Russell 1000® Value Index measures the performance of large and midcapitalization value sectors of the U.S. equity market, as defined by FTSE Russell. The Russell 1000® Value Index is a subset of the Russell 1000® Index, which measures the performance of the large and mid-capitalization sector of the U.S. equity market.
±± 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. 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 0.42% for Institutional Class shares, 0.52% for I-2 shares and 0.82% for 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.
| | | | |
| Institutional Class - PKAIX | | I-2 - PKAPX | | Class A - PKAAX |
Sector Breakdown as of December 31, 20201§
| | | | | | | | |
Information Technology | | | | | | | 23.9% | |
Health Care | | | | | | | 18.8% | |
Consumer Discretionary | | | | | | | 11.7% | |
Consumer Staples | | | | | | | 10.6% | |
Financials | | | | | | | 9.8% | |
Industrials | | | | | | | 8.1% | |
Communication Services | | | | | | | 4.4% | |
Utilities | | | | | | | 4.3% | |
Energy | | | | | | | 3.5% | |
Short-Term Instrument | | | | | | | 2.1% | |
Materials | | | | | | | 2.1% | |
Real Estate | | | | | | | 0.7% | |
† % of Investments, at value.
§ Sector Breakdown and % of Investments exclude securities sold short and financial derivative instruments if any.
Fund Insights
The following affected performance (on a gross basis) during the reporting period:
| » | | Security selection in the information technology sector contributed to relative returns, as the Fund’s holdings outperformed the benchmark index. |
| » | | 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. |
| » | | Underweight exposure to, and security selection in, the real estate and energy sectors contributed to relative returns, as the sectors underperformed the benchmark index and the Fund’s holdings outperformed the benchmark index. |
| » | | Overweight exposure to, and security selection in, the health care and consumer staples sectors detracted from relative returns, as the sectors and the Fund’s holdings underperformed the benchmark index. |
| | | | | | | | | | | | |
| | | | SEMIANNUAL REPORT | | | | | | | DECEMBER 31, 2020 | | | 17 |
PIMCO RAE US Small Fund
Cumulative Returns Through December 31, 2020
$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 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 (“U.S. companies”). Specifically, under normal circumstances, the Fund will obtain exposure to a portfolio of stocks of small U.S. companies (“RAE US Small Portfolio”) through investment in the securities that comprise the RAE US Small Portfolio. The stocks are selected by the Fund’s sub-adviser, Research Affiliates, 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, 2020* | |
| | | | | | |
| | | | | 6 Months* | | 1 Year | | | 5 Years | | | 10 Years | | | Fund Inception
(09/29/05) | |
| | PIMCO RAE US Small Fund Institutional Class | | 37.61% | | | 6.88% | | | | 9.54% | | | | 9.50% | | | | 7.95% | |
| | PIMCO RAE US Small Fund I-2 | | 37.49% | | | 6.77% | | | | 9.43% | | | | 9.43% | | | | 7.91% | |
| | PIMCO RAE US Small Fund Class A | | 37.35% | | | 6.44% | | | | 9.12% | | | | 9.25% | | | | 7.79% | |
| | PIMCO RAE US Small Fund Class A (adjusted) | | 32.17% | | | 2.42% | | | | 8.27% | | | | 8.84% | | | | 7.52% | |
| | Russell 2000® Value Index± | | 36.77% | | | 4.64% | | | | 9.65% | | | | 8.66% | | | | 6.86% | |
| | Russell 2000® Index±± ª | | 37.85% | | | 19.96% | | | | 13.26% | | | | 11.20% | | | | 8.83% ¨ | |
All Fund returns are net of fees and expenses and include applicable fee waivers and/or expense limitations. Absent any applicable fee waivers and/or expense limitations, performance would have been lower and there can be no assurance that any such waivers or limitations will continue in the future.
* Cumulative return.
¨ Average annual total return since 9/30/2005
ª Prior to 2/28/2019, the fund’s primary benchmark was the Russell 2000® Index.
± The Russell 2000 ® Value Index measures the performance of the small-capitalization value sector of the U.S. equity market, as defined by FTSE Russell. The Russell 2000 ® Value Index is a subset of the Russell 2000 ® Index.
±± 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. 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 0.54% for Institutional Class shares, 0.64% for I-2 shares and 0.94% for 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.
| | | | |
| Institutional Class - PMJIX | | I-2 - PMJPX | | Class A - PMJAX |
Sector Breakdown as of December 31, 20201§
| | | | | | | | |
Consumer Discretionary | | | | | | | 17.1% | |
Industrials | | | | | | | 15.9% | |
Financials | | | | | | | 11.6% | |
Energy | | | | | | | 9.4% | |
Real Estate | | | | | | | 9.2% | |
Consumer Staples | | | | | | | 8.6% | |
Health Care | | | | | | | 8.4% | |
Information Technology | | | | | | | 6.3% | |
Materials | | | | | | | 6.1% | |
Short-Term Instruments | | | | | | | 3.1% | |
Utilities | | | | | | | 2.4% | |
Communication Services | | | | | | | 1.9% | |
† % of Investments, at value.
§ Sector Breakdown and % of Investments exclude securities sold short and financial derivative instruments if any.
Fund Insights
The following affected performance (on a gross basis) during the reporting period:
| » | | Overweight exposure to, and security selection in, the consumer discretionary and energy sectors contributed to relative returns, as the sectors and the Fund’s holdings outperformed the benchmark index. |
| » | | Underweight exposure to, and security selection in, the financials 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 real estate and health care sectors contributed to relative returns, as the Fund’s holdings outperformed the benchmark index. |
| » | | Security selection in the consumer staples and materials sectors detracted from relative returns, as the Fund’s holdings underperformed the benchmark index. |
| | | | | | | | | | | | |
| | | | SEMIANNUAL REPORT | | | | | | | DECEMBER 31, 2020 | | | 19 |
Expense Examples
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 investment advisory fees, supervisory and administrative 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, 2020 to December 31, 2020 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 investment advisory fees and supervisory and administrative 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
(07/01/20) | | | Ending
Account Value
(12/31/20) | | | Expenses Paid
During Period* | | | | | | Beginning
Account Value
(07/01/20) | | | Ending
Account Value
(12/31/20) | | | Expenses Paid
During Period* | | | | | | Net Annualized
Expense Ratio** | |
| | | | | | | | | | |
PIMCO RAE Emerging Markets Fund | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Institutional Class | | | | | | $ | 1,000.00 | | | $ | 1,297.30 | | | $ | 4.59 | | | | | | | $ | 1,000.00 | | | $ | 1,021.62 | | | $ | 4.04 | | | | | | | | 0.78 | % |
| I-2 | | | | | | | 1,000.00 | | | | 1,295.90 | | | | 5.18 | | | | | | | | 1,000.00 | | | | 1,021.11 | | | | 4.56 | | | | | | | | 0.88 | |
| Class A | | | | | | | 1,000.00 | | | | 1,294.40 | | | | 6.64 | | | | | | | | 1,000.00 | | | | 1,019.83 | | | | 5.85 | | | | | | | | 1.13 | |
| | | | | | | | | | |
PIMCO RAE Global Fund | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Institutional Class | | | | | | $ | 1,000.00 | | | $ | 1,255.10 | | | $ | 0.12 | | | | | | | $ | 1,000.00 | | | $ | 1,025.51 | | | $ | 0.10 | | | | | | | | 0.02 | % |
| I-2 | | | | | | | 1,000.00 | | | | 1,254.30 | | | | 0.69 | | | | | | | | 1,000.00 | | | | 1,025.00 | | | | 0.62 | | | | | | | | 0.12 | |
| Class A | | | | | | | 1,000.00 | | | | 1,253.00 | | | | 2.14 | | | | | | | | 1,000.00 | | | | 1,023.72 | | | | 1.92 | | | | | | | | 0.37 | |
| | | | | | | | | | |
PIMCO RAE Global ex-US Fund | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Institutional Class | | | | | | $ | 1,000.00 | | | $ | 1,264.20 | | | $ | 0.06 | | | | | | | $ | 1,000.00 | | | $ | 1,025.57 | | | $ | 0.05 | | | | | | | | 0.01 | % |
| I-2 | | | | | | | 1,000.00 | | | | 1,265.30 | | | | 0.64 | | | | | | | | 1,000.00 | | | | 1,025.05 | | | | 0.57 | | | | | | | | 0.11 | |
| Class A | | | | | | | 1,000.00 | | | | 1,261.90 | | | | 2.09 | | | | | | | | 1,000.00 | | | | 1,023.77 | | | | 1.87 | | | | | | | | 0.36 | |
| | | | | | | | | | |
PIMCO RAE International Fund | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Institutional Class | | | | | | $ | 1,000.00 | | | $ | 1,254.90 | | | $ | 3.00 | | | | | | | $ | 1,000.00 | | | $ | 1,022.95 | | | $ | 2.69 | | | | | | | | 0.52 | % |
| I-2 | | | | | | | 1,000.00 | | | | 1,253.00 | | | | 3.58 | | | | | | | | 1,000.00 | | | | 1,022.44 | | | | 3.21 | | | | | | | | 0.62 | |
| Class A | | | | | | | 1,000.00 | | | | 1,251.50 | | | | 5.02 | | | | | | | | 1,000.00 | | | | 1,021.16 | | | | 4.50 | | | | | | | | 0.87 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | Actual | | | | | | Hypothetical
(5% return before expenses) | | | | | | | |
| | | | | | Beginning
Account Value
(07/01/20) | | | Ending
Account Value
(12/31/20) | | | Expenses Paid
During Period* | | | | | | Beginning
Account Value
(07/01/20) | | | Ending
Account Value
(12/31/20) | | | Expenses Paid
During Period* | | | | | | Net Annualized
Expense Ratio** | |
| | | | | | | | | | |
PIMCO RAE US Fund | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Institutional Class | | | | | | $ | 1,000.00 | | | $ | 1,239.30 | | | $ | 2.35 | | | | | | | $ | 1,000.00 | | | $ | 1,023.52 | | | $ | 2.13 | | | | | | | | 0.41 | % |
| I-2 | | | | | | | 1,000.00 | | | | 1,239.00 | | | | 2.93 | | | | | | | | 1,000.00 | | | | 1,023.00 | | | | 2.64 | | | | | | | | 0.51 | |
| Class A | | | | | | | 1,000.00 | | | | 1,237.20 | | | | 4.64 | | | | | | | | 1,000.00 | | | | 1,021.47 | | | | 4.19 | | | | | | | | 0.81 | |
| | | | | | | | | | |
PIMCO RAE US Small Fund | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Institutional Class | | | | | | $ | 1,000.00 | | | $ | 1,376.10 | | | $ | 3.23 | | | | | | | $ | 1,000.00 | | | $ | 1,022.90 | | | $ | 2.75 | | | | | | | | 0.53 | % |
| I-2 | | | | | | | 1,000.00 | | | | 1,374.90 | | | | 3.83 | | | | | | | | 1,000.00 | | | | 1,022.39 | | | | 3.26 | | | | | | | | 0.63 | |
| Class A | | | | | | | 1,000.00 | | | | 1,373.50 | | | | 5.65 | | | | | | | | 1,000.00 | | | | 1,020.85 | | | | 4.81 | | | | | | | | 0.93 | |
* 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 187/365 (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.
| | | | | | | | | | | | |
| | | | SEMIANNUAL REPORT | | | | | | | DECEMBER 31, 2020 | | | 21 |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | Investment Operations | | | Less Distributions(c) | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
Selected Per Share Data for the Year or
Period Ended^: | | Net Asset Value
Beginning of
Year or
Period(a) | | | Net Investment
Income (Loss)(b) | | | Net Realized/
Unrealized
Gain (Loss) | | | Total | | | From Net
Investment
Income | | | From Net
Realized
Capital
Gains | | | Tax Basis
Return of
Capital | | | Total | |
| | | | | | | | |
PIMCO RAE Emerging Markets Fund | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Institutional Class | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | |
07/01/2020 - 12/31/2020+ | | $ | 7.83 | | | $ | 0.14 | | | $ | 2.19 | | | $ | 2.33 | | | $ | (0.17 | ) | | $ | 0.00 | | | $ | 0.00 | | | $ | (0.17 | ) |
| | | | | | | | |
06/30/2020 | | | 9.92 | | | | 0.24 | | | | (2.06 | ) | | | (1.82 | ) | | | (0.24 | ) | | | (0.03 | ) | | | 0.00 | | | | (0.27 | ) |
| | | | | | | | |
06/30/2019 | | | 10.74 | | | | 0.29 | | | | (0.11 | ) | | | 0.18 | | | | (0.26 | ) | | | (0.74 | ) | | | 0.00 | | | | (1.00 | ) |
| | | | | | | | |
06/30/2018 | | | 10.83 | | | | 0.25 | | | | 0.59 | | | | 0.84 | | | | (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 | ) |
| I-2 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | |
07/01/2020 - 12/31/2020+ | | | 7.80 | | | | 0.15 | | | | 2.17 | | | | 2.32 | | | | (0.16 | ) | | | 0.00 | | | | 0.00 | | | | (0.16 | ) |
| | | | | | | | |
06/30/2020 | | | 9.86 | | | | 0.32 | | | | (2.16 | ) | | | (1.84 | ) | | | (0.19 | ) | | | (0.03 | ) | | | 0.00 | | | | (0.22 | ) |
| | | | | | | | |
06/30/2019 | | | 10.68 | | | | 0.29 | | | | (0.11 | ) | | | 0.18 | | | | (0.26 | ) | | | (0.74 | ) | | | 0.00 | | | | (1.00 | ) |
| | | | | | | | |
06/30/2018 | | | 10.79 | | | | 0.24 | | | | 0.57 | | | | 0.81 | | | | (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 | ) |
| Class A | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | |
07/01/2020 - 12/31/2020+ | | | 7.75 | | | | 0.12 | | | | 2.17 | | | | 2.29 | | | | (0.15 | ) | | | 0.00 | | | | 0.00 | | | | (0.15 | ) |
| | | | | | | | |
06/30/2020 | | | 9.84 | | | | 0.23 | | | | (2.07 | ) | | | (1.84 | ) | | | (0.22 | ) | | | (0.03 | ) | | | 0.00 | | | | (0.25 | ) |
| | | | | | | | |
06/30/2019 | | | 10.68 | | | | 0.25 | | | | (0.09 | ) | | | 0.16 | | | | (0.26 | ) | | | (0.74 | ) | | | 0.00 | | | | (1.00 | ) |
| | | | | | | | |
06/30/2018 | | | 10.81 | | | | 0.21 | | | | 0.59 | | | | 0.80 | | | | (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 | ) |
| | | | | | | | |
PIMCO RAE Global Fund | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Institutional Class | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | |
07/01/2020 - 12/31/2020+ | | $ | 8.48 | | | $ | 0.21 | | | $ | 1.95 | | | $ | 2.16 | | | $ | (0.23 | ) | | $ | (0.03 | ) | | $ | 0.00 | | | $ | (0.26 | ) |
| | | | | | | | |
06/30/2020 | | | 10.30 | | | | 0.35 | | | | (1.45 | ) | | | (1.10 | ) | | | (0.34 | ) | | | (0.38 | ) | | | 0.00 | | | | (0.72 | ) |
| | | | | | | | |
06/30/2019 | | | 11.04 | | | | 0.31 | | | | (0.26 | ) | | | 0.05 | | | | (0.30 | ) | | | (0.49 | ) | | | 0.00 | | | | (0.79 | ) |
| | | | | | | | |
06/30/2018 | | | 10.78 | | | | 0.35 | | | | 0.64 | | | | 0.99 | | | | (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 | ) |
| I-2 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | |
07/01/2020 - 12/31/2020+ | | | 8.45 | | | | 0.20 | | | | 1.95 | | | | 2.15 | | | | (0.23 | ) | | | (0.03 | ) | | | 0.00 | | | | (0.26 | ) |
| | | | | | | | |
06/30/2020 | | | 10.27 | | | | 0.35 | | | | (1.45 | ) | | | (1.10 | ) | | | (0.34 | ) | | | (0.38 | ) | | | 0.00 | | | | (0.72 | ) |
| | | | | | | | |
06/30/2019 | | | 11.01 | | | | 0.32 | | | | (0.28 | ) | | | 0.04 | | | | (0.29 | ) | | | (0.49 | ) | | | 0.00 | | | | (0.78 | ) |
| | | | | | | | |
06/30/2018 | | | 10.76 | | | | 0.35 | | | | 0.62 | | | | 0.97 | | | | (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 | ) |
| Class A | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | |
07/01/2020 - 12/31/2020+ | | | 8.37 | | | | 0.19 | | | | 1.93 | | | | 2.12 | | | | (0.22 | ) | | | (0.03 | ) | | | 0.00 | | | | (0.25 | ) |
| | | | | | | | |
06/30/2020 | | | 10.20 | | | | 0.34 | | | | (1.46 | ) | | | (1.12 | ) | | | (0.33 | ) | | | (0.38 | ) | | | 0.00 | | | | (0.71 | ) |
| | | | | | | | |
06/30/2019 | | | 10.95 | | | | 0.27 | | | | (0.25 | ) | | | 0.02 | | | | (0.28 | ) | | | (0.49 | ) | | | 0.00 | | | | (0.77 | ) |
| | | | | | | | |
06/30/2018 | | | 10.72 | | | | 0.24 | | | | 0.70 | | | | 0.94 | | | | (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 | ) |
| | | | | | | | |
PIMCO RAE Global ex-US Fund | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Institutional Class | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | |
07/01/2020 - 12/31/2020+ | | $ | 8.20 | | | $ | 0.22 | | | $ | 1.95 | | | $ | 2.17 | | | $ | (0.21 | ) | | $ | 0.00 | | | $ | 0.00 | | | $ | (0.21 | ) |
| | | | | | | | |
06/30/2020 | | | 10.23 | | | | 0.38 | | | | (1.76 | ) | | | (1.38 | ) | | | (0.37 | ) | | | (0.28 | ) | | | 0.00 | | | | (0.65 | ) |
| | | | | | | | |
06/30/2019 | | | 10.68 | | | | 0.32 | | | | (0.51 | ) | | | (0.19 | ) | | | (0.26 | ) | | | 0.00 | | | | 0.00 | | | | (0.26 | ) |
| | | | | | | | |
06/30/2018 | | | 10.49 | | | | 0.38 | | | | 0.28 | | | | 0.66 | | | | (0.42 | ) | | | 0.00 | | | | (0.05 | ) | | | (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 | ) |
| I-2 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | |
07/01/2020 - 12/31/2020+ | | | 8.18 | | | | 0.05 | | | | 2.12 | | | | 2.17 | | | | (0.16 | ) | | | 0.00 | | | | 0.00 | | | | (0.16 | ) |
| | | | | | | | |
06/30/2020 | | | 10.20 | | | | 0.30 | | | | (1.68 | ) | | | (1.38 | ) | | | (0.36 | ) | | | (0.28 | ) | | | 0.00 | | | | (0.64 | ) |
| | | | | | | | |
06/30/2019 | | | 10.65 | | | | 0.26 | | | | (0.46 | ) | | | (0.20 | ) | | | (0.25 | ) | | | 0.00 | | | | 0.00 | | | | (0.25 | ) |
| | | | | | | | |
06/30/2018 | | | 10.47 | | | | 0.29 | | | | 0.35 | | | | 0.64 | | | | (0.41 | ) | | | 0.00 | | | | (0.05 | ) | | | (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 | ) |
| | | | | | |
| 22 | | PIMCO EQUITY SERIES | | | See Accompanying Notes | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | Ratios/Supplemental Data | |
| | | | | | | | | | Ratios to Average Net Assets(d) | | | | |
Net Asset
Value End of
Year or
Period(a) | | | Total Return(a) | | | 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 | |
| | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | |
| $ | 9.99 | | | | 29.73 | % | | $ | 1,667,053 | | | | 0.78 | %(e)* | | | 0.91 | %(e)* | | | 0.77 | %(e)* | | | 0.90 | %(e)* | | | 3.09 | %* | | | 45 | % |
| | | | | | | | |
| | 7.83 | | | | (18.91 | ) | | | 1,184,716 | | | | 0.76 | | | | 0.97 | | | | 0.75 | | | | 0.96 | | | | 2.70 | | | | 56 | |
| | | | | | | | |
| | 9.92 | | | | 2.40 | | | | 2,632,982 | | | | 0.75 | | | | 0.96 | | | | 0.75 | | | | 0.96 | | | | 2.94 | | | | 25 | |
| | | | | | | | |
| | 10.74 | | | | 7.50 | | | | 1,848,953 | | | | 0.76 | | | | 0.97 | | | | 0.76 | | | | 0.97 | | | | 2.13 | | | | 28 | |
| | | | | | | | |
| | 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 | |
| | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | |
| | 9.96 | | | | 29.76 | | | | 2,787 | | | | 0.88 | (f)* | | | 1.01 | (f)* | | | 0.87 | (f)* | | | 1.00 | (f)* | | | 3.40 | * | | | 45 | |
| | | | | | | | |
| | 7.80 | | | | (19.13 | ) | | | 3,070 | | | | 0.86 | | | | 1.07 | | | | 0.85 | | | | 1.06 | | | | 3.58 | | | | 56 | |
| | | | | | | | |
| | 9.86 | | | | 2.42 | | | | 16,263 | | | | 0.85 | | | | 1.06 | | | | 0.85 | | | | 1.06 | | | | 2.93 | | | | 25 | |
| | | | | | | | |
| | 10.68 | | | | 7.26 | | | | 17,486 | | | | 0.86 | | | | 1.07 | | | | 0.86 | | | | 1.07 | | | | 2.07 | | | | 28 | |
| | | | | | | | |
| | 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 | |
| | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | |
| | 9.89 | | | | 29.60 | | | | 10,919 | | | | 1.13 | (f)* | | | 1.26 | (f)* | | | 1.12 | (f)* | | | 1.25 | (f)* | | | 2.78 | * | | | 45 | |
| | | | | | | | |
| | 7.75 | | | | (19.27 | ) | | | 7,628 | | | | 1.11 | | | | 1.32 | | | | 1.10 | | | | 1.31 | | | | 2.61 | | | | 56 | |
| | | | | | | | |
| | 9.84 | | | | 2.21 | | | | 16,198 | | | | 1.10 | | | | 1.31 | | | | 1.10 | | | | 1.31 | | | | 2.52 | | | | 25 | |
| | | | | | | | |
| | 10.68 | | | | 7.08 | | | | 7,350 | | | | 1.11 | | | | 1.32 | | | | 1.11 | | | | 1.32 | | | | 1.76 | | | | 28 | |
| | | | | | | | |
| | 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 | |
| | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | |
| $ | 10.38 | | | | 25.51 | % | | $ | 301,821 | | | | 0.02 | %(g)(h)* | | | 0.64 | %(g)(h)* | | | 0.02 | %(g)(h)* | | | 0.64 | %(g)(h)* | | | 4.47 | %* | | | 6 | % |
| | | | | | | | |
| | 8.48 | | | | (11.89 | ) | | | 276,005 | | | | 0.02 | | | | 0.72 | | | | 0.02 | | | | 0.72 | | | | 3.67 | | | | 29 | |
| | | | | | | | |
| | 10.30 | | | | 1.07 | | | | 292,168 | | | | 0.02 | | | | 0.71 | | | | 0.02 | | | | 0.71 | | | | 2.97 | | | | 38 | |
| | | | | | | | |
| | 11.04 | | | | 9.05 | | | | 359,953 | | | | 0.02 | | | | 0.72 | | | | 0.02 | | | | 0.72 | | | | 3.07 | | | | 19 | |
| | | | | | | | |
| | 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 | |
| | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | |
| | 10.34 | | | | 25.43 | | | | 123 | | | | 0.12 | (g)(i)* | | | 0.74 | (g)(i)* | | | 0.12 | (g)(i)* | | | 0.74 | (g)(i)* | | | 4.32 | * | | | 6 | |
| | | | | | | | |
| | 8.45 | | | | (11.96 | ) | | | 137 | | | | 0.12 | | | | 0.82 | | | | 0.12 | | | | 0.82 | | | | 3.68 | | | | 29 | |
| | | | | | | | |
| | 10.27 | | | | 1.00 | | | | 218 | | | | 0.12 | | | | 0.81 | | | | 0.12 | | | | 0.81 | | | | 3.01 | | | | 38 | |
| | | | | | | | |
| | 11.01 | | | | 8.93 | | | | 3,293 | | | | 0.12 | | | | 0.82 | | | | 0.12 | | | | 0.82 | | | | 3.09 | | | | 19 | |
| | | | | | | | |
| | 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 | |
| | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | |
| | 10.24 | | | | 25.30 | | | | 1,058 | | | | 0.37 | (g)(i)* | | | 0.99 | (g)(i)* | | | 0.37 | (g)(i)* | | | 0.99 | (g)(i)* | | | 4.09 | * | | | 6 | |
| | | | | | | | |
| | 8.37 | | | | (12.26 | ) | | | 1,115 | | | | 0.37 | | | | 1.07 | | | | 0.37 | | | | 1.07 | | | | 3.54 | | | | 29 | |
| | | | | | | | |
| | 10.20 | | | | 0.82 | | | | 1,901 | | | | 0.37 | | | | 1.06 | | | | 0.37 | | | | 1.06 | | | | 2.58 | | | | 38 | |
| | | | | | | | |
| | 10.95 | | | | 8.64 | | | | 1,505 | | | | 0.37 | | | | 1.07 | | | | 0.37 | | | | 1.07 | | | | 2.09 | | | | 19 | |
| | | | | | | | |
| | 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 | |
| | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | |
| $ | 10.16 | | | | 26.42 | % | | $ | 67,549 | | | | 0.01 | %(j)* | | | 0.69 | %(j)* | | | 0.01 | %(j)* | | | 0.69 | %(j)* | | | 4.70 | %* | | | 5 | % |
| | | | | | | | |
| | 8.20 | | | | (14.73 | ) | | | 53,191 | | | | 0.02 | | | | 0.78 | | | | 0.01 | | | | 0.77 | | | | 4.03 | | | | 34 | |
| | | | | | | | |
| | 10.23 | | | | (1.50 | ) | | | 75,630 | | | | 0.00 | | | | 0.76 | | | | 0.00 | | | | 0.76 | | | | 3.13 | | | | 17 | |
| | | | | | | | |
| | 10.68 | | | | 6.01 | | | | 75,994 | | | | 0.00 | | | | 0.77 | | | | 0.00 | | | | 0.77 | | | | 3.36 | | | | 9 | |
| | | | | | | | |
| | 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 | |
| | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | |
| | 10.19 | | | | 26.53 | | | | 5 | | | | 0.11 | (k)* | | | 0.79 | (k)* | | | 0.11 | (k)* | | | 0.79 | (k)* | | | 1.17 | * | | | 5 | |
| | | | | | | | |
| | 8.18 | | | | (14.74 | ) | | | 67 | | | | 0.12 | | | | 0.88 | | | | 0.11 | | | | 0.87 | | | | 3.14 | | | | 34 | |
| | | | | | | | |
| | 10.20 | | | | (1.60 | ) | | | 428 | | | | 0.10 | | | | 0.86 | | | | 0.10 | | | | 0.86 | | | | 2.50 | | | | 17 | |
| | | | | | | | |
| | 10.65 | | | | 5.88 | | | | 900 | | | | 0.10 | | | | 0.87 | | | | 0.10 | | | | 0.87 | | | | 2.58 | | | | 9 | |
| | | | | | | | |
| | 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 | |
| | | | | | | | | | | | |
| | | | SEMIANNUAL REPORT | | | | | | | DECEMBER 31, 2020 | | | 23 |
| | | | |
| Financial Highlights | | (Cont.) | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | Investment Operations | | | Less Distributions(c) | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
Selected Per Share Data for the Year or
Period Ended^: | | Net Asset Value
Beginning of
Year or
Period(a) | | | Net Investment
Income (Loss)(b) | | | Net Realized/
Unrealized
Gain (Loss) | | | Total | | | From Net
Investment
Income | | |
From Net
Realized
Capital
Gains | | | Tax Basis
Return of
Capital | | | Total | |
| | | | | | | | |
PIMCO RAE Global ex-US Fund (Cont.) | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Class A | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | |
07/01/2020 - 12/31/2020+ | | $ | 8.10 | | | $ | 0.18 | | | $ | 1.94 | | | $ | 2.12 | | | $ | (0.19 | ) | | $ | 0.00 | | | $ | 0.00 | | | $ | (0.19 | ) |
| | | | | | | | |
06/30/2020 | | | 10.14 | | | | 0.41 | | | | (1.81 | ) | | | (1.40 | ) | | | (0.36 | ) | | | (0.28 | ) | | | 0.00 | | | | (0.64 | ) |
| | | | | | | | |
06/30/2019 | | | 10.61 | | | | 0.23 | | | | (0.46 | ) | | | (0.23 | ) | | | (0.24 | ) | | | 0.00 | | | | 0.00 | | | | (0.24 | ) |
| | | | | | | | |
06/30/2018 | | | 10.44 | | | | 0.24 | | | | 0.38 | | | | 0.62 | | | | (0.40 | ) | | | 0.00 | | | | (0.05 | ) | | | (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 | ) |
| | | | | | | | |
PIMCO RAE International Fund | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Institutional Class | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | |
07/01/2020 - 12/31/2020+ | | $ | 8.11 | | | $ | 0.09 | | | $ | 1.98 | | | $ | 2.07 | | | $ | (0.23 | ) | | $ | 0.00 | | | $ | 0.00 | | | $ | (0.23 | ) |
| | | | | | | | |
06/30/2020 | | | 9.74 | | | | 0.23 | | | | (1.45 | ) | | | (1.22 | ) | | | (0.41 | ) | | | 0.00 | | | | 0.00 | | | | (0.41 | ) |
| | | | | | | | |
06/30/2019 | | | 10.60 | | | | 0.34 | | | | (0.68 | ) | | | (0.34 | ) | | | (0.25 | ) | | | (0.27 | ) | | | 0.00 | | | | (0.52 | ) |
| | | | | | | | |
06/30/2018 | | | 10.27 | | | | 0.33 | | | | 0.29 | | | | 0.62 | | | | (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 | ) |
| I-2 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | |
07/01/2020 - 12/31/2020+ | | | 8.07 | | | | 0.09 | | | | 1.95 | | | | 2.04 | | | | (0.22 | ) | | | 0.00 | | | | 0.00 | | | | (0.22 | ) |
| | | | | | | | |
06/30/2020 | | | 9.71 | | | | 0.21 | | | | (1.43 | ) | | | (1.22 | ) | | | (0.42 | ) | | | 0.00 | | | | 0.00 | | | | (0.42 | ) |
| | | | | | | | |
06/30/2019 | | | 10.57 | | | | 0.30 | | | | (0.64 | ) | | | (0.34 | ) | | | (0.25 | ) | | | (0.27 | ) | | | 0.00 | | | | (0.52 | ) |
| | | | | | | | |
06/30/2018 | | | 10.24 | | | | 0.26 | | | | 0.35 | | | | 0.61 | | | | (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 | ) |
| Class A | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | |
07/01/2020 - 12/31/2020+ | | | 8.01 | | | | 0.08 | | | | 1.94 | | | | 2.02 | | | | (0.21 | ) | | | 0.00 | | | | 0.00 | | | | (0.21 | ) |
| | | | | | | | |
06/30/2020 | | | 9.64 | | | | 0.18 | | | | (1.41 | ) | | | (1.23 | ) | | | (0.40 | ) | | | 0.00 | | | | 0.00 | | | | (0.40 | ) |
| | | | | | | | |
06/30/2019 | | | 10.53 | | | | 0.30 | | | | (0.67 | ) | | | (0.37 | ) | | | (0.25 | ) | | | (0.27 | ) | | | 0.00 | | | | (0.52 | ) |
| | | | | | | | |
06/30/2018 | | | 10.24 | | | | 0.37 | | | | 0.21 | | | | 0.58 | | | | (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 | ) |
| | | | | | | | |
PIMCO RAE US Fund | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Institutional Class | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | |
07/01/2020 - 12/31/2020+ | | $ | 9.72 | | | $ | 0.13 | | | $ | 2.20 | | | $ | 2.33 | | | $ | (0.28 | ) | | $ | (0.10 | ) | | $ | 0.00 | | | $ | (0.38 | ) |
| | | | | | | | |
06/30/2020 | | | 11.09 | | | | 0.28 | | | | (1.08 | ) | | | (0.80 | ) | | | (0.32 | ) | | | (0.25 | ) | | | 0.00 | | | | (0.57 | ) |
| | | | | | | | |
06/30/2019 | | | 11.30 | | | | 0.26 | | | | 0.20 | | | | 0.46 | | | | (0.21 | ) | | | (0.46 | ) | | | 0.00 | | | | (0.67 | ) |
| | | | | | | | |
06/30/2018 | | | 10.57 | | | | 0.23 | | | | 1.16 | | | | 1.39 | | | | (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 | ) |
| I-2 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | |
07/01/2020 - 12/31/2020+ | | | 9.67 | | | | 0.12 | | | | 2.19 | | | | 2.31 | | | | (0.27 | ) | | | (0.10 | ) | | | 0.00 | | | | (0.37 | ) |
| | | | | | | | |
06/30/2020 | | | 11.04 | | | | 0.27 | | | | (1.08 | ) | | | (0.81 | ) | | | (0.31 | ) | | | (0.25 | ) | | | 0.00 | | | | (0.56 | ) |
| | | | | | | | |
06/30/2019 | | | 11.26 | | | | 0.25 | | | | 0.20 | | | | 0.45 | | | | (0.21 | ) | | | (0.46 | ) | | | 0.00 | | | | (0.67 | ) |
| | | | | | | | |
06/30/2018 | | | 10.54 | | | | 0.22 | | | | 1.15 | | | | 1.37 | | | | (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 | ) |
| Class A | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | |
07/01/2020 - 12/31/2020+ | | | 9.55 | | | | 0.11 | | | | 2.16 | | | | 2.27 | | | | (0.26 | ) | | | (0.10 | ) | | | 0.00 | | | | (0.36 | ) |
| | | | | | | | |
06/30/2020 | | | 10.93 | | | | 0.23 | | | | (1.07 | ) | | | (0.84 | ) | | | (0.29 | ) | | | (0.25 | ) | | | 0.00 | | | | (0.54 | ) |
| | | | | | | | |
06/30/2019 | | | 11.19 | | | | 0.22 | | | | 0.19 | | | | 0.41 | | | | (0.21 | ) | | | (0.46 | ) | | | 0.00 | | | | (0.67 | ) |
| | | | | | | | |
06/30/2018 | | | 10.50 | | | | 0.18 | | | | 1.15 | | | | 1.33 | | | | (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 | ) |
| | | | | | | | |
PIMCO RAE US Small Fund | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Institutional Class | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | |
07/01/2020 - 12/31/2020+ | | $ | 8.80 | | | $ | 0.07 | | | $ | 3.24 | | | $ | 3.31 | | | $ | (0.17 | ) | | $ | (0.87 | ) | | $ | 0.00 | | | $ | (1.04 | ) |
| | | | | | | | |
06/30/2020 | | | 10.72 | | | | 0.14 | | | | (1.88 | ) | | | (1.74 | ) | | | (0.18 | ) | | | 0.00 | | | | 0.00 | | | | (0.18 | ) |
| | | | | | | | |
06/30/2019 | | | 12.33 | | | | 0.17 | | | | (1.05 | ) | | | (0.88 | ) | | | (0.09 | ) | | | (0.64 | ) | | | 0.00 | | | | (0.73 | ) |
| | | | | | | | |
06/30/2018 | | | 11.10 | | | | 0.15 | | | | 1.63 | | | | 1.78 | | | | (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 | ) |
| | | | | | |
| 24 | | PIMCO EQUITY SERIES | | | See Accompanying Notes | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | Ratios/Supplemental Data | |
| | | | | | | | | | Ratios to Average Net Assets(d) | | | | |
Net Asset
Value End of
Year or
Period(a) | | | Total Return(a) | | | 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 | |
| | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | |
| $ | 10.03 | | | | 26.19 | % | | $ | 13,263 | | | | 0.36 | %(k)* | | | 1.04 | %(k)* | | | 0.36 | %(k)* | | | 1.04 | %(k)* | | | 3.90 | %* | | | 5 | % |
| | | | | | | | |
| | 8.10 | | | | (15.01 | ) | | | 11,252 | | | | 0.37 | | | | 1.13 | | | | 0.36 | | | | 1.12 | | | | 4.66 | | | | 34 | |
| | | | | | | | |
| | 10.14 | | | | (1.90 | ) | | | 2,035 | | | | 0.35 | | | | 1.11 | | | | 0.35 | | | | 1.11 | | | | 2.32 | | | | 17 | |
| | | | | | | | |
| | 10.61 | | | | 5.69 | | | | 1,531 | | | | 0.35 | | | | 1.12 | | | | 0.35 | | | | 1.12 | | | | 2.14 | | | | 9 | |
| | | | | | | | |
| | 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 | |
| | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | |
| $ | 9.95 | | | | 25.49 | % | | $ | 1,088,281 | | | | 0.52 | %(l)* | | | 0.59 | %(l)* | | | 0.52 | %(l)* | | | 0.59 | %(l)* | | | 2.05 | %* | | | 51 | % |
| | | | | | | | |
| | 8.11 | | | | (13.27 | ) | | | 756,178 | | | | 0.51 | | | | 0.62 | | | | 0.50 | | | | 0.61 | | | | 2.65 | | | | 93 | |
| | | | | | | | |
| | 9.74 | | | | (2.72 | ) | | | 547,007 | | | | 0.50 | | | | 0.61 | | | | 0.50 | | | | 0.61 | | | | 3.41 | | | | 41 | |
| | | | | | | | |
| | 10.60 | | | | 5.88 | | | | 543,875 | | | | 0.51 | | | | 0.62 | | | | 0.51 | | | | 0.62 | | | | 3.04 | | | | 47 | |
| | | | | | | | |
| | 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 | |
| | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | |
| | 9.89 | | | | 25.30 | | | | 885 | | | | 0.62 | (m)* | | | 0.69 | (m)* | | | 0.62 | (m)* | | | 0.69 | (m)* | | | 2.03 | * | | | 51 | |
| | | | | | | | |
| | 8.07 | | | | (13.40 | ) | | | 841 | | | | 0.61 | | | | 0.72 | | | | 0.60 | | | | 0.71 | | | | 2.39 | | | | 93 | |
| | | | | | | | |
| | 9.71 | | | | (2.73 | ) | | | 832 | | | | 0.60 | | | | 0.71 | | | | 0.60 | | | | 0.71 | | | | 3.02 | | | | 41 | |
| | | | | | | | |
| | 10.57 | | | | 5.84 | | | | 1,994 | | | | 0.61 | | | | 0.72 | | | | 0.61 | | | | 0.72 | | | | 2.33 | | | | 47 | |
| | | | | | | | |
| | 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 | |
| | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | |
| | 9.82 | | | | 25.28 | | | | 4,089 | | | | 0.87 | (m)* | | | 0.94 | (m)* | | | 0.87 | (m)* | | | 0.94 | (m)* | | | 1.72 | * | | | 51 | |
| | | | | | | | |
| | 8.01 | | | | (13.57 | ) | | | 3,258 | | | | 0.86 | | | | 0.97 | | | | 0.85 | | | | 0.96 | | | | 2.05 | | | | 93 | |
| | | | | | | | |
| | 9.64 | | | | (3.03 | ) | | | 5,072 | | | | 0.85 | | | | 0.96 | | | | 0.85 | | | | 0.96 | | | | 3.06 | | | | 41 | |
| | | | | | | | |
| | 10.53 | | | | 5.53 | | | | 5,007 | | | | 0.86 | | | | 0.97 | | | | 0.86 | | | | 0.97 | | | | 3.34 | | | | 47 | |
| | | | | | | | |
| | 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 | |
| | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | |
| $ | 11.67 | | | | 23.93 | % | | $ | 767,306 | | | | 0.41 | %(n)* | | | 0.48 | %(n)* | | | 0.41 | %(n)* | | | 0.48 | %(n)* | | | 2.37 | %* | | | 28 | % |
| | | | | | | | |
| | 9.72 | | | | (8.03 | ) | | | 578,588 | | | | 0.41 | | | | 0.52 | | | | 0.40 | | | | 0.51 | | | | 2.60 | | | | 34 | |
| | | | | | | | |
| | 11.09 | | | | 4.66 | | | | 745,741 | | | | 0.40 | | | | 0.51 | | | | 0.40 | | | | 0.51 | | | | 2.39 | | | | 32 | |
| | | | | | | | |
| | 11.30 | | | | 13.22 | | | | 771,581 | | | | 0.41 | | | | 0.52 | | | | 0.41 | | | | 0.52 | | | | 2.06 | | | | 44 | |
| | | | | | | | |
| | 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 | |
| | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | |
| | 11.61 | | | | 23.90 | | | | 20,382 | | | | 0.51 | (o)* | | | 0.58 | (o)* | | | 0.51 | (o)* | | | 0.58 | (o)* | | | 2.26 | * | | | 28 | |
| | | | | | | | |
| | 9.67 | | | | (8.08 | ) | | | 16,970 | | | | 0.51 | | | | 0.62 | | | | 0.50 | | | | 0.61 | | | | 2.51 | | | | 34 | |
| | | | | | | | |
| | 11.04 | | | | 4.58 | | | | 14,257 | | | | 0.50 | | | | 0.61 | | | | 0.50 | | | | 0.61 | | | | 2.25 | | | | 32 | |
| | | | | | | | |
| | 11.26 | | | | 13.10 | | | | 7,265 | | | | 0.51 | | | | 0.62 | | | | 0.51 | | | | 0.62 | | | | 1.96 | | | | 44 | |
| | | | | | | | |
| | 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 | |
| | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | |
| | 11.46 | | | | 23.72 | | | | 8,341 | | | | 0.81 | (p)* | | | 0.88 | (p)* | | | 0.81 | (p)* | | | 0.88 | (p)* | | | 1.96 | * | | | 28 | |
| | | | | | | | |
| | 9.55 | | | | (8.41 | ) | | | 7,432 | | | | 0.81 | | | | 0.92 | | | | 0.80 | | | | 0.91 | | | | 2.21 | | | | 34 | |
| | | | | | | | |
| | 10.93 | | | | 4.24 | | | | 8,197 | | | | 0.80 | | | | 0.91 | | | | 0.80 | | | | 0.91 | | | | 2.03 | | | | 32 | |
| | | | | | | | |
| | 11.19 | | | | 12.73 | | | | 6,973 | | | | 0.81 | | | | 0.92 | | | | 0.81 | | | | 0.92 | | | | 1.65 | | | | 44 | |
| | | | | | | | |
| | 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 | |
| | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | |
| $ | 11.07 | | | | 37.61 | % | | $ | 545,662 | | | | 0.53 | %(n)* | | | 0.60 | %(n)* | | | 0.51 | %(n)* | | | 0.58 | %(n)* | | | 1.33 | %* | | | 57 | % |
| | | | | | | | |
| | 8.80 | | | | (16.64 | ) | | | 288,592 | | | | 0.53 | | | | 0.63 | | | | 0.52 | | | | 0.62 | | | | 1.50 | | | | 202 | |
| | | | | | | | |
| | 10.72 | | | | (6.74 | ) | | | 119,223 | | | | 0.51 | | | | 0.62 | | | | 0.51 | | | | 0.62 | | | | 1.52 | | | | 64 | |
| | | | | | | | |
| | 12.33 | | | | 16.37 | | | | 128,985 | | | | 0.50 | | | | 0.62 | | | | 0.50 | | | | 0.62 | | | | 1.30 | | | | 30 | |
| | | | | | | | |
| | 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 | |
| | | | | | | | | | | | |
| | | | SEMIANNUAL REPORT | | | | | | | DECEMBER 31, 2020 | | | 25 |
| | | | |
| Financial Highlights | | (Cont.) | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | Investment Operations | | | Less Distributions(c) | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
Selected Per Share Data for the Year or
Period Ended^: | | Net Asset Value
Beginning of
Year or
Period(a) | | | Net Investment
Income (Loss)(b) | | | Net Realized/
Unrealized
Gain (Loss) | | | Total | | | From Net
Investment
Income | | |
From Net
Realized
Capital
Gains | | | Tax Basis
Return of
Capital | | | Total | |
| | | | | | | | |
PIMCO RAE US Small Fund (Cont.) | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| I-2 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | |
07/01/2020 - 12/31/2020+ | | $ | 8.76 | | | $ | 0.06 | | | $ | 3.23 | | | $ | 3.29 | | | $ | (0.17 | ) | | $ | (0.87 | ) | | $ | 0.00 | | | $ | (1.04 | ) |
| | | | | | | | |
06/30/2020 | | | 10.67 | | | | 0.16 | | | | (1.90 | ) | | | (1.74 | ) | | | (0.17 | ) | | | 0.00 | | | | 0.00 | | | | (0.17 | ) |
| | | | | | | | |
06/30/2019 | | | 12.29 | | | | 0.15 | | | | (1.04 | ) | | | (0.89 | ) | | | (0.09 | ) | | | (0.64 | ) | | | 0.00 | | | | (0.73 | ) |
| | | | | | | | |
06/30/2018 | | | 11.07 | | | | 0.14 | | | | 1.62 | | | | 1.76 | | | | (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 | ) |
| Class A | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | |
07/01/2020 - 12/31/2020+ | | | 8.68 | | | | 0.05 | | | | 3.20 | | | | 3.25 | | | | (0.16 | ) | | | (0.87 | ) | | | 0.00 | | | | (1.03 | ) |
| | | | | | | | |
06/30/2020 | | | 10.60 | | | | 0.12 | | | | (1.89 | ) | | | (1.77 | ) | | | (0.15 | ) | | | 0.00 | | | | 0.00 | | | | (0.15 | ) |
| | | | | | | | |
06/30/2019 | | | 12.24 | | | | 0.12 | | | | (1.03 | ) | | | (0.91 | ) | | | (0.09 | ) | | | (0.64 | ) | | | 0.00 | | | | (0.73 | ) |
| | | | | | | | |
06/30/2018 | | | 11.05 | | | | 0.09 | | | | 1.62 | | | | 1.71 | | | | (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 | ) |
| ^ | A zero balance may reflect actual amounts rounding to less than $0.01 or 0.01%. |
| (a) | Includes adjustments required by U.S. GAAP and may differ from net asset values and performance reported elsewhere by the Fund. |
| (b) | Per share amounts based on average number of shares outstanding during the year or period. |
| (c) | 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. |
| (d) | Ratios shown do not include expenses of the investment companies in which a Fund may invest. See Note 9, Fees and Expenses, in the Notes to Financial Statements for more information regarding the expenses and any applicable fee waivers associated with these investments. |
| (e) | Effective November 1, 2020, the Class’s Supervisory and Administrative fee was decreased by 0.20% to an annual rate of 0.25%. |
| (f) | Effective November 1, 2020, the Class’s Supervisory and Administrative fee was decreased by 0.20% to an annual rate of 0.35%. |
| (g) | Effective November 1, 2020, the Fund’s Investment advisory fee was decreased by 0.05% to an annual rate of 0.35%. |
| (h) | Effective November 1, 2020, the Class’s Supervisory and Administrative fee was decreased by 0.15% to an annual rate of 0.15%. |
| (i) | Effective November 1, 2020, the Class’s Supervisory and Administrative fee was decreased by 0.15% to an annual rate of 0.25%. |
| (j) | Effective November 1, 2020, the Class’s Supervisory and Administrative fee was decreased by 0.20% to an annual rate of 0.15%. |
| (k) | Effective November 1, 2020, the Class’s Supervisory and Administrative fee was decreased by 0.20% to an annual rate of 0.25%. |
| (l) | Effective November 1, 2020, the Class’s Supervisory and Administrative fee was decreased by 0.10% to an annual rate of 0.20%. |
| (m) | Effective November 1, 2020, the Class’s Supervisory and Administrative fee was decreased by 0.10% to an annual rate of 0.30%. |
| (n) | Effective November 1, 2020, the Class’s Supervisory and Administrative fee was decreased by 0.10% to an annual rate of 0.15%. |
| (o) | Effective November 1, 2020, the Class’s Supervisory and Administrative fee was decreased by 0.10% to an annual rate of 0.25%. |
| (p) | Effective November 1, 2020, the Class’s Supervisory and Administrative fee was decreased by 0.10% to an annual rate of 0.30%. |
| | | | | | |
| 26 | | PIMCO EQUITY SERIES | | | See Accompanying Notes | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | Ratios/Supplemental Data | |
| | | | | | | | | | Ratios to Average Net Assets(d) | | | | |
Net Asset
Value End of
Year or
Period(a) | | | Total Return(a) | | | 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 | |
| | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | |
| $ | 11.01 | | | | 37.49 | % | | $ | 1,016 | | | | 0.63 | %(o)* | | | 0.70 | %(o)* | | | 0.61 | %(o)* | | | 0.68 | %(o)* | | | 1.20 | %* | | | 57 | % |
| | | | | | | | |
| | 8.76 | | | | (16.67 | ) | | | 883 | | | | 0.63 | | | | 0.73 | | | | 0.62 | | | | 0.72 | | | | 1.53 | | | | 202 | |
| | | | | | | | |
| | 10.67 | | | | (6.85 | ) | | | 2,565 | | | | 0.61 | | | | 0.72 | | | | 0.61 | | | | 0.72 | | | | 1.34 | | | | 64 | |
| | | | | | | | |
| | 12.29 | | | | 16.27 | | | | 4,366 | | | | 0.60 | | | | 0.72 | | | | 0.60 | | | | 0.72 | | | | 1.19 | | | | 30 | |
| | | | | | | | |
| | 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 | |
| | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | |
| | 10.90 | | | | 37.35 | | | | 5,532 | | | | 0.93 | (p)* | | | 1.00 | (p)* | | | 0.91 | (p)* | | | 0.98 | (p)* | | | 0.91 | * | | | 57 | |
| | | | | | | | |
| | 8.68 | | | | (16.99 | ) | | | 3,900 | | | | 0.93 | | | | 1.03 | | | | 0.92 | | | | 1.02 | | | | 1.22 | | | | 202 | |
| | | | | | | | |
| | 10.60 | | | | (7.05 | ) | | | 4,023 | | | | 0.91 | | | | 1.02 | | | | 0.91 | | | | 1.02 | | | | 1.07 | | | | 64 | |
| | | | | | | | |
| | 12.24 | | | | 15.83 | | | | 4,875 | | | | 0.90 | | | | 1.02 | | | | 0.90 | | | | 1.02 | | | | 0.82 | | | | 30 | |
| | | | | | | | |
| | 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 | |
| | | | | | | | | | | | |
| | | | SEMIANNUAL REPORT | | | | | | | DECEMBER 31, 2020 | | | 27 |
| | | | | | |
| Statements of Assets and Liabilities | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | |
(Amounts in thousands†, except per share amounts) | | PIMCO
RAE Emerging
Markets Fund | | | PIMCO
RAE Global
Fund | | | PIMCO
RAE Global
ex-US Fund | | | PIMCO
RAE
International
Fund | | | PIMCO
RAE US Fund | | | PIMCO
RAE US Small
Fund | |
| | | | | | |
Assets: | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | |
Investments, at value | | | | | | | | | | | | | | | | | | | | | | | | |
Investments in securities*^ | | $ | 1,676,127 | | | $ | 0 | | | $ | 136 | | | $ | 1,092,835 | | | $ | 796,266 | | | $ | 551,872 | |
Investments in Affiliates | | | 46,417 | | | | 303,280 | | | | 80,694 | | | | 45,927 | | | | 14,270 | | | | 15,455 | |
Cash | | | 0 | | | | 0 | | | | 0 | | | | 1 | | | | 1 | | | | 1 | |
Foreign currency, at value | | | 5,725 | | | | 0 | | | | 0 | | | | 1,594 | | | | 0 | | | | 0 | |
Receivable for investments sold | | | 0 | | | | 0 | | | | 0 | | | | 218 | | | | 1,812 | | | | 1 | |
Receivable for investments in Affiliates Sold | | | 0 | | | | 5,992 | | | | 0 | | | | 0 | | | | 0 | | | | 0 | |
Receivable for Fund shares sold | | | 143 | | | | 0 | | | | 3 | | | | 46 | | | | 158 | | | | 1 | |
Interest and/or dividends receivable | | | 6,407 | | | | 0 | | | | 0 | | | | 3,296 | | | | 881 | | | | 586 | |
Reimbursement receivable from PIMCO | | | 0 | | | | 147 | | | | 40 | | | | 0 | | | | 0 | | | | 0 | |
Other assets | | | 1,136 | | | | 0 | | | | 0 | | | | 161 | | | | 0 | | | | 0 | |
Total Assets | | | 1,735,955 | | | | 309,419 | | | | 80,873 | | | | 1,144,078 | | | | 813,388 | | | | 567,916 | |
| | | | | | |
Liabilities: | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | |
Payable for investments purchased | | $ | 0 | | | $ | 0 | | | $ | 0 | | | $ | 1 | | | $ | 0 | | | $ | 7 | |
Payable upon return of securities loaned | | | 47,553 | | | | 0 | | | | 0 | | | | 46,075 | | | | 14,270 | | | | 15,455 | |
Payable for Fund shares redeemed | | | 2,507 | | | | 729 | | | | 11 | | | | 4,231 | | | | 2,781 | | | | 1 | |
Overdraft due to custodian | | | 0 | | | | 5,537 | | | | 0 | | | | 0 | | | | 0 | | | | 0 | |
Accrued investment advisory fees | | | 758 | | | | 106 | | | | 30 | | | | 306 | | | | 187 | | | | 167 | |
Accrued supervisory and administrative fees | | | 380 | | | | 45 | | | | 12 | | | | 204 | | | | 115 | | | | 73 | |
Accrued servicing fees | | | 2 | | | | 0 | | | | 3 | | | | 1 | | | | 2 | | | | 1 | |
Accrued taxes payable | | | 3,983 | | | | 0 | | | | 0 | | | | 0 | | | | 0 | | | | 0 | |
Accrued reimbursement to PIMCO | | | 7 | | | | 0 | | | | 0 | | | | 5 | | | | 4 | | | | 2 | |
Other liabilities | | | 6 | | | | 0 | | | | 0 | | | | 0 | | | | 0 | | | | 0 | |
Total Liabilities | | | 55,196 | | | | 6,417 | | | | 56 | | | | 50,823 | | | | 17,359 | | | | 15,706 | |
| | | | | | |
Net Assets | | $ | 1,680,759 | | | $ | 303,002 | | | $ | 80,817 | | | $ | 1,093,255 | | | $ | 796,029 | | | $ | 552,210 | |
| | | | | | |
Net Assets Consist of: | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | |
Paid in capital | | $ | 1,872,807 | | | $ | 256,811 | | | $ | 79,646 | | | $ | 892,546 | | | $ | 580,779 | | | $ | 431,825 | |
Distributable earnings (accumulated loss) | | | (192,048 | ) | | | 46,191 | | | | 1,171 | | | | 200,709 | | | | 215,250 | | | | 120,385 | |
| | | | | | |
Net Assets | | $ | 1,680,759 | | | $ | 303,002 | | | $ | 80,817 | | | $ | 1,093,255 | | | $ | 796,029 | | | $ | 552,210 | |
| | | | | | |
Cost of investments in securities | | $ | 1,266,214 | | | $ | 0 | | | $ | 136 | | | $ | 779,077 | | | $ | 565,686 | | | $ | 384,805 | |
Cost of investments in Affiliates | | $ | 46,417 | | | $ | 250,166 | | | $ | 75,564 | | | $ | 45,927 | | | $ | 14,270 | | | $ | 15,455 | |
Cost of foreign currency held | | $ | 5,725 | | | $ | 0 | | | $ | 0 | | | $ | 1,585 | | | $ | 0 | | | $ | 0 | |
| | | | | | |
* Includes repurchase agreements of: | | $ | 3,506 | | | $ | 0 | | | $ | 136 | | | $ | 1,829 | | | $ | 2,951 | | | $ | 2,376 | |
^ Includes securities on loan of: | | $ | 43,399 | | | $ | 0 | | | $ | 0 | | | $ | 41,532 | | | $ | 13,982 | | | $ | 15,136 | |
| † | A zero balance may reflect actual amounts rounding to less than one thousand. |
| | | | | | |
| 28 | | PIMCO EQUITY SERIES | | | See Accompanying Notes | |
| | | | | | |
| | | | December 31, 2020 | | (Unaudited) |
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | PIMCO
RAE Emerging
Markets Fund | | | PIMCO
RAE Global
Fund | | | PIMCO
RAE Global
ex-US Fund | | | PIMCO
RAE
International
Fund | | | PIMCO
RAE US Fund | | | PIMCO
RAE US Small
Fund | |
| | | | | | |
Net Assets: | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | |
Institutional Class | | $ | 1,667,053 | | | $ | 301,821 | | | $ | 67,549 | | | $ | 1,088,281 | | | $ | 767,306 | | | $ | 545,662 | |
I-2 | | | 2,787 | | | | 123 | | | | 5 | | | | 885 | | | | 20,382 | | | | 1,016 | |
Class A | | | 10,919 | | | | 1,058 | | | | 13,263 | | | | 4,089 | | | | 8,341 | | | | 5,532 | |
| | | | | | |
Shares Issued and Outstanding: | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | |
Institutional Class | | | 166,792 | | | | 29,086 | | | | 6,646 | | | | 109,420 | | | | 65,722 | | | | 49,271 | |
I-2 | | | 280 | | | | 12 | | | | 1 | | | | 89 | | | | 1,755 | | | | 92 | |
Class A | | | 1,104 | | | | 103 | | | | 1,322 | | | | 417 | | | | 728 | | | | 508 | |
| | | | | | |
Net Asset Value Per Share Outstanding(a): | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | |
Institutional Class | | $ | 9.99 | | | $ | 10.38 | | | $ | 10.16 | | | $ | 9.95 | | | $ | 11.67 | | | $ | 11.07 | |
I-2 | | | 9.96 | | | | 10.34 | | | | 10.19 | | | | 9.89 | | | | 11.61 | | | | 11.01 | |
Class A | | | 9.89 | | | | 10.24 | | | | 10.03 | | | | 9.82 | | | | 11.46 | | | | 10.90 | |
| (a) | Includes adjustments required by U.S. GAAP and may differ from net asset values and performance reported elsewhere by the Funds. |
| | | | | | | | | | | | |
| | | | SEMIANNUAL REPORT | | | | | | | DECEMBER 31, 2020 | | | 29 |
| | | | | | | | | | | | | | | | | | | | | | | | |
| Six Months Ended December 31, 2020 (Unaudited) | | | | | | | | | | | | | | | | | | |
| (Amounts in thousands†) | | PIMCO
RAE Emerging
Markets Fund | | | PIMCO
RAE Global
Fund | | | PIMCO
RAE Global
ex-US Fund | | | PIMCO
RAE
International
Fund | | | PIMCO
RAE US Fund | | | PIMCO
RAE US Small
Fund | |
| | | | | | |
Investment Income: | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | |
Dividends, net of foreign taxes* | | $ | 24,716 | | | $ | 0 | | | $ | 0 | | | $ | 12,364 | | | $ | 10,058 | | | $ | 3,623 | |
Dividends from Investments in Affiliates | | | 0 | | | | 6,779 | | | | 1,679 | | | | 0 | | | | 0 | | | | 0 | |
Securities lending income | | | 855 | | | | 0 | | | | 0 | | | | 788 | | | | 205 | | | | 215 | |
Total Income | | | 25,571 | | | | 6,779 | | | | 1,679 | | | | 13,152 | | | | 10,263 | | | | 3,838 | |
| | | | | | |
Expenses: | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | |
Investment advisory fees | | | 3,316 | | | | 578 | | | | 145 | | | | 1,539 | | | | 925 | | | | 724 | |
Supervisory and administrative fees | | | 2,445 | | | | 372 | | | | 107 | | | | 1,345 | | | | 803 | | | | 440 | |
Servicing fees - Class A | | | 11 | | | | 1 | | | | 16 | | | | 4 | | | | 10 | | | | 6 | |
Trustee fees | | | 59 | | | | 12 | | | | 3 | | | | 35 | | | | 27 | | | | 15 | |
Interest expense | | | 51 | | | | 1 | | | | 1 | | | | 10 | | | | 9 | | | | 51 | |
Miscellaneous expense | | | 49 | | | | 8 | | | | 2 | | | | 26 | | | | 18 | | | | 10 | |
Total Expenses | | | 5,931 | | | | 972 | | | | 274 | | | | 2,959 | | | | 1,792 | | | | 1,246 | |
Waiver and/or Reimbursement by PIMCO | | | (833 | ) | | | (942 | ) | | | (249 | ) | | | (349 | ) | | | (258 | ) | | | (140 | ) |
Net Expenses | | | 5,098 | | | | 30 | | | | 25 | | | | 2,610 | | | | 1,534 | | | | 1,106 | |
| | | | | | |
Net Investment Income (Loss) | | | 20,473 | | | | 6,749 | | | | 1,654 | | | | 10,542 | | | | 8,729 | | | | 2,732 | |
| | | | | | |
Net Realized Gain (Loss): | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | |
Investments in securities | | | (3,634 | ) | | | 0 | | | | 0 | | | | 30,810 | | | | 17,261 | | | | 28,145 | |
Investments in Affiliates | | | 0 | | | | 2,948 | | | | (320 | ) | | | 0 | | | | 0 | | | | 0 | |
Net capital gain distributions received from Affiliate investments | | | 0 | | | | 1,144 | | | | 0 | | | | 0 | | | | 0 | | | | 0 | |
Over the counter financial derivative instruments | | | (8 | ) | | | 0 | | | | 0 | | | | 13 | | | | 0 | | | | 0 | |
Foreign currency | | | (2,388 | ) | | | 0 | | | | 0 | | | | 269 | | | | 0 | | | | 0 | |
| | | | | | |
Net Realized Gain (Loss) | | | (6,030 | ) | | | 4,092 | | | | (320 | ) | | | 31,092 | | | | 17,261 | | | | 28,145 | |
| | | | | | |
Net Change in Unrealized Appreciation (Depreciation): | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | |
Investments in securities | | | 359,405 | | | | 0 | | | | 0 | | | | 197,340 | | | | 130,221 | | | | 93,780 | |
Investments in Affiliates | | | 0 | | | | 57,099 | | | | 15,740 | | | | 0 | | | | 0 | | | | 0 | |
Foreign currency assets and liabilities | | | 252 | | | | 0 | | | | 0 | | | | 130 | | | | 0 | | | | 0 | |
| | | | | | |
Net Change in Unrealized Appreciation (Depreciation) | | | 359,657 | | | | 57,099 | | | | 15,740 | | | | 197,470 | | | | 130,221 | | | | 93,780 | |
| | | | | | |
Net Increase (Decrease) in Net Assets Resulting from Operations | | $ | 374,100 | | | $ | 67,940 | | | $ | 17,074 | | | $ | 239,104 | | | $ | 156,211 | | | $ | 124,657 | |
| | | | | | |
* Foreign tax withholdings - Dividends | | $ | 4,237 | | | $ | 0 | | | $ | 0 | | | $ | 1,022 | | | $ | 0 | | | $ | 2 | |
| † | A zero balance may reflect actual amounts rounding to less than one thousand. |
| | | | | | |
| 30 | | PIMCO EQUITY SERIES | | | See Accompanying Notes | |
(THIS PAGE INTENTIONALLY LEFT BLANK)
| | | | | | | | | | | | |
| | | | SEMIANNUAL REPORT | | | | | | | DECEMBER 31, 2020 | | | 31 |
| | | | |
| Statements of Changes in Net Assets | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | PIMCO
RAE Emerging Markets Fund | | | PIMCO
RAE Global Fund | | | PIMCO
RAE Global ex-US Fund | |
| | | | | | |
| (Amounts in thousands†) | | Six Months Ended
December 31, 2020
(Unaudited) | | | Year Ended
June 30, 2020 | | | Six Months Ended
December 31, 2020
(Unaudited) | | | Year Ended
June 30, 2020 | | | Six Months Ended
December 31, 2020
(Unaudited) | | | Year Ended
June 30, 2020 | |
| | | | | | |
Increase (Decrease) in Net Assets from: | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | |
Operations: | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | |
Net investment income (loss) | | $ | 20,473 | | | $ | 69,889 | | | $ | 6,749 | | | $ | 10,707 | | | $ | 1,654 | | | $ | 3,082 | |
Net realized gain (loss) | | | (6,030 | ) | | | (540,887 | ) | | | 4,092 | | | | (6,820 | ) | | | (320 | ) | | | (3,004 | ) |
Net change in unrealized appreciation (depreciation) | | | 359,657 | | | | (216,265 | ) | | | 57,099 | | | | (37,695 | ) | | | 15,740 | | | | (11,704 | ) |
| | | | | | |
Net Increase (Decrease) in Net Assets Resulting from Operations | | | 374,100 | | | | (687,263 | ) | | | 67,940 | | | | (33,808 | ) | | | 17,074 | | | | (11,626 | ) |
| | | | | | |
Distributions to Shareholders: | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | |
From net investment income and/or net realized capital gains | | | | | | | | | | | | | | | | | | | | | | | | |
Institutional Class | | | (27,290 | ) | | | (84,783 | ) | | | (7,722 | ) | | | (21,865 | ) | | | (1,351 | ) | | | (4,610 | ) |
I-2 | | | (44 | ) | | | (93 | ) | | | (3 | ) | | | (15 | ) | | | (0 | ) | | | (10 | ) |
Class A | | | (166 | ) | | | (327 | ) | | | (25 | ) | | | (120 | ) | | | (249 | ) | | | (680 | ) |
| | | | | | |
Total Distributions(a) | | | (27,500 | ) | | | (85,203 | ) | | | (7,750 | ) | | | (22,000 | ) | | | (1,600 | ) | | | (5,300 | ) |
| | | | | | |
Fund Share Transactions: | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | |
Net increase (decrease) resulting from Fund share transactions* | | | 138,745 | | | | (697,563 | ) | | | (34,445 | ) | | | 38,778 | | | | 833 | | | | 3,343 | |
| | | | | | |
Total Increase (Decrease) in Net Assets | | | 485,345 | | | | (1,470,029 | ) | | | 25,745 | | | | (17,030 | ) | | | 16,307 | | | | (13,583 | ) |
| | | | | | |
Net Assets: | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | |
Beginning of period | | | 1,195,414 | | | | 2,665,443 | | | | 277,257 | | | | 294,287 | | | | 64,510 | | | | 78,093 | |
End of period | | $ | 1,680,759 | | | $ | 1,195,414 | | | $ | 303,002 | | | $ | 277,257 | | | $ | 80,817 | | | $ | 64,510 | |
| † | 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. |
| | | | | | |
| 32 | | PIMCO EQUITY SERIES | | | See Accompanying Notes | |
| | | | | | | | | | | | | | | | | | | | | | |
PIMCO
RAE International Fund | | | PIMCO
RAE US Fund | | | PIMCO
RAE US Small Fund | |
| | | | | |
Six Months Ended
December 31, 2020
(Unaudited) | | | Year Ended
June 30, 2020 | | | Six Months Ended
December 31, 2020
(Unaudited) | | | Year Ended
June 30, 2020 | | | Six Months Ended
December 31, 2020
(Unaudited) | | | Year Ended
June 30, 2020 | |
| | | | | |
| | | | | | | | | | | | | | | | | | | | | | |
| | | | | |
| | | | | | | | | | | | | | | | | | | | | | |
| | | | | |
| $ | 10,542 | | | $ | 15,651 | | | $ | 8,729 | | | $ | 18,762 | | | $ | 2,732 | | | $ | 3,123 | |
| | 31,092 | | | | (115,431 | ) | | | 17,261 | | | | (923 | ) | | | 28,145 | | | | (22,416 | ) |
| | 197,470 | | | | 83,132 | | | | 130,221 | | | | (74,120 | ) | | | 93,780 | | | | 56,991 | |
| | | | | |
| | 239,104 | | | | (16,648 | ) | | | 156,211 | | | | (56,281 | ) | | | 124,657 | | | | 37,698 | |
| | | | | |
| | | | | | | | | | | | | | | | | | | | | | |
| | | | | |
| | | | | | | | | | | | | | | | | | | | | | |
| | (24,393 | ) | | | (21,270 | ) | | | (24,300 | ) | | | (37,126 | ) | | | (47,735 | ) | | | (2,600 | ) |
| | (20 | ) | | | (46 | ) | | | (633 | ) | | | (1,094 | ) | | | (91 | ) | | | (39 | ) |
| | (87 | ) | | | (183 | ) | | | (247 | ) | | | (381 | ) | | | (476 | ) | | | (61 | ) |
| | | | | |
| | (24,500 | ) | | | (21,499 | ) | | | (25,180 | ) | | | (38,601 | ) | | | (48,302 | ) | | | (2,700 | ) |
| | | | | |
| | | | | | | | | | | | | | | | | | | | | | |
| | | | | |
| | 118,374 | | | | 245,513 | | | | 62,008 | | | | (70,323 | ) | | | 182,480 | | | | 132,566 | |
| | | | | |
| | 332,978 | | | | 207,366 | | | | 193,039 | | | | (165,205 | ) | | | 258,835 | | | | 167,564 | |
| | | | | |
| | | | | | | | | | | | | | | | | | | | | | |
| | | | | |
| | 760,277 | | | | 552,911 | | | | 602,990 | | | | 768,195 | | | | 293,375 | | | | 125,811 | |
| $ | 1,093,255 | | | $ | 760,277 | | | $ | 796,029 | | | $ | 602,990 | | | $ | 552,210 | | | $ | 293,375 | |
| | | | | | | | | | | | |
| | | | SEMIANNUAL REPORT | | | | | | | DECEMBER 31, 2020 | | | 33 |
| | | | | | | | |
| Schedule of Investments | | PIMCO RAE Emerging Markets Fund | | | | | | |
(Amounts in thousands*, except number of shares, contracts, units and ounces, if any)
| | | | | | | | | | | | |
| | | | | SHARES | | | | | MARKET
VALUE
(000S) | |
| INVESTMENTS IN SECURITIES 99.7% | |
| |
| COMMON STOCKS 95.3% | |
| |
| AUSTRALIA 0.0% | |
| |
| MATERIALS 0.0% | |
| | | | |
MMG Ltd. (a) | | | | | 1,564,000 | | | $ | | | 681 | |
| | | | | | | | | | | | |
Total Australia | | | | | | | | | | | 681 | |
| | | | | | | | | | | | |
| |
| BRAZIL 3.9% | |
| |
| COMMUNICATION SERVICES 0.6% | |
| | | | |
Telefonica Brasil S.A. | | | | | 804,900 | | | | | | 7,237 | |
| | | | |
TIM S.A. | | | | | 683,000 | | | | | | 1,935 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 9,172 | |
| | | | | | | | | | | | |
| |
| CONSUMER DISCRETIONARY 0.1% | |
| | | | |
Cogna Educacao (a) | | | | | 215,600 | | | | | | 193 | |
| | | | |
Cyrela Brazil Realty S.A. Empreendimentos e Participacoes | | | | | 58,800 | | | | | | 335 | |
| | | | |
Guararapes Confeccoes S.A. | | | | | 59,200 | | | | | | 170 | |
| | | | |
MRV Engenharia e Participacoes S.A. | | | | | 81,200 | | | | | | 298 | |
| | | | |
Via Varejo S.A. (a) | | | | | 238,900 | | | | | | 744 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 1,740 | |
| | | | | | | | | | | | |
| |
| CONSUMER STAPLES 0.3% | |
| | | | |
Ambev S.A. | | | | | 411,500 | | | | | | 1,244 | |
| | | | |
BRF S.A. (a) | | | | | 302,100 | | | | | | 1,286 | |
| | | | |
JBS S.A. | | | | | 389,100 | | | | | | 1,773 | |
| | | | |
Marfrig Global Foods S.A. (a) | | | | | 234,200 | | | | | | 654 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 4,957 | |
| | | | | | | | | | | | |
| |
| ENERGY 0.4% | |
| | | | |
Cosan Ltd. ‘A’ | | | | | 51,107 | | | | | | 942 | |
| | | | |
Cosan S.A. | | | | | 28,700 | | | | | | 419 | |
| | | | |
Ultrapar Participacoes S.A. | | | | | 1,338,300 | | | | | | 6,126 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 7,487 | |
| | | | | | | | | | | | |
| |
| FINANCIALS 0.9% | |
| | | | |
Banco BTG Pactual S.A. | | | | | 13,800 | | | | | | 249 | |
| | | | |
Banco do Brasil S.A. | | | | | 1,784,200 | | | | | | 13,413 | |
| | | | |
Banco Santander Brasil S.A. | | | | | 58,900 | | | | | | 512 | |
| | | | |
Porto Seguro S.A. | | | | | 98,300 | | | | | | 929 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 15,103 | |
| | | | | | | | | | | | |
| |
| HEALTH CARE 0.1% | |
| | | | |
Hypera S.A. | | | | | 187,300 | | | | | | 1,239 | |
| | | | | | | | | | | | |
| |
| INDUSTRIALS 0.0% | |
| | | | |
CCR S.A. | | | | | 135,600 | | | | | | 353 | |
| | | | |
Embraer S.A. (a) | | | | | 159,200 | | | | | | 271 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 624 | |
| | | | | | | | | | | | |
| |
| INFORMATION TECHNOLOGY 0.3% | |
| | | | |
Cielo S.A. | | | | | 6,023,100 | | | | | | 4,655 | |
| | | | | | | | | | | | |
| |
| MATERIALS 1.0% | |
| | | | |
Cia Siderurgica Nacional S.A. | | | | | 293,049 | | | | | | 1,805 | |
| | | | |
Nexa Resources S.A. (c) | | | | | 69,840 | | | | | | 673 | |
| | | | |
Vale S.A. | | | | | 845,039 | | | | | | 14,223 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 16,701 | |
| | | | | | | | | | | | |
| | | | | | | | | | | | |
| | | | | SHARES | | | | | MARKET
VALUE
(000S) | |
| UTILITIES 0.2% | |
| | | | |
AES Tiete Energia S.A. | | | | | 135,589 | | | $ | | | 431 | |
| | | | |
Centrais Eletricas Brasileiras S.A. | | | | | 42,200 | | | | | | 300 | |
| | | | |
Cia de Saneamento Basico do Estado de Sao Paulo | | | | | 138,100 | | | | | | 1,191 | |
| | | | |
Cia de Saneamento de Minas Gerais-COPASA | | | | | 66,300 | | | | | | 210 | |
| | | | |
Cia de Saneamento do Parana | | | | | 101,900 | | | | | | 512 | |
| | | | |
EDP - Energias do Brasil S.A. | | | | | 95,200 | | | | | | 362 | |
| | | | |
Light S.A. | | | | | 61,800 | | | | | | 293 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 3,299 | |
| | | | | | | | | | | | |
Total Brazil | | | | | | | | | | | 64,977 | |
| | | | | | | | | | | | |
| |
| CHILE 0.6% | |
| |
| CONSUMER DISCRETIONARY 0.0% | |
| | | | |
Falabella S.A. | | | | | 148,608 | | | | | | 550 | |
| | | | | | | | | | | | |
| |
| CONSUMER STAPLES 0.2% | |
| | | | |
Cencosud S.A. | | | | | 1,330,867 | | | | | | 2,372 | |
| | | | |
Cia Cervecerias Unidas S.A. | | | | | 28,720 | | | | | | 212 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 2,584 | |
| | | | | | | | | | | | |
| |
| FINANCIALS 0.1% | |
| | | | |
Banco de Chile | | | | | 6,949,349 | | | | | | 709 | |
| | | | |
Banco de Credito e Inversiones | | | | | 8,909 | | | | | | 350 | |
| | | | |
Banco Santander Chile | | | | | 9,424,420 | | | | | | 452 | |
| | | | |
Itau CorpBanca Chile S.A. | | | | | 58,294,543 | | | | | | 196 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 1,707 | |
| | | | | | | | | | | | |
| |
| MATERIALS 0.1% | |
| | | | |
CAP S.A. | | | | | 149,338 | | | | | | 2,006 | |
| | | | | | | | | | | | |
| |
| UTILITIES 0.2% | |
| | | | |
AES Gener S.A. | | | | | 5,106,744 | | | | | | 847 | |
| | | | |
Aguas Andinas S.A. ‘A’ | | | | | 714,688 | | | | | | 230 | |
| | | | |
Colbun S.A. | | | | | 2,450,434 | | | | | | 433 | |
| | | | |
Enel Americas S.A. | | | | | 9,144,920 | | | | | | 1,491 | |
| | | | |
Engie Energia Chile S.A. | | | | | 384,234 | | | | | | 471 | |
| | | | |
Inversiones Aguas Metropolitanas S.A. | | | | | 339,607 | | | | | | 282 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 3,754 | |
| | | | | | | | | | | | |
Total Chile | | | | | | | | | | | 10,601 | |
| | | | | | | | | | | | |
| |
| CHINA 15.2% | |
| |
| COMMUNICATION SERVICES 0.3% | |
| | | | |
China Telecom Corp. Ltd. ‘H’ | | | | | 18,318,000 | | | | | | 5,053 | |
| | | | |
Sohu.com Ltd. ADR (a) | | | | | 55,093 | | | | | | 878 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 5,931 | |
| | | | | | | | | | | | |
| |
| CONSUMER DISCRETIONARY 1.0% | |
| | | | |
BAIC Motor Corp. Ltd. ‘H’ | | | | | 4,363,500 | | | | | | 1,619 | |
| | | | |
China Yongda Automobiles Services Holdings Ltd. | | | | | 1,441,000 | | | | | | 2,390 | |
| | | | |
China ZhengTong Auto Services Holdings Ltd. | | | | | 919,500 | | | | | | 102 | |
| | | | |
Dongfeng Motor Group Co. Ltd. ‘H’ | | | | | 1,434,000 | | | | | | 1,676 | |
| | | | |
GOME Retail Holdings Ltd. (a)(c) | | | | | 19,977,000 | | | | | | 2,399 | |
| | | | |
Great Wall Motor Co. Ltd. ‘H’ | | | | | 1,208,000 | | | | | | 4,156 | |
| | | | |
Shanghai Jin Jiang Capital Co. Ltd. | | | | | 2,584,000 | | | | | | 397 | |
| | | | |
Vipshop Holdings Ltd. ADR (a) | | | | | 128,300 | | | | | | 3,606 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 16,345 | |
| | | | | | | | | | | | |
| | | | | | | | | | | | |
| | | | | SHARES | | | | | MARKET
VALUE
(000S) | |
| CONSUMER STAPLES 0.1% | |
| | | | |
Hengan International Group Co. Ltd. | | | | | 143,000 | | | $ | | | 1,013 | |
| | | | |
Tingyi Cayman Islands Holding Corp. | | | | | 802,000 | | | | | | 1,372 | |
| | | |
Want Want China Holdings Ltd. | | | 201,000 | | | | | | 145 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 2,530 | |
| | | | | | | | | | | | |
| |
| ENERGY 1.7% | |
| | | | |
China Petroleum & Chemical Corp. ‘H’ | | | | | 50,604,400 | | | | | | 22,536 | |
| | | | |
China Shenhua Energy Co. Ltd. ‘H’ | | | | | 2,622,500 | | | | | | 4,944 | |
| | | | |
CNOOC Ltd. | | | | | 464,000 | | | | | | 426 | |
| | | | |
PetroChina Co. Ltd. ‘H’ | | | | | 4,684,000 | | | | | | 1,450 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 29,356 | |
| | | | | | | | | | | | |
| |
| FINANCIALS 7.6% | |
| | | | |
Agricultural Bank of China Ltd. ‘H’ | | | | | 12,010,000 | | | | | | 4,398 | |
| | | | |
Bank of China Ltd. ‘H’ | | | | | 68,160,000 | | | | | | 23,069 | |
| | | | |
Bank of Communications Co. Ltd. ‘H’ | | | | | 10,341,000 | | | | | | 5,470 | |
| | | | |
China Cinda Asset Management Co. Ltd. ‘H’ | | | | | 17,101,000 | | | | | | 3,245 | |
| | | | |
China CITIC Bank Corp. Ltd. ‘H’ | | | | | 3,090,000 | | | | | | 1,313 | |
| | | | |
China Construction Bank Corp. ‘H’ | | | | | 67,158,000 | | | | | | 50,656 | |
| | | | |
China Everbright Bank Co. Ltd. ‘H’ | | | | | 2,543,000 | | | | | | 970 | |
| | | | |
China Huarong Asset Management Co. Ltd. ‘H’ | | | | | 18,765,000 | | | | | | 2,083 | |
| | | | |
China Life Insurance Co. Ltd. ‘H’ | | | | | 116,000 | | | | | | 255 | |
| | | | |
China Merchants Bank Co. Ltd. ‘H’ | | | | | 160,500 | | | | | | 1,015 | |
| | | | |
China Minsheng Banking Corp. Ltd. ‘H’ | | | | | 9,342,920 | | | | | | 5,326 | |
| | | | |
Chongqing Rural Commercial Bank Co. Ltd. ‘H’ | | | | | 3,574,000 | | | | | | 1,458 | |
| | | | |
Industrial & Commercial Bank of China Ltd. ‘H’ | | | | | 38,798,000 | | | | | | 24,927 | |
| | | | |
PICC Property & Casualty Co. Ltd. ‘H’ | | | | | 1,866,000 | | | | | | 1,412 | |
| | | | |
Ping An Insurance Group Co. of China Ltd. ‘H’ | | | | | 104,500 | | | | | | 1,272 | |
| | | | |
Postal Savings Bank of China Co. Ltd. ‘H’ | | | | | 1,551,000 | | | | | | 876 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 127,745 | |
| | | | | | | | | | | | |
| |
| HEALTH CARE 0.2% | |
| | | | |
China Resources Pharmaceutical Group Ltd. | | | | | 3,403,000 | | | | | | 1,750 | |
| | | | |
Sihuan Pharmaceutical Holdings Group Ltd. | | | | | 3,024,000 | | | | | | 319 | |
| | | | |
Sinopharm Group Co. Ltd. ‘H’ | | | | | 377,200 | | | | | | 915 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 2,984 | |
| | | | | | | | | | | | |
| |
| INDUSTRIALS 1.0% | |
| | | | |
Air China Ltd. ‘H’ | | | | | 1,008,000 | | | | | | 795 | |
| | | | |
Beijing Capital International Airport Co. Ltd. ‘H’ | | | | | 292,000 | | | | | | 244 | |
| | | | |
China Communications Services Corp. Ltd. ‘H’ | | | | | 2,970,000 | | | | | | 1,312 | |
| | | | |
China Eastern Airlines Corp. Ltd. ‘H’ | | | | | 686,000 | | | | | | 297 | |
| | | | |
China International Marine Containers Group Co. Ltd. ‘H’ | | | | | 416,700 | | | | | | 607 | |
| | | | | | |
| 34 | | PIMCO EQUITY SERIES | | | See Accompanying Notes | |
| | | | | | | | |
| | | | | | December 31, 2020 | | (Unaudited) |
| | | | | | | | | | | | |
| | | | | SHARES | | | | | MARKET
VALUE
(000S) | |
| | | | |
China Lesso Group Holdings Ltd. ‘L’ | | | | | 1,061,000 | | | $ | | | 1,662 | |
| | | | |
China Machinery Engineering Corp. ‘H’ | | | | | 349,000 | | | | | | 92 | |
| | | | |
China Railway Group Ltd. ‘H’ | | | | | 644,000 | | | | | | 284 | |
| | | | |
China Southern Airlines Co. Ltd. ‘H’ | | | | | 582,000 | | | | | | 348 | |
| | | | |
CITIC Ltd. | | | | | 6,731,000 | | | | | | 4,766 | |
| | | | |
Fosun International Ltd. | | | | | 504,500 | | | | | | 792 | |
| | | | |
Guangshen Railway Co. Ltd. ‘H’ | | | | | 1,442,000 | | | | | | 261 | |
| | | | |
Metallurgical Corp. of China Ltd. | | | | | 1,293,000 | | | | | | 229 | |
| | | | |
Shenzhen Expressway Co. Ltd. ‘H’ | | | | | 148,000 | | | | | | 139 | |
| | | | |
Sinopec Engineering Group Co. Ltd. ‘H’ | | | | | 1,920,000 | | | | | | 829 | |
| | | | |
Sinotruk Hong Kong Ltd. | | | | | 482,500 | | | | | | 1,236 | |
| | | | |
Weichai Power Co. Ltd. ‘H’ | | | | | 523,000 | | | | | | 1,052 | |
| | | | |
Yangzijiang Shipbuilding Holdings Ltd. | | | | | 315,600 | | | | | | 228 | |
| | | | |
Zall Smart Commerce Group Ltd. (a)(c) | | | | | 3,141,000 | | | | | | 288 | |
| | | | |
Zhejiang Expressway Co. Ltd. ‘H’ | | | | | 962,000 | | | | | | 813 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 16,274 | |
| | | | | | | | | | | | |
| |
| INFORMATION TECHNOLOGY 1.4% | |
| | | | |
AAC Technologies Holdings, Inc. | | | | | 504,000 | | | | | | 2,794 | |
| | | | |
BYD Electronic International Co. Ltd. (c) | | | | | 786,000 | | | | | | 4,123 | |
| | | | |
FIH Mobile Ltd. (a)(c) | | | | | 8,118,000 | | | | | | 996 | |
| | | | |
Lenovo Group Ltd. | | | | | 16,188,000 | | | | | | 15,304 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 23,217 | |
| | | | | | | | | | | | |
| |
| MATERIALS 0.7% | |
| | | | |
Angang Steel Co. Ltd. ‘H’ (c) | | | | | 5,008,000 | | | | | | 2,044 | |
| | | | |
China BlueChemical Ltd. ‘H’ | | | | | 818,000 | | | | | | 130 | |
| | | | |
China Hongqiao Group Ltd. | | | | | 1,058,500 | | | | | | 970 | |
| | | | |
China National Building Material Co. Ltd. ‘H’ | | | | | 6,659,400 | | | | | | 8,016 | |
| | | | |
China Oriental Group Co. Ltd. | | | | | 402,000 | | | | | | 107 | |
| | | | |
China Zhongwang Holdings Ltd. | | | | | 485,600 | | | | | | 92 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 11,359 | |
| | | | | | | | | | | | |
| |
| REAL ESTATE 1.1% | |
| | | | |
Agile Group Holdings Ltd. | | | | | 684,000 | | | | | | 910 | |
| | | | |
Beijing Capital Land Ltd. ‘H’ | | | | | 2,270,000 | | | | | | 384 | |
| | | | |
Beijing North Star Co. Ltd. ‘H’ | | | | | 570,000 | | | | | | 107 | |
| | | | |
China Evergrande Group (c) | | | | | 1,956,000 | | | | | | 3,760 | |
| | | | |
China SCE Group Holdings Ltd. | | | | | 805,000 | | | | | | 332 | |
| | | | |
China Vanke Co. Ltd. ‘H’ | | | | | 137,500 | | | | | | 475 | |
| | | | |
Country Garden Holdings Co. Ltd. | | | | | 259,000 | | | | | | 357 | |
| | | | |
Fantasia Holdings Group Co. Ltd. | | | | | 790,500 | | | | | | 138 | |
| | | | |
Greentown China Holdings Ltd. | | | | | 1,080,500 | | | | | | 1,578 | |
| | | | |
Guangzhou R&F Properties Co. Ltd. ‘H’ | | | | | 2,042,600 | | | | | | 2,631 | |
| | | | |
Kaisa Group Holdings Ltd. | | | | | 2,578,000 | | | | | | 1,275 | |
| | | | |
KWG Living Group Holdings Ltd. (a) | | | | | 663,250 | | | | | | 539 | |
| | | | |
KWG Property Holding Ltd. | | | | | 1,326,500 | | | | | | 1,812 | |
| | | | |
Longfor Group Holdings Ltd. | | | | | 66,500 | | | | | | 389 | |
| | | | |
Powerlong Real Estate Holdings Ltd. | | | | | 1,700,000 | | | | | | 1,175 | |
| | | | |
Shui On Land Ltd. | | | | | 7,272,500 | | | | | | 1,013 | |
| | | | |
Sino-Ocean Group Holding Ltd. | | | | | 3,019,000 | | | | | | 603 | |
| | | | | | | | | | | | |
| | | | | SHARES | | | | | MARKET
VALUE
(000S) | |
| | | | |
SOHO China Ltd. (c) | | | | | 2,832,000 | | | $ | | | 842 | |
| | | | |
Times China Holdings Ltd. | | | | | 105,000 | | | | | | 146 | |
| | | | |
Yuzhou Properties Co. Ltd. | | | | | 717,000 | | | | | | 259 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 18,725 | |
| | | | | | | | | | | | |
| |
| UTILITIES 0.1% | |
| | | | |
China Longyuan Power Group Corp. Ltd. ‘H’ | | | | | 871,000 | | | | | | 876 | |
| | | | |
Datang International Power Generation Co. Ltd. ‘H’ (c) | | | | | 1,450,000 | | | | | | 187 | |
| | | | |
Huadian Power International Corp. Ltd. ‘H’ | | | | | 938,000 | | | | | | 236 | |
| | | | |
Huaneng Power International, Inc. ‘H’ | | | | | 1,090,000 | | | | | | 398 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 1,697 | |
| | | | | | | | | | | | |
Total China | | | | | | | | | | | 256,163 | |
| | | | | | | | | | | | |
| |
| GREECE 1.0% | |
| |
| COMMUNICATION SERVICES 0.1% | |
| | | | |
Hellenic Telecommunications Organization S.A. | | | | | 104,564 | | | | | | 1,681 | |
| | | | | | | | | | | | |
| |
| CONSUMER DISCRETIONARY 0.1% | |
| | | | |
OPAP S.A. | | | | | 74,277 | | | | | | 993 | |
| | | | | | | | | | | | |
| |
| ENERGY 0.0% | |
| | | | |
Motor Oil Hellas Corinth Refineries S.A. | | | | | 28,306 | | | | | | 407 | |
| | | | | | | | | | | | |
| |
| FINANCIALS 0.5% | |
| | | | |
Alpha Bank AE (a) | | | | | 2,922,334 | | | | | | 3,385 | |
| | | | |
Eurobank Ergasias S.A. (a) | | | | | 1,079,280 | | | | | | 758 | |
| | | | |
National Bank of Greece S.A. (a) | | | | | 885,528 | | | | | | 2,424 | |
| | | | |
Piraeus Bank S.A. (a)(c) | | | | | 1,177,767 | | | | | | 1,847 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 8,414 | |
| | | | | | | | | | | | |
| |
| UTILITIES 0.3% | |
| | | | |
Public Power Corp. S.A. (a)(c) | | | | | 546,203 | | | | | | 4,960 | |
| | | | | | | | | | | | |
Total Greece | | | | | | | | | | | 16,455 | |
| | | | | | | | | | | | |
| |
| HONG KONG 2.3% | |
| |
| COMMUNICATION SERVICES 0.9% | |
| | | | |
China Mobile Ltd. | | | | | 2,066,500 | | | | | | 11,780 | |
| | | | |
China Unicom Hong Kong Ltd. | | | | | 6,178,000 | | | | | | 3,524 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 15,304 | |
| | | | | | | | | | | | |
| |
| CONSUMER DISCRETIONARY 0.0% | |
| | | | |
China Travel International Investment Hong Kong Ltd. | | | | | 1,274,000 | | | | | | 174 | |
| | | | | | | | | | | | |
| |
| FINANCIALS 0.4% | |
| | | | |
BOC Hong Kong Holdings Ltd. | | | | | 375,500 | | | | | | 1,138 | |
| | | | |
China Everbright Ltd. | | | | | 1,556,000 | | | | | | 2,084 | |
| | | | |
China Taiping Insurance Holdings Co. Ltd. | | | | | 1,484,200 | | | | | | 2,678 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 5,900 | |
| | | | | | | | | | | | |
| |
| INDUSTRIALS 0.1% | |
| | | | |
China Merchants Port Holdings Co. Ltd. | | | | | 348,000 | | | | | | 426 | |
| | | | |
COSCO SHIPPING Ports Ltd. | | | | | 980,000 | | | | | | 682 | |
| | | | | | | | | | | | |
| | | | | SHARES | | | | | MARKET
VALUE
(000S) | |
| | | | |
Shanghai Industrial Holdings Ltd. | | | | | 668,000 | | | $ | | | 913 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 2,021 | |
| | | | | | | | | | | | |
| |
| MATERIALS 0.1% | |
| | | | |
China Resources Cement Holdings Ltd. | | | | | 834,000 | | | | | | 932 | |
| | | | | | | | | | | | |
| |
| REAL ESTATE 0.5% | |
| | | | |
China Jinmao Holdings Group Ltd. | | | | | 500,000 | | | | | | 230 | |
| | | | |
China Overseas Grand Oceans Group Ltd. | | | | | 588,000 | | | | | | 315 | |
| | | | |
China Overseas Land & Investment Ltd. | | | | | 1,180,000 | | | | | | 2,563 | |
| | | | |
China Resources Land Ltd. | | | | | 602,000 | | | | | | 2,481 | |
| | | | |
Poly Property Group Co. Ltd. | | | | | 2,297,000 | | | | | | 672 | |
| | | | |
Shenzhen Investment Ltd. | | | | | 3,208,000 | | | | | | 1,101 | |
| | | | |
Yuexiu Property Co. Ltd. | | | | | 8,552,000 | | | | | | 1,721 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 9,083 | |
| | | | | | | | | | | | |
| |
| UTILITIES 0.3% | |
| | | | |
Beijing Enterprises Holdings Ltd. | | | | | 112,000 | | | | | | 366 | |
| | | | |
China Power International Development Ltd. | | | | | 2,909,000 | | | | | | 623 | |
| | | | |
China Resources Power Holdings Co. Ltd. | | | | | 4,260,000 | | | | | | 4,586 | |
| | | | |
Kunlun Energy Co. Ltd. | | | | | 126,000 | | | | | | 109 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 5,684 | |
| | | | | | | | | | | | |
Total Hong Kong | | | | | | | | | | | 39,098 | |
| | | | | | | | | | | | |
| |
| INDIA 15.1% | |
| |
| COMMUNICATION SERVICES 0.2% | |
| | | | |
Bharti Airtel Ltd. | | | | | 105,673 | | | | | | 738 | |
| | | | |
Indus Towers Ltd. | | | | | 139,330 | | | | | | 440 | |
| | | | |
Vodafone Idea Ltd. (a) | | | | | 14,327,154 | | | | | | 2,094 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 3,272 | |
| | | | | | | | | | | | |
| |
| CONSUMER DISCRETIONARY 4.0% | |
| | | | |
Apollo Tyres Ltd. | | | | | 132,570 | | | | | | 324 | |
| | | | |
Bosch Ltd. | | | | | 6,270 | | | | | | 1,099 | |
| | | | |
Hero MotoCorp Ltd. | | | | | 183,571 | | | | | | 7,823 | |
| | | | |
Mahindra & Mahindra Ltd. | | | | | 127,050 | | | | | | 1,256 | |
| | | | |
Motherson Sumi Systems Ltd. | | | | | 913,264 | | | | | | 2,072 | |
| | | | |
Tata Motors Ltd. (a) | | | | | 21,627,831 | | | | | | 54,567 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 67,141 | |
| | | | | | | | | | | | |
| |
| CONSUMER STAPLES 0.0% | |
| | | | |
Tata Consumer Products Ltd. | | | | | 38,164 | | | | | | 309 | |
| | | | | | | | | | | | |
| |
| ENERGY 2.7% | |
| | | | |
Bharat Petroleum Corp. Ltd. | | | | | 2,250,417 | | | | | | 11,753 | |
| | | | |
Coal India Ltd. | | | | | 2,907,076 | | | | | | 5,404 | |
| | | | |
Hindustan Petroleum Corp. Ltd. | | | | | 885,296 | | | | | | 2,642 | |
| | | | |
Indian Oil Corp. Ltd. | | | | | 8,114,516 | | | | | | 10,112 | |
| | | | |
Mangalore Refinery & Petrochemicals Ltd. (a) | | | | | 227,950 | | | | | | 111 | |
| | | | |
Oil & Natural Gas Corp. Ltd. | | | | | 9,869,945 | | | | | | 12,592 | |
| | | | |
Oil India Ltd. | | | | | 1,161,466 | | | | | | 1,711 | |
| | | | |
Petronet LNG Ltd. | | | | | 502,598 | | | | | | 1,704 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 46,029 | |
| | | | | | | | | | | | |
| |
| | | | | | | | | | | | |
| See Accompanying Notes | | | SEMIANNUAL REPORT | | | | | | | DECEMBER 31, 2020 | | | 35 |
| | | | | | | | |
| Schedule of Investments | | PIMCO RAE Emerging Markets Fund | | (Cont.) | | | | |
| | | | | | | | | | | | |
| | | | | SHARES | | | | | MARKET
VALUE
(000S) | |
| FINANCIALS 2.2% | |
| | | | |
Axis Bank Ltd. | | | | | 35,720 | | | $ | | | 304 | |
| | | | |
Bank of Baroda (a) | | | | | 1,217,279 | | | | | | 1,025 | |
| | | | |
Bank of India (a) | | | | | 503,099 | | | | | | 336 | |
| | | | |
Canara Bank (a) | | | | | 893,411 | | | | | | 1,580 | |
| | | | |
General Insurance Corp. of India (a) | | | | | 39,714 | | | | | | 76 | |
| | | | |
ICICI Bank Ltd. | | | | | 428,880 | | | | | | 3,154 | |
| | | | |
IDFC Ltd. (a) | | | | | 3,545,688 | | | | | | 1,798 | |
| | | | |
Indiabulls Housing Finance Ltd. ‘L’ | | | | | 3,627,569 | | | | | | 10,947 | |
| | | | |
Indian Bank (a) | | | | | 227,640 | | | | | | 267 | |
| | | | |
LIC Housing Finance Ltd. | | | | | 47,000 | | | | | | 233 | |
| | | | |
Power Finance Corp. Ltd. | | | | | 2,526,530 | | | | | | 3,955 | |
| | | | |
Punjab National Bank (a) | | | | | 1,434,096 | | | | | | 650 | |
| | | | |
REC Ltd. | | | | | 2,164,381 | | | | | | 3,971 | |
| | | | |
Shriram Transport Finance Co. Ltd. | | | | | 135,274 | | | | | | 1,939 | |
| | | | |
State Bank of India (a) | | | | | 1,258,864 | | | | | | 4,747 | |
| | | | |
Union Bank of India | | | | | 1,972,622 | | | | | | 853 | |
| | | | |
Yes Bank Ltd. «(a) | | | | | 3,406,176 | | | | | | 666 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 36,501 | |
| | | | | | | | | | | | |
| |
| HEALTH CARE 0.5% | |
| | | | |
Dr Reddy’s Laboratories Ltd. | | | | | 68,801 | | | | | | 4,898 | |
| | | | |
Sun Pharmaceutical Industries Ltd. | | | | | 371,097 | | | | | | 3,013 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 7,911 | |
| | | | | | | | | | | | |
| |
| INDUSTRIALS 0.3% | |
| | | | |
Adani Enterprises Ltd. | | | | | 120,780 | | | | | | 795 | |
| | | | |
Bharat Electronics Ltd. | | | | | 398,628 | | | | | | 656 | |
| | | | |
Bharat Heavy Electricals Ltd. | | | | | 6,065,166 | | | | | | 2,986 | |
| | | | |
Larsen & Toubro Ltd. | | | | | 23,740 | | | | | | 419 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 4,856 | |
| | | | | | | | | | | | |
| |
| INFORMATION TECHNOLOGY 0.3% | |
| | | | |
HCL Technologies Ltd. | | | | | 24,972 | | | | | | 324 | |
| | | | |
Infosys Ltd. | | | | | 117,130 | | | | | | 2,008 | |
| | | | |
Oracle Financial Services Software Ltd. | | | | | 9,560 | | | | | | 421 | |
| | | | |
Redington India Ltd. | | | | | 236,450 | | | | | | 429 | |
| | | | |
Wipro Ltd. | | | | | 211,227 | | | | | | 1,119 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 4,301 | |
| | | | | | | | | | | | |
| |
| MATERIALS 4.6% | |
| | | | |
Grasim Industries Ltd. | | | | | 26,723 | | | | | | 340 | |
| | | | |
Hindalco Industries Ltd. | | | | | 2,352,173 | | | | | | 7,771 | |
| | | | |
Hindustan Zinc Ltd. | | | | | 131,584 | | | | | | 431 | |
| | | | |
Jindal Steel & Power Ltd. (a) | | | | | 2,806,628 | | | | | | 10,276 | |
| | | | |
JSW Steel Ltd. | | | | | 1,080,788 | | | | | | 5,744 | |
| | | | |
National Aluminium Co. Ltd. | | | | | 7,368,300 | | | | | | 4,354 | |
| | | | |
NMDC Ltd. | | | | | 2,104,451 | | | | | | 3,305 | |
| | | | |
Steel Authority of India Ltd. (a) | | | | | 4,916,447 | | | | | | 5,003 | |
| | | | |
Tata Chemicals Ltd. | | | | | 154,765 | | | | | | 1,013 | |
| | | | |
Tata Steel Ltd. | | | | | 2,056,286 | | | | | | 18,167 | |
| | | | |
Vedanta Ltd. | | | | | 9,644,202 | | | | | | 21,365 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 77,769 | |
| | | | | | | | | | | | |
| |
| UTILITIES 0.3% | |
| | | | |
Adani Power Ltd. (a) | | | | | 528,500 | | | | | | 360 | |
| | | | |
GAIL India Ltd. | | | | | 170,431 | | | | | | 288 | |
| | | | |
NHPC Ltd. | | | | | 784,142 | | | | | | 243 | |
| | | | | | | | | | | | |
| | | | | SHARES | | | | | MARKET
VALUE
(000S) | |
| | | | |
NTPC Ltd. | | | | | 538,112 | | | $ | | | 733 | |
| | | | |
Power Grid Corp. of India Ltd. | | | | | 157,368 | | | | | | 409 | |
| | | | |
Reliance Infrastructure Ltd. (a) | | | | | 883,498 | | | | | | 324 | |
| | | | |
Tata Power Co. Ltd. | | | | | 2,544,345 | | | | | | 2,637 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 4,994 | |
| | | | | | | | | | | | |
Total India | | | | | | | | | | | 253,083 | |
| | | | | | | | | | | | |
| |
| INDONESIA 0.9% | |
| |
| COMMUNICATION SERVICES 0.2% | |
| | | | |
Telkom Indonesia Persero Tbk PT | | | | | 11,615,400 | | | | | | 2,739 | |
| | | | |
XL Axiata Tbk PT | | | | | 1,357,900 | | | | | | 264 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 3,003 | |
| | | | | | | | | | | | |
| |
| CONSUMER DISCRETIONARY 0.0% | |
| | | | |
Astra International Tbk PT | | | | | 1,299,600 | | | | | | 558 | |
| | | | | | | | | | | | |
| |
| CONSUMER STAPLES 0.1% | |
| | | | |
Hanjaya Mandala Sampoerna Tbk PT | | | | | 2,757,600 | | | | | | 296 | |
| | | | |
Indofood Sukses Makmur Tbk PT | | | | | 918,700 | | | | | | 448 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 744 | |
| | | | | | | | | | | | |
| |
| ENERGY 0.2% | |
| | | | |
Adaro Energy Tbk PT | | | | | 17,783,100 | | | | | | 1,812 | |
| | | | |
Indo Tambangraya Megah Tbk PT | | | | | 1,297,400 | | | | | | 1,281 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 3,093 | |
| | | | | | | | | | | | |
| |
| FINANCIALS 0.2% | |
| | | | |
Bank Mandiri Persero Tbk PT | | | | | 2,975,900 | | | | | | 1,343 | |
| | | | |
Bank Negara Indonesia Persero Tbk PT | | | | | 2,116,500 | | | | | | 932 | |
| | | | |
Bank Rakyat Indonesia Persero Tbk PT | | | | | 3,742,300 | | | | | | 1,113 | |
| | | | |
Bank Tabungan Negara Persero Tbk PT | | | | | 1,712,500 | | | | | | 210 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 3,598 | |
| | | | | | | | | | | | |
| |
| HEALTH CARE 0.0% | |
| | | | |
Kalbe Farma Tbk PT | | | | | 4,037,900 | | | | | | 425 | |
| | | | | | | | | | | | |
| |
| MATERIALS 0.1% | |
| | | | |
Indocement Tunggal Prakarsa Tbk PT | | | | | 627,300 | | | | | | 647 | |
| | | | |
Semen Indonesia Persero Tbk PT | | | | | 602,600 | | | | | | 533 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 1,180 | |
| | | | | | | | | | | | |
| |
| UTILITIES 0.1% | |
| | | | |
Perusahaan Gas Negara Tbk PT | | | | | 16,049,000 | | | | | | 1,893 | |
| | | | | | | | | | | | |
Total Indonesia | | | | | | | | | | | 14,494 | |
| | | | | | | | | | | | |
| |
| MALAYSIA 1.2% | |
| |
| COMMUNICATION SERVICES 0.2% | |
| | | | |
Axiata Group Bhd. | | | | | 447,300 | | | | | | 416 | |
| | | | |
Telekom Malaysia Bhd. | | | | | 2,059,300 | | | | | | 2,773 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 3,189 | |
| | | | | | | | | | | | |
| |
| | | | | | | | | | | | |
| | | | | SHARES | | | | | MARKET
VALUE
(000S) | |
| CONSUMER DISCRETIONARY 0.1% | |
| | | | |
DRB-Hicom Bhd. | | | | | 528,700 | | | $ | | | 274 | |
| | | | |
Genting Bhd. | | | | | 1,826,500 | | | | | | 2,029 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 2,303 | |
| | | | | | | | | | | | |
| |
| CONSUMER STAPLES 0.0% | |
| | | | |
British American Tobacco Malaysia Bhd. | | | | | 74,500 | | | | | | 261 | |
| | | | |
Felda Global Ventures Holdings Bhd. | | | | | 1,435,600 | | | | | | 458 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 719 | |
| | | | | | | | | | | | |
| |
| ENERGY 0.0% | |
| | | | |
Sapura Energy Bhd. (a) | | | | | 6,034,400 | | | | | | 188 | |
| | | | | | | | | | | | |
| |
| FINANCIALS 0.5% | |
| | | | |
Alliance Bank Malaysia Bhd. | | | | | 509,500 | | | | | | 369 | |
| | | | |
AMMB Holdings Bhd. | | | | | 371,100 | | | | | | 337 | |
| | | | |
CIMB Group Holdings Bhd. | | | | | 1,143,300 | | | | | | 1,224 | |
| | | | |
Hong Leong Financial Group Bhd. | | | | | 143,500 | | | | | | 646 | |
| | | | |
Malayan Banking Bhd. | | | | | 1,218,600 | | | | | | 2,565 | |
| | | | |
Public Bank Bhd. | | | | | 177,000 | | | | | | 908 | |
| | | | |
RHB Bank Bhd. | | | | | 1,044,700 | | | | | | 1,418 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 7,467 | |
| | | | | | | | | | | | |
| |
| INDUSTRIALS 0.3% | |
| | | | |
AirAsia Group Bhd. (a) | | | | | 15,555,800 | | | | | | 3,442 | |
| | | | |
IJM Corp. Bhd. | | | | | 548,000 | | | | | | 236 | |
| | | | |
MISC Bhd. | | | | | 208,200 | | | | | | 356 | |
| | | | |
Sime Darby Bhd. | | | | | 440,300 | | | | | | 254 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 4,288 | |
| | | | | | | | | | | | |
| |
| REAL ESTATE 0.0% | |
| | | | |
Sunway Bhd. | | | | | 648,414 | | | | | | 260 | |
| | | | | | | | | | | | |
| |
| UTILITIES 0.1% | |
| | | | |
Tenaga Nasional Bhd. | | | | | 626,000 | | | | | | 1,624 | |
| | | | |
YTL Corp. Bhd. | | | | | 695,433 | | | | | | 132 | |
| | | | |
YTL Power International Bhd. | | | | | 3,047,796 | | | | | | 565 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 2,321 | |
| | | | | | | | | | | | |
Total Malaysia | | | | | | | | | | | 20,735 | |
| | | | | | | | | | | | |
| |
| MEXICO 4.2% | |
| |
| COMMUNICATION SERVICES 1.8% | |
| | | | |
America Movil S.A.B. de C.V. | | | | | 35,372,580 | | | | | | 25,757 | |
| | | | |
Grupo Televisa S.A.B. | | | | | 2,257,010 | | | | | | 3,713 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 29,470 | |
| | | | | | | | | | | | |
| |
| CONSUMER DISCRETIONARY 0.0% | |
| | | | |
Alsea S.A.B. de C.V. (a) | | | | | 201,600 | | | | | | 262 | |
| | | | |
Controladora Nemak S.A.B. de C.V. (a) | | | | | 3,778,100 | | | | | | 498 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 760 | |
| | | | | | | | | | | | |
| |
| CONSUMER STAPLES 0.5% | |
| | | | |
Coca-Cola Femsa S.A.B. de C.V. SP - ADR | | | | | 19,643 | | | | | | 906 | |
| | | | |
Fomento Economico Mexicano, S.A.B. de C.V. | | | | | 11,660 | | | | | | 883 | |
| | | | |
Gruma S.A.B. de C.V. ‘B’ | | | | | 164,295 | | | | | | 1,956 | |
| | | | | | |
| 36 | | PIMCO EQUITY SERIES | | | See Accompanying Notes | |
| | | | | | | | |
| | | | | | December 31, 2020 | | (Unaudited) |
| | | | | | | | | | | | |
| | | | | SHARES | | | | | MARKET
VALUE
(000S) | |
| | | | |
Grupo Bimbo S.A.B. de C.V. ‘A’ | | | | | 1,008,100 | | | $ | | | 2,190 | |
| | | | |
Grupo Lala S.A.B. de C.V. | | | | | 337,400 | | | | | | 264 | |
| | | | |
Industrias Bachoco S.A.B. de C.V. | | | | | 74,100 | | | | | | 279 | |
| | | | |
Kimberly-Clark de Mexico S.A.B. de C.V. ‘A’ | | | | | 421,100 | | | | | | 719 | |
| | | | |
Wal-Mart de Mexico S.A.B. de C.V. | | | | | 532,800 | | | | | | 1,499 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 8,696 | |
| | | | | | | | | | | | |
| |
| FINANCIALS 0.1% | |
| | | | |
Gentera S.A.B. de C.V. | | | | | 416,100 | | | | | | 203 | |
| | | | |
Grupo Financiero Banorte S.A.B. de C.V. ‘O’ (a) | | | | | 177,400 | | | | | | 980 | |
| | | | |
Grupo Financiero Inbursa S.A.B. de C.V. ‘O’ (a) | | | | | 1,018,500 | | | | | | 1,027 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 2,210 | |
| | | | | | | | | | | | |
| |
| INDUSTRIALS 0.2% | |
| | | | |
Alfa S.A.B. de C.V. ‘A’ | | | | | 3,778,100 | | | | | | 2,730 | |
| | | | | | | | | | | | |
| |
| MATERIALS 1.6% | |
| | | | |
Cemex S.A.B. de C.V. | | | | | 21,129,830 | | | | | | 10,905 | |
| | | | |
Cemex S.A.B. de C.V. SP - ADR | | | | | 1,531,427 | | | | | | 7,918 | |
| | | | |
Grupo Mexico S.A.B. de C.V. ‘B’ | | | | | 1,127,700 | | | | | | 4,767 | |
| | | | |
Industrias Penoles S.A.B. de C.V. (a) | | | | | 93,260 | | | | | | 1,578 | |
| | | | |
Orbia Advance Corp. S.A.B. de C.V. | | | | | 432,900 | | | | | | 1,017 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 26,185 | |
| | | | | | | | | | | | |
Total Mexico | | | | | | | | | | | 70,051 | |
| | | | | | | | | | | | |
| |
| PHILIPPINES 0.5% | |
| |
| COMMUNICATION SERVICES 0.3% | |
| | | | |
Globe Telecom, Inc. | | | | | 17,740 | | | | | | 751 | |
| | | | |
PLDT, Inc. | | | | | 164,535 | | | | | | 4,594 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 5,345 | |
| | | | | | | | | | | | |
| |
| FINANCIALS 0.0% | |
| | | | |
Metropolitan Bank & Trust Co. | | | | | 250,434 | | | | | | 256 | |
| | | | | | | | | | | | |
| |
| INDUSTRIALS 0.1% | |
| | | | |
Alliance Global Group, Inc. | | | | | 4,620,200 | | | | | | 1,020 | |
| | | | |
DMCI Holdings, Inc. | | | | | 2,658,300 | | | | | | 313 | |
| | | | |
International Container Terminal Services, Inc. | | | | | 87,650 | | | | | | 225 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 1,558 | |
| | | | | | | | | | | | |
| |
| UTILITIES 0.1% | |
| | | | |
Aboitiz Power Corp. | | | | | 432,000 | | | | | | 239 | |
| | | | |
First Gen Corp. | | | | | 583,200 | | | | | | 342 | |
| | | | |
Manila Electric Co. | | | | | 18,450 | | | | | | 112 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 693 | |
| | | | | | | | | | | | |
Total Philippines | | | | | | | | | | | 7,852 | |
| | | | | | | | | | | | |
| |
| POLAND 1.0% | |
| |
| COMMUNICATION SERVICES 0.1% | |
| | | | |
Orange Polska S.A. (a) | | | | | 501,589 | | | | | | 889 | |
| | | | | | | | | | | | |
| |
| ENERGY 0.1% | |
| | | | |
Polski Koncern Naftowy ORLEN S.A. | | | | | 49,159 | | | | | | 761 | |
| | | | | | | | | | | | |
| | | | | SHARES | | | | | MARKET
VALUE
(000S) | |
| | | | |
Polskie Gornictwo Naftowe i Gazownictwo S.A. | | | | | 854,128 | | | $ | | | 1,276 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 2,037 | |
| | | | | | | | | | | | |
| |
| FINANCIALS 0.4% | |
| | | | |
Alior Bank S.A. (a) | | | | | 83,337 | | | | | | 379 | |
| | | | |
Bank Handlowy w Warszawie S.A. (a) | | | | | 21,749 | | | | | | 205 | |
| | | | |
Bank Polska Kasa Opieki S.A. | | | | | 244,727 | | | | | | 4,020 | |
| | | | |
Powszechna Kasa Oszczednosci Bank Polski S.A. (a) | | | | | 111,534 | | | | | | 861 | |
| | | | |
Powszechny Zaklad Ubezpieczen S.A. | | | | | 68,324 | | | | | | 593 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 6,058 | |
| | | | | | | | | | | | |
| |
| INFORMATION TECHNOLOGY 0.0% | |
| | | | |
Asseco Poland S.A. | | | | | 28,770 | | | | | | 525 | |
| | | | | | | | | | | | |
| |
| MATERIALS 0.2% | |
| | | | |
Jastrzebska Spolka Weglowa S.A. (a)(c) | | | | | 294,162 | | | | | | 2,055 | |
| | | | |
KGHM Polska Miedz S.A. (a) | | | | | 38,354 | | | | | | 1,889 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 3,944 | |
| | | | | | | | | | | | |
| |
| UTILITIES 0.2% | |
| | | | |
Enea S.A. | | | | | 130,882 | | | | | | 230 | |
| | | | |
PGE Polska Grupa Energetyczna S.A. (a) | | | | | 900,249 | | | | | | 1,573 | |
| | | | |
Tauron Polska Energia S.A. | | | | | 2,489,274 | | | | | | 1,820 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 3,623 | |
| | | | | | | | | | | | |
Total Poland | | | | | | | | | | | 17,076 | |
| | | | | | | | | | | | |
| |
| RUSSIA 6.5% | |
| |
| COMMUNICATION SERVICES 0.9% | |
| | | | |
Mobile TeleSystems PJSC (c) | | | | | 1,832,840 | | | | | | 8,224 | |
| | | | |
Rostelecom PJSC (c) | | | | | 1,123,970 | | | | | | 1,474 | |
| | | | |
Sistema PJSC FC (c) | | | | | 15,925,860 | | | | | | 6,193 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 15,891 | |
| | | | | | | | | | | | |
| |
| CONSUMER STAPLES 0.6% | |
| | | | |
Magnit PJSC | | | | | 120,472 | | | | | | 9,249 | |
| | | | |
X5 Retail Group NV GDR | | | | | 29,505 | | | | | | 1,066 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 10,315 | |
| | | | | | | | | | | | |
| |
| ENERGY 1.7% | |
| | | | |
Gazprom Neft PJSC | | | | | 91,610 | | | | | | 395 | |
| | | | |
Gazprom Neft PJSC SP - ADR (c) | | | | | 460 | | | | | | 10 | |
| | | | |
Gazprom PJSC | | | | | 2,974,302 | | | | | | 8,541 | |
| | | | |
Gazprom PJSC SP - ADR | | | | | 527,007 | | | | | | 2,942 | |
| | | | |
LUKOIL PJSC | | | | | 76,730 | | | | | | 5,342 | |
| | | | |
Lukoil PJSC SP - ADR | | | | | 94,457 | | | | | | 6,424 | |
| | | | |
Rosneft Oil Co. PJSC | | | | | 158,581 | | | | | | 935 | |
| | | | |
Surgutneftegas OJSC SP - ADR (c) | | | | | 280,873 | | | | | | 1,298 | |
| | | | |
Surgutneftegas PJSC | | | | | 6,548,100 | | | | | | 3,217 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 29,104 | |
| | | | | | | | | | | | |
| |
| FINANCIALS 0.2% | |
| | | | |
Sberbank of Russia PJSC | | | | | 903,800 | | | | | | 3,315 | |
| | | | |
VTB Bank PJSC | | | | | 1,502,550,000 | | | | | | 772 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 4,087 | |
| | | | | | | | | | | | |
| | | | | | | | | | | | |
| | | | | SHARES | | | | | MARKET
VALUE
(000S) | |
| INDUSTRIALS 0.1% | |
| | | | |
Aeroflot PJSC (c) | | | | | 617,760 | | | $ | | | 597 | |
| | | | |
Globaltrans Investment PLC GDR | | | | | 54,260 | | | | | | 324 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 921 | |
| | | | | | | | | | | | |
| |
| MATERIALS 2.2% | |
| | | | |
Alrosa PJSC | | | | | 4,555,700 | | | | | | 6,087 | |
| | | | |
Magnitogorsk Iron & Steel Works PJSC | | | | | 6,758,700 | | | | | | 5,113 | |
| | | | |
Mechel PJSC (a) | | | | | 546,820 | | | | | | 587 | |
| | | | |
MMC Norilsk Nickel PJSC | | | | | 18,560 | | | | | | 5,948 | |
| | | | |
MMC Norilsk Nickel PJSC ADR | | | | | 100,570 | | | | | | 3,135 | |
| | | | |
Novolipetskiy Metallurgicheskiy Kombinat PAO | | | | | 2,594,450 | | | | | | 7,342 | |
| | | | |
PhosAgro PJSC | | | | | 5,385 | | | | | | 229 | |
| | | | |
PhosAgro PJSC GDR | | | | | 45,620 | | | | | | 622 | |
| | | | |
Severstal PAO (c) | | | | | 72,174 | | | | | | 1,268 | |
| | | | |
Severstal PAO | | | | | 400,090 | | | | | | 7,144 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 37,475 | |
| | | | | | | | | | | | |
| |
| REAL ESTATE 0.1% | |
| | | | |
LSR Group PJSC | | | | | 83,729 | | | | | | 984 | |
| | | | | | | | | | | | |
| |
| UTILITIES 0.7% | |
| | | | |
Federal Grid Co. Unified Energy System PJSC (c) | | | | | 667,130,000 | | | | | | 2,010 | |
| | | | |
Inter RAO UES PJSC | | | | | 12,392,000 | | | | | | 894 | |
| | | | |
OGK-2 PJSC | | | | | 101,941,000 | | | | | | 1,008 | |
| | | | |
Rosseti PJSC | | | | | 108,627,012 | | | | | | 2,587 | |
| | | | |
RusHydro PJSC | | | | | 354,721,000 | | | | | | 3,771 | |
| | | | |
Unipro PJSC (c) | | | | | 21,463,000 | | | | | | 811 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 11,081 | |
| | | | | | | | | | | | |
Total Russia | | | | | | | | | | | 109,858 | |
| | | | | | | | | | | | |
| |
| SOUTH AFRICA 3.8% | |
| |
| COMMUNICATION SERVICES 0.7% | |
| | | | |
MTN Group Ltd. | | | | | 1,983,066 | | | | | | 8,185 | |
| | | | |
Telkom S.A. SOC Ltd. | | | | | 1,224,593 | | | | | | 2,559 | |
| | | | |
Vodacom Group Ltd. | | | | | 105,068 | | | | | | 889 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 11,633 | |
| | | | | | | | | | | | |
| |
| CONSUMER DISCRETIONARY 0.3% | |
| | | | |
Motus Holdings Ltd. | | | | | 308,309 | | | | | | 1,175 | |
| | | | |
Pepkor Holdings Ltd. | | | | | 372,516 | | | | | | 346 | |
| | | | |
Truworths International Ltd. | | | | | 650,603 | | | | | | 1,631 | |
| | | | |
Woolworths Holdings Ltd. | | | | | 673,781 | | | | | | 1,814 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 4,966 | |
| | | | | | | | | | | | |
| |
| CONSUMER STAPLES 0.3% | |
| | | | |
Massmart Holdings Ltd. (a) | | | | | 98,846 | | | | | | 283 | |
| | | | |
Shoprite Holdings Ltd. | | | | | 274,634 | | | | | | 2,616 | |
| | | | |
Tiger Brands Ltd. | | | | | 144,653 | | | | | | 2,049 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 4,948 | |
| | | | | | | | | | | | |
| |
| ENERGY 0.0% | |
| | | | |
Exxaro Resources Ltd. | | | | | 37,414 | | | | | | 354 | |
| | | | | | | | | | | | |
| |
| FINANCIALS 1.1% | |
| | | | |
Absa Group Ltd. | | | | | 397,100 | | | | | | 3,246 | |
| | | | |
African Phoenix Investments Ltd. | | | | | 90,857 | | | | | | 2 | |
| | | | | | | | | | | | |
| See Accompanying Notes | | | SEMIANNUAL REPORT | | | | | | | DECEMBER 31, 2020 | | | 37 |
| | | | | | | | |
| Schedule of Investments | | PIMCO RAE Emerging Markets Fund | | (Cont.) | | | | |
| | | | | | | | | | | | |
| | | | | SHARES | | | | | MARKET
VALUE
(000S) | |
| | | | |
FirstRand Ltd. | | | | | 682,100 | | | $ | | | 2,377 | |
| | | | |
Investec Ltd. | | | | | 165,754 | | | | | | 413 | |
| | | | |
Liberty Holdings Ltd. | | | | | 243,724 | | | | | | 1,038 | |
| | | | |
Momentum Metropolitan Holdings | | | | | 1,643,479 | | | | | | 1,763 | |
| | | | |
Nedbank Group Ltd. | | | | | 359,538 | | | | | | 3,175 | |
| | | | |
Ninety One Ltd. | | | | | 92,622 | | | | | | 278 | |
| | | | |
Sanlam Ltd. | | | | | 114,168 | | | | | | 456 | |
| | | | |
Standard Bank Group Ltd. | | | | | 683,266 | | | | | | 5,918 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 18,666 | |
| | | | | | | | | | | | |
| |
| HEALTH CARE 0.3% | |
| | | | |
Aspen Pharmacare Holdings Ltd. | | | | | 142,450 | | | | | | 1,218 | |
| | | | |
Life Healthcare Group Holdings Ltd. | | | | | 410,630 | | | | | | 469 | |
| | | | |
Netcare Ltd. | | | | | 3,526,248 | | | | | | 2,999 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 4,686 | |
| | | | | | | | | | | | |
| |
| INDUSTRIALS 0.1% | |
| | | | |
Barloworld Ltd. | | | | | 367,557 | | | | | | 2,279 | |
| | | | | | | | | | | | |
| |
| MATERIALS 1.0% | |
| | | | |
AngloGold Ashanti Ltd. | | | | | 36,690 | | | | | | 846 | |
| | | | |
Gold Fields Ltd. | | | | | 328,990 | | | | | | 3,054 | |
| | | | |
Gold Fields Ltd. SP - ADR | | | | | 542,816 | | | | | | 5,032 | |
| | | | |
Kumba Iron Ore Ltd. | | | | | 60,271 | | | | | | 2,554 | |
| | | | |
Sappi Ltd. | | | | | 516,793 | | | | | | 1,154 | |
| | | | |
Sasol Ltd. (a) | | | | | 292,091 | | | | | | 2,657 | |
| | | | |
Sibanye Stillwater Ltd. | | | | | 197,634 | | | | | | 797 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 16,094 | |
| | | | | | | | | | | | |
Total South Africa | | | | | | | | | | | 63,626 | |
| | | | | | | | | | | | |
| |
| SOUTH KOREA 19.1% | |
| |
| COMMUNICATION SERVICES 1.0% | |
| | | | |
KT Corp. | | | | | 174,388 | | | | | | 3,855 | |
| | | | |
KT Corp. SP - ADR | | | | | 581,544 | | | | | | 6,403 | |
| | | | |
LG Uplus Corp. | | | | | 484,190 | | | | | | 5,243 | |
| | | | |
SK Telecom Co. Ltd. | | | | | 4,025 | | | | | | 884 | |
| | | | |
SK Telecom Co. Ltd. SP - ADR | | | | | 29,445 | | | | | | 721 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 17,106 | |
| | | | | | | | | | | | |
| |
| CONSUMER DISCRETIONARY 5.2% | |
| | | | |
Hankook Tire & Technology Co. Ltd. | | | | | 70,724 | | | | | | 2,569 | |
| | | | |
Hyundai Department Store Co. Ltd. | | | | | 30,201 | | | | | | 1,990 | |
| | | | |
Hyundai Mobis Co. Ltd. | | | | | 17,901 | | | | | | 4,213 | |
| | | | |
Hyundai Motor Co. | | | | | 157,967 | | | | | | 28,000 | |
| | | | |
Hyundai Wia Corp. | | | | | 14,132 | | | | | | 698 | |
| | | | |
Kia Motors Corp. | | | | | 459,674 | | | | | | 26,485 | |
| | | | |
Kumho Tire Co., Inc. (a) | | | | | 45,350 | | | | | | 158 | |
| | | | |
LG Electronics, Inc. | | | | | 126,210 | | | | | | 15,716 | |
| | | | |
LOTTE Himart Co. Ltd. | | | | | 68,289 | | | | | | 1,962 | |
| | | | |
Lotte Shopping Co. Ltd. | | | | | 40,387 | | | | | | 3,820 | |
| | | | |
Mando Corp. | | | | | 24,239 | | | | | | 1,315 | |
| | | | |
Shinsegae, Inc. | | | | | 1,549 | | | | | | 342 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 87,268 | |
| | | | | | | | | | | | |
| |
| CONSUMER STAPLES 0.5% | |
| | | | |
Amorepacific Corp. | | | | | 19,568 | | | | | | 990 | |
| | | | |
CJ CheilJedang Corp. | | | | | 2,317 | | | | | | 814 | |
| | | | |
E-MART, Inc. | | | | | 32,904 | | | | | | 4,595 | |
| | | | | | | | | | | | |
| | | | | SHARES | | | | | MARKET
VALUE
(000S) | |
| | | | |
Hite Jinro Co. Ltd. | | | | | 14,790 | | | $ | | | 434 | |
| | | | |
KT&G Corp. | | | | | 22,970 | | | | | | 1,759 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 8,592 | |
| | | | | | | | | | | | |
| |
| ENERGY 0.2% | |
| | | | |
GS Holdings Corp. | | | | | 76,104 | | | | | | 2,633 | |
| | | | |
SK Gas Ltd. | | | | | 2,968 | | | | | | 286 | |
| | | | |
SK Innovation Co. Ltd. | | | | | 3,405 | | | | | | 597 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 3,516 | |
| | | | | | | | | | | | |
| |
| FINANCIALS 2.2% | |
| | | | |
BNK Financial Group, Inc. | | | | | 424,880 | | | | | | 2,226 | |
| | | | |
DB Insurance Co. Ltd. | | | | | 54,193 | | | | | | 2,184 | |
| | | | |
DGB Financial Group, Inc. | | | | | 91,433 | | | | | | 573 | |
| | | | |
Hana Financial Group, Inc. | | | | | 73,107 | | | | | | 2,328 | |
| | | | |
Hanwha Life Insurance Co. Ltd. | | | | | 1,555,258 | | | | | | 3,502 | |
| | | | |
Hyundai Marine & Fire Insurance Co. Ltd. | | | | | 106,466 | | | | | | 2,232 | |
| | | | |
Industrial Bank of Korea | | | | | 146,793 | | | | | | 1,197 | |
| | | | |
JB Financial Group Co. Ltd. | | | | | 42,680 | | | | | | 222 | |
| | | | |
KB Financial Group, Inc. | | | | | 130,854 | | | | | | 5,197 | |
| | | | |
Meritz Financial Group, Inc. | | | | | 19,200 | | | | | | 174 | |
| | | | |
Meritz Fire & Marine Insurance Co. Ltd. | | | | | 22,650 | | | | | | 305 | |
| | | | |
Samsung Card Co. Ltd. | | | | | 42,511 | | | | | | 1,272 | |
| | | | |
Samsung Fire & Marine Insurance Co. Ltd. | | | | | 13,594 | | | | | | 2,348 | |
| | | | |
Samsung Life Insurance Co. Ltd. | | | | | 105,433 | | | | | | 7,694 | |
| | | | |
Shinhan Financial Group Co. Ltd. | | | | | 187,339 | | | | | | 5,559 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 37,013 | |
| | | | | | | | | | | | |
| |
| INDUSTRIALS 2.7% | |
| | | | |
Asiana Airlines, Inc. (a) | | | | | 146,720 | | | | | | 569 | |
| | | | |
CJ Corp. | | | | | 34,585 | | | | | | 2,936 | |
| | | | |
Daelim Industrial Co. Ltd. | | | | | 13,928 | | | | | | 1,064 | |
| | | | |
Doosan Bobcat, Inc. | | | | | 6,225 | | | | | | 170 | |
| | | | |
Doosan Co. Ltd. | | | | | 33,090 | | | | | | 1,599 | |
| | | | |
Doosan Heavy Industries & Construction Co. Ltd. (a) | | | | | 857,500 | | | | | | 10,704 | |
| | | | |
Doosan Infracore Co. Ltd. (a)(c) | | | | | 462,491 | | | | | | 3,379 | |
| | | | |
Hanwha Corp. | | | | | 241,115 | | | | | | 6,297 | |
| | | | |
Hyundai Engineering & Construction Co. Ltd. | | | | | 154,215 | | | | | | 5,325 | |
| | | | |
Hyundai Glovis Co. Ltd. | | | | | 984 | | | | | | 167 | |
| | | | |
KCC Corp. | | | | | 3,300 | | | | | | 601 | |
| | | | |
Korean Air Lines Co. Ltd. | | | | | 41,203 | | | | | | 1,034 | |
| | | | |
LG International Corp. | | | | | 145,984 | | | | | | 3,326 | |
| | | | |
LS Corp. | | | | | 39,925 | | | | | | 2,631 | |
| | | | |
Samsung C&T Corp. | | | | | 20,324 | | | | | | 2,587 | |
| | | | |
SK Networks Co. Ltd. | | | | | 493,014 | | | | | | 2,206 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 44,595 | |
| | | | | | | | | | | | |
| |
| INFORMATION TECHNOLOGY 4.4% | |
| | | | |
LG Display Co. Ltd. | | | | | 756,411 | | | | | | 12,930 | |
| | | | |
Samsung Electronics Co. Ltd. | | | | | 770,093 | | | | | | 57,507 | |
| | | | |
SK Hynix, Inc. | | | | | 38,875 | | | | | | 4,246 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 74,683 | |
| | | | | | | | | | | | |
| |
| MATERIALS 1.9% | |
| | | | |
Dongkuk Steel Mill Co. Ltd. | | | | | 123,026 | | | | | | 921 | |
| | | | |
Hanwha Chemical Corp. | | | | | 30,670 | | | | | | 1,356 | |
| | | | |
Hyundai Steel Co. | | | | | 151,793 | | | | | | 5,548 | |
| | | | |
Kolon Industries, Inc. | | | | | 37,777 | | | | | | 1,430 | |
| | | | | | | | | | | | |
| | | | | SHARES | | | | | MARKET
VALUE
(000S) | |
| | | | |
Korea Petrochemical Ind Co. Ltd. | | | | | 23,670 | | | $ | | | 5,022 | |
| | | | |
Lotte Chemical Corp. | | | | | 9,579 | | | | | | 2,439 | |
| | | | |
OCI Co. Ltd. | | | | | 4,380 | | | | | | 376 | |
| | | | |
POSCO | | | | | 59,723 | | | | | | 14,923 | |
| | | | |
Taekwang Industrial Co. Ltd. | | | | | 240 | | | | | | 177 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 32,192 | |
| | | | | | | | | | | | |
| |
| UTILITIES 1.0% | |
| | | | |
Korea Electric Power Corp. | | | | | 643,240 | | | | | | 16,236 | |
| | | | |
Korea Gas Corp. | | | | | 9,728 | | | | | | 277 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 16,513 | |
| | | | | | | | | | | | |
Total South Korea | | | | | | | | | | | 321,478 | |
| | | | | | | | | | | | |
| |
| TAIWAN 14.6% | |
| |
| COMMUNICATION SERVICES 0.2% | |
| | | | |
Chunghwa Telecom Co. Ltd. | | | | | 452,000 | | | | | | 1,754 | |
| | | | |
Far EasTone Telecommunications Co. Ltd. | | | | | 334,000 | | | | | | 728 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 2,482 | |
| | | | | | | | | | | | |
| |
| CONSUMER DISCRETIONARY 0.4% | |
| | | | |
Cheng Shin Rubber Industry Co. Ltd. | | | | | 813,000 | | | | | | 1,277 | |
| | | | |
Far Eastern Department Stores Ltd. | | | | | 299,000 | | | | | | 256 | |
| | | | |
Formosa Taffeta Co. Ltd. | | | | | 368,000 | | | | | | 407 | |
| | | | |
Pou Chen Corp. | | | | | 2,755,000 | | | | | | 3,082 | |
| | | | |
Ruentex Industries Ltd. | | | | | 247,000 | | | | | | 613 | |
| | | | |
Yulon Motor Co. Ltd. | | | | | 193,516 | | | | | | 324 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 5,959 | |
| | | | | | | | | | | | |
| |
| CONSUMER STAPLES 0.1% | |
| | | | |
Uni-President Enterprises Corp. | | | | | 794,640 | | | | | | 1,911 | |
| | | | | | | | | | | | |
| |
| FINANCIALS 1.4% | |
| | | | |
Cathay Financial Holding Co. Ltd. | | | | | 3,060,581 | | | | | | 4,609 | |
| | | | |
Chang Hwa Commercial Bank Ltd. | | | | | 302,357 | | | | | | 193 | |
| | | | |
China Development Financial Holding Corp. | | | | | 1,717,000 | | | | | | 569 | |
| | | | |
China Life Insurance Co. Ltd. | | | | | 942,441 | | | | | | 746 | |
| | | | |
CTBC Financial Holding Co. Ltd. | | | | | 3,007,000 | | | | | | 2,111 | |
| | | | |
E.Sun Financial Holding Co. Ltd. | | | | | 385,208 | | | | | | 351 | |
| | | | |
First Financial Holding Co. Ltd. | | | | | 633,800 | | | | | | 482 | |
| | | | |
Fubon Financial Holding Co. Ltd. | | | | | 2,621,000 | | | | | | 4,365 | |
| | | | |
Hua Nan Financial Holdings Co. Ltd. ‘C’ | | | | | 603,542 | | | | | | 392 | |
| | | | |
Mega Financial Holding Co. Ltd. | | | | | 1,671,658 | | | | | | 1,774 | |
| | | | |
Mercuries Life Insurance Co. Ltd. (a) | | | | | 306,170 | | | | | | 94 | |
| | | | |
Shanghai Commercial & Savings Bank Ltd. | | | | | 256,511 | | | | | | 376 | |
| | | | |
Shin Kong Financial Holding Co. Ltd. | | | | | 7,982,764 | | | | | | 2,511 | |
| | | | |
SinoPac Financial Holdings Co. Ltd. | | | | | 4,489,494 | | | | | | 1,831 | |
| | | | |
Taishin Financial Holding Co. Ltd. | | | | | 608,474 | | | | | | 287 | |
| | | | |
Taiwan Business Bank | | | | | 581,000 | | | | | | 202 | |
| | | | |
Taiwan Cooperative Financial Holding Co. Ltd. | | | | | 549,465 | | | | | | 398 | |
| | | | | | |
| 38 | | PIMCO EQUITY SERIES | | | See Accompanying Notes | |
| | | | | | | | |
| | | | | | December 31, 2020 | | (Unaudited) |
| | | | | | | | | | | | |
| | | | | SHARES | | | | | MARKET
VALUE
(000S) | |
| | | | |
Yuanta Financial Holding Co. Ltd. | | | | | 3,463,360 | | | $ | | | 2,537 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 23,828 | |
| | | | | | | | | | | | |
| |
| INDUSTRIALS 0.4% | |
| | | | |
China Airlines Ltd. | | | | | 4,265,000 | | | | | | 1,834 | |
| | | | |
Eva Airways Corp. | | | | | 2,453,686 | | | | | | 1,152 | |
| | | | |
Far Eastern New Century Corp. | | | | | 749,520 | | | | | | 773 | |
| | | | |
Teco Electric and Machinery Co. Ltd. | | | | | 553,000 | | | | | | 545 | |
| | | | |
Walsin Lihwa Corp. | | | | | 2,778,000 | | | | | | 1,913 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 6,217 | |
| | | | | | | | | | | | |
| |
| INFORMATION TECHNOLOGY 11.9% | |
| | | | |
Acer, Inc. | | | | | 5,183,000 | | | | | | 4,373 | |
| | | | |
Asustek Computer, Inc. | | | | | 1,523,000 | | | | | | 13,601 | |
| | | | |
AU Optronics Corp. | | | | | 49,487,000 | | | | | | 24,761 | |
| | | | |
Catcher Technology Co. Ltd. | | | | | 71,000 | | | | | | 522 | |
| | | | |
Chicony Electronics Co. Ltd. | | | | | 175,225 | | | | | | 538 | |
| | | | |
Compal Electronics, Inc. | | | | | 7,336,000 | | | | | | 5,414 | |
| | | | |
Delta Electronics, Inc. | | | | | 316,000 | | | | | | 2,963 | |
| | | | |
Foxconn Technology Co. Ltd. | | | | | 760,000 | | | | | | 1,448 | |
| | | | |
Hon Hai Precision Industry Co. Ltd. | | | | | 5,606,316 | | | | | | 18,383 | |
| | | | |
Innolux Corp. | | | | | 35,052,000 | | | | | | 17,641 | |
| | | | |
Inventec Corp. | | | | | 6,793,000 | | | | | | 5,811 | |
| | | | |
Lite-On Technology Corp. | | | | | 1,805,035 | | | | | | 3,203 | |
| | | | |
MediaTek, Inc. | | | | | 262,000 | | | | | | 6,987 | |
| | | | |
Nanya Technology Corp. | | | | | 94,000 | | | | | | 291 | |
| | | | |
Novatek Microelectronics Corp. | | | | | 170,000 | | | | | | 2,237 | |
| | | | |
Pegatron Corp. | | | | | 3,718,000 | | | | | | 8,926 | |
| | | | |
Powertech Technology, Inc. | | | | | 674,000 | | | | | | 2,283 | |
| | | | |
Quanta Computer, Inc. | | | | | 1,673,000 | | | | | | 4,827 | |
| | | | |
Synnex Technology International Corp. | | | | | 648,650 | | | | | | 1,087 | |
| | | | |
Taiwan Semiconductor Manufacturing Co. Ltd. | | | | | 1,714,195 | | | | | | 32,428 | |
| | | | |
United Microelectronics Corp. | | | | | 20,769,000 | | | | | | 34,929 | |
| | | | |
Winbond Electronics Corp. | | | | | 246,000 | | | | | | 255 | |
| | | | |
Wistron Corp. | | | | | 3,888,515 | | | | | | 4,302 | |
| | | | |
WPG Holdings Ltd. | | | | | 1,497,320 | | | | | | 2,289 | |
| | | | |
Zhen Ding Technology Holding Ltd. | | | | | 257,000 | | | | | | 1,046 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 200,545 | |
| | | | | | | | | | | | |
| |
| MATERIALS 0.2% | |
| | | | |
Asia Cement Corp. | | | | | 150,000 | | | | | | 231 | |
| | | | |
China Steel Corp. | | | | | 2,274,000 | | | | | | 2,005 | |
| | | | |
Formosa Chemicals & Fibre Corp. | | | | | 149,000 | | | | | | 450 | |
| | | | |
Nan Ya Plastics Corp. | | | | | 227,000 | | | | | | 581 | |
| | | | |
Taiwan Cement Corp. | | | | | 327,051 | | | | | | 503 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 3,770 | |
| | | | | | | | | | | | |
| |
| REAL ESTATE 0.0% | |
| | | | |
Farglory Land Development Co. Ltd. | | | | | 129,000 | | | | | | 259 | |
| | | | |
Highwealth Construction Corp. | | | | | 88,000 | | | | | | 143 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 402 | |
| | | | | | | | | | | | |
Total Taiwan | | | | | | | | | | | 245,114 | |
| | | | | | | | | | | | |
| | | | | | | | | | | | |
| | | | | SHARES | | | | | MARKET
VALUE
(000S) | |
| THAILAND 3.0% | |
| |
| COMMUNICATION SERVICES 0.0% | |
| | | | |
Advanced Info Service PCL | | | | | 80,400 | | | $ | | | 472 | |
| | | | |
Total Access Communication PCL | | | | | 224,500 | | | | | | 249 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 721 | |
| | | | | | | | | | | | |
| |
| CONSUMER STAPLES 0.1% | |
| | | | |
Charoen Pokphand Foods PCL | | | | | 1,535,800 | | | | | | 1,371 | |
| | | | |
Thai Union Group PCL ‘F’ | | | | | 1,357,300 | | | | | | 617 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 1,988 | |
| | | | | | | | | | | | |
| |
| ENERGY 0.7% | |
| | | | |
Bangchak Corp. PCL | | | | | 720,400 | | | | | | 496 | |
| | | | |
Banpu PCL (c) | | | | | 2,973,100 | | | | | | 1,092 | |
| | | | |
Esso Thailand PCL (a) | | | | | 1,600,300 | | | | | | 395 | |
| | | | |
IRPC PCL | | | | | 2,351,500 | | | | | | 292 | |
| | | | |
PTT Exploration & Production PCL | | | | | 295,600 | | | | | | 970 | |
| | | | |
PTT PCL | | | | | 2,238,400 | | | | | | 3,178 | |
| | | | |
Star Petroleum Refining PCL | | | | | 17,532,900 | | | | | | 4,711 | |
| | | | |
Thai Oil PCL | | | | | 121,000 | | | | | | 210 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 11,344 | |
| | | | | | | | | | | | |
| |
| FINANCIALS 1.1% | |
| | | | |
Bangkok Bank PCL | | | | | 697,700 | | | | | | 2,759 | |
| | | | |
Kasikornbank PCL | | | | | 894,400 | | | | | | 3,372 | |
| | | | |
Kiatnakin Bank PCL | | | | | 207,100 | | | | | | 358 | |
| | | | |
Krung Thai Bank PCL | | | | | 10,009,175 | | | | | | 3,705 | |
| | | | |
Siam Commercial Bank PCL | | | | | 1,601,100 | | | | | | 4,672 | |
| | | | |
Thanachart Capital PCL | | | | | 2,580,404 | | | | | | 2,977 | |
| | | | |
Tisco Financial Group PCL | | | | | 160,900 | | | | | | 475 | |
| | | | |
TMB Bank PCL (c) | | | | | 22,020,600 | | | | | | 794 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 19,112 | |
| | | | | | | | | | | | |
| |
| INDUSTRIALS 0.8% | |
| | | | |
Delta Electronics Thailand PCL (c) | | | | | 779,397 | | | | | | 12,643 | |
| | | | | | | | | | | | |
| |
| MATERIALS 0.3% | |
| | | | |
PTT Global Chemical PCL | | | | | 1,051,200 | | | | | | 2,053 | |
| | | | |
Siam Cement PCL | | | | | 176,500 | | | | | | 2,227 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 4,280 | |
| | | | | | | | | | | | |
| |
| REAL ESTATE 0.0% | |
| | | | |
Pruksa Holding PCL | | | | | 704,300 | | | | | | 294 | |
| | | | | | | | | | | | |
Total Thailand | | | | | | | | | | | 50,382 | |
| | | | | | | | | | | | |
| |
| TURKEY 2.3% | |
| |
| COMMUNICATION SERVICES 0.2% | |
| | | | |
Turk Telekomunikasyon A/S (c) | | | | | 1,201,810 | | | | | | 1,381 | |
| | | | |
Turkcell Iletisim Hizmetleri A/S | | | | | 646,892 | | | | | | 1,397 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 2,778 | |
| | | | | | | | | | | | |
| |
| CONSUMER DISCRETIONARY 0.2% | |
| | | | |
Arcelik A/S (a)(c) | | | | | 257,400 | | | | | | 1,055 | |
| | | | |
Tofas Turk Otomobil Fabrikasi A/S | | | | | 487,891 | | | | | | 2,227 | |
| | | | |
Vestel Elektronik Sanayi ve Ticaret A/S (a) | | | | | 114,316 | | | | | | 324 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 3,606 | |
| | | | | | | | | | | | |
| | | | | | | | | | | | |
| | | | | SHARES | | | | | MARKET
VALUE
(000S) | |
| CONSUMER STAPLES 0.1% | |
| | | | |
Anadolu Efes Biracilik Ve Malt Sanayii A/S | | | | | 119,807 | | | $ | | | 373 | |
| | | | |
Migros Ticaret A/S (c) | | | | | 94,079 | | | | | | 542 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 915 | |
| | | | | | | | | | | | |
| |
| ENERGY 0.1% | |
| | | | |
Turkiye Petrol Rafinerileri A/S | | | | | 75,390 | | | | | | 1,094 | |
| | | | | | | | | | | | |
| |
| FINANCIALS 1.5% | |
| | | | |
Akbank T.A.S. | | | | | 4,707,435 | | | | | | 4,366 | |
| | | |
Haci Omer Sabanci Holding A/S | | | 5,123,770 | | | | | | 7,892 | |
| | | | |
Turkiye Garanti Bankasi A/S | | | | | 3,893,520 | | | | | | 5,430 | |
| | | | |
Turkiye Halk Bankasi A/S (c) | | | | | 3,592,560 | | | | | | 2,688 | |
| | | | |
Turkiye Is Bankasi ‘C’ | | | | | 3,240,990 | | | | | | 3,049 | |
| | | | |
Turkiye Vakiflar Bankasi TAO ‘D’ (c) | | | | | 671,420 | | | | | | 425 | |
| | | |
Yapi ve Kredi Bankasi A/S (a)(c) | | | 4,097,852 | | | | | | 1,698 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 25,548 | |
| | | | | | | | | | | | |
| |
| INDUSTRIALS 0.1% | |
| | | | |
AG Anadolu Grubu Holding A.S. (a) | | | | | 125,033 | | | | | | 444 | |
| | | | |
Enka Insaat ve Sanayi A/S | | | | | 422,390 | | | | | | 419 | |
| | | | |
KOC Holding A/S | | | | | 174,700 | | | | | | 496 | |
| | | | |
TAV Havalimanlari Holding A/S (c) | | | | | 92,881 | | | | | | 266 | |
| | | | |
Turk Hava Yollari AO (a) | | | | | 470,050 | | | | | | 817 | |
| | | | |
Turkiye Sise ve Cam Fabrikalari A/S | | | | | 222,303 | | | | | | 219 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 2,661 | |
| | | | | | | | | | | | |
| |
| MATERIALS 0.1% | |
| | | |
Eregli Demir ve Celik Fabrikalari TAS | | | 1,142,577 | | | | | | 2,293 | |
| | | | | | | | | | | | |
| |
| UTILITIES 0.0% | |
| | | | |
Enerjisa Enerji A/S | | | | | 240,593 | | | | | | 405 | |
| | | | | | | | | | | | |
Total Turkey | | | | | | | | | | | 39,300 | |
| | | | | | | | | | | | |
| |
| UNITED STATES 0.1% | |
| |
| CONSUMER DISCRETIONARY 0.1% | |
| | | |
Nexteer Automotive Group Ltd. | | | 810,000 | | | | | | 872 | |
| | | | | | | | | | | | |
Total United States | | | | | | | | | | | 872 | |
| | | | | | | | | | | | |
Total Common Stocks (Cost $1,209,249) | | | 1,601,896 | |
| | | | |
| |
| PREFERRED STOCKS 3.6% | |
| |
| BRAZIL 3.4% | |
| |
| BANKING & FINANCE 1.8% | |
| | | | |
Banco Bradesco S.A. | | | | | 4,609,701 | | | | | | 24,245 | |
| | | | |
Banco do Estado do Rio Grande do Sul S.A. | | | | | 678,100 | | | | | | 1,913 | |
| | | | |
Itau Unibanco Holding S.A. | | | | | 799,689 | | | | | | 4,894 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 31,052 | |
| | | | | | | | | | | | |
| |
| INDUSTRIALS 0.8% | |
| | | | |
Braskem S.A. | | | | | 663,800 | | | | | | 3,025 | |
| | | | |
Gerdau S.A. | | | | | 960,338 | | | | | | 4,532 | |
| | | | |
Metalurgica Gerdau S.A. | | | | | 2,597,600 | | | | | | 5,616 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 13,173 | |
| | | | | | | | | | | | |
| | | | | | | | | | | | |
| See Accompanying Notes | | | SEMIANNUAL REPORT | | | | | | | DECEMBER 31, 2020 | | | 39 |
| | | | | | | | |
| Schedule of Investments | | PIMCO RAE Emerging Markets Fund | | (Cont.) | | | | |
| | | | | | | | | | | | |
| | | | | SHARES | | | | | MARKET
VALUE
(000S) | |
| UTILITIES 0.8% | |
| | | | |
Cia de Transmissao de Energia Eletrica Paulista | | | | | 49,900 | | | $ | | | 268 | |
| | | | |
Cia Energetica de Minas Gerais | | | | | 1,745,186 | | | | | | 4,921 | |
| | | | |
Cia Energetica de Sao Paulo | | | | | 370,300 | | | | | | 2,073 | |
| | | | |
Cia Paranaense de Energia | | | | | 314,900 | | | | | | 4,577 | |
| | | | |
Petroleo Brasileiro S.A. | | | | | 191,200 | | | | | | 1,038 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 12,877 | |
| | | | | | | | | | | | |
Total Brazil | | | | | | | | | | | 57,102 | |
| | | | | | | | | | | | |
| |
| CHILE 0.1% | |
| |
| INDUSTRIALS 0.1% | |
| | | | |
Embotelladora Andina S.A. | | | | | 253,006 | | | | | | 651 | |
| | | | |
Sociedad Quimica y Minera de Chile S.A. | | | | | 27,750 | | | | | | 1,352 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 2,003 | |
| | | | | | | | | | | | |
Total Chile | | | | | | | | | | | 2,003 | |
| | | | | | | | | | | | |
| |
| RUSSIA 0.1% | |
| |
| UTILITIES 0.1% | |
| | | | |
Bashneft PJSC | | | | | 21,929 | | | | | | 346 | |
| | | | |
Transneft PJSC | | | | | 817 | | | | | | 1,557 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 1,903 | |
| | | | | | | | | | | | |
Total Russia | | | | | | | | | | | 1,903 | |
| | | | | | | | | | | | |
Total Preferred Stocks (Cost $45,519) | | | 61,008 | |
| | | | |
| |
| REAL ESTATE INVESTMENT TRUSTS 0.5% | |
| |
| MEXICO 0.1% | |
| |
| REAL ESTATE 0.1% | �� |
| | | | |
Fibra Uno Administracion S.A. de C.V. | | | | | 652,300 | | | | | | 738 | |
| | | | | | | | | | | | |
Total Mexico | | | | | | | | | | | 738 | |
| | | | | | | | | | | | |
| | | | | | | | | | | | |
| | | | | SHARES | | | | | MARKET
VALUE
(000S) | |
| SOUTH AFRICA 0.0% | |
| |
| REAL ESTATE 0.0% | |
| | | | |
Growthpoint Properties Ltd. | | | | | 351,025 | | | $ | | | 301 | |
| | | | |
Resilient REIT Ltd. | | | | | 2,546 | | | | | | 7 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 308 | |
| | | | | | | | | | | | |
Total South Africa | | | | | | | | | | | 308 | |
| | | | | | | | | | | | |
| |
| TURKEY 0.4% | |
| |
| REAL ESTATE 0.4% | |
| | | | |
Emlak Konut Gayrimenkul Yatirim Ortakligi A/S (c) | | | | | 25,639,043 | | | | | | 7,369 | |
| | | | | | | | | | | | |
Total Turkey | | | | | | | | | | | 7,369 | |
| | | | | | | | | | | | |
Total Real Estate Investment Trusts
(Cost $6,647) | | | 8,415 | |
| | | | |
| |
| RIGHTS 0.0% | |
| |
| CHILE 0.0% | |
| |
| UTILITIES 0.0% | |
| | | | |
AES Gener S.A. | | | | | 1,207,256 | | | | | | 13 | |
| | | | | | | | | | | | |
Total Rights (Cost $0) | | | 13 | |
| | | | |
| |
| WARRANTS 0.1% | |
| |
| UNITED KINGDOM 0.1% | |
| |
| FINANCIALS 0.1% | |
| | | | |
HSBC Bank PLC - Exp. 10/04/2021 | | | | | 21,740 | | | | | | 193 | |
| | | | |
HSBC Bank PLC - Exp. 11/09/2021 | | | | | 87,800 | | | | | | 670 | |
| | | | |
HSBC Bank PLC - Exp. 12/06/2021 | | | | | 58,310 | | | | | | 426 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 1,289 | |
| | | | | | | | | | | | |
Total Warrants (Cost $1,293) | | | 1,289 | |
| | | | |
| | | | | | | | | | | | |
| | | | | SHARES | | | | | MARKET
VALUE
(000S) | |
| SHORT-TERM INSTRUMENTS 0.2% | |
| |
| MUTUAL FUNDS 0.0% | |
| |
| REPURCHASE AGREEMENTS (e) 0.2% | |
| |
| | | | | | | | $ | | | 3,506 | |
| | | | | | | | | | | | |
Total Short-Term Instruments
(Cost $3,506) | | | 3,506 | |
| | | | |
| | | | |
| | | | | | | | | | | | |
Total Investments in Securities
(Cost $1,266,214) | | | 1,676,127 | |
| | | | |
| |
| INVESTMENTS IN AFFILIATES 2.8% | |
| |
| SHORT-TERM INSTRUMENTS 2.8% | |
| |
| MUTUAL FUNDS 2.8% | |
|
PIMCO Government Money Market Fund | |
0.150% (b)(c)(d) | | | | | 46,417,194 | | | | | | 46,417 | |
| | | | | | | | | | | | |
Total Short-Term Instruments
(Cost $46,417) | | | 46,417 | |
| | | | |
| | | | |
| | | | | | | | | | | | |
Total Investments in Affiliates
(Cost $46,417) | | | 46,417 | |
| | | | |
| | | | | | | | | | | | |
Total Investments 102.5%
(Cost $1,312,631) | | | $ | | | 1,722,544 | |
| |
| Other Assets and Liabilities, net (2.5)% | | | (41,785 | ) |
| | | | |
| Net Assets 100.0% | | | $ | | | 1,680,759 | |
| | | | | | | |
NOTES TO SCHEDULE OF INVESTMENTS:
| * | 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. |
| (b) | Institutional Class Shares of each Fund. |
| (c) | Securities with an aggregate market value of $43,399 were out on loan in exchange for $47,553 of cash collateral as of December 31, 2020. The collateral was invested in a cash collateral reinvestment vehicle as described in Note 5 in the Notes to Financial Statements. |
| (d) | Coupon represents a 7-Day Yield. |
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 | |
| FICC | | | 0.000 | % | | | 12/31/2020 | | | | 01/04/2021 | | | $ | 3,506 | | | U.S. Treasury Bills 0.000% due 12/30/2021 | | $ | (3,576 | ) | | $ | 3,506 | | | $ | 3,506 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total Repurchase Agreements | | | | | $ | (3,576 | ) | | $ | 3,506 | | | $ | 3,506 | |
| | | | | | | | | | | | | | | |
| | | | | | |
| 40 | | PIMCO EQUITY SERIES | | | See Accompanying Notes | |
| | | | | | | | |
| | | | | | December 31, 2020 | | (Unaudited) |
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, 2020:
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Counterparty | | Repurchase
Agreement
Proceeds
to be
Received | | | Payable for
Reverse
Repurchase
Agreements | | | Payable for
Sale-Buyback
Transactions | | | Securities
Out on Loan | | | Total
Borrowings and
Other Financing
Transactions | | | Collateral
Pledged/(Received) | | | Net Exposure(1) | |
Global/Master Repurchase Agreement | |
FICC | | $ | 3,506 | | | $ | 0 | | | $ | 0 | | | $ | 0 | | | $ | 3,506 | | | $ | (3,576 | ) | | $ | (70 | ) |
|
Master Securities Lending Agreement | |
BMO | | | 0 | | | | 0 | | | | 0 | | | | 3,470 | | | | 3,470 | | | | (3,633 | ) | | | (163 | ) |
BOS | | | 0 | | | | 0 | | | | 0 | | | | 187 | | | | 187 | | | | (217 | ) | | | (30 | ) |
FOB | | | 0 | | | | 0 | | | | 0 | | | | 1,888 | | | | 1,888 | | | | (2,163 | ) | | | (275 | ) |
GSC | | | 0 | | | | 0 | | | | 0 | | | | 23,965 | | | | 23,965 | | | | (26,267 | ) | | | (2,302 | ) |
MBC | | | 0 | | | | 0 | | | | 0 | | | | 1,552 | | | | 1,552 | | | | (1,637 | ) | | | (85 | ) |
MSC | | | 0 | | | | 0 | | | | 0 | | | | 1,742 | | | | 1,742 | | | | (1,903 | ) | | | (161 | ) |
SAL | | | 0 | | | | 0 | | | | 0 | | | | 7,767 | | | | 7,767 | | | | (8,747 | ) | | | (980 | ) |
UBS | | | 0 | | | | 0 | | | | 0 | | | | 2,828 | | | | 2,828 | | | | (2,986 | ) | | | (158 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total Borrowings and Other Financing Transactions | | $ | 3,506 | | | $ | 0 | | | $ | 0 | | | $ | 43,399 | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
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 | |
Securities Lending Transactions(2) | |
Common Stocks | | $ | 41,949 | | | $ | 0 | | | $ | 0 | | | $ | 0 | | | $ | 41,949 | |
Real Estate Investment Trusts | | | 5,604 | | | | 0 | | | | 0 | | | | 0 | | | | 5,604 | |
| | | | | | | | | | | | | | | | | | | | |
Total Borrowings | | $ | 47,553 | | | $ | 0 | | | $ | 0 | | | $ | 0 | | | $ | 47,553 | |
| | | | | | | | | | | | | | | | | | | | |
Payable for securities on loan - cash collateral | | | $ | 47,553 | |
| | | | | | | | | | | | | | | | | | | | |
| (1) | 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. |
| (2) | Includes cash collateral as described in Note 5 in the Notes to Financial Statements. |
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 and Other 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, 2020:
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | 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 | | | $ | (8 | ) | | $ | 0 | | | $ | (8 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | |
| See Accompanying Notes | | | SEMIANNUAL REPORT | | | | | | | DECEMBER 31, 2020 | | | 41 |
| | | | | | | | |
| Schedule of Investments | | PIMCO RAE 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, 2020 in valuing the Fund’s assets and liabilities:
| | | | | | | | | | | | | | | | |
| Category and Subcategory | | Level 1 | | | Level 2 | | | Level 3 | | | Fair
Value at
12/31/2020 | |
Investments in Securities, at Value | |
Common Stocks | |
Australia | |
Materials | | $ | 0 | | | $ | 681 | | | $ | 0 | | | $ | 681 | |
Brazil | |
Communication Services | | | 0 | | | | 9,172 | | | | 0 | | | | 9,172 | |
Consumer Discretionary | | | 0 | | | | 1,740 | | | | 0 | | | | 1,740 | |
Consumer Staples | | | 0 | | | | 4,957 | | | | 0 | | | | 4,957 | |
Energy | | | 942 | | | | 6,545 | | | | 0 | | | | 7,487 | |
Financials | | | 0 | | | | 15,103 | | | | 0 | | | | 15,103 | |
Health Care | | | 0 | | | | 1,239 | | | | 0 | | | | 1,239 | |
Industrials | | | 0 | | | | 624 | | | | 0 | | | | 624 | |
Information Technology | | | 0 | | | | 4,655 | | | | 0 | | | | 4,655 | |
Materials | | | 673 | | | | 16,028 | | | | 0 | | | | 16,701 | |
Utilities | | | 0 | | | | 3,299 | | | | 0 | | | | 3,299 | |
Chile | |
Consumer Discretionary | | | 0 | | | | 550 | | | | 0 | | | | 550 | |
Consumer Staples | | | 212 | | | | 2,372 | | | | 0 | | | | 2,584 | |
Financials | | | 546 | | | | 1,161 | | | | 0 | | | | 1,707 | |
Materials | | | 2,006 | | | | 0 | | | | 0 | | | | 2,006 | |
Utilities | | | 1,510 | | | | 2,244 | | | | 0 | | | | 3,754 | |
China | |
Communication Services | | | 878 | | | | 5,053 | | | | 0 | | | | 5,931 | |
Consumer Discretionary | | | 3,606 | | | | 12,739 | | | | 0 | | | | 16,345 | |
Consumer Staples | | | 0 | | | | 2,530 | | | | 0 | | | | 2,530 | |
Energy | | | 0 | | | | 29,356 | | | | 0 | | | | 29,356 | |
Financials | | | 0 | | | | 127,745 | | | | 0 | | | | 127,745 | |
Health Care | | | 0 | | | | 2,984 | | | | 0 | | | | 2,984 | |
Industrials | | | 0 | | | | 16,274 | | | | 0 | | | | 16,274 | |
Information Technology | | | 0 | | | | 23,217 | | | | 0 | | | | 23,217 | |
Materials | | | 0 | | | | 11,359 | | | | 0 | | | | 11,359 | |
Real Estate | | | 539 | | | | 18,186 | | | | 0 | | | | 18,725 | |
Utilities | | | 0 | | | | 1,697 | | | | 0 | | | | 1,697 | |
Greece | |
Communication Services | | | 0 | | | | 1,681 | | | | 0 | | | | 1,681 | |
Consumer Discretionary | | | 0 | | | | 993 | | | | 0 | | | | 993 | |
Energy | | | 0 | | | | 407 | | | | 0 | | | | 407 | |
Financials | | | 758 | | | | 7,656 | | | | 0 | | | | 8,414 | |
Utilities | | | 0 | | | | 4,960 | | | | 0 | | | | 4,960 | |
Hong Kong | |
Communication Services | | | 0 | | | | 15,304 | | | | 0 | | | | 15,304 | |
Consumer Discretionary | | | 0 | | | | 174 | | | | 0 | | | | 174 | |
Financials | | | 0 | | | | 5,900 | | | | 0 | | | | 5,900 | |
Industrials | | | 0 | | | | 2,021 | | | | 0 | | | | 2,021 | |
Materials | | | 0 | | | | 932 | | | | 0 | | | | 932 | |
Real Estate | | | 0 | | | | 9,083 | | | | 0 | | | | 9,083 | |
Utilities | | | 0 | | | | 5,684 | | | | 0 | | | | 5,684 | |
India | |
Communication Services | | | 0 | | | | 3,272 | | | | 0 | | | | 3,272 | |
Consumer Discretionary | | | 0 | | | | 67,141 | | | | 0 | | | | 67,141 | |
Consumer Staples | | | 0 | | | | 309 | | | | 0 | | | | 309 | |
Energy | | | 0 | | | | 46,029 | | | | 0 | | | | 46,029 | |
Financials | | | 0 | | | | 35,835 | | | | 666 | | | | 36,501 | |
Health Care | | | 0 | | | | 7,911 | | | | 0 | | | | 7,911 | |
Industrials | | | 0 | | | | 4,856 | | | | 0 | | | | 4,856 | |
Information Technology | | | 0 | | | | 4,301 | | | | 0 | | | | 4,301 | |
Materials | | | 0 | | | | 77,769 | | | | 0 | | | | 77,769 | |
Utilities | | | 0 | | | | 4,994 | | | | 0 | | | | 4,994 | |
Indonesia | |
Communication Services | | | 0 | | | | 3,003 | | | | 0 | | | | 3,003 | |
Consumer Discretionary | | | 0 | | | | 558 | | | | 0 | | | | 558 | |
Consumer Staples | | | 0 | | | | 744 | | | | 0 | | | | 744 | |
Energy | | | 0 | | | | 3,093 | | | | 0 | | | | 3,093 | |
Financials | | | 0 | | | | 3,598 | | | | 0 | | | | 3,598 | |
Health Care | | | 0 | | | | 425 | | | | 0 | | | | 425 | |
Materials | | | 0 | | | | 1,180 | | | | 0 | | | | 1,180 | |
Utilities | | | 0 | | | | 1,893 | | | | 0 | | | | 1,893 | |
| | | | | | | | | | | | | | | | |
| Category and Subcategory | | Level 1 | | | Level 2 | | | Level 3 | | | Fair
Value at
12/31/2020 | |
Malaysia | |
Communication Services | | $ | 0 | | | $ | 3,189 | | | $ | 0 | | | $ | 3,189 | |
Consumer Discretionary | | | 0 | | | | 2,303 | | | | 0 | | | | 2,303 | |
Consumer Staples | | | 0 | | | | 719 | | | | 0 | | | | 719 | |
Energy | | | 0 | | | | 188 | | | | 0 | | | | 188 | |
Financials | | | 0 | | | | 7,467 | | | | 0 | | | | 7,467 | |
Industrials | | | 0 | | | | 4,288 | | | | 0 | | | | 4,288 | |
Real Estate | | | 0 | | | | 260 | | | | 0 | | | | 260 | |
Utilities | | | 0 | | | | 2,321 | | | | 0 | | | | 2,321 | |
Mexico | |
Communication Services | | | 29,470 | | | | 0 | | | | 0 | | | | 29,470 | |
Consumer Discretionary | | | 760 | | | | 0 | | | | 0 | | | | 760 | |
Consumer Staples | | | 8,696 | | | | 0 | | | | 0 | | | | 8,696 | |
Financials | | | 2,210 | | | | 0 | | | | 0 | | | | 2,210 | |
Industrials | | | 2,730 | | | | 0 | | | | 0 | | | | 2,730 | |
Materials | | | 26,185 | | | | 0 | | | | 0 | | | | 26,185 | |
Philippines | |
Communication Services | | | 0 | | | | 5,345 | | | | 0 | | | | 5,345 | |
Financials | | | 0 | | | | 256 | | | | 0 | | | | 256 | |
Industrials | | | 0 | | | | 1,558 | | | | 0 | | | | 1,558 | |
Utilities | | | 0 | | | | 693 | | | | 0 | | | | 693 | |
Poland | |
Communication Services | | | 0 | | | | 889 | | | | 0 | | | | 889 | |
Energy | | | 0 | | | | 2,037 | | | | 0 | | | | 2,037 | |
Financials | | | 0 | | | | 6,058 | | | | 0 | | | | 6,058 | |
Information Technology | | | 0 | | | | 525 | | | | 0 | | | | 525 | |
Materials | | | 0 | | | | 3,944 | | | | 0 | | | | 3,944 | |
Utilities | | | 0 | | | | 3,623 | | | | 0 | | | | 3,623 | |
Russia | |
Communication Services | | | 0 | | | | 15,891 | | | | 0 | | | | 15,891 | |
Consumer Staples | | | 0 | | | | 10,315 | | | | 0 | | | | 10,315 | |
Energy | | | 28 | | | | 29,076 | | | | 0 | | | | 29,104 | |
Financials | | | 0 | | | | 4,087 | | | | 0 | | | | 4,087 | |
Industrials | | | 324 | | | | 597 | | | | 0 | | | | 921 | |
Materials | | | 622 | | | | 36,853 | | | | 0 | | | | 37,475 | |
Real Estate | | | 0 | | | | 984 | | | | 0 | | | | 984 | |
Utilities | | | 0 | | | | 11,081 | | | | 0 | | | | 11,081 | |
South Africa | |
Communication Services | | | 3,448 | | | | 8,185 | | | | 0 | | | | 11,633 | |
Consumer Discretionary | | | 3,152 | | | | 1,814 | | | | 0 | | | | 4,966 | |
Consumer Staples | | | 4,948 | | | | 0 | | | | 0 | | | | 4,948 | |
Energy | | | 354 | | | | 0 | | | | 0 | | | | 354 | |
Financials | | | 1,763 | | | | 16,903 | | | | 0 | | | | 18,666 | |
Health Care | | | 2,999 | | | | 1,687 | | | | 0 | | | | 4,686 | |
Industrials | | | 2,279 | | | | 0 | | | | 0 | | | | 2,279 | |
Materials | | | 8,740 | | | | 7,354 | | | | 0 | | | | 16,094 | |
South Korea | |
Communication Services | | | 7,124 | | | | 9,982 | | | | 0 | | | | 17,106 | |
Consumer Discretionary | | | 0 | | | | 87,268 | | | | 0 | | | | 87,268 | |
Consumer Staples | | | 0 | | | | 8,592 | | | | 0 | | | | 8,592 | |
Energy | | | 0 | | | | 3,516 | | | | 0 | | | | 3,516 | |
Financials | | | 0 | | | | 37,013 | | | | 0 | | | | 37,013 | |
Industrials | | | 0 | | | | 44,595 | | | | 0 | | | | 44,595 | |
Information Technology | | | 0 | | | | 74,683 | | | | 0 | | | | 74,683 | |
Materials | | | 0 | | | | 32,192 | | | | 0 | | | | 32,192 | |
Utilities | | | 0 | | | | 16,513 | | | | 0 | | | | 16,513 | |
Taiwan | |
Communication Services | | | 0 | | | | 2,482 | | | | 0 | | | | 2,482 | |
Consumer Discretionary | | | 0 | | | | 5,959 | | | | 0 | | | | 5,959 | |
Consumer Staples | | | 0 | | | | 1,911 | | | | 0 | | | | 1,911 | |
Financials | | | 0 | | | | 23,828 | | | | 0 | | | | 23,828 | |
Industrials | | | 0 | | | | 6,217 | | | | 0 | | | | 6,217 | |
Information Technology | | | 0 | | | | 200,545 | | | | 0 | | | | 200,545 | |
Materials | | | 0 | | | | 3,770 | | | | 0 | | | | 3,770 | |
Real Estate | | | 0 | | | | 402 | | | | 0 | | | | 402 | |
| | | | | | |
| 42 | | PIMCO EQUITY SERIES | | | See Accompanying Notes | |
| | | | | | | | |
| | | | | | December 31, 2020 | | (Unaudited) |
| | | | | | | | | | | | | | | | |
| Category and Subcategory | | Level 1 | | | Level 2 | | | Level 3 | | | Fair
Value at
12/31/2020 | |
Thailand | |
Communication Services | | $ | 0 | | | $ | 721 | | | $ | 0 | | | $ | 721 | |
Consumer Staples | | | 0 | | | | 1,988 | | | | 0 | | | | 1,988 | |
Energy | | | 0 | | | | 11,344 | | | | 0 | | | | 11,344 | |
Financials | | | 0 | | | | 19,112 | | | | 0 | | | | 19,112 | |
Industrials | | | 12,643 | | | | 0 | | | | 0 | | | | 12,643 | |
Materials | | | 0 | | | | 4,280 | | | | 0 | | | | 4,280 | |
Real Estate | | | 0 | | | | 294 | | | | 0 | | | | 294 | |
Turkey | |
Communication Services | | | 1,381 | | | | 1,397 | | | | 0 | | | | 2,778 | |
Consumer Discretionary | | | 324 | | | | 3,282 | | | | 0 | | | | 3,606 | |
Consumer Staples | | | 542 | | | | 373 | | | | 0 | | | | 915 | |
Energy | | | 0 | | | | 1,094 | | | | 0 | | | | 1,094 | |
Financials | | | 1,698 | | | | 23,850 | | | | 0 | | | | 25,548 | |
Industrials | | | 0 | | | | 2,661 | | | | 0 | | | | 2,661 | |
Materials | | | 0 | | | | 2,293 | | | | 0 | | | | 2,293 | |
Utilities | | | 405 | | | | 0 | | | | 0 | | | | 405 | |
United States | |
Consumer Discretionary | | | 0 | | | | 872 | | | | 0 | | | | 872 | |
Preferred Stocks | |
Brazil | |
Banking & Finance | | | 0 | | | | 31,052 | | | | 0 | | | | 31,052 | |
Industrials | | | 0 | | | | 13,173 | | | | 0 | | | | 13,173 | |
Utilities | | | 0 | | | | 12,877 | | | | 0 | | | | 12,877 | |
Chile | |
Industrials | | | 651 | | | | 1,352 | | | | 0 | | | | 2,003 | |
| | | | | | | | | | | | | | | | |
| Category and Subcategory | | Level 1 | | | Level 2 | | | Level 3 | | | Fair
Value at
12/31/2020 | |
Russia | |
Utilities | | $ | 0 | | | $ | 1,903 | | | $ | 0 | | | $ | 1,903 | |
Real Estate Investment Trusts | |
Mexico | |
Real Estate | | | 738 | | | | 0 | | | | 0 | | | | 738 | |
South Africa | |
Real Estate | | | 7 | | | | 301 | | | | 0 | | | | 308 | |
Turkey | |
Real Estate | | | 0 | | | | 7,369 | | | | 0 | | | | 7,369 | |
Rights | |
Chile | |
Utilities | | | 13 | | | | 0 | | | | 0 | | | | 13 | |
Warrants | |
United Kingdom | |
Financials | | | 0 | | | | 1,289 | | | | 0 | | | | 1,289 | |
Short-Term Instruments | |
Repurchase Agreements | | | 0 | | | | 3,506 | | | | 0 | | | | 3,506 | |
| | | | | | | | | | | | | | | | |
| | $ | 135,904 | | | $ | 1,539,557 | | | $ | 666 | | | $ | 1,676,127 | |
| | | | | | | | | | | | | | | | |
|
Investments in Affiliates, at Value | |
Short-Term Instruments | |
Mutual Funds | | | 46,417 | | | | 0 | | | | 0 | | | | 46,417 | |
| | | | | | | | | | | | | | | | |
| | | | |
Total Investments | | $ | 182,321 | | | $ | 1,539,557 | | | $ | 666 | | | $ | 1,722,544 | |
| | | | | | | | | | | | | | | | |
There were no significant transfers into or out of Level 3 during the period ended December 31, 2020.
| | | | | | | | | | | | |
| See Accompanying Notes | | | SEMIANNUAL REPORT | | | | | | | DECEMBER 31, 2020 | | | 43 |
| | | | | | | | |
| Schedule of Investments | | PIMCO RAE Global Fund | | | | December 31, 2020 | | (Unaudited) |
(Amounts in thousands*, except number of shares, contracts, units and ounces, if any)
| | | | | | | | | | | | |
| | | | | SHARES | | | | | MARKET
VALUE
(000S) | |
| INVESTMENTS IN AFFILIATES 100.1% | |
| |
| MUTUAL FUNDS (a) 100.1% | |
| |
| UNITED STATES 100.1% | |
| | | | |
PIMCO RAE Emerging Markets Fund | | | | | 4,273,938 | | | $ | | | 42,697 | |
| | | | |
PIMCO RAE International Fund | | | | | 12,940,293 | | | | | | 128,756 | |
| | | | |
PIMCO RAE US Fund | | | | | 11,296,269 | | | | | | 131,827 | |
| | | | | | | | | | | | |
| Total Mutual Funds (Cost $250,166) | | | 303,280 | |
| | | | |
| | | | |
| | | | | | | | | | | | |
Total Investments in Affiliates
(Cost $250,166) | | | 303,280 | |
| | | | |
| | | | | | | | | | | | |
Total Investments 100.1%
(Cost $250,166) | | | $ | | | 303,280 | |
| |
| Other Assets and Liabilities, net (0.1)% | | | (278 | ) |
| | | | |
| Net Assets 100.0% | | | $ | | | 303,002 | |
| | | | | | | | | | | | |
NOTES TO SCHEDULE OF INVESTMENTS:
| * | 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, 2020 in valuing the Fund’s assets and liabilities:
| | | | | | | | | | | | | | | | |
| Category and Subcategory | | Level 1 | | | Level 2 | | | Level 3 | | | Fair
Value at
12/31/2020 | |
Mutual Funds | |
United States | | $ | 303,280 | | | $ | 0 | | | $ | 0 | | | $ | 303,280 | |
| | | | | | | | | | | | | | | | |
| | | | |
Total Investments | | $ | 303,280 | | | $ | 0 | | | $ | 0 | | | $ | 303,280 | |
| | | | | | | | | | | | | | | | |
There were no significant transfers into or out of Level 3 during the period ended December 31, 2020.
| | | | | | |
| 44 | | PIMCO EQUITY SERIES | | | See Accompanying Notes | |
| | | | | | | | |
| Schedule of Investments | | PIMCO RAE Global ex-US Fund | | | | December 31, 2020 | | (Unaudited) |
(Amounts in thousands*, except number of shares, contracts, units and ounces, if any)
| | | | | | | | | | | | |
| | | | | | | | | | MARKET
VALUE
(000S) | |
| INVESTMENTS IN SECURITIES 0.2% | |
| |
| SHORT-TERM INSTRUMENTS 0.2% | |
| | | | | | | | | | | | |
| REPURCHASE AGREEMENTS (b) 0.2% | |
| | | | | | | | $ | | | 136 | |
| | | | | | | | | | | | |
Total Short-Term Instruments
(Cost $136) | | | | | | 136 | |
| | | | | | | | | | | | |
| | | | |
| | | | | | | | | | | | |
Total Investments in Securities
(Cost $136) | | | | | | 136 | |
| | | | | | | | | | | | |
| |
| | | | | | | | | | | | |
| | | | | SHARES | | | | | MARKET
VALUE
(000S) | |
| INVESTMENTS IN AFFILIATES 99.8% | |
| |
| MUTUAL FUNDS (a) 99.8% | |
| |
| UNITED STATES 99.8% | |
| | | | |
PIMCO RAE Emerging Markets Fund | | | | | 2,011,921 | | | $ | | | 20,099 | |
| | | | |
PIMCO RAE International Fund | | | | | 6,089,906 | | | | | | 60,595 | |
| | | | | | | | | | | | |
| Total Mutual Funds (Cost $75,564) | | | | | | 80,694 | |
| | | | | | | | | | | | |
| | | | |
| | | | | | | | | | | | |
Total Investments in Affiliates
(Cost $75,564) | | | | | | 80,694 | |
| | | | |
| | | | | | | | | | | | |
Total Investments 100.0%
(Cost $75,700) | | | $ | | | 80,830 | |
| |
| Other Assets and Liabilities, net 0.0% | | | | | | (13 | ) |
| | | | | | | | | | | | |
| Net Assets 100.0% | | | $ | | | 80,817 | |
| | | | | | | | | | | | |
NOTES TO SCHEDULE OF INVESTMENTS:
| * | A zero balance may reflect actual amounts rounding to less than one thousand. |
| (a) | Institutional Class Shares of each Fund. |
BORROWINGS AND OTHER FINANCING TRANSACTIONS
(b) 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 | |
| FICC | | | 0.000 | % | | | 12/31/2020 | | | | 01/04/2021 | | | $ | 136 | | | U.S. Treasury Bills 0.000% due 12/30/2021 | | $ | (139 | ) | | $ | 136 | | | $ | 136 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total Repurchase Agreements | | | | | $ | (139 | ) | | $ | 136 | | | $ | 136 | |
| | | | | | | | | | | | | | | |
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, 2020:
| | | | | | | | | | | | | | | | | | | | | | | | |
| Counterparty | | Repurchase
Agreement
Proceeds
to be
Received | | | Payable for
Reverse
Repurchase
Agreements | | | Payable for
Sale-Buyback
Transactions | | | Total
Borrowings and
Other Financing
Transactions | | | Collateral
Pledged/(Received) | | | Net Exposure(1) | |
Global/Master Repurchase Agreement | |
FICC | | $ | 136 | | | $ | 0 | | | $ | 0 | | | $ | 136 | | | $ | (139 | ) | | $ | (3 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total Borrowings and Other Financing Transactions | | $ | 136 | | | $ | 0 | | | $ | 0 | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | |
| (1) | Net Exposure represents the net receivable/(payable) that would be due from/to the counterparty in the event of default. Exposure from 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. |
FAIR VALUE MEASUREMENTS
The following is a summary of the fair valuations according to the inputs used as of December 31, 2020 in valuing the Fund’s assets and liabilities:
| | | | | | | | | | | | | | | | |
| Category and Subcategory | | Level 1 | | | Level 2 | | | Level 3 | | | Fair
Value at
12/31/2020 | |
Investments in Securities, at Value | |
Short-Term Instruments | |
Repurchase Agreements | | $ | 0 | | | $ | 136 | | | $ | 0 | | | $ | 136 | |
| | | | | | | | | | | | | | | | |
| | $ | 0 | | | $ | 136 | | | $ | 0 | | | $ | 136 | |
| | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | |
| Category and Subcategory | | Level 1 | | | Level 2 | | | Level 3 | | | Fair
Value at
12/31/2020 | |
Investments in Affiliates, at Value | |
Mutual Funds | |
United States | | $ | 80,694 | | | $ | 0 | | | $ | 0 | | | $ | 80,694 | |
| | | | | | | | | | | | | | | | |
| | | | |
Total Investments | | $ | 80,694 | | | $ | 136 | | | $ | 0 | | | $ | 80,830 | |
| | | | | | | | | | | | | | | | |
There were no significant transfers into or out of Level 3 during the period ended December 31, 2020.
| | | | | | | | | | | | |
| See Accompanying Notes | | | SEMIANNUAL REPORT | | | | | | | DECEMBER 31, 2020 | | | 45 |
| | | | | | | | |
| Schedule of Investments | | PIMCO RAE International Fund | | | | | | |
(Amounts in thousands*, except number of shares, contracts, units and ounces, if any)
| | | | | | | | | | | | |
| | | | | SHARES | | | | | MARKET
VALUE
(000S) | |
| INVESTMENTS IN SECURITIES 100.0% | |
| |
| COMMON STOCKS 99.1% | |
| |
| AUSTRALIA 6.5% | |
| |
| COMMUNICATION SERVICES 0.4% | |
| | | | |
Telstra Corp. Ltd. | | | | | 1,986,539 | | | $ | | | 4,562 | |
| | | | | | | | | | | | |
| |
| CONSUMER DISCRETIONARY 0.4% | |
| | | | |
Crown Resorts Ltd. | | | | | 147,917 | | | | | | 1,101 | |
| | | | |
Star Entertainment Grp Ltd. | | | | | 74,555 | | | | | | 212 | |
| | | | |
Wesfarmers Ltd. | | | | | 69,659 | | | | | | 2,707 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 4,020 | |
| | | | | | | | | | | | |
| |
| CONSUMER STAPLES 0.7% | |
| | | | |
Coca-Cola Amatil Ltd. | | | | | 78,658 | | | | | | 784 | |
| | | | |
Coles Group Ltd. | | | | | 124,137 | | | | | | 1,734 | |
| | | | |
Metcash Ltd. | | | | | 863,207 | | | | | | 2,252 | |
| | | | |
Woolworths Group Ltd. | | | | | 109,588 | | | | | | 3,322 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 8,092 | |
| | | | | | | | | | | | |
| |
| ENERGY 0.1% | |
| | | | |
Woodside Petroleum Ltd. | | | | | 38,853 | | | | | | 682 | |
| | | | | | | | | | | | |
| |
| FINANCIALS 2.6% | |
| | | | |
AMP Ltd. | | | | | 1,706,769 | | | | | | 2,051 | |
| | | | |
Australia & New Zealand Banking Group Ltd. | | | | | 364,849 | | | | | | 6,402 | |
| | | | |
Bank of Queensland Ltd. (c) | | | | | 68,090 | | | | | | 407 | |
| | | | |
Bendigo & Adelaide Bank Ltd. | | | | | 90,082 | | | | | | 649 | |
| | | | |
Commonwealth Bank of Australia | | | | | 113,352 | | | | | | 7,205 | |
| | | | |
Insurance Australia Group Ltd. | | | | | 64,694 | | | | | | 235 | |
| | | | |
Macquarie Group Ltd. | | | | | 13,215 | | | | | | 1,410 | |
| | | | |
National Australia Bank Ltd. | | | | | 99,797 | | | | | | 1,740 | |
| | | | |
QBE Insurance Group Ltd. | | | | | 65,210 | | | | | | 425 | |
| | | | |
Suncorp Group Ltd. | | | | | 290,762 | | | | | | 2,188 | |
| | | | |
Westpac Banking Corp. | | | | | 374,023 | | | | | | 5,566 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 28,278 | |
| | | | | | | | | | | | |
| |
| HEALTH CARE 0.0% | |
| | | | |
Healius Ltd. | | | | | 79,808 | | | | | | 229 | |
| | | | | | | | | | | | |
| |
| INDUSTRIALS 0.3% | |
| | | | |
Aurizon Holdings Ltd. | | | | | 380,443 | | | | | | 1,143 | |
| | | | |
Brambles Ltd. | | | | | 52,153 | | | | | | 428 | |
| | | | |
CIMIC Group Ltd. | | | | | 14,716 | | | | | | 277 | |
| | | | |
Downer EDI Ltd. | | | | | 156,438 | | | | | | 643 | |
| | | | |
Qantas Airways Ltd. | | | | | 230,822 | | | | | | 865 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 3,356 | |
| | | | | | | | | | | | |
| |
| MATERIALS 1.9% | |
| | | | |
BHP Group Ltd. | | | | | 135,703 | | | | | | 4,434 | |
| | | | |
BHP Group PLC | | | | | 65,209 | | | | | | 1,722 | |
| | | | |
Fortescue Metals Group Ltd. | | | | | 280,771 | | | | | | 5,071 | |
| | | | |
Incitec Pivot Ltd. | | | | | 331,346 | | | | | | 583 | |
| | | | |
Orica Ltd. | | | | | 44,184 | | | | | | 517 | |
| | | | |
Rio Tinto Ltd. | | | | | 89,963 | | | | | | 7,911 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 20,238 | |
| | | | | | | | | | | | |
| |
| REAL ESTATE 0.0% | |
| | | | |
Lendlease Corp. Ltd. | | | | | 31,185 | | | | | | 315 | |
| | | | | | | | | | | | |
| |
| | | | | | | | | | | | |
| | | | | SHARES | | | | | MARKET
VALUE
(000S) | |
| UTILITIES 0.1% | |
| | | | |
AGL Energy Ltd. | | | | | 97,310 | | | $ | | | 898 | |
| | | | | | | | | | | | |
Total Australia | | | | | | | | | | | 70,670 | |
| | | | | | | | | | | | |
| |
| AUSTRIA 0.3% | |
| |
| FINANCIALS 0.0% | |
| | | | |
Erste Group Bank AG (a) | | | | | 8,323 | | | | | | 253 | |
| | | | | | | | | | | | |
| |
| INDUSTRIALS 0.0% | |
| | | | |
Andritz AG | | | | | 7,308 | | | | | | 335 | |
| | | | | | | | | | | | |
| |
| MATERIALS 0.3% | |
| | | | |
voestalpine AG | | | | | 73,629 | | | | | | 2,628 | |
| | | | | | | | | | | | |
Total Austria | | | | | | | | | | | 3,216 | |
| | | | | | | | | | | | |
| |
| BELGIUM 0.9% | |
| |
| COMMUNICATION SERVICES 0.1% | |
| | | | |
Proximus SADP | | | | | 33,849 | | | | | | 669 | |
| | | | | | | | | | | | |
| |
| CONSUMER STAPLES 0.3% | |
| | | | |
Anheuser-Busch InBev S.A. NV | | | | | 27,770 | | | | | | 1,937 | |
| | | | |
Etablissements Franz Colruyt NV | | | | | 16,864 | | | | | | 999 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 2,936 | |
| | | | | | | | | | | | |
| |
| FINANCIALS 0.3% | |
| | | | |
Ageas S.A. | | | | | 23,677 | | | | | | 1,257 | |
| | | | |
KBC Group NV | | | | | 30,079 | | | | | | 2,105 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 3,362 | |
| | | | | | | | | | | | |
| |
| HEALTH CARE 0.1% | |
| | | | |
UCB S.A. | | | | | 16,450 | | | | | | 1,699 | |
| | | | | | | | | | | | |
| |
| INDUSTRIALS 0.0% | |
| | | | |
bpost S.A. | | | | | 21,916 | | | | | | 227 | |
| | | | | | | | | | | | |
| |
| MATERIALS 0.1% | |
| | | | |
Solvay S.A. | | | | | 9,589 | | | | | | 1,131 | |
| | | | | | | | | | | | |
Total Belgium | | | | | | | | | | | 10,024 | |
| | | | | | | | | | | | |
| |
| CANADA 4.8% | |
| |
| COMMUNICATION SERVICES 0.2% | |
| | | | |
BCE, Inc. | | | | | 21,898 | | | | | | 936 | |
| | | | |
Corus Entertainment, Inc. ‘B’ | | | | | 65,570 | | | | | | 221 | |
| | | | |
TELUS Corp. | | | | | 42,867 | | | | | | 849 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 2,006 | |
| | | | | | | | | | | | |
| |
| CONSUMER DISCRETIONARY 1.6% | |
| | | | |
Canadian Tire Corp. Ltd. ‘A’ | | | | | 12,475 | | | | | | 1,640 | |
| | | | |
Magna International, Inc. | | | | | 224,146 | | | | | | 15,867 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 17,507 | |
| | | | | | | | | | | | |
| |
| CONSUMER STAPLES 0.2% | |
| | | | |
Empire Co. Ltd. ‘A’ | | | | | 18,450 | | | | | | 504 | |
| | | | |
George Weston Ltd. | | | | | 18,643 | | | | | | 1,393 | |
| | | | |
Loblaw Cos. Ltd. | | | | | 10,639 | | | | | | 525 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 2,422 | |
| | | | | | | | | | | | |
| |
| | | | | | | | | | | | |
| | | | | SHARES | | | | | MARKET
VALUE
(000S) | |
| ENERGY 0.4% | |
| | | | |
ARC Resources Ltd. | | | | | 223,404 | | | $ | | | 1,053 | |
| | | | |
Crescent Point Energy Corp. | | | | | 595,799 | | | | | | 1,390 | |
| | | | |
MEG Energy Corp. (a) | | | | | 70,541 | | | | | | 247 | |
| | | | |
Peyto Exploration & Development Corp. | | | | | 91,972 | | | | | | 211 | |
| | | | |
Suncor Energy, Inc. | | | | | 100,410 | | | | | | 1,684 | |
| | | | |
TC Energy Corp. | | | | | 8,668 | | | | | | 352 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 4,937 | |
| | | | | | | | | | | | |
| |
| FINANCIALS 1.1% | |
| | | | |
Bank of Montreal | | | | | 11,753 | | | | | | 894 | |
| | | | |
Bank of Nova Scotia (c) | | | | | 26,727 | | | | | | 1,445 | |
| | | | |
Brookfield Asset Management, Inc. ‘A’ | | | | | 10,978 | | | | | | 454 | |
| | | | |
Canadian Imperial Bank of Commerce (c) | | | | | 7,403 | | | | | | 632 | |
| | | | |
CI Financial Corp. (c) | | | | | 39,185 | | | | | | 486 | |
| | | | |
Great-West Lifeco, Inc. (e) | | | | | 12,839 | | | | | | 306 | |
| | | | |
Manulife Financial Corp. | | | | | 29,801 | | | | | | 530 | |
| | | | |
National Bank of Canada | | | | | 12,809 | | | | | | 721 | |
| | | | |
Onex Corp. | | | | | 7,301 | | | | | | 419 | |
| | | | |
Power Corp. of Canada (c) | | | | | 100,554 | | | | | | 2,309 | |
| | | | |
Royal Bank of Canada | | | | | 20,026 | | | | | | 1,645 | |
| | | | |
Sun Life Financial, Inc. | | | | | 17,556 | | | | | | 781 | |
| | | | |
Toronto-Dominion Bank | | | | | 30,799 | | | | | | 1,740 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 12,362 | |
| | | | | | | | | | | | |
| |
| INDUSTRIALS 0.5% | |
| | | | |
Air Canada (a) | | | | | 87,332 | | | | | | 1,562 | |
| | | | |
Canadian National Railway Co. | | | | | 2,576 | | | | | | 283 | |
| | | | |
Canadian Pacific Railway Ltd. | | | | | 1,625 | | | | | | 564 | |
| | | | |
Thomson Reuters Corp. | | | | | 31,208 | | | | | | 2,554 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 4,963 | |
| | | | | | | | | | | | |
| |
| MATERIALS 0.5% | |
| | | | |
Canfor Corp. (a) | | | | | 43,564 | | | | | | 786 | |
| | | | |
Kinross Gold Corp. | | | | | 64,124 | | | | | | 471 | |
| | | | |
Lundin Mining Corp. | | | | | 31,507 | | | | | | 280 | |
| | | | |
Norbord, Inc. | | | | | 20,618 | | | | | | 890 | |
| | | | |
Teck Resources Ltd. ‘B’ | | | | | 97,100 | | | | | | 1,762 | |
| | | | |
Turquoise Hill Resources Ltd. (a) | | | | | 43,729 | | | | | | 544 | |
| | | | |
Yamana Gold, Inc. | | | | | 86,122 | | | | | | 492 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 5,225 | |
| | | | | | | | | | | | |
| |
| UTILITIES 0.3% | |
| | | | |
Atco Ltd. ‘I’ | | | | | 25,336 | | | | | | 726 | |
| | | | |
Canadian Utilities Ltd. ‘A’ | | | | | 21,834 | | | | | | 533 | |
| | | | |
Fortis, Inc. | | | | | 5,262 | | | | | | 215 | |
| | | | |
Hydro One Ltd. | | | | | 29,062 | | | | | | 654 | |
| | | | |
TransAlta Corp. | | | | | 172,513 | | | | | | 1,311 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 3,439 | |
| | | | | | | | | | | | |
Total Canada | | | | | | | | | | | 52,861 | |
| | | | | | | | | | | | |
| |
| DENMARK 0.8% | |
| |
| CONSUMER DISCRETIONARY 0.0% | |
| | | | |
Pandora A/S | | | | | 4,119 | | | | | | 461 | |
| | | | | | | | | | | | |
| |
| CONSUMER STAPLES 0.1% | |
| | | | |
Carlsberg A/S ‘B’ | | | | | 4,725 | | | | | | 757 | |
| | | | | | | | | | | | |
| |
| | | | | | |
| 46 | | PIMCO EQUITY SERIES | | | See Accompanying Notes | |
| | | | | | | | |
| | | | | | December 31, 2020 | | (Unaudited) |
| | | | | | | | | | | | |
| | | | | SHARES | | | | | MARKET
VALUE
(000S) | |
| FINANCIALS 0.2% | |
| | | | |
Danske Bank A/S | | | | | 100,799 | | | $ | | | 1,666 | |
| | | | | | | | | | | | |
| |
| HEALTH CARE 0.0% | |
| | | | |
Novo Nordisk A/S ‘B’ | | | | | 4,982 | | | | | | 348 | |
| | | | | | | | | | | | |
| |
| INDUSTRIALS 0.5% | |
| | | | |
AP Moller - Maersk A/S ‘B’ | | | | | 993 | | | | | | 2,210 | |
| | | | |
ISS A/S (a) | | | | | 133,156 | | | | | | 2,290 | |
| | | | |
Vestas Wind Systems A/S | | | | | 2,504 | | | | | | 592 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 5,092 | |
| | | | | | | | | | | | |
Total Denmark | | | | | | | | | | | 8,324 | |
| | | | | | | | | | | | |
| |
| FINLAND 0.7% | |
| |
| FINANCIALS 0.5% | |
| | | | |
Nordea Bank Abp (a) | | | | | 722,682 | | | | | | 5,923 | |
| | | | | | | | | | | | |
| |
| INDUSTRIALS 0.0% | |
| | | | |
Kone Oyj ‘B’ | | | | | 6,278 | | | | | | 512 | |
| | | | | | | | | | | | |
| |
| INFORMATION TECHNOLOGY 0.1% | |
| | | | |
Nokia Oyj | | | | | 153,665 | | | | | | 593 | |
| | | | | | | | | | | | |
| |
| MATERIALS 0.1% | |
| | | | |
Stora Enso Oyj ‘R’ | | | | | 12,839 | | | | | | 246 | |
| | | | |
UPM-Kymmene Oyj | | | | | 24,595 | | | | | | 917 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 1,163 | |
| | | | | | | | | | | | |
Total Finland | | | | | | | | | | | 8,191 | |
| | | | | | | | | | | | |
| |
| FRANCE 8.0% | |
| |
| COMMUNICATION SERVICES 0.6% | |
| | | | |
Bollore S.A. | | | | | 64,632 | | | | | | 268 | |
| | | | |
Eutelsat Communications S.A. | | | | | 22,746 | | | | | | 257 | |
| | | | |
Lagardere S.C.A. (c) | | | | | 17,957 | | | | | | 449 | |
| | | | |
Orange S.A. | | | | | 329,465 | | | | | | 3,922 | |
| | | | |
Publicis Groupe S.A. | | | | | 7,614 | | | | | | 379 | |
| | | | |
Vivendi S.A. | | | | | 35,310 | | | | | | 1,139 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 6,414 | |
| | | | | | | | | | | | |
| |
| CONSUMER DISCRETIONARY 1.8% | |
| | | | |
Cie Generale des Etablissements Michelin S.C.A. | | | | | 12,046 | | | | | | 1,551 | |
| | | | |
LVMH Moet Hennessy Louis Vuitton SE | | | | | 1,761 | | | | | | 1,102 | |
| | | | |
Peugeot S.A. (a) | | | | | 46,639 | | | | | | 1,277 | |
| | | | |
Renault S.A. | | | | | 65,443 | | | | | | 2,865 | |
| | | | |
Sodexo S.A. | | | | | 2,782 | | | | | | 235 | |
| | | | |
Valeo S.A. | | | | | 318,985 | | | | | | 12,582 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 19,612 | |
| | | | | | | | | | | | |
| |
| CONSUMER STAPLES 0.6% | |
| | | | |
Carrefour S.A. | | | | | 217,661 | | | | | | 3,727 | |
| | | | |
Casino Guichard Perrachon S.A. (c) | | | | | 63,327 | | | | | | 1,947 | |
| | | | |
Danone S.A. | | | | | 8,628 | | | | | | 568 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 6,242 | |
| | | | | | | | | | | | |
| |
| ENERGY 0.3% | |
| | | | |
Total SE | | | | | 72,348 | | | | | | 3,123 | |
| | | | | | | | | | | | |
| |
| | | | | | | | | | | | |
| | | | | SHARES | | | | | MARKET
VALUE
(000S) | |
| FINANCIALS 0.7% | |
| | | | |
AXA S.A. | | | | | 71,300 | | | $ | | | 1,710 | |
| | | | |
BNP Paribas S.A. | | | | | 57,306 | | | | | | 3,025 | |
| | | | |
Credit Agricole S.A. | | | | | 47,860 | | | | | | 605 | |
| | | | |
Natixis S.A. | | | | | 269,206 | | | | | | 922 | |
| | | | |
SCOR SE | | | | | 9,208 | | | | | | 299 | |
| | | | |
Societe Generale S.A. (a) | | | | | 71,749 | | | | | | 1,492 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 8,053 | |
| | | | | | | | | | | | |
| |
| HEALTH CARE 0.5% | |
| | | | |
Sanofi | | | | | 52,550 | | | | | | 5,093 | |
| | | | | | | | | | | | |
| |
| INDUSTRIALS 1.9% | |
| | | | |
Air France-KLM (a)(c) | | | | | 961,462 | | | | | | 5,996 | |
| | | | |
Alstom S.A. | | | | | 13,731 | | | | | | 782 | |
| | | | |
Bouygues S.A. | | | | | 17,622 | | | | | | 725 | |
| | | | |
Bureau Veritas S.A. (a) | | | | | 8,312 | | | | | | 222 | |
| | | | |
Cie de Saint-Gobain (a) | | | | | 80,687 | | | | | | 3,711 | |
| | | | |
Eiffage S.A. (a) | | | | | 8,064 | | | | | | 779 | |
| | | | |
Rexel S.A. | | | | | 283,111 | | | | | | 4,468 | |
| | | | |
Schneider Electric SE | | | | | 25,821 | | | | | | 3,732 | |
| | | | |
Vinci S.A. | | | | | 7,727 | | | | | | 770 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 21,185 | |
| | | | | | | | | | | | |
| |
| INFORMATION TECHNOLOGY 0.1% | |
| | | | |
Atos SE (a) | | | | | 4,516 | | | | | | 412 | |
| | | | |
Capgemini SE | | | | | 2,632 | | | | | | 410 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 822 | |
| | | | | | | | | | | | |
| |
| MATERIALS 0.0% | |
| | | | |
Air Liquide S.A. | | | | | 1,271 | | | | | | 208 | |
| | | | |
Arkema S.A. | | | | | 2,129 | | | | | | 244 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 452 | |
| | | | | | | | | | | | |
| |
| UTILITIES 1.5% | |
| | | | |
Electricite de France S.A. | | | | | 357,759 | | | | | | 5,661 | |
| | | | |
Engie S.A. | | | | | 471,463 | | | | | | 7,228 | |
| | | | |
Suez S.A. | | | | | 99,676 | | | | | | 1,976 | |
| | | | |
Veolia Environnement S.A. | | | | | 65,353 | | | | | | 1,611 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 16,476 | |
| | | | | | | | | | | | |
Total France | | | | | | | | | | | 87,472 | |
| | | | | | | | | | | | |
| |
| GERMANY 11.4% | |
| |
| COMMUNICATION SERVICES 0.5% | |
| | | | |
Deutsche Telekom AG | | | | | 245,384 | | | | | | 4,479 | |
| | | | |
ProSiebenSat.1 Media SE (a) | | | | | 22,306 | | | | | | 375 | |
| | | | |
Telefonica Deutschland Holding AG | | | | | 130,983 | | | | | | 361 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 5,215 | |
| | | | | | | | | | | | |
| |
| CONSUMER DISCRETIONARY 1.9% | |
| | | | |
adidas AG (a) | | | | | 1,973 | | | | | | 718 | |
| | | | |
Bayerische Motoren Werke AG | | | | | 66,514 | | | | | | 5,870 | |
| | | | |
Ceconomy AG | | | | | 43,438 | | | | | | 301 | |
| | | | |
Continental AG | | | | | 14,583 | | | | | | 2,170 | |
| | | | |
Daimler AG | | | | | 151,794 | | | | | | 10,759 | |
| | | | |
Hella GmbH & Co. KGaA | | | | | 7,240 | | | | | | 468 | |
| | | | |
Hugo Boss AG | | | | | 10,340 | | | | | | 343 | |
| | | | |
TUI AG (c) | | | | | 31,332 | | | | | | 197 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 20,826 | |
| | | | | | | | | | | | |
| |
| | | | | | | | | | | | |
| | | | | SHARES | | | | | MARKET
VALUE
(000S) | |
| CONSUMER STAPLES 0.3% | |
| | | | |
Metro AG | | | | | 248,058 | | | $ | | | 2,786 | |
| | | | |
Suedzucker AG | | | | | 17,622 | | | | | | 252 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 3,038 | |
| | | | | | | | | | | | |
| |
| FINANCIALS 1.9% | |
| | | | |
Commerzbank AG (a) | | | | | 175,607 | | | | | | 1,135 | |
| | | | |
Deutsche Bank AG | | | | | 1,153,251 | | | | | | 12,685 | |
| | | | |
Deutsche Pfandbriefbank AG | | | | | 21,668 | | | | | | 236 | |
| | | | |
Hannover Rueck SE | | | | | 3,780 | | | | | | 602 | |
| | | | |
Muenchener Rueckversicherungs-Gesellschaft AG in Muenchen | | | | | 17,021 | | | | | | 5,057 | |
| | | | |
Talanx AG | | | | | 17,739 | | | | | | 690 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 20,405 | |
| | | | | | | | | | | | |
| |
| HEALTH CARE 0.4% | |
| | | | |
Bayer AG | | | | | 34,652 | | | | | | 2,041 | |
| | | | |
Fresenius Medical Care AG & Co. KGaA | | | | | 11,748 | | | | | | 980 | |
| | | | |
Fresenius SE & Co. KGaA | | | | | 26,929 | | | | | | 1,245 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 4,266 | |
| | | | | | | | | | | | |
| |
| INDUSTRIALS 3.1% | |
| | | | |
Brenntag AG | | | | | 10,327 | | | | | | 803 | |
| | | | |
Deutsche Lufthansa AG (c) | | | | | 1,606,574 | | | | | | 21,258 | |
| | | | |
Deutsche Post AG | | | | | 47,430 | | | | | | 2,349 | |
| | | | |
GEA Group AG | | | | | 53,117 | | | | | | 1,900 | |
| | | | |
Hochtief AG | | | | | 4,767 | | | | | | 464 | |
| | | | |
OSRAM Licht AG | | | | | 23,297 | | | | | | 1,481 | |
| | | | |
Siemens AG | | | | | 42,502 | | | | | | 6,122 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 34,377 | |
| | | | | | | | | | | | |
| |
| INFORMATION TECHNOLOGY 0.1% | |
| | | | |
SAP SE | | | | | 7,455 | | | | | | 966 | |
| | | | | | | | | | | | |
| |
| MATERIALS 2.6% | |
| | | | |
Aurubis AG | | | | | 51,498 | | | | | | 4,019 | |
| | | | |
BASF SE | | | | | 62,562 | | | | | | 4,945 | |
| | | | |
Covestro AG | | | | | 224,569 | | | | | | 13,836 | |
| | | | |
Evonik Industries AG | | | | | 74,126 | | | | | | 2,423 | |
| | | | |
HeidelbergCement AG | | | | | 6,781 | | | | | | 505 | |
| | | | |
K+S AG | | | | | 75,629 | | | | | | 725 | |
| | | | |
Lanxess AG | | | | | 6,625 | | | | | | 504 | |
| | | | |
Salzgitter AG (a) | | | | | 56,453 | | | | | | 1,497 | |
| | | | |
thyssenkrupp AG | | | | | 55,708 | | | | | | 552 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 29,006 | |
| | | | | | | | | | | | |
| |
| UTILITIES 0.6% | |
| | | | |
E.ON SE | | | | | 294,890 | | | | | | 3,266 | |
| | | | |
RWE AG | | | | | 68,148 | | | | | | 2,883 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 6,149 | |
| | | | | | | | | | | | |
Total Germany | | | | | | | | | | | 124,248 | |
| | | | | | | | | | | | |
| |
| HONG KONG 2.1% | |
| |
| COMMUNICATION SERVICES 0.0% | |
| | | | |
PCCW Ltd. | | | | | 767,306 | | | | | | 462 | |
| | | | | | | | | | | | |
| |
| CONSUMER DISCRETIONARY 0.2% | |
| | | | |
SJM Holdings Ltd. | | | | | 609,000 | | | | | | 683 | |
| | | | |
Skyworth Group Ltd. | | | | | 988,215 | | | | | | 275 | |
| | | | | | | | | | | | |
| See Accompanying Notes | | | SEMIANNUAL REPORT | | | | | | | DECEMBER 31, 2020 | | | 47 |
| | | | | | | | |
| Schedule of Investments | | PIMCO RAE International Fund | | (Cont.) | | | | |
| | | | | | | | | | | | |
| | | | | SHARES | | | | | MARKET
VALUE
(000S) | |
| | | | |
Yue Yuen Industrial Holdings Ltd. | | | | | 611,000 | | | $ | | | 1,273 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 2,231 | |
| | | | | | | | | | | | |
| |
| FINANCIALS 0.1% | |
| | | | |
Hang Seng Bank Ltd. | | | | | 17,300 | | | | | | 299 | |
| | | | |
Hopson Development Holdings Ltd. | | | | | 198,000 | | | | | | 504 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 803 | |
| | | | | | | | | | | | |
| |
| INDUSTRIALS 0.2% | |
| | | | |
CK Hutchison Holdings Ltd. | | | | | 154,000 | | | | | | 1,075 | |
| | | | |
Jardine Matheson Holdings Ltd. | | | | | 5,800 | | | | | | 324 | |
| | | | |
MTR Corp. Ltd. | | | | | 48,000 | | | | | | 269 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 1,668 | |
| | | | | | | | | | | | |
| |
| INFORMATION TECHNOLOGY 0.8% | |
| | | | |
GCL-Poly Energy Holdings Ltd. (a)(c) | | | | | 41,682,000 | | | | | | 6,626 | |
| | | | |
Kingboard Holdings Ltd. | | | | | 294,000 | | | | | | 1,240 | |
| | | | |
Kingboard Laminates Holdings Ltd. | | | | | 349,500 | | | | | | 571 | |
| | | | |
VTech Holdings Ltd. | | | | | 56,000 | | | | | | 435 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 8,872 | |
| | | | | | | | | | | | |
| |
| MATERIALS 0.0% | |
| | | | |
Lee & Man Paper Manufacturing Ltd. | | | | | 282,000 | | | | | | 231 | |
| | | | | | | | | | | | |
| |
| REAL ESTATE 0.8% | |
| | | | |
CK Asset Holdings Ltd. | | | | | 70,500 | | | | | | 361 | |
| | | | |
Hang Lung Group Ltd. | | | | | 178,000 | | | | | | 443 | |
| | | | |
Hang Lung Properties Ltd. | | | | | 317,000 | | | | | | 835 | |
| | | | |
Henderson Land Development Co. Ltd. | | | | | 59,000 | | | | | | 229 | |
| | | | |
Hongkong Land Holdings Ltd. | | | | | 185,500 | | | | | | 766 | |
| | | | |
Hysan Development Co. Ltd. | | | | | 77,000 | | | | | | 282 | |
| | | | |
Kerry Properties Ltd. | | | | | 228,000 | | | | | | 577 | |
| | | | |
New World Development Co. Ltd. | | | | | 85,000 | | | | | | 395 | |
| | | | |
Shimao Property Holdings Ltd. | | | | | 176,500 | | | | | | 562 | |
| | | | |
Sino Land Co. Ltd. | | | | | 156,000 | | | | | | 203 | |
| | | | |
Sun Hung Kai Properties Ltd. | | | | | 71,000 | | | | | | 908 | |
| | | | |
Swire Pacific Ltd. ‘A’ | | | | | 346,500 | | | | | | 1,909 | |
| | | | |
Wharf Holdings Ltd. | | | | | 469,000 | | | | | | 1,260 | |
| | | | |
Wharf Real Estate Investment Co. Ltd. | | | | | 42,000 | | | | | | 218 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 8,948 | |
| | | | | | | | | | | | |
Total Hong Kong | | | | | | | | | | | 23,215 | |
| | | | | | | | | | | | |
| |
| IRELAND 0.9% | |
| |
| FINANCIALS 0.1% | |
| | | | |
Bank of Ireland Group PLC (a) | | | | | 235,465 | | | | | | 951 | |
| | | | | | | | | | | | |
| |
| HEALTH CARE 0.5% | |
| | | | |
Medtronic PLC | | | | | 44,955 | | | | | | 5,266 | |
| | | | | | | | | | | | |
| |
| INDUSTRIALS 0.1% | |
| | | | |
AerCap Holdings NV (a) | | | | | 21,378 | | | | | | 974 | |
| | | | |
Experian PLC | | | | | 12,738 | | | | | | 484 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 1,458 | |
| | | | | | | | | | | | |
| |
| | | | | | | | | | | | |
| | | | | SHARES | | | | | MARKET
VALUE
(000S) | |
| MATERIALS 0.2% | |
| | | | |
CRH PLC | | | | | 17,883 | | | $ | | | 761 | |
| | | | |
Smurfit Kappa Group PLC | | | | | 19,850 | | | | | | 922 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 1,683 | |
| | | | | | | | | | | | |
Total Ireland | | | | | | | | | | | 9,358 | |
| | | | | | | | | | | | |
| |
| ISRAEL 1.3% | |
| |
| COMMUNICATION SERVICES 0.1% | |
| | | | |
Bezeq The Israeli Telecommunication Corp. Ltd. (a) | | | | | 1,663,715 | | | | | | 1,654 | |
| | | | | | | | | | | | |
| |
| ENERGY 0.0% | |
| | | | |
Oil Refineries Ltd. (a) | | | | | 1,254,446 | | | | | | 284 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 284 | |
| | | | | | | | | | | | |
| |
| FINANCIALS 0.2% | |
| | | | |
Bank Hapoalim BM | | | | | 155,787 | | | | | | 1,070 | |
| | | | |
Bank Leumi Le-Israel BM | | | | | 92,384 | | | | | | 546 | |
| | | | |
Israel Discount Bank Ltd. ‘A’ | | | | | 95,393 | | | | | | 368 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 1,984 | |
| | | | | | | | | | | | |
| |
| HEALTH CARE 0.9% | |
| | | | |
Teva Pharmaceutical Industries Ltd. SP - ADR (a) | | | | | 995,586 | | | | | | 9,607 | |
| | | | | | | | | | | | |
| |
| MATERIALS 0.1% | |
| | | | |
ICL Group Ltd. | | | | | 139,850 | | | | | | 714 | |
| | | | | | | | | | | | |
Total Israel | | | | | | | | | | | 14,243 | |
| | | | | | | | | | | | |
| |
| ITALY 2.9% | |
| |
| COMMUNICATION SERVICES 0.2% | |
| | | | |
Telecom Italia SpA | | | | | 6,225,770 | | | | | | 2,890 | |
| | | | | | | | | | | | |
| |
| ENERGY 0.2% | |
| | | | |
Eni SpA | | | | | 200,995 | | | | | | 2,098 | |
| | | | | | | | | | | | |
| |
| FINANCIALS 1.3% | |
| | | | |
Assicurazioni Generali SpA | | | | | 206,195 | | | | | | 3,610 | |
| | | | |
Banca Monte dei Paschi di Siena SpA (a)(c) | | | | | 348,198 | | | | | | 450 | |
| | | | |
Banco BPM SpA (a) | | | | | 342,590 | | | | | | 760 | |
| | | | |
Intesa Sanpaolo SpA | | | | | 2,859,979 | | | | | | 6,760 | |
| | | | |
Poste Italiane SpA | | | | | 87,604 | | | | | | 896 | |
| | | | |
UniCredit SpA | | | | | 67,369 | | | | | | 632 | |
| | | | |
Unipol Gruppo Finanziario SpA (a) | | | | | 194,567 | | | | | | 935 | |
| | | | |
UnipolSai Assicurazioni SpA | | | | | 194,253 | | | | | | 515 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 14,558 | |
| | | | | | | | | | | | |
| |
| INDUSTRIALS 0.1% | |
| | | | |
Atlantia SpA | | | | | 11,595 | | | | | | 209 | |
| | | | |
Leonardo SpA | | | | | 61,832 | | | | | | 447 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 656 | |
| | | | | | | | | | | | |
| |
| UTILITIES 1.1% | |
| | | | |
Enel SpA | | | | | 1,172,883 | | | | | | 11,934 | |
| | | | | | | | | | | | |
Total Italy | | | | | | | | | | | 32,136 | |
| | | | | | | | | | | | |
| |
| | | | | | | | | | | | |
| | | | | SHARES | | | | | MARKET
VALUE
(000S) | |
| JAPAN 27.1% | |
| |
| COMMUNICATION SERVICES 1.6% | |
| | | | |
Dentsu, Inc. | | | | | 24,600 | | | $ | | | 732 | |
| | | | |
GungHo Online Entertainment, Inc. | | | | | 43,730 | | | | | | 979 | |
| | | | |
KDDI Corp. | | | | | 58,900 | | | | | | 1,747 | |
| | | | |
Nippon Telegraph & Telephone Corp. | | | | | 285,600 | | | | | | 7,328 | |
| | | | |
Nippon Television Holdings, Inc. | | | | | 15,700 | | | | | | 171 | |
| | | | |
SoftBank Group Corp. | | | | | 76,800 | | | | | | 5,962 | |
| | | | |
Yahoo Japan Corp. | | | | | 173,100 | | | | | | 1,048 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 17,967 | |
| | | | | | | | | | | | |
| |
| CONSUMER DISCRETIONARY 6.0% | |
| | | | |
Aisin Seiki Co. Ltd. | | | | | 21,700 | | | | | | 651 | |
| | | | |
Asics Corp. | | | | | 15,800 | | | | | | 304 | |
| | | | |
Bandai Namco Holdings, Inc. | | | | | 3,400 | | | | | | 294 | |
| | | | |
Bridgestone Corp. (c) | | | | | 94,500 | | | | | | 3,099 | |
| | | | |
Casio Computer Co. Ltd. | | | | | 36,700 | | | | | | 672 | |
| | | | |
DCM Holdings Co. Ltd. | | | | | 45,300 | | | | | | 518 | |
| | | | |
Denso Corp. | | | | | 9,500 | | | | | | 565 | |
| | | | |
EDION Corp. | | | | | 55,100 | | | | | | 560 | |
| | | | |
Haseko Corp. | | | | | 20,000 | | | | | | 230 | |
| | | | |
Honda Motor Co. Ltd. | | | | | 80,800 | | | | | | 2,280 | |
| | | | |
Isetan Mitsukoshi Holdings Ltd. | | | | | 132,600 | | | | | | 786 | |
| | | | |
Isuzu Motors Ltd. | | | | | 279,100 | | | | | | 2,657 | |
| | | | |
J Front Retailing Co. Ltd. | | | | | 24,900 | | | | | | 197 | |
| | | | |
K’s Holdings Corp. | | | | | 41,500 | | | | | | 578 | |
| | | | |
KYB Corp. | | | | | 11,300 | | | | | | 259 | |
| | | | |
Mazda Motor Corp. | | | | | 202,200 | | | | | | 1,354 | |
| | | | |
Nikon Corp. | | | | | 31,400 | | | | | | 198 | |
| | | | |
Nissan Motor Co. Ltd. | | | | | 799,500 | | | | | | 4,334 | |
| | | | |
NOK Corp. | | | | | 43,900 | | | | | | 472 | |
| | | | |
Panasonic Corp. | | | | | 2,013,200 | | | | | | 23,468 | |
| | | | |
Sega Sammy Holdings, Inc. | | | | | 18,700 | | | | | | 295 | |
| | | | |
Sekisui Chemical Co. Ltd. | | | | | 36,200 | | | | | | 686 | |
| | | | |
Sekisui House Ltd. | | | | | 133,500 | | | | | | 2,720 | |
| | | | |
Shimamura Co. Ltd. | | | | | 9,200 | | | | | | 967 | |
| | | | |
Skylark Co. Ltd. (c) | | | | | 13,700 | | | | | | 212 | |
| | | | |
Sony Corp. | | | | | 11,300 | | | | | | 1,139 | |
| | | | |
Subaru Corp. | | | | | 80,900 | | | | | | 1,619 | |
| | | | |
Sumitomo Electric Industries Ltd. | | | | | 154,700 | | | | | | 2,050 | |
| | | | |
Sumitomo Forestry Co. Ltd. | | | | | 23,700 | | | | | | 496 | |
| | | | |
Sumitomo Rubber Industries Ltd. | | | | | 53,500 | | | | | | 460 | |
| | | | |
Suzuki Motor Corp. | | | | | 100,200 | | | | | | 4,645 | |
| | | | |
Takashimaya Co. Ltd. | | | | | 42,400 | | | | | | 365 | |
| | | | |
Toyota Motor Corp. | | | | | 40,900 | | | | | | 3,156 | |
| | | | |
TS Tech Co. Ltd. | | | | | 17,400 | | | | | | 537 | |
| | | | |
Yamada Denki Co. Ltd. | | | | | 187,300 | | | | | | 995 | |
| | | | |
Yamaha Motor Co. Ltd. | | | | | 40,600 | | | | | | 829 | |
| | | | |
Yokohama Rubber Co. Ltd. | | | | | 31,400 | | | | | | 468 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 65,115 | |
| | | | | | | | | | | | |
| |
| CONSUMER STAPLES 1.5% | |
| | | | |
Aeon Co. Ltd. | | | | | 145,747 | | | | | | 4,781 | |
| | | | |
Ajinomoto Co., Inc. | | | | | 65,700 | | | | | | 1,489 | |
| | | | |
Japan Tobacco, Inc. | | | | | 111,856 | | | | | | 2,280 | |
| | | | |
Kewpie Corp. | | | | | 15,600 | | | | | | 344 | |
| | | | |
Kirin Holdings Co. Ltd. | | | | | 82,100 | | | | | | 1,939 | |
| | | | |
Matsumotokiyoshi Holdings Co. Ltd. | | | | | 16,100 | | | | | | 687 | |
| | | | |
Megmilk Snow Brand Co. Ltd. | | | | | 20,500 | | | | | | 439 | |
| | | | |
MEIJI Holdings Co. Ltd. | | | | | 3,400 | | | | | | 239 | |
| | | | |
Morinaga Milk Industry Co. Ltd. | | | | | 10,400 | | | | | | 512 | |
| | | | |
NH Foods Ltd. | | | | | 16,400 | | | | | | 722 | |
| | | | | | |
| 48 | | PIMCO EQUITY SERIES | | | See Accompanying Notes | |
| | | | | | | | |
| | | | | | December 31, 2020 | | (Unaudited) |
| | | | | | | | | | | | |
| | | | | SHARES | | | | | MARKET
VALUE
(000S) | |
| | | | |
Pola Orbis Holdings, Inc. | | | | | 25,000 | | | $ | | | 508 | |
| | | | |
Sapporo Holdings Ltd. (c) | | | | | 20,800 | | | | | | 402 | |
| | | | |
Seven & i Holdings Co. Ltd. | | | | | 18,500 | | | | | | 655 | |
| | | | |
United Super Markets Holdings, Inc. | | | | | 51,300 | | | | | | 561 | |
| | | | |
Yamazaki Baking Co. Ltd. | | | | | 31,000 | | | | | | 518 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 16,076 | |
| | | | | | | | | | | | |
| |
| ENERGY 0.2% | |
| | | | |
Cosmo Energy Holdings Co. Ltd. | | | | | 22,300 | | | | | | 397 | |
| | | | |
Inpex Corp. | | | | | 36,800 | | | | | | 199 | |
| | | | |
Iwatani Corp. | | | | | 22,600 | | | | | | 1,392 | |
| | | | |
Japan Petroleum Exploration Co. Ltd. | | | | | 12,000 | | | | | | 219 | |
| | | | |
JXTG Holdings, Inc. | | | | | 59,000 | | | | | | 212 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 2,419 | |
| | | | | | | | | | | | |
| |
| FINANCIALS 3.5% | |
| | | | |
AEON Financial Service Co. Ltd. | | | | | 22,500 | | | | | | 270 | |
| | | | |
Chiba Bank Ltd. | | | | | 97,800 | | | | | | 540 | |
| | | | |
Concordia Financial Group Ltd. | | | | | 185,400 | | | | | | 654 | |
| | | | |
Credit Saison Co. Ltd. | | | | | 31,100 | | | | | | 358 | |
| | | | |
Dai-ichi Life Holdings, Inc. | | | | | 219,400 | | | | | | 3,305 | |
| | | | |
Daiwa Securities Group, Inc. | | | | | 117,500 | | | | | | 535 | |
| | | | |
Gunma Bank Ltd. | | | | | 155,800 | | | | | | 481 | |
| | | | |
Hachijuni Bank Ltd. | | | | | 70,100 | | | | | | 234 | |
| | | | |
Hokuhoku Financial Group, Inc. | | | | | 20,600 | | | | | | 196 | |
| | | | |
Japan Post Bank Co. Ltd. | | | | | 109,000 | | | | | | 896 | |
| | | | |
Japan Post Holdings Co. Ltd. | | | | | 297,400 | | | | | | 2,317 | |
| | | | |
Japan Post Insurance Co. Ltd. | | | | | 33,000 | | | | | | 677 | |
| | | | |
Mitsubishi UFJ Financial Group, Inc. | | | | | 1,706,400 | | | | | | 7,555 | |
| | | | |
Mizuho Financial Group, Inc. | | | | | 339,500 | | | | | | 4,309 | |
| | | | |
MS&AD Insurance Group Holdings, Inc. | | | | | 59,200 | | | | | | 1,801 | |
| | | | |
Nomura Holdings, Inc. | | | | | 211,300 | | | | | | 1,117 | |
| | | | |
ORIX Corp. | | | | | 98,700 | | | | | | 1,518 | |
| | | | |
Resona Holdings, Inc. | | | | | 150,700 | | | | | | 528 | |
| | | | |
Shinsei Bank Ltd. | | | | | 16,700 | | | | | | 206 | |
| | | | |
Shizuoka Bank Ltd. | | | | | 28,200 | | | | | | 207 | |
| | | | |
Sompo Holdings, Inc. | | | | | 34,400 | | | | | | 1,395 | |
| | | | |
Sumitomo Mitsui Financial Group, Inc. | | | | | 162,300 | | | | | | 5,031 | |
| | | | |
Sumitomo Mitsui Trust Holdings, Inc. | | | | | 19,800 | | | | | | 611 | |
| | | | |
Suruga Bank Ltd. | | | | | 62,800 | | | | | | 206 | |
| | | | |
T&D Holdings, Inc. | | | | | 51,800 | | | | | | 613 | |
| | | | |
Tokio Marine Holdings, Inc. | | | | | 49,400 | | | | | | 2,545 | |
| | | | |
Yamaguchi Financial Group, Inc. | | | | | 44,700 | | | | | | 252 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 38,357 | |
| | | | | | | | | | | | |
| |
| HEALTH CARE 1.0% | |
| | | | |
Astellas Pharma, Inc. | | | | | 413,200 | | | | | | 6,398 | |
| | | | |
Daiichi Sankyo Co. Ltd. | | | | | 13,248 | | | | | | 454 | |
| | | | |
Eisai Co. Ltd. | | | | | 13,900 | | | | | | 994 | |
| | | | |
H.U. Group Holdings, Inc. | | | | | 7,900 | | | | | | 213 | |
| | | | |
Hoya Corp. | | | | | 2,900 | | | | | | 402 | |
| | | | |
Nipro Corp. | | | | | 19,800 | | | | | | 233 | |
| | | | |
Olympus Corp. | | | | | 16,600 | | | | | | 363 | |
| | | | |
Otsuka Holdings Co. Ltd. | | | | | 20,828 | | | | | | 892 | |
| | | | |
Suzuken Co. Ltd. | | | | | 6,300 | | | | | | 228 | |
| | | | |
Takeda Pharmaceutical Co. Ltd. | | | | | 14,300 | | | | | | 518 | |
| | | | |
Toho Holdings Co. Ltd. | | | | | 23,800 | | | | | | 418 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 11,113 | |
| | | | | | | | | | | | |
| |
| | | | | | | | | | | | |
| | | | | SHARES | | | | | MARKET
VALUE
(000S) | |
| INDUSTRIALS 4.1% | |
| | | | |
Amada Co. Ltd. | | | | | 59,600 | | | $ | | | 656 | |
| | | | |
ANA Holdings, Inc. | | | | | 55,300 | | | | | | 1,222 | |
| | | | |
Asahi Glass Co. Ltd. (c) | | | | | 34,600 | | | | | | 1,210 | |
| | | | |
Central Japan Railway Co. | | | | | 2,300 | | | | | | 325 | |
| | | | |
Dai Nippon Printing Co. Ltd. | | | | | 27,800 | | | | | | 500 | |
| | | | |
Daikin Industries Ltd. | | | | | 3,200 | | | | | | 712 | |
| | | | |
East Japan Railway Co. | | | | | 12,000 | | | | | | 801 | |
| | | | |
Ebara Corp. | | | | | 9,600 | | | | | | 314 | |
| | | | |
FANUC Corp. | | | | | 2,600 | | | | | | 642 | |
| | | | |
Fuji Electric Co. Ltd. | | | | | 20,200 | | | | | | 729 | |
| | | | |
Fujikura Ltd. | | | | | 243,600 | | | | | | 1,124 | |
| | | | |
Furukawa Electric Co. Ltd. | | | | | 63,700 | | | | | | 1,720 | |
| | | | |
Glory Ltd. | | | | | 11,700 | | | | | | 236 | |
| | | | |
GS Yuasa Corp. | | | | | 48,900 | | | | | | 1,407 | |
| | | | |
Hankyu Hanshin Holdings, Inc. | | | | | 5,900 | | | | | | 196 | |
| | | | |
Hino Motors Ltd. | | | | | 66,500 | | | | | | 568 | |
| | | | |
IHI Corp. | | | | | 30,900 | | | | | | 615 | |
| | | | |
ITOCHU Corp. | | | | | 29,600 | | | | | | 851 | |
| | | | |
Japan Airlines Co. Ltd. | | | | | 55,200 | | | | | | 1,064 | |
| | | | |
JTEKT Corp. | | | | | 52,600 | | | | | | 408 | |
| | | | |
Kajima Corp. | | | | | 42,200 | | | | | | 566 | |
| | | | |
Kawasaki Heavy Industries Ltd. | | | | | 40,600 | | | | | | 917 | |
| | | | |
Kawasaki Kisen Kaisha Ltd. (a) | | | | | 13,800 | | | | | | 283 | |
| | | | |
Kubota Corp. | | | | | 73,100 | | | | | | 1,597 | |
| | | | |
LIXIL Group Corp. | | | | | 80,500 | | | | | | 1,746 | |
| | | | |
Marubeni Corp. | | | | | 61,400 | | | | | | 409 | |
| | | | |
Mitsubishi Corp. | | | | | 49,500 | | | | | | 1,220 | |
| | | | |
Mitsubishi Electric Corp. | | | | | 246,200 | | | | | | 3,721 | |
| | | | |
Mitsubishi Heavy Industries Ltd. | | | | | 79,600 | | | | | | 2,438 | |
| | | | |
Mitsui & Co. Ltd. | | | | | 54,300 | | | | | | 996 | |
| | | | |
Mitsui OSK Lines Ltd. | | | | | 8,000 | | | | | | 245 | |
| | | | |
Nippon Express Co. Ltd. | | | | | 33,400 | | | | | | 2,247 | |
| | | | |
Nippon Sheet Glass Co. Ltd. | | | | | 51,000 | | | | | | 236 | |
| | | | |
Nippon Yusen KK | | | | | 71,900 | | | | | | 1,677 | |
| | | | |
Nisshinbo Holdings, Inc. | | | | | 72,600 | | | | | | 531 | |
| | | | |
NSK Ltd. | | | | | 129,800 | | | | | | 1,130 | |
| | | | |
NTN Corp. | | | | | 343,500 | | | | | | 885 | |
| | | | |
Obayashi Corp. | | | | | 57,200 | | | | | | 494 | |
| | | | |
Shimizu Corp. | | | | | 24,700 | | | | | | 180 | |
| | | | |
Sojitz Corp. | | | | | 207,100 | | | | | | 462 | |
| | | | |
Sumitomo Corp. | | | | | 106,100 | | | | | | 1,406 | |
| | | | |
Sumitomo Heavy Industries Ltd. | | | | | 23,700 | | | | | | 586 | |
| | | | |
Taisei Corp. | | | | | 9,100 | | | | | | 314 | |
| | | | |
Toppan Printing Co. Ltd. | | | | | 46,300 | | | | | | 654 | |
| | | | |
Toshiba Corp. | | | | | 42,800 | | | | | | 1,199 | |
| | | | |
Toyota Tsusho Corp. | | | | | 31,100 | | | | | | 1,258 | |
| | | | |
West Japan Railway Co. | | | | | 20,500 | | | | | | 1,073 | |
| | | | |
Yamato Holdings Co. Ltd. | | | | | 47,500 | | | | | | 1,213 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 44,983 | |
| | | | | | | | | | | | |
| |
| INFORMATION TECHNOLOGY 5.6% | |
| | | | |
Alps Electric Co. Ltd. | | | | | 17,100 | | | | | | 226 | |
| | | | |
Brother Industries Ltd. | | | | | 57,100 | | | | | | 1,179 | |
| | | | |
Canon Marketing Japan, Inc. | | | | | 14,200 | | | | | | 325 | |
| | | | |
Canon, Inc. (c) | | | | | 150,350 | | | | | | 2,913 | |
| | | | |
FUJIFILM Holdings Corp. | | | | | 44,000 | | | | | | 2,321 | |
| | | | |
Fujitsu Ltd. | | | | | 75,000 | | | | | | 10,840 | |
| | | | |
Hitachi Ltd. | | | | | 519,000 | | | | | | 20,485 | |
| | | | |
Ibiden Co. Ltd. | | | | | 31,000 | | | | | | 1,449 | |
| | | | |
Japan Display, Inc. (a) | | | | | 547,000 | | | | | | 239 | |
| | | | |
Konica Minolta, Inc. | | | | | 249,800 | | | | | | 957 | |
| | | | |
Kyocera Corp. | | | | | 15,200 | | | | | | 933 | |
| | | | |
Mixi, Inc. | | | | | 64,500 | | | | | | 1,601 | |
| | | | | | | | | | | | |
| | | | | SHARES | | | | | MARKET
VALUE
(000S) | |
| | | | |
Murata Manufacturing Co. Ltd. | | | | | 2,700 | | | $ | | | 244 | |
| | | | |
NEC Corp. | | | | | 15,100 | | | | | | 811 | |
| | | | |
Nippon Electric Glass Co. Ltd. | | | | | 38,600 | | | | | | 846 | |
| | | | |
NTT Data Corp. | | | | | 67,900 | | | | | | 929 | |
| | | | |
Omron Corp. | | | | | 55,400 | | | | | | 4,946 | |
| | | | |
Renesas Electronics Corp. (a) | | | | | 160,900 | | | | | | 1,684 | |
| | | | |
Ricoh Co. Ltd. | | | | | 56,700 | | | | | | 373 | |
| | | | |
Rohm Co. Ltd. | | | | | 9,000 | | | | | | 872 | |
| | | | |
SCREEN Holdings Co. Ltd. | | | | | 6,700 | | | | | | 494 | |
| | | | |
Seiko Epson Corp. | | | | | 93,500 | | | | | | 1,389 | |
| | | | |
TDK Corp. | | | | | 5,000 | | | | | | 754 | |
| | | | |
Tokyo Electron Ltd. | | | | | 9,800 | | | | | | 3,661 | |
| | | | |
Toshiba TEC Corp. | | | | | 5,100 | | | | | | 184 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 60,655 | |
| | | | | | | | | | | | |
| |
| MATERIALS 2.6% | |
| | | | |
Asahi Kasei Corp. | | | | | 96,800 | | | | | | 992 | |
| | | | |
Daicel Corp. | | | | | 74,900 | | | | | | 548 | |
| | | | |
DIC Corp. (c) | | | | | 22,800 | | | | | | 577 | |
| | | | |
JFE Holdings, Inc. | | | | | 104,900 | | | | | | 1,007 | |
| | | | |
JSR Corp. | | | | | 27,500 | | | | | | 767 | |
| | | | |
Kaneka Corp. | | | | | 18,300 | | | | | | 641 | |
| | | | |
Kobe Steel Ltd. (a) | | | | | 292,100 | | | | | | 1,564 | |
| | | | |
Kuraray Co. Ltd. | | | | | 35,500 | | | | | | 378 | |
| | | | |
Mitsubishi Chemical Holdings Corp. | | | | | 308,900 | | | | | | 1,871 | |
| | | | |
Mitsubishi Gas Chemical Co., Inc. | | | | | 11,500 | | | | | | 264 | |
| | | | |
Mitsubishi Materials Corp. | | | | | 41,600 | | | | | | 876 | |
| | | | |
Mitsui Chemicals, Inc. | | | | | 32,200 | | | | | | 946 | |
| | | | |
Mitsui Mining & Smelting Co. Ltd. | | | | | 16,300 | | | | | | 599 | |
| | | | |
Nippon Light Metal Holdings Co. Ltd. | | | | | 29,430 | | | | | | 546 | |
| | | | |
Nippon Steel Corp. | | | | | 116,300 | | | | | | 1,500 | |
| | | | |
Nitto Denko Corp. | | | | | 82,600 | | | | | | 7,399 | |
| | | | |
Oji Holdings Corp. | | | | | 62,800 | | | | | | 358 | |
| | | | |
Shin-Etsu Chemical Co. Ltd. | | | | | 8,800 | | | | | | 1,545 | |
| | | | |
Sumitomo Chemical Co. Ltd. | | | | | 519,800 | | | | | | 2,095 | |
| | | | |
Taiheiyo Cement Corp. | | | | | 24,800 | | | | | | 621 | |
| | | | |
Teijin Ltd. | | | | | 29,500 | | | | | | 555 | |
| | | | |
Toray Industries, Inc. | | | | | 98,600 | | | | | | 585 | |
| | | | |
Tosoh Corp. | | | | | 53,700 | | | | | | 839 | |
| | | | |
Toyobo Co. Ltd. | | | | | 36,000 | | | | | | 482 | |
| | | | |
UACJ Corp. | | | | | 11,200 | | | | | | 206 | |
| | | | |
Ube Industries Ltd. | | | | | 30,000 | | | | | | 545 | |
| | | | |
Zeon Corp. | | | | | 25,900 | | | | | | 372 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 28,678 | |
| | | | | | | | | | | | |
| |
| REAL ESTATE 0.2% | |
| | | | |
Daito Trust Construction Co. Ltd. | | | | | 5,900 | | | | | | 551 | |
| | | | |
Daiwa House Industry Co. Ltd. | | | | | 29,200 | | | | | | 868 | |
| | | | |
Nomura Real Estate Holdings, Inc. | | | | | 24,000 | | | | | | 532 | |
| | | | |
Tokyo Tatemono Co. Ltd. | | | | | 16,100 | | | | | | 221 | |
| | | | |
Tokyu Fudosan Holdings Corp. | | | | | 48,200 | | | | | | 258 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 2,430 | |
| | | | | | | | | | | | |
| |
| UTILITIES 0.8% | |
| | | | |
Chubu Electric Power Co., Inc. | | | | | 145,800 | | | | | | 1,759 | |
| | | | |
Chugoku Electric Power Co., Inc. | | | | | 65,100 | | | | | | 764 | |
| | | | |
Hokkaido Electric Power Co., Inc. | | | | | 132,000 | | | | | | 481 | |
| | | | |
Hokuriku Electric Power Co. | | | | | 84,688 | | | | | | 552 | |
| | | | |
Kansai Electric Power Co., Inc. | | | | | 43,200 | | | | | | 409 | |
| | | | |
Kyushu Electric Power Co., Inc. | | | | | 204,600 | | | | | | 1,765 | |
| | | | |
Tohoku Electric Power Co., Inc. | | | | | 111,300 | | | | | | 919 | |
| | | | | | | | | | | | |
| See Accompanying Notes | | | SEMIANNUAL REPORT | | | | | | | DECEMBER 31, 2020 | | | 49 |
| | | | | | | | |
| Schedule of Investments | | PIMCO RAE International Fund | | (Cont.) | | | | |
| | | | | | | | | | | | |
| | | | | SHARES | | | | | MARKET
VALUE
(000S) | |
| | | | |
Tokyo Electric Power Co. Holdings, Inc. (a) | | | | | 791,900 | | | $ | | | 2,092 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 8,741 | |
| | | | | | | | | | | | |
Total Japan | | | | | | | | | | | 296,534 | |
| | | | | | | | | | | | |
| |
| LUXEMBOURG 3.5% | |
| |
| COMMUNICATION SERVICES 0.2% | |
| | | | |
Millicom International Cellular S.A. | | | | | 24,029 | | | | | | 945 | |
| | | | |
RTL Group S.A. (a) | | | | | 17,882 | | | | | | 870 | |
| | | | |
SES S.A. | | | | | 22,096 | | | | | | 207 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 2,022 | |
| | | | | | | | | | | | |
| |
| ENERGY 0.1% | |
| | | | |
Tenaris S.A. | | | | | 126,926 | | | | | | 1,029 | |
| | | | | | | | | | | | |
| |
| MATERIALS 3.2% | |
| | | | |
ArcelorMittal S.A. (a) | | | | | 1,534,167 | | | | | | 35,086 | |
| | | | | | | | | | | | |
Total Luxembourg | | | | | | | | | | | 38,137 | |
| | | | | | | | | | | | |
| |
| MACAU 0.1% | |
| |
| CONSUMER DISCRETIONARY 0.1% | |
| | | | |
Sands China Ltd. | | | | | 142,800 | | | | | | 623 | |
| | | | |
Wynn Macau Ltd. | | | | | 150,800 | | | | | | 254 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 877 | |
| | | | | | | | | | | | |
Total Macau | | | | | | | | | | | 877 | |
| | | | | | | | | | | | |
| |
| NETHERLANDS 3.9% | |
| |
| COMMUNICATION SERVICES 0.2% | |
| | | | |
Koninklijke KPN NV | | | | | 330,722 | | | | | | 1,005 | |
| | | | |
VEON Ltd. ADR | | | | | 594,139 | | | | | | 897 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 1,902 | |
| | | | | | | | | | | | |
| |
| CONSUMER STAPLES 0.4% | |
| | | | |
Heineken Holding NV | | | | | 5,687 | | | | | | 536 | |
| | | | |
Koninklijke Ahold Delhaize NV | | | | | 120,276 | | | | | | 3,393 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 3,929 | |
| | | | | | | | | | | | |
| |
| ENERGY 1.4% | |
| | | | |
Royal Dutch Shell PLC ‘A’ | | | | | 882,347 | | | | | | 15,532 | |
| | | | | | | | | | | | |
| |
| FINANCIALS 0.3% | |
| | | | |
Aegon NV | | | | | 311,890 | | | | | | 1,244 | |
| | | | |
ASR Nederland NV | | | | | 16,823 | | | | | | 673 | |
| | | | |
ING Groep NV | | | | | 131,673 | | | | | | 1,224 | |
| | | | |
NN Group NV | | | | | 10,579 | | | | | | 458 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 3,599 | |
| | | | | | | | | | | | |
| |
| HEALTH CARE 0.2% | |
| | | | |
Koninklijke Philips NV | | | | | 37,512 | | | | | | 2,021 | |
| | | | | | | | | | | | |
| |
| INDUSTRIALS 0.9% | |
| | | | |
Randstad NV | | | | | 15,190 | | | | | | 983 | |
| | | | |
Signify NV (a) | | | | | 207,446 | | | | | | 8,710 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 9,693 | |
| | | | | | | | | | | | |
| |
| INFORMATION TECHNOLOGY 0.4% | |
| | | | |
NXP Semiconductors NV | | | | | 27,400 | | | | | | 4,357 | |
| | | | | | | | | | | | |
| |
| | | | | | | | | | | | |
| | | | | SHARES | | | | | MARKET
VALUE
(000S) | |
| MATERIALS 0.1% | |
| | | | |
Akzo Nobel NV | | | | | 5,669 | | | $ | | | 608 | |
| | | | |
Koninklijke DSM NV | | | | | 3,378 | | | | | | 581 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 1,189 | |
| | | | | | | | | | | | |
Total Netherlands | | | | | | | | | | | 42,222 | |
| | | | | | | | | | | | |
| |
| NEW ZEALAND 0.4% | |
| |
| COMMUNICATION SERVICES 0.1% | |
| | | | |
Spark New Zealand Ltd. | | | | | 192,666 | | | | | | 653 | |
| | | | | | | | | | | | |
| |
| INDUSTRIALS 0.1% | |
| | | | |
Air New Zealand Ltd. | | | | | 607,457 | | | | | | 790 | |
| | | | | | | | | | | | |
| |
| MATERIALS 0.1% | |
| | | | |
Fletcher Building Ltd. | | | | | 284,232 | | | | | | 1,209 | |
| | | | | | | | | | | | |
| |
| UTILITIES 0.1% | |
| | | | |
Contact Energy Ltd. | | | | | 136,836 | | | | | | 881 | |
| | | | |
Meridian Energy Ltd. | | | | | 117,547 | | | | | | 629 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 1,510 | |
| | | | | | | | | | | | |
Total New Zealand | | | | | | | | | | | 4,162 | |
| | | | | | | | | | | | |
| |
| NORWAY 1.3% | |
| |
| COMMUNICATION SERVICES 0.2% | |
| | | | |
Telenor ASA | | | | | 155,184 | | | | | | 2,634 | |
| | | | | | | | | | | | |
| |
| CONSUMER STAPLES 0.1% | |
| | | | |
Mowi ASA | | | | | 9,028 | | | | | | 201 | |
| | | | |
Orkla ASA | | | | | 53,110 | | | | | | 539 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 740 | |
| | | | | | | | | | | | |
| |
| ENERGY 0.3% | |
| | | | |
Equinor ASA | | | | | 168,540 | | | | | | 2,845 | |
| | | | | | | | | | | | |
| |
| FINANCIALS 0.0% | |
| | | | |
DNB ASA (a) | | | | | 26,450 | | | | | | 518 | |
| | | | | | | | | | | | |
| |
| MATERIALS 0.7% | |
| | | | |
Norsk Hydro ASA | | | | | 1,451,910 | | | | | | 6,758 | |
| | | | |
Yara International ASA | | | | | 7,887 | | | | | | 327 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 7,085 | |
| | | | | | | | | | | | |
Total Norway | | | | | | | | | | | 13,822 | |
| | | | | | | | | | | | |
| |
| PORTUGAL 0.4% | |
| |
| UTILITIES 0.4% | |
| | | | |
EDP - Energias de Portugal S.A. | | | | | 681,055 | | | | | | 4,275 | |
| | | | | | | | | | | | |
Total Portugal | | | | | | | | | | | 4,275 | |
| | | | | | | | | | | | |
| |
| SINGAPORE 0.5% | |
| |
| COMMUNICATION SERVICES 0.1% | |
| | | | |
Singapore Telecommunications Ltd. | | | | | 334,900 | | | | | | 585 | |
| | | | | | | | | | | | |
| |
| CONSUMER STAPLES 0.0% | |
| | | | |
Golden Agri-Resources Ltd. | | | | | 2,530,300 | | | | | | 304 | |
| | | | | | | | | | | | |
| |
| FINANCIALS 0.2% | |
| | | | |
DBS Group Holdings Ltd. | | | | | 33,810 | | | | | | 640 | |
| | | | | | | | | | | | |
| | | | | SHARES | | | | | MARKET
VALUE
(000S) | |
| | | | |
Oversea-Chinese Banking Corp. Ltd. | | | | | 48,000 | | | $ | | | 366 | |
| | | | |
United Overseas Bank Ltd. | | | | | 42,700 | | | | | | 728 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 1,734 | |
| | | | | | | | | | | | |
| |
| INDUSTRIALS 0.2% | |
| | | | |
ComfortDelGro Corp. Ltd. | | | | | 325,200 | | | | | | 412 | |
| | | | |
Keppel Corp. Ltd. | | | | | 210,300 | | | | | | 857 | |
| | | | |
Sembcorp Industries Ltd. | | | | | 287,100 | | | | | | 371 | |
| | | | |
Singapore Airlines Ltd. | | | | | 226,700 | | | | | | 736 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 2,376 | |
| | | | | | | | | | | | |
Total Singapore | | | | | | | | | | | 4,999 | |
| | | | | | | | | | | | |
| |
| SOUTH AFRICA 0.0% | |
| |
| FINANCIALS 0.0% | |
| | | | |
Investec PLC | | | | | 81,385 | | | | | | 209 | |
| | | | | | | | | | | | |
Total South Africa | | | | | | | | | | | 209 | |
| | | | | | | | | | | | |
| |
| SPAIN 2.3% | |
| |
| COMMUNICATION SERVICES 0.4% | |
| | | | |
Telefonica S.A. (c) | | | | | 1,107,937 | | | | | | 4,407 | |
| | | | | | | | | | | | |
| |
| CONSUMER DISCRETIONARY 0.0% | |
| | | | |
Gestamp Automocion S.A. | | | | | 78,151 | | | | | | 378 | |
| | | | | | | | | | | | |
| |
| ENERGY 0.1% | |
| | | | |
Repsol S.A. | | | | | 115,858 | | | | | | 1,167 | |
| | | | | | | | | | | | |
| |
| FINANCIALS 1.1% | |
| | | | |
Banco Bilbao Vizcaya Argentaria S.A. | | | | | 872,952 | | | | | | 4,327 | |
| | | | |
Banco de Sabadell S.A. | | | | | 1,281,341 | | | | | | 554 | |
| | | | |
Banco Santander S.A. | | | | | 1,807,040 | | | | | | 5,635 | |
| | | | |
Bankia S.A. | | | | | 592,218 | | | | | | 1,054 | |
| | | | |
Mapfre S.A. | | | | | 273,643 | | | | | | 535 | |
| | | | | | | | | | | | |
| | | | | | | �� | | | | 12,105 | |
| | | | | | | | | | | | |
| |
| INDUSTRIALS 0.1% | |
| | | | |
ACS Actividades de Construccion Y Servicios S.A. | | | | | 27,154 | | | | | | 902 | |
| | | | |
Ferrovial S.A. | | | | | 12,920 | | | | | | 358 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 1,260 | |
| | | | | | | | | | | | |
| |
| UTILITIES 0.6% | |
| | | | |
Acciona S.A. (c) | | | | | 7,584 | | | | | | 1,085 | |
| | | | |
Endesa S.A. (c) | | | | | 86,960 | | | | | | 2,386 | |
| | | | |
Iberdrola S.A. | | | | | 83,938 | | | | | | 1,206 | |
| | | | |
Naturgy Energy Group S.A. | | | | | 62,014 | | | | | | 1,442 | |
| | | | |
Red Electrica Corp. S.A. | | | | | 10,575 | | | | | | 217 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 6,336 | |
| | | | | | | | | | | | |
Total Spain | | | | | | | | | | | 25,653 | |
| | | | | | | | | | | | |
| |
| SWEDEN 1.0% | |
| |
| COMMUNICATION SERVICES 0.1% | |
| | | | |
Telia Co. AB | | | | | 131,542 | | | | | | 543 | |
| | | | | | | | | | | | |
| |
| CONSUMER DISCRETIONARY 0.2% | |
| | | | |
Autoliv, Inc. | | | | | 4,951 | | | | | | 456 | |
| | | | |
Electrolux AB ‘B’ | | | | | 24,639 | | | | | | 574 | |
| | | | | | |
| 50 | | PIMCO EQUITY SERIES | | | See Accompanying Notes | |
| | | | | | | | |
| | | | | | December 31, 2020 | | (Unaudited) |
| | | | | | | | | | | | |
| | | | | SHARES | | | | | MARKET
VALUE
(000S) | |
| | | | |
Hennes & Mauritz AB ‘B’ (a) | | | | | 66,080 | | | $ | | | 1,387 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 2,417 | |
| | | | | | | | | | | | |
| |
| FINANCIALS 0.2% | |
| | | | |
Skandinaviska Enskilda Banken AB ‘A’ (a) | | | | | 46,322 | | | | | | 477 | |
| | | | |
Svenska Handelsbanken AB ‘A’ (a) | | | | | 31,193 | | | | | | 315 | |
| | | | |
Swedbank AB ‘A’ (a) | | | | | 93,520 | | | | | | 1,640 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 2,432 | |
| | | | | | | | | | | | |
| |
| INDUSTRIALS 0.5% | |
| | | | |
Atlas Copco AB ‘A’ | | | | | 34,464 | | | | | | 1,771 | |
| | | | |
Electrolux Professional AB (a) | | | | | 10,540 | | | | | | 60 | |
| | | | |
Sandvik AB (a) | | | | | 21,062 | | | | | | 520 | |
| | | | |
Skanska AB ‘B’ | | | | | 37,923 | | | | | | 967 | |
| | | | |
SKF AB ‘B’ | | | | | 59,548 | | | | | | 1,549 | |
| | | | |
Volvo AB ‘B’ (a) | | | | | 18,731 | | | | | | 443 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 5,310 | |
| | | | | | | | | | | | |
Total Sweden | | | | | | | | | | | 10,702 | |
| | | | | | | | | | | | |
| |
| SWITZERLAND 7.0% | |
| |
| COMMUNICATION SERVICES 0.1% | |
| | | | |
Swisscom AG | | | | | 2,165 | | | | | | 1,166 | |
| | | | | | | | | | | | |
| |
| CONSUMER DISCRETIONARY 0.8% | |
| | | | |
Dufry AG (a) | | | | | 4,186 | | | | | | 264 | |
| | | | |
Garmin Ltd. | | | | | 6,172 | | | | | | 738 | |
| | | | |
Swatch Group AG | | | | | 27,417 | | | | | | 7,453 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 8,455 | |
| | | | | | | | | | | | |
| |
| CONSUMER STAPLES 1.1% | |
| | | | |
Nestle S.A. | | | | | 102,350 | | | | | | 12,099 | |
| | | | | | | | | | | | |
| |
| FINANCIALS 1.8% | |
| | | | |
Baloise Holding AG | | | | | 2,882 | | | | | | 512 | |
| | | | |
Credit Suisse Group AG | | | | | 102,777 | | | | | | 1,327 | |
| | | | |
Helvetia Holding AG | | | | | 3,983 | | | | | | 421 | |
| | | | |
Swiss Life Holding AG | | | | | 5,669 | | | | | | 2,644 | |
| | | | |
Swiss Re AG | | | | | 37,714 | | | | | | 3,553 | |
| | | | |
UBS Group AG | | | | | 272,908 | | | | | | 3,843 | |
| | | | |
Zurich Insurance Group AG | | | | | 16,871 | | | | | | 7,110 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 19,410 | |
| | | | | | | | | | | | |
| |
| HEALTH CARE 1.5% | |
| | | | |
Novartis AG | | | | | 76,811 | | | | | | 7,232 | |
| | | | |
Roche Holding AG | | | | | 27,629 | | | | | | 9,623 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 16,855 | |
| | | | | | | | | | | | |
| |
| INDUSTRIALS 0.9% | |
| | | | |
ABB Ltd. | | | | | 151,359 | | | | | | 4,245 | |
| | | | |
Adecco Group AG | | | | | 65,348 | | | | | | 4,352 | |
| | | | |
Kuehne + Nagel International AG | | | | | 4,309 | | | | | | 978 | |
| | | | |
Siemens Energy AG (a) | | | | | 26,977 | | | | | | 989 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 10,564 | |
| | | | | | | | | | | | |
| |
| INFORMATION TECHNOLOGY 0.4% | |
| | | | |
STMicroelectronics NV | | | | | 91,822 | | | | | | 3,426 | |
| | | | |
TE Connectivity Ltd. | | | | | 7,678 | | | | | | 929 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 4,355 | |
| | | | | | | | | | | | |
| |
| | | | | | | | | | | | |
| | | | | SHARES | | | | | MARKET
VALUE
(000S) | |
| MATERIALS 0.4% | |
| | | | |
Glencore PLC (a) | | | | | 919,725 | | | $ | | | 2,921 | |
| | | | |
LafargeHolcim Ltd. | | | | | 21,656 | | | | | | 1,189 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 4,110 | |
| | | | | | | | | | | | |
Total Switzerland | | | | | | | | | | | 77,014 | |
| | | | | | | | | | | | |
| |
| UNITED KINGDOM 10.7% | |
| |
| COMMUNICATION SERVICES 0.8% | |
| | | | |
BT Group PLC | | | | | 882,594 | | | | | | 1,591 | |
| | | | |
ITV PLC | | | | | 365,886 | | | | | | 533 | |
| | | | |
Pearson PLC | | | | | 93,701 | | | | | | 860 | |
| | | | |
Vodafone Group PLC | | | | | 2,180,915 | | | | | | 3,582 | |
| | | | |
WPP PLC | | | | | 249,070 | | | | | | 2,699 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 9,265 | |
| | | | | | | | | | | | |
| |
| CONSUMER DISCRETIONARY 1.8% | |
| | | | |
Barratt Developments PLC | | | | | 106,331 | | | | | | 972 | |
| | | | |
Berkeley Group Holdings PLC | | | | | 10,472 | | | | | | 677 | |
| | | | |
Burberry Group PLC | | | | | 29,806 | | | | | | 728 | |
| | | | |
Compass Group PLC | | | | | 92,211 | | | | | | 1,720 | |
| | | | |
Dixons Carphone PLC | | | | | 1,045,639 | | | | | | 1,658 | |
| | | | |
Fiat Chrysler Automobiles NV (a) | | | | | 286,051 | | | | | | 5,175 | |
| | | | |
Inchcape PLC | | | | | 123,148 | | | | | | 1,084 | |
| | | | |
Kingfisher PLC | | | | | 711,856 | | | | | | 2,630 | |
| | | | |
Marks & Spencer Group PLC | | | | | 2,133,072 | | | | | | 3,957 | |
| | | | |
Next PLC | | | | | 2,445 | | | | | | 236 | |
| | | | |
Persimmon PLC | | | | | 14,261 | | | | | | 538 | |
| | | | |
Taylor Wimpey PLC | | | | | 224,838 | | | | | | 509 | |
| | | | |
William Hill PLC (a) | | | | | 83,197 | | | | | | 306 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 20,190 | |
| | | | | | | | | | | | |
| |
| CONSUMER STAPLES 1.0% | |
| | | | |
British American Tobacco PLC | | | | | 91,849 | | | | | | 3,411 | |
| | | | |
Diageo PLC | | | | | 28,011 | | | | | | 1,108 | |
| | | | |
Imperial Brands PLC | | | | | 126,512 | | | | | | 2,653 | |
| | | | |
J Sainsbury PLC | | | | | 166,926 | | | | | | 513 | |
| | | | |
Reckitt Benckiser Group PLC | | | | | 4,950 | | | | | | 442 | |
| | | | |
Tate & Lyle PLC | | | | | 23,212 | | | | | | 214 | |
| | | | |
Unilever PLC | | | | | 42,474 | | | | | | 2,559 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 10,900 | |
| | | | | | | | | | | | |
| |
| ENERGY 0.2% | |
| | | | |
BP PLC | | | | | 247,125 | | | | | | 853 | |
| | | | |
Subsea 7 S.A. | | | | | 110,462 | | | | | | 1,135 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 1,988 | |
| | | | | | | | | | | | |
| |
| FINANCIALS 1.7% | |
| | | | |
Aviva PLC | | | | | 739,231 | | | | | | 3,288 | |
| | | | |
Barclays PLC | | | | | 814,384 | | | | | | 1,634 | |
| | | | |
Direct Line Insurance Group PLC | | | | | 190,726 | | | | | | 834 | |
| | | | |
HSBC Holdings PLC | | | | | 1,552,245 | | | | | | 8,018 | |
| | | | |
Legal & General Group PLC | | | | | 109,565 | | | | | | 399 | |
| | | | |
Lloyds Banking Group PLC | | | | | 1,754,041 | | | | | | 874 | |
| | | | |
Standard Chartered PLC | | | | | 387,522 | | | | | | 2,461 | |
| | | | |
Standard Life Aberdeen PLC | | | | | 226,411 | | | | | | 868 | |
| | | | |
Virgin Money UK PLC | | | | | 143,985 | | | | | | 265 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 18,641 | |
| | | | | | | | | | | | |
| |
| HEALTH CARE 0.5% | |
| | | | |
AstraZeneca PLC | | | | | 35,532 | | | | | | 3,543 | |
| | | | |
GlaxoSmithKline PLC | | | | | 102,810 | | | | | | 1,881 | |
| | | | | | | | | | | | |
| | | | | SHARES | | | | | MARKET
VALUE
(000S) | |
| | | | |
Smith & Nephew PLC | | | | | 24,637 | | | $ | | | 512 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 5,936 | |
| | | | | | | | | | | | |
| |
| INDUSTRIALS 1.3% | |
| | | | |
Aggreko PLC | | | | | 27,288 | | | | | | 234 | |
| | | | |
Ashtead Group PLC | | | | | 4,943 | | | | | | 233 | |
| | | | |
BAE Systems PLC | | | | | 135,678 | | | | | | 905 | |
| | | | |
CNH Industrial NV (a) | | | | | 94,871 | | | | | | 1,193 | |
| | | | |
easyJet PLC | | | | | 52,993 | | | | | | 601 | |
| | | | |
Ferguson PLC | | | | | 15,949 | | | | | | 1,938 | |
| | | | |
Firstgroup PLC (a) | | | | | 179,915 | | | | | | 183 | |
| | | | |
G4S PLC | | | | | 157,110 | | | | | | 546 | |
| | | | |
International Consolidated Airlines Group S.A. | | | | | 63,225 | | | | | | 138 | |
| | | | |
Meggitt PLC | | | | | 38,908 | | | | | | 247 | |
| | | | |
RELX PLC | | | | | 14,851 | | | | | | 363 | |
| | | | |
Royal Mail PLC | | | | | 1,472,383 | | | | | | 6,786 | |
| | | | |
Travis Perkins PLC | | | | | 32,008 | | | | | | 589 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 13,956 | |
| | | | | | | | | | | | |
| |
| INFORMATION TECHNOLOGY 0.0% | |
| | | | |
Capita PLC (a) | | | | | 345,694 | | | | | | 185 | |
| | | | |
Sage Group PLC | | | | | 23,204 | | | | | | 184 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 369 | |
| | | | | | | | | | | | |
| |
| MATERIALS 2.1% | |
| | | | |
Anglo American PLC | | | | | 32,022 | | | | | | 1,058 | |
| | | | |
DS Smith PLC (a) | | | | | 48,960 | | | | | | 250 | |
| | | | |
Evraz PLC | | | | | 95,470 | | | | | | 610 | |
| | | | |
Mondi PLC | | | | | 43,368 | | | | | | 1,016 | |
| | | | |
Rio Tinto PLC | | | | | 259,116 | | | | | | 19,505 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 22,439 | |
| | | | | | | | | | | | |
| |
| UTILITIES 1.3% | |
| | | | |
Centrica PLC | | | | | 12,444,820 | | | | | | 7,897 | |
| | | | |
National Grid PLC | | | | | 268,443 | | | | | | 3,172 | |
| | | | |
SSE PLC | | | | | 136,520 | | | | | | 2,796 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 13,865 | |
| | | | | | | | | | | | |
Total United Kingdom | | | | | | | | | | | 117,549 | |
| | | | | | | | | | | | |
| |
| UNITED STATES 0.3% | |
| |
| CONSUMER DISCRETIONARY 0.1% | |
| | | | |
Carnival PLC | | | | | 11,949 | | | | | | 227 | |
| | | | |
Samsonite International S.A. | | | | | 201,000 | | | | | | 357 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 584 | |
| | | | | | | | | | | | |
| |
| HEALTH CARE 0.2% | |
| | | | |
Bausch Health Cos., Inc. (a) | | | | | 114,790 | | | | | | 2,388 | |
| | | | | | | | | | | | |
Total United States | | | | | | | | | | | 2,972 | |
| | | | | | | | | | | | |
Total Common Stocks (Cost $771,511) | | | 1,083,085 | |
| | | | |
| |
| PREFERRED STOCKS 0.3% | |
| |
| GERMANY 0.3% | |
| |
| INDUSTRIALS 0.3% | |
| | | | |
Henkel AG & Co. KGaA | | | | | 6,017 | | | | | | 679 | |
| | | | |
Schaeffler AG (c) | | | | | 164,879 | | | | | | 1,377 | |
| | | | |
Volkswagen AG | | | | | 8,071 | | | | | | 1,508 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 3,564 | |
| | | | | | | | | | | | |
Total Preferred Stocks (Cost $2,438) | | | 3,564 | |
| | | | |
| |
| | | | | | | | | | | | |
| See Accompanying Notes | | | SEMIANNUAL REPORT | | | | | | | DECEMBER 31, 2020 | | | 51 |
| | | | | | | | |
| Schedule of Investments | | PIMCO RAE International Fund | | (Cont.) | | | | |
| | | | | | | | | | | | |
| | | | | SHARES | | | | | MARKET
VALUE
(000S) | |
| REAL ESTATE INVESTMENT TRUSTS 0.4% | |
| |
| AUSTRALIA 0.1% | |
| |
| REAL ESTATE 0.1% | |
| | | | |
Mirvac Group | | | | | 138,171 | | | $ | | | 281 | |
| | | | |
Scentre Group | | | | | 99,436 | | | | | | 213 | |
| | | | |
Stockland | | | | | 279,329 | | | | | | 902 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 1,396 | |
| | | | | | | | | | | | |
Total Australia | | | | | | | | | | | 1,396 | |
| | | | | | | | | | | | |
| |
| CANADA 0.2% | |
| |
| REAL ESTATE 0.2% | |
| | | | |
Artis Real Estate Investment Trust | | | | | 25,660 | | | | | | 215 | |
| | | | |
Cominar Real Estate Investment Trust (c) | | | | | 74,496 | | | | | | 475 | |
| | | | |
H&R Real Estate Investment Trust | | | | | 51,265 | | | | | | 535 | |
| | | | |
RioCan Real Estate Investment Trust | | | | | 23,259 | | | | | | 306 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 1,531 | |
| | | | | | | | | | | | |
Total Canada | | | | | | | | | | | 1,531 | |
| | | | | | | | | | | | |
| |
| FRANCE 0.1% | |
| |
| REAL ESTATE 0.1% | |
| | | | |
Unibail-Rodamco-Westfield | | | | | 8,884 | | | | | | 701 | |
| | | | | | | | | | | | |
Total France | | | | | | | | | | | 701 | |
| | | | | | | | | | | | |
| |
| | | | | | | | | | | | |
| | | | | SHARES | | | | | MARKET
VALUE
(000S) | |
| HONG KONG 0.0% | |
| |
| REAL ESTATE 0.0% | |
| | | | |
Link REIT | | | | | 30,800 | | | $ | | | 280 | |
| | | | | | | | | | | | |
Total Hong Kong | | | | | | | | | | | 280 | |
| | | | | | | | | | | | |
| |
| UNITED KINGDOM 0.0% | |
| |
| REAL ESTATE 0.0% | |
| | | | |
British Land Co. PLC | | | | | 61,128 | | | | | | 409 | |
| | | | | | | | | | | | |
Total United Kingdom | | | | | | | | | | | 409 | |
| | | | | | | | | | | | |
Total Real Estate Investment Trusts
(Cost $3,258) | | | 4,317 | |
| | | | |
| |
| RIGHTS 0.0% | |
| |
| SPAIN 0.0% | |
| |
| ENERGY 0.0% | |
| | | | |
Repsol S.A. | | | | | 117,656 | | | | | | 40 | |
| | | | | | | | | | | | |
Total Rights (Cost $41) | | | 40 | |
| | | | |
| |
| WARRANTS 0.0% | |
| |
| SPAIN 0.0% | |
| |
| INDUSTRIALS 0.0% | |
| | | | |
Abengoa S.A. ‘B’ -
Exp. 03/31/2025 « | | | | | 226,011 | | | | | | 0 | |
| | | | | | | | | | | | |
Total Warrants (Cost $0) | | | 0 | |
| | | | |
| |
| | | | | | | | | | | | |
| | | | | SHARES | | | | | MARKET
VALUE
(000S) | |
| SHORT-TERM INSTRUMENTS 0.2% | |
| |
| REPURCHASE AGREEMENTS (f) 0.2% | |
| | | | | | | | $ | | | 1,829 | |
| | | | | | | | | | | | |
Total Short-Term Instruments (Cost $1,829) | | | 1,829 | |
| | | | |
| | | | |
| | | | | | | | | | | | |
Total Investments in Securities (Cost $779,077) | | | 1,092,835 | |
| | | | |
| |
| INVESTMENTS IN AFFILIATES 4.2% | |
| |
| SHORT-TERM INSTRUMENTS 4.2% | |
| |
| MUTUAL FUNDS 4.2% | |
|
PIMCO Government Money Market Fund | |
0.150% (b)(c)(d) | | | | | 45,927,071 | | | | | | 45,927 | |
| | | | | | | | | | | | |
Total Short-Term Instruments (Cost $45,927) | | | 45,927 | |
| | | | |
| | | | |
| | | | | | | | | | | | |
Total Investments in Affiliates (Cost $45,927) | | | 45,927 | |
| |
| | | | |
Total Investments 104.2% (Cost $825,004) | | | $ | | | 1,138,762 | |
| |
| Other Assets and Liabilities, net (4.2)% | | | (45,507 | ) |
| | | | |
| Net Assets 100.0% | | | $ | | | 1,093,255 | |
| | | | | | | |
NOTES TO SCHEDULE OF INVESTMENTS:
| * | 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. |
| (b) | Institutional Class Shares of each Fund. |
| (c) | Securities with an aggregate market value of $41,532 were out on loan in exchange for $46,075 of cash collateral as of December 31, 2020. The collateral was invested in a cash collateral reinvestment vehicle as described in Note 5 in the Notes to Financial Statements. |
| (d) | Coupon represents a 7-Day Yield. |
(e) RESTRICTED SECURITIES:
| | | | | | | | | | | | | | |
| Issuer Description | | Acquisition
Date | | Cost | | | Market
Value | | | Market Value
as Percentage
of Net Assets | |
Great-West Lifeco, Inc. | | 03/12/2020 - 09/01/2020 | | $ | 215 | | | $ | 306 | | | | 0.03% | |
| | | | | | | | | | | | | | |
BORROWINGS AND OTHER FINANCING TRANSACTIONS
(f) 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 | |
| FICC | | | 0.000 | % | | | 12/31/2020 | | | | 01/04/2021 | | | $ | 1,829 | | | U.S. Treasury Bills 0.000% due 12/30/2021 | | $ | (1,866 | ) | | $ | 1,829 | | | $ | 1,829 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total Repurchase Agreements | | | | | $ | (1,866 | ) | | $ | 1,829 | | | $ | 1,829 | |
| | | | | | | | | | | | | | | |
| | | | | | |
| 52 | | PIMCO EQUITY SERIES | | | See Accompanying Notes | |
| | | | | | | | |
| | | | | | December 31, 2020 | | (Unaudited) |
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, 2020:
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Counterparty | | Repurchase
Agreement
Proceeds
to be
Received | | | Payable for
Reverse
Repurchase
Agreements | | | Payable for
Sale-Buyback
Transactions | | | Securities
Out on Loan | | | Total
Borrowings and
Other Financing
Transactions | | | Collateral
Pledged/(Received) | | | Net Exposure(1) | |
Global/Master Repurchase Agreement | |
FICC | | $ | 1,829 | | | $ | 0 | | | $ | 0 | | | $ | 0 | | | $ | 1,829 | | | $ | (1,866 | ) | | $ | (37 | ) |
|
Master Securities Lending Agreement | |
BCY | | | 0 | | | | 0 | | | | 0 | | | | 1,873 | | | | 1,873 | | | | (1,994 | ) | | | (121 | ) |
BMO | | | 0 | | | | 0 | | | | 0 | | | | 1,737 | | | | 1,737 | | | | (1,825 | ) | | | (88 | ) |
BOS | | | 0 | | | | 0 | | | | 0 | | | | 1,237 | | | | 1,237 | | | | (1,328 | ) | | | (91 | ) |
BSN | | | 0 | | | | 0 | | | | 0 | | | | 2,543 | | | | 2,543 | | | | (2,778 | ) | | | (235 | ) |
FOB | | | 0 | | | | 0 | | | | 0 | | | | 2,825 | | | | 2,825 | | | | (2,971 | ) | | | (146 | ) |
GSC | | | 0 | | | | 0 | | | | 0 | | | | 7,948 | | | | 7,948 | | | | (9,928 | ) | | | (1,980 | ) |
MBC | | | 0 | | | | 0 | | | | 0 | | | | 842 | | | | 842 | | | | (884 | ) | | | (42 | ) |
MSC | | | 0 | | | | 0 | | | | 0 | | | | 4,873 | | | | 4,873 | | | | (5,460 | ) | | | (587 | ) |
SAL | | | 0 | | | | 0 | | | | 0 | | | | 15,593 | | | | 15,593 | | | | (16,732 | ) | | | (1,139 | ) |
UBS | | | 0 | | | | 0 | | | | 0 | | | | 2,061 | | | | 2,061 | | | | (2,175 | ) | | | (114 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total Borrowings and Other Financing Transactions | | $ | 1,829 | | | $ | 0 | | | $ | 0 | | | $ | 41,532 | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
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 | |
Securities Lending Transactions(2) | |
Preferred Securities | | $ | 1,210 | | | $ | 0 | | | $ | 0 | | | $ | 0 | | | $ | 1,210 | |
Common Stocks | | | 44,717 | | | | 0 | | | | 0 | | | | 0 | | | | 44,717 | |
Real Estate Investment Trusts | | | 104 | | | | 0 | | | | 0 | | | | 0 | | | | 104 | |
Rights | | | 44 | | | | 0 | | | | 0 | | | | 0 | | | | 44 | |
| | | | | | | | | | | | | | | | | | | | |
Total Borrowings | | $ | 46,075 | | | $ | 0 | | | $ | 0 | | | $ | 0 | | | $ | 46,075 | |
| | | | | | | | | | | | | | | | | | | | |
Payable for securities on loan - cash collateral | | | $ | 46,075 | |
| | | | | |
| (1) | 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. |
| (2) | Includes cash collateral as described in Note 5 in the Notes to Financial Statements. |
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 and Other 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, 2020:
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | 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 | | | $ | 13 | | | $ | 0 | | | $ | 13 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | |
| See Accompanying Notes | | | SEMIANNUAL REPORT | | | | | | | DECEMBER 31, 2020 | | | 53 |
| | | | | | | | |
| Schedule of Investments | | PIMCO RAE International Fund | | (Cont.) | | | | |
FAIR VALUE MEASUREMENTS
The following is a summary of the fair valuations according to the inputs used as of December 31, 2020 in valuing the Fund’s assets and liabilities:
| | | | | | | | | | | | | | | | |
| Category and Subcategory | | Level 1 | | | Level 2 | | | Level 3 | | | Fair
Value at
12/31/2020 | |
Investments in Securities, at Value | |
Common Stocks | |
Australia | |
Communication Services | | $ | 0 | | | $ | 4,562 | | | $ | 0 | | | $ | 4,562 | |
Consumer Discretionary | | | 0 | | | | 4,020 | | | | 0 | | | | 4,020 | |
Consumer Staples | | | 0 | | | | 8,092 | | | | 0 | | | | 8,092 | |
Energy | | | 0 | | | | 682 | | | | 0 | | | | 682 | |
Financials | | | 0 | | | | 28,278 | | | | 0 | | | | 28,278 | |
Health Care | | | 0 | | | | 229 | | | | 0 | | | | 229 | |
Industrials | | | 0 | | | | 3,356 | | | | 0 | | | | 3,356 | |
Materials | | | 0 | | | | 20,238 | | | | 0 | | | | 20,238 | |
Real Estate | | | 0 | | | | 315 | | | | 0 | | | | 315 | |
Utilities | | | 0 | | | | 898 | | | | 0 | | | | 898 | |
Austria | |
Financials | | | 0 | | | | 253 | | | | 0 | | | | 253 | |
Industrials | | | 0 | | | | 335 | | | | 0 | | | | 335 | |
Materials | | | 0 | | | | 2,628 | | | | 0 | | | | 2,628 | |
Belgium | |
Communication Services | | | 0 | | | | 669 | | | | 0 | | | | 669 | |
Consumer Staples | | | 999 | | | | 1,937 | | | | 0 | | | | 2,936 | |
Financials | | | 0 | | | | 3,362 | | | | 0 | | | | 3,362 | |
Health Care | | | 0 | | | | 1,699 | | | | 0 | | | | 1,699 | |
Industrials | | | 0 | | | | 227 | | | | 0 | | | | 227 | |
Materials | | | 0 | | | | 1,131 | | | | 0 | | | | 1,131 | |
Canada | |
Communication Services | | | 2,006 | | | | 0 | | | | 0 | | | | 2,006 | |
Consumer Discretionary | | | 17,507 | | | | 0 | | | | 0 | | | | 17,507 | |
Consumer Staples | | | 2,422 | | | | 0 | | | | 0 | | | | 2,422 | |
Energy | | | 4,937 | | | | 0 | | | | 0 | | | | 4,937 | |
Financials | | | 12,362 | | | | 0 | | | | 0 | | | | 12,362 | |
Industrials | | | 4,963 | | | | 0 | | | | 0 | | | | 4,963 | |
Materials | | | 5,225 | | | | 0 | | | | 0 | | | | 5,225 | |
Utilities | | | 3,439 | | | | 0 | | | | 0 | | | | 3,439 | |
Denmark | |
Consumer Discretionary | | | 0 | | | | 461 | | | | 0 | | | | 461 | |
Consumer Staples | | | 0 | | | | 757 | | | | 0 | | | | 757 | |
Financials | | | 0 | | | | 1,666 | | | | 0 | | | | 1,666 | |
Health Care | | | 0 | | | | 348 | | | | 0 | | | | 348 | |
Industrials | | | 0 | | | | 5,092 | | | | 0 | | | �� | 5,092 | |
Finland | |
Financials | | | 0 | | | | 5,923 | | | | 0 | | | | 5,923 | |
Industrials | | | 0 | | | | 512 | | | | 0 | | | | 512 | |
Information Technology | | | 0 | | | | 593 | | | | 0 | | | | 593 | |
Materials | | | 0 | | | | 1,163 | | | | 0 | | | | 1,163 | |
France | |
Communication Services | | | 0 | | | | 6,414 | | | | 0 | | | | 6,414 | |
Consumer Discretionary | | | 0 | | | | 19,612 | | | | 0 | | | | 19,612 | |
Consumer Staples | | | 0 | | | | 6,242 | | | | 0 | | | | 6,242 | |
Energy | | | 0 | | | | 3,123 | | | | 0 | | | | 3,123 | |
Financials | | | 0 | | | | 8,053 | | | | 0 | | | | 8,053 | |
Health Care | | | 0 | | | | 5,093 | | | | 0 | | | | 5,093 | |
Industrials | | | 0 | | | | 21,185 | | | | 0 | | | | 21,185 | |
Information Technology | | | 0 | | | | 822 | | | | 0 | | | | 822 | |
Materials | | | 0 | | | | 452 | | | | 0 | | | | 452 | |
Utilities | | | 0 | | | | 16,476 | | | | 0 | | | | 16,476 | |
Germany | |
Communication Services | | | 0 | | | | 5,215 | | | | 0 | | | | 5,215 | |
Consumer Discretionary | | | 769 | | | | 20,057 | | | | 0 | | | | 20,826 | |
Consumer Staples | | | 0 | | | | 3,038 | | | | 0 | | | | 3,038 | |
Financials | | | 0 | | | | 20,405 | | | | 0 | | | | 20,405 | |
Health Care | | | 0 | | | | 4,266 | | | | 0 | | | | 4,266 | |
Industrials | | | 1,481 | | | | 32,896 | | | | 0 | | | | 34,377 | |
Information Technology | | | 0 | | | | 966 | | | | 0 | | | | 966 | |
Materials | | | 1,497 | | | | 27,509 | | | | 0 | | | | 29,006 | |
Utilities | | | 0 | | | | 6,149 | | | | 0 | | | | 6,149 | |
Hong Kong | |
Communication Services | | | 0 | | | | 462 | | | | 0 | | | | 462 | |
| | | | | | | | | | | | | | | | |
| Category and Subcategory | | Level 1 | | | Level 2 | | | Level 3 | | | Fair
Value at
12/31/2020 | |
Consumer Discretionary | | $ | 0 | | | $ | 2,231 | | | $ | 0 | | | $ | 2,231 | |
Financials | | | 0 | | | | 803 | | | | 0 | | | | 803 | |
Industrials | | | 0 | | | | 1,668 | | | | 0 | | | | 1,668 | |
Information Technology | | | 0 | | | | 8,872 | | | | 0 | | | | 8,872 | |
Materials | | | 0 | | | | 231 | | | | 0 | | | | 231 | |
Real Estate | | | 0 | | | | 8,948 | | | | 0 | | | | 8,948 | |
Ireland | |
Financials | | | 0 | | | | 951 | | | | 0 | | | | 951 | |
Health Care | | | 5,266 | | | | 0 | | | | 0 | | | | 5,266 | |
Industrials | | | 974 | | | | 484 | | | | 0 | | | | 1,458 | |
Materials | | | 922 | | | | 761 | | | | 0 | | | | 1,683 | |
Israel | |
Communication Services | | | 0 | | | | 1,654 | | | | 0 | | | | 1,654 | |
Energy | | | 0 | | | | 284 | | | | 0 | | | | 284 | |
Financials | | | 0 | | | | 1,984 | | | | 0 | | | | 1,984 | |
Health Care | | | 9,607 | | | | 0 | | | | 0 | | | | 9,607 | |
Materials | | | 0 | | | | 714 | | | | 0 | | | | 714 | |
Italy | |
Communication Services | | | 0 | | | | 2,890 | | | | 0 | | | | 2,890 | |
Energy | | | 0 | | | | 2,098 | | | | 0 | | | | 2,098 | |
Financials | | | 0 | | | | 14,558 | | | | 0 | | | | 14,558 | |
Industrials | | | 0 | | | | 656 | | | | 0 | | | | 656 | |
Utilities | | | 0 | | | | 11,934 | | | | 0 | | | | 11,934 | |
Japan | |
Communication Services | | | 0 | | | | 17,967 | | | | 0 | | | | 17,967 | |
Consumer Discretionary | | | 0 | | | | 65,115 | | | | 0 | | | | 65,115 | |
Consumer Staples | | | 0 | | | | 16,076 | | | | 0 | | | | 16,076 | |
Energy | | | 0 | | | | 2,419 | | | | 0 | | | | 2,419 | |
Financials | | | 0 | | | | 38,357 | | | | 0 | | | | 38,357 | |
Health Care | | | 0 | | | | 11,113 | | | | 0 | | | | 11,113 | |
Industrials | | | 0 | | | | 44,983 | | | | 0 | | | | 44,983 | |
Information Technology | | | 0 | | | | 60,655 | | | | 0 | | | | 60,655 | |
Materials | | | 0 | | | | 28,678 | | | | 0 | | | | 28,678 | |
Real Estate | | | 0 | | | | 2,430 | | | | 0 | | | | 2,430 | |
Utilities | | | 0 | | | | 8,741 | | | | 0 | | | | 8,741 | |
Luxembourg | |
Communication Services | | | 0 | | | | 2,022 | | | | 0 | | | | 2,022 | |
Energy | | | 0 | | | | 1,029 | | | | 0 | | | | 1,029 | |
Materials | | | 0 | | | | 35,086 | | | | 0 | | | | 35,086 | |
Macau | |
Consumer Discretionary | | | 0 | | | | 877 | | | | 0 | | | | 877 | |
Netherlands | |
Communication Services | | | 897 | | | | 1,005 | | | | 0 | | | | 1,902 | |
Consumer Staples | | | 536 | | | | 3,393 | | | | 0 | | | | 3,929 | |
Energy | | | 0 | | | | 15,532 | | | | 0 | | | | 15,532 | |
Financials | | | 0 | | | | 3,599 | | | | 0 | | | | 3,599 | |
Health Care | | | 0 | | | | 2,021 | | | | 0 | | | | 2,021 | |
Industrials | | | 0 | | | | 9,693 | | | | 0 | | | | 9,693 | |
Information Technology | | | 4,357 | | | | 0 | | | | 0 | | | | 4,357 | |
Materials | | | 0 | | | | 1,189 | | | | 0 | | | | 1,189 | |
New Zealand | |
Communication Services | | | 0 | | | | 653 | | | | 0 | | | | 653 | |
Industrials | | | 0 | | | | 790 | | | | 0 | | | | 790 | |
Materials | | | 0 | | | | 1,209 | | | | 0 | | | | 1,209 | |
Utilities | | | 0 | | | | 1,510 | | | | 0 | | | | 1,510 | |
Norway | |
Communication Services | | | 0 | | | | 2,634 | | | | 0 | | | | 2,634 | |
Consumer Staples | | | 201 | | | | 539 | | | | 0 | | | | 740 | |
Energy | | | 0 | | | | 2,845 | | | | 0 | | | | 2,845 | |
Financials | | | 0 | | | | 518 | | | | 0 | | | | 518 | |
Materials | | | 0 | | | | 7,085 | | | | 0 | | | | 7,085 | |
Portugal | |
Utilities | | | 0 | | | | 4,275 | | | | 0 | | | | 4,275 | |
Singapore | |
Communication Services | | | 0 | | | | 585 | | | | 0 | | | | 585 | |
Consumer Staples | | | 0 | | | | 304 | | | | 0 | | | | 304 | |
Financials | | | 0 | | | | 1,734 | | | | 0 | | | | 1,734 | |
| | | | | | |
| 54 | | PIMCO EQUITY SERIES | | | See Accompanying Notes | |
| | | | | | | | |
| | | | | | December 31, 2020 | | (Unaudited) |
| | | | | | | | | | | | | | | | |
| Category and Subcategory | | Level 1 | | | Level 2 | | | Level 3 | | | Fair
Value at
12/31/2020 | |
Industrials | | $ | 0 | | | $ | 2,376 | | | $ | 0 | | | $ | 2,376 | |
South Africa | |
Financials | | | 0 | | | | 209 | | | | 0 | | | | 209 | |
Spain | |
Communication Services | | | 0 | | | | 4,407 | | | | 0 | | | | 4,407 | |
Consumer Discretionary | | | 0 | | | | 378 | | | | 0 | | | | 378 | |
Energy | | | 0 | | | | 1,167 | | | | 0 | | | | 1,167 | |
Financials | | | 0 | | | | 12,105 | | | | 0 | | | | 12,105 | |
Industrials | | | 0 | | | | 1,260 | | | | 0 | | | | 1,260 | |
Utilities | | | 0 | | | | 6,336 | | | | 0 | | | | 6,336 | |
Sweden | |
Communication Services | | | 0 | | | | 543 | | | | 0 | | | | 543 | |
Consumer Discretionary | | | 456 | | | | 1,961 | | | | 0 | | | | 2,417 | |
Financials | | | 0 | | | | 2,432 | | | | 0 | | | | 2,432 | |
Industrials | | | 0 | | | | 5,310 | | | | 0 | | | | 5,310 | |
Switzerland | |
Communication Services | | | 0 | | | | 1,166 | | | | 0 | | | | 1,166 | |
Consumer Discretionary | | | 738 | | | | 7,717 | | | | 0 | | | | 8,455 | |
Consumer Staples | | | 0 | | | | 12,099 | | | | 0 | | | | 12,099 | |
Financials | | | 0 | | | | 19,410 | | | | 0 | | | | 19,410 | |
Health Care | | | 0 | | | | 16,855 | | | | 0 | | | | 16,855 | |
Industrials | | | 989 | | | | 9,575 | | | | 0 | | | | 10,564 | |
Information Technology | | | 929 | | | | 3,426 | | | | 0 | | | | 4,355 | |
Materials | | | 0 | | | | 4,110 | | | | 0 | | | | 4,110 | |
United Kingdom | |
Communication Services | | | 0 | | | | 9,265 | | | | 0 | | | | 9,265 | |
Consumer Discretionary | | | 5,175 | | | | 15,015 | | | | 0 | | | | 20,190 | |
Consumer Staples | | | 1,195 | | | | 9,705 | | | | 0 | | | | 10,900 | |
Energy | | | 0 | | | | 1,988 | | | | 0 | | | | 1,988 | |
Financials | | | 0 | | | | 18,641 | | | | 0 | | | | 18,641 | |
Health Care | | | 0 | | | | 5,936 | | | | 0 | | | | 5,936 | |
Industrials | | | 0 | | | | 13,956 | | | | 0 | | | | 13,956 | |
Information Technology | | | 0 | | | | 369 | | | | 0 | | | | 369 | |
| | | | | | | | | | | | | | | | |
| Category and Subcategory | | Level 1 | | | Level 2 | | | Level 3 | | | Fair
Value at
12/31/2020 | |
Materials | | $ | 0 | | | $ | 22,439 | | | $ | 0 | | | $ | 22,439 | |
Utilities | | | 0 | | | | 13,865 | | | | 0 | | | | 13,865 | |
United States | |
Consumer Discretionary | | | 0 | | | | 584 | | | | 0 | | | | 584 | |
Health Care | | | 2,388 | | | | 0 | | | | 0 | | | | 2,388 | |
Preferred Stocks | |
Germany | |
Industrials | | | 1,377 | | | | 2,187 | | | | 0 | | | | 3,564 | |
Real Estate Investment Trusts | |
Australia | |
Real Estate | | | 0 | | | | 1,396 | | | | 0 | | | | 1,396 | |
Canada | |
Real Estate | | | 1,531 | | | | 0 | | | | 0 | | | | 1,531 | |
France | |
Real Estate | | | 0 | | | | 701 | | | | 0 | | | | 701 | |
Hong Kong | |
Real Estate | | | 0 | | | | 280 | | | | 0 | | | | 280 | |
United Kingdom | |
Real Estate | | | 0 | | | | 409 | | | | 0 | | | | 409 | |
Rights | |
Spain | |
Energy | | | 40 | | | | 0 | | | | 0 | | | | 40 | |
Short-Term Instruments | |
Repurchase Agreements | | | 0 | | | | 1,829 | | | | 0 | | | | 1,829 | |
| | | | | | | | | | | | | | | | |
| | $ | 95,185 | | | $ | 997,650 | | | $ | 0 | | | $ | 1,092,835 | |
| | | | | | | | | | | | | | | | |
|
Investments in Affiliates, at Value | |
Short-Term Instruments | |
Mutual Funds | | | 45,927 | | | | 0 | | | | 0 | | | | 45,927 | |
| | | | | | | | | | | | | | | | |
| | | | |
Total Investments | | $ | 141,112 | | | $ | 997,650 | | | $ | 0 | | | $ | 1,138,762 | |
| | | | | | | | | | | | | | | | |
There were no significant transfers into or out of Level 3 during the period ended December 31, 2020.
| | | | | | | | | | | | |
| See Accompanying Notes | | | SEMIANNUAL REPORT | | | | | | | DECEMBER 31, 2020 | | | 55 |
| | | | | | | | |
| Schedule of Investments | | PIMCO RAE US Fund | | | | | | |
(Amounts in thousands*, except number of shares, contracts, units and ounces, if any)
| | | | | | | | | | | | |
| | | | | SHARES | | | | | MARKET
VALUE
(000S) | |
| INVESTMENTS IN SECURITIES 100.0% | |
| |
| COMMON STOCKS 98.9% | |
| |
| LUXEMBOURG 0.0% | |
| |
| MATERIALS 0.0% | |
| | | | |
Ternium S.A. SP - ADR (a) | | | | | 7,834 | | | $ | | | 228 | |
| | | | | | | | | | | | |
Total Luxembourg | | | | | | | | | | | 228 | |
| | | | | | | | | | | | |
| |
| SWITZERLAND 0.0% | |
| |
| FINANCIALS 0.0% | |
| | | | |
Chubb Ltd. | | | | | 902 | | | | | | 139 | |
| | | | | | | | | | | | |
Total Switzerland | | | | | | | | | | | 139 | |
| | | | | | | | | | | | |
| |
| UNITED KINGDOM 0.4% | |
| |
| COMMUNICATION SERVICES 0.3% | |
| | | | |
Liberty Global PLC (a) | | | | | 89,916 | | | | | | 2,127 | |
| | | | | | | | | | | | |
| |
| CONSUMER DISCRETIONARY 0.0% | |
| | | | |
Capri Holdings Ltd. (a) | | | | | 4,222 | | | | | | 177 | |
| | | | | | | | | | | | |
| |
| CONSUMER STAPLES 0.0% | |
| | | | |
Coca-Cola European Partners PLC | | | | | 3,802 | | | | | | 189 | |
| | | | | | | | | | | | |
| |
| INDUSTRIALS 0.0% | |
| | | | |
Pentair PLC | | | | | 3,438 | | | | | | 183 | |
| | | | | | | | | | | | |
| |
| MATERIALS 0.1% | |
| | | | |
Linde PLC | | | | | 1,861 | | | | | | 490 | |
| | | | | | | | | | | | |
Total United Kingdom | | | | | | | | | | | 3,166 | |
| | | | | | | | | | | | |
| |
| UNITED STATES 98.5% | |
| |
| COMMUNICATION SERVICES 4.3% | |
| | | | |
Alphabet, Inc. ‘C’ (a) | | | | | 536 | | | | | | 939 | |
| | | | |
Altice USA, Inc. ‘A’ (a) | | | | | 36,177 | | | | | | 1,370 | |
| | | | |
AT&T, Inc. | | | | | 77,243 | | | | | | 2,222 | |
| | | | |
CenturyLink, Inc. | | | | | 198,461 | | | | | | 1,935 | |
| | | | |
Charter Communications, Inc. ‘A’ (a) | | | | | 520 | | | | | | 344 | |
| | | | |
Comcast Corp. ‘A’ | | | | | 35,533 | | | | | | 1,862 | |
| | | | |
Facebook, Inc. ‘A’ (a) | | | | | 398 | | | | | | 109 | |
| | | | |
Interpublic Group of Cos., Inc. | | | | | 6,708 | | | | | | 158 | |
| | | | |
Liberty Latin America Ltd. ‘C’ (a) | | | | | 10,591 | | | | | | 117 | |
| | | | |
Liberty Media Corp-Liberty SiriusXM ‘C’ (a) | | | | | 41,716 | | | | | | 1,815 | |
| | | | |
News Corp. ‘A’ | | | | | 6,937 | | | | | | 125 | |
| | | | |
Omnicom Group, Inc. | | | | | 19,694 | | | | | | 1,228 | |
| | | | |
T-Mobile US, Inc. | | | | | 20,328 | | | | | | 2,741 | |
| | | | |
Telephone & Data Systems, Inc. | | | | | 8,075 | | | | | | 150 | |
| | | | |
Verizon Communications, Inc. | | | | | 179,868 | | | | | | 10,567 | |
| | | | |
ViacomCBS, Inc. ‘B’ | | | | | 111,911 | | | | | | 4,170 | |
| | | | |
Walt Disney Co. | | | | | 22,796 | | | | | | 4,130 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 33,982 | |
| | | | | | | | | | | | |
| |
| CONSUMER DISCRETIONARY 11.9% | |
| | | | |
Adient PLC (a) | | | | | 40,490 | | | | | | 1,408 | |
| | | | |
Aramark | | | | | 2,407 | | | | | | 93 | |
| | | | |
AutoNation, Inc. (a) | | | | | 6,537 | | | | | | 456 | |
| | | | |
Bed Bath & Beyond, Inc. (c) | | | | | 420,642 | | | | | | 7,471 | |
| | | | |
Best Buy Co., Inc. | | | | | 46,364 | | | | | | 4,627 | |
| | | | |
Booking Holdings, Inc. (a) | | | | | 67 | | | | | | 149 | |
| | | | | | | | | | | | |
| | | | | SHARES | | | | | MARKET
VALUE
(000S) | |
| | | | |
CarMax, Inc. (a) | | | | | 1,796 | | | $ | | | 170 | |
| | | | |
Carnival Corp. | | | | | 13,700 | | | | | | 297 | |
| | | | |
Carter’s, Inc. | | | | | 967 | | | | | | 91 | |
| | | | |
Dick’s Sporting Goods, Inc. | | | | | 14,135 | | | | | | 794 | |
| | | | |
Dillard’s, Inc. ‘A’ (c) | | | | | 20,399 | | | | | | 1,286 | |
| | | | |
Dollar General Corp. | | | | | 5,076 | | | | | | 1,067 | |
| | | | |
eBay, Inc. | | | | | 143,316 | | | | | | 7,202 | |
| | | | |
Expedia Group, Inc. | | | | | 9,566 | | | | | | 1,266 | |
| | | | |
Foot Locker, Inc. | | | | | 24,797 | | | | | | 1,003 | |
| | | | |
Ford Motor Co. | | | | | 374,482 | | | | | | 3,292 | |
| | | | |
GameStop Corp. ‘A’ (a)(c) | | | | | 50,413 | | | | | | 950 | |
| | | | |
Gap, Inc. | | | | | 65,458 | | | | | | 1,322 | |
| | | | |
General Motors Co. | | | | | 55,707 | | | | | | 2,320 | |
| | | | |
Goodyear Tire & Rubber Co. | | | | | 113,979 | | | | | | 1,243 | |
| | | | |
H&R Block, Inc. | | | | | 6,149 | | | | | | 97 | |
| | | | |
Harley-Davidson, Inc. | | | | | 3,484 | | | | | | 128 | |
| | | | |
Hasbro, Inc. | | | | | 1,156 | | | | | | 108 | |
| | | | |
Home Depot, Inc. | | | | | 8,654 | | | | | | 2,299 | |
| | | | |
International Game Technology PLC | | | | | 10,989 | | | | | | 186 | |
| | | | |
Kohl’s Corp. | | | | | 231,940 | | | | | | 9,438 | |
| | | | |
L Brands, Inc. | | | | | 54,857 | | | | | | 2,040 | |
| | | | |
Las Vegas Sands Corp. | | | | | 16,859 | | | | | | 1,005 | |
| | | | |
Lear Corp. | | | | | 9,040 | | | | | | 1,438 | |
| | | | |
LKQ Corp. (a) | | | | | 4,892 | | | | | | 172 | |
| | | | |
Lowe’s Cos., Inc. | | | | | 37,541 | | | | | | 6,026 | |
| | | | |
Macy’s, Inc. (c) | | | | | 304,996 | | | | | | 3,431 | |
| | | | |
Mattel, Inc. (a) | | | | | 19,027 | | | | | | 332 | |
| | | | |
McDonald’s Corp. | | | | | 8,037 | | | | | | 1,725 | |
| | | | |
MGM Resorts International | | | | | 3,494 | | | | | | 110 | |
| | | | |
Mohawk Industries, Inc. (a) | | | | | 726 | | | | | | 102 | |
| | | | |
Newell Brands, Inc. | | | | | 17,926 | | | | | | 380 | |
| | | | |
NIKE, Inc. ‘B’ | | | | | 5,822 | | | | | | 824 | |
| | | | |
Nordstrom, Inc. (c) | | | | | 83,454 | | | | | | 2,605 | |
| | | | |
NVR, Inc. (a) | | | | | 19 | | | | | | 77 | |
| | | | |
O’Reilly Automotive, Inc. (a) | | | | | 176 | | | | | | 80 | |
| | | | |
ODP Corp. | | | | | 10,415 | | | | | | 305 | |
| | | | |
Penske Automotive Group, Inc. | | | | | 1,292 | | | | | | 77 | |
| | | | |
Polaris, Inc. | | | | | 1,118 | | | | | | 106 | |
| | | | |
PulteGroup, Inc. | | | | | 18,662 | | | | | | 805 | |
| | | | |
PVH Corp. | | | | | 1,809 | | | | | | 170 | |
| | | | |
Qurate Retail, Inc. | | | | | 351,789 | | | | | | 3,859 | |
| | | | |
Ralph Lauren Corp. | | | | | 1,157 | | | | | | 120 | |
| | | | |
Royal Caribbean Cruises Ltd. | | | | | 2,536 | | | | | | 189 | |
| | | | |
Sally Beauty Holdings, Inc. (a) | | | | | 16,750 | | | | | | 218 | |
| | | | |
Signet Jewelers Ltd. | | | | | 19,635 | | | | | | 535 | |
| | | | |
Six Flags Entertainment Corp. | | | | | 3,477 | | | | | | 118 | |
| | | | |
Starbucks Corp. | | | | | 3,144 | | | | | | 336 | |
| | | | |
Tapestry, Inc. | | | | | 6,476 | | | | | | 201 | |
| | | | |
Target Corp. | | | | | 60,499 | | | | | | 10,680 | |
| | | | |
TJX Cos., Inc. | | | | | 12,826 | | | | | | 876 | |
| | | | |
Urban Outfitters, Inc. (a) | | | | | 3,791 | | | | | | 97 | |
| | | | |
Visteon Corp. (a) | | | | | 26,758 | | | | | | 3,359 | |
| | | | |
Wendy’s Co. | | | | | 5,796 | | | | | | 127 | |
| | | | |
Whirlpool Corp. | | | | | 8,381 | | | | | | 1,513 | |
| | | | |
Williams-Sonoma, Inc. | | | | | 913 | | | | | | 93 | |
| | | | |
Wyndham Destinations, Inc. | | | | | 3,721 | | | | | | 167 | |
| | | | |
Yum! Brands, Inc. | | | | | 14,148 | | | | | | 1,536 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 94,597 | |
| | | | | | | | | | | | |
| |
| CONSUMER STAPLES 10.7% | |
| | | | |
Altria Group, Inc. | | | | | 59,220 | | | | | | 2,428 | |
| | | | |
Archer-Daniels-Midland Co. | | | | | 55,288 | | | | | | 2,787 | |
| | | | |
Bunge Ltd. | | | | | 36,899 | | | | | | 2,420 | |
| | | | | | | | | | | | |
| | | | | SHARES | | | | | MARKET
VALUE
(000S) | |
| | | | |
Campbell Soup Co. | | | | | 2,405 | | | $ | | | 116 | |
| | | | |
Coca-Cola Co. | | | | | 93,590 | | | | | | 5,132 | |
| | | | |
Colgate-Palmolive Co. | | | | | 27,666 | | | | | | 2,366 | |
| | | | |
Conagra Brands, Inc. | | | | | 6,503 | | | | | | 236 | |
| | | | |
Costco Wholesale Corp. | | | | | 3,473 | | | | | | 1,308 | |
| | | | |
General Mills, Inc. | | | | | 22,334 | | | | | | 1,313 | |
| | | | |
Herbalife Nutrition Ltd. (a) | | | | | 5,766 | | | | | | 277 | |
| | | | |
Hershey Co. | | | | | 787 | | | | | | 120 | |
| | | | |
Ingredion, Inc. | | | | | 8,740 | | | | | | 688 | |
| | | | |
JM Smucker Co. | | | | | 2,618 | | | | | | 303 | |
| | | | |
Kellogg Co. | | | | | 3,482 | | | | | | 217 | |
| | | | |
Kimberly-Clark Corp. | | | | | 11,928 | | | | | | 1,608 | |
| | | | |
Kraft Heinz Co. | | | | | 59,644 | | | | | | 2,067 | |
| | | | |
Kroger Co. | | | | | 417,227 | | | | | | 13,251 | |
| | | | |
Molson Coors Brewing Co. ‘B’ | | | | | 16,260 | | | | | | 735 | |
| | | | |
Mondelez International, Inc. ‘A’ | | | | | 53,038 | | | | | | 3,101 | |
| | | | |
PepsiCo, Inc. | | | | | 58,168 | | | | | | 8,626 | |
| | | | |
Philip Morris International, Inc. | | | | | 63,304 | | | | | | 5,241 | |
| | | | |
Procter & Gamble Co. | | | | | 104,828 | | | | | | 14,586 | |
| | | | |
Rite Aid Corp. (a)(c) | | | | | 38,468 | | | | | | 609 | |
| | | | |
Spectrum Brands Holdings, Inc. | | | | | 3,090 | | | | | | 244 | |
| | | | |
Sysco Corp. | | | | | 12,009 | | | | | | 892 | |
| | | | |
Tyson Foods, Inc. ‘A’ | | | | | 2,732 | | | | | | 176 | |
| | | | |
U.S. Foods Holding Corp. (a) | | | | | 23,594 | | | | | | 786 | |
| | | | |
Walgreens Boots Alliance, Inc. | | | | | 43,407 | | | | | | 1,731 | |
| | | | |
Walmart, Inc. | | | | | 84,711 | | | | | | 12,211 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 85,575 | |
| | | | | | | | | | | | |
| |
| ENERGY 3.5% | |
| | | | |
Antero Resources Corp. (a) | | | | | 132,585 | | | | | | 723 | |
| | | | |
Apache Corp. | | | | | 84,553 | | | | | | 1,200 | |
| | | | |
Baker Hughes Co. | | | | | 25,214 | | | | | | 526 | |
| | | | |
Chevron Corp. | | | | | 19,796 | | | | | | 1,672 | |
| | | | |
ConocoPhillips | | | | | 179,729 | | | | | | 7,187 | |
| | | | |
Exxon Mobil Corp. | | | | | 145,538 | | | | | | 5,999 | |
| | | | |
Hess Corp. | | | | | 2,018 | | | | | | 106 | |
| | | | |
HollyFrontier Corp. | | | | | 87,549 | | | | | | 2,263 | |
| | | | |
Kinder Morgan, Inc. | | | | | 19,842 | | | | | | 271 | |
| | | | |
Marathon Oil Corp. | | | | | 295,008 | | | | | | 1,968 | |
| | | | |
Marathon Petroleum Corp. | | | | | 6,183 | | | | | | 256 | |
| | | | |
Murphy Oil Corp. | | | | | 34,516 | | | | | | 418 | |
| | | | |
Nabors Industries Ltd. | | | | | 2,073 | | | | | | 121 | |
| | | | |
NOV, Inc. | | | | | 19,796 | | | | | | 272 | |
| | | | |
Occidental Petroleum Corp. | | | | | 36,280 | | | | | | 628 | |
| | | | |
PBF Energy, Inc. ‘A’ | | | | | 6,979 | | | | | | 50 | |
| | | | |
Phillips 66 | | | | | 19,794 | | | | | | 1,384 | |
| | | | |
Range Resources Corp. | | | | | 81,191 | | | | | | 544 | |
| | | | |
Schlumberger NV | | | | | 4,564 | | | | | | 100 | |
| | | | |
Transocean Ltd. (a)(c) | | | | | 85,387 | | | | | | 197 | |
| | | | |
Valero Energy Corp. | | | | | 31,366 | | | | | | 1,774 | |
| | | | |
Williams Cos., Inc. | | | | | 7,801 | | | | | | 156 | |
| | | | |
World Fuel Services Corp. | | | | | 10,732 | | | | | | 334 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 28,149 | |
| | | | | | | | | | | | |
| |
| FINANCIALS 9.9% | |
| | | | |
Affiliated Managers Group, Inc. | | | | | 1,326 | | | | | | 135 | |
| | | | |
Aflac, Inc. | | | | | 32,729 | | | | | | 1,455 | |
| | | | |
Allstate Corp. | | | | | 25,157 | | | | | | 2,766 | |
| | | | |
Ally Financial, Inc. | | | | | 39,773 | | | | | | 1,418 | |
| | | | |
American Express Co. | | | | | 6,101 | | | | | | 738 | |
| | | | |
American International Group, Inc. | | | | | 182,764 | | | | | | 6,919 | |
| | | | |
Ameriprise Financial, Inc. | | | | | 12,085 | | | | | | 2,349 | |
| | | | |
Aon PLC | | | | | 568 | | | | | | 120 | |
| | | | | | |
| 56 | | PIMCO EQUITY SERIES | | | See Accompanying Notes | |
| | | | | | | | |
| | | | | | December 31, 2020 | | (Unaudited) |
| | | | | | | | | | | | |
| | | | | SHARES | | | | | MARKET
VALUE
(000S) | |
| | | | |
Assurant, Inc. | | | | | 823 | | | $ | | | 112 | |
| | | | |
Bank of America Corp. | | | | | 59,962 | | | | | | 1,817 | |
| | | | |
Bank of New York Mellon Corp. | | | | | 30,470 | | | | | | 1,293 | |
| | | | |
Berkshire Hathaway, Inc. ‘B’ (a) | | | | | 6,384 | | | | | | 1,480 | |
| | | | |
BlackRock, Inc. | | | | | 2,257 | | | | | | 1,629 | |
| | | | |
Brighthouse Financial, Inc. (a) | | | | | 4,447 | | | | | | 161 | |
| | | | |
Capital One Financial Corp. | | | | | 35,850 | | | | | | 3,544 | |
| | | | |
CIT Group, Inc. | | | | | 33,470 | | | | | | 1,202 | |
| | | | |
Citigroup, Inc. | | | | | 113,678 | | | | | | 7,009 | |
| | | | |
Citizens Financial Group, Inc. | | | | | 12,056 | | | | | | 431 | |
| | | | |
CNO Financial Group, Inc. | | | | | 12,106 | | | | | | 269 | |
| | | | |
Comerica, Inc. | | | | | 2,582 | | | | | | 144 | |
| | | | |
Discover Financial Services | | | | | 19,574 | | | | | | 1,772 | |
| | | | |
Equitable Holdings, Inc. | | | | | 6,903 | | | | | | 177 | |
| | | | |
Fifth Third Bancorp | | | | | 29,648 | | | | | | 817 | |
| | | | |
Franklin Resources, Inc. | | | | | 220,261 | | | | | | 5,504 | |
| | | | |
Genworth Financial, Inc. ‘A’ (a) | | | | | 188,480 | | | | | | 712 | |
| | | | |
Goldman Sachs Group, Inc. | | | | | 5,594 | | | | | | 1,475 | |
| | | | |
Hartford Financial Services Group, Inc. | | | | | 1,613 | | | | | | 79 | |
| | | | |
Invesco Ltd. | | | | | 39,145 | | | | | | 682 | |
| | | | |
Jefferies Financial Group, Inc. | | | | | 35,210 | | | | | | 866 | |
| | | | |
JPMorgan Chase & Co. | | | | | 38,134 | | | | | | 4,846 | |
| | | | |
Lincoln National Corp. | | | | | 10,785 | | | | | | 543 | |
| | | | |
Loews Corp. | | | | | 19,303 | | | | | | 869 | |
| | | | |
MetLife, Inc. | | | | | 62,628 | | | | | | 2,940 | |
| | | | |
Morgan Stanley | | | | | 4,508 | | | | | | 309 | |
| | | | |
Navient Corp. | | | | | 103,533 | | | | | | 1,017 | |
| | | |
New York Community Bancorp, Inc. | | | 15,879 | | | | | | 168 | |
| | | | |
Old Republic International Corp. | | | | | 6,645 | | | | | | 131 | |
| | | | |
OneMain Holdings, Inc. | | | | | 2,793 | | | | | | 135 | |
| | | | |
PNC Financial Services Group, Inc. | | | | | 8,952 | | | | | | 1,334 | |
| | | | |
Principal Financial Group, Inc. | | | | | 4,438 | | | | | | 220 | |
| | | | |
Prudential Financial, Inc. | | | | | 6,608 | | | | | | 516 | |
| | | | |
Regions Financial Corp. | | | | | 13,158 | | | | | | 212 | |
| | | | |
Santander Consumer USA Holdings, Inc. | | | | | 6,832 | | | | | | 150 | |
| | | | |
State Street Corp. | | | | | 8,895 | | | | | | 647 | |
| | | | |
Synchrony Financial | | | | | 15,838 | | | | | | 550 | |
| | | | |
T Rowe Price Group, Inc. | | | | | 1,090 | | | | | | 165 | |
| | | | |
Travelers Cos., Inc. | | | | | 31,125 | | | | | | 4,369 | |
| | | | |
U.S. Bancorp | | | | | 20,467 | | | | | | 954 | |
| | | | |
Unum Group | | | | | 11,965 | | | | | | 274 | |
| | | | |
Voya Financial, Inc. | | | | | 44,263 | | | | | | 2,603 | |
| | | | |
Wells Fargo & Co. | | | | | 301,145 | | | | | | 9,089 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 79,116 | |
| | | | | | | | | | | | |
| |
| HEALTH CARE 19.2% | |
| | | | |
AbbVie, Inc. | | | | | 181,880 | | | | | | 19,488 | |
| | | | |
AmerisourceBergen Corp. | | | | | 936 | | | | | | 92 | |
| | | | |
Amgen, Inc. | | | | | 92,551 | | | | | | 21,279 | |
| | | | |
Anthem, Inc. | | | | | 16,768 | | | | | | 5,384 | |
| | | | |
Biogen, Inc. (a) | | | | | 12,448 | | | | | | 3,048 | |
| | | | |
Bristol-Myers Squibb Co. | | | | | 42,299 | | | | | | 2,624 | |
| | | | |
Brookdale Senior Living, Inc. (a) | | | | | 18,307 | | | | | | 81 | |
| | | | |
Cardinal Health, Inc. | | | | | 24,984 | | | | | | 1,338 | |
| | | | |
Cigna Corp. | | | | | 5,986 | | | | | | 1,246 | |
| | | | |
CVS Health Corp. | | | | | 33,163 | | | | | | 2,265 | |
| | | | |
DaVita, Inc. (a) | | | | | 29,445 | | | | | | 3,457 | |
| | | | |
Dentsply Sirona, Inc. | | | | | 2,246 | | | | | | 118 | |
| | | | |
Eli Lilly & Co. | | | | | 1,552 | | | | | | 262 | |
| | | | |
Gilead Sciences, Inc. | | | | | 398,318 | | | | | | 23,206 | |
| | | | |
HCA Healthcare, Inc. | | | | | 29,820 | | | | | | 4,904 | |
| | | | |
Henry Schein, Inc. (a) | | | | | 1,747 | | | | | | 117 | |
| | | | | | | | | | | | |
| | | | | SHARES | | | | | MARKET
VALUE
(000S) | |
| | | | |
Humana, Inc. | | | | | 10,935 | | | $ | | | 4,486 | |
| | | | |
Johnson & Johnson | | | | | 61,664 | | | | | | 9,705 | |
| | | | |
McKesson Corp. | | | | | 53,311 | | | | | | 9,272 | |
| | | | |
MEDNAX, Inc. (a) | | | | | 8,342 | | | | | | 205 | |
| | | | |
Merck & Co., Inc. | | | | | 97,397 | | | | | | 7,967 | |
| | | | |
Pfizer, Inc. | | | | | 710,906 | | | | | | 26,168 | |
| | | | |
Quest Diagnostics, Inc. | | | | | 4,589 | | | | | | 547 | |
| | | | |
Tenet Healthcare Corp. (a) | | | | | 11,904 | | | | | | 475 | |
| | | | |
United Therapeutics Corp. (a) | | | | | 801 | | | | | | 122 | |
| | | | |
UnitedHealth Group, Inc. | | | | | 5,836 | | | | | | 2,047 | |
| | | | |
Universal Health Services, Inc. ‘B’ | | | | | 3,995 | | | | | | 549 | |
| | | | |
Viatris, Inc. (a) | | | | | 109,393 | | | | | | 2,050 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 152,502 | |
| | | | | | | | | | | | |
| |
| INDUSTRIALS 8.3% | |
| | | | |
3M Co. | | | | | 14,628 | | | | | | 2,557 | |
| | | | |
AGCO Corp. | | | | | 9,760 | | | | | | 1,006 | |
| | | | |
Alaska Air Group, Inc. | | | | | 7,830 | | | | | | 407 | |
| | | | |
Allison Transmission Holdings, Inc. | | | | | 2,579 | | | | | | 111 | |
| | | | |
American Airlines Group, Inc. (c) | | | | | 61,627 | | | | | | 972 | |
| | | | |
Avis Budget Group, Inc. (a) | | | | | 10,743 | | | | | | 401 | |
| | | | |
Boeing Co. | | | | | 3,536 | | | | | | 757 | |
| | | | |
Carrier Global Corp. | | | | | 7,765 | | | | | | 293 | |
| | | | |
Caterpillar, Inc. | | | | | 9,065 | | | | | | 1,650 | |
| | | | |
CH Robinson Worldwide, Inc. | | | | | 8,851 | | | | | | 831 | |
| | | | |
Colfax Corp. (a) | | | | | 2,166 | | | | | | 83 | |
| | | | |
CSX Corp. | | | | | 1,691 | | | | | | 153 | |
| | | | |
Cummins, Inc. | | | | | 6,214 | | | | | | 1,411 | |
| | | | |
Deere & Co. | | | | | 803 | | | | | | 216 | |
| | | | |
Delta Air Lines, Inc. | | | | | 6,076 | | | | | | 244 | |
| | | | |
Dover Corp. | | | | | 833 | | | | | | 105 | |
| | | | |
Eaton Corp. PLC | | | | | 25,120 | | | | | | 3,018 | |
| | | | |
Emerson Electric Co. | | | | | 27,004 | | | | | | 2,170 | |
| | | | |
Expeditors International of Washington, Inc. | | | | | 7,049 | | | | | | 670 | |
| | | | |
FedEx Corp. | | | | | 34,211 | | | | | | 8,882 | |
| | | | |
Fluor Corp. | | | | | 209,235 | | | | | | 3,341 | |
| | | | |
Fortune Brands Home & Security, Inc. | | | | | 2,375 | | | | | | 204 | |
| | | | |
General Dynamics Corp. | | | | | 3,731 | | | | | | 555 | |
| | | | |
General Electric Co. | | | | | 1,290,530 | | | | | | 13,938 | |
| | | | |
Honeywell International, Inc. | | | | | 7,041 | | | | | | 1,498 | |
| | | | |
Howmet Aerospace, Inc. | | | | | 4,000 | | | | | | 114 | |
| | | | |
Illinois Tool Works, Inc. | | | | | 12,086 | | | | | | 2,464 | |
| | | | |
JetBlue Airways Corp. (a) | | | | | 22,685 | | | | | | 330 | |
| | | | |
Johnson Controls International PLC | | | | | 3,280 | | | | | | 153 | |
| | | | |
Lockheed Martin Corp. | | | | | 792 | | | | | | 281 | |
| | | | |
Macquarie Infrastructure Corp. | | | | | 3,169 | | | | | | 119 | |
| | | | |
ManpowerGroup, Inc. | | | | | 37,836 | | | | | | 3,412 | |
| | | | |
Masco Corp. | | | | | 1,741 | | | | | | 96 | |
| | | | |
Neilsen Holdings PLC | | | | | 54,011 | | | | | | 1,127 | |
| | | | |
Norfolk Southern Corp. | | | | | 1,742 | | | | | | 414 | |
| | | | |
Northrop Grumman Corp. | | | | | 1,083 | | | | | | 330 | |
| | | | |
Otis Worldwide Corp. | | | | | 3,882 | | | | | | 262 | |
| | | | |
Owens Corning | | | | | 2,625 | | | | | | 199 | |
| | | | |
Pitney Bowes, Inc. | | | | | 31,056 | | | | | | 191 | |
| | | | |
Quanta Services, Inc. | | | | | 5,319 | | | | | | 383 | |
| | | | |
Raytheon Technologies Corp. | | | | | 11,420 | | | | | | 817 | |
| | | | |
Robert Half International, Inc. | | | | | 4,261 | | | | | | 266 | |
| | | | |
Ryder System, Inc. | | | | | 6,560 | | | | | | 405 | |
| | | | |
Southwest Airlines Co. | | | | | 20,375 | | | | | | 950 | |
| | | | | | | | | | | | |
| | | | | SHARES | | | | | MARKET
VALUE
(000S) | |
| | | | |
Spirit AeroSystems Holdings, Inc. ‘A’ | | | | | 79,420 | | | $ | | | 3,105 | |
| | | | |
Textron, Inc. | | | | | 1,416 | | | | | | 68 | |
| | | | |
Union Pacific Corp. | | | | | 16,174 | | | | | | 3,368 | |
| | | | |
United Airlines Holdings, Inc. (a) | | | | | 2,768 | | | | | | 120 | |
| | | | |
United Rentals, Inc. (a) | | | | | 1,149 | | | | | | 266 | |
| | | | |
Waste Management, Inc. | | | | | 872 | | | | | | 103 | |
| | | | |
WW Grainger, Inc. | | | | | 1,819 | | | | | | 743 | |
| | | | |
XPO Logistics, Inc. (a) | | | | | 1,927 | | | | | | 230 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 65,789 | |
| | | | | | | | | | | | |
| |
| INFORMATION TECHNOLOGY 24.4% | |
| | | | |
Activision Blizzard, Inc. | | | | | 46,001 | | | | | | 4,271 | |
| | | | |
Alliance Data Systems Corp. | | | | | 19,530 | | | | | | 1,447 | |
| | | | |
Amdocs Ltd. | | | | | 8,978 | | | | | | 637 | |
| | | | |
Apple, Inc. | | | | | 277,498 | | | | | | 36,821 | |
| | | | |
Applied Materials, Inc. | | | | | 66,228 | | | | | | 5,715 | |
| | | | |
Arrow Electronics, Inc. (a) | | | | | 14,773 | | | | | | 1,437 | |
| | | | |
Avnet, Inc. | | | | | 33,054 | | | | | | 1,161 | |
| | | | |
Booz Allen Hamilton Holding Corp. | | | | | 1,117 | | | | | | 97 | |
| | | | |
Cisco Systems, Inc. | | | | | 443,076 | | | | | | 19,828 | |
| | | | |
Citrix Systems, Inc. | | | | | 10,919 | | | | | | 1,421 | |
| | | | |
Cognizant Technology Solutions Corp. ‘A’ | | | | | 2,748 | | | | | | 225 | |
| | | | |
Corning, Inc. | | | | | 108,618 | | | | | | 3,910 | |
| | | | |
Dell Technologies, Inc. ‘C’ (a) | | | | | 8,300 | | | | | | 608 | |
| | | | |
DXC Technology Co. | | | | | 89,861 | | | | | | 2,314 | |
| | | | |
Electronic Arts, Inc. | | | | | 16,077 | | | | | | 2,309 | |
| | | | |
F5 Networks, Inc. (a) | | | | | 4,000 | | | | | | 704 | |
| | | | |
Flex Ltd. (a) | | | | | 75,308 | | | | | | 1,354 | |
| | | | |
Hewlett Packard Enterprise Co. | | | | | 241,526 | | | | | | 2,862 | |
| | | | |
HP, Inc. | | | | | 83,795 | | | | | | 2,061 | |
| | | | |
Intel Corp. | | | | | 210,974 | | | | | | 10,511 | |
| | | | |
International Business Machines Corp. | | | | | 112,712 | | | | | | 14,188 | |
| | | | |
Jabil, Inc. | | | | | 33,111 | | | | | | 1,408 | |
| | | | |
Juniper Networks, Inc. | | | | | 88,480 | | | | | | 1,992 | |
| | | | |
KLA Corp. | | | | | 5,181 | | | | | | 1,341 | |
| | | | |
Lam Research Corp. | | | | | 776 | | | | | | 367 | |
| | | | |
Leidos Holdings, Inc. | | | | | 2,282 | | | | | | 240 | |
| | | | |
Micron Technology, Inc. (a) | | | | | 52,956 | | | | | | 3,981 | |
| | | | |
Microsoft Corp. | | | | | 75,195 | | | | | | 16,725 | |
| | | | |
Motorola Solutions, Inc. | | | | | 1,454 | | | | | | 247 | |
| | | | |
NCR Corp. (a) | | | | | 5,731 | | | | | | 215 | |
| | | | |
NetApp, Inc. | | | | | 103,968 | | | | | | 6,887 | |
| | | | |
NortonLifeLock, Inc. | | | | | 191,986 | | | | | | 3,989 | |
| | | | |
Oracle Corp. | | | | | 131,027 | | | | | | 8,476 | |
| | | | |
Qorvo, Inc. (a) | | | | | 5,387 | | | | | | 896 | |
| | | | |
QUALCOMM, Inc. | | | | | 125,830 | | | | | | 19,169 | |
| | | | |
Seagate Technology PLC | | | | | 61,700 | | | | | | 3,835 | |
| | | | |
Skyworks Solutions, Inc. | | | | | 2,638 | | | | | | 403 | |
| | | | |
Teradata Corp. (a) | | | | | 8,526 | | | | | | 192 | |
| | | | |
Texas Instruments, Inc. | | | | | 22,495 | | | | | | 3,692 | |
| | | | |
Western Digital Corp. | | | | | 99,125 | | | | | | 5,491 | |
| | | | |
Western Union Co. | | | | | 20,097 | | | | | | 441 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 193,868 | |
| | | | | | | | | | | | |
| |
| MATERIALS 2.0% | |
| | | | |
Alcoa Corp. (a) | | | | | 90,764 | | | | | | 2,092 | |
| | | | |
DuPont de Nemours, Inc. | | | | | 4,717 | | | | | | 335 | |
| | | | |
Eastman Chemical Co. | | | | | 8,457 | | | | | | 848 | |
| | | | |
Huntsman Corp. | | | | | 18,004 | | | | | | 453 | |
| | | | |
International Paper Co. | | | | | 41,783 | | | | | | 2,078 | |
| | | | | | | | | | | | |
| See Accompanying Notes | | | SEMIANNUAL REPORT | | | | | | | DECEMBER 31, 2020 | | | 57 |
| | | | | | | | |
| Schedule of Investments | | PIMCO RAE US Fund | | (Cont.) | | | | |
| | | | | | | | | | | | |
| | | | | SHARES | | | | | MARKET
VALUE
(000S) | |
| | | | |
LyondellBasell Industries NV ‘A’ | | | | | 60,794 | | | $ | | | 5,572 | |
| | | | |
Mosaic Co. | | | | | 53,885 | | | | | | 1,240 | |
| | | | |
Packaging Corp. of America | | | | | 600 | | | | | | 83 | |
| | | | |
PPG Industries, Inc. | | | | | 12,990 | | | | | | 1,873 | |
| | | | |
Reliance Steel & Aluminum Co. | | | | | 7,356 | | | | | | 881 | |
| | | | |
Sealed Air Corp. | | | | | 9,674 | | | | | | 443 | |
| | | | |
WestRock Co. | | | | | 4,494 | | | | | | 196 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 16,094 | |
| | | | | | | | | | | | |
| |
| REAL ESTATE 0.0% | |
| | | | |
Jones Lang LaSalle, Inc. | | | | | 741 | | | | | | 110 | |
| | | | | | | | | | | | |
| |
| UTILITIES 4.3% | |
| | | | |
AES Corp. | | | | | 133,663 | | | | | | 3,141 | |
| | | | |
Ameren Corp. | | | | | 17,543 | | | | | | 1,369 | |
| | | | |
American Electric Power Co., Inc. | | | | | 36,259 | | | | | | 3,019 | |
| | | | |
CenterPoint Energy, Inc. | | | | | 13,808 | | | | | | 299 | |
| | | | |
CMS Energy Corp. | | | | | 2,393 | | | | | | 146 | |
| | | | |
Consolidated Edison, Inc. | | | | | 9,293 | | | | | | 672 | |
| | | | |
Dominion Energy, Inc. | | | | | 3,453 | | | | | | 260 | |
| | | | |
DTE Energy Co. | | | | | 1,562 | | | | | | 190 | |
| | | | |
Duke Energy Corp. | | | | | 52,770 | | | | | | 4,832 | |
| | | | |
Edison International | | | | | 8,388 | | | | | | 527 | |
| | | | |
Entergy Corp. | | | | | 5,411 | | | | | | 540 | |
| | | | |
Eversource Energy | | | | | 16,670 | | | | | | 1,442 | |
| | | | |
Exelon Corp. | | | | | 136,559 | | | | | | 5,765 | |
| | | | |
FirstEnergy Corp. | | | | | 17,966 | | | | | | 550 | |
| | | | |
NextEra Energy, Inc. | | | | | 1,818 | | | | | | 140 | |
| | | | |
Pinnacle West Capital Corp. | | | | | 10,562 | | | | | | 844 | |
| | | | |
PPL Corp. | | | | | 75,162 | | | | | | 2,120 | |
| | | | |
Public Service Enterprise Group, Inc. | | | | | 31,438 | | | | | | 1,833 | |
| | | | | | | | | | | | |
| | | | | SHARES | | | | | MARKET
VALUE
(000S) | |
| | | | |
Sempra Energy | | | | | 950 | | | $ | | | 121 | |
| | | | |
Southern Co. | | | | | 63,429 | | | | | | 3,896 | |
| | | | |
UGI Corp. | | | | | 7,039 | | | | | | 246 | |
| | | | |
Vistra Corp. | | | | | 10,208 | | | | | | 201 | |
| | | | |
WEC Energy Group, Inc. | | | | | 3,618 | | | | | | 333 | |
| | | | |
Xcel Energy, Inc. | | | | | 30,668 | | | | | | 2,045 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 34,531 | |
| | | | | | | | | | | | |
Total United States | | | | | | | | | | | 784,313 | |
| | | | | | | | | | | | |
Total Common Stocks (Cost $557,269) | | | 787,846 | |
| | | | |
| |
| REAL ESTATE INVESTMENT TRUSTS 0.7% | |
| |
| UNITED STATES 0.7% | |
| |
| FINANCIALS 0.0% | |
| | | | |
Annaly Capital Management, Inc. | | | | | 21,727 | | | | | | 184 | |
| | | | |
Starwood Property Trust, Inc. | | | | | 4,419 | | | | | | 85 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 269 | |
| | | | | | | | | | | | |
| |
| REAL ESTATE 0.7% | |
| | | | |
Brixmor Property Group, Inc. | | | | | 5,578 | | | | | | 92 | |
| | | | |
Colony Capital, Inc. | | | | | 28,639 | | | | | | 138 | |
| | | | |
CoreCivic, Inc. | | | | | 11,615 | | | | | | 76 | |
| | | | |
Diversified Healthcare Trust | | | | | 20,826 | | | | | | 86 | |
| | | | |
Host Hotels & Resorts, Inc. | | | | | 31,239 | | | | | | 457 | |
| | | | |
Iron Mountain, Inc. | | | | | 16,391 | | | | | | 483 | |
| | | | |
Macerich Co. (c) | | | | | 6,345 | | | | | | 68 | |
| | | | |
Park Hotels & Resorts, Inc. | | | | | 83,893 | | | | | | 1,439 | |
| | | | |
Service Properties Trust | | | | | 9,865 | | | | | | 113 | |
| | | | |
SL Green Realty Corp. | | | | | 1,874 | | | | | | 112 | |
| | | | |
Ventas, Inc. | | | | | 28,514 | | | | | | 1,398 | |
| | | | |
VEREIT, Inc. | | | | | 2,690 | | | | | | 102 | |
| | | | | | | | | | | | |
| | | | | SHARES | | | | | MARKET
VALUE
(000S) | |
| | | | |
Welltower, Inc. | | | | | 1,868 | | | $ | | | 121 | |
| | | | |
Weyerhaeuser Co. | | | | | 15,364 | | | | | | 515 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 5,200 | |
| | | | | | | | | | | | |
Total Real Estate Investment Trusts
(Cost $5,466) | | | 5,469 | |
| | | | |
| |
| SHORT-TERM INSTRUMENTS 0.4% | |
| |
| REPURCHASE AGREEMENTS (e) 0.4% | |
| | | | | | | | | | | 2,951 | |
| | | | | | | | | | | | |
Total Short-Term Instruments
(Cost $2,951) | | | 2,951 | |
| | | | |
| | | | |
| | | | | | | | | | | | |
Total Investments in Securities
(Cost $565,686) | | | 796,266 | |
| | | | |
| |
| INVESTMENTS IN AFFILIATES 1.8% | |
| |
| SHORT-TERM INSTRUMENTS 1.8% | |
| |
| MUTUAL FUNDS 1.8% | |
|
PIMCO Government Money Market Fund | |
0.150% (b)(c)(d) | | | | | 14,270,242 | | | | | | 14,270 | |
| | | | | | | | | | | | |
Total Short-Term Instruments (Cost $14,270) | | | 14,270 | |
| | | | |
| | | | |
| | | | | | | | | | | | |
Total Investments in Affiliates (Cost $14,270) | | | 14,270 | |
| | | | |
| | | | | | | | | | | | |
Total Investments 101.8% (Cost $579,956) | | | | | | $ | | | 810,536 | |
| |
| Other Assets and Liabilities, net (1.8)% | | | (14,507 | ) |
| | | | |
| Net Assets 100.0% | | | $ | | | 796,029 | |
| | | | | | | |
NOTES TO SCHEDULE OF INVESTMENTS:
| * | 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) | Institutional Class Shares of each Fund. |
| (c) | Securities with an aggregate market value of $13,982 were out on loan in exchange for $14,270 of cash collateral as of December 31, 2020. The collateral was invested in a cash collateral reinvestment vehicle as described in Note 5 in the Notes to Financial Statements. |
| (d) | Coupon represents a 7-Day Yield. |
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 | |
| FICC | | | 0.000 | % | | | 12/31/2020 | | | | 01/04/2021 | | | $ | 2,951 | | | U.S. Treasury Bills 0.000% due 12/30/2021 | | $ | (3,010 | ) | | $ | 2,951 | | | $ | 2,951 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total Repurchase Agreements | | | | | $ | (3,010 | ) | | $ | 2,951 | | | $ | 2,951 | |
| | | | | | | | | | | | | | | |
| | | | | | |
| 58 | | PIMCO EQUITY SERIES | | | See Accompanying Notes | |
| | | | | | | | |
| | | | | | December 31, 2020 | | (Unaudited) |
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, 2020:
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Counterparty | | Repurchase
Agreement
Proceeds
to be
Received | | | Payable for
Reverse
Repurchase
Agreements | | | Payable for
Sale-Buyback
Transactions | | | Securities
Out on Loan | | | Total
Borrowings and
Other Financing
Transactions | | | Collateral
Pledged/(Received) | | | Net Exposure(1) | |
Global/Master Repurchase Agreement | |
FICC | | $ | 2,951 | | | $ | 0 | | | $ | 0 | | | $ | 0 | | | $ | 2,951 | | | $ | (3,010 | ) | | $ | (59 | ) |
|
Master Securities Lending Agreement | |
GSC | | | 0 | | | | 0 | | | | 0 | | | | 10,340 | | | | 10,340 | | | | (10,552 | ) | | | (212 | ) |
MSC | | | 0 | | | | 0 | | | | 0 | | | | 3,642 | | | | 3,642 | | | | (3,718 | ) | | | (76 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total Borrowings and Other Financing Transactions | | $ | 2,951 | | | $ | 0 | | | $ | 0 | | | $ | 13,982 | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
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 | |
Securities Lending Transactions(2) | |
Common Stocks | | $ | 14,202 | | | $ | 0 | | | $ | 0 | | | $ | 0 | | | $ | 14,202 | |
Real Estate Investment Trusts | | | 68 | | | | 0 | | | | 0 | | | | 0 | | | | 68 | |
| | | | | | | | | | | | | | | | | | | | |
Total Borrowings | | $ | 14,270 | | | $ | 0 | | | $ | 0 | | | $ | 0 | | | $ | 14,270 | |
| | | | | | | | | | | | | | | | | | | | |
Payable for securities on loan - cash collateral | | | $ | 14,270 | |
| | | | | |
| (1) | 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. |
| (2) | Includes cash collateral as described in Note 5 in the Notes to Financial Statements. |
FAIR VALUE MEASUREMENTS
The following is a summary of the fair valuations according to the inputs used as of December 31, 2020 in valuing the Fund’s assets and liabilities:
| | | | | | | | | | | | | | | | |
| Category and Subcategory | | Level 1 | | | Level 2 | | | Level 3 | | | Fair
Value at
12/31/2020 | |
Investments in Securities, at Value | | | | | | | | | | | | | | | | |
Common Stocks | | | | | | | | | | | | | | | | |
Luxembourg | | | | | | | | | | | | | | | | |
Materials | | $ | 228 | | | $ | 0 | | | $ | 0 | | | $ | 228 | |
Switzerland | | | | | | | | | | | | | | | | |
Financials | | | 139 | | | | 0 | | | | 0 | | | | 139 | |
United Kingdom | | | | | | | | | | | | | | | | |
Communication Services | | | 2,127 | | | | 0 | | | | 0 | | | | 2,127 | |
Consumer Discretionary | | | 177 | | | | 0 | | | | 0 | | | | 177 | |
Consumer Staples | | | 189 | | | | 0 | | | | 0 | | | | 189 | |
Industrials | | | 183 | | | | 0 | | | | 0 | | | | 183 | |
Materials | | | 490 | | | | 0 | | | | 0 | | | | 490 | |
United States | | | | | | | | | | | | | | | | |
Communication Services | | | 33,982 | | | | 0 | | | | 0 | | | | 33,982 | |
Consumer Discretionary | | | 94,597 | | | | 0 | | | | 0 | | | | 94,597 | |
Consumer Staples | | | 85,575 | | | | 0 | | | | 0 | | | | 85,575 | |
Energy | | | 28,149 | | | | 0 | | | | 0 | | | | 28,149 | |
Financials | | | 79,116 | | | | 0 | | | | 0 | | | | 79,116 | |
Health Care | | | 152,502 | | | | 0 | | | | 0 | | | | 152,502 | |
Industrials | | | 65,789 | | | | 0 | | | | 0 | | | | 65,789 | |
| | | | | | | | | | | | | | | | |
| Category and Subcategory | | Level 1 | | | Level 2 | | | Level 3 | | | Fair
Value at
12/31/2020 | |
Information Technology | | $ | 193,868 | | | $ | 0 | | | $ | 0 | | | $ | 193,868 | |
Materials | | | 16,094 | | | | 0 | | | | 0 | | | | 16,094 | |
Real Estate | | | 110 | | | | 0 | | | | 0 | | | | 110 | |
Utilities | | | 34,531 | | | | 0 | | | | 0 | | | | 34,531 | |
Real Estate Investment Trusts | | | | | | | | | | | | | | | | |
United States | | | | | | | | | | | | | | | | |
Financials | | | 269 | | | | 0 | | | | 0 | | | | 269 | |
Real Estate | | | 5,200 | | | | 0 | | | | 0 | | | | 5,200 | |
Short-Term Instruments | | | | | | | | | | | | | | | | |
Repurchase Agreements | | | 0 | | | | 2,951 | | | | 0 | | | | 2,951 | |
| | | | | | | | | | | | | | | | |
| | $ | 793,315 | | | $ | 2,951 | | | $ | 0 | | | $ | 796,266 | |
| | | | | | | | | | | | | | | | |
|
Investments in Affiliates, at Value | |
Short-Term Instruments | | | | | | | | | | | | | | | | |
Mutual Funds | | | 14,270 | | | | 0 | | | | 0 | | | | 14,270 | |
| | | | | | | | | | | | | | | | |
| | | | |
Total Investments | | $ | 807,585 | | | $ | 2,951 | | | $ | 0 | | | $ | 810,536 | |
| | | | | | | | | | | | | | | | |
There were no significant transfers into or out of Level 3 during the period ended December 31, 2020.
| | | | | | | | | | | | |
| See Accompanying Notes | | | SEMIANNUAL REPORT | | | | | | | DECEMBER 31, 2020 | | | 59 |
| | | | | | | | |
| Schedule of Investments | | PIMCO RAE US Small Fund | | | | | | |
(Amounts in thousands*, except number of shares, contracts, units and ounces, if any)
| | | | | | | | | | | | |
| | | | | SHARES | | | | | MARKET
VALUE
(000S) | |
| INVESTMENTS IN SECURITIES 99.9% | |
| |
| COMMON STOCKS 92.1% | |
| |
| LUXEMBOURG 0.0% | |
| |
| MATERIALS 0.0% | |
| | | | |
Orion Engineered Carbons S.A. | | | | | 7,593 | | | $ | | | 130 | |
| | | | | | | | | | | | |
Total Luxembourg | | | | | | 130 | |
| | | | | | | | | | | | |
| |
| UNITED KINGDOM 0.3% | |
| |
| CONSUMER STAPLES 0.1% | |
| | | | |
Nomad Foods Ltd. (a) | | | | | 8,868 | | | | | | 226 | |
| | | | | | | | | | | | |
| |
| FINANCIALS 0.2% | |
| | | | |
Janus Henderson Group PLC | | | | | 39,399 | | | | | | 1,281 | |
| | | | | | | | | | | | |
| |
| INFORMATION TECHNOLOGY 0.0% | |
| | | | |
Cardtronics PLC ‘A’ (a) | | | | | 2,107 | | | | | | 74 | |
| | | | | | | | | | | | |
| |
| MATERIALS 0.0% | |
| | | | |
Venator Materials PLC (a) | | | | | 23,968 | | | | | | 79 | |
| | | | | | | | | | | | |
Total United Kingdom | | | | | | | | | | | 1,660 | |
| | | | | | | | | | | | |
| |
| UNITED STATES 91.8% | |
| |
| COMMUNICATION SERVICES 2.0% | |
| | | | |
AMC Entertainment Holdings, Inc. ‘A’ (c) | | | | | 142,204 | | | | | | 301 | |
| | | | |
AMC Networks, Inc. ‘A’ (a)(c) | | | | | 16,179 | | | | | | 579 | |
| | | | |
ATN International, Inc. | | | | | 1,438 | | | | | | 60 | |
| | | | |
Cars.com, Inc. (a) | | | | | 27,269 | | | | | | 308 | |
| | | | |
Cinemark Holdings, Inc. (c) | | | | | 57,776 | | | | | | 1,006 | |
| | | | |
Clear Channel Outdoor Holdings, Inc. (a) | | | | | 300,000 | | | | | | 495 | |
| | | | |
Cogent Communications Holdings, Inc. | | | | | 2,139 | | | | | | 128 | |
| | | | |
Comscore, Inc. (a) | | | | | 24,406 | | | | | | 61 | |
| | | | |
Consolidated Communications Holdings, Inc. (a) | | | | | 38,181 | | | | | | 187 | |
| | | | |
Entercom Communications Corp. ‘A’ | | | | | 16,804 | | | | | | 42 | |
| | | | |
Gannett Co., Inc. (a) | | | | | 25,291 | | | | | | 85 | |
| | | | |
Gray Television, Inc. (a) | | | | | 5,565 | | | | | | 100 | |
| | | | |
iHeartMedia, Inc. ‘A’ (a) | | | | | 63,092 | | | | | | 819 | |
| | | | |
Iridium Communications, Inc. (a) | | | | | 5,572 | | | | | | 219 | |
| | | | |
John Wiley & Sons, Inc. ‘A’ | | | | | 24,495 | | | | | | 1,118 | |
| | | | |
Lions Gate Entertainment Corp. ‘A’ (a) | | | | | 60,489 | | | | | | 688 | |
| | | | |
Marcus Corp. | | | | | 4,083 | | | | | | 55 | |
| | | | |
Meredith Corp. | | | | | 7,251 | | | | | | 139 | |
| | | | |
MSG Networks, Inc. ‘A’ (a) | | | | | 4,103 | | | | | | 60 | |
| | | | |
NII Holdings, Inc. | | | | | 22,836 | | | | | | 47 | |
| | | | |
Scholastic Corp. | | | | | 15,130 | | | | | | 378 | |
| | | | |
Shenandoah Telecommunications Co. | | | | | 1,835 | | | | | | 79 | |
| | | | |
Sinclair Broadcast Group, Inc. ‘A’ | | | | | 41,258 | | | | | | 1,314 | |
| | | | |
TEGNA, Inc. | | | | | 120,266 | | | | | | 1,678 | |
| | | | |
TripAdvisor, Inc. (a) | | | | | 24,998 | | | | | | 719 | |
| | | | |
TrueCar, Inc. (a) | | | | | 11,065 | | | | | | 46 | |
| | | | |
Vonage Holdings Corp. (a) | | | | | 14,029 | | | | | | 181 | |
| | | | |
Yelp, Inc. (a) | | | | | 4,372 | | | | | | 143 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 11,035 | |
| | | | | | | | | | | | |
| |
| CONSUMER DISCRETIONARY 17.6% | |
| | | | |
Aaron’s Co., Inc. (a) | | | | | 12,213 | | | | | | 232 | |
| | | | | | | | | | | | |
| | | | | SHARES | | | | | MARKET
VALUE
(000S) | |
| | | | |
Abercrombie & Fitch Co. ‘A’ | | | | | 468,593 | | | $ | | | 9,541 | |
| | | | |
Acushnet Holdings Corp. | | | | | 9,861 | | | | | | 400 | |
| | | | |
Adtalem Global Education, Inc. (a) | | | | | 16,714 | | | | | | 567 | |
| | | | |
American Axle & Manufacturing Holdings, Inc. (a) | | | | | 58,074 | | | | | | 484 | |
| | | | |
American Eagle Outfitters, Inc. | | | | | 75,584 | | | | | | 1,517 | |
| | | | |
American Outdoor Brands, Inc. (a) | | | | | 9,254 | | | | | | 158 | |
| | | | |
Asbury Automotive Group, Inc. (a) | | | | | 19,601 | | | | | | 2,857 | |
| | | | |
At Home Group, Inc. (a) | | | | | 8,256 | | | | | | 128 | |
| | | | |
Big Lots, Inc. | | | | | 24,548 | | | | | | 1,054 | |
| | | | |
BJ’s Restaurants, Inc. | | | | | 2,565 | | | | | | 99 | |
| | | | |
Bloomin’ Brands, Inc. | | | | | 67,654 | | | | | | 1,314 | |
| | | | |
Boyd Gaming Corp. | | | | | 7,235 | | | | | | 311 | |
| | | | |
Brinker International, Inc. | | | | | 59,770 | | | | | | 3,381 | |
| | | | |
Buckle, Inc. (c) | | | | | 42,728 | | | | | | 1,248 | |
| | | | |
Caesars Entertainment, Inc. (a) | | | | | 1,391 | | | | | | 103 | |
| | | | |
Caleres, Inc. | | | | | 9,592 | | | | | | 150 | |
| | | | |
Callaway Golf Co. | | | | | 3,234 | | | | | | 78 | |
| | | | |
Camping World Holdings, Inc. ‘A’ | | | | | 3,868 | | | | | | 101 | |
| | | | |
Cavco Industries, Inc. (a) | | | | | 266 | | | | | | 47 | |
| | | | |
Century Communities, Inc. (a) | | | | | 1,766 | | | | | | 77 | |
| | | | |
Cheesecake Factory, Inc. | | | | | 96,953 | | | | | | 3,593 | |
| | | | |
Chico’s FAS, Inc. | | | | | 108,200 | | | | | | 172 | |
| | | | |
Children’s Place, Inc. | | | | | 4,417 | | | | | | 221 | |
| | | | |
Churchill Downs, Inc. | | | | | 5,903 | | | | | | 1,150 | |
| | | | |
Conn’s, Inc. (a) | | | | | 8,303 | | | | | | 97 | |
| | | | |
Cooper Tire & Rubber Co. | | | | | 47,300 | | | | | | 1,916 | |
| | | | |
Cooper-Standard Holding, Inc. (a) | | | | | 10,940 | | | | | | 379 | |
| | | | |
Core-Mark Holding Co., Inc. | | | | | 116,961 | | | | | | 3,435 | |
| | | | |
Cracker Barrel Old Country Store, Inc. | | | | | 5,563 | | | | | | 734 | |
| | | | |
Crocs, Inc. (a) | | | | | 2,384 | | | | | | 149 | |
| | | | |
Dana, Inc. | | | | | 69,597 | | | | | | 1,359 | |
| | | | |
Dave & Buster’s Entertainment, Inc. | | | | | 3,147 | | | | | | 94 | |
| | | | |
Deckers Outdoor Corp. (a) | | | | | 7,278 | | | | | | 2,087 | |
| | | | |
Denny’s Corp. (a) | | | | | 5,132 | | | | | | 75 | |
| | | | |
Designer Brands, Inc. | | | | | 55,054 | | | | | | 421 | |
| | | | |
Dine Brands Global, Inc. | | | | | 950 | | | | | | 55 | |
| | | | |
Dorman Products, Inc. (a) | | | | | 2,222 | | | | | | 193 | |
| | | | |
Extended Stay America, Inc. | | | | | 83,927 | | | | | | 1,243 | |
| | | | |
Floor & Decor Holdings, Inc. (a) | | | | | 1,552 | | | | | | 144 | |
| | | | |
Fossil Group, Inc. (a) | | | | | 51,053 | | | | | | 443 | |
| | | | |
frontdoor, Inc. (a) | | | | | 4,367 | | | | | | 219 | |
| | | | |
G-III Apparel Group Ltd. (a) | | | | | 19,946 | | | | | | 474 | |
| | | | |
Genesco, Inc. (a) | | | | | 8,674 | | | | | | 261 | |
| | | | |
Gentherm, Inc. (a) | | | | | 2,594 | | | | | | 169 | |
| | | | |
GoPro, Inc. ‘A’ (a) | | | | | 15,066 | | | | | | 125 | |
| | | | |
Graham Holdings Co. ‘B’ | | | | | 2,272 | | | | | | 1,212 | |
| | | | |
Group 1 Automotive, Inc. | | | | | 19,173 | | | | | | 2,514 | |
| | | | |
Groupon, Inc. (a) | | | | | 24,164 | | | | | | 918 | |
| | | | |
Guess?, Inc. | | | | | 29,813 | | | | | | 674 | |
| | | | |
Helen of Troy Ltd. (a) | | | | | 8,351 | | | | | | 1,855 | |
| | | | |
Hilton Grand Vacations, Inc. (a) | | | | | 35,494 | | | | | | 1,113 | |
| | | | |
Houghton Mifflin Harcourt Co. (a) | | | | | 220,713 | | | | | | 735 | |
| | | | |
Installed Building Products, Inc. (a) | | | | | 972 | | | | | | 99 | |
| | | | |
iRobot Corp. (a) | | | | | 836 | | | | | | 67 | |
| | | | |
Jack in the Box, Inc. | | | | | 62,146 | | | | | | 5,767 | |
| | | | |
KB Home | | | | | 29,391 | | | | | | 985 | |
| | | | |
La-Z-Boy, Inc. | | | | | 21,892 | | | | | | 872 | |
| | | | |
Laureate Education, Inc. ‘A’ (a) | | | | | 8,903 | | | | | | 130 | |
| | | | |
LCI Industries | | | | | 1,289 | | | | | | 167 | |
| | | | |
LGI Homes, Inc. (a) | | | | | 974 | | | | | | 103 | |
| | | | |
Lithia Motors, Inc. ‘A’ | | | | | 4,853 | | | | | | 1,420 | |
| | | | |
M/I Homes, Inc. (a) | | | | | 8,592 | | | | | | 381 | |
| | | | |
MDC Holdings, Inc. | | | | | 18,897 | | | | | | 918 | |
| | | | | | | | | | | | |
| | | | | SHARES | | | | | MARKET
VALUE
(000S) | |
| | | | |
Meritage Homes Corp. (a) | | | | | 16,774 | | | $ | | | 1,389 | |
| | | | |
Michaels Cos., Inc. (a) | | | | | 47,324 | | | | | | 616 | |
| | | | |
Modine Manufacturing Co. (a) | | | | | 8,280 | | | | | | 104 | |
| | | | |
Monro, Inc. | | | | | 1,633 | | | | | | 87 | |
| | | | |
Movado Group, Inc. | | | | | 3,517 | | | | | | 58 | |
| | | | |
Murphy USA, Inc. | | | | | 17,631 | | | | | | 2,307 | |
| | | | |
National Vision Holdings, Inc. (a) | | | | | 3,100 | | | | | | 140 | |
| | | | |
ODP Corp. | | | | | 32,306 | | | | | | 947 | |
| | | | |
Oxford Industries, Inc. | | | | | 1,837 | | | | | | 120 | |
| | | | |
Papa John’s International, Inc. | | | | | 6,976 | | | | | | 592 | |
| | | | |
Party City Holdco, Inc. (a) | | | | | 80,632 | | | | | | 496 | |
| | | | |
Penn National Gaming, Inc. (a) | | | | | 17,518 | | | | | | 1,513 | |
| | | | |
Perdoceo Education Corp. (a) | | | | | 4,355 | | | | | | 55 | |
| | | | |
Red Rock Resorts, Inc. ‘A’ | | | | | 9,629 | | | | | | 241 | |
| | | | |
Regis Corp. (a) | | | | | 9,373 | | | | | | 86 | |
| | | | |
Rent-A-Center, Inc. | | | | | 16,167 | | | | | | 619 | |
| | | | |
RH - Restoration Hardware Holdings, Inc. (a) | | | | | 1,234 | | | | | | 552 | |
| | | | |
Scientific Games Corp. ‘A’ (a) | | | | | 5,060 | | | | | | 210 | |
| | | | |
SeaWorld Entertainment, Inc. (a) | | | | | 23,374 | | | | | | 738 | |
| | | | |
Signet Jewelers Ltd. | | | | | 392,497 | | | | | | 10,703 | |
| | | | |
Sleep Number Corp. (a) | | | | | 4,108 | | | | | | 336 | |
| | | | |
Smith & Wesson Brands, Inc. | | | | | 11,992 | | | | | | 213 | |
| | | | |
Sonic Automotive, Inc. ‘A’ | | | | | 32,430 | | | | | | 1,251 | |
| | | | |
Stamps.com, Inc. (a) | | | | | 949 | | | | | | 186 | |
| | | | |
Standard Motor Products, Inc. | | | | | 1,177 | | | | | | 48 | |
| | | | |
Steven Madden Ltd. | | | | | 19,400 | | | | | | 685 | |
| | | | |
Strategic Education, Inc. | | | | | 417 | | | | | | 40 | |
| | | | |
Stride, Inc. (a) | | | | | 4,079 | | | | | | 87 | |
| | | | |
Sturm Ruger & Co., Inc. | | | | | 1,828 | | | | | | 119 | |
| | | | |
Taylor Morrison Home Corp. ‘A’ (a) | | | | | 17,025 | | | | | | 437 | |
| | | | |
Tempur Sealy International, Inc. (a) | | | | | 71,043 | | | | | | 1,918 | |
| | | | |
Tenneco, Inc. ‘A’ (a) | | | | | 140,567 | | | | | | 1,490 | |
| | | | |
Thor Industries, Inc. | | | | | 15,220 | | | | | | 1,415 | |
| | | | |
TopBuild Corp. (a) | | | | | 1,759 | | | | | | 324 | |
| | | | |
TRI Pointe Group, Inc. (a) | | | | | 50,122 | | | | | | 865 | |
| | | | |
Tupperware Brands Corp. (a) | | | | | 66,159 | | | | | | 2,143 | |
| | | | |
Winnebago Industries, Inc. | | | | | 1,145 | | | | | | 69 | |
| | | | |
Wolverine World Wide, Inc. | | | | | 23,998 | | | | | | 750 | |
| | | | |
WW International, Inc. (a) | | | | | 4,151 | | | | | | 101 | |
| | | | |
Zumiez, Inc. (a) | | | | | 1,946 | | | | | | 72 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 97,107 | |
| | | | | | | | | | | | |
| |
| CONSUMER STAPLES 8.8% | |
| | | | |
Andersons, Inc. | | | | | 3,420 | | | | | | 84 | |
| | | | |
B&G Foods, Inc. (c) | | | | | 104,605 | | | | | | 2,901 | |
| | | | |
BJ’s Wholesale Club Holdings, Inc. (a) | | | | | 7,435 | | | | | | 277 | |
| | | | |
Boston Beer Co., Inc. ‘A’ (a) | | | | | 1,272 | | | | | | 1,265 | |
| | | | |
Central Garden & Pet Co. ‘A’ (a) | | | | | 6,072 | | | | | | 221 | |
| | | | |
Chefs’ Warehouse, Inc. (a) | | | | | 1,649 | | | | | | 42 | |
| | | | |
Coca-Cola Consolidated, Inc. | | | | | 313 | | | | | | 83 | |
| | | | |
Darling Ingredients, Inc. (a) | | | | | 55,894 | | | | | | 3,224 | |
| | | | |
Edgewell Personal Care Co. | | | | | 34,899 | | | | | | 1,207 | |
| | | | |
Energizer Holdings, Inc. | | | | | 2,919 | | | | | | 123 | |
| | | | |
Flowers Foods, Inc. | | | | | 85,670 | | | | | | 1,939 | |
| | | | |
Fresh Del Monte Produce, Inc. | | | | | 28,268 | | | | | | 680 | |
| | | | |
Hain Celestial Group, Inc. (a) | | | | | 29,648 | | | | | | 1,190 | |
| | | | |
Hostess Brands, Inc. (a) | | | | | 8,725 | | | | | | 128 | |
| | | | |
Ingles Markets, Inc. ‘A’ | | | | | 13,702 | | | | | | 584 | |
| | | | |
Inter Parfums, Inc. | | | | | 1,080 | | | | | | 65 | |
| | | | |
J&J Snack Foods Corp. | | | | | 2,341 | | | | | | 364 | |
| | | | |
John B Sanfilippo & Son, Inc. | | | | | 722 | | | | | | 57 | |
| | | | |
Lancaster Colony Corp. | | | | | 3,013 | | | | | | 554 | |
| | | | |
National Beverage Corp. (c) | | | | | 2,779 | | | | | | 236 | |
| | | | | | |
| 60 | | PIMCO EQUITY SERIES | | | See Accompanying Notes | |
| | | | | | | | |
| | | | | | December 31, 2020 | | (Unaudited) |
| | | | | | | | | | | | |
| | | | | SHARES | | | | | MARKET
VALUE
(000S) | |
| | | | |
Nu Skin Enterprises, Inc. ‘A’ | | | | | 51,330 | | | $ | | | 2,804 | |
| | | | |
Performance Food Group Co. (a) | | | | | 35,269 | | | | | | 1,679 | |
| | | | |
PriceSmart, Inc. | | | | | 5,623 | | | | | | 512 | |
| | | | |
Rite Aid Corp. (a)(c) | | | | | 1,247,906 | | | | | | 19,754 | |
| | | | |
Sanderson Farms, Inc. | | | | | 7,645 | | | | | | 1,011 | |
| | | | |
SpartanNash Co. | | | | | 13,383 | | | | | | 233 | |
| | | | |
Sprouts Farmers Market, Inc. (a) | | | | | 29,794 | | | | | | 599 | |
| | | | |
TreeHouse Foods, Inc. (a) | | | | | 20,347 | | | | | | 864 | |
| | | | |
United Natural Foods, Inc. (a) | | | | | 55,138 | | | | | | 881 | |
| | | | |
Universal Corp. | | | | | 31,875 | | | | | | 1,549 | |
| | | | |
USANA Health Sciences, Inc. (a) | | | | | 5,321 | | | | | | 410 | |
| | | | |
Vector Group Ltd. | | | | | 101,260 | | | | | | 1,180 | |
| | | | |
WD-40 Co. | | | | | 391 | | | | | | 104 | |
| | | | |
Weis Markets, Inc. | | | | | 39,628 | | | | | | 1,895 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 48,699 | |
| | | | | | | | | | | | |
| |
| ENERGY 9.7% | |
| | | | |
Arch Resources, Inc. | | | | | 56,237 | | | | | | 2,462 | |
| | | | |
Archrock, Inc. | | | | | 37,549 | | | | | | 325 | |
| | | | |
Callon Petroleum Co. (a)(c) | | | | | 3,672 | | | | | | 48 | |
| | | | |
Centennial Resource Development, Inc. (a)(c) | | | | | 1,772,574 | | | | | | 2,659 | |
| | | | |
ChampionX Corp. (a) | | | | | 4,613 | | | | | | 71 | |
| | | | |
CNX Resources Corp. (a) | | | | | 70,180 | | | | | | 758 | |
| | | | |
CONSOL Energy, Inc. (a) | | | | | 21,387 | | | | | | 154 | |
| | | | |
Delek U.S. Holdings, Inc. | | | | | 18,680 | | | | | | 300 | |
| | | | |
Dril-Quip, Inc. (a) | | | | | 12,001 | | | | | | 356 | |
| | | | |
Forum Energy Technologies, Inc. (a) | | | | | 401 | | | | | | 5 | |
| | | | |
Green Plains, Inc. (a) | | | | | 8,741 | | | | | | 115 | |
| | | | |
Helix Energy Solutions Group, Inc. (a) | | | | | 28,817 | | | | | | 121 | |
| | | | |
Kosmos Energy Ltd. | | | | | 25,107 | | | | | | 59 | |
| | | | |
Nabors Industries Ltd. (c) | | | | | 213,125 | | | | | | 12,410 | |
| | | | |
Oceaneering International, Inc. (a) | | | | | 751,828 | | | | | | 5,977 | |
| | | | |
Oil States International, Inc. (a) | | | | | 12,626 | | | | | | 63 | |
| | | | |
Par Pacific Holdings, Inc. (a) | | | | | 4,655 | | | | | | 65 | |
| | | | |
Patterson-UTI Energy, Inc. | | | | | 986,926 | | | | | | 5,191 | |
| | | | |
PDC Energy, Inc. (a) | | | | | 17,626 | | | | | | 362 | |
| | | | |
Peabody Energy Corp. (a) | | | | | 36,877 | | | | | | 89 | |
| | | | |
QEP Resources, Inc. | | | | | 46,433 | | | | | | 111 | |
| | | | |
Range Resources Corp. | | | | | 615,621 | | | | | | 4,125 | |
| | | | |
Renewable Energy Group, Inc. (a) | | | | | 41,982 | | | | | | 2,973 | |
| | | | |
SM Energy Co. | | | | | 1,734,286 | | | | | | 10,614 | |
| | | | |
Southwestern Energy Co. (a) | | | | | 1,221,017 | | | | | | 3,639 | |
| | | | |
Tidewater, Inc. (a) | | | | | 5,696 | | | | | | 49 | |
| | | | |
U.S. Silica Holdings, Inc. | | | | | 16,988 | | | | | | 119 | |
| | | | |
World Fuel Services Corp. | | | | | 7,966 | | | | | | 248 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 53,468 | |
| | | | | | | | | | | | |
| |
| FINANCIALS 10.9% | |
| | | | |
Affiliated Managers Group, Inc. | | | | | 17,413 | | | | | | 1,771 | |
| | | | |
Ambac Financial Group, Inc. (a) | | | | | 10,944 | | | | | | 168 | |
| | | | |
Amerant Bancorp, Inc. (a) | | | | | 2,268 | | | | | | 34 | |
| | | | |
American Equity Investment Life Holding Co. | | | | | 35,952 | | | | | | 994 | |
| | | | |
American National Group, Inc. | | | | | 2,273 | | | | | | 218 | |
| | | | |
Ameris Bancorp | | | | | 1,792 | | | | | | 68 | |
| | | | |
Amerisafe, Inc. | | | | | 1,405 | | | | | | 81 | |
| | | | |
Artisan Partners Asset Management, Inc. ‘A’ | | | | | 22,004 | | | | | | 1,108 | |
| | | | |
Associated Banc-Corp. | | | | | 41,539 | | | | | | 708 | |
| | | | |
Atlantic Union Bankshares Corp. | | | | | 2,119 | | | | | | 70 | |
| | | | |
Axos Financial, Inc. (a) | | | | | 2,643 | | | | | | 99 | |
| | | | | | | | | | | | |
| | | | | SHARES | | | | | MARKET
VALUE
(000S) | |
| | | | |
Banc of California, Inc. | | | | | 2,962 | | | $ | | | 44 | |
| | | | |
BancFirst Corp. | | | | | 1,051 | | | | | | 62 | |
| | | | |
BancorpSouth Bank | | | | | 15,847 | | | | | | 435 | |
| | | | |
Bank of Hawaii Corp. | | | | | 12,092 | | | | | | 926 | |
| | | | |
Bank OZK | | | | | 21,485 | | | | | | 672 | |
| | | | |
BankUnited, Inc. | | | | | 36,225 | | | | | | 1,260 | |
| | | | |
Banner Corp. | | | | | 1,782 | | | | | | 83 | |
| | | | |
Berkshire Hills Bancorp, Inc. | | | | | 3,419 | | | | | | 59 | |
| | | | |
BGC Partners, Inc. ‘A’ | | | | | 98,694 | | | | | | 395 | |
| | | | |
Blucora, Inc. (a) | | | | | 3,404 | | | | | | 54 | |
| | | | |
Boston Private Financial Holdings, Inc. | | | | | 6,792 | | | | | | 57 | |
| | | | |
Brookline Bancorp, Inc. | | | | | 6,725 | | | | | | 81 | |
| | | | |
Bryn Mawr Bank Corp. | | | | | 1,565 | | | | | | 48 | |
| | | | |
Cadence BanCorp | | | | | 5,928 | | | | | | 97 | |
| | | | |
Camden National Corp. | | | | | 1,278 | | | | | | 46 | |
| | | | |
Cannae Holdings, Inc. (a) | | | | | 30,473 | | | | | | 1,349 | |
| | | | |
Capitol Federal Financial, Inc. | | | | | 58,231 | | | | | | 728 | |
| | | | |
Cathay General Bancorp | | | | | 18,206 | | | | | | 586 | |
| | | | |
Central Pacific Financial Corp. | | | | | 4,788 | | | | | | 91 | |
| | | | |
City Holding Co. | | | | | 911 | | | | | | 63 | |
| | | | |
Cohen & Steers, Inc. | | | | | 6,144 | | | | | | 457 | |
| | | | |
Columbia Banking System, Inc. | | | | | 13,441 | | | | | | 483 | |
| | | | |
Community Bank System, Inc. | | | | | 8,489 | | | | | | 529 | |
| | | | |
Community Trust Bancorp, Inc. | | | | | 2,033 | | | | | | 75 | |
| | | | |
Customers Bancorp, Inc. (a) | | | | | 3,783 | | | | | | 69 | |
| | | | |
CVB Financial Corp. | | | | | 4,746 | | | | | | 93 | |
| | | | |
Dime Community Bancshares, Inc. | | | | | 2,591 | | | | | | 41 | |
| | | | |
Eagle Bancorp, Inc. | | | | | 1,847 | | | | | | 76 | |
| | | | |
Employers Holdings, Inc. | | | | | 1,755 | | | | | | 56 | |
| | | | |
Encore Capital Group, Inc. (a) | | | | | 1,967 | | | | | | 77 | |
| | | | |
Enova International, Inc. (a) | | | | | 3,473 | | | | | | 86 | |
| | | | |
Essent Group Ltd. | | | | | 1,651 | | | | | | 71 | |
| | | | |
Evercore, Inc. ‘A’ | | | | | 16,401 | | | | | | 1,798 | |
| | | | |
FBL Financial Group, Inc. ‘A’ | | | | | 4,340 | | | | | | 228 | |
| | | | |
Federal Agricultural Mortgage Corp. ‘C’ | | | | | 587 | | | | | | 44 | |
| | | | |
Federated Investors, Inc. ‘B’ | | | | | 36,250 | | | | | | 1,047 | |
| | | | |
First Bancorp | | | | | 1,449 | | | | | | 49 | |
| | | | |
First Busey Corp. | | | | | 2,859 | | | | | | 62 | |
| | | | |
First Commonwealth Financial Corp. | | | | | 5,644 | | | | | | 62 | |
| | | | |
First Financial Bancorp | | | | | 2,408 | | | | | | 42 | |
| | | | |
First Financial Bankshares, Inc. | | | | | 2,945 | | | | | | 107 | |
| | | | |
First Hawaiian, Inc. | | | | | 41,456 | | | | | | 978 | |
| | | | |
First Interstate BancSystem, Inc. ‘A’ | | | | | 4,337 | | | | | | 177 | |
| | | | |
First Merchants Corp. | | | | | 1,745 | | | | | | 65 | |
| | | | |
First Midwest Bancorp, Inc. | | | | | 12,534 | | | | | | 200 | |
| | | | |
FirstCash, Inc. | | | | | 6,411 | | | | | | 449 | |
| | | | |
Flagstar Bancorp, Inc. | | | | | 10,054 | | | | | | 410 | |
| | | | |
Flushing Financial Corp. | | | | | 3,277 | | | | | | 55 | |
| | | | |
FNB Corp. | | | | | 96,125 | | | | | | 913 | |
| | | | |
Fulton Financial Corp. | | | | | 81,223 | | | | | | 1,033 | |
| | | | |
Glacier Bancorp, Inc. | | | | | 5,827 | | | | | | 268 | |
| | | | |
Great Southern Bancorp, Inc. | | | | | 1,564 | | | | | | 76 | |
| | | | |
Great Western Bancorp, Inc. | | | | | 20,345 | | | | | | 425 | |
| | | | |
Green Dot Corp. ‘A’ (a) | | | | | 2,001 | | | | | | 112 | |
| | | | |
Hancock Holding Co. | | | | | 21,278 | | | | | | 724 | |
| | | | |
Hanmi Financial Corp. | | | | | 3,954 | | | | | | 45 | |
| | | | |
Heartland Financial USA, Inc. | | | | | 1,693 | | | | | | 68 | |
| | | | |
Hercules Capital, Inc. | | | | | 6,289 | | | | | | 91 | |
| | | | |
Heritage Financial Corp. | | | | | 2,148 | | | | | | 50 | |
| | | | |
Hilltop Holdings, Inc. | | | | | 44,462 | | | | | | 1,223 | |
| | | | |
Home BancShares, Inc. | | | | | 15,472 | | | | | | 301 | |
| | | | |
HomeStreet, Inc. | | | | | 2,826 | | | | | | 95 | |
| | | | |
Hope Bancorp, Inc. | | | | | 37,806 | | | | | | 412 | |
| | | | | | | | | | | | |
| | | | | SHARES | | | | | MARKET
VALUE
(000S) | |
| | | | |
Horace Mann Educators Corp. | | | | | 2,842 | | | $ | | | 119 | |
| | | | |
Houlihan Lokey, Inc. | | | | | 5,351 | | | | | | 360 | |
| | | | |
Independent Bank Corp. | | | | | 1,010 | | | | | | 74 | |
| | | | |
International Bancshares Corp. | | | | | 16,671 | | | | | | 624 | |
| | | | |
Investors Bancorp, Inc. | | | | | 89,969 | | | | | | 950 | |
| | | | |
Lakeland Bancorp, Inc. | | | | | 4,771 | | | | | | 61 | |
| | | | |
Lakeland Financial Corp. | | | | | 786 | | | | | | 42 | |
| | | | |
MBIA, Inc. (a) | | | | | 35,107 | | | | | | 231 | |
| | | | |
Mercury General Corp. | | | | | 7,607 | | | | | | 397 | |
| | | | |
Meridian Bancorp, Inc. | | | | | 2,911 | | | | | | 43 | |
| | | | |
Meta Financial Group, Inc. | | | | | 1,178 | | | | | | 43 | |
| | | | |
Moelis & Co. ‘A’ | | | | | 6,364 | | | | | | 298 | |
| | | | |
National Bank Holdings Corp. ‘A’ | | | | | 1,774 | | | | | | 58 | |
| | | | |
National General Holdings Corp. | | | | | 6,263 | | | | | | 214 | |
| | | | |
National Western Life Group, Inc. ‘A’ | | | | | 212 | | | | | | 44 | |
| | | | |
NBT Bancorp, Inc. | | | | | 3,290 | | | | | | 106 | |
| | | | |
Nelnet, Inc. ‘A’ | | | | | 9,251 | | | | | | 659 | |
| | | | |
Northfield Bancorp, Inc. | | | | | 4,817 | | | | | | 59 | |
| | | | |
Northwest Bancshares, Inc. | | | | | 41,059 | | | | | | 523 | |
| | | | |
Old National Bancorp | | | | | 18,739 | | | | | | 310 | |
| | | | |
Pacific Premier Bancorp, Inc. | | | | | 2,340 | | | | | | 73 | |
| | | | |
Park National Corp. | | | | | 1,225 | | | | | | 129 | |
| | | | |
PennyMac Financial Services, Inc. | | | | | 6,125 | | | | | | 402 | |
| | | | |
Peoples Bancorp, Inc. | | | | | 1,861 | | | | | | 50 | |
| | | | |
Piper Jaffray Cos. | | | | | 1,470 | | | | | | 148 | |
| | | | |
PRA Group, Inc. (a) | | | | | 19,745 | | | | | | 783 | |
| | | | |
ProAssurance Corp. | | | | | 46,741 | | | | | | 832 | |
| | | | |
PROG Holdings, Inc. | | | | | 27,404 | | | | | | 1,476 | |
| | | | |
Provident Financial Services, Inc. | | | | | 5,340 | | | | | | 96 | |
| | | | |
Radian Group, Inc. | | | | | 37,372 | | | | | | 757 | |
| | | | |
Renasant Corp. | | | | | 3,055 | | | | | | 103 | |
| | | | |
RLI Corp. | | | | | 7,628 | | | | | | 794 | |
| | | | |
S&T Bancorp, Inc. | | | | | 1,709 | | | | | | 42 | |
| | | | |
Safety Insurance Group, Inc. | | | | | 897 | | | | | | 70 | |
| | | | |
Sandy Spring Bancorp, Inc. | | | | | 2,619 | | | | | | 84 | |
| | | | |
Seacoast Banking Corp. of Florida (a) | | | | | 2,266 | | | | | | 67 | |
| | | | |
Selective Insurance Group, Inc. | | | | | 7,917 | | | | | | 530 | |
| | | | |
Simmons First National Corp. ‘A’ | | | | | 3,094 | | | | | | 67 | |
| | | | |
South State Corp. | | | | | 6,495 | | | | | | 470 | |
| | | | |
Southside Bancshares, Inc. | | | | | 1,989 | | | | | | 62 | |
| | | | |
Sterling Bancorp | | | | | 7,441 | | | | | | 134 | |
| | | | |
Stewart Information Services Corp. | | | | | 34,075 | | | | | | 1,648 | |
| | | | |
Stock Yards Bancorp, Inc. | | | | | 972 | | | | | | 39 | |
| | | | |
TCF Financial Corp. | | | | | 7,551 | | | | | | 280 | |
| | | | |
Texas Capital Bancshares, Inc. (a) | | | | | 2,147 | | | | | | 128 | |
| | | | |
Tompkins Financial Corp. | | | | | 1,185 | | | | | | 84 | |
| | | | |
Towne Bank | | | | | 4,357 | | | | | | 102 | |
| | | | |
TrustCo Bank Corp. | | | | | 6,974 | | | | | | 47 | |
| | | | |
Trustmark Corp. | | | | | 24,336 | | | | | | 665 | |
| | | | |
UMB Financial Corp. | | | | | 9,642 | | | | | | 665 | |
| | | | |
Umpqua Holdings Corp. | | | | | 103,181 | | | | | | 1,562 | |
| | | | |
United Bankshares, Inc. | | | | | 23,838 | | | | | | 772 | |
| | | | |
United Community Banks, Inc. | | | | | 3,739 | | | | | | 106 | |
| | | | |
United Fire Group, Inc. | | | | | 3,503 | | | | | | 88 | |
| | | | |
Universal Insurance Holdings, Inc. | | | | | 3,281 | | | | | | 50 | |
| | | | |
Univest Financial Corp. | | | | | 2,052 | | | | | | 42 | |
| | | | |
Valley National Bancorp | | | | | 21,890 | | | | | | 213 | |
| | | | |
Virtus Investment Partners, Inc. | | | | | 320 | | | | | | 69 | |
| | | | |
Waddell & Reed Financial, Inc. ‘A’ | | | | | 417,531 | | | | | | 10,635 | |
| | | | |
Walker & Dunlop, Inc. | | | | | 1,779 | | | | | | 164 | |
| | | | |
Washington Federal, Inc. | | | | | 44,684 | | | | | | 1,150 | |
| | | | |
Washington Trust Bancorp, Inc. | | | | | 989 | | | | | | 44 | |
| | | | |
WesBanco, Inc. | | | | | 2,931 | | | | | | 88 | |
| | | | | | | | | | | | |
| See Accompanying Notes | | | SEMIANNUAL REPORT | | | | | | | DECEMBER 31, 2020 | | | 61 |
| | | | | | | | |
| Schedule of Investments | | PIMCO RAE US Small Fund | | (Cont.) | | | | |
| | | | | | | | | | | | |
| | | | | SHARES | | | | | MARKET
VALUE
(000S) | |
| | | | |
Westamerica Bancorporation | | | | | 1,335 | | | $ | | | 74 | |
| | | | |
White Mountains Insurance Group Ltd. | | | | | 1,979 | | | | | | 1,980 | |
| | | | |
Wintrust Financial Corp. | | | | | 10,731 | | | | | | 656 | |
| | | | |
World Acceptance Corp. (a) | | | | | 1,645 | | | | | | 168 | |
| | | | |
WSFS Financial Corp. | | | | | 1,978 | | | | | | 89 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 60,169 | |
| | | | | | | | | | | | |
| |
| HEALTH CARE 8.6% | |
| | | | |
Acadia Healthcare Co., Inc. (a) | | | | | 56,509 | | | | | | 2,840 | |
| | | | |
Acorda Therapeutics, Inc. (a)(c) | | | | | 30,919 | | | | | | 21 | |
| | | | |
Allscripts Healthcare Solutions, Inc. (a) | | | | | 93,925 | | | | | | 1,356 | |
| | | | |
Amedisys, Inc. (a) | | | | | 4,126 | | | | | | 1,210 | |
| | | | |
AMN Healthcare Services, Inc. (a) | | | | | 3,206 | | | | | | 219 | |
| | | | |
Amneal Pharmaceuticals, Inc. (a) | | | | | 10,285 | | | | | | 47 | |
| | | | |
AngioDynamics, Inc. (a) | | | | | 5,145 | | | | | | 79 | |
| | | | |
Avanos Medical, Inc. (a) | | | | | 5,076 | | | | | | 233 | |
| | | | |
Cantel Medical Corp. | | | | | 1,020 | | | | | | 80 | |
| | | | |
CONMED Corp. | | | | | 1,423 | | | | | | 159 | |
| | | | |
Covetrus, Inc. (a) | | | | | 145,533 | | | | | | 4,183 | |
| | | | |
Emergent BioSolutions, Inc. (a) | | | | | 1,828 | | | | | | 164 | |
| | | | |
Ensign Group, Inc. | | | | | 1,410 | | | | | | 103 | |
| | | | |
Haemonetics Corp. (a) | | | | | 2,423 | | | | | | 288 | |
| | | | |
Hanger, Inc. (a) | | | | | 6,970 | | | | | | 153 | |
| | | | |
HMS Holdings Corp. (a) | | | | | 1,268 | | | | | | 47 | |
| | | | |
Inovalon Holdings, Inc. ‘A’ (a) | | | | | 3,644 | | | | | | 66 | |
| | | | |
Integer Holdings Corp. (a) | | | | | 1,045 | | | | | | 85 | |
| | | | |
LHC Group, Inc. (a) | | | | | 519 | | | | | | 111 | |
| | | | |
Luminex Corp. | | | | | 2,739 | | | | | | 63 | |
| | | | |
Magellan Health, Inc. (a) | | | | | 25,761 | | | | | | 2,134 | |
| | | | |
MEDNAX, Inc. (a) | | | | | 156,002 | | | | | | 3,828 | |
| | | | |
Medpace Holdings, Inc. (a) | | | | | 1,030 | | | | | | 143 | |
| | | | |
Meridian Bioscience, Inc. (a) | | | | | 5,857 | | | | | | 110 | |
| | | | |
Merit Medical Systems, Inc. (a) | | | | | 2,195 | | | | | | 122 | |
| | | | |
Myriad Genetics, Inc. (a) | | | | | 185,146 | | | | | | 3,661 | |
| | | | |
National HealthCare Corp. | | | | | 6,440 | | | | | | 428 | |
| | | | |
Natus Medical, Inc. (a) | | | | | 2,406 | | | | | | 48 | |
| | | | |
Neogen Corp. (a) | | | | | 946 | | | | | | 75 | |
| | | | |
NextGen Healthcare, Inc. (a) | | | | | 4,762 | | | | | | 87 | |
| | | | |
NuVasive, Inc. (a) | | | | | 3,127 | | | | | | 176 | |
| | | | |
Omnicell, Inc. (a) | | | | | 689 | | | | | | 83 | |
| | | | |
OPKO Health, Inc. (a)(c) | | | | | 137,126 | | | | | | 542 | |
| | | | |
Orthofix Medical, Inc. (a) | | | | | 1,133 | | | | | | 49 | |
| | | | |
Patterson Cos., Inc. | | | | | 402,634 | | | | | | 11,930 | |
| | | | |
Prestige Consumer Healthcare, Inc. (a) | | | | | 7,039 | | | | | | 245 | |
| | | | |
RadNet, Inc. (a) | | | | | 3,231 | | | | | | 63 | |
| | | | |
Repligen Corp. (a) | | | | | 384 | | | | | | 74 | |
| | | | |
Select Medical Holdings Corp. (a) | | | | | 40,345 | | | | | | 1,116 | |
| | | | |
Syneos Health, Inc. (a) | | | | | 11,088 | | | | | | 755 | |
| | | | |
Tivity Health, Inc. (a) | | | | | 3,454 | | | | | | 68 | |
| | | | |
U.S. Physical Therapy, Inc. | | | | | 616 | | | | | | 74 | |
| | | | |
United Therapeutics Corp. (a) | | | | | 67,423 | | | | | | 10,234 | |
| | | | |
Varex Imaging Corp. (a) | | | | | 2,860 | | | | | | 48 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 47,600 | |
| | | | | | | | | | | | |
| |
| INDUSTRIALS 16.3% | |
| | | | |
AAON, Inc. | | | | | 996 | | | | | | 66 | |
| | | | |
AAR Corp. | | | | | 35,431 | | | | | | 1,283 | |
| | | | |
ABM Industries, Inc. | | | | | 12,559 | | | | | | 475 | |
| | | | |
ACCO Brands Corp. | | | | | 64,622 | | | | | | 546 | |
| | | | |
Advanced Drainage Systems, Inc. | | | | | 1,915 | | | | | | 160 | |
| | | | |
Aerojet Rocketdyne Holdings, Inc. (a) | | | | | 1,538 | | | | | | 81 | |
| | | | | | | | | | | | |
| | | | | SHARES | | | | | MARKET
VALUE
(000S) | |
| | | | |
Air Lease Corp. | | | | | 13,892 | | | $ | | | 617 | |
| | | | |
Air Transport Services Group, Inc. (a) | | | | | 3,645 | | | | | | 114 | |
| | | | |
Alamo Group, Inc. | | | | | 299 | | | | | | 41 | |
| | | | |
Albany International Corp. ‘A’ | | | | | 1,126 | | | | | | 83 | |
| | | | |
Allegiant Travel Co. | | | | | 7,204 | | | | | | 1,363 | |
| | | | |
Altra Industrial Motion Corp. | | | | | 2,655 | | | | | | 147 | |
| | | | |
Apogee Enterprises, Inc. | | | | | 9,043 | | | | | | 286 | |
| | | | |
Applied Industrial Technologies, Inc. | | | | | 8,688 | | | | | | 678 | |
| | | | |
ArcBest Corp. | | | | | 6,064 | | | | | | 259 | |
| | | | |
Arcosa, Inc. | | | | | 29,798 | | | | | | 1,637 | |
| | | | |
Argan, Inc. | | | | | 873 | | | | | | 39 | |
| | | | |
Armstrong World Industries, Inc. | | | | | 9,317 | | | | | | 693 | |
| | | | |
ASGN, Inc. (a) | | | | | 2,198 | | | | | | 184 | |
| | | | |
Astec Industries, Inc. | | | | | 2,094 | | | | | | 121 | |
| | | | |
Atkore International Group, Inc. (a) | | | | | 4,154 | | | | | | 171 | |
| | | | |
Atlas Air Worldwide Holdings, Inc. (a) | | | | | 30,417 | | | | | | 1,659 | |
| | | | |
AZZ, Inc. | | | | | 1,223 | | | | | | 58 | |
| | | | |
Barnes Group, Inc. | | | | | 12,506 | | | | | | 634 | |
| | | | |
Beacon Roofing Supply, Inc. (a) | | | | | 6,898 | | | | | | 277 | |
| | | | |
BMC Stock Holdings, Inc. (a) | | | | | 22,268 | | | | | | 1,195 | |
| | | | |
Brady Corp. ‘A’ | | | | | 13,347 | | | | | | 705 | |
| | | | |
BrightView Holdings, Inc. (a) | | | | | 4,942 | | | | | | 75 | |
| | | | |
Brink’s Co. | | | | | 1,768 | | | | | | 127 | |
| | | | |
Builders FirstSource, Inc. (a) | | | | | 49,332 | | | | | | 2,013 | |
| | | | |
Casella Waste Systems, Inc. ‘A’ (a) | | | | | 710 | | | | | | 44 | |
| | | | |
CBIZ, Inc. (a) | | | | | 1,639 | | | | | | 44 | |
| | | | |
CIRCOR International, Inc. (a) | | | | | 1,440 | | | | | | 55 | |
| | | | |
Clean Harbors, Inc. (a) | | | | | 15,031 | | | | | | 1,144 | |
| | | | |
Columbus McKinnon Corp. | | | | | 1,070 | | | | | | 41 | |
| | | | |
Comfort Systems USA, Inc. | | | | | 5,057 | | | | | | 266 | |
| | | | |
CoreLogic, Inc. | | | | | 36,041 | | | | | | 2,787 | |
| | | | |
Covanta Holding Corp. | | | | | 70,007 | | | | | | 919 | |
| | | | |
Cubic Corp. | | | | | 1,319 | | | | | | 82 | |
| | | | |
Deluxe Corp. | | | | | 37,492 | | | | | | 1,095 | |
| | | | |
Douglas Dynamics, Inc. | | | | | 1,021 | | | | | | 44 | |
| | | | |
Dycom Industries, Inc. (a) | | | | | 15,973 | | | | | | 1,206 | |
| | | | |
Echo Global Logistics, Inc. (a) | | | | | 2,628 | | | | | | 70 | |
| | | | |
EMCOR Group, Inc. | | | | | 14,535 | | | | | | 1,329 | |
| | | | |
Encore Wire Corp. | | | | | 2,762 | | | | | | 167 | |
| | | | |
Enerpac Tool Group Corp. | | | | | 28,684 | | | | | | 649 | |
| | | | |
EnerSys | | | | | 9,768 | | | | | | 811 | |
| | | | |
EnPro Industries, Inc. | | | | | 5,001 | | | | | | 378 | |
| | | | |
ESCO Technologies, Inc. | | | | | 891 | | | | | | 92 | |
| | | | |
Evoqua Water Technologies Corp. (a) | | | | | 3,235 | | | | | | 87 | |
| | | | |
Exponent, Inc. | | | | | 1,118 | | | | | | 101 | |
| | | | |
Federal Signal Corp. | | | | | 2,144 | | | | | | 71 | |
| | | | |
Forward Air Corp. | | | | | 3,619 | | | | | | 278 | |
| | | | |
Franklin Electric Co., Inc. | | | | | 6,323 | | | | | | 438 | |
| | | | |
FTI Consulting, Inc. (a) | | | | | 10,161 | | | | | | 1,135 | |
| | | | |
GATX Corp. | | | | | 25,504 | | | | | | 2,121 | |
| | | | |
Generac Holdings, Inc. (a) | | | | | 7,348 | | | | | | 1,671 | |
| | | | |
Gibraltar Industries, Inc. (a) | | | | | 1,464 | | | | | | 105 | |
| | | | |
GMS, Inc. (a) | | | | | 6,240 | | | | | | 190 | |
| | | | |
Granite Construction, Inc. | | | | | 6,248 | | | | | | 167 | |
| | | | |
Greenbrier Cos., Inc. | | | | | 28,374 | | | | | | 1,032 | |
| | | | |
Griffon Corp. | | | | | 9,833 | | | | | | 200 | |
| | | | |
H&E Equipment Services, Inc. | | | | | 3,220 | | | | | | 96 | |
| | | | |
Harsco Corp. (a) | | | | | 4,692 | | | | | | 84 | |
| | | | |
Hawaiian Holdings, Inc. | | | | | 39,807 | | | | | | 705 | |
| | | | |
Healthcare Services Group, Inc. | | | | | 7,838 | | | | | | 220 | |
| | | | |
Heidrick & Struggles International, Inc. | | | | | 2,252 | | | | | | 66 | |
| | | | |
Herc Holdings, Inc. (a) | | | | | 14,981 | | | | | | 995 | |
| | | | |
Herman Miller, Inc. | | | | | 20,027 | | | | | | 677 | |
| | | | | | | | | | | | |
| | | | | SHARES | | | | | MARKET
VALUE
(000S) | |
| | | | |
Hillenbrand, Inc. | | | | | 22,152 | | | $ | | | 882 | |
| | | | |
HNI Corp. | | | | | 19,203 | | | | | | 662 | |
| | | | |
Hub Group, Inc. ‘A’ (a) | | | | | 5,240 | | | | | | 299 | |
| | | | |
Huron Consulting Group, Inc. (a) | | | | | 1,522 | | | | | | 90 | |
| | | | |
Hyster-Yale Materials Handling, Inc. | | | | | 3,125 | | | | | | 186 | |
| | | | |
ICF International, Inc. | | | | | 1,464 | | | | | | 109 | |
| | | | |
Interface, Inc. | | | | | 7,695 | | | | | | 81 | |
| | | | |
JELD-WEN Holding, Inc. (a) | | | | | 4,930 | | | | | | 125 | |
| | | | |
John Bean Technologies Corp. | | | | | 664 | | | | | | 76 | |
| | | | |
Kaman Corp. | | | | | 7,765 | | | | | | 444 | |
| | | | |
KBR, Inc. | | | | | 24,974 | | | | | | 772 | |
| | | | |
Kelly Services, Inc. ‘A’ | | | | | 46,610 | | | | | | 959 | |
| | | | |
Kennametal, Inc. | | | | | 13,622 | | | | | | 494 | |
| | | | |
Kforce, Inc. | | | | | 2,353 | | | | | | 99 | |
| | | | |
Knoll, Inc. | | | | | 4,642 | | | | | | 68 | |
| | | | |
Korn Ferry | | | | | 10,017 | | | | | | 436 | |
| | | | |
Kratos Defense & Security Solutions, Inc. (a) | | | | | 1,898 | | | | | | 52 | |
| | | | |
Landstar System, Inc. | | | | | 7,082 | | | | | | 954 | |
| | | | |
Lindsay Corp. | | | | | 943 | | | | | | 121 | |
| | | | |
Masonite International Corp. (a) | | | | | 8,165 | | | | | | 803 | |
| | | | |
MasTec, Inc. (a) | | | | | 15,281 | | | | | | 1,042 | |
| | | | |
Matson, Inc. | | | | | 13,369 | | | | | | 762 | |
| | | | |
Matthews International Corp. ‘A’ | | | | | 9,117 | | | | | | 268 | |
| | | | |
McGrath RentCorp | | | | | 1,038 | | | | | | 70 | |
| | | | |
Mercury Systems, Inc. (a) | | | | | 816 | | | | | | 72 | |
| | | | |
Meritor, Inc. (a) | | | | | 19,600 | | | | | | 547 | |
| | | | |
Moog, Inc. ‘A’ | | | | | 15,729 | | | | | | 1,247 | |
| | | | |
MRC Global, Inc. (a) | | | | | 38,652 | | | | | | 256 | |
| | | | |
MSA Safety, Inc. | | | | | 3,988 | | | | | | 596 | |
| | | | |
Mueller Industries, Inc. | | | | | 27,972 | | | | | | 982 | |
| | | | |
Mueller Water Products, Inc. ‘A’ | | | | | 9,334 | | | | | | 116 | |
| | | | |
National Presto Industries, Inc. | | | | | 509 | | | | | | 45 | |
| | | | |
Navistar International Corp. (a) | | | | | 2,146 | | | | | | 94 | |
| | | | |
NOW, Inc. (a) | | | | | 27,476 | | | | | | 197 | |
| | | | |
Primoris Services Corp. | | | | | 12,539 | | | | | | 346 | |
| | | | |
Quad/Graphics, Inc. | | | | | 22,916 | | | | | | 88 | |
| | | | |
RBC Bearings, Inc. (a) | | | | | 421 | | | | | | 75 | |
| | | | |
Regal Beloit Corp. | | | | | 16,440 | | | | | | 2,019 | |
| | | | |
Resideo Technologies, Inc. (a) | | | | | 207,094 | | | | | | 4,403 | |
| | | | |
Rexnord Corp. | | | | | 35,615 | | | | | | 1,406 | |
| | | | |
Rush Enterprises, Inc. ‘A’ | | | | | 16,999 | | | | | | 704 | |
| | | | |
Saia, Inc. (a) | | | | | 4,112 | | | | | | 743 | |
| | | | |
Schneider National, Inc. ‘B’ | | | | | 25,239 | | | | | | 522 | |
| | | | |
SEACOR Holdings, Inc. (a) | | | | | 1,292 | | | | | | 54 | |
| | | | |
Simpson Manufacturing Co., Inc. | | | | | 8,314 | | | | | | 777 | |
| | | | |
SiteOne Landscape Supply, Inc. (a) | | | | | 1,416 | | | | | | 225 | |
| | | | |
SkyWest, Inc. | | | | | 17,286 | | | | | | 697 | |
| | | | |
SP Plus Corp. (a) | | | | | 1,363 | | | | | | 39 | |
| | | | |
Spirit Airlines, Inc. (a) | | | | | 21,009 | | | | | | 514 | |
| | | | |
SPX Corp. (a) | | | | | 1,225 | | | | | | 67 | |
| | | | |
SPX FLOW, Inc. (a) | | | | | 18,519 | | | | | | 1,073 | |
| | | | |
Standex International Corp. | | | | | 942 | | | | | | 73 | |
| | | | |
Steelcase, Inc. ‘A’ | | | | | 54,912 | | | | | | 744 | |
| | | | |
Stericycle, Inc. (a) | | | | | 14,563 | | | | | | 1,010 | |
| | | | |
Tennant Co. | | | | | 965 | | | | | | 68 | |
| | | | |
Terex Corp. | | | | | 88,940 | | | | | | 3,103 | |
| | | | |
Tetra Tech, Inc. | | | | | 10,357 | | | | | | 1,199 | |
| | | | |
Timken Co. | | | | | 28,357 | | | | | | 2,194 | |
| | | | |
Trex Co., Inc. (a) | | | | | 1,230 | | | | | | 103 | |
| | | | |
TriMas Corp. (a) | | | | | 2,242 | | | | | | 71 | |
| | | | |
TriNet Group, Inc. (a) | | | | | 833 | | | | | | 67 | |
| | | | |
Trinity Industries, Inc. | | | | | 64,575 | | | | | | 1,704 | |
| | | | |
Triumph Group, Inc. | | | | | 3,814 | | | | | | 48 | |
| | | | |
TrueBlue, Inc. (a) | | | | | 4,481 | | | | | | 84 | |
| | | | | | |
| 62 | | PIMCO EQUITY SERIES | | | See Accompanying Notes | |
| | | | | | | | |
| | | | | | December 31, 2020 | | (Unaudited) |
| | | | | | | | | | | | |
| | | | | SHARES | | | | | MARKET
VALUE
(000S) | |
| | | | |
Tutor Perini Corp. (a) | | | | | 43,575 | | | $ | | | 564 | |
| | | | |
UFP Industries, Inc. | | | | | 4,750 | | | | | | 264 | |
| | | | |
UniFirst Corp. | | | | | 2,795 | | | | | | 592 | |
| | | | |
Univar Solutions, Inc. (a) | | | | | 69,011 | | | | | | 1,312 | |
| | | | |
Valmont Industries, Inc. | | | | | 9,579 | | | | | | 1,676 | |
| | | | |
Viad Corp. | | | | | 1,799 | | | | | | 65 | |
| | | | |
Wabash National Corp. | | | | | 4,942 | | | | | | 85 | |
| | | | |
Watts Water Technologies, Inc. ‘A’ | | | | | 6,954 | | | | | | 846 | |
| | | | |
Welbilt, Inc. (a) | | | | | 11,062 | | | | | | 146 | |
| | | | |
Werner Enterprises, Inc. | | | | | 13,892 | | | | | | 545 | |
| | | | |
WESCO International, Inc. (a) | | | | | 95,278 | �� | | | | | 7,479 | |
| | | | |
WillScot Mobile Mini Holdings Corp. (a) | | | | | 31,225 | | | | | | 724 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 89,973 | |
| | | | | | | | | | | | |
| |
| INFORMATION TECHNOLOGY 6.5% | |
| | | | |
Acacia Communications, Inc. (a) | | | | | 871 | | | | | | 64 | |
| | | | |
ACI Worldwide, Inc. (a) | | | | | 6,877 | | | | | | 264 | |
| | | | |
ADTRAN, Inc. | | | | | 13,297 | | | | | | 196 | |
| | | | |
Advanced Energy Industries, Inc. (a) | | | | | 1,733 | | | | | | 168 | |
| | | | |
Ambarella, Inc. (a) | | | | | 1,067 | | | | | | 98 | |
| | | | |
Amkor Technology, Inc. | | | | | 75,610 | | | | | | 1,140 | |
| | | | |
Avaya Holdings Corp. (a) | | | | | 50,356 | | | | | | 964 | |
| | | | |
Badger Meter, Inc. | | | | | 926 | | | | | | 87 | |
| | | | |
Belden, Inc. | | | | | 15,584 | | | | | | 653 | |
| | | | |
Benchmark Electronics, Inc. | | | | | 49,192 | | | | | | 1,329 | |
| | | | |
Blackbaud, Inc. | | | | | 1,129 | | | | | | 65 | |
| | | | |
BM Technologies, Inc. | | | | | 582 | | | | | | 8 | |
| | | | |
Bottomline Technologies de, Inc. (a) | | | | | 972 | | | | | | 51 | |
| | | | |
Brooks Automation, Inc. | | | | | 1,941 | | | | | | 132 | |
| | | | |
Cirrus Logic, Inc. (a) | | | | | 26,979 | | | | | | 2,218 | |
| | | | |
CMC Materials, Inc. | | | | | 658 | | | | | | 100 | |
| | | | |
Coherent, Inc. (a) | | | | | 3,194 | | | | | | 479 | |
| | | | |
CommVault Systems, Inc. (a) | | | | | 3,071 | | | | | | 170 | |
| | | |
Comtech Telecommunications Corp. | | | 3,680 | | | | | | 76 | |
| | | | |
Conduent, Inc. (a) | | | | | 247,956 | | | | | | 1,190 | |
| | | | |
CSG Systems International, Inc. | | | | | 2,970 | | | | | | 134 | |
| | | | |
CTS Corp. | | | | | 1,973 | | | | | | 68 | |
| | | | |
Diebold Nixdorf, Inc. (a) | | | | | 21,892 | | | | | | 233 | |
| | | | |
Diodes, Inc. (a) | | | | | 9,123 | | | | | | 643 | |
| | | | |
Ebix, Inc. | | | | | 1,888 | | | | | | 72 | |
| | | | |
Endurance International Group Holdings, Inc. (a) | | | | | 13,414 | | | | | | 127 | |
| | | | |
Envestnet, Inc. (a) | | | | | 751 | | | | | | 62 | |
| | | | |
ePlus, Inc. (a) | | | | | 1,227 | | | | | | 108 | |
| | | | |
ExlService Holdings, Inc. (a) | | | | | 892 | | | | | | 76 | |
| | | | |
FARO Technologies, Inc. (a) | | | | | 1,121 | | | | | | 79 | |
| | | | |
FireEye, Inc. (a) | | | | | 5,385 | | | | | | 124 | |
| | | | |
Fitbit, Inc. ‘A’ (a) | | | | | 21,107 | | | | | | 143 | |
| | | | |
FormFactor, Inc. (a) | | | | | 3,011 | | | | | | 130 | |
| | | | |
II-VI, Inc. (a) | | | | | 7,849 | | | | | | 596 | |
| | | | |
Infinera Corp. (a) | | | | | 12,218 | | | | | | 128 | |
| | | | |
Inphi Corp. (a) | | | | | 865 | | | | | | 139 | |
| | | | |
Insight Enterprises, Inc. (a) | | | | | 26,161 | | | | | | 1,991 | |
| | | | |
InterDigital, Inc. | | | | | 15,479 | | | | | | 939 | |
| | | | |
Itron, Inc. (a) | | | | | 2,020 | | | | | | 194 | |
| | | | |
J2 Global, Inc. (a) | | | | | 12,616 | | | | | | 1,232 | |
| | | | |
Knowles Corp. (a) | | | | | 39,610 | | | | | | 730 | |
| | | | |
LiveRamp Holdings, Inc. (a) | | | | | 8,998 | | | | | | 659 | |
| | | | |
Lumentum Holdings, Inc. (a) | | | | | 1,289 | | | | | | 122 | |
| | | | |
MACOM Technology Solutions Holdings, Inc. (a) | | | | | 2,930 | | | | | | 161 | |
| | | | |
Manhattan Associates, Inc. (a) | | | | | 14,705 | | | | | | 1,547 | |
| | | | | | | | | | | | |
| | | | | SHARES | | | | | MARKET
VALUE
(000S) | |
| | | | |
ManTech International Corp. ‘A’ | | | | | 5,877 | | | $ | | | 523 | |
| | | | |
Methode Electronics, Inc. | | | | | 2,373 | | | | | | 91 | |
| | | | |
MicroStrategy, Inc. ‘A’ (a) | | | | | 741 | | | | | | 288 | |
| | | | |
MTS Systems Corp. | | | | | 1,447 | | | | | | 84 | |
| | | | |
NETGEAR, Inc. (a) | | | | | 3,424 | | | | | | 139 | |
| | | | |
NetScout Systems, Inc. (a) | | | | | 67,843 | | | | | | 1,860 | |
| | | | |
NIC, Inc. | | | | | 3,683 | | | | | | 95 | |
| | | | |
OSI Systems, Inc. (a) | | | | | 1,110 | | | | | | 103 | |
| | | | |
PC Connection, Inc. | | | | | 5,182 | | | | | | 245 | |
| | | | |
Perficient, Inc. (a) | | | | | 1,261 | | | | | | 60 | |
| | | | |
Perspecta, Inc. | | | | | 62,910 | | | | | | 1,515 | |
| | | | |
Photronics, Inc. (a) | | | | | 7,331 | | | | | | 82 | |
| | | | |
Plantronics, Inc. | | | | | 8,117 | | | | | | 219 | |
| | | | |
Plexus Corp. (a) | | | | | 8,160 | | | | | | 638 | |
| | | | |
Power Integrations, Inc. | | | | | 2,102 | | | | | | 172 | |
| | | | |
Progress Software Corp. | | | | | 4,590 | | | | | | 207 | |
| | | | |
Qualys, Inc. (a) | | | | | 616 | | | | | | 75 | |
| | | | |
Rambus, Inc. (a) | | | | | 9,972 | | | | | | 174 | |
| | | | |
Rogers Corp. (a) | | | | | 779 | | | | | | 121 | |
| | | | |
Sanmina Corp. (a) | | | | | 41,683 | | | | | | 1,329 | |
| | | | |
ScanSource, Inc. (a) | | | | | 13,373 | | | | | | 353 | |
| | | | |
Science Applications International Corp. | | | | | 2,946 | | | | | | 279 | |
| | | | |
Semtech Corp. (a) | | | | | 2,165 | | | | | | 156 | |
| | | | |
Silicon Laboratories, Inc. (a) | | | | | 2,212 | | | | | | 282 | |
| | | | |
Stratasys Ltd. (a) | | | | | 3,598 | | | | | | 75 | |
| | | | |
Sykes Enterprises, Inc. (a) | | | | | 18,176 | | | | | | 685 | |
| | | | |
Synaptics, Inc. (a) | | | | | 22,450 | | | | | | 2,164 | |
| | | | |
TTM Technologies, Inc. (a) | | | | | 60,083 | | | | | | 829 | |
| | | | |
Unisys Corp. (a) | | | | | 15,444 | | | | | | 304 | |
| | | | |
Verint Systems, Inc. (a) | | | | | 8,331 | | | | | | 560 | |
| | | | |
Viavi Solutions, Inc. (a) | | | | | 9,613 | | | | | | 144 | |
| | | | |
Virtusa Corp. (a) | | | | | 1,152 | | | | | | 59 | |
| | | | |
Vishay Intertechnology, Inc. | | | | | 56,651 | | | | | | 1,173 | |
| | | | |
Xperi Holding Corp. | | | | | 43,308 | | | | | | 905 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 35,877 | |
| | | | | | | | | | | | |
| |
| MATERIALS 6.2% | |
| | | | |
AdvanSix, Inc. (a) | | | | | 4,077 | | | | | | 81 | |
| | | | |
Allegheny Technologies, Inc. (a) | | | | | 3,990 | | | | | | 67 | |
| | | | |
Avient Corp. | | | | | 40,428 | | | | | | 1,628 | |
| | | | |
Balchem Corp. | | | | | 656 | | | | | | 76 | |
| | | | |
Boise Cascade Co. | | | | | 8,136 | | | | | | 389 | |
| | | | |
Cabot Corp. | | | | | 19,995 | | | | | | 897 | |
| | | | |
Carpenter Technology Corp. | | | | | 13,578 | | | | | | 395 | |
| | | | |
Chemours Co. | | | | | 140,876 | | | | | | 3,492 | |
| | | | |
Cleveland-Cliffs, Inc. | | | | | 51,142 | | | | | | 745 | |
| | | | |
Coeur Mining, Inc. (a) | | | | | 7,528 | | | | | | 78 | |
| | | | |
Commercial Metals Co. | | | | | 38,603 | | | | | | 793 | |
| | | | |
Compass Minerals International, Inc. | | | | | 13,280 | | | | | | 820 | |
| | | | |
Domtar Corp. | | | | | 195,034 | | | | | | 6,173 | |
| | | | |
Eagle Materials, Inc. | | | | | 8,513 | | | | | | 863 | |
| | | | |
Element Solutions, Inc. | | | | | 144,883 | | | | | | 2,569 | |
| | | | |
Ferro Corp. (a) | | | | | 4,287 | | | | | | 63 | |
| | | | |
GCP Applied Technologies, Inc. (a) | | | | | 4,350 | | | | | | 103 | |
| | | | |
Graphic Packaging Holding Co. | | | | | 65,996 | | | | | | 1,118 | |
| | | | |
Greif, Inc. ‘A’ | | | | | 20,850 | | | | | | 977 | |
| | | | |
HB Fuller Co. | | | | | 5,731 | | | | | | 297 | |
| | | | |
Hecla Mining Co. | | | | | 79,949 | | | | | | 518 | |
| | | | |
Innospec, Inc. | | | | | 4,414 | | | | | | 400 | |
| | | | |
Kaiser Aluminum Corp. | | | | | 6,124 | | | | | | 606 | |
| | | | |
Kraton Corp. (a) | | | | | 6,802 | | | | | | 189 | |
| | | | |
Louisiana-Pacific Corp. | | | | | 32,143 | | | | | | 1,195 | |
| | | | | | | | | | | | |
| | | | | SHARES | | | | | MARKET
VALUE
(000S) | |
| | | | |
Materion Corp. | | | | | 1,288 | | | $ | | | 82 | |
| | | | |
Minerals Technologies, Inc. | | | | | 7,530 | | | | | | 468 | |
| | | | |
Myers Industries, Inc. | | | | | 3,395 | | | | | | 71 | |
| | | | |
Neenah Paper, Inc. | | | | | 1,323 | | | | | | 73 | |
| | | | |
O-I Glass, Inc. | | | | | 36,101 | | | | | | 430 | |
| | | | |
Olin Corp. | | | | | 46,233 | | | | | | 1,135 | |
| | | | |
PQ Group Holdings, Inc. | | | | | 9,099 | | | | | | 130 | |
| | | | |
Quaker Chemical Corp. | | | | | 350 | | | | | | 89 | |
| | | | |
Rayonier Advanced Materials, Inc. (a) | | | | | 26,109 | | | | | | 170 | |
| | | | |
Schnitzer Steel Industries, Inc. ‘A’ | | | | | 2,975 | | | | | | 95 | |
| | | | |
Schweitzer-Mauduit International, Inc. | | | | | 13,365 | | | | | | 537 | |
| | | | |
Sensient Technologies Corp. | | | | | 14,854 | | | | | | 1,096 | |
| | | | |
Silgan Holdings, Inc. | | | | | 33,548 | | | | | | 1,244 | |
| | | | |
Stepan Co. | | | | | 4,763 | | | | | | 568 | |
| | | | |
Summit Materials, Inc. ‘A’ (a) | | | | | 8,714 | | | | | | 175 | |
| | | | |
SunCoke Energy, Inc. | | | | | 13,339 | | | | | | 58 | |
| | | | |
Trinseo S.A. | | | | | 19,720 | | | | | | 1,010 | |
| | | | |
United States Steel Corp. | | | | | 25,349 | | | | | | 425 | |
| | | | |
Valvoline, Inc. | | | | | 7,573 | | | | | | 175 | |
| | | | |
Verso Corp. | | | | | 3,640 | | | | | | 44 | |
| | | | |
Warrior Met Coal, Inc. | | | | | 35,900 | | | | | | 765 | |
| | | | |
Worthington Industries, Inc. | | | | | 17,330 | | | | | | 890 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 34,262 | |
| | | | | | | | | | | | |
| |
| REAL ESTATE 2.8% | |
| | | | |
Kennedy-Wilson Holdings, Inc. | | | | | 28,429 | | | | | | 509 | |
| | | | |
New York REIT, Inc. « | | | | | 4,082 | | | | | | 75 | |
| | | | |
Newmark Group, Inc. | | | | | 14,224 | | | | | | 104 | |
| | | | |
Realogy Holdings Corp. (a) | | | | | 1,079,862 | | | | | | 14,168 | |
| | | | |
St. Joe Co. | | | | | 4,120 | | | | | | 175 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 15,031 | |
| | | | | | | | | | | | |
| |
| UTILITIES 2.4% | |
| | | | |
ALLETE, Inc. | | | | | 16,752 | | | | | | 1,038 | |
| | | | |
American States Water Co. | | | | | 1,787 | | | | | | 142 | |
| | | | |
Avista Corp. | | | | | 40,336 | | | | | | 1,619 | |
| | | | |
Black Hills Corp. | | | | | 20,690 | | | | | | 1,271 | |
| | | | |
California Water Service Group | | | | | 1,733 | | | | | | 94 | |
| | | | |
Clearway Energy, Inc. ‘C’ | | | | | 32,751 | | | | | | 1,046 | |
| | | | |
Hawaiian Electric Industries, Inc. | | | | | 62,338 | | | | | | 2,206 | |
| | | | |
MGE Energy, Inc. | | | | | 1,941 | | | | | | 136 | |
| | | | |
New Jersey Resources Corp. | | | | | 14,187 | | | | | | 504 | |
| | | | |
Northwest Natural Holding Co. | | | | | 3,357 | | | | | | 154 | |
| | | | |
NorthWestern Corp. | | | | | 22,901 | | | | | | 1,335 | |
| | | | |
Ormat Technologies, Inc. | | | | | 1,096 | | | | | | 99 | |
| | | | |
Otter Tail Corp. | | | | | 13,202 | | | | | | 563 | |
| | | | |
PNM Resources, Inc. | | | | | 39,540 | | | | | | 1,919 | |
| | | | |
SJW Group | | | | | 770 | | | | | | 53 | |
| | | | |
South Jersey Industries, Inc. | | | | | 4,280 | | | | | | 92 | |
| | | | |
Spire, Inc. | | | | | 15,405 | | | | | | 987 | |
| | | | |
Unitil Corp. | | | | | 1,663 | | | | | | 74 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 13,332 | |
| | | | | | | | | | | | |
Total United States | | | | | | | | | | | 506,553 | |
| | | | | | | | | | | | |
Total Common Stocks (Cost $350,766) | | | 508,343 | |
| | | | |
| |
| REAL ESTATE INVESTMENT TRUSTS 7.4% | |
| |
| UNITED STATES 7.4% | |
| |
| FINANCIALS 0.7% | |
| | | | |
Apollo Commercial Real Estate Finance, Inc. | | | | | 6,687 | | | | | | 75 | |
| | | | | | | | | | | | |
| See Accompanying Notes | | | SEMIANNUAL REPORT | | | | | | | DECEMBER 31, 2020 | | | 63 |
| | | | | | | | |
| Schedule of Investments | | PIMCO RAE US Small Fund | | (Cont.) | | | | |
| | | | | | | | | | | | |
| | | | | SHARES | | | | | MARKET
VALUE
(000S) | |
| | | | |
Arbor Realty Trust, Inc. | | | | | 4,781 | | | $ | | | 68 | |
| | | | |
Blackstone Mortgage Trust, Inc. ‘A’ | | | | | 4,404 | | | | | | 121 | |
| | | | |
Capstead Mortgage Corp. | | | | | 23,355 | | | | | | 136 | |
| | | | |
Chimera Investment Corp. | | | | | 118,047 | | | | | | 1,210 | |
| | | | |
Colony Credit Real Estate, Inc. | | | | | 11,045 | | | | | | 83 | |
| | | | |
Granite Point Mortgage Trust, Inc. | | | | | 4,629 | | | | | | 46 | |
| | | | |
Invesco Mortgage Capital, Inc. (c) | | | | | 66,721 | | | | | | 225 | |
| | | | |
Ladder Capital Corp. | | | | | 26,599 | | | | | | 260 | |
| | | | |
MFA Financial, Inc. | | | | | 147,709 | | | | | | 575 | |
| | | | |
New York Mortgage Trust, Inc. | | | | | 18,434 | | | | | | 68 | |
| | | | |
PennyMac Mortgage Investment Trust | | | | | 46,002 | | | | | | 809 | |
| | | | |
Redwood Trust, Inc. | | | | | 18,753 | | | | | | 165 | |
| | | | |
TPG RE Finance Trust, Inc. | | | | | 5,657 | | | | | | 60 | |
| | | | |
Two Harbors Investment Corp. | | | | | 53,294 | | | | | | 339 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 4,240 | |
| | | | | | | | | | | | |
| |
| REAL ESTATE 6.7% | |
| | | | |
Acadia Realty Trust | | | | | 12,409 | | | | | | 176 | |
| | | | |
Agree Realty Corp. | | | | | 723 | | | | | | 48 | |
| | | | |
Alexander & Baldwin, Inc. | | | | | 38,427 | | | | | | 660 | |
| | | | |
American Assets Trust, Inc. | | | | | 2,019 | | | | | | 58 | |
| | | | |
American Finance Trust, Inc. | | | | | 15,223 | | | | | | 113 | |
| | | | |
Americold Realty Trust | | | | | 1,793 | | �� | | | | 67 | |
| | | | |
Apple Hospitality REIT, Inc. | | | | | 124,595 | | | | | | 1,609 | |
| | | | |
Armada Hoffler Properties, Inc. | | | | | 4,888 | | | | | | 55 | |
| | | | |
Brandywine Realty Trust | | | | | 68,979 | | | | | | 822 | |
| | | | |
CareTrust REIT, Inc. | | | | | 2,046 | | | | | | 45 | |
| | | | |
Centerspace | | | | | 998 | | | | | | 70 | |
| | | | |
Chatham Lodging Trust | | | | | 4,372 | | | | | | 47 | |
| | | | |
Columbia Property Trust, Inc. | | | | | 58,203 | | | | | | 835 | |
| | | | |
CorePoint Lodging, Inc. | | | | | 16,254 | | | | | | 112 | |
| | | | |
Corporate Office Properties Trust | | | | | 30,819 | | | | | | 804 | |
| | | | |
Cousins Properties, Inc. | | | | | 31,997 | | | | | | 1,072 | |
| | | | |
DiamondRock Hospitality Co. | | | | | 95,893 | | | | | | 791 | |
| | | | |
Diversified Healthcare Trust | | | | | 225,286 | | | | | | 928 | |
| | | | |
Easterly Government Properties, Inc. | | | | | 2,338 | | | | | | 53 | |
| | | | |
EastGroup Properties, Inc. | | | | | 1,079 | | | | | | 149 | |
| | | | |
Empire State Realty Trust, Inc. ‘A’ | | | | | 37,254 | | | | | | 347 | |
| | | | |
Equity Commonwealth | | | | | 25,556 | | | | | | 697 | |
| | | | |
First Industrial Realty Trust, Inc. | | | | | 3,622 | | | | | | 153 | |
| | | | | | | | | | | | |
| | | | | SHARES | | | | | MARKET
VALUE
(000S) | |
| | | | |
Franklin Street Properties Corp. | | | | | 19,604 | | | $ | | | 86 | |
| | | | |
GEO Group, Inc. | | | | | 77,032 | | | | | | 682 | |
| | | | |
Global Net Lease, Inc. | | | | | 5,021 | | | | | | 86 | |
| | | | |
Healthcare Realty Trust, Inc. | | | | | 29,369 | | | | | | 869 | |
| | | | |
Hersha Hospitality Trust | | | | | 11,395 | | | | | | 90 | |
| | | | |
Independence Realty Trust, Inc. | | | | | 3,574 | | | | | | 48 | |
| | | | |
Industrial Logistics Properties Trust | | | | | 5,573 | | | | | | 130 | |
| | | | |
Kite Realty Group Trust | | | | | 57,613 | | | | | | 862 | |
| | | | |
Lexington Realty Trust | | | | | 100,613 | | | | | | 1,068 | |
| | | | |
LTC Properties, Inc. | | | | | 1,604 | | | | | | 62 | |
| | | | |
Mack-Cali Realty Corp. | | | | | 34,612 | | | | | | 431 | |
| | | | |
Monmouth Real Estate Investment Corp. | | | | | 3,160 | | | | | | 55 | |
| | | | |
National Health Investors, Inc. | | | | | 1,909 | | | | | | 132 | |
| | | | |
National Storage Affiliates Trust | | | | | 2,324 | | | | | | 84 | |
| | | | |
Office Properties Income Trust | | | | | 3,605 | | | | | | 82 | |
| | | | |
Outfront Media, Inc. | | | | | 76,008 | | | | | | 1,487 | |
| | | | |
Paramount Group, Inc. | | | | | 102,950 | | | | | | 931 | |
| | | | |
Pebblebrook Hotel Trust | | | | | 8,629 | | | | | | 162 | |
| | | | |
Physicians Realty Trust | | | | | 34,488 | | | | | | 614 | |
| | | | |
Piedmont Office Realty Trust, Inc. ‘A’ | | | | | 85,151 | | | | | | 1,382 | |
| | | | |
PotlatchDeltic Corp. | | | | | 1,946 | | | | | | 97 | |
| | | | |
Preferred Apartment Communities, Inc. ‘A’ | | | | | 10,268 | | | | | | 76 | |
| | | | |
PS Business Parks, Inc. | | | | | 3,192 | | | | | | 424 | |
| | | | |
QTS Realty Trust, Inc. ‘A’ | | | | | 1,862 | | | | | | 115 | |
| | | | |
Rayonier, Inc. | | | | | 41,273 | | | | | | 1,213 | |
| | | | |
Retail Opportunity Investments Corp. | | | | | 26,145 | | | | | | 350 | |
| | | | |
Retail Properties of America, Inc. ‘A’ | | | | | 145,304 | | | | | | 1,244 | |
| | | | |
Rexford Industrial Realty, Inc. | | | | | 1,408 | | | | | | 69 | |
| | | | |
RLJ Lodging Trust | | | | | 66,737 | | | | | | 944 | |
| | | | |
RPT Realty | | | | | 10,995 | | | | | | 95 | |
| | | | |
Ryman Hospitality Properties, Inc. | | | | | 6,003 | | | | | | 407 | |
| | | | |
Sabra Health Care REIT, Inc. | | | | | 20,679 | | | | | | 359 | |
| | | | |
Seritage Growth Properties ‘A’ (a) | | | | | 2,247 | | | | | | 33 | |
| | | | |
SITE Centers Corp. | | | | | 111,905 | | | | | | 1,132 | |
| | | | |
Spirit Realty Capital, Inc. | | | | | 44,233 | | | | | | 1,777 | |
| | | | |
STAG Industrial, Inc. | | | | | 2,030 | | | | | | 64 | |
| | | | |
Summit Hotel Properties, Inc. | | | | | 9,718 | | | | | | 88 | |
| | | | |
Sunstone Hotel Investors, Inc. | | | | | 96,567 | | | | | | 1,094 | |
| | | | | | | | | | | | |
| | | | | SHARES | | | | | MARKET
VALUE
(000S) | |
| | | | |
Tanger Factory Outlet Centers, Inc. (c) | | | | | 57,820 | | | $ | | | 576 | |
| | | | |
Terreno Realty Corp. | | | | | 1,113 | | | | | | 65 | |
| | | | |
Uniti Group, Inc. | | | | | 405,411 | | | | | | 4,755 | |
| | | | |
Urban Edge Properties | | | | | 17,736 | | | | | | 229 | |
| | | | |
Urstadt Biddle Properties, Inc. ‘A’ | | | | | 2,941 | | | | | | 42 | |
| | | | |
Washington Prime Group, Inc. (c) | | | | | 17,449 | | | | | | 114 | |
| | | | |
Washington Real Estate Investment Trust | | | | | 20,070 | | | | | | 434 | |
| | | | |
Weingarten Realty Investors | | | | | 48,592 | | | | | | 1,053 | |
| | | | |
Xenia Hotels & Resorts, Inc. | | | | | 66,418 | | | | | | 1,010 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 36,913 | |
| | | | | | | | | | | | |
Total Real Estate Investment Trusts (Cost $31,663) | | | | | | | | | 41,153 | |
| | | | |
| |
| SHORT-TERM INSTRUMENTS 0.4% | |
| |
| REPURCHASE AGREEMENTS (e) 0.4% | |
| | | | | | | | | | | | |
| | | | | | | | | | | 2,376 | |
| | | | | | | | | | | | |
Total Short-Term Instruments (Cost $2,376) | | | 2,376 | |
| | | | |
| | | | |
| | | | | | | | | | | | |
| Total Investments in Securities (Cost $384,805) | | | 551,872 | |
| | | | |
| |
| INVESTMENTS IN AFFILIATES 2.8% | |
| |
| SHORT-TERM INSTRUMENTS 2.8% | |
| |
| MUTUAL FUNDS 2.8% | |
|
PIMCO Government Money Market Fund | |
0.150% (b)(c)(d) | | | | | 15,454,749 | | | | | | 15,455 | |
| | | | | | | | | | | | |
Total Short-Term Instruments (Cost $15,455) | | | 15,455 | |
| | | | | | | | | | | | |
| |
| | | | |
Total Investments in Affiliates (Cost $15,455) | | | 15,455 | |
| |
| | | | |
Total Investments 102.7% (Cost $400,260) | | | | | | $ | | | 567,327 | |
| |
| Other Assets and Liabilities, net (2.7)% | | | (15,117 | ) |
| | | | |
| Net Assets 100.0% | | | $ | | | 552,210 | |
| | | | | | | |
NOTES TO SCHEDULE OF INVESTMENTS:
| * | 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. |
| (b) | Institutional Class Shares of each Fund. |
| (c) | Securities with an aggregate market value of $15,136 were out on loan in exchange for $15,455 of cash collateral as of December 31, 2020. The collateral was invested in a cash collateral reinvestment vehicle as described in Note 5 in the Notes to Financial Statements. |
| (d) | Coupon represents a 7-Day Yield. |
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 | |
| FICC | | | 0.000 | % | | | 12/31/2020 | | | | 01/04/2021 | | | $ | 2,376 | | | U.S. Treasury Bills 0.000% due 12/30/2021 | | $ | (2,424 | ) | | $ | 2,376 | | | $ | 2,376 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total Repurchase Agreements | | | | | $ | (2,424 | ) | | $ | 2,376 | | | $ | 2,376 | |
| | | | | | | | | | | | | | | |
| | | | | | |
| 64 | | PIMCO EQUITY SERIES | | | See Accompanying Notes | |
| | | | | | | | |
| | | | | | December 31, 2020 | | (Unaudited) |
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, 2020:
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Counterparty | | Repurchase
Agreement
Proceeds
to be
Received | | | Payable for
Reverse
Repurchase
Agreements | | | Payable for
Sale-Buyback
Transactions | | | Securities
Out on Loan | | | Total
Borrowings and
Other Financing
Transactions | | | Collateral
Pledged/(Received) | | | Net Exposure(1) | |
Global/Master Repurchase Agreement | |
FICC | | $ | 2,376 | | | $ | 0 | | | $ | 0 | | | $ | 0 | | | $ | 2,376 | | | $ | (2,424 | ) | | $ | (48 | ) |
|
Master Securities Lending Agreement | |
BPG | | | 0 | | | | 0 | | | | 0 | | | | 9 | | | | 9 | | | | (10 | ) | | | (1 | ) |
BSN | | | 0 | | | | 0 | | | | 0 | | | | 1,162 | | | | 1,162 | | | | (1,188 | ) | | | (26 | ) |
GSC | | | 0 | | | | 0 | | | | 0 | | | | 10,505 | | | | 10,505 | | | | (10,721 | ) | | | (216 | ) |
MSC | | | 0 | | | | 0 | | | | 0 | | | | 2,635 | | | | 2,635 | | | | (2,693 | ) | | | (58 | ) |
SAL | | | 0 | | | | 0 | | | | 0 | | | | 825 | | | | 825 | | | | (843 | ) | | | (18 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total Borrowings and Other Financing Transactions | | $ | 2,376 | | | $ | 0 | | | $ | 0 | | | $ | 15,136 | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
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 | |
Securities Lending Transactions(2) | |
Common Stocks | | $ | 14,549 | | | $ | 0 | | | $ | 0 | | | $ | 0 | | | $ | 14,549 | |
Real Estate Investment Trusts | | | 906 | | | | 0 | | | | 0 | | | | 0 | | | | 906 | |
| | | | | | | | | | | | | | | | | | | | |
Total Borrowings | | $ | 15,455 | | | $ | 0 | | | $ | 0 | | | $ | 0 | | | $ | 15,455 | |
| | | | | | | | | | | | | | | | | | | | |
Payable for securities on loan - cash collateral | | | $ | 15,455 | |
| | | | | |
| (1) | 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. |
| (2) | Includes cash collateral as described in Note 5 in the Notes to Financial Statements. |
FAIR VALUE MEASUREMENTS
The following is a summary of the fair valuations according to the inputs used as of December 31, 2020 in valuing the Fund’s assets and liabilities:
| | | | | | | | | | | | | | | | |
| Category and Subcategory | | Level 1 | | | Level 2 | | | Level 3 | | | Fair
Value at
12/31/2020 | |
Investments in Securities, at Value | | | | | | | | | | | | | | | | |
Common Stocks | | | | | | | | | | | | | | | | |
Luxembourg | | | | | | | | | | | | | | | | |
Materials | | $ | 130 | | | $ | 0 | | | $ | 0 | | | $ | 130 | |
United Kingdom | | | | | | | | | | | | | | | | |
Consumer Staples | | | 226 | | | | 0 | | | | 0 | | | | 226 | |
Financials | | | 1,281 | | | | 0 | | | | 0 | | | | 1,281 | |
Information Technology | | | 74 | | | | 0 | | | | 0 | | | | 74 | |
Materials | | | 79 | | | | 0 | | | | 0 | | | | 79 | |
United States | | | | | | | | | | | | | | | | |
Communication Services | | | 10,988 | | | | 47 | | | | 0 | | | | 11,035 | |
Consumer Discretionary | | | 97,107 | | | | 0 | | | | 0 | | | | 97,107 | |
Consumer Staples | | | 48,699 | | | | 0 | | | | 0 | | | | 48,699 | |
Energy | | | 53,468 | | | | 0 | | | | 0 | | | | 53,468 | |
Financials | | | 60,169 | | | | 0 | | | | 0 | | | | 60,169 | |
Health Care | | | 47,600 | | | | 0 | | | | 0 | | | | 47,600 | |
Industrials | | | 89,973 | | | | 0 | | | | 0 | | | | 89,973 | |
Information Technology | | | 35,877 | | | | 0 | | | | 0 | | | | 35,877 | |
| | | | | | | | | | | | | | | | |
| Category and Subcategory | | Level 1 | | | Level 2 | | | Level 3 | | | Fair
Value at
12/31/2020 | |
Materials | | $ | 34,262 | | | $ | 0 | | | $ | 0 | | | $ | 34,262 | |
Real Estate | | | 14,956 | | | | 0 | | | | 75 | | | | 15,031 | |
Utilities | | | 13,332 | | | | 0 | | | | 0 | | | | 13,332 | |
Real Estate Investment Trusts | | | | | | | | | | | | | | | | |
United States | | | | | | | | | | | | | | | | |
Financials | | | 4,240 | | | | 0 | | | | 0 | | | | 4,240 | |
Real Estate | | | 36,913 | | | | 0 | | | | 0 | | | | 36,913 | |
Short-Term Instruments | |
Repurchase Agreements | | | 0 | | | | 2,376 | | | | 0 | | | | 2,376 | |
| | | | | | | | | | | | | | | | |
| | $ | 549,374 | | | $ | 2,423 | | | $ | 75 | | | $ | 551,872 | |
| | | | | | | | | | | | | | | | |
|
Investments in Affiliates, at Value | |
Short-Term Instruments | |
Mutual Funds | | | 15,455 | | | | 0 | | | | 0 | | | | 15,455 | |
| | | | | | | | | | | | | | | | |
| | | | |
Total Investments | | $ | 564,829 | | | $ | 2,423 | | | $ | 75 | | | $ | 567,327 | |
| | | | | | | | | | | | | | | | |
There were no significant transfers into or out of Level 3 during the period ended December 31, 2020.
| | | | | | | | | | | | |
| See Accompanying Notes | | | SEMIANNUAL REPORT | | | | | | | DECEMBER 31, 2020 | | | 65 |
| | | | | | |
| Notes to Financial Statements | | | | | | |
1. ORGANIZATION
PIMCO Equity Series (the “Trust”) was established as a Delaware statutory trust on March 30, 2010. 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, I-2 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. 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 Global Fund may invest substantially all of its assets in Institutional Class shares of the PIMCO RAE US Fund, PIMCO RAE International Fund (“International Fund”) and PIMCO RAE Emerging Markets Fund (“Emerging Markets Fund”) (collectively, “Underlying Funds”), and equity securities that are eligible investments for the Underlying Funds. The PIMCO RAE 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 Global Fund and PIMCO RAE Global ex-US Fund may invest in other affiliated funds and unaffiliated funds, which may or may not be registered under the Act (together with the Underlying Funds, “Acquired Funds”).
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 functional and reporting currency for the Funds is the U.S. dollar. 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) Foreign Currency Translation 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 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 exchange gains (losses) arising from changes in
| | | | | | |
| | | | December 31, 2020 | | (Unaudited) |
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) Multi-Class 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 Emerging Markets Fund | | | | | | | Annually | | | | Annually | |
| | | |
PIMCO RAE Global Fund | | | | | | | Annually | | | | Annually | |
| | | |
PIMCO RAE Global ex-US Fund | | | | | | | Annually | | | | Annually | |
| | | |
PIMCO RAE International Fund | | | | | | | Annually | | | | Annually | |
| | | |
PIMCO RAE US Fund | | | | | | | Annually | | | | Annually | |
| | | |
PIMCO RAE US Small Fund | | | | | | | Annually | | | | Annually | |
In addition, each Fund distributes any net capital gains it earns from the sale of portfolio securities to shareholders no less frequently than annually. Net short-term capital gains may be paid more frequently.
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.
Separately, if a Fund determines that a portion of a distribution may be comprised of amounts from capital gains, paid in capital, or other capital sources in accordance with its policies, accounting records, and
accounting practices, the Fund will notify shareholders of the estimated composition of such distribution through a Section 19 Notice. For these purposes, a Fund determines 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 determined 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 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 provided to shareholders when such information is available.
Distributions classified as a tax basis return of capital at a Fund’s fiscal year end, if any, are reflected on the Statements of Changes in Net Assets and have been recorded to paid in capital on the Statements of Assets and Liabilities. In addition, other amounts have been reclassified between distributable earnings (accumulated loss) and paid in capital on the Statements of Assets and Liabilities to more appropriately conform U.S. GAAP to tax characterizations of distributions.
(e) New Accounting Pronouncements and Regulatory Updates In March 2020, the Financial Accounting Standards Board issued an Accounting Standards Update (“ASU”), ASU 2020-04, which provides optional guidance to ease the potential accounting burden associated with transitioning away from the London Interbank Offered Rate and other reference rates that are expected to be discontinued. The ASU is effective immediately upon release of the update on March 12, 2020 through December 31, 2022. At this time, management is evaluating implications of these changes on the financial statements.
In October 2020, the U.S. Securities and Exchange Commission (“SEC”) adopted a rule related to the use of derivatives, short sales, reverse repurchase agreements and certain other transactions by registered investment companies that rescinds and withdraws the
| | | | | | | | | | | | |
| | | | SEMIANNUAL REPORT | | | | | | | DECEMBER 31, 2020 | | | 67 |
| | | | | | |
| Notes to Financial Statements | | (Cont.) | | | | |
guidance of the SEC and its staff regarding asset segregation and cover transactions. Subject to certain exceptions, the rule requires funds to trade derivatives and other transactions that create future payment or delivery obligations (except reverse repurchase agreements and similar financing transactions) subject to a value-at-risk leverage limit, certain derivatives risk management program and reporting requirements. The rule went into effect on February 19, 2021 and funds will have an eighteen-month transition period to comply with the rule and related reporting requirements. At this time, management is evaluating the implications of these changes on the financial statements.
In October 2020, the SEC adopted a rule regarding the ability of a fund to invest in other funds. The rule allows a fund to acquire shares of another fund in excess of certain limitations currently imposed by the Act without obtaining individual exemptive relief from the SEC, subject to certain conditions. The rule also included the rescission of certain exemptive relief from the SEC and guidance from the SEC staff for funds to invest in other funds. The effective date for the rule was January 19, 2021. At this time, management is evaluating the implications of these changes on the financial statements.
In December 2020, the SEC adopted a rule addressing fair valuation of fund investments. The new rule sets forth requirements for good faith determinations of fair value as well as for the performance of fair value determinations, including related oversight and reporting obligations. The new rule also defines “readily available market quotations” for purposes of the definition of “value” under the Act, and the SEC noted that this definition would apply in all contexts under the Act. The effective date for the rule is March 8, 2021. The SEC adopted an eighteen-month transition period beginning from the effective date for both the new rule and the associated new recordkeeping requirements. At this time, management is evaluating the implications of these changes on the financial statements.
3. INVESTMENT VALUATION AND FAIR VALUE MEASUREMENTS
(a) Investment Valuation Policies The price of a Fund’s shares is based on the Fund’s NAV. The NAV of a Fund, 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 (normally 4:00 p.m., Eastern time) (“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. If regular trading on the NYSE closes earlier than scheduled, each Fund reserves the right to either (i) calculate its NAV as of the earlier closing time or (ii) calculate its NAV as of the normally scheduled close of regular trading on the NYSE for that day. Each Fund generally does not calculate its NAV on days during which the NYSE is closed. However, if the NYSE is closed on a day it would normally be open for business, each Fund reserves the right to calculate its NAV as of the normally scheduled close of regular trading on the NYSE for that day or such other time that the Fund may determine.
For purposes of calculating NAV, portfolio securities and other assets for which market quotes are readily available are valued at market value. Market value is generally determined on the basis of official closing prices or the last reported sales prices, or if no sales are reported, based on quotes obtained from established market makers or prices (including evaluated prices) supplied by the Funds’ approved pricing services, quotation reporting systems and other third-party sources (together, “Pricing Services”). The Funds will normally use pricing data for domestic equity securities received shortly after the NYSE Close and do not normally take into account trading, clearances or settlements that take place after the NYSE Close. 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
| | | | | | |
| | | | December 31, 2020 | | (Unaudited) |
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 are 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 are 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 Board. 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.
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| | | | SEMIANNUAL REPORT | | | | | | | DECEMBER 31, 2020 | | | 69 |
| | | | | | |
| Notes to Financial Statements | | (Cont.) | | | | |
(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 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.
| | | | | | |
| | | | December 31, 2020 | | (Unaudited) |
4. SECURITIES AND OTHER INVESTMENTS
(a) Investments in Affiliates
Each Fund eligible to participate in securities lending may invest the cash collateral received for securities out on loan in the PIMCO Government Money Market Fund under the Securities Lending Agreement. All or a portion of Dividend Income as shown in the table below represents the income earned on the cash collateral invested in PIMCO Government Money Market Fund and is included on the Statements of Operations as a component of Securities Lending Income. PIMCO Government Money Market Fund is considered to be affiliated with the Funds. The table below shows the Funds’ transactions in and earnings from investments in the affiliated Fund for the period ended December 31, 2020 (amounts in thousands†):
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Investments in PIMCO Government Money Market Fund | | | | | | | | | | | | | | | | |
| Fund Name | | | | | Market Value
06/30/2020 | | | Purchases
at Cost | | | Proceeds
from Sales | | | Net
Realized
Gain (Loss) | | | Change in
Unrealized
Appreciation
(Depreciation) | | | Market Value
12/31/2020 | | | Dividend
Income(1) | | | Realized Net
Capital Gain
Distributions(1) | |
| | | | | | | | | |
PIMCO RAE Emerging Markets Fund | | | | | | $ | 41,651 | | | $ | 100,686 | | | $ | (95,920 | ) | | $ | 0 | | | $ | 0 | | | $ | 46,417 | | | $ | 2 | | | $ | 0 | |
| | | | | | | | | |
PIMCO RAE International Fund | | | | | | | 43,067 | | | | 176,604 | | | | (173,744 | ) | | | 0 | | | | 0 | | | | 45,927 | | | | 1 | | | | 0 | |
| | | | | | | | | |
PIMCO RAE US Fund | | | | | | | 10,843 | | | | 42,684 | | | | (39,257 | ) | | | 0 | | | | 0 | | | | 14,270 | | | | 0 | | | | 0 | |
| | | | | | | | | |
PIMCO RAE US Small Fund | | | | | | | 9,805 | | | | 62,455 | | | | (56,805 | ) | | | 0 | | | | 0 | | | | 15,455 | | | | 0 | | | | 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, unless otherwise advise on IRS Form 1099-DIV. See Note 2, Distributions to Shareholders, in the Notes to Financial Statements for more information. |
The PIMCO RAE Global Fund may invest substantially all or a significant portion of its assets in Acquired Funds and equity securities that are eligible investments for the Underlying Funds. The PIMCO RAE Global ex-US Fund may invest substantially all of its assets in Acquired Funds (except the PIMCO RAE 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 Global Fund and PIMCO RAE 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. A complete schedule of portfolio holdings for each affiliate fund is filed with the SEC for the first and third quarters of each fiscal year on Form N-PORT and is available at the SEC’s website at www.sec.gov. A copy of each Acquired Fund’s shareholder report is also available at the SEC’s website at www.sec.gov, and a copy of each affiliate fund’s shareholder report is available on the Funds’ website at www.pimco.com, or upon request, as applicable. The tables below show the Funds’ transactions in and earnings from investments in the affiliated Funds for the period ended December 31, 2020 (amounts in thousands†):
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| PIMCO RAE Global Fund | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Underlying PIMCO Funds | | | | | Market Value
06/30/2020 | | | Purchases
at Cost | | | Proceeds
from Sales | | | Net
Realized
Gain (Loss) | | | Change in
Unrealized
Appreciation
(Depreciation) | | | Market Value
12/31/2020 | | | Dividend
Income(1) | | | Realized
Net Capital
Gain Distributions(1) | |
| | | | | | | | | |
PIMCO RAE Emerging Markets Fund | | | | | | $ | 36,058 | | | $ | 3,262 | | | $ | (6,335 | ) | | $ | 101 | | | $ | 9,611 | | | $ | 42,697 | | | $ | 710 | | | $ | 0 | |
| | | | | | | | | |
PIMCO RAE International Fund | | | | | | | 116,809 | | | | 6,856 | | | | (20,978 | ) | | | 621 | | | | 25,448 | | | | 128,756 | | | | 2,929 | | | | 0 | |
| | | | | | | | | |
PIMCO RAE US Fund | | | | | | | 124,075 | | | | 6,587 | | | | (23,101 | ) | | | 2,226 | | | | 22,040 | | | | 131,827 | | | | 3,140 | | | | 1,144 | |
| | | | | | | | | |
Totals | | | | | | $ | 276,942 | | | $ | 16,705 | | | $ | (50,414 | ) | | $ | 2,948 | | | $ | 57,099 | | | $ | 303,280 | | | $ | 6,779 | | | $ | 1,144 | |
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| | | | SEMIANNUAL REPORT | | | | | | | DECEMBER 31, 2020 | | | 71 |
| | | | | | |
| Notes to Financial Statements | | (Cont.) | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| PIMCO RAE Global ex-US Fund | | | | | | | | | | | | | | | | | | | | | | |
| Underlying PIMCO Funds | | | | | Market Value
06/30/2020 | | | Purchases
at Cost | | | Proceeds
from Sales | | | Net
Realized
Gain (Loss) | | | Change in
Unrealized
Appreciation
(Depreciation) | | | Market Value
12/31/2020 | | | Dividend
Income(1) | | | Realized
Net Capital
Gain Distributions(1) | |
| | | | | | | | | |
PIMCO RAE Emerging Markets Fund | | | | | | $ | 15,231 | | | $ | 1,322 | | | $ | (670 | ) | | $ | (104 | ) | | $ | 4,320 | | | $ | 20,099 | | | $ | 329 | | | $ | 0 | |
| | | | | | | | | |
PIMCO RAE International Fund | | | | | | | 49,234 | | | | 2,651 | | | | (2,494 | ) | | | (216 | ) | | | 11,420 | | | | 60,595 | | | | 1,350 | | | | 0 | |
| | | | | | | | | |
Totals | | | | | | $ | 64,465 | | | $ | 3,973 | | | $ | (3,164 | ) | | $ | (320 | ) | | $ | 15,740 | | | $ | 80,694 | | | $ | 1,679 | | | $ | 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 (and where applicable, certain Acquired Funds and Underlying Funds) may utilize the investments and strategies described below to the extent permitted by each Fund’s respective investment policies.
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, 2020, as applicable, are disclosed in the Notes to Schedules of Investments.
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.
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. BORROWINGS AND OTHER FINANCING TRANSACTIONS
The Funds (and where applicable, certain Acquired Funds and Underlying 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
| | | | | | |
| | | | December 31, 2020 | | (Unaudited) |
maturity repurchase agreement, there is no pre-determined repurchase date and the agreement can be terminated by the Fund or counterparty 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) Securities Lending The Funds listed below may seek to earn additional income by lending their securities to certain qualified broker-dealers and institutions on a short-term or long-term basis via a lending agent.
|
| Fund Name |
|
PIMCO RAE Emerging Markets Fund |
|
PIMCO RAE Global ex-US Fund |
|
PIMCO RAE International Fund |
|
PIMCO RAE US Fund |
|
PIMCO RAE US Small Fund |
Securities on loan are required to be secured by cash collateral at least equal to 102% of the domestic, or 105% of the foreign security’s market value. If the market value of the collateral at the close of trading on a business day is less than 100% of the market value of the loaned securities at the close of trading on that day, the borrower shall be required to deliver, by the close of business on the following business day, an additional amount of collateral, so that the total amount of posted collateral is equal to at least 100% of the market value of all the loaned securities as of such preceding day. The Funds will then invest the cash collateral received in the PIMCO Government Money Market Fund and record a liability for the return of the collateral during the period the securities are on loan. Each Fund is subject to a lending limit of 33.33% of total assets (including the value of collateral).
The loans are subject to termination at the option of the borrower or the Fund. Upon termination of the loan, the borrower will return to the lender securities identical to the loaned securities. Should the borrower of the securities fail to return loaned securities, the Fund has the right to repurchase the securities using the collateral in the open market.
The borrower pays fees at the Funds’ direction to the lending agent. The lending agent may retain a portion of the fees and interest earned on the cash collateral invested as compensation for its services.
Investments made with the cash collateral are disclosed on the Schedules of Investments, if applicable. The lending fees and the Funds’ portion of the interest income earned on cash collateral are included on the Statements of Operations as securities lending income, if applicable.
(c) Interfund Lending In accordance with an exemptive order (the “Order”) from the SEC, the Funds of the Trust may participate in a joint lending and borrowing facility for temporary purposes (the “Interfund Lending Program”), subject to compliance with the terms and conditions of the Order, and to the extent permitted by each Funds’ investment policies and restrictions. The Funds are currently permitted to borrow under the Interfund Lending Program. A lending fund may lend in aggregate up to 15% of its current net assets at the time of the interfund loan, but may not lend more than 5% of its net assets to any one borrowing fund through the Interfund Lending Program. A borrowing fund may not borrow through the Interfund Lending Program or from any other source if its total outstanding borrowings immediately after the borrowing would be more than 33 1/3% of its total assets (or any lower threshold provided for by the funds’ investment restrictions). If a borrowing funds’ total outstanding borrowings exceed 10% of its total assets, each of its outstanding interfund loans will be subject to collateralization of at least 102% of the outstanding principal value of the loan. All interfund loans are for temporary or emergency purposes and the interfund loan rate to be charged will be the average of the highest current overnight repurchase agreement rate available to a lending fund and the bank loan rate, as calculated according to a formula established by the Board.
During the period ended December 31, 2020, the Funds did not participate in the Interfund Lending Program.
6. FINANCIAL DERIVATIVE INSTRUMENTS
The Funds (and where applicable, certain Acquired Funds and Underlying 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
| | | | | | | | | | | | |
| | | | SEMIANNUAL REPORT | | | | | | | DECEMBER 31, 2020 | | | 73 |
| | | | | | |
| Notes to Financial Statements | | (Cont.) | | | | |
the period, as disclosed in the Notes to Schedules of Investments, serve as indicators of the volume of financial derivative activity for the Funds.
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.
7. PRINCIPAL AND OTHER RISKS
(a) 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
RAE Emerging
Markets
Fund | | PIMCO
RAE Global
Fund | | PIMCO
RAE Global
ex-US
Fund | | PIMCO
RAE
International
Fund | | PIMCO
RAE US
Fund | | PIMCO
RAE US Small
Fund |
| | | | | | | |
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 | | — | | — |
| | | | | | | |
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 |
| | | | | | | |
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.
Small Fund Risk is the risk that a smaller Fund may not achieve investment or trading efficiencies. Additionally, a smaller Fund may be more adversely affected by large purchases or redemptions of Fund shares.
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.
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
| | | | | | |
| | | | December 31, 2020 | | (Unaudited) |
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.
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, or is perceived (whether by market participants, rating agencies, pricing services or otherwise) as 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.
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 investments 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, including the use of quantitative models or methods, will not produce the desired results and that actual or potential conflicts of interest, legislative, regulatory, or tax restrictions, policies or developments may affect the investment techniques available to the Sub-Adviser and the individual portfolio manager in connection with managing a Fund and may cause the Sub-Adviser to restrict or prohibit participation in certain investments. 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 and 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
| | | | | | | | | | | | |
| | | | SEMIANNUAL REPORT | | | | | | | DECEMBER 31, 2020 | | | 75 |
| | | | | | |
| Notes to Financial Statements | | (Cont.) | | | | |
obligations to the other party, as many of the protections afforded to centrally-cleared derivative transactions might not be available for OTC derivatives. The primary credit risk on derivatives that are exchange-traded or traded through a central clearing counterparty resides with a Fund’s clearing broker, or the clearinghouse. 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 or may rely on inaccurate data inputs, may contain design flaws or faulty assumptions, and may rely on incomplete or inaccurate data, any of which may result in a decline in the value of an investment in a Fund.
(b) Other Risks
In general, a Fund may be subject to additional risks, including, but not limited to, risks related to government regulation and intervention in financial markets, operational risks, risks associated with financial, economic and global market disruptions, and cybersecurity risks. Please see a Fund’s prospectus and Statement of Additional Information for a more detailed description of the risks of investing in a Fund. Please see the Important Information section of this report for additional discussion of certain regulatory and market developments (such as the anticipated discontinuation of the London Interbank Offered Rate) that may impact a Fund’s performance.
Market Disruption Risk A Fund is subject to investment and operational risks associated with financial, economic and other global market developments and disruptions, including those arising from war, terrorism, market manipulation, government interventions, defaults and shutdowns, political changes or diplomatic developments, public health emergencies (such as the spread of infectious diseases, pandemics and epidemics) and natural/environmental disasters, which can all negatively impact the securities markets, interest rates, auctions, secondary trading, ratings, credit risk, inflation, deflation and other factors relating to the Fund’s investments or the Investment Manager’s operations and cause a Fund to lose value. These events can also impair the technology and other operational systems upon which a Fund’s service providers, including PIMCO as a Fund’s investment adviser, rely, and could otherwise disrupt a Fund’s service providers’ ability to fulfill their obligations to a Fund. For example, the recent spread of an infectious respiratory illness caused by a novel strain of coronavirus (known as COVID-19) has caused volatility, severe market dislocations and liquidity constraints in many markets, including markets for the securities a Fund
holds, and may adversely affect a Fund’s investments and operations. Please see the Important Information section for additional discussion of the COVID-19 pandemic.
Government Intervention in Financial Markets Federal, state, and other governments, their regulatory agencies, or self-regulatory organizations may take actions that affect the regulation of the instruments in which a Fund invests, or the issuers of such instruments, in ways that are unforeseeable. Legislation or regulation may also change the way in which a Fund itself is regulated. Such legislation or regulation could limit or preclude a Fund’s ability to achieve its investment objective. Furthermore, volatile financial markets can expose a Fund to greater market and liquidity risk and potential difficulty in valuing portfolio instruments held by the Fund. The value of a Fund’s holdings is also generally subject to the risk of future local, national, or global economic disturbances based on unknown weaknesses in the markets in which a Fund invests. In addition, it is not certain that the U.S. Government will intervene in response to a future market disturbance and the effect of any such future intervention cannot be predicted. It is difficult for issuers to prepare for the impact of future financial downturns, although companies can seek to identify and manage future uncertainties through risk management programs.
Regulatory Risk Financial entities, such as investment companies and investment advisers, are generally subject to extensive government regulation and intervention. Government regulation and/or intervention may change the way a Fund is regulated, affect the expenses incurred directly by a Fund and the value of its investments, and limit and/or preclude a Fund’s ability to achieve its investment objective. Government regulation may change frequently and may have significant adverse consequences. Moreover, government regulation may have unpredictable and unintended effects.
Operational Risk An investment in a Fund, like any fund, can involve operational risks arising from factors such as processing errors, human errors, inadequate or failed internal or external processes, failures in systems and technology, changes in personnel and errors caused by third-party service providers. The occurrence of any of these failures, errors or breaches could result in a loss of information, regulatory scrutiny, reputational damage or other events, any of which could have a material adverse effect on a Fund. While a Fund seeks to minimize such events through controls and oversight, there may still be failures that could cause losses to the Fund.
Cyber Security Risk As the use of technology has become more prevalent in the course of business, the Funds have become potentially more susceptible to operational and information security risks resulting from breaches in cyber security. A breach in cyber security refers to both intentional and unintentional cyber events that may, among other
| | | | | | |
| | | | December 31, 2020 | | (Unaudited) |
things, cause a Fund to lose proprietary information, suffer data corruption and/or destruction or lose operational capacity, result in the unauthorized release or other misuse of confidential information, or otherwise disrupt normal business operations. Cyber security failures or breaches may result in financial losses to a Fund and its shareholders. These failures or breaches may also result in disruptions to business operations, potentially resulting in financial losses; interference with a Fund’s ability to calculate its net asset value, process shareholder transactions or otherwise transact business with shareholders; impediments to trading; violations of applicable privacy and other laws; regulatory fines; penalties; reputational damage; reimbursement or other compensation costs; additional compliance and cyber security risk management costs and other adverse consequences. In addition, substantial costs may be incurred in order to prevent any cyber incidents in the future.
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 are intended to reduce the counterparty risk associated with relevant transactions by specifying credit protection mechanisms and providing standardization that is intended to improve 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 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 certain 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 certain 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. 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 generally 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
| | | | | | | | | | | | |
| | | | SEMIANNUAL REPORT | | | | | | | DECEMBER 31, 2020 | | | 77 |
| | | | | | |
| Notes to Financial Statements | | (Cont.) | | | | |
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. 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 or as required by regulation. Similarly, if required by regulation, the Funds may be required to post additional collateral beyond coverage of daily exposure. These amounts, if any, may (or if required by law, will) be segregated with a third-party custodian. To the extend the Funds are required by regulation to post additional collateral beyond coverage of daily exposure, they could potentially incur costs, including procuring eligible assets to meet collateral requirements, associated with such posting. 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 | | | I-2 | | | I-3 | | | Class A | |
PIMCO RAE Emerging Markets Fund(1)(4) | | | | | | | 0.50% | | | | | | | | 0.25% | | | | 0.35% | | | | N/A | | | | 0.35% | |
PIMCO RAE Global Fund(3)(4) | | | | | | | 0.35% | | | | | | | | 0.15% | | | | 0.25% | | | | N/A | | | | 0.25% | |
PIMCO RAE Global ex-US Fund(1)(4) | | | | | | | 0.40% | | | | | | | | 0.15% | | | | 0.25% | | | | N/A | | | | 0.25% | |
PIMCO RAE International Fund(2)(5) | | | | | | | 0.30% | | | | | | | | 0.20% | | | | 0.30% | | | | N/A | | | | 0.30% | |
PIMCO RAE US Fund(2)(5) | | | | | | | 0.25% | | | | | | | | 0.15% | | | | 0.25% | | | | 0.35% | *(6) | | | 0.30% | |
PIMCO RAE US Small Fund(2)(5) | | | | | | | 0.35% | | | | | | | | 0.15% | | | | 0.25% | | | | N/A | | | | 0.30% | |
| * | This particular share class has been registered with the SEC, but has not yet launched. |
| (1) | Effective November 1, 2020, the Fund’s supervisory and administrative fee was reduced by 0.20% for each class. |
| (2) | Effective November 1, 2020, the Fund’s supervisory and administrative fee was reduced by 0.10% for each class. |
| (3) | Effective November 1, 2020, the Fund’s investment advisory fee and supervisory and administrative fee were reduced by 0.05% and 0.15% respectively for each class. |
| (4) | Prior to October 31, 2020, PIMCO contractually agreed, to reduce its Investment Advisory Fee by 0.20% of the average daily net assets of the Fund. |
| (5) | Prior to October 31, 2020, PIMCO contractually agreed, to reduce its Investment Advisory Fee by 0.10% of the average daily net assets of the Fund. |
| (6) | PIMCO has contractually agreed, through October 31, 2021, to waive its supervisory and administrative fee for I-3 shares by 0.05% of the average daily net assets attributable to I-3 shares 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 shares of the Trust pursuant to Rule 12b-1 under the Act. In connection with personal services rendered to Class A 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 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% | |
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
| | | | | | |
| | | | December 31, 2020 | | (Unaudited) |
certain redemptions of Class A shares. For the period ended December 31, 2020, the Distributor retained $3,282 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 expenses; (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.
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, pro rata share of expenses related to obtaining or maintaining a Legal Entity Identifier 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. The waiver is reflected on the Statements of Operations as a component of Waiver and/or Reimbursement by PIMCO.
Prior to October 31, 2020, PIMCO had contractually agreed, to waive a portion of the Investment Advisory Fee as set forth in the following table (calculated as a percentage of each Fund’s average daily net assets).
| | | | | | | | | | | | |
| Fund Name | | | | | Fee Waiver | | | Expiration
Date | |
| | | |
PIMCO RAE Emerging Markets Fund | | | | | | | 0.20% | | | | 10/31/2020 | |
| | | |
PIMCO RAE Global Fund | | | | | | | 0.20% | | | | 10/31/2020 | |
| | | |
PIMCO RAE Global ex-US Fund | | | | | | | 0.20% | | | | 10/31/2020 | |
| | | |
PIMCO RAE International Fund | | | | | | | 0.10% | | | | 10/31/2020 | |
| | | |
PIMCO RAE US Fund | | | | | | | 0.10% | | | | 10/31/2020 | |
| | | |
PIMCO RAE US Small Fund | | | | | | | 0.10% | | | | 10/31/2020 | |
In any month in which the investment advisory contract or supervision and administration agreement is in effect, PIMCO is entitled to reimbursement by each Fund of any portion of the supervisory and administrative fee waived or reimbursed as set forth above (the “Reimbursement Amount”) during the previous thirty-six months from the date of the waiver, provided that such amount paid to PIMCO will not: i) together with any organizational expenses, pro rata share of expenses related to obtaining or maintaining a Legal Entity Identifier and pro rata Trustee fees, exceed, for such month, the Expense Limit (or the amount of the expense limit in place at the time the amount being recouped was originally waived if lower than the Expense Limit); ii) exceed the total Reimbursement Amount; or iii) include any amounts previously reimbursed to PIMCO. In addition, in any month in which the investment advisory contract is in effect, PIMCO is entitled to reimbursement by a Fund of any portion of the advisory fee waived as set forth above (the “RAE Reimbursement Amount”) during the previous thirty-six months from the time of waiver, provided that such amount paid to PIMCO will not: i) together with any recoupment of organizational expenses, pro rata share of expenses related to obtaining or maintaining a Legal Entity Identifier and pro rata Trustee fees or supervisory and administrative fees pursuant to the Expense Limitation Agreement,
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| | | | SEMIANNUAL REPORT | | | | | | | DECEMBER 31, 2020 | | | 79 |
| | | | | | |
| Notes to Financial Statements | | (Cont.) | | | | |
exceed, for such month, the Expense Limit; ii) exceed the total RAE Reimbursement Amount; or iii) include any amounts previously reimbursed to PIMCO. The total recoverable amounts to PIMCO (from the Fee Waiver Agreement and Expense Limitation Agreement combined) at December 31, 2020, were as follows (amounts in thousands†):
| | | | | | | | | | | | | | | | | | | | |
| | | | Expiring within | | | | |
| | | | | |
| Fund Name | | | | | 12 months | | | 13-24 months | | | 25-36 months | | | Total | |
| | | | | |
PIMCO RAE Emerging Markets Fund | | | | | | $ | 4,161 | | | $ | 5,299 | | | $ | 3,164 | | | $ | 12,624 | |
| | | | | |
PIMCO RAE Global Fund | | | | | | | 816 | | | | 642 | | | | 494 | | | | 1,952 | |
| | | | | |
PIMCO RAE Global ex-US Fund | | | | | | | 174 | | | | 159 | | | | 122 | | | | 455 | |
| | | | | |
PIMCO RAE International Fund | | | | | | | 617 | | | | 573 | | | | 699 | | | | 1,889 | |
| | | | | |
PIMCO RAE US Fund | | | | | | | 831 | | | | 839 | | | | 613 | | | | 2,283 | |
| | | | | |
PIMCO RAE US Small Fund | | | | | | | 153 | | | | 158 | | | | 415 | | | | 726 | |
| † | A zero balance may reflect actual amounts rounding to less than one thousand. |
Pursuant to a Fee Waiver, PIMCO has contractually agreed, through October 31, 2021, to waive its supervisory and administrative fee for I-3 shares by 0.05% of the average daily net assets attributable to I-3 shares of PIMCO RAE US Fund. This 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.
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, 2020, the amounts were (in thousands†):
| | | | | | | | |
| Fund Name | | | | | Waived Fees | |
| | |
PIMCO RAE Emerging Markets Fund | | | | | | $ | 59 | |
| | |
PIMCO RAE Global Fund | | | | | | | 12 | |
| | |
PIMCO RAE Global ex-US Fund | | | | | | | 3 | |
| | |
PIMCO RAE International Fund | | | | | | | 35 | |
| | |
PIMCO RAE US Fund | | | | | | | 27 | |
| | |
PIMCO RAE US Small Fund | | | | | | | 15 | |
| † | A zero balance may reflect actual amounts rounding to less than one thousand. |
(f) Acquired Fund Fees and Expenses Acquired Fund expenses incurred by the Funds, if any, 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, 2021, to waive, first, the Investment Advisory Fee and, second, to the extent necessary,
the Supervisory and Administrative Fee it receives from the PIMCO RAE Global Fund in an amount equal to its proportionate share of the Investment Advisory Fees and Supervisory and Administrative Fees charged by PIMCO to the Underlying Funds in which the Fund invests (the “Underlying Fund Fees”) indirectly incurred by the Fund in connection with its investments in Underlying Funds, to the extent the Fund’s Investment Advisory Fee or Investment Advisory Fee and Supervisory and Administrative Fee, taken together, are greater than or equal to the Underlying Fund Fees. This waiver 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 has contractually agreed, through October 31, 2021, to waive, first, the Investment Advisory Fee and, second, to the extent necessary, the Supervisory and Administrative Fee it receives from the PIMCO RAE Global ex-US Fund in an amount equal to the Underlying Fund Fees indirectly incurred by the Fund in connection with its investments in Underlying Funds, to the extent the Fund’s Investment Advisory Fee or Investment Advisory Fee and Supervisory and Administrative Fee, taken together, are greater than or equal to the Underlying Fund Fees. This waiver 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.
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, 2020, the amounts were (in thousands†):
| | | | | | | | |
| Fund Name | | | | | Waived Fees | |
| | |
PIMCO RAE Emerging Markets Fund | | | | | | $ | 775 | |
| | |
PIMCO RAE Global Fund | | | | | | | 930 | |
| | |
PIMCO RAE Global ex-US Fund | | | | | | | 246 | |
| | |
PIMCO RAE International Fund | | | | | | | 314 | |
| | |
PIMCO RAE US Fund | | | | | | | 231 | |
| | |
PIMCO RAE US Small Fund | | | | | | | 125 | |
| † | A zero balance may reflect actual amounts rounding to less than one thousand. |
| | | | | | |
| | | | December 31, 2020 | | (Unaudited) |
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.
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, including brokerage commissions or dealer mark-ups and other transaction costs on the sale of securities and reinvestments in other securities, which are borne by the Fund. 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 when distributed to shareholders). The transaction costs 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, 2020, were as follows (amounts in thousands†):
| | | | | | | | | | | | | | | | | | | | |
| | | | | | U.S. Government/Agency | | | All Other | |
| | | | | |
| Fund Name | | | | | Purchases | | | Sales | | | Purchases | | | Sales | |
| | | | | |
PIMCO RAE Emerging Markets Fund | | | | | | $ | 0 | | | $ | 0 | | | $ | 704,005 | | | $ | 571,211 | |
| | | | | |
PIMCO RAE Global Fund | | | | | | | 0 | | | | 0 | | | | 16,705 | | | | 44,422 | |
| | | | | |
PIMCO RAE Global ex-US Fund | | | | | | | 0 | | | | 0 | | | | 3,974 | | | | 3,164 | |
| | | | | |
PIMCO RAE International Fund | | | | | | | 0 | | | | 0 | | | | 598,742 | | | | 492,051 | |
| | | | | |
PIMCO RAE US Fund | | | | | | | 0 | | | | 0 | | | | 245,011 | | | | 199,806 | |
| | | | | |
PIMCO RAE US Small Fund | | | | | | | 0 | | | | 0 | | | | 362,302 | | | | 225,969 | |
| | | | | | | | | | | | | | | | | | | | |
| † | A zero balance may reflect actual amounts rounding to less than one thousand. |
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 RAE Emerging Markets Fund | | | PIMCO RAE Global Fund | | | PIMCO RAE Global ex-US Fund | |
| | | | | | | |
| | | | | Six Months Ended
12/31/2020 (Unaudited) | | | Year Ended
06/30/2020 | | | Six Months Ended
12/31/2020 (Unaudited) | | | Year Ended
06/30/2020 | | | Six Months Ended
12/31/2020 (Unaudited) | | | Year Ended
06/30/2020 | |
| | | | | | | | | | | | | |
| | | | | Shares | | | Amount | | | Shares | | | Amount | | | Shares | | | Amount | | | Shares | | | Amount | | | Shares | | | Amount | | | Shares | | | Amount | |
Receipts for shares sold | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | |
Institutional Class | | | | | 77,217 | | | $ | 644,250 | | | | 106,725 | | | $ | 971,435 | | | | 692 | | | $ | 6,266 | | | | 9,288 | | | $ | 80,341 | | | | 129 | | | $ | 1,126 | | | | 676 | | | $ | 5,338 | |
| | | | | | | | | | | | | |
I-2 | | | | | 61 | | | | 529 | | | | 542 | | | | 4,758 | | | | 0 | | | | 0 | | | | 5 | | | | 43 | | | | 0 | | | | 0 | | | | 3 | | | | 34 | |
| | | | | | | | | | | | | |
Class A | | | | | 225 | | | | 1,948 | | | | 3,035 | | | | 29,025 | | | | 2 | | | | 22 | | | | 24 | | | | 201 | | | | 219 | | | | 1,854 | | | | 1,860 | | | | 18,577 | |
Issued as reinvestment of distributions | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | |
Institutional Class | | | | | 2,728 | | | | 27,030 | | | | 8,443 | | | | 84,424 | | | | 744 | | | | 7,721 | | | | 2,098 | | | | 21,861 | | | | 133 | | | | 1,351 | | | | 449 | | | | 4,610 | |
| | | | | | | | | | | | | |
I-2 | | | | | 2 | | | | 22 | | | | 8 | | | | 77 | | | | 0 | | | | 3 | | | | 1 | | | | 15 | | | | 0 | | | | 0 | | | | 1 | | | | 10 | |
| | | | | | | | | | | | | |
Class A | | | | | 17 | | | | 163 | | | | 33 | | | | 324 | | | | 2 | | | | 25 | | | | 12 | | | | 120 | | | | 25 | | | | 249 | | | | 67 | | | | 680 | |
Cost of shares redeemed | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | |
Institutional Class | | | | | (64,509 | ) | | | (532,680 | ) | | | (229,152 | ) | | | (1,735,767 | ) | | | (4,886 | ) | | | (48,133 | ) | | | (7,205 | ) | | | (62,887 | ) | | | (102 | ) | | | (886 | ) | | | (2,030 | ) | | | (18,776 | ) |
| | | | | | | | | | | | | |
I-2 | | | | | (177 | ) | | | (1,479 | ) | | | (1,806 | ) | | | (16,841 | ) | | | (4 | ) | | | (42 | ) | | | (11 | ) | | | (90 | ) | | | (7 | ) | | | (65 | ) | | | (38 | ) | | | (377 | ) |
| | | | | | | | | | | | | |
Class A | | | | | (122 | ) | | | (1,038 | ) | | | (3,730 | ) | | | (34,998 | ) | | | (34 | ) | | | (307 | ) | | | (89 | ) | | | (826 | ) | | | (311 | ) | | | (2,796 | ) | | | (739 | ) | | | (6,753 | ) |
| | | | | | | | | | | | | |
Net increase (decrease) resulting from Fund share transactions | | | | | 15,442 | | | $ | 138,745 | | | | (115,902 | ) | | $ | (697,563 | ) | | | (3,484 | ) | | $ | (34,445 | ) | | | 4,123 | | | $ | 38,778 | | | | 86 | | | $ | 833 | | | | 249 | | | $ | 3,343 | |
| | | | | | | | | | | | |
| | | | SEMIANNUAL REPORT | | | | | | | DECEMBER 31, 2020 | | | 81 |
| | | | | | |
| Notes to Financial Statements | | (Cont.) | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | PIMCO RAE International Fund | | | PIMCO RAE US Fund | | | PIMCO RAE US Small Fund | |
| | | | | | | |
| | | | | Six Months Ended
12/31/2020 (Unaudited) | | | Year Ended
06/30/2020 | | | Six Months Ended
12/31/2020 (Unaudited) | | | Year Ended
06/30/2020 | | | Six Months Ended
12/31/2020 (Unaudited) | | | Year Ended
06/30/2020 | |
| | | | | | | | | | | | | |
| | | | | Shares | | | Amount | | | Shares | | | Amount | | | Shares | | | Amount | | | Shares | | | Amount | | | Shares | | | Amount | | | Shares | | | Amount | |
Receipts for shares sold | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | |
Institutional Class | | | | | 53,313 | | | $ | 460,552 | | | | 99,138 | | | $ | 731,893 | | | | 14,771 | | | $ | 154,478 | | | | 15,595 | | | $ | 157,838 | | | | 27,426 | | | $ | 286,900 | | | | 64,231 | | | $ | 474,380 | |
| | | | | | | | | | | | | |
I-2 | | | | | 22 | | | | 183 | | | | 166 | | | | 1,451 | | | | 111 | | | | 1,180 | | | | 1,715 | | | | 17,369 | | | | 3 | | | | 25 | | | | 86 | | | | 777 | |
| | | | | | | | | | | | | |
Class A | | | | | 25 | | | | 227 | | | | 98 | | | | 884 | | | | 107 | | | | 1,141 | | | | 336 | | | | 3,362 | | | | 138 | | | | 1,375 | | | | 301 | | | | 2,794 | |
Issued as reinvestment of distributions | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | |
Institutional Class | | | | | 2,431 | | | | 24,117 | | | | 2,050 | | | | 20,419 | | | | 2,030 | | | | 23,702 | | | | 2,956 | | | | 34,450 | | | | 4,184 | | | | 47,265 | | | | 198 | | | | 2,246 | |
| | | | | | | | | | | | | |
I-2 | | | | | 2 | | | | 17 | | | | 4 | | | | 41 | | | | 55 | | | | 633 | | | | 94 | | | | 1,094 | | | | 8 | | | | 91 | | | | 3 | | | | 39 | |
| | | | | | | | | | | | | |
Class A | | | | | 9 | | | | 86 | | | | 18 | | | | 181 | | | | 22 | | | | 247 | | | | 33 | | | | 381 | | | | 43 | | | | 476 | | | | 5 | | | | 61 | |
Cost of shares redeemed | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | |
Institutional Class | | | | | (39,573 | ) | | | (366,269 | ) | | | (64,099 | ) | | | (506,205 | ) | | | (10,599 | ) | | | (115,741 | ) | | | (26,279 | ) | | | (267,969 | ) | | | (15,118 | ) | | | (152,223 | ) | | | (42,767 | ) | | | (343,280 | ) |
| | | | | | | | | | | | | |
I-2 | | | | | (39 | ) | | | (336 | ) | | | (152 | ) | | | (1,128 | ) | | | (166 | ) | | | (1,761 | ) | | | (1,345 | ) | | | (13,429 | ) | | | (20 | ) | | | (184 | ) | | | (228 | ) | | | (2,236 | ) |
| | | | | | | | | | | | | |
Class A | | | | | (24 | ) | | | (203 | ) | | | (235 | ) | | | (2,023 | ) | | | (179 | ) | | | (1,871 | ) | | | (341 | ) | | | (3,419 | ) | | | (122 | ) | | | (1,245 | ) | | | (237 | ) | | | (2,215 | ) |
| | | | | | | | | | | | | |
Net increase (decrease) resulting from Fund share transactions | | | | | 16,166 | | | $ | 118,374 | | | | 36,988 | | | $ | 245,513 | | | | 6,152 | | | $ | 62,008 | | | | (7,236 | ) | | $ | (70,323 | ) | | | 16,542 | | | $ | 182,480 | | | | 21,592 | | | $ | 132,566 | |
| † | 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, as of December 31, 2020. Some of these shareholders may be considered related parties, which may include, but are not limited to, the investment adviser 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 | |
| | | | | |
PIMCO RAE Emerging Markets Fund | | | | | | | 0 | | | | 2 | | | | 0% | | | | 67% | |
| | | | | |
PIMCO RAE Global ex-US Fund | | | | | | | 3 | | | | 0 | | | | 90% | | | | 0% | |
| | | | | |
PIMCO RAE International Fund | | | | | | | 0 | | | | 3 | | | | 0% | | | | 61% | |
| | | | | |
PIMCO RAE US Fund | | | | | | | 1 | | | | 1 | | | | 10% | | | | 17% | |
| | | | | |
PIMCO RAE US Small Fund | | | | | | | 0 | | | | 2 | | | | 0% | | | | 93% | |
| | | | | | | | | | | | | | | | | | | | |
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, 2020, 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.
| | | | | | |
| | | | December 31, 2020 | | (Unaudited) |
As of their last fiscal year ended June 30, 2020, the Funds had the following post-effective capital losses with no expiration (amounts in thousands†):
| | | | | | | | | | | | |
| | | | | | Short-Term | | | Long-Term | |
| | | |
PIMCO RAE Emerging Markets Fund* | | | | | | $ | 232,414 | | | $ | 279,686 | |
| | | |
PIMCO RAE Global Fund | | | | | | | 0 | | | | 0 | |
| | | |
PIMCO RAE Global ex-US Fund | | | | | | | 157 | | | | 1,471 | |
| | | |
PIMCO RAE International Fund* | | | | | | | 18,248 | | | | 18,682 | |
| | | |
PIMCO RAE US Fund | | | | | | | 0 | | | | 0 | |
| | | |
PIMCO RAE US Small Fund* | | | | | | | 19,982 | | | | 8,623 | |
| † | A zero balance may reflect actual amounts rounding to less than one thousand. |
| * | 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. |
As of December 31, 2020, 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 Emerging Markets Fund | | | | | | $ | 1,405,601 | | | $ | 352,508 | | | $ | (35,565 | ) | | $ | 316,943 | |
| | | | | |
PIMCO RAE Global Fund | | | | | | | 261,168 | | | | 42,112 | | | | 0 | | | | 42,112 | |
| | | | | |
PIMCO RAE Global ex-US Fund | | | | | | | 78,295 | | | | 2,535 | | | | 0 | | | | 2,535 | |
| | | | | |
PIMCO RAE International Fund | | | | | | | 913,389 | | | | 226,951 | | | | (1,578 | ) | | | 225,373 | |
| | | | | |
PIMCO RAE US Fund | | | | | | | 606,206 | | | | 221,787 | | | | (17,457 | ) | | | 204,330 | |
| | | | | |
PIMCO RAE US Small Fund | | | | | | | 435,201 | | | | 134,386 | | | | (2,260 | ) | | | 132,126 | |
| † | 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. |
| | | | | | | | | | | | |
| | | | SEMIANNUAL REPORT | | | | | | | DECEMBER 31, 2020 | | | 83 |
| | | | | | |
| Glossary: | | (abbreviations that may be used in the preceding statements) | | | | (Unaudited) |
| | | | | | | | | | |
| | | | |
Counterparty Abbreviations: | | | | | | | | |
| | | | | |
| BCY | | Barclays Capital, Inc. | | BSN | | The Bank of Nova Scotia - Toronto | | MBC | | HSBC Bank Plc |
| | | | | |
| BMO | | BMO Capital Markets Corp. | | FICC | | Fixed Income Clearing Corporation | | MSC | | Morgan Stanley & Co. LLC. |
| | | | | |
| BOS | | BofA Securities, Inc. | | FOB | | Credit Suisse Securities (USA) LLC | | SAL | | Citigroup Global Markets, Inc. |
| | | | | |
| BPG | | BNP Paribas Securities Corp. | | GSC | | Goldman Sachs & Co. LLC | | UBS | | UBS Securities LLC |
| | | | |
Currency Abbreviations: | | | | | | | | |
| | | | | |
| USD (or $) | �� | United States Dollar | | | | | | | | |
| | | | |
Exchange Abbreviations: | | | | | | | | |
| | | | | |
| OTC | | Over the Counter | | | | | | | | |
| | | | |
Other Abbreviations: | | | | | | | | |
| | | | | |
| ADR | | American Depositary Receipt | | REIT | | Real Estate Investment Trust | | TBA | | To-Be-Announced |
| | | | | |
| GDR | | Global Depositary Receipt | | SP - ADR | | Sponsored American Depositary Receipt | | | | |
| | | | |
| 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 18-19, 2020, 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 PIMCO Dividend and Income Fund , PIMCO RAE Emerging Markets Fund, PIMCO RAE Global ex-US Fund, PIMCO RAE Global Fund, PIMCO RAE International Fund, PIMCO RAE US Fund, PIMCO RAE US Small Fund, PIMCO REALPATH® Blend Income 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 2060 Fund (each, a “Fund,” and collectively, the “Funds”), and Pacific Investment Management Company LLC (“PIMCO”) for an additional one-year term through August 31, 2021.1 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, 2021. 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 Emerging Markets Fund, PIMCO RAE Global ex-US Fund, PIMCO RAE Global Fund, PIMCO RAE International Fund, PIMCO RAE US Fund, PIMCO RAE 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, 2021.
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 for 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, financial information for 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, a memorandum 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. (“Broadridge”), an independent provider of investment company
| 1 | The Board, including a majority of the Independent Trustees, determined to rely on the relief granted by a temporary exemptive order issued by the U.S. Securities and Exchange Commission (the “SEC”) under the Investment Company Act of 1940 that permits fund boards of trustees to approve advisory contracts at a meeting held by remote communications that allows participating trustees to hear one another simultaneously, rather than in-person, in light of the impact of the novel coronavirus (“COVID-19”) pandemic and restrictions on travel and in-person gatherings. The Board determined that reliance on the exemptive order was necessary and appropriate due to circumstances related to current or potential effects of the COVID-19 pandemic and government-mandated restrictions, and prior to commencing the approval meeting, the Board confirmed that all Board members could hear each other simultaneously during the meeting. The Board noted that it would ratify any actions taken at this meeting pursuant to the SEC relief at its next in-person meeting. |
| | | | | | | | | | | | |
| | | | SEMIANNUAL REPORT | | | | | | | DECEMBER 31, 2020 | | | 85 |
| | | | |
| Approval of Investment Advisory Contract and Other Agreements | | (Cont.) | | |
performance information and fee and expense data. The Board received presentations from PIMCO and, where applicable, Research Affiliates and Parametric, 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 18-19, 2020 meeting. The Independent Trustees also met telephonically with counsel to the Trust and the Independent Trustees, including telephonic meetings on July 10, 2020 and July��30, 2020, and conducted a telephonic meeting on July 30, 2020 with management and counsel to the Trust and the Independent Trustees, to discuss the materials presented and other matters deemed relevant to their consideration of the renewal of the Agreements, the Sub-Advisory Agreement and the Portfolio Implementation Agreement. In connection with its review of the Agreements and the Sub-Advisory Agreement, the Board received comparative information on the performance, the risk-adjusted performance and the fees and expenses of other peer group funds and share classes. The Independent Trustees also requested and received supplemental information, including information regarding Fund performance and profitability.
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 weight 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 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, but not limited to: 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 enhancing and investing in its global infrastructure, technology capabilities, risk management processes and the specialized talent needed to stay at the forefront of the competitive investment management industry and to strengthen its ability to deliver services under the Agreements. The Board considered PIMCO’s policies, procedures and systems reasonably designed to assure compliance with applicable laws and regulations, including new regulations impacting the Funds, 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.
In addition, the Trustees considered new services and service enhancements that PIMCO has implemented, including, but not limited to: investing in its cybersecurity program and business continuity functions, including the build-out of a new data center; funding projects and initiatives in support of the Funds; improving PIMCO governance and oversight of key fund administration processes; expanding and engaging a technology consultant to improve certain performance reconciliation processes; enhancing PIMCO’s oversight over certain of the Funds’ service providers; continuing to develop initiatives related to pricing, including, among other items, development of pricing tools and capabilities and continued extensive due diligence regarding pricing vendors; forming a new internal group responsible for the operational aspects of the Liquidity Risk Management Programs; developing compliance and operations processes in connection with regulatory developments; continuing to invest in PIMCO’s technology infrastructure; continuing oversight by the Americas Fund Oversight Committee, which provides senior-level oversight and supervision focused on new and ongoing fund-related business opportunities; expanding engagement with a third party service provider to provide certain additional fund administration services subject to PIMCO’s oversight; investing in the Fund Treasurer’s Office; enhancing a proprietary application to support new trading strategies and increase data precision and administration control; developing a global tax management application that will enable investment professionals to access foreign market and security tax information on a real-time basis; utilizing a service provider’s proprietary software and managed service model to timely meet N-PORT and N-CEN regulatory requirements; upgrading a proprietary application to allow shareholder subscription and redemption data to pass to portfolio managers more quickly and efficiently; implementing a contingent NAV process; continuing to advocate in the public policy
arena; developing a proprietary tool to monitor and facilitate potential interfund lending; utilizing a third-party software technology to allow portfolio management teams to run pre-trade calculations regarding new exchange-traded and cleared derivatives; and developing technology solutions to leverage artificial intelligence and machine learning.
Similarly, the Board considered the sub-advisory services provided by Research Affiliates to the RAE Funds. 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 reviewed materials regarding 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 reviewed materials regarding the nature, extent 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.
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, but not limited to, audit, custodial, portfolio accounting,
ordinary 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, 2020 and other performance data, as available, over short- and long-term periods ended June 30, 2020 (the “PIMCO Report”) and from Broadridge concerning the Funds’ performance, as available, over short- and long-term periods ended March 31, 2020 (the “Broadridge 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 Broadridge Report, which were provided in advance of the August 18-19, 2020 meeting.
The Trustees noted the Funds (based on Institutional Class performance) that outperformed their respective benchmark indexes on a net-of-fees basis over the one-, three- and five-year periods ended June 30, 2020. The Board noted the amounts of the assets of the Trust and PIMCO Funds (based on Institutional Class performance) that outperformed their relevant benchmark net-of-fees over the one-, three- and five-year periods ended June 30, 2020. The Board discussed these and other performance-related developments.
The Board reviewed materials indicating that, according to the Broadridge Report, certain Funds had underperformed in comparison to their respective peer groups or benchmark indexes, or both, over short- and long-term periods. PIMCO reported to the Board on the reasons for the underperformance of certain Funds and actions that have been taken by PIMCO throughout the year to attempt to address underperformance.
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.
| | | | | | | | | | | | |
| | | | SEMIANNUAL REPORT | | | | | | | DECEMBER 31, 2020 | | | 87 |
| | | | |
| Approval of Investment Advisory Contract and Other Agreements | | (Cont.) | | |
4. ADVISORY FEES, SUPERVISORY AND ADMINISTRATIVE FEES AND TOTAL EXPENSES
The Board considered that PIMCO seeks to price new funds to scale at the outset. The Board noted that PIMCO generally seeks to price new funds competitively against the median total expense ratio of the respective Broadridge peer group, if available, while acknowledging that a fee premium may be appropriate 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, and the competitive marketplace for financial products. 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 the Broadridge Report 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 following: the proposed four basis point reduction in the advisory fee for the PIMCO Dividend and Income Fund; the proposed five basis point reduction in the advisory fee for the PIMCO RAE Global Fund; the proposed 20 basis point reduction in the supervisory and administrative fee for each class of the PIMCO RAE Emerging Markets Fund and PIMCO RAE Global ex-US Fund; the proposed 15 basis point reduction for each class of the PIMCO RAE Global Fund; and the proposed 10 basis point reduction for each class of the PIMCO RAE International Fund, PIMCO RAE US Fund and PIMCO RAE US Small Fund.
The Board also reviewed data comparing certain Funds’ advisory fees to the fee rates PIMCO charges to separate accounts, private funds and sub-advised clients with similar investment strategies. In cases where
the fees for other clients were lower than those charged to the Funds, the Trustees noted that the differences in fees were attributable to various factors, including, but not limited to, differences in the advisory and other services provided by PIMCO to the Funds, differences in the number or extent of the services provided by PIMCO to the Funds, the manner in which similar portfolios may be managed, different requirements with respect to liquidity management and the implementation of other regulatory requirements, and the fact that separate accounts may have other contractual arrangements or arrangements across PIMCO strategies that justify different levels of fees. The Trustees also considered that PIMCO faces increased entrepreneurial, legal and regulatory risk in sponsoring and managing mutual funds and ETFs as compared to separate accounts, external sub-advised funds or other investment products. In addition, the Trustees considered that PIMCO may charge certain private funds with similar investment mandates lower fees than the Funds because such private funds are not required to accept daily redemptions or price their assets on a daily basis, generally do not accept small investors with small account balances and operate under a less complex regulatory regime.
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, legal and regulatory risk 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.
The Board considered the Funds’ supervisory and administrative fees, comparing them to similar funds managed by other investment advisers in the Broadridge Report. 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, ordinary 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 inherently reflects certain 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 Funds to scale at inception and reinvesting in other important areas of the business that support the Funds. 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 in most cases the Funds’ total expense ratios were lower than the total expense ratios 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 the Broadridge Report, 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 expense limitation agreement in place for all of the Funds and the various fee waiver agreements in place for the Funds of Funds.
Based on the information presented by PIMCO, Research Affiliates and Broadridge, 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, that the fees charged by Research Affiliates under the Sub-Advisory Agreement, and that the total expenses of each Fund and the RAE Funds after the proposals to decrease their fees, as applicable, 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, as well as the resulting level of profits attributable to the Funds. The Board also 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 investment in global infrastructure, technology capabilities, risk management processes and qualified personnel to reinforce and offer new services and to accommodate changing regulatory requirements.
The Board considered the existence of any economies of scale and noted that, to the extent that PIMCO achieves economies of scale in managing the Funds, PIMCO shares the benefits of economies of scale, if any, 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, governance and oversight of those services, and through fee reductions or waivers, the pricing of Funds to scale from inception and the enhancement of services provided to the Funds in return for fees paid. In considering the advisory fees paid by the Funds, the Board also reviewed materials indicating 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 fees over the annual contract period even if the particular Fund’s assets decline and/or operating costs rise. The Trustees also reviewed materials indicating 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.
The Board concluded that the Funds’ cost structures were reasonable and that PIMCO is appropriately sharing economies of scale, if any,
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| | | | SEMIANNUAL REPORT | | | | | | | DECEMBER 31, 2020 | | | 89 |
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| Approval of Investment Advisory Contract and Other Agreements | | (Cont.) | | (Unaudited) |
through the Funds’ unified fee structure, generally pricing Funds to scale at inception and reinvesting in its business to provide enhanced and expanded services to the Funds and their 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 also considered that affiliates of PIMCO provide distribution and/or shareholder services to the Funds and their shareholders, for which they may be compensated through distribution and servicing fees paid pursuant to the Funds’ Rule 12b-1 plans or otherwise, such as through all or portions of the sales charges on Class A or Class C shares of the Funds, as applicable. The Board noted 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.
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 Avenue
Kansas City, MO 64105
Transfer Agent
DST Asset Manager Solutions, Inc.
Institutional Class, I-2, Administrative Class
430 W 7th Street STE 219024
Kansas City, MO 64105-1407
DST Asset Manager Solutions, Inc.
Class A, Class C, Class R
430 W 7th Street STE 219294
Kansas City, MO 64105-1407
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 Funds listed on the Report cover.
PES4003SAR_123120
PIMCO EQUITY SERIES®
Semiannual Report
December 31, 2020
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 2060 Fund
PIMCO REALPATH® Blend Income Fund
As permitted by regulations adopted by the Securities and Exchange Commission, paper copies of the Fund’s annual and semi-annual shareholder reports will no longer be sent by mail, unless you specifically request paper copies of the reports from the Fund or from your financial intermediary, such as a broker-dealer or bank. Instead, the reports will be made available on the Fund’s website, pimco.com/literature, and you will be notified by mail each time a report is posted and provided with a website link to access the report.
If you already elected to receive shareholder reports electronically, you will not be affected by this change and you need not take any action. You may elect to receive shareholder reports and other communications from the Fund electronically by visiting pimco.com/edelivery or by contacting your financial intermediary, such as a broker dealer or bank.
You may elect to receive all future reports in paper free of charge. If you own these shares through a financial intermediary, such as a broker-dealer or bank, you may contact your financial intermediary to request that you continue to receive paper copies of your shareholder reports. If you invest directly with the Fund, you can inform the Fund that you wish to continue receiving paper copies of your shareholder reports by calling 888.87.PIMCO (888.877.4626). Your election to receive reports in paper will apply to all funds held with the fund complex if you invest directly with the Fund or to all funds held in your account if you invest through a financial intermediary, such as a broker-dealer or bank.
Table of Contents
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.
Dear Shareholder,
We hope that you and your family are remaining safe and healthy during these challenging times. We continue to work tirelessly to navigate markets and manage the assets that you have entrusted with us. Following this letter is the PIMCO Equity Series Semiannual Report, which covers the six-month reporting period ended December 31, 2020. On the subsequent pages, you will find specific details regarding investment results and a discussion of the factors that most affected performance during the reporting period.
For the six-month reporting period ended December 31, 2020
The global economy was severely impacted by the repercussions related to the COVID-19 pandemic. Looking back before the reporting period began, second-quarter 2020 U.S. annualized gross domestic product (“GDP”) was -31.4%. This represented the steepest quarterly decline on record. With the economy reopening, third-quarter GDP growth was 33.4%, the largest quarterly increase on record. The Commerce Department’s initial estimate for fourth-quarter annualized GDP growth — released after the reporting period ended — was 4.0%.
The Federal Reserve (the “Fed”) took unprecedented actions to support the economy and keep markets functioning properly. In early March 2020, before the reporting period began, the Fed lowered the federal funds rate to a range between 1.00% and 1.25%. Later in the month, the Fed lowered the rate to a range between 0.00% and 0.25%. On March 23, the Fed announced that it would make unlimited purchases of Treasury and mortgage securities and, for the first time, it would purchase corporate bonds on the open market. In August 2020, Fed Chair Jerome Powell said the central bank had changed how it viewed the trade-off between lower unemployment and higher inflation. Per Powell’s statement, the Fed’s new approach to setting U.S. monetary policy will entail letting inflation run higher, which could mean that interest rates remain low for an extended period. Meanwhile, in March 2020, the U.S. government passed a total of roughly $2.8 trillion in fiscal stimulus measures to aid the economy. A subsequent $900 billion stimulus package was finalized in December 2020.
Economies outside the U.S. were significantly impacted by the pandemic too. In its October 2020 World Economic Outlook Update, the International Monetary Fund (“IMF”) stated that it expects 2020 GDP in the eurozone, U.K. and Japan will be -8.3%, -9.8% and -5.3%, respectively. For comparison purposes, the GDP of these economies expanded 1.3%, 1.5% and 0.7%, respectively, in 2019.
Against this backdrop, central banks and governments around the world took a number of aggressive actions. Looking back, in March 2020, the European Central Bank (the “ECB”) unveiled a new €750 billion bond-buying program, which was subsequently expanded by another €600 billion in June 2020. In July, the European Union agreed on a €1.8 trillion spending package to bolster its economy. In December 2020, the ECB expanded its monetary stimulus program by another €500 billion.
The Bank of England reduced its key lending rate to 0.10% — a record low — in March, added £100 billion to its quantitative easing program in June, and increased its bond-buying program by £150 billion to £895 billion in November. Finally, toward the end of the year, the U.K. and the European Union agreed to a long-awaited Brexit deal. Elsewhere, the Bank of Japan maintained its short-term interest rate at -0.10%, while increasing the target for its holdings of corporate bonds to ¥4.2 trillion from ¥3.2 trillion. In May 2020, the Japanese government doubled its stimulus measures with a ¥117 trillion package. Finally, in December 2020, the Bank of Japan announced a new ¥73.6 trillion stimulus package. Short-term U.S. Treasury yields edged modestly lower, whereas long-term yields moved higher, albeit from a very low level during the reporting period. The yield on the benchmark 10-year U.S. Treasury note was 0.93% at the end of the reporting period, versus 0.66% on June 30, 2020. The Bloomberg Barclays Global Treasury Index (USD Hedged), which tracks fixed-rate, local currency government debt of investment grade countries, including both developed and emerging markets, returned 0.78%. Meanwhile, the Bloomberg Barclays Global Aggregate Credit Index (USD Hedged), a widely used index of global investment grade credit bonds, returned 4.20%. Riskier fixed income asset classes, including high yield corporate bonds and emerging market debt, also
rallied. The ICE BofAML Developed Markets High Yield Constrained Index (USD Hedged), a widely used index of below-investment-grade bonds, returned 10.82%, whereas emerging market external debt, as represented by the JPMorgan Emerging Markets Bond Index (EMBI) Global (USD Hedged), returned 7.89%. Emerging market local bonds, as represented by the JPMorgan Government Bond Index-Emerging Markets Global Diversified Index (Unhedged), returned 10.29%.
Despite the headwinds from the pandemic, global equities produced strong results. All told, U.S. equities, as represented by the S&P 500 Index, returned 22.16%, partially fueled by a sharp rally in November and December 2020, because, in our view, investor sentiment improved after positive COVID-19 vaccine news. Global equities, as represented by the MSCI World Index, returned 23.00%, whereas emerging market equities, as measured by the MSCI Emerging Markets Index, returned 31.14%. Meanwhile, Japanese equities, as represented by the Nikkei 225 Index (in JPY), returned 24.12% and European equities, as represented by the MSCI Europe Index (in EUR), returned 10.91%.
Commodity prices were volatile and produced mixed results. When the reporting period began, Brent crude oil was approximately $41 a barrel. Brent crude oil ended the reporting period at roughly $52 a barrel. We believe that oil prices rallied because producers reduced their output and investors anticipated stronger demand as global growth improved and several new COVID-19 vaccines were introduced. Elsewhere, copper prices moved higher, while gold declined.
Finally, there were also periods of volatility in the foreign exchange markets, in our view due to fluctuating economic growth, trade conflicts and changing central bank monetary policies, along with the U.S. election and several geopolitical events. The U.S. dollar weakened against a number of other major currencies. For example, the U.S. dollar returned -8.74%, -10.23% and -4.53% versus the euro, the British pound and the Japanese yen, respectively.
Thank you for the assets you have placed with us. We deeply value your trust, and we will continue to work diligently to meet your broad investment needs. For 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 global viewpoints.
| | |
 | | Sincerely, 
Peter G. Strelow Chairman of the Board
PIMCO Variable Insurance Trust |
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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| | | | SEMIANNUAL REPORT | | | | | | | DECEMBER 31, 2020 | | | 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 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 2060 Fund and PIMCO REALPATH® Blend Income Fund (each, a “Fund” and collectively, the “Funds”).
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 and funds sub-advised by Gurtin Municipal Bond Management (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.
We believe that equity funds and bond funds have an important role to play in a well-diversified portfolio. It is important to note, however, that equity funds and bond 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.
Bond funds and fixed income securities are subject to a variety of risks, including interest rate risk, liquidity risk and market risk. In an environment where interest rates may trend upward, rising rates would negatively impact the performance of most bond funds, and fixed income securities and other instruments held by a Fund (and/or Underlying PIMCO Funds or Acquired Funds, as applicable) are likely to decrease in value. A wide variety 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 unpredictable, and there is no guarantee that management will anticipate such movement accurately. A Fund may lose money as a result of movements in interest rates.
As of the date of this report, interest rates in the United States are at or near historically low levels. Thus, the Funds currently face a heightened level of risk associated with rising interest rates and/or bond yields. This could be driven by a variety of factors, including but not limited to central bank monetary policies, changing inflation or real growth rates, general economic conditions, increasing bond issuances or reduced market demand for low yielding investments. Further, while bond markets have steadily grown over the past three decades, dealer inventories of corporate bonds are near historic lows in relation to market size. 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 and Other Risks in the Notes to Financial Statements.
Classifications of the Funds’ portfolio holdings in this report are made according to financial reporting standards. The classification of a
particular portfolio holding as shown in the Allocation Breakdown and Schedule of Investments sections of this report may differ from the classification used for the Funds’ compliance calculations, including those used in the Funds’ prospectus, investment objectives, regulatory, and other investment limitations and policies, which may be based on different asset class, sector or geographical classifications. Each Fund is separately monitored for compliance with respect to prospectus and regulatory requirements.
The geographical classification of foreign (non-U.S.) securities in this report, if any, 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.
Beginning in January 2020, global financial markets have experienced and may continue to experience significant volatility resulting from the spread of a novel coronavirus known as COVID-19. The outbreak of COVID-19 has resulted in travel and border restrictions, quarantines, supply chain disruptions, lower consumer demand and general market uncertainty. The effects of COVID-19 have and may continue to adversely affect the global economy, the economies of certain nations and individual issuers, all of which may negatively impact the Funds’ performance. In addition, COVID-19 and governmental responses to COVID-19 may negatively impact the capabilities of the Funds’ service providers and disrupt the Funds’ operations.
The United States’ enforcement of restrictions on U.S. investments in certain issuers and tariffs on goods from other countries, each with a focus on China, has contributed to international trade tensions and may impact portfolio securities held by the Underlying PIMCO Funds or Acquired Funds.
The United Kingdom’s withdrawal from the European Union may impact Fund returns. The withdrawal may cause substantial volatility in foreign exchange markets, lead to weakness in the exchange rate of the British pound, result in a sustained period of market uncertainty, and destabilize some or all of the other European Union member countries and/or the Eurozone.
A Fund may invest in certain instruments that rely in some fashion upon the London Interbank Offered Rate (“LIBOR”). LIBOR is an average interest rate, determined by the ICE Benchmark Administration, that banks charge one another for the use of short-term money. The United Kingdom’s Financial Conduct Authority, which regulates LIBOR, has announced plans to ultimately phase out the use of LIBOR. There remains uncertainty regarding future utilization of LIBOR and the nature of any replacement rate (e.g., the Secured Overnight Financing Rate, which is intended to replace U.S. dollar LIBOR and measures the cost of overnight borrowings through repurchase agreement
transactions collateralized with U.S. Treasury securities). Any potential effects of the transition away from LIBOR on a Fund or on certain instruments in which a Fund invests can be difficult to ascertain, and they may vary depending on a variety of factors. The transition may also result in a reduction in the value of certain instruments held by a Fund or a reduction in the effectiveness of related Fund transactions such as hedges. Any such effects of the transition away from LIBOR, as well as other unforeseen effects, could result in losses to a Fund.
The PIMCO REALPATH® Blend Funds are intended for investors who prefer to have their asset allocation decisions made by professional
money managers and are designed to offer individual investors comprehensive asset allocation strategies tailored to the time when they expect to retire or to begin withdrawing assets. Each PIMCO 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
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| | | | SEMIANNUAL REPORT | | | | | | | DECEMBER 31, 2020 | | | 5 |
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| Important Information About the Funds | | (Cont.) | | |
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. Historical performance for a Fund or share class may have been positively impacted by fee waivers or expense limitations in place during some or all of the periods shown, if applicable. Future performance (including total return or yield) and distributions may be negatively impacted by the expiration or reduction of any such fee waivers or expense limitations.
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 A | | | Class R | | | Diversification
Status | |
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 2060 Fund | | | | | | | 12/31/19 | | | | 12/31/19 | | | | 12/31/19 | | | | 12/31/19 | | | | — | | | | 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 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 Funds file portfolio holdings information with the SEC on Form N-PORT within 60 days of the end of each fiscal quarter. The Funds’ complete schedule of securities holdings as of the end of each fiscal quarter will be made available to the public on the SEC’s website
at www.sec.gov and on PIMCO’s website at www.pimco.com, and will be made available, upon request, by calling PIMCO at (888) 87-PIMCO.
The SEC adopted a rule that allows the Funds to fulfill their obligation to deliver shareholder reports to investors by providing access to such reports online free of charge and by mailing a notice that the report is electronically available. Pursuant to the rule, investors may elect to receive all future reports in paper free of charge by contacting their financial intermediary or, if invested directly with a Fund, investors can inform the Fund by calling 888.877.4626. Any election to receive reports in paper will apply to all funds held with the fund complex if invested directly with a Fund or to all funds held in the investor’s account if invested through a financial intermediary.
In August 2020, the SEC proposed changes to the mutual fund and ETF shareholder report and registration statement disclosure requirements and the registered fund advertising rules, which, if adopted, will change the disclosures provided to shareholders.
In October 2020, the SEC adopted a rule related to the use of derivatives, short sales, reverse repurchase agreements and certain other transactions by registered investment companies that rescinds and withdraws the guidance of the SEC and its staff regarding asset segregation and cover transactions. Subject to certain exceptions, and after an eighteen-month transition period, the rule requires funds to trade derivatives and other transactions that create future payment or delivery obligations (except reverse repurchase agreements and similar financing transactions) subject to a value-at-risk leverage limit, certain derivatives risk management program and reporting requirements. These requirements may limit the ability of the Funds to use derivatives and reverse repurchase agreements and similar financing transactions as part of their investment strategies and may increase the cost of the Funds’ investments and cost of doing business, which could adversely affect investors.
In October 2020, the SEC adopted a rule regarding the ability of a fund to invest in other funds. The rule allows a fund to acquire shares of another fund in excess of certain limitations currently imposed by the Investment Company Act of 1940 (the “Act”) without obtaining individual exemptive relief from the SEC, subject to certain conditions. The rule also included the rescission of certain exemptive relief from the SEC and guidance from the SEC staff for funds to invest in other funds. The impact that these changes may have on the Funds is uncertain.
In December 2020, the SEC adopted a rule addressing fair valuation of fund investments. The new rule sets forth requirements for good faith determinations of fair value as well as for the performance of fair value determinations, including related oversight and reporting obligations.
The new rule also defines “readily available market quotations” for purposes of the definition of “value” under the Act, and the SEC noted that this definition will apply in all contexts under the Act. The SEC adopted an eighteen-month transition period beginning from the effective date for both the new rule and the associated new recordkeeping requirements. The impact of the new rule on the Funds is uncertain at this time.
| | | | | | | | | | | | |
| | | | SEMIANNUAL REPORT | | | | | | | DECEMBER 31, 2020 | | | 7 |
PIMCO REALPATH® Blend 2025 Fund
Cumulative Returns Through December 31, 2020
$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 under normal circumstances in a combination of affiliated and unaffiliated funds that are registered under the Investment Company Act of 1940, as amended (the “Act”), equity securities, Fixed Income Instruments of varying maturities, or related derivatives on any of the preceding securities mentioned. 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 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. 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, 2020 | |
| | | | | |
| | | | | 6 Months* | | | 1 Year | | | 5 Years | | | Fund Inception
(12/31/14) | |
 | | PIMCO REALPATH® Blend 2025 Fund Institutional Class | | | 14.99% | | | | 15.13% | | | | 10.32% | | | | 7.88% | |
| | PIMCO REALPATH® Blend 2025 Fund Administrative Class | | | 14.80% | | | | 14.81% | | | | 10.03% | | | | 7.60% | |
| | PIMCO REALPATH® Blend 2025 Fund Class A | | | 14.68% | | | | 14.51% | | | | 9.76% | | | | 7.34% | |
| | PIMCO REALPATH® Blend 2025 Fund Class A (adjusted) | | | 8.37% | | | | 8.22% | | | | 8.53% | | | | 6.34% | |
 | | S&P Target Date 2025 Index± | | | 13.80% | | | | 11.22% | | | | 9.08% | | | | 7.46% | |
All Fund returns are net of fees and expenses and include applicable fee waivers and/or expense limitations. Absent any applicable fee waivers and/or expense limitations, performance would have been lower and there can be no assurance that any such waivers or limitations will continue in the future.
* 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 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 0.56% for the Institutional Class shares, 0.81% for the Administrative Class shares, and 1.06% 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.
| | | | |
| Institutional Class - PPZRX | | Administrative Class - PPZDX | | Class A - PPZAX |
Top 10 Holdings as of December 31, 2020†§
| | | | | | | | |
Vanguard Institutional Index Fund ‘Institutional’ | | | | | | | 23.6% | |
PIMCO Income Fund | | | | | | | 14.0% | |
Vanguard Developed Markets Index Fund ‘Institutional’ | | | | | | | 12.0% | |
PIMCO Total Return Fund | | | | | | | 11.7% | |
Vanguard Emerging Markets Stock Index Fund ‘Institutional’ | | | | | | | 8.0% | |
PIMCO Long-Term Real Return Fund | | | | | | | 5.6% | |
PIMCO Real Return Fund | | | | | | | 4.9% | |
PIMCO Emerging Markets Local Currency and Bond Fund | | | | | | | 3.9% | |
PIMCO Long-Term U.S. Government Fund | | | | | | | 2.4% | |
PIMCO High Yield Fund | | | | | | | 2.3% | |
† % 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 (on a gross basis) during the reporting period:
| » | | Exposure to U.S. large market capitalization equities contributed to absolute performance, as U.S. large market capitalization equities posted positive returns. |
| » | | Exposure to developed market ex-U.S. equities contributed to absolute performance, as developed market ex-U.S. equities posted positive returns. |
| » | | Exposure to emerging market equities contributed to absolute performance, as emerging market equities posted positive returns. |
| » | | Exposure to U.S. small market capitalization equities contributed to absolute performance, as U.S. small market capitalization equities posted positive returns. |
| » | | No notable detractors from absolute performance over the period. |
| | | | | | | | | | | | |
| | | | SEMIANNUAL REPORT | | | | | | | DECEMBER 31, 2020 | | | 9 |
PIMCO REALPATH® Blend 2030 Fund
Cumulative Returns Through December 31, 2020
$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 under normal circumstances in a combination of affiliated and unaffiliated funds that are registered under the Investment Company Act of 1940, as amended (the “Act”), equity securities, Fixed Income Instruments of varying maturities, or related derivatives on any of the preceding securities mentioned. 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 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. 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, 2020 | |
| | | | | |
| | | | | 6 Months* | | | 1 Year | | | 5 Years | | | Fund Inception
(12/31/14) | |
| | PIMCO REALPATH® Blend 2030 Fund Institutional Class | | | 16.48% | | | | 14.28% | | | | 11.00% | | | | 8.31% | |
| | PIMCO REALPATH® Blend 2030 Fund Administrative Class | | | 16.38% | | | | 14.05% | | | | 10.74% | | | | 8.05% | |
| | PIMCO REALPATH® Blend 2030 Fund Class A | | | 16.31% | | | | 13.71% | | | | 10.48% | | | | 7.79% | |
| | PIMCO REALPATH® Blend 2030 Fund Class A (adjusted) | | | 9.93% | | | | 7.43% | | | | 9.24% | | | | 6.78% | |
| | S&P Target Date 2030 Index± | | | 16.07% | | | | 11.91% | | | | 9.78% | | | | 8.02% | |
All Fund returns are net of fees and expenses and include applicable fee waivers and/or expense limitations. Absent any applicable fee waivers and/or expense limitations, performance would have been lower and there can be no assurance that any such waivers or limitations will continue in the future.
* 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 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 0.47% for the Institutional Class shares, 0.72% for the Administrative Class shares, and 0.97% 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.
| | | | |
| Institutional Class - PBPNX | | Administrative Class - PBPRX | | Class A - PBPAX |
Top 10 Holdings as of December 31, 2020†§
| | | | | | | | |
Vanguard Institutional Index Fund ‘Institutional’ | | | | | | | 30.5% | |
Vanguard Developed Markets Index Fund ‘Institutional’ | | | | | | | 14.5% | |
PIMCO Income Fund | | | | | | | 12.6% | |
PIMCO Total Return Fund | | | | | | | 10.2% | |
Vanguard Emerging Markets Stock Index Fund ‘Institutional’ | | | | | | | 9.2% | |
PIMCO Real Return Fund | | | | | | | 4.2% | |
PIMCO Long-Term Real Return Fund | | | | | | | 3.7% | |
PIMCO Emerging Markets Local Currency and Bond Fund | | | | | | | 3.6% | |
Vanguard Small-Cap Index Fund ‘Admiral’ | | | | | | | 2.6% | |
PIMCO High Yield Fund | | | | | | | 2.4% | |
† % 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 (on a gross basis) during the reporting period:
| » | | Exposure to U.S. large market capitalization equities contributed to absolute performance, as U.S. large market capitalization equities posted positive returns. |
| » | | Exposure to developed market ex-U.S. equities contributed to absolute performance, as developed market ex-U.S. equities posted positive returns. |
| » | | Exposure to emerging market equities contributed to absolute performance, as emerging market equities posted positive returns. |
| » | | Exposure to U.S. small market capitalization equities contributed to absolute performance, as U.S. small market capitalization equities posted positive returns. |
| » | | No notable detractors from absolute performance over the period. |
| | | | | | | | | | | | |
| | | | SEMIANNUAL REPORT | | | | | | | DECEMBER 31, 2020 | | | 11 |
PIMCO REALPATH® Blend 2035 Fund
Cumulative Returns Through December 31, 2020
$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 under normal circumstances in a combination of affiliated and unaffiliated funds that are registered under the Investment Company Act of 1940, as amended (the “Act”), equity securities, Fixed Income Instruments of varying maturities, or related derivatives on any of the preceding securities mentioned. 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 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. 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, 2020 | |
| | | | | |
| | | | | 6 Months* | | | 1 Year | | | 5 Years | | | Fund Inception
(12/31/14) | |
| | PIMCO REALPATH® Blend 2035 Fund Institutional Class | | | 18.24% | | | | 13.73% | | | | 11.28% | | | | 8.48% | |
| | PIMCO REALPATH® Blend 2035 Fund Administrative Class | | | 18.05% | | | | 13.41% | | | | 10.99% | | | | 8.19% | |
| | PIMCO REALPATH® Blend 2035 Fund Class A | | | 17.86% | | | | 13.15% | | | | 10.71% | | | | 7.94% | |
| | PIMCO REALPATH® Blend 2035 Fund Class A (adjusted) | | | 11.37% | | | | 6.91% | | | | 9.48% | | | | 6.93% | |
| | S&P Target Date 2035 Index± | | | 18.60% | | | | 12.79% | | | | 10.47% | | | | 8.58% | |
All Fund returns are net of fees and expenses and include applicable fee waivers and/or expense limitations. Absent any applicable fee waivers and/or expense limitations, performance would have been lower and there can be no assurance that any such waivers or limitations will continue in the future.
* 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 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 0.39% for the Institutional Class shares, 0.64% for the Administrative Class shares, and 0.89% 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.
| | | | |
| Institutional Class - PDGZX | | Administrative Class - PDGDX | | Class A - PDGAX |
Top 10 Holdings as of December 31, 2020†§
| | | | | | | | |
Vanguard Institutional Index Fund ‘Institutional’ | | | | | | | 33.6% | |
Vanguard Developed Markets Index Fund ‘Institutional’ | | | | | | | 16.6% | |
PIMCO Income Fund | | | | | | | 10.4% | |
Vanguard Emerging Markets Stock Index Fund ‘Institutional’ | | | | | | | 9.3% | |
PIMCO Total Return Fund | | | | | | | 8.0% | |
PIMCO Real Return Fund | | | | | | | 3.3% | |
PIMCO Emerging Markets Local Currency and Bond Fund | | | | | | | 3.0% | |
Vanguard Small-Cap Index Fund ‘Admiral’ | | | | | | | 3.0% | |
PIMCO High Yield Fund | | | | | | | 2.3% | |
PIMCO Long-Term Real Return Fund | | | | | | | 1.3% | |
† % 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 (on a gross basis) during the reporting period:
| » | | Exposure to U.S. large market capitalization equities contributed to absolute performance, as U.S. large market capitalization equities posted positive returns. |
| » | | Exposure to developed market ex-U.S. equities contributed to absolute performance, as developed market ex-U.S. equities posted positive returns. |
| » | | Exposure to emerging market equities contributed to absolute performance, as emerging market equities posted positive returns. |
| » | | Exposure to U.S. small market capitalization equities contributed to absolute performance, as U.S. small market capitalization equities posted positive returns. |
| » | | No notable detractors from absolute performance over the period. |
| | | | | | | | | | | | |
| | | | SEMIANNUAL REPORT | | | | | | | DECEMBER 31, 2020 | | | 13 |
PIMCO REALPATH® Blend 2040 Fund
Cumulative Returns Through December 31, 2020
$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 under normal circumstances in a combination of affiliated and unaffiliated funds that are registered under the Investment Company Act of 1940, as amended (the “Act”), equity securities, Fixed Income Instruments of varying maturities, or related derivatives on any of the preceding securities mentioned. 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 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. 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, 2020 | |
| | | | | |
| | | | | 6 Months* | | | 1 Year | | | 5 Years | | | Fund Inception
(12/31/14) | |
| | PIMCO REALPATH® Blend 2040 Fund Institutional Class | | | 19.55% | | | | 13.80% | | | | 11.46% | | | | 8.71% | |
| | PIMCO REALPATH® Blend 2040 Fund Administrative Class | | | 19.47% | | | | 13.49% | | | | 11.17% | | | | 8.44% | |
| | PIMCO REALPATH® Blend 2040 Fund Class A | | | 19.38% | | | | 13.21% | | | | 10.90% | | | | 8.18% | |
| | PIMCO REALPATH® Blend 2040 Fund Class A (adjusted) | | | 12.78% | | | | 7.02% | | | | 9.64% | | | | 7.16% | |
| | S&P Target Date 2040 Index± | | | 20.32% | | | | 13.37% | | | | 10.95% | | | | 8.96% | |
All Fund returns are net of fees and expenses and include applicable fee waivers and/or expense limitations. Absent any applicable fee waivers and/or expense limitations, performance would have been lower and there can be no assurance that any such waivers or limitations will continue in the future.
* 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 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 0.33% for the Institutional Class shares, 0.58% for the Administrative Class 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.
| | | | |
| Institutional Class - PVPNX | | Administrative Class - PVPRX | | Class A - PVPAX |
Top 10 Holdings as of December 31, 2020†§
| | | | | | | | |
Vanguard Institutional Index Fund ‘Institutional’ | | | | | | | 38.6% | |
Vanguard Developed Markets Index Fund ‘Institutional’ | | | | | | | 19.5% | |
Vanguard Emerging Markets Stock Index Fund ‘Institutional’ | | | | | | | 9.9% | |
PIMCO Income Fund | | | | | | | 8.6% | |
PIMCO Total Return Fund | | | | | | | 6.2% | |
Vanguard Small-Cap Index Fund ‘Admiral’ | | | | | | | 3.6% | |
PIMCO Emerging Markets Local Currency and Bond Fund | | | | | | | 2.6% | |
PIMCO Real Return Fund | | | | | | | 2.6% | |
PIMCO High Yield Fund | | | | | | | 2.4% | |
PIMCO International Bond Fund (U.S. Dollar-Hedged) | | | | | | | 0.7% | |
† % 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 (on a gross basis) during the reporting period:
| » | | Exposure to U.S. large market capitalization equities contributed to absolute performance, as U.S. large market capitalization equities posted positive returns. |
| » | | Exposure to developed market ex-U.S. equities contributed to absolute performance, as developed market ex-U.S. equities posted positive returns. |
| » | | Exposure to emerging market equities contributed to absolute performance, as emerging market equities posted positive returns. |
| » | | Exposure to U.S. small market capitalization equities contributed to absolute performance, as U.S. small market capitalization equities posted positive returns. |
| » | | No notable detractors from absolute performance over the period. |
| | | | | | | | | | | | |
| | | | SEMIANNUAL REPORT | | | | | | | DECEMBER 31, 2020 | | | 15 |
PIMCO REALPATH® Blend 2045 Fund
Cumulative Returns Through December 31, 2020
$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 under normal circumstances in a combination of affiliated and unaffiliated funds that are registered under the Investment Company Act of 1940, as amended (the “Act”), equity securities, Fixed Income Instruments of varying maturities, or related derivatives on any of the preceding securities mentioned. 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 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. 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, 2020 | |
| | | | | |
| | | | | 6 Months* | | | 1 Year | | | 5 Years | | | Fund Inception
(12/31/14) | |
| | PIMCO REALPATH® Blend 2045 Fund Institutional Class | | | 20.71% | | | | 13.94% | | | | 11.62% | | | | 8.79% | |
| | PIMCO REALPATH® Blend 2045 Fund Administrative Class | | | 20.47% | | | | 13.56% | | | | 11.31% | | | | 8.50% | |
| | PIMCO REALPATH® Blend 2045 Fund Class A | | | 20.35% | | | | 13.34% | | | | 11.04% | | | | 8.24% | |
| | PIMCO REALPATH® Blend 2045 Fund Class A (adjusted) | | | 13.75% | | | | 7.14% | | | | 9.78% | | | | 7.23% | |
| | S&P Target Date 2045 Index± | | | 21.36% | | | | 13.66% | | | | 11.24% | | | | 9.19% | |
All Fund returns are net of fees and expenses and include applicable fee waivers and/or expense limitations. Absent any applicable fee waivers and/or expense limitations, performance would have been lower and there can be no assurance that any such waivers or limitations will continue in the future.
* 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 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 0.27% for the Institutional Class shares, 0.52% for the Administrative Class shares, and 0.77% 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.
| | | | |
| Institutional Class - PVQNX | | Administrative Class - PVQDX | | Class A - PVQAX |
Top 10 Holdings as of December 31, 2020†§
| | | | | | | | |
Vanguard Institutional Index Fund ‘Institutional’ | | | | | | | 41.5% | |
Vanguard Developed Markets Index Fund ‘Institutional’ | | | | | | | 21.1% | |
Vanguard Emerging Markets Stock Index Fund ‘Institutional’ | | | | | | | 10.2% | |
PIMCO Income Fund | | | | | | | 6.4% | |
PIMCO Total Return Fund | | | | | | | 4.1% | |
Vanguard Small-Cap Index Fund ‘Institutional’ | | | | | | | 4.0% | |
PIMCO High Yield Fund | | | | | | | 2.4% | |
PIMCO Emerging Markets Local Currency and Bond Fund | | | | | | | 2.1% | |
PIMCO Real Return Fund | | | | | | | 1.7% | |
PIMCO International Bond Fund (U.S. Dollar-Hedged) | | | | | | | 0.5% | |
† % 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 (on a gross basis) during the reporting period:
| » | | Exposure to U.S. large market capitalization equities contributed to absolute performance, as U.S. large market capitalization equities posted positive returns. |
| » | | Exposure to developed market ex-U.S. equities contributed to absolute performance, as developed market ex-U.S. equities posted positive returns. |
| » | | Exposure to emerging market equities contributed to absolute performance, as emerging market equities posted positive returns. |
| » | | Exposure to U.S. small market capitalization equities contributed to absolute performance, as U.S. small market capitalization equities posted positive returns. |
| » | | No notable detractors from absolute performance over the period. |
| | | | | | | | | | | | |
| | | | SEMIANNUAL REPORT | | | | | | | DECEMBER 31, 2020 | | | 17 |
PIMCO REALPATH® Blend 2050 Fund
Cumulative Returns Through December 31, 2020
$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 under normal circumstances in a combination of affiliated and unaffiliated funds that are registered under the Investment Company Act of 1940, as amended (the “Act”), equity securities, Fixed Income Instruments of varying maturities, or related derivatives on any of the preceding securities mentioned. 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 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. 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, 2020 | |
| | | | | |
| | | | | 6 Months* | | | 1 Year | | | 5 Years | | | Fund Inception
(12/31/14) | |
| | PIMCO REALPATH® Blend 2050 Fund Institutional Class | | | 21.15% | | | | 13.72% | | | | 11.65% | | | | 8.88% | |
| | PIMCO REALPATH® Blend 2050 Fund Administrative Class | | | 20.98% | | | | 13.41% | | | | 11.36% | | | | 8.59% | |
| | PIMCO REALPATH® Blend 2050 Fund Class A | | | 20.84% | | | | 13.08% | | | | 11.10% | | | | 8.33% | |
| | PIMCO REALPATH® Blend 2050 Fund Class A (adjusted) | | | 14.19% | | | | 6.83% | | | | 9.84% | | | | 7.31% | |
| | S&P Target Date 2050 Index± | | | 21.88% | | | | 13.87% | | | | 11.44% | | | | 9.36% | |
All Fund returns are net of fees and expenses and include applicable fee waivers and/or expense limitations. Absent any applicable fee waivers and/or expense limitations, performance would have been lower and there can be no assurance that any such waivers or limitations will continue in the future.
* 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 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 0.24% for the Institutional Class shares, 0.49% for the Administrative Class shares, and 0.74% 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.
| | | | |
| Institutional Class - PPQZX | | Administrative Class - PPQDX | | Class A - PPQAX |
Top 10 Holdings as of December 31, 2020†§
| | | | | | | | |
Vanguard Institutional Index Fund ‘Institutional’ | | | | | | | 43.5% | |
Vanguard Developed Markets Index Fund ‘Institutional’ | | | | | | | 23.0% | |
Vanguard Emerging Markets Stock Index Fund ‘Institutional’ | | | | | | | 10.6% | |
PIMCO Income Fund | | | | | | | 5.1% | |
Vanguard Small-Cap Index Fund ‘Institutional’ | | | | | | | 4.3% | |
PIMCO Total Return Fund | | | | | | | 2.7% | |
PIMCO High Yield Fund | | | | | | | 2.4% | |
PIMCO Emerging Markets Local Currency and Bond Fund | | | | | | | 1.8% | |
PIMCO Real Return Fund | | | | | | | 1.1% | |
PIMCO International Bond Fund (U.S. Dollar-Hedged) | | | | | | | 0.3% | |
† % 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 (on a gross basis) during the reporting period:
| » | | Exposure to U.S. large market capitalization equities contributed to absolute performance, as U.S. large market capitalization equities posted positive returns. |
| » | | Exposure to developed market ex-U.S. equities contributed to absolute performance, as developed market ex-U.S. equities posted positive returns. |
| » | | Exposure to emerging market equities contributed to absolute performance, as emerging market equities posted positive returns. |
| » | | Exposure to U.S. small market capitalization equities contributed to absolute performance, as U.S. small market capitalization equities posted positive returns. |
| » | | No notable detractors from absolute performance over the period. |
| | | | | | | | | | | | |
| | | | SEMIANNUAL REPORT | | | | | | | DECEMBER 31, 2020 | | | 19 |
PIMCO REALPATH® Blend 2055 Fund
Cumulative Returns Through December 31, 2020
$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 under normal circumstances in a combination of affiliated and unaffiliated funds that are registered under the Investment Company Act of 1940, as amended (the “Act”), equity securities, Fixed Income Instruments of varying maturities, or related derivatives on any of the preceding securities mentioned. 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 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. 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, 2020 | |
| | | | | |
| | | | | 6 Months* | | | 1 Year | | | 5 Years | | | Fund Inception
(12/31/14) | |
| | PIMCO REALPATH® Blend 2055 Fund Institutional Class | | | 21.21% | | | | 13.30% | | | | 11.52% | | | | 8.76% | |
| | PIMCO REALPATH® Blend 2055 Fund Administrative Class | | | 21.10% | | | | 13.07% | | | | 11.27% | | | | 8.51% | |
| | PIMCO REALPATH® Blend 2055 Fund Class A | | | 20.94% | | | | 12.82% | | | | 10.98% | | | | 8.21% | |
| | PIMCO REALPATH® Blend 2055 Fund Class A (adjusted) | | | 14.30% | | | | 6.61% | | | | 9.72% | | | | 7.19% | |
| | S&P Target Date 2055 Index± | | | 22.14% | | | | 13.86% | | | | 11.55% | | | | 9.43% | |
All Fund returns are net of fees and expenses and include applicable fee waivers and/or expense limitations. Absent any applicable fee waivers and/or expense limitations, performance would have been lower and there can be no assurance that any such waivers or limitations will continue in the future.
* 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 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 0.24% for the Institutional Class shares, 0.49% for the Administrative Class shares, and 0.74% 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.
| | | | |
| Institutional Class - PRQZX | | Administrative Class - PRQDX | | Class A - PRQAX |
Top 10 Holdings as of December 31, 2020†§
| | | | | | | | |
Vanguard Institutional Index Fund ‘Institutional’ | | | | | | | 43.3% | |
Vanguard Developed Markets Index Fund ‘Institutional’ | | | | | | | 23.6% | |
Vanguard Emerging Markets Stock Index Fund ‘Institutional’ | | | | | | | 10.5% | |
PIMCO Income Fund | | | | | | | 4.4% | |
Vanguard Small-Cap Index Fund ‘Admiral’ | | | | | | | 4.3% | |
PIMCO High Yield Fund | | | | | | | 2.4% | |
PIMCO Total Return Fund | | | | | | | 2.1% | |
PIMCO Emerging Markets Local Currency and Bond Fund | | | | | | | 1.7% | |
PIMCO Real Return Fund | | | | | | | 0.9% | |
PIMCO International Bond Fund (U.S. Dollar-Hedged) | | | | | | | 0.2% | |
† % 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 (on a gross basis) during the reporting period:
| » | | Exposure to U.S. large market capitalization equities contributed to absolute performance, as U.S. large market capitalization equities posted positive returns. |
| » | | Exposure to developed market ex-U.S. equities contributed to absolute performance, as developed market ex-U.S. equities posted positive returns. |
| » | | Exposure to emerging market equities contributed to absolute performance, as emerging market equities posted positive returns. |
| » | | Exposure to U.S. small market capitalization equities contributed to absolute performance, as U.S. small market capitalization equities posted positive returns. |
| » | | No notable detractors from absolute performance over the period. |
| | | | | | | | | | | | |
| | | | SEMIANNUAL REPORT | | | | | | | DECEMBER 31, 2020 | | | 21 |
PIMCO REALPATH® Blend 2060 Fund
Cumulative Returns Through December 31, 2020
$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 2060 Fund seeks to maximize total return, consistent with prudent investment management, by investing under normal circumstances in a combination of affiliated and unaffiliated funds that are registered under the Investment Company Act of 1940, as amended (the “Act”), equity securities, Fixed Income Instruments of varying maturities, or related derivatives on any of the preceding securities mentioned. 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 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. 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, 2020 | |
| | | | |
| | | | | 6 Months* | | | 1 Year | | | Fund Inception
(12/31/19) | |
| | PIMCO REALPATH® Blend 2060 Fund Institutional Class | | | 21.30% | | | | 13.42% | | | | 13.42% | |
| | PIMCO REALPATH® Blend 2060 Fund Administrative Class | | | 21.19% | | | | 13.19% | | | | 13.19% | |
| | PIMCO REALPATH® Blend 2060 Fund Class A | | | 21.18% | | | | 12.94% | | | | 12.94% | |
| | PIMCO REALPATH® Blend 2060 Fund Class A (adjusted) | | | 14.54% | | | | 6.75% | | | | 6.75% | |
| | S&P Target Date 2060+ Index± | | | 22.13% | | | | 13.99% | | | | 13.95% | |
All Fund returns are net of fees and expenses and include applicable fee waivers and/or expense limitations. Absent any applicable fee waivers and/or expense limitations, performance would have been lower and there can be no assurance that any such waivers or limitations will continue in the future.
* 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 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 0.22% for the Institutional Class shares, 0.47% for the Administrative Class 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.
| | | | |
| Institutional Class - PRBMX | | Administrative Class - PRBEX | | Class A - PRBAX |
Top 10 Holdings as of December 31, 2020†§
| | | | | | | | |
Vanguard 500 Index Fund ‘Admiral’ | | | | | | | 44.6% | |
Vanguard Developed Markets Index Fund ‘Admiral’ | | | | | | | 24.5% | |
Vanguard Emerging Markets Stock Index Fund ‘Admiral’ | | | | | | | 10.9% | |
PIMCO Income Fund | | | | | | | 4.4% | |
Vanguard Small-Cap Index Fund ‘Admiral’ | | | | | | | 4.3% | |
PIMCO High Yield Fund | | | | | | | 2.4% | |
PIMCO Total Return Fund | | | | | | | 2.0% | |
PIMCO Emerging Markets Local Currency and Bond Fund | | | | | | | 1.7% | |
PIMCO Real Return Fund | | | | | | | 0.8% | |
PIMCO International Bond Fund (U.S. Dollar-Hedged) | | | | | | | 0.2% | |
† % of Investments, at value.
§ Top 10 Holdings and % of Investments exclude securities sold short, financial derivative instruments and shortterm instruments, if any.
Fund Insights
The following affected performance (on a gross basis) during the reporting period:
| » | | Exposure to U.S. large market capitalization equities contributed to absolute performance, as U.S. large market capitalization equities posted positive returns. |
| » | | Exposure to developed market ex-U.S. equities contributed to absolute performance, as developed market ex-U.S. equities posted positive returns. |
| » | | Exposure to emerging market equities contributed to absolute performance, as emerging market equities posted positive returns. |
| » | | Exposure to U.S. small market capitalization equities contributed to absolute performance, as U.S. small market capitalization equities posted positive returns. |
| » | | No notable detractors from absolute performance over the period. |
| | | | | | | | | | | | |
| | | | SEMIANNUAL REPORT | | | | | | | DECEMBER 31, 2020 | | | 23 |
PIMCO REALPATH® Blend Income Fund
Cumulative Returns Through December 31, 2020
$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 under normal circumstances in a combination of affiliated and unaffiliated funds that are registered under the Investment Company Act of 1940, as amended (the “Act”), equity securities, Fixed Income Instruments of varying maturities, or related derivatives on any of the preceding securities mentioned. The Fund may invest in Institutional Class or Class M shares of any funds of the PIMCO Equity Series (the “Trust”) and PIMCO Funds, and in other affiliated funds, including funds of PIMCO ETF Trust, except funds of funds and series of PIMCO Funds sub-advised by Gurtin Municipal Bond Management (“Underlying PIMCO Funds”), and unaffiliated funds that are registered under the Act (collectively, “Acquired Funds”). 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 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. 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, 2020 | |
| | | | | |
| | | | | 6 Months* | | | 1 Year | | | 5 Years | | | Fund Inception
(12/31/14) | |
| | PIMCO REALPATH® Blend Income Fund Institutional Class | | | 13.11% | | | | 13.96% | | | | 9.33% | | | | 7.23% | |
| | PIMCO REALPATH® Blend Income Fund Administrative Class | | | 12.97% | | | | 13.70% | | | | 9.09% | | | | 6.98% | |
| | PIMCO REALPATH® Blend Income Fund Class A | | | 12.77% | | | | 13.36% | | | | 8.79% | | | | 6.71% | |
| | PIMCO REALPATH® Blend Income Fund Class A (adjusted) | | | 6.58% | | | | 7.11% | | | | 7.58% | | | | 5.71% | |
| | S&P Target Date Retirement Income Index± | | | 7.79% | | | | 8.81% | | | | 6.50% | | | | 5.35% | |
All Fund returns are net of fees and expenses and include applicable fee waivers and/or expense limitations. Absent any applicable fee waivers and/or expense limitations, performance would have been lower and there can be no assurance that any such waivers or limitations will continue in the future.
* 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 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 0.65% for the Institutional Class shares, 0.90% for the Administrative Class shares, and 1.15% 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.
| | | | |
| Institutional Class - PBRNX | | Administrative Class - PBRDX | | Class A - PBRAX |
Top 10 Holdings as of December 31, 2020†§
| | | | | | | | |
Vanguard Institutional Index Fund ‘Institutional’ | | | | | | | 19.4% | |
PIMCO Income Fund | | | | | | | 17.3% | |
PIMCO Total Return Fund | | | | | | | 14.8% | |
Vanguard Developed Markets Index Fund ‘Institutional’ | | | | | | | 10.3% | |
Vanguard Emerging Markets Stock Index Fund ‘Institutional’ | | | | | | | 7.4% | |
PIMCO Real Return Fund | | | | | | | 6.1% | |
PIMCO Long-Term Real Return Fund | | | | | | | 5.7% | |
PIMCO Emerging Markets Local Currency and Bond Fund | | | | | | | 4.7% | |
PIMCO High Yield Fund | | | | | | | 2.4% | |
PIMCO Long-Term U.S. Government Fund | | | | | | | 2.4% | |
† % 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 (on a gross basis) during the reporting period:
| » | | Exposure to U.S. large market capitalization equities contributed to absolute performance, as U.S. large market capitalization equities posted positive returns. |
| » | | Exposure to developed market ex-U.S. equities contributed to absolute performance, as developed market ex-U.S. equities posted positive returns. |
| » | | Exposure to emerging market equities contributed to absolute performance, as emerging market equities posted positive returns. |
| » | | Exposure to U.S. small market capitalization equities contributed to absolute performance, as U.S. small market capitalization equities posted positive returns. |
| » | | No notable detractors from absolute performance over the period. |
| | | | | | | | | | | | |
| | | | SEMIANNUAL REPORT | | | | | | | DECEMBER 31, 2020 | | | 25 |
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 investment advisory fees, supervisory and administrative 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, 2020 to December 31, 2020 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 investment advisory fees and supervisory and administrative 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
(07/01/20) | | | Ending
Account Value
(12/31/20) | | | Expenses Paid
During Period* | | | | | | Beginning
Account Value
(07/01/20) | | | Ending
Account Value
(12/31/20) | | | Expenses Paid
During Period* | | | | | | Net Annualized
Expense Ratio** | |
| | | | | | | | | | |
PIMCO REALPATH® Blend 2025 Fund | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Institutional Class | | | | | | $ | 1,000.00 | | | $ | 1,149.90 | | | $ | 0.17 | | | | | | | $ | 1,000.00 | | | $ | 1,025.46 | | | $ | 0.16 | | | | | | | | 0.03 | % |
| Administrative Class | | | | | | | 1,000.00 | | | | 1,148.00 | | | | 1.54 | | | | | | | | 1,000.00 | | | | 1,024.18 | | | | 1.45 | | | | | | | | 0.28 | |
| Class A | | | | | | | 1,000.00 | | | | 1,146.80 | | | | 2.91 | | | | | | | | 1,000.00 | | | | 1,022.90 | | | | 2.75 | | | | | | | | 0.53 | |
| | | | | | | | | | |
PIMCO REALPATH® Blend 2030 Fund | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Institutional Class | | | | | | $ | 1,000.00 | | | $ | 1,164.80 | | | $ | 0.22 | | | | | | | $ | 1,000.00 | | | $ | 1,025.41 | | | $ | 0.21 | | | | | | | | 0.04 | % |
| Administrative Class | | | | | | | 1,000.00 | | | | 1,163.80 | | | | 1.61 | | | | | | | | 1,000.00 | | | | 1,024.13 | | | | 1.50 | | | | | | | | 0.29 | |
| Class A | | | | | | | 1,000.00 | | | | 1,163.10 | | | | 2.99 | | | | | | | | 1,000.00 | | | | 1,022.85 | | | | 2.80 | | | | | | | | 0.54 | |
| | | | | | | | | | |
PIMCO REALPATH® Blend 2035 Fund | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Institutional Class | | | | | | $ | 1,000.00 | | | $ | 1,182.40 | | | $ | 0.22 | | | | | | | $ | 1,000.00 | | | $ | 1,025.41 | | | $ | 0.21 | | | | | | | | 0.04 | % |
| Administrative Class | | | | | | | 1,000.00 | | | | 1,180.50 | | | | 1.62 | | | | | | | | 1,000.00 | | | | 1,024.13 | | | | 1.50 | | | | | | | | 0.29 | |
| Class A | | | | | | | 1,000.00 | | | | 1,178.60 | | | | 3.01 | | | | | | | | 1,000.00 | | | | 1,022.85 | | | | 2.80 | | | | | | | | 0.54 | |
| | | | | | | | | | |
PIMCO REALPATH® Blend 2040 Fund | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Institutional Class | | | | | | $ | 1,000.00 | | | $ | 1,195.50 | | | $ | 0.28 | | | | | | | $ | 1,000.00 | | | $ | 1,025.36 | | | $ | 0.26 | | | | | | | | 0.05 | % |
| Administrative Class | | | | | | | 1,000.00 | | | | 1,194.70 | | | | 1.69 | | | | | | | | 1,000.00 | | | | 1,024.08 | | | | 1.56 | | | | | | | | 0.30 | |
| Class A | | | | | | | 1,000.00 | | | | 1,193.80 | | | | 3.09 | | | | | | | | 1,000.00 | | | | 1,022.80 | | | | 2.85 | | | | | | | | 0.55 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | Actual | | | | | | Hypothetical (5% return before expenses) | | | | | | | |
| | | | | | Beginning
Account Value
(07/01/20) | | | Ending
Account Value
(12/31/20) | | | Expenses Paid
During Period* | | | | | | Beginning
Account Value
(07/01/20) | | | Ending
Account Value
(12/31/20) | | | Expenses Paid
During Period* | | | | | | Net Annualized
Expense Ratio** | |
| | | | | | | | | | |
PIMCO REALPATH® Blend 2045 Fund | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Institutional Class | | | | | | $ | 1,000.00 | | | $ | 1,207.10 | | | $ | 0.28 | | | | | | | $ | 1,000.00 | | | $ | 1,025.36 | | | $ | 0.26 | | | | | | | | 0.05 | % |
| Administrative Class | | | | | | | 1,000.00 | | | | 1,204.70 | | | | 1.69 | | | | | | | | 1,000.00 | | | | 1,024.08 | | | | 1.56 | | | | | | | | 0.30 | |
| Class A | | | | | | | 1,000.00 | | | | 1,203.50 | | | | 3.10 | | | | | | | | 1,000.00 | | | | 1,022.80 | | | | 2.85 | | | | | | | | 0.55 | |
| | | | | | | | | | |
PIMCO REALPATH® Blend 2050 Fund | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Institutional Class | | | | | | $ | 1,000.00 | | | $ | 1,211.50 | | | $ | 0.28 | | | | | | | $ | 1,000.00 | | | $ | 1,025.36 | | | $ | 0.26 | | | | | | | | 0.05 | % |
| Administrative Class | | | | | | | 1,000.00 | | | | 1,209.80 | | | | 1.70 | | | | | | | | 1,000.00 | | | | 1,024.08 | | | | 1.56 | | | | | | | | 0.30 | |
| Class A | | | | | | | 1,000.00 | | | | 1,208.40 | | | | 3.11 | | | | | | | | 1,000.00 | | | | 1,022.80 | | | | 2.85 | | | | | | | | 0.55 | |
| | | | | | | | | | |
PIMCO REALPATH® Blend 2055 Fund | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Institutional Class | | | | | | $ | 1,000.00 | | | $ | 1,212.10 | | | $ | 0.34 | | | | | | | $ | 1,000.00 | | | $ | 1,025.31 | | | $ | 0.31 | | | | | | | | 0.06 | % |
| Administrative Class | | | | | | | 1,000.00 | | | | 1,211.00 | | | | 1.76 | | | | | | | | 1,000.00 | | | | 1,024.03 | | | | 1.61 | | | | | | | | 0.31 | |
| Class A | | | | | | | 1,000.00 | | | | 1,209.40 | | | | 3.17 | | | | | | | | 1,000.00 | | | | 1,022.75 | | | | 2.90 | | | | | | | | 0.56 | |
| | | | | | | | | | |
PIMCO REALPATH® Blend 2060 Fund | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Institutional Class | | | | | | $ | 1,000.00 | | | $ | 1,213.00 | | | $ | 0.34 | | | | | | | $ | 1,000.00 | | | $ | 1,025.31 | | | $ | 0.31 | | | | | | | | 0.06 | % |
| Administrative Class | | | | | | | 1,000.00 | | | | 1,211.90 | | | | 1.76 | | | | | | | | 1,000.00 | | | | 1,024.03 | | | | 1.61 | | | | | | | | 0.31 | |
| Class A | | | | | | | 1,000.00 | | | | 1,211.80 | | | | 3.17 | | | | | | | | 1,000.00 | | | | 1,022.75 | | | | 2.90 | | | | | | | | 0.56 | |
| | | | | | | | | | |
PIMCO REALPATH® Blend Income Fund | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Institutional Class | | | | | | $ | 1,000.00 | | | $ | 1,131.10 | | | $ | 0.16 | | | | | | | $ | 1,000.00 | | | $ | 1,025.46 | | | $ | 0.16 | | | | | | | | 0.03 | % |
| Administrative Class | | | | | | | 1,000.00 | | | | 1,129.70 | | | | 1.53 | | | | | | | | 1,000.00 | | | | 1,024.18 | | | | 1.45 | | | | | | | | 0.28 | |
| Class A | | | | | | | 1,000.00 | | | | 1,127.70 | | | | 2.89 | | | | | | | | 1,000.00 | | | | 1,022.90 | | | | 2.75 | | | | | | | | 0.53 | |
* Expenses Paid During Period are equal to the net annualized expense ratio for the class, multiplied by the average account value over the period, multiplied by 187/365 (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.
| | | | | | | | | | | | |
| | | | SEMIANNUAL REPORT | | | | | | | DECEMBER 31, 2020 | | | 27 |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | Investment Operations | | | Less Distributions(c) | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| Selected Per Share Data for the Year or Period Ended^: | | Net Asset Value
Beginning of
Year or Period(a) | | | Net
Investment
Income (Loss)(b) | | | Net Realized/
Unrealized
Gain (Loss) | | | Total | | | From Net
Investment
Income | | | From Net
Realized
Capital
Gains | | | Tax Basis
Return of
Capital | | | Total | |
| | | | | | | | |
PIMCO REALPATH® Blend 2025 Fund | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Institutional Class | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | |
07/01/2020 - 12/31/2020+ | | $ | 11.71 | | | $ | 0.26 | | | $ | 1.49 | | | $ | 1.75 | | | $ | (0.34 | ) | | $ | (0.17 | ) | | $ | 0.00 | | | $ | (0.51 | ) |
| | | | | | | | |
06/30/2020 | | | 11.33 | | | | 0.36 | | | | 0.36 | | | | 0.72 | | | | (0.34 | ) | | | 0.00 | | | | 0.00 | | | | (0.34 | ) |
| | | | | | | | |
06/30/2019 | | | 11.15 | | | | 0.36 | | | | 0.32 | | | | 0.68 | | | | (0.32 | ) | | | (0.18 | ) | | | 0.00 | | | | (0.50 | ) |
| | | | | | | | |
06/30/2018 | | | 10.63 | | | | 0.31 | | | | 0.43 | | | | 0.74 | | | | (0.22 | ) | | | 0.00 | | | | 0.00 | | | | (0.22 | ) |
| | | | | | | | |
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 | ) |
| Administrative Class | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | |
07/01/2020 - 12/31/2020+ | | | 11.69 | | | | 0.22 | | | | 1.51 | | | | 1.73 | | | | (0.33 | ) | | | (0.17 | ) | | | 0.00 | | | | (0.50 | ) |
| | | | | | | | |
06/30/2020 | | | 11.31 | | | | 0.34 | | | | 0.36 | | | | 0.70 | | | | (0.32 | ) | | | 0.00 | | | | 0.00 | | | | (0.32 | ) |
| | | | | | | | |
06/30/2019 | | | 11.13 | | | | 0.32 | | | | 0.34 | | | | 0.66 | | | | (0.30 | ) | | | (0.18 | ) | | | 0.00 | | | | (0.48 | ) |
| | | | | | | | |
06/30/2018 | | | 10.62 | | | | 0.33 | | | | 0.38 | | | | 0.71 | | | | (0.20 | ) | | | 0.00 | | | | 0.00 | | | | (0.20 | ) |
| | | | | | | | |
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 | ) |
| Class A | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | |
07/01/2020 - 12/31/2020+ | | | 11.68 | | | | 0.21 | | | | 1.50 | | | | 1.71 | | | | (0.31 | ) | | | (0.17 | ) | | | 0.00 | | | | (0.48 | ) |
| | | | | | | | |
06/30/2020 | | | 11.31 | | | | 0.31 | | | | 0.35 | | | | 0.66 | | | | (0.29 | ) | | | 0.00 | | | | 0.00 | | | | (0.29 | ) |
| | | | | | | | |
06/30/2019 | | | 11.13 | | | | 0.29 | | | | 0.34 | | | | 0.63 | | | | (0.27 | ) | | | (0.18 | ) | | | 0.00 | | | | (0.45 | ) |
| | | | | | | | |
06/30/2018 | | | 10.62 | | | | 0.25 | | | | 0.43 | | | | 0.68 | | | | (0.17 | ) | | | 0.00 | | | | 0.00 | | | | (0.17 | ) |
| | | | | | | | |
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 | ) |
| | | | | | | | |
PIMCO REALPATH® Blend 2030 Fund | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Institutional Class | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | |
07/01/2020 - 12/31/2020+ | | $ | 11.76 | | | $ | 0.24 | | | $ | 1.71 | | | $ | 1.95 | | | $ | (0.26 | ) | | $ | (0.15 | ) | | $ | 0.00 | | | $ | (0.41 | ) |
| | | | | | | | |
06/30/2020 | | | 11.54 | | | | 0.35 | | | | 0.22 | | | | 0.57 | | | | (0.33 | ) | | | (0.02 | ) | | | 0.00 | | | | (0.35 | ) |
| | | | | | | | |
06/30/2019 | | | 11.39 | | | | 0.34 | | | | 0.39 | | | | 0.73 | | | | (0.32 | ) | | | (0.26 | ) | | | 0.00 | | | | (0.58 | ) |
| | | | | | | | |
06/30/2018 | | | 10.81 | | | | 0.30 | | | | 0.54 | | | | 0.84 | | | | (0.24 | ) | | | (0.02 | ) | | | 0.00 | | | | (0.26 | ) |
| | | | | | | | |
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 | ) |
| Administrative Class | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | |
07/01/2020 - 12/31/2020+ | | | 11.75 | | | | 0.20 | | | | 1.72 | | | | 1.92 | | | | (0.24 | ) | | | (0.15 | ) | | | 0.00 | | | | (0.39 | ) |
| | | | | | | | |
06/30/2020 | | | 11.52 | | | | 0.33 | | | | 0.22 | | | | 0.55 | | | | (0.30 | ) | | | (0.02 | ) | | | 0.00 | | | | (0.32 | ) |
| | | | | | | | |
06/30/2019 | | | 11.38 | | | | 0.30 | | | | 0.39 | | | | 0.69 | | | | (0.29 | ) | | | (0.26 | ) | | | 0.00 | | | | (0.55 | ) |
| | | | | | | | |
06/30/2018 | | | 10.80 | | | | 0.32 | | | | 0.50 | | | | 0.82 | | | | (0.22 | ) | | | (0.02 | ) | | | 0.00 | | | | (0.24 | ) |
| | | | | | | | |
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 | ) |
| Class A | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | |
07/01/2020 - 12/31/2020+ | | | 11.71 | | | | 0.19 | | | | 1.72 | | | | 1.91 | | | | (0.23 | ) | | | (0.15 | ) | | | 0.00 | | | | (0.38 | ) |
| | | | | | | | |
06/30/2020 | | | 11.50 | | | | 0.29 | | | | 0.22 | | | | 0.51 | | | | (0.28 | ) | | | (0.02 | ) | | | 0.00 | | | | (0.30 | ) |
| | | | | | | | |
06/30/2019 | | | 11.36 | | | | 0.28 | | | | 0.39 | | | | 0.67 | | | | (0.27 | ) | | | (0.26 | ) | | | 0.00 | | | | (0.53 | ) |
| | | | | | | | |
06/30/2018 | | | 10.78 | | | | 0.25 | | | | 0.54 | | | | 0.79 | | | | (0.19 | ) | | | (0.02 | ) | | | 0.00 | | | | (0.21 | ) |
| | | | | | | | |
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 | ) |
| | | | | | | | |
PIMCO REALPATH® Blend 2035 Fund | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Institutional Class | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | |
07/01/2020 - 12/31/2020+ | | $ | 11.65 | | | $ | 0.21 | | | $ | 1.90 | | | $ | 2.11 | | | $ | (0.17 | ) | | $ | (0.09 | ) | | $ | 0.00 | | | $ | (0.26 | ) |
| | | | | | | | |
06/30/2020 | | | 11.58 | | | | 0.33 | | | | 0.08 | | | | 0.41 | | | | (0.32 | ) | | | (0.02 | ) | | | 0.00 | | | | (0.34 | ) |
| | | | | | | | |
06/30/2019 | | | 11.58 | | | | 0.33 | | | | 0.38 | | | | 0.71 | | | | (0.32 | ) | | | (0.39 | ) | | | 0.00 | | | | (0.71 | ) |
| | | | | | | | |
06/30/2018 | | | 10.91 | | | | 0.29 | | | | 0.64 | | | | 0.93 | | | | (0.26 | ) | | | 0.00 | | | | 0.00 | | | | (0.26 | ) |
| | | | | | | | |
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 | ) |
| Administrative Class | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | |
07/01/2020 - 12/31/2020+ | | | 11.63 | | | | 0.17 | | | | 1.92 | | | | 2.09 | | | | (0.15 | ) | | | (0.09 | ) | | | 0.00 | | | | (0.24 | ) |
| | | | | | | | |
06/30/2020 | | | 11.57 | | | | 0.31 | | | | 0.06 | | | | 0.37 | | | | (0.29 | ) | | | (0.02 | ) | | | 0.00 | | | | (0.31 | ) |
| | | | | | | | |
06/30/2019 | | | 11.57 | | | | 0.29 | | | | 0.39 | | | | 0.68 | | | | (0.29 | ) | | | (0.39 | ) | | | 0.00 | | | | (0.68 | ) |
| | | | | | | | |
06/30/2018 | | | 10.91 | | | | 0.31 | | | | 0.59 | | | | 0.90 | | | | (0.24 | ) | | | 0.00 | | | | 0.00 | | | | (0.24 | ) |
| | | | | | | | |
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 | ) |
| Class A | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | |
07/01/2020 - 12/31/2020+ | | | 11.67 | | | | 0.16 | | | | 1.92 | | | | 2.08 | | | | (0.14 | ) | | | (0.09 | ) | | | 0.00 | | | | (0.23 | ) |
| | | | | | | | |
06/30/2020 | | | 11.61 | | | | 0.27 | | | | 0.08 | | | | 0.35 | | | | (0.27 | ) | | | (0.02 | ) | | | 0.00 | | | | (0.29 | ) |
| | | | | | | | |
06/30/2019 | | | 11.61 | | | | 0.26 | | | | 0.39 | | | | 0.65 | | | | (0.26 | ) | | | (0.39 | ) | | | 0.00 | | | | (0.65 | ) |
| | | | | | | | |
06/30/2018 | | | 10.94 | | | | 0.24 | | | | 0.64 | | | | 0.88 | | | | (0.21 | ) | | | 0.00 | | | | 0.00 | | | | (0.21 | ) |
| | | | | | | | |
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 | ) |
| | | | | | |
| 28 | | PIMCO EQUITY SERIES | | | See Accompanying Notes | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | Ratios/Supplemental Data | |
| | | | | | | | | | Ratios to Average Net Assets(d) | | | | |
Net Asset
Value End of
Year or Period(a) | | | Total
Return(a) | | | 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 | |
| | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | |
| $ | 12.95 | | | | 14.99 | % | | $ | 172,379 | | | | 0.03 | %* | | | 0.04 | %* | | | 0.03 | %* | | | 0.04 | %* | | | 4.08 | %* | | | 2 | % |
| | | | | | | | |
| | 11.71 | | | | 6.41 | | | | 80,067 | | | | 0.04 | | | | 0.05 | | | | 0.04 | | | | 0.05 | | | | 3.18 | | | | 39 | |
| | | | | | | | |
| | 11.33 | | | | 6.53 | | | | 31,946 | | | | 0.04 | | | | 0.05 | | | | 0.04 | | | | 0.05 | | | | 3.26 | | | | 47 | |
| | | | | | | | |
| | 11.15 | | | | 6.92 | | | | 6,824 | | | | 0.04 | | | | 0.04 | | | | 0.04 | | | | 0.04 | | | | 2.75 | | | | 75 | |
| | | | | | | | |
| | 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 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | |
| | 12.92 | | | | 14.80 | | | | 28,862 | | | | 0.28 | * | | | 0.29 | * | | | 0.28 | * | | | 0.29 | * | | | 3.41 | * | | | 2 | |
| | | | | | | | |
| | 11.69 | | | | 6.19 | | | | 28,587 | | | | 0.29 | | | | 0.30 | | | | 0.29 | | | | 0.30 | | | | 2.99 | | | | 39 | |
| | | | | | | | |
| | 11.31 | | | | 6.29 | | | | 21,086 | | | | 0.29 | | | | 0.30 | | | | 0.29 | | | | 0.30 | | | | 2.88 | | | | 47 | |
| | | | | | | | |
| | 11.13 | | | | 6.65 | | | | 19,661 | | | | 0.29 | | | | 0.29 | | | | 0.29 | | | | 0.29 | | | | 2.90 | | | | 75 | |
| | | | | | | | |
| | 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 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | |
| | 12.91 | | | | 14.68 | | | | 7,708 | | | | 0.53 | * | | | 0.54 | * | | | 0.53 | * | | | 0.54 | * | | | 3.23 | * | | | 2 | |
| | | | | | | | |
| | 11.68 | | | | 5.88 | | | | 6,420 | | | | 0.54 | | | | 0.55 | | | | 0.54 | | | | 0.55 | | | | 2.68 | | | | 39 | |
| | | | | | | | |
| | 11.31 | | | | 6.03 | | | | 5,462 | | | | 0.54 | | | | 0.55 | | | | 0.54 | | | | 0.55 | | | | 2.63 | | | | 47 | |
| | | | | | | | |
| | 11.13 | | | | 6.36 | | | | 5,078 | | | | 0.54 | | | | 0.54 | | | | 0.54 | | | | 0.54 | | | | 2.30 | | | | 75 | |
| | | | | | | | |
| | 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 | |
| | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | |
| $ | 13.30 | | | | 16.58 | % | | $ | 193,750 | | | | 0.04 | %* | | | 0.04 | %* | | | 0.04 | %* | | | 0.04 | %* | | | 3.61 | %* | | | 8 | % |
| | | | | | | | |
| | 11.76 | | | | 4.89 | | | | 105,414 | | | | 0.05 | | | | 0.06 | | | | 0.05 | | | | 0.06 | | | | 3.00 | | | | 28 | |
| | | | | | | | |
| | 11.54 | | | | 6.84 | | | | 52,133 | | | | 0.05 | | | | 0.06 | | | | 0.05 | | | | 0.06 | | | | 3.08 | | | | 40 | |
| | | | | | | | |
| | 11.39 | | | | 7.81 | | | | 13,974 | | | | 0.05 | | | | 0.05 | | | | 0.05 | | | | 0.05 | | | | 2.63 | | | | 98 | |
| | | | | | | | |
| | 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 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | |
| | 13.28 | | | | 16.38 | | | | 32,007 | | | | 0.29 | * | | | 0.29 | * | | | 0.29 | * | | | 0.29 | * | | | 3.07 | * | | | 8 | |
| | | | | | | | |
| | 11.75 | | | | 4.76 | | | | 27,583 | | | | 0.30 | | | | 0.31 | | | | 0.30 | | | | 0.31 | | | | 2.81 | | | | 28 | |
| | | | | | | | |
| | 11.52 | | | | 6.50 | | | | 21,469 | | | | 0.30 | | | | 0.31 | | | | 0.30 | | | | 0.31 | | | | 2.71 | | | | 40 | |
| | | | | | | | |
| | 11.38 | | | | 7.64 | | | | 20,114 | | | | 0.30 | | | | 0.30 | | | | 0.30 | | | | 0.30 | | | | 2.77 | | | | 98 | |
| | | | | | | | |
| | 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 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | |
| | 13.24 | | | | 16.31 | | | | 7,733 | | | | 0.54 | * | | | 0.54 | * | | | 0.54 | * | | | 0.54 | * | | | 2.87 | * | | | 8 | |
| | | | | | | | |
| | 11.71 | | | | 4.41 | | | | 6,494 | | | | 0.55 | | | | 0.56 | | | | 0.55 | | | | 0.56 | | | | 2.50 | | | | 28 | |
| | | | | | | | |
| | 11.50 | | | | 6.28 | | | | 5,774 | | | | 0.55 | | | | 0.56 | | | | 0.55 | | | | 0.56 | | | | 2.52 | | | | 40 | |
| | | | | | | | |
| | 11.36 | | | | 7.36 | | | | 4,169 | | | | 0.55 | | | | 0.55 | | | | 0.55 | | | | 0.55 | | | | 2.20 | | | | 98 | |
| | | | | | | | |
| | 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 | |
| | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | |
| $ | 13.50 | | | | 18.15 | % | | $ | 156,279 | | | | 0.04 | %* | | | 0.05 | %* | | | 0.04 | %* | | | 0.05 | %* | | | 3.21 | %* | | | 0 | % |
| | | | | | | | |
| | 11.65 | | | | 3.47 | | | | 76,525 | | | | 0.06 | | | | 0.07 | | | | 0.06 | | | | 0.07 | | | | 2.85 | | | | 34 | |
| | | | | | | | |
| | 11.58 | | | | 6.67 | | | | 42,033 | | | | 0.06 | | | | 0.07 | | | | 0.06 | | | | 0.07 | | | | 2.94 | | | | 24 | |
| | | | | | | | |
| | 11.58 | | | | 8.56 | | | | 16,958 | | | | 0.06 | | | | 0.07 | | | | 0.06 | | | | 0.07 | | | | 2.52 | | | | 101 | |
| | | | | | | | |
| | 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 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | |
| | 13.48 | | | | 18.05 | | | | 25,795 | | | | 0.29 | * | | | 0.30 | * | | | 0.29 | * | | | 0.30 | * | | | 2.69 | * | | | 0 | |
| | | | | | | | |
| | 11.63 | | | | 3.15 | | | | 22,984 | | | | 0.31 | | | | 0.32 | | | | 0.31 | | | | 0.32 | | | | 2.66 | | | | 34 | |
| | | | | | | | |
| | 11.57 | | | | 6.43 | | | | 18,672 | | | | 0.31 | | | | 0.32 | | | | 0.31 | | | | 0.32 | | | | 2.58 | | | | 24 | |
| | | | | | | | |
| | 11.57 | | | | 8.29 | | | | 17,270 | | | | 0.31 | | | | 0.32 | | | | 0.31 | | | | 0.32 | | | | 2.69 | | | | 101 | |
| | | | | | | | |
| | 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 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | |
| | 13.52 | | | | 17.86 | | | | 7,184 | | | | 0.54 | * | | | 0.55 | * | | | 0.54 | * | | | 0.55 | * | | | 2.45 | * | | | 0 | |
| | | | | | | | |
| | 11.67 | | | | 2.95 | | | | 6,109 | | | | 0.56 | | | | 0.57 | | | | 0.56 | | | | 0.57 | | | | 2.36 | | | | 34 | |
| | | | | | | | |
| | 11.61 | | | | 6.15 | | | | 5,062 | | | | 0.56 | | | | 0.57 | | | | 0.56 | | | | 0.57 | | | | 2.33 | | | | 24 | |
| | | | | | | | |
| | 11.61 | | | | 8.06 | | | | 4,330 | | | | 0.56 | | | | 0.57 | | | | 0.56 | | | | 0.57 | | | | 2.10 | | | | 101 | |
| | | | | | | | |
| | 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 | |
| | | | | | | | | | | | |
| | | | SEMIANNUAL REPORT | | | | | | | DECEMBER 31, 2020 | | | 29 |
| | | | |
| Financial Highlights (Cont.) | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | Investment Operations | | | Less Distributions(c) | |
| | |
| Selected Per Share Data for the Year or Period Ended^: | | Net Asset Value
Beginning of
Year or Period(a) | | | Net
Investment
Income (Loss)(b) | | | Net Realized/
Unrealized
Gain (Loss) | | | Total | | | From Net
Investment
Income | | | From Net
Realized
Capital
Gains | | | Tax Basis
Return of
Capital | | | Total | |
| | | | | | | | |
PIMCO REALPATH® Blend 2040 Fund | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | |
Institutional Class | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | |
07/01/2020 - 12/31/2020+ | | $ | 11.68 | | | $ | 0.19 | | | $ | 2.09 | | | $ | 2.28 | | | $ | (0.15 | ) | | $ | (0.07 | ) | | $ | 0.00 | | | $ | (0.22 | ) |
| | | | | | | | |
06/30/2020 | | | 11.71 | | | | 0.31 | | | | 0.02 | | | | 0.33 | | | | (0.34 | ) | | | (0.02 | ) | | | 0.00 | | | | (0.36 | ) |
| | | | | | | | |
06/30/2019 | | | 11.71 | | | | 0.32 | | | | 0.38 | | | | 0.70 | | | | (0.31 | ) | | | (0.39 | ) | | | 0.00 | | | | (0.70 | ) |
| | | | | | | | |
06/30/2018 | | | 11.00 | | | | 0.29 | | | | 0.71 | | | | 1.00 | | | | (0.27 | ) | | | (0.02 | ) | | | 0.00 | | | | (0.29 | ) |
| | | | | | | | |
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 | ) |
| | | | | | | | |
Administrative Class | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | |
07/01/2020 - 12/31/2020+ | | | 11.65 | | | | 0.16 | | | | 2.10 | | | | 2.26 | | | | (0.13 | ) | | | (0.07 | ) | | | 0.00 | | | | (0.20 | ) |
| | | | | | | | |
06/30/2020 | | | 11.69 | | | | 0.29 | | | | 0.01 | | | | 0.30 | | | | (0.32 | ) | | | (0.02 | ) | | | 0.00 | | | | (0.34 | ) |
| | | | | | | | |
06/30/2019 | | | 11.69 | | | | 0.28 | | | | 0.39 | | | | 0.67 | | | | (0.28 | ) | | | (0.39 | ) | | | 0.00 | | | | (0.67 | ) |
| | | | | | | | |
06/30/2018 | | | 10.99 | | | | 0.31 | | | | 0.66 | | | | 0.97 | | | | (0.25 | ) | | | (0.02 | ) | | | 0.00 | | | | (0.27 | ) |
| | | | | | | | |
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 | ) |
| | | | | | | | |
Class A | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | |
07/01/2020 - 12/31/2020+ | | | 11.62 | | | | 0.14 | | | | 2.10 | | | | 2.24 | | | | (0.12 | ) | | | (0.07 | ) | | | 0.00 | | | | (0.19 | ) |
| | | | | | | | |
06/30/2020 | | | 11.67 | | | | 0.26 | | | | 0.00 | | | | 0.26 | | | | (0.29 | ) | | | (0.02 | ) | | | 0.00 | | | | (0.31 | ) |
| | | | | | | | |
06/30/2019 | | | 11.67 | | | | 0.26 | | | | 0.38 | | | | 0.64 | | | | (0.25 | ) | | | (0.39 | ) | | | 0.00 | | | | (0.64 | ) |
| | | | | | | | |
06/30/2018 | | | 10.98 | | | | 0.23 | | | | 0.70 | | | | 0.93 | | | | (0.22 | ) | | | (0.02 | ) | | | 0.00 | | | | (0.24 | ) |
| | | | | | | | |
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 | ) |
| | | | | | | | |
PIMCO REALPATH® Blend 2045 Fund | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | |
Institutional Class | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | |
07/01/2020 - 12/31/2020+ | | $ | 11.58 | | | $ | 0.18 | | | $ | 2.21 | | | $ | 2.39 | | | $ | (0.10 | ) | | $ | (0.07 | ) | | $ | 0.00 | | | $ | (0.17 | ) |
| | | | | | | | |
06/30/2020 | | | 11.67 | | | | 0.30 | | | | (0.04 | ) | | | 0.26 | | | | (0.33 | ) | | | (0.02 | ) | | | 0.00 | | | | (0.35 | ) |
| | | | | | | | |
06/30/2019 | | | 11.79 | | | | 0.31 | | | | 0.37 | | | | 0.68 | | | | (0.32 | ) | | | (0.48 | ) | | | 0.00 | | | | (0.80 | ) |
| | | | | | | | |
06/30/2018 | | | 11.00 | | | | 0.28 | | | | 0.77 | | | | 1.05 | | | | (0.26 | ) | | | 0.00 | | | | 0.00 | | | | (0.26 | ) |
| | | | | | | | |
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 | ) |
| | | | | | | | |
Administrative Class | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | |
07/01/2020 - 12/31/2020+ | | | 11.55 | | | | 0.15 | | | | 2.21 | | | | 2.36 | | | | (0.08 | ) | | | (0.07 | ) | | | 0.00 | | | | (0.15 | ) |
| | | | | | | | |
06/30/2020 | | | 11.65 | | | | 0.28 | | | | (0.06 | ) | | | 0.22 | | | | (0.30 | ) | | | (0.02 | ) | | | 0.00 | | | | (0.32 | ) |
| | | | | | | | |
06/30/2019 | | | 11.77 | | | | 0.27 | | | | 0.39 | | | | 0.66 | | | | (0.30 | ) | | | (0.48 | ) | | | 0.00 | | | | (0.78 | ) |
| | | | | | | | |
06/30/2018 | | | 10.99 | | | | 0.31 | | | | 0.71 | | | | 1.02 | | | | (0.24 | ) | | | 0.00 | | | | 0.00 | | | | (0.24 | ) |
| | | | | | | | |
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 | ) |
| | | | | | | | |
Class A | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | |
07/01/2020 - 12/31/2020+ | | | 11.54 | | | | 0.13 | | | | 2.22 | | | | 2.35 | | | | (0.07 | ) | | | (0.07 | ) | | | 0.00 | | | | (0.14 | ) |
| | | | | | | | |
06/30/2020 | | | 11.64 | | | | 0.24 | | | | (0.04 | ) | | | 0.20 | | | | (0.28 | ) | | | (0.02 | ) | | | 0.00 | | | | (0.30 | ) |
| | | | | | | | |
06/30/2019 | | | 11.77 | | | | 0.25 | | | | 0.37 | | | | 0.62 | | | | (0.27 | ) | | | (0.48 | ) | | | 0.00 | | | | (0.75 | ) |
| | | | | | | | |
06/30/2018 | | | 10.99 | | | | 0.22 | | | | 0.77 | | | | 0.99 | | | | (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 | ) |
| | | | | | |
| 30 | | PIMCO EQUITY SERIES | | | See Accompanying Notes | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | Ratios/Supplemental Data | |
| | | | | | | | | | Ratios to Average Net Assets(d) | | | | |
Net Asset
Value End of
Year or Period(a) | | | Total
Return(a) | | | 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 | |
| | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | |
| $ | 13.74 | | | | 19.55 | % | | $ | 171,219 | | | | 0.05 | %* | | | 0.06 | %* | | | 0.05 | %* | | | 0.06 | %* | | | 2.91 | %* | | | 6 | % |
| | | | | | | | |
| | 11.68 | | | | 2.76 | | | | 92,728 | | | | 0.06 | | | | 0.07 | | | | 0.06 | | | | 0.07 | | | | 2.70 | | | | 21 | |
| | | | | | | | |
| | 11.71 | | | | 6.44 | | | | 64,541 | | | | 0.06 | | | | 0.07 | | | | 0.06 | | | | 0.07 | | | | 2.81 | | | | 29 | |
| | | | | | | | |
| | 11.71 | | | | 9.17 | | | | 26,413 | | | | 0.06 | | | | 0.07 | | | | 0.06 | | | | 0.07 | | | | 2.50 | | | | 95 | |
| | | | | | | | |
| | 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 | |
| | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | |
| | 13.71 | | | | 19.47 | | | | 19,910 | | | | 0.30 | * | | | 0.31 | * | | | 0.30 | * | | | 0.31 | * | | | 2.40 | * | | | 6 | |
| | | | | | | | |
| | 11.65 | | | | 2.45 | | | | 16,746 | | | | 0.31 | | | | 0.32 | | | | 0.31 | | | | 0.32 | | | | 2.52 | | | | 21 | |
| | | | | | | | |
| | 11.69 | | | | 6.21 | | | | 12,386 | | | | 0.31 | | | | 0.32 | | | | 0.31 | | | | 0.32 | | | | 2.48 | | | | 29 | |
| | | | | | | | |
| | 11.69 | | | | 8.90 | | | | 11,003 | | | | 0.31 | | | | 0.32 | | | | 0.31 | | | | 0.32 | | | | 2.66 | | | | 95 | |
| | | | | | | | |
| | 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 | |
| | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | |
| | 13.67 | | | | 19.29 | | | | 8,637 | | | | 0.55 | * | | | 0.56 | * | | | 0.55 | * | | | 0.56 | * | | | 2.13 | * | | | 6 | |
| | | | | | | | |
| | 11.62 | | | | 2.17 | | | | 7,914 | | | | 0.56 | | | | 0.57 | | | | 0.56 | | | | 0.57 | | | | 2.22 | | | | 21 | |
| | | | | | | | |
| | 11.67 | | | | 5.99 | | | | 7,869 | | | | 0.56 | | | | 0.57 | | | | 0.56 | | | | 0.57 | | | | 2.28 | | | | 29 | |
| | | | | | | | |
| | 11.67 | | | | 8.52 | | | | 5,484 | | | | 0.56 | | | | 0.57 | | | | 0.56 | | | | 0.57 | | | | 2.03 | | | | 95 | |
| | | | | | | | |
| | 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 | |
| | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | |
| $ | 13.80 | | | | 20.63 | % | | $ | 157,082 | | | | 0.05 | %* | | | 0.06 | %* | | | 0.05 | %* | | | 0.06 | %* | | | 2.68 | %* | | | 4 | % |
| | | | | | | | |
| | 11.58 | | | | 2.16 | | | | 91,173 | | | | 0.06 | | | | 0.07 | | | | 0.06 | | | | 0.07 | | | | 2.59 | | | | 16 | |
| | | | | | | | |
| | 11.67 | | | | 6.45 | | | | 69,426 | | | | 0.06 | | | | 0.07 | | | | 0.06 | | | | 0.07 | | | | 2.70 | | | | 16 | |
| | | | | | | | |
| | 11.79 | | | | 9.57 | | | | 41,708 | | | | 0.06 | | | | 0.07 | | | | 0.06 | | | | 0.07 | | | | 2.43 | | | | 105 | |
| | | | | | | | |
| | 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 | |
| | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | |
| | 13.76 | | | | 20.47 | | | | 17,993 | | | | 0.30 | * | | | 0.31 | * | | | 0.30 | * | | | 0.31 | * | | | 2.28 | * | | | 4 | |
| | | | | | | | |
| | 11.55 | | | | 1.85 | | | | 14,426 | | | | 0.31 | | | | 0.32 | | | | 0.31 | | | | 0.32 | | | | 2.41 | | | | 16 | |
| | | | | | | | |
| | 11.65 | | | | 6.21 | | | | 10,935 | | | | 0.31 | | | | 0.32 | | | | 0.31 | | | | 0.32 | | | | 2.38 | | | | 16 | |
| | | | | | | | |
| | 11.77 | | | | 9.31 | | | | 10,287 | | | | 0.31 | | | | 0.32 | | | | 0.31 | | | | 0.32 | | | | 2.58 | | | | 105 | |
| | | | | | | | |
| | 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 | |
| | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | |
| | 13.75 | | | | 20.35 | | | | 4,031 | | | | 0.55 | * | | | 0.56 | * | | | 0.55 | * | | | 0.56 | * | | | 1.96 | * | | | 4 | |
| | | | | | | | |
| | 11.54 | | | | 1.64 | | | | 3,658 | | | | 0.56 | | | | 0.57 | | | | 0.56 | | | | 0.57 | | | | 2.08 | | | | 16 | |
| | | | | | | | |
| | 11.64 | | | | 5.88 | | | | 4,280 | | | | 0.56 | | | | 0.57 | | | | 0.56 | | | | 0.57 | | | | 2.15 | | | | 16 | |
| | | | | | | | |
| | 11.77 | | | | 9.01 | | | | 3,569 | | | | 0.56 | | | | 0.57 | | | | 0.56 | | | | 0.57 | | | | 1.93 | | | | 105 | |
| | | | | | | | |
| | 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 | |
| | | | | | | | | | | | |
| | | | SEMIANNUAL REPORT | | | | | | | DECEMBER 31, 2020 | | | 31 |
| | | | |
| Financial Highlights (Cont.) | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | Investment Operations | | | Less Distributions(c) | |
| | |
| Selected Per Share Data for the Year or Period Ended^: | | Net Asset Value
Beginning of
Year or Period(a) | | | Net
Investment
Income (Loss)(b) | | | Net Realized/
Unrealized
Gain (Loss) | | | Total | | | From Net
Investment
Income | | | From Net
Realized
Capital
Gains | | | Tax Basis
Return of
Capital | | | Total | |
| | | | | | | | |
PIMCO REALPATH® Blend 2050 Fund | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | |
Institutional Class | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | |
07/01/2020 - 12/31/2020+ | | $ | 11.59 | | | $ | 0.17 | | | $ | 2.27 | | | $ | 2.44 | | | $ | (0.08 | ) | | $ | (0.07 | ) | | $ | 0.00 | | | $ | (0.15 | ) |
| | | | | | | | |
06/30/2020 | | | 11.74 | | | | 0.29 | | | | (0.08 | ) | | | 0.21 | | | | (0.34 | ) | | | (0.02 | ) | | | 0.00 | | | | (0.36 | ) |
| | | | | | | | |
06/30/2019 | | | 11.86 | | | | 0.30 | | | | 0.39 | | | | 0.69 | | | | (0.31 | ) | | | (0.50 | ) | | | 0.00 | | | | (0.81 | ) |
| | | | | | | | |
06/30/2018 | | | 11.05 | | | | 0.28 | | | | 0.79 | | | | 1.07 | | | | (0.26 | ) | | | 0.00 | | | | 0.00 | | | | (0.26 | ) |
| | | | | | | | |
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 | ) |
| | | | | | | | |
Administrative Class | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | |
07/01/2020 - 12/31/2020+ | | | 11.56 | | | | 0.14 | | | | 2.28 | | | | 2.42 | | | | (0.06 | ) | | | (0.07 | ) | | | 0.00 | | | | (0.13 | ) |
| | | | | | | | |
06/30/2020 | | | 11.71 | | | | 0.27 | | | | (0.09 | ) | | | 0.18 | | | | (0.31 | ) | | | (0.02 | ) | | | 0.00 | | | | (0.33 | ) |
| | | | | | | | |
06/30/2019 | | | 11.84 | | | | 0.27 | | | | 0.39 | | | | 0.66 | | | | (0.29 | ) | | | (0.50 | ) | | | 0.00 | | | | (0.79 | ) |
| | | | | | | | |
06/30/2018 | | | 11.04 | | | | 0.31 | | | | 0.73 | | | | 1.04 | | | | (0.24 | ) | | | 0.00 | | | | 0.00 | | | | (0.24 | ) |
| | | | | | | | |
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 | ) |
| | | | | | | | |
Class A | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | |
07/01/2020 - 12/31/2020+ | | | 11.51 | | | | 0.12 | | | | 2.28 | | | | 2.40 | | | | (0.05 | ) | | | (0.07 | ) | | | 0.00 | | | | (0.12 | ) |
| | | | | | | | |
06/30/2020 | | | 11.67 | | | | 0.23 | | | | (0.08 | ) | | | 0.15 | | | | (0.29 | ) | | | (0.02 | ) | | | 0.00 | | | | (0.31 | ) |
| | | | | | | | |
06/30/2019 | | | 11.80 | | | | 0.24 | | | | 0.39 | | | | 0.63 | | | | (0.26 | ) | | | (0.50 | ) | | | 0.00 | | | | (0.76 | ) |
| | | | | | | | |
06/30/2018 | | | 11.00 | | | | 0.22 | | | | 0.79 | | | | 1.01 | | | | (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 | ) |
| | | | | | | | |
PIMCO REALPATH® Blend 2055 Fund | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | |
Institutional Class | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | |
07/01/2020 - 12/31/2020+ | | $ | 11.59 | | | $ | 0.17 | | | $ | 2.28 | | | $ | 2.45 | | | $ | (0.07 | ) | | $ | (0.04 | ) | | $ | 0.00 | | | $ | (0.11 | ) |
| | | | | | | | |
06/30/2020 | | | 11.79 | | | | 0.29 | | | | (0.12 | ) | | | 0.17 | | | | (0.36 | ) | | | (0.01 | ) | | | 0.00 | | | | (0.37 | ) |
| | | | | | | | |
06/30/2019 | | | 11.74 | | | | 0.31 | | | | 0.37 | | | | 0.68 | | | | (0.21 | ) | | | (0.42 | ) | | | 0.00 | | | | (0.63 | ) |
| | | | | | | | |
06/30/2018 | | | 11.02 | | | | 0.28 | | | | 0.77 | | | | 1.05 | | | | (0.33 | ) | | | 0.00 | | | | 0.00 | | | | (0.33 | ) |
| | | | | | | | |
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 | ) |
| | | | | | | | |
Administrative Class | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | |
07/01/2020 - 12/31/2020+ | | | 11.58 | | | | 0.14 | | | | 2.29 | | | | 2.43 | | | | (0.06 | ) | | | (0.04 | ) | | | 0.00 | | | | (0.10 | ) |
| | | | | | | | |
06/30/2020 | | | 11.78 | | | | 0.28 | | | | (0.13 | ) | | | 0.15 | | | | (0.34 | ) | | | (0.01 | ) | | | 0.00 | | | | (0.35 | ) |
| | | | | | | | |
06/30/2019 | | | 11.75 | | | | 0.29 | | | | 0.35 | | | | 0.64 | | | | (0.19 | ) | | | (0.42 | ) | | | 0.00 | | �� | | (0.61 | ) |
| | | | | | | | |
06/30/2018 | | | 11.03 | | | | 0.30 | | | | 0.73 | | | | 1.03 | | | | (0.31 | ) | | | 0.00 | | | | 0.00 | | | | (0.31 | ) |
| | | | | | | | |
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 | ) |
| | | | | | | | |
Class A | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | |
07/01/2020 - 12/31/2020+ | | | 11.53 | | | | 0.11 | | | | 2.29 | | | | 2.40 | | | | (0.04 | ) | | | (0.04 | ) | | | 0.00 | | | | (0.08 | ) |
| | | | | | | | |
06/30/2020 | | | 11.73 | | | | 0.23 | | | | (0.12 | ) | | | 0.11 | | | | (0.30 | ) | | | (0.01 | ) | | | 0.00 | | | | (0.31 | ) |
| | | | | | | | |
06/30/2019 | | | 11.69 | | | | 0.24 | | | | 0.38 | | | | 0.62 | | | | (0.16 | ) | | | (0.42 | ) | | | 0.00 | | | | (0.58 | ) |
| | | | | | | | |
06/30/2018 | | | 10.98 | | | | 0.21 | | | | 0.78 | | | | 0.99 | | | | (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 | ) |
| | | | | | |
| 32 | | PIMCO EQUITY SERIES | | | See Accompanying Notes | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | Ratios/Supplemental Data | |
| | | | | | | | | | Ratios to Average Net Assets(d) | | | | |
Net Asset
Value End of
Year or Period(a) | | | Total
Return(a) | | | 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 | |
| | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | |
| $ | 13.88 | | | | 21.06 | % | | $ | 163,475 | | | | 0.05 | %* | | | 0.06 | %* | | | 0.05 | %* | | | 0.06 | %* | | | 2.54 | %* | | | 2 | % |
| | | | | | | | |
| | 11.59 | | | | 1.66 | | | | 103,972 | | | | 0.06 | | | | 0.07 | | | | 0.06 | | | | 0.07 | | | | 2.53 | | | | 20 | |
| | | | | | | | |
| | 11.74 | | | | 6.54 | | | | 84,302 | | | | 0.06 | | | | 0.07 | | | | 0.06 | | | | 0.07 | | | | 2.64 | | | | 16 | |
| | | | | | | | |
| | 11.86 | | | | 9.69 | | | | 50,057 | | | | 0.06 | | | | 0.07 | | | | 0.06 | | | | 0.07 | | | | 2.39 | | | | 108 | |
| | | | | | | | |
| | 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 | |
| | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | |
| | 13.85 | | | | 20.98 | | | | 20,167 | | | | 0.30 | * | | | 0.31 | * | | | 0.30 | * | | | 0.31 | * | | | 2.11 | * | | | 2 | |
| | | | | | | | |
| | 11.56 | | | | 1.43 | | | | 17,960 | | | | 0.31 | | | | 0.32 | | | | 0.31 | | | | 0.32 | | | | 2.32 | | | | 20 | |
| | | | | | | | |
| | 11.71 | | | | 6.22 | | | | 17,027 | | | | 0.31 | | | | 0.32 | | | | 0.31 | | | | 0.32 | | | | 2.34 | | | | 16 | |
| | | | | | | | |
| | 11.84 | | | | 9.44 | | | | 14,382 | | | | 0.31 | | | | 0.32 | | | | 0.31 | | | | 0.32 | | | | 2.58 | | | | 108 | |
| | | | | | | | |
| | 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 | |
| | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | |
| | 13.79 | | | | 20.84 | | | | 4,092 | | | | 0.55 | * | | | 0.56 | * | | | 0.55 | * | | | 0.56 | * | | | 1.82 | * | | | 2 | |
| | | | | | | | |
| | 11.51 | | | | 1.16 | | | | 4,101 | | | | 0.56 | | | | 0.57 | | | | 0.56 | | | | 0.57 | | | | 2.03 | | | | 20 | |
| | | | | | | | |
| | 11.67 | | | | 5.99 | | | | 4,520 | | | | 0.56 | | | | 0.57 | | | | 0.56 | | | | 0.57 | | | | 2.09 | | | | 16 | |
| | | | | | | | |
| | 11.80 | | | | 9.20 | | | | 3,782 | | | | 0.56 | | | | 0.57 | | | | 0.56 | | | | 0.57 | | | | 1.90 | | | | 108 | |
| | | | | | | | |
| | 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 | |
| | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | |
| $ | 13.93 | | | | 21.21 | % | | $ | 91,705 | | | | 0.06 | %* | | | 0.06 | %* | | | 0.06 | %* | | | 0.06 | %* | | | 2.56 | %* | | | 4 | % |
| | | | | | | | |
| | 11.59 | | | | 1.33 | | | | 51,061 | | | | 0.07 | | | | 0.07 | | | | 0.06 | | | | 0.06 | | | | 2.49 | | | | 28 | |
| | | | | | | | |
| | 11.79 | | | | 6.41 | | | | 32,098 | | | | 0.06 | | | | 0.07 | | | | 0.06 | | | | 0.07 | | | | 2.76 | | | | 51 | |
| | | | | | | | |
| | 11.74 | | | | 9.56 | | | | 10,558 | | | | 0.06 | | | | 0.07 | | | | 0.06 | | | | 0.07 | | | | 2.43 | | | | 67 | |
| | | | | | | | |
| | 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 | |
| | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | |
| | 13.91 | | | | 21.01 | | | | 6,296 | | | | 0.31 | * | | | 0.31 | * | | | 0.31 | * | | | 0.31 | * | | | 2.14 | * | | | 4 | |
| | | | | | | | |
| | 11.58 | | | | 1.15 | | | | 4,828 | | | | 0.32 | | | | 0.32 | | | | 0.31 | | | | 0.31 | | | | 2.46 | | | | 28 | |
| | | | | | | | |
| | 11.78 | | | | 6.02 | | | | 605 | | | | 0.31 | | | | 0.32 | | | | 0.31 | | | | 0.32 | | | | 2.58 | | | | 51 | |
| | | | | | | | |
| | 11.75 | | | | 9.37 | | | | 152 | | | | 0.31 | | | | 0.32 | | | | 0.31 | | | | 0.32 | | | | 2.54 | | | | 67 | |
| | | | | | | | |
| | 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 | |
| | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | |
| | 13.85 | | | | 20.86 | | | | 2,647 | | | | 0.56 | * | | | 0.56 | * | | | 0.56 | * | | | 0.56 | * | | | 1.76 | * | | | 4 | |
| | | | | | | | |
| | 11.53 | | | | 0.85 | | | | 2,684 | | | | 0.57 | | | | 0.57 | | | | 0.56 | | | | 0.56 | | | | 1.98 | | | | 28 | |
| | | | | | | | |
| | 11.73 | | | | 5.86 | | | | 2,758 | | | | 0.56 | | | | 0.57 | | | | 0.56 | | | | 0.57 | | | | 2.11 | | | | 51 | |
| | | | | | | | |
| | 11.69 | | | | 9.04 | | | | 2,038 | | | | 0.56 | | | | 0.57 | | | | 0.56 | | | | 0.57 | | | | 1.85 | | | | 67 | |
| | | | | | | | |
| | 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 | |
| | | | | | | | | | | | |
| | | | SEMIANNUAL REPORT | | | | | | | DECEMBER 31, 2020 | | | 33 |
| | | | |
| Financial Highlights (Cont.) | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | Investment Operations | | | Less Distributions(c) | |
| | |
| Selected Per Share Data for the Year or Period Ended^: | | Net Asset Value
Beginning of
Year or Period(a) | | | Net
Investment
Income (Loss)(b) | | | Net Realized/
Unrealized
Gain (Loss) | | | Total | | | From Net
Investment
Income | | | From Net
Realized
Capital
Gains | | | Tax Basis
Return of
Capital | | | Total | |
| | | | | | | | |
PIMCO REALPATH® Blend 2060 Fund | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | |
Institutional Class | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | |
07/01/2020 - 12/31/2020+ | | $ | 9.35 | | | $ | 0.13 | | | $ | 1.86 | | | $ | 1.99 | | | $ | (0.10 | ) | | $ | 0.00 | | | $ | 0.00 | | | $ | (0.10 | ) |
| | | | | | | | |
12/31/2019 - 06/30/2020 | | | 10.00 | | | | 0.09 | | | | (0.74 | ) | | | (0.65 | ) | | | 0.00 | | | | 0.00 | | | | 0.00 | | | | 0.00 | |
| | | | | | | | |
Administrative Class | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | |
07/01/2020 - 12/31/2020+ | | | 9.33 | | | | 0.11 | | | | 1.88 | | | | 1.99 | | | | (0.09 | ) | | | 0.00 | | | | 0.00 | | | | (0.09 | ) |
| | | | | | | | |
12/31/2019 - 06/30/2020 | | | 10.00 | | | | 0.08 | | | | (0.75 | ) | | | (0.67 | ) | | | 0.00 | | | | 0.00 | | | | 0.00 | | | | 0.00 | |
| | | | | | | | |
Class A | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | |
07/01/2020 - 12/31/2020+ | | | 9.32 | | | | 0.15 | | | | 1.82 | | | | 1.97 | | | | (0.08 | ) | | | 0.00 | | | | 0.00 | | | | (0.08 | ) |
| | | | | | | | |
12/31/2019 - 06/30/2020 | | | 10.00 | | | | 0.08 | | | | (0.76 | ) | | | (0.68 | ) | | | 0.00 | | | | 0.00 | | | | 0.00 | | | | 0.00 | |
| | | | | | | | |
PIMCO REALPATH® Blend Income Fund | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | |
Institutional Class | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | |
07/01/2020 - 12/31/2020+ | | $ | 11.58 | | | $ | 0.27 | | | $ | 1.25 | | | $ | 1.52 | | | $ | (0.36 | ) | | $ | (0.18 | ) | | $ | 0.00 | | | $ | (0.54 | ) |
| | | | | | | | |
06/30/2020 | | | 11.28 | | | | 0.35 | | | | 0.34 | | | | 0.69 | | | | (0.39 | ) | | | 0.00 | | | | 0.00 | | | | (0.39 | ) |
| | | | | | | | |
06/30/2019 | | | 10.92 | | | | 0.37 | | | | 0.34 | | | | 0.71 | | | | (0.35 | ) | | | 0.00 | | | | 0.00 | | | | (0.35 | ) |
| | | | | | | | |
06/30/2018 | | | 10.54 | | | | 0.32 | | | | 0.26 | | | | 0.58 | | | | (0.20 | ) | | | 0.00 | | | | 0.00 | | | | (0.20 | ) |
| | | | | | | | |
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 | ) |
| | | | | | | | |
Administrative Class | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | |
07/01/2020 - 12/31/2020+ | | | 11.59 | | | | 0.24 | | | | 1.25 | | | | 1.49 | | | | (0.34 | ) | | | (0.18 | ) | | | 0.00 | | | | (0.52 | ) |
| | | | | | | | |
06/30/2020 | | | 11.28 | | | | 0.33 | | | | 0.34 | | | | 0.67 | | | | (0.36 | ) | | | 0.00 | | | | 0.00 | | | | (0.36 | ) |
| | | | | | | | |
06/30/2019 | | | 10.92 | | | | 0.33 | | | | 0.35 | | | | 0.68 | | | | (0.32 | ) | | | 0.00 | | | | 0.00 | | | | (0.32 | ) |
| | | | | | | | |
06/30/2018 | | | 10.55 | | | | 0.33 | | | | 0.22 | | | | 0.55 | | | | (0.18 | ) | | | 0.00 | | | | 0.00 | | | | (0.18 | ) |
| | | | | | | | |
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 | ) |
| | | | | | | | |
Class A | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | |
07/01/2020 - 12/31/2020+ | | | 11.53 | | | | 0.25 | | | | 1.21 | | | | 1.46 | | | | (0.33 | ) | | | (0.18 | ) | | | 0.00 | | | | (0.51 | ) |
| | | | | | | | |
06/30/2020 | | | 11.24 | | | | 0.32 | | | | 0.32 | | | | 0.64 | | | | (0.35 | ) | | | 0.00 | | | | 0.00 | | | | (0.35 | ) |
| | | | | | | | |
06/30/2019 | | | 10.88 | | | | 0.32 | | | | 0.34 | | | | 0.66 | | | | (0.30 | ) | | | 0.00 | | | | 0.00 | | | | (0.30 | ) |
| | | | | | | | |
06/30/2018 | | | 10.52 | | | | 0.27 | | | | 0.25 | | | | 0.52 | | | | (0.16 | ) | | | 0.00 | | | | 0.00 | | | | (0.16 | ) |
| | | | | | | | |
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 | ) |
| ^ | A zero balance may reflect actual amounts rounding to less than $0.01 or 0.01%. |
| (a) | Includes adjustments required by U.S. GAAP and may differ from net asset values and performance reported elsewhere by the Funds. |
| (b) | Per share amounts based on average number of shares outstanding during the year or period. |
| (c) | 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. |
| (d) | Ratios shown do not include expenses of the investment companies in which a Fund may invest. See Note 9, Fees and Expenses, in the Notes to Financial Statements for more information regarding the expenses and any applicable fee waivers associated with these investments. |
| | | | | | |
| 34 | | PIMCO EQUITY SERIES | | | See Accompanying Notes | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | Ratios/Supplemental Data | |
| | | | | | | | | | Ratios to Average Net Assets(d) | | | | |
Net Asset
Value End of
Year or Period(a) | | | Total
Return(a) | | | 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 | | | | 21.30 | % | | $ | 6,661 | | | | 0.06 | %* | | | 0.07 | %* | | | 0.06 | %* | | | 0.07 | %* | | | 2.52 | %* | | | 7 | % |
| | | | | | | | |
| | 9.35 | | | | (6.50 | ) | | | 2,817 | | | | 0.05 | * | | | 2.52 | * | | | 0.05 | * | | | 2.52 | * | | | 1.95 | * | | | 12 | |
| | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | |
| | 11.23 | | | | 21.32 | | | | 14 | | | | 0.31 | * | | | 0.32 | * | | | 0.31 | * | | | 0.32 | * | | | 2.10 | * | | | 7 | |
| | | | | | | | |
| | 9.33 | | | | (6.70 | ) | | | 9 | | | | 0.30 | * | | | 2.77 | * | | | 0.30 | * | | | 2.77 | * | | | 1.69 | * | | | 12 | |
| | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | |
| | 11.21 | | | | 21.18 | | | | 556 | | | | 0.56 | * | | | 0.57 | * | | | 0.56 | * | | | 0.57 | * | | | 2.72 | * | | | 7 | |
| | | | | | | | |
| | 9.32 | | | | (6.80 | ) | | | 29 | | | | 0.55 | * | | | 3.02 | * | | | 0.55 | * | | | 3.02 | * | | | 1.70 | * | | | 12 | |
| | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | |
| $ | 12.56 | | | | 13.11 | % | | $ | 162,707 | | | | 0.03 | %* | | | 0.04 | %* | | | 0.03 | %* | | | 0.04 | %* | | | 4.26 | %* | | | 1 | % |
| | | | | | | | |
| | 11.58 | | | | 6.16 | | | | 106,005 | | | | 0.04 | | | | 0.05 | | | | 0.04 | | | | 0.05 | | | | 3.08 | | | | 52 | |
| | | | | | | | |
| | 11.28 | | | | 6.70 | | | | 21,432 | | | | 0.04 | | | | 0.05 | | | | 0.04 | | | | 0.05 | | | | 3.41 | | | | 64 | |
| | | | | | | | |
| | 10.92 | | | | 5.52 | | | | 7,556 | | | | 0.04 | | | | 0.04 | | | | 0.04 | | | | 0.04 | | | | 2.91 | | | | 34 | |
| | | | | | | | |
| | 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 | |
| | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | |
| | 12.56 | | | | 12.88 | | | | 30,932 | | | | 0.28 | * | | | 0.29 | * | | | 0.28 | * | | | 0.29 | * | | | 3.75 | * | | | 1 | |
| | | | | | | | |
| | 11.59 | | | | 6.02 | | | | 29,547 | | | | 0.29 | | | | 0.30 | | | | 0.29 | | | | 0.30 | | | | 2.93 | | | | 52 | |
| | | | | | | | |
| | 11.28 | | | | 6.44 | | | | 11,586 | | | | 0.29 | | | | 0.30 | | | | 0.29 | | | | 0.30 | | | | 3.08 | | | | 64 | |
| | | | | | | | |
| | 10.92 | | | | 5.17 | | | | 13,340 | | | | 0.29 | | | | 0.29 | | | | 0.29 | | | | 0.29 | | | | 2.98 | | | | 34 | |
| | | | | | | | |
| | 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 | |
| | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | |
| | 12.48 | | | | 12.68 | | | | 25,183 | | | | 0.53 | * | | | 0.54 | * | | | 0.53 | * | | | 0.54 | * | | | 3.94 | * | | | 1 | |
| | | | | | | | |
| | 11.53 | | | | 5.71 | | | | 16,501 | | | | 0.54 | | | | 0.55 | | | | 0.54 | | | | 0.55 | | | | 2.82 | | | | 52 | |
| | | | | | | | |
| | 11.24 | | | | 6.25 | | | | 7,204 | | | | 0.54 | | | | 0.55 | | | | 0.54 | | | | 0.55 | | | | 2.92 | | | | 64 | |
| | | | | | | | |
| | 10.88 | | | | 4.91 | | | | 3,535 | | | | 0.54 | | | | 0.54 | | | | 0.54 | | | | 0.54 | | | | 2.51 | | | | 34 | |
| | | | | | | | |
| | 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 | |
| | | | | | | | | | | | |
| | | | SEMIANNUAL REPORT | | | | | | | DECEMBER 31, 2020 | | | 35 |
| | | | | | |
| Statements of Assets and Liabilities | | | | | | |
| | | | | | | | | | | | | | | | |
| (Amounts in thousands†, except per share amounts) | | PIMCO
REALPATH® Blend
2025 Fund | | | PIMCO
REALPATH® Blend
2030 Fund | | | PIMCO
REALPATH® Blend
2035 Fund | | | PIMCO
REALPATH® Blend
2040 Fund | |
| | | | |
Assets: | | | | | | | | | | | | | | | | |
| | | | |
Investments, at value | | | | | | | | | | | | | | | | |
Investments in securities* | | $ | 100,452 | | | $ | 132,644 | | | $ | 123,033 | | | $ | 145,002 | |
Investments in Affiliates | | | 118,109 | | | | 98,356 | | | | 72,649 | | | | 56,178 | |
Financial Derivative Instruments | | | | | | | | | | | | | | | | |
Exchange-traded or centrally cleared | | | 420 | | | | 485 | | | | 0 | | | | 0 | |
Over the counter | | | 4 | | | | 7 | | | | 5 | | | | 9 | |
Cash | | | 1 | | | | 1 | | | | 1 | | | | 1 | |
Receivable for investments sold | | | 933 | | | | 6,651 | | | | 1,057 | | | | 3,083 | |
Receivable for Fund shares sold | | | 564 | | | | 981 | | | | 313 | | | | 205 | |
Interest and/or dividends receivable | | | 0 | | | | 0 | | | | 0 | | | | 0 | |
Dividends receivable from Affiliates | | | 191 | | | | 188 | | | | 123 | | | | 105 | |
Total Assets | | | 220,674 | | | | 239,313 | | | | 197,181 | | | | 204,583 | |
| | | | |
Liabilities: | | | | | | | | | | | | | | | | |
| | | | |
Financial Derivative Instruments | | | | | | | | | | | | | | | | |
Exchange-traded or centrally cleared | | $ | 83 | | | $ | 96 | | | $ | 0 | | | $ | 0 | |
Over the counter | | | 2 | | | | 2 | | | | 2 | | | | 2 | |
Payable for investments purchased | | | 0 | | | | 0 | | | | 1,209 | | | | 0 | |
Payable for investments in Affiliates purchased | | | 11,266 | | | | 5,599 | | | | 6,629 | | | | 4,482 | |
Deposits from counterparty | | | 50 | | | | 50 | | | | 50 | | | | 50 | |
Payable for Fund shares redeemed | | | 307 | | | | 58 | | | | 16 | | | | 265 | |
Accrued investment advisory fees | | | 2 | | | | 2 | | | | 3 | | | | 5 | |
Accrued supervisory and administrative fees | | | 5 | | | | 6 | | | | 5 | | | | 5 | |
Accrued distribution fees | | | 7 | | | | 7 | | | | 6 | | | | 5 | |
Accrued servicing fees | | | 2 | | | | 2 | | | | 2 | | | | 2 | |
Accrued reimbursement to PIMCO | | | 1 | | | | 1 | | | | 1 | | | | 1 | |
Total Liabilities | | | 11,725 | | | | 5,823 | | | | 7,923 | | | | 4,817 | |
| | | | |
Net Assets | | $ | 208,949 | | | $ | 233,490 | | | $ | 189,258 | | | $ | 199,766 | |
| | | | |
Net Assets Consist of: | | | | | | | | | | | | | | | | |
| | | | |
Paid in capital | | $ | 189,351 | | | $ | 206,767 | | | $ | 165,943 | | | $ | 172,022 | |
Distributable earnings (accumulated loss) | | | 19,598 | | | | 26,723 | | | | 23,315 | | | | 27,744 | |
| | | | |
Net Assets | | $ | 208,949 | | | $ | 233,490 | | | $ | 189,258 | | | $ | 199,766 | |
| | | | |
Cost of investments in securities | | $ | 82,994 | | | $ | 109,271 | | | $ | 102,144 | | | $ | 119,596 | |
Cost of investments in Affiliates | | $ | 118,448 | | | $ | 97,735 | | | $ | 71,733 | | | $ | 55,115 | |
Cost or premiums of financial derivative instruments, net | | $ | 754 | | | $ | 885 | | | $ | 0 | | | $ | 0 | |
| | | | |
* Includes repurchase agreements of: | | $ | 603 | | | $ | 760 | | | $ | 789 | | | $ | 834 | |
| † | A zero balance may reflect actual amounts rounding to less than one thousand. |
| | | | | | |
| 36 | | PIMCO EQUITY SERIES | | | See Accompanying Notes | |
| | | | | | |
| | | | December 31, 2020 | | (Unaudited) |
| | | | | | | | | | | | | | | | | | |
PIMCO
REALPATH® Blend
2045
Fund | | | PIMCO
REALPATH® Blend
2050
Fund | | | PIMCO
REALPATH® Blend
2055
Fund | | | PIMCO
REALPATH® Blend
2060
Fund | | | PIMCO
REALPATH® Blend
Income
Fund | |
| | | | |
| | | | | | | | | | | | | | | | | | |
| | | | |
| | | | | | | | | | | | | | | | | | | |
| $ | 140,847 | | | $ | 154,857 | | | $ | 85,332 | | | $ | 6,013 | | | $ | 87,827 | |
| | 41,022 | | | | 33,725 | | | | 16,983 | | | | 1,118 | | | | 136,604 | |
| | | | | | | | | | | | | | | | | | | |
| | 0 | | | | 0 | | | | 0 | | | | 0 | | | | 457 | |
| | 5 | | | | 7 | | | | 3 | | | | 0 | | | | 3 | |
| | 1 | | | | 0 | | | | 0 | | | | 105 | | | | 1 | |
| | 1,298 | | | | 2,074 | | | | 267 | | | | 43 | | | | 368 | |
| | 224 | | | | 187 | | | | 170 | | | | 35 | | | | 201 | |
| | 0 | | | | 0 | | | | 0 | | | | 0 | | | | 1 | |
| | 73 | | | | 65 | | | | 31 | | | | 2 | | | | 251 | |
| | 183,470 | | | | 190,915 | | | | 102,786 | | | | 7,316 | | | | 225,713 | |
| | | | |
| | | | | | | | | | | | | | | | | | |
| | | | |
| | | | | | | | | | | | | | | | | | | |
| $ | 0 | | | $ | 0 | | | $ | 0 | | | $ | 0 | | | $ | 90 | |
| | 2 | | | | 2 | | | | 1 | | | | 0 | | | | 2 | |
| | 716 | | | | 619 | | | | 1,243 | | | | 52 | | | | 888 | |
| | 3,362 | | | | 2,425 | | | | 819 | | | | 32 | | | | 5,772 | |
| | 50 | | | | 50 | | | | 30 | | | | 0 | | | | 60 | |
| | 219 | | | | 69 | | | | 37 | | | | 0 | | | | 54 | |
| | 5 | | | | 5 | | | | 3 | | | | 0 | | | | 2 | |
| | 4 | | | | 4 | | | | 2 | | | | 1 | | | | 9 | |
| | 4 | | | | 5 | | | | 2 | | | | 0 | | | | 7 | |
| | 1 | | | | 1 | | | | 1 | | | | 0 | | | | 6 | |
| | 1 | | | | 1 | | | | 0 | | | | 0 | | | | 1 | |
| | 4,364 | | | | 3,181 | | | | 2,138 | | | | 85 | | | | 6,891 | |
| | | | |
| $ | 179,106 | | | $ | 187,734 | | | $ | 100,648 | | | $ | 7,231 | | | $ | 218,822 | |
| | | | |
| | | | | | | | | | | | | | | | | | |
| | | | |
| $ | 151,959 | | | $ | 155,985 | | | $ | 85,479 | | | $ | 6,516 | | | $ | 198,779 | |
| | 27,147 | | | | 31,749 | | | | 15,169 | | | | 715 | | | | 20,043 | |
| | | | |
| $ | 179,106 | | | $ | 187,734 | | | $ | 100,648 | | | $ | 7,231 | | | $ | 218,822 | |
| | | | |
| $ | 115,616 | | | $ | 125,496 | | | $ | 71,240 | | | $ | 5,327 | | | $ | 70,894 | |
| $ | 40,312 | | | $ | 33,064 | | | $ | 16,653 | | | $ | 1,104 | | | $ | 135,623 | |
| $ | 0 | | | $ | 0 | | | $ | 0 | | | $ | 0 | | | $ | 887 | |
| | | | |
| $ | 1,052 | | | $ | 1,427 | | | $ | 1,668 | | | $ | 0 | | | $ | 485 | |
| | | | | | | | | | | | |
| | | | SEMIANNUAL REPORT | | | | | | | DECEMBER 31, 2020 | | | 37 |
| | | | | | |
| Statements of Assets and Liabilities | | (Cont.) | | | | |
| | | | | | | | | | | | | | | | |
| | | PIMCO
REALPATH® Blend
2025
Fund | | | PIMCO
REALPATH® Blend
2030
Fund | | | PIMCO
REALPATH® Blend
2035
Fund | | | PIMCO
REALPATH® Blend
2040
Fund | |
| | | | |
Net Assets: | | | | | | | | | | | | | | | | |
| | | | |
Institutional Class | | $ | 172,379 | | | $ | 193,750 | | | $ | 156,279 | | | $ | 171,219 | |
Administrative Class | | | 28,862 | | | | 32,007 | | | | 25,795 | | | | 19,910 | |
Class A | | | 7,708 | | | | 7,733 | | | | 7,184 | | | | 8,637 | |
| | | | |
Shares Issued and Outstanding: | | | | | | | | | | | | | | | | |
| | | | |
Institutional Class | | | 13,314 | | | | 14,566 | | | | 11,574 | | | | 12,460 | |
Administrative Class | | | 2,235 | | | | 2,411 | | | | 1,913 | | | | 1,452 | |
Class A | | | 597 | | | | 584 | | | | 531 | | | | 632 | |
| | | | |
Net Asset Value Per Share Outstanding(a): | | | | | | | | | | | | | | | | |
| | | | |
Institutional Class | | $ | 12.95 | | | $ | 13.30 | | | $ | 13.50 | | | $ | 13.74 | |
Administrative Class | | | 12.92 | | | | 13.28 | | | | 13.48 | | | | 13.71 | |
Class A | | | 12.91 | | | | 13.24 | | | | 13.52 | | | | 13.67 | |
| (a) | Includes adjustments required by U.S. GAAP and may differ from net asset values and performance reported elsewhere by the Funds. |
| | | | | | |
| 38 | | PIMCO EQUITY SERIES | | | See Accompanying Notes | |
| | | | | | |
| | | | December 31, 2020 | | (Unaudited) |
| | | | | | | | | | | | | | | | | | |
PIMCO
REALPATH® Blend
2045
Fund | | | PIMCO
REALPATH® Blend
2050
Fund | | | PIMCO REALPATH® Blend
2055
Fund | | | PIMCO
REALPATH® Blend
2060
Fund | | | PIMCO
REALPATH® Blend
Income
Fund | |
| | | | |
| | | | | | | | | | | | | | | | | | |
| | | | |
| $ | 157,082 | | | $ | 163,475 | | | $ | 91,705 | | | $ | 6,661 | | | $ | 162,707 | |
| | 17,993 | | | | 20,167 | | | | 6,296 | | | | 14 | | | | 30,932 | |
| | 4,031 | | | | 4,092 | | | | 2,647 | | | | 556 | | | | 25,183 | |
| | | | |
| | | | | | | | | | | | | | | | | | |
| | | | |
| | 11,380 | | | | 11,773 | | | | 6,582 | | | | 592 | | | | 12,958 | |
| | 1,307 | | | | 1,457 | | | | 452 | | | | 1 | | | | 2,462 | |
| | 293 | | | | 297 | | | | 191 | | | | 50 | | | | 2,017 | |
| | | | |
| | | | | | | | | | | | | | | | | | |
| | | | |
| $ | 13.80 | | | $ | 13.88 | | | $ | 13.93 | | | $ | 11.24 | | | $ | 12.56 | |
| | 13.76 | | | | 13.85 | | | | 13.91 | | | | 11.23 | | | | 12.56 | |
| | 13.75 | | | | 13.79 | | | | 13.85 | | | | 11.21 | | | | 12.48 | |
| | | | | | | | | | | | |
| | | | SEMIANNUAL REPORT | | | | | | | DECEMBER 31, 2020 | | | 39 |
| | | | | | | | | | | | | | | | |
| Six Months Ended December 31, 2020 (Unaudited) | | | | | | | | | | | | |
| (Amounts in thousands†) | | PIMCO
REALPATH® Blend
2025 Fund | | | PIMCO
REALPATH® Blend
2030 Fund | | | PIMCO
REALPATH® Blend
2035 Fund | | | PIMCO
REALPATH® Blend
2040 Fund | |
| | | | |
Investment Income: | | | | | | | | | | | | | | | | |
| | | | |
Dividends | | $ | 1,015 | | | $ | 1,332 | | | $ | 1,176 | | | $ | 1,392 | |
Dividends from Investments in Affiliates | | | 2,415 | | | | 2,127 | | | | 1,200 | | | | 918 | |
Total Income | | | 3,430 | | | | 3,459 | | | | 2,376 | | | | 2,310 | |
| | | | |
Expenses: | | | | | | | | | | | | | | | | |
| | | | |
Investment advisory fees | | | 9 | | | | 10 | | | | 15 | | | | 24 | |
Supervisory and administrative fees | | | 26 | | | | 28 | | | | 23 | | | | 26 | |
Distribution and/or servicing fees - Administrative Class | | | 37 | | | | 38 | | | | 31 | | | | 24 | |
Servicing fees - Class A | | | 9 | | | | 9 | | | | 8 | | | | 10 | |
Trustee fees | | | 5 | | | | 6 | | | | 5 | | | | 5 | |
Miscellaneous expense | | | 4 | | | | 0 | | | | 4 | | | | 4 | |
Total Expenses | | | 90 | | | | 91 | | | | 86 | | | | 93 | |
Waiver and/or Reimbursement by PIMCO | | | (5 | ) | | | (1 | ) | | | (5 | ) | | | (5 | ) |
Net Expenses | | | 85 | | | | 90 | | | | 81 | | | | 88 | |
| | | | |
Net Investment Income (Loss) | | | 3,345 | | | | 3,369 | | | | 2,295 | | | | 2,222 | |
| | | | |
Net Realized Gain (Loss): | | | | | | | | | | | | | | | | |
| | | | |
Investments in securities | | | 412 | | | | 1,008 | | | | 284 | | | | 294 | |
Investments in Affiliates | | | (28 | ) | | | (11 | ) | | | (6 | ) | | | (3 | ) |
Net capital gain distributions received from investments | | | 523 | | | | 742 | | | | 655 | | | | 792 | |
Net capital gain distributions received from Affiliate investments | | | 3,624 | | | | 2,272 | | | | 564 | | | | 94 | |
Exchange-traded or centrally cleared financial derivative instruments | | | (242 | ) | | | (160 | ) | | | 0 | | | | 0 | |
Over the counter financial derivative instruments | | | 862 | | | | 1,021 | | | | 799 | | | | 840 | |
| | | | |
Net Realized Gain (Loss) | | | 5,151 | | | | 4,872 | | | | 2,296 | | | | 2,017 | |
| | | | |
Net Change in Unrealized Appreciation (Depreciation): | | | | | | | | | | | | | | | | |
| | | | |
Investments in securities | | | 16,043 | | | | 20,951 | | | | 18,915 | | | | 22,454 | |
Investments in Affiliates | | | (1,661 | ) | | | (224 | ) | | | 832 | | | | 1,164 | |
Exchange-traded or centrally cleared financial derivative instruments | | | (89 | ) | | | (222 | ) | | | 0 | | | | 0 | |
Over the counter financial derivative instruments | | | 84 | | | | 117 | | | | 78 | | | | 84 | |
| | | | |
Net Change in Unrealized Appreciation (Depreciation) | | | 14,377 | | | | 20,622 | | | | 19,825 | | | | 23,702 | |
| | | | |
Net Increase (Decrease) in Net Assets Resulting from Operations | | $ | 22,873 | | | $ | 28,863 | | | $ | 24,416 | | | $ | 27,941 | |
| † | A zero balance may reflect actual amounts rounding to less than one thousand. |
| (a) | Inception date of the Fund was December 31, 2019. |
† A zero balance may reflect actual amounts rounding to less than one thousand
| | | | | | |
| 40 | | PIMCO EQUITY SERIES | | | See Accompanying Notes | |
| | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | |
PIMCO
REALPATH® Blend 2045 Fund | | | PIMCO REALPATH® Blend
2050 Fund | | | PIMCO REALPATH® Blend 2055 Fund | | | PIMCO REALPATH® Blend 2060 Fund(a) | | | PIMCO REALPATH® Blend
Income Fund | |
| | | | |
| | | | | | | | | | | | | | | | | | |
| | | | |
| $ | 1,351 | | | $ | 1527 | | | $ | 798 | | | $ | 51 | | | $ | 894 | |
| | 603 | | | | 508 | | | | 228 | | | | 14 | | | | 3,157 | |
| | 1,954 | | | | 2,035 | | | | 1,026 | | | | 65 | | | | 4,051 | |
| | | | |
| | | | | | | | | | | | | | | | | | |
| | | | |
| | 22 | | | | 24 | | | | 12 | | | | 1 | | | | 10 | |
| | 19 | | | | 21 | | | | 11 | | | | 1 | | | | 44 | |
| | 21 | | | | 25 | | | | 7 | | | | 0 | | | | 39 | |
| | 5 | | | | 5 | | | | 3 | | | | 0 | | | | 25 | |
| | 5 | | | | 5 | | | | 3 | | | | 0 | | | | 6 | |
| | 3 | | | | 4 | | | | 0 | | | | 0 | | | | 5 | |
| | 75 | | | | 84 | | | | 36 | | | | 2 | | | | 129 | |
| | (5 | ) | | | (5 | ) | | | (1 | ) | | | (0 | ) | | | (6 | ) |
| | 70 | | | | 79 | | | | 35 | | | | 2 | | | | 123 | |
| | | | |
| | 1,884 | | | | 1,956 | | | | 991 | | | | 63 | | | | 3,928 | |
| | | | |
| | | | | | | | | | | | | | | | | | |
| | | | |
| | 312 | | | | 542 | | | | 28 | | | | 2 | | | | 308 | |
| | (1 | ) | | | 8 | | | | 1 | | | | (1 | ) | | | (14 | ) |
| | 757 | | | | 825 | | | | 436 | | | | 0 | | | | 432 | |
| | 55 | | | | 39 | | | | 16 | | | | 1 | | | | 3,916 | |
| | 0 | | | | 0 | | | | 0 | | | | 0 | | | | (318 | ) |
| | 782 | | | | 852 | | | | 484 | | | | 35 | | | | 878 | |
| | | | |
| | 1,905 | | | | 2,266 | | | | 965 | | | | 37 | | | | 5,202 | |
| | | | |
| | | | | | | | | | | | | | | | | | |
| | | | |
| | 21,849 | | | | 24,624 | | | | 12,572 | | | | 845 | | | | 14,544 | |
| | 875 | | | | 839 | | | | 395 | | | | 26 | | | | (1,057 | ) |
| | 0 | | | | 0 | | | | 0 | | | | 0 | | | | (80 | ) |
| | 74 | | | | 105 | | | | 22 | | | | 0 | | | | 51 | |
| | | | |
| | 22,798 | | | | 25,568 | | | | 12,989 | | | | 871 | | | | 13,458 | |
| | | | |
| $ | 26,587 | | | $ | 29,790 | | | $ | 14,945 | | | $ | 971 | | | $ | 22,588 | |
| | | | | | | | | | | | |
| | | | SEMIANNUAL REPORT | | | | | | | DECEMBER 31, 2020 | | | 41 |
| | | | |
| Statements of Changes in Net Assets | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | PIMCO REALPATH® Blend 2025 Fund | | | PIMCO REALPATH® Blend 2030 Fund | | | PIMCO REALPATH® Blend 2035 Fund | | | PIMCO REALPATH® Blend 2040 Fund | |
| | | | | | | | |
| (Amounts in thousands†) | | Six Months Ended December 31, 2020
(Unaudited) | | | Year Ended
June 30, 2020 | | | Six Months Ended
December 31, 2020
(Unaudited) | | | Year Ended
June 30, 2020 | | | Six Months Ended
December 31, 2020
(Unaudited) | | | Year Ended
June 30, 2020 | | | Six Months Ended
December 31, 2020
(Unaudited) | | | Year Ended
June 30, 2020 | |
| | | | | | | | |
Increase (Decrease) in Net Assets from: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | |
Operations: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | |
Net investment income (loss) | | $ | 3,345 | | | $ | 2,731 | | | $ | 3,369 | | | $ | 3,359 | | | $ | 2,295 | | | $ | 2,366 | | | $ | 2,222 | | | $ | 2,649 | |
| | | | | | | | |
Net realized gain (loss) | | | 5,151 | | | | 1,650 | | | | 4,872 | | | | 1,243 | | | | 2,296 | | | | (66 | ) | | | 2,017 | | | | (281 | ) |
Net change in unrealized appreciation (depreciation) | | | 14,377 | | | | 604 | | | | 20,622 | | | | (38 | ) | | | 19,825 | | | | (706 | ) | | | 23,702 | | | | (523 | ) |
| | | | | | | | |
Net Increase (Decrease) in Net Assets Resulting from Operations | | | 22,873 | | | | 4,985 | | | | 28,863 | | | | 4,564 | | | | 24,416 | | | | 1,594 | | | | 27,941 | | | | 1,845 | |
| | | | | | | | |
Distributions to Shareholders: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | |
From net investment income and/or net realized capital gains | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Institutional Class | | | (6,390 | ) | | | (1,586 | ) | | | (5,617 | ) | | | (2,365 | ) | | | (2,815 | ) | | | (1,594 | ) | | | (2,569 | ) | | | (2,279 | ) |
Administrative Class | | | (1,084 | ) | | | (764 | ) | | | (918 | ) | | | (774 | ) | | | (464 | ) | | | (630 | ) | | | (294 | ) | | | (473 | ) |
Class A | | | (277 | ) | | | (150 | ) | | | (215 | ) | | | (177 | ) | | | (121 | ) | | | (143 | ) | | | (118 | ) | | | (238 | ) |
| | | | | | | | |
Total Distributions(b) | | | (7,751 | ) | | | (2,500 | ) | | | (6,750 | ) | | | (3,316 | ) | | | (3,400 | ) | | | (2,367 | ) | | | (2,981 | ) | | | (2,990 | ) |
| | | | | | | | |
Fund Share Transactions: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | |
Net increase (decrease) resulting from Fund share transactions* | | | 78,753 | | | | 54,095 | | | | 71,886 | | | | 58,867 | | | | 62,624 | | | | 40,624 | | | | 57,418 | | | | 33,737 | |
| | | | | | | | |
Total Increase (Decrease) in Net Assets | | | 93,875 | | | | 56,580 | | | | 93,999 | | | | 60,115 | | | | 83,640 | | | | 39,851 | | | | 82,378 | | | | 32,592 | |
| | | | | | | | |
Net Assets: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | |
Beginning of period | | | 115,074 | | | | 58,494 | | | | 139,491 | | | | 79,376 | | | | 105,618 | | | | 65,767 | | | | 117,388 | | | | 84,796 | |
End of period | | $ | 208,949 | | | $ | 115,074 | | | $ | 233,490 | | | $ | 139,491 | | | $ | 189,258 | | | $ | 105,618 | | | $ | 199,766 | | | $ | 117,388 | |
| † | 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) | Inception date of the Fund was December 31, 2019. |
| (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. |
| | | | | | |
| 42 | | PIMCO EQUITY SERIES | | | See Accompanying Notes | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
PIMCO REALPATH® Blend 2045 Fund | | | PIMCO REALPATH® Blend 2050 Fund | | | PIMCO REALPATH® Blend 2055 Fund | | | PIMCO REALPATH® Blend 2060 Fund | | | PIMCO REALPATH® Blend Income Fund | |
| | | | | | | | | |
Six Months Ended
December 31, 2020
(Unaudited) | | | Year Ended
June 30, 2020 | | | Six Months Ended
December 31, 2020
(Unaudited) | | | Year Ended
June 30, 2020 | | | Six Months Ended
December 31, 2020
(Unaudited) | | | Year Ended
June 30, 2020 | | | Six Months Ended
December 31, 2020
(Unaudited) | | | Inception date
through
June 30, 2020(a) | | | Six Months Ended
December 31, 2020
(Unaudited) | | | Year Ended
June 30, 2020 | |
| | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | |
| $ | 1,884 | | | $ | 2,490 | | | $ | 1,956 | | | $ | 2,907 | | | $ | 991 | | | $ | 1,158 | | | $ | 63 | | | $ | 26 | | | $ | 3,928 | | | $ | 2,549 | |
| | 1,905 | | | | (757 | ) | | | 2,266 | | | | (863 | ) | | | 965 | | | | (430 | ) | | | 37 | | | | (51 | ) | | | 5,202 | | | | 1,620 | |
|
22,798 |
| | | (346 | ) | | | 25,568 | | | | (104 | ) | | | 12,989 | | | | (24 | ) | | | 871 | | | | (171 | ) | | | 13,458 | | | | (1,683 | ) |
| | | | | | | | | |
|
26,587 |
| | | 1,387 | | | | 29,790 | | | | 1,940 | | | | 14,945 | | | | 704 | | | | 971 | | | | (196 | ) | | | 22,588 | | | | 2,486 | |
| | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | (1,837 | ) | | | (2,361 | ) | | | (1,700 | ) | | | (2,820 | ) | | | (738 | ) | | | (1,244 | ) | | | (56 | ) | | | 0 | | | | (6,533 | ) | | | (930 | ) |
| | (198 | ) | | | (400 | ) | | | (195 | ) | | | (539 | ) | | | (46 | ) | | | (110 | ) | | | 0 | | | | 0 | | | | (1,241 | ) | | | (412 | ) |
| | (40 | ) | | | (124 | ) | | | (35 | ) | | | (130 | ) | | | (16 | ) | | | (81 | ) | | | (4 | ) | | | 0 | | | | (976 | ) | | | (303 | ) |
| | | | | | | | | |
| | (2,075 | ) | | | (2,885 | ) | | | (1,930 | ) | | | (3,489 | ) | | | (800 | ) | | | (1,435 | ) | | | (60 | ) | | | 0 | | | | (8,750 | ) | | | (1,645 | ) |
| | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | |
|
45,337 |
| | | 26,114 | | | | 33,841 | | | | 21,733 | | | | 27,930 | | | | 23,843 | | | | 3,465 | | | | 3,051 | | | | 52,931 | | | | 110,990 | |
| | | | | | | | | |
| | 69,849 | | | | 24,616 | | | | 61,701 | | | | 20,184 | | | | 42,075 | | | | 23,112 | | | | 4,376 | | | | 2,855 | | | | 66,769 | | | | 111,831 | |
| | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | |
| | 109,257 | | | | 84,641 | | | | 126,033 | | | | 105,849 | | | | 58,573 | | | | 35,461 | | | | 2,855 | | | | 0 | | | | 152,053 | | | | 40,222 | |
| | | | | | | | | |
| $ | 179,106 | | | $ | 109,257 | | | $ | 187,734 | | | $ | 126,033 | | | $ | 100,648 | | | $ | 58,573 | | | $ | 7,231 | | | $ | 2,855 | | | $ | 218,822 | | | $ | 152,053 | |
| | | | | | | | | | | | |
| | | | SEMIANNUAL REPORT | | | | | | | DECEMBER 31, 2020 | | | 43 |
| | | | | | | | |
| Schedule of Investments | | PIMCO REALPATH® Blend 2025 Fund | | | | | | |
(Amounts in thousands*, except number of shares, contracts, units and ounces, if any)
| | | | | | | | | | | | |
| | | | | SHARES | | | | | MARKET
VALUE
(000S) | |
| INVESTMENTS IN SECURITIES 48.0% | |
| |
| MUTUAL FUNDS 47.6% | |
| | | | |
Vanguard Developed Markets Index Fund ‘Institutional’ | | | | | 1,715,015 | | | $ | | | 26,154 | |
| | | | |
Vanguard Emerging Markets Stock Index Fund ‘Institutional’ | | | | | 549,349 | | | | | | 17,409 | |
| | | | |
Vanguard Institutional Index Fund ‘Institutional’ | | | | | 155,908 | | | | | | 51,679 | |
| | | | |
Vanguard Small-Cap Index Fund ‘Admiral’ | | | | | 46,410 | | | | | | 4,326 | |
| | | | | | | | | | | | |
Total Mutual Funds
(Cost $82,110) | | | | | | | | | | | 99,568 | |
| | | | | | | | | | | | |
| |
| SHORT-TERM INSTRUMENTS 0.4% | |
| |
| REPURCHASE AGREEMENTS (d) 0.3% | |
| | | | | | | | | | | 603 | |
| | | | | | | | | | | | |
| |
| | | | | PRINCIPAL
AMOUNT
(000S) | | | | | | |
| U.S. TREASURY BILLS 0.1% | | | | | | | | | | | | |
0.092% due 01/07/2021 (a)(b) | | $ | | | 281 | | | | | | 281 | |
| | | | | | | | | | | | |
| Total Short-Term Instruments (Cost $884) | | | | | | 884 | |
| | | | | | | | | | | | |
| | | | |
| | | | | | | | | | | | |
Total Investments in Securities
(Cost $82,994) | | | | | | 100,452 | |
| | | | | | | | | | | | |
| | | | | | | | | | | | |
| | | | | SHARES | | | | | MARKET
VALUE
(000S) | |
| INVESTMENTS IN AFFILIATES 56.6% | |
| |
| MUTUAL FUNDS (c) 48.4% | |
| | | | |
PIMCO Emerging Markets Local Currency and Bond Fund | | | | | 1,224,273 | | | $ | | | 8,558 | |
| | | | |
PIMCO High Yield Fund | | | | | 556,278 | | | | | | 5,051 | |
| | | | |
PIMCO Income Fund | | | | | 2,532,574 | | | | | | 30,669 | |
| | | | |
PIMCO International Bond Fund (U.S. Dollar-Hedged) | | | | | 271,132 | | | | | | 3,007 | |
| | | | |
PIMCO Long-Term Real Return Fund | | | | | 1,527,867 | | | | | | 12,223 | |
| | | | |
PIMCO Long-Term U.S. Government Fund | | | | | 865,755 | | | | | | 5,220 | |
| | | | |
PIMCO Real Return Fund | | | | | 863,623 | | | | | | 10,597 | |
| | | | |
PIMCO Total Return Fund | | | | | 2,412,219 | | | | | | 25,570 | |
| | | | | | | | | | | | |
| Total Mutual Funds (Cost $101,243) | | | | | | 100,895 | |
| | | | | | | | | | | | |
| |
| | | | | | | | | | | | |
| | | | | SHARES | | | | | MARKET
VALUE
(000S) | |
| SHORT-TERM INSTRUMENTS 8.2% | |
| |
| CENTRAL FUNDS USED FOR CASH MANAGEMENT PURPOSES 8.2% | |
| | | | |
PIMCO Short-Term Floating NAV Portfolio III | | | | | 1,745,660 | | | $ | | | 17,214 | |
| | | | | | | | | | | | |
| Total Short-Term Instruments (Cost $17,205) | | | 17,214 | |
| | | | |
| | | | |
| | | | | | | | | | | | |
Total Investments in Affiliates
(Cost $118,448) | | | 118,109 | |
| | | | |
| | | | | | | | | | | | |
| | | | |
| Total Investments 104.6% (Cost $201,442) | | | $ | | | 218,561 | |
| | | | | | | | | | | | |
Financial Derivative
Instruments (e)(f) 0.2% (Cost or Premiums, net $754) | | | | | | | | | | | 339 | |
| |
| Other Assets and Liabilities, net (4.8)% | | | (9,951 | ) |
| | | | |
| Net Assets 100.0% | | | $ | | | 208,949 | |
| | | | | | | |
NOTES TO SCHEDULE OF INVESTMENTS:
| * | A zero balance may reflect actual amounts rounding to less than one thousand. |
| (b) | Coupon represents a yield to maturity. |
| (c) | Institutional Class Shares of each Fund. |
BORROWINGS AND OTHER FINANCING TRANSACTIONS
(d) 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 | |
| FICC | | | 0.000 | % | | | 12/31/2020 | | | | 01/04/2021 | | | $ | 603 | | | U.S. Treasury Bills 0.000% due 12/30/2021 | | $ | (615 | ) | | $ | 603 | | | $ | 603 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total Repurchase Agreements | | | | | $ | (615 | ) | | $ | 603 | | | $ | 603 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
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, 2020:
| | | | | | | | | | | | | | | | | | | | | | | | |
| Counterparty | | Repurchase
Agreement
Proceeds
to be
Received | | | Payable for
Reverse
Repurchase
Agreements | | | Payable for
Sale-Buyback
Transactions | | | Total
Borrowings and
Other Financing
Transactions | | | Collateral
Pledged/(Received) | | | Net Exposure(1) | |
Global/Master Repurchase Agreement | |
FICC | | $ | 603 | | | $ | 0 | | | $ | 0 | | | $ | 603 | | | $ | (615 | ) | | $ | (12 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total Borrowings and Other Financing Transactions | | $ | 603 | | | $ | 0 | | | $ | 0 | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | |
| (1) | Net Exposure represents the net receivable/(payable) that would be due from/to the counterparty in the event of default. Exposure from 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. |
| | | | | | |
| 44 | | PIMCO EQUITY SERIES | | | See Accompanying Notes | |
| | | | | | | | |
| | | | | | December 31, 2020 | | (Unaudited) |
(e) 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 | | | 1,400.000 | | | | 03/19/2021 | | | | 7 | | | $ | 1 | | | $ | 53 | | | $ | 1 | |
Put - CBOE S&P 500 | | | 1,650.000 | | | | 03/19/2021 | | | | 8 | | | | 1 | | | | 110 | | | | 1 | |
Put - CBOE S&P 500 | | | 2,050.000 | | | | 06/18/2021 | | | | 11 | | | | 1 | | | | 77 | | | | 10 | |
Put - CBOE S&P 500 | | | 2,325.000 | | | | 06/18/2021 | | | | 10 | | | | 1 | | | | 108 | | | | 16 | |
Put - CBOE S&P 500 | | | 2,275.000 | | | | 09/17/2021 | | | | 15 | | | | 2 | | | | 107 | | | | 38 | |
Put - CBOE S&P 500 | | | 2,525.000 | | | | 09/17/2021 | | | | 15 | | | | 2 | | | | 163 | | | | 60 | |
Put - CBOE S&P 500 | | | 2,575.000 | | | | 12/17/2021 | | | | 19 | | | | 2 | | | | 136 | | | | 118 | |
Put - CBOE S&P 500 | | | 2,825.000 | | | | 12/17/2021 | | | | 19 | | | | 2 | | | | 196 | | | | 176 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total Purchased Options | | | | | | | $ | 950 | | | $ | 420 | |
| | | | | | | | | | | | | |
WRITTEN OPTIONS:
OPTIONS ON INDICES
| | | | | | | | | | | | | | | | | | | | | | | | |
| Description | | Strike
Value | | | Expiration
Date | | | # of
Contracts | | | Notional
Amount | | | Premiums
(Received) | | | Market
Value | |
Put - CBOE S&P 500 | | | 1,200.000 | | | | 03/19/2021 | | | | 8 | | | $ | 1 | | | $ | (44 | ) | | $ | 0 | |
Put - CBOE S&P 500 | | | 1,700.000 | | | | 06/18/2021 | | | | 10 | | | | 1 | | | | (35 | ) | | | (5 | ) |
Put - CBOE S&P 500 | | | 1,900.000 | | | | 09/17/2021 | | | | 15 | | | | 2 | | | | (53 | ) | | | (20 | ) |
Put - CBOE S&P 500 | | | 2,150.000 | | | | 12/17/2021 | | | | 19 | | | | 2 | | | | (64 | ) | | | (58 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total Written Options | | | | | | | $ | (196 | ) | | $ | (83 | ) |
| | | | | | | | | | | | | |
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, 2020:
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | 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 | | $ | 420 | | | $ | 0 | | | $ | 0 | | | $ | 420 | | | | | | | $ | (83) | | | $ | 0 | | | $ | 0 | | | $ | (83) | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
(f) FINANCIAL DERIVATIVE INSTRUMENTS: OVER THE COUNTER
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 | |
CBK | | Receive | | DWRTFT Index | | | 13 | | | 0.384% (1-Month USD-LIBOR plus a specified spread) | | Monthly | | 05/12/2021 | | $ | 133 | | | $ | 0 | | | $ | 0 | | | $ | 0 | | | $ | 0 | |
| | | | | | | | | | | |
JPM | | Receive | | DWRTFT Index | | | 231 | | | 0.443%(1-Month USD-LIBOR plus a specified spread) | | Monthly | | 10/13/2021 | | | 2,353 | | | | 0 | | | | 4 | | | | 4 | | | | 0 | |
| | | | | | | | | | | |
UAG | | Receive | | DWRTFT Index | | | 431 | | | 0.314%(1-Month USD-LIBOR plus a specified spread) | | Monthly | | 08/25/2021 | | | 4,397 | | | | 0 | | | | (1 | ) | | | 0 | | | | (1 | ) |
| | Receive | | DWRTFT Index | | | 146 | | | 0.394%(1-Month USD-LIBOR plus a specified spread) | | Monthly | | 08/25/2021 | | | 1,489 | | | | 0 | | | | (1 | ) | | | 0 | | | | (1 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total Swap Agreements | | | | | | | | | | $ | 0 | | | $ | 2 | | | $ | 4 | | | $ | (2 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | |
| See Accompanying Notes | | | SEMIANNUAL REPORT | | | | | | | DECEMBER 31, 2020 | | | 45 |
| | | | | | | | |
| Schedule of Investments | | PIMCO REALPATH® Blend 2025 Fund | | (Cont.) | | | | |
FINANCIAL DERIVATIVE INSTRUMENTS: OVER THE COUNTER SUMMARY
The following is a summary by counterparty of the market value of OTC financial derivative instruments and collateral pledged/(received) as of December 31, 2020:
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | 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) | |
JPM | | $ | 0 | | | $ | 0 | | | $ | 4 | | | $ | 4 | | | | | | | $ | 0 | | | $ | 0 | | | $ | 0 | | | $ | 0 | | | $ | 4 | | | $ | 0 | | | $ | 4 | |
UAG | | | 0 | | | | 0 | | | | 0 | | | | 0 | | | | | | | | 0 | | | | 0 | | | | (2 | ) | | | (2 | ) | | | (2 | ) | | | (50 | ) | | | (52 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total Over the Counter | | $ | 0 | | | $ | 0 | | | $ | 4 | | | $ | 4 | | | | | | | $ | 0 | | | $ | 0 | | | $ | (2 | ) | | $ | (2 | ) | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| (1) | Receive represents that the Fund receives payments for any positive net return on the underlying reference. The Fund makes payments for any negative net return on such underlying reference. Pay represents that the Fund receives payments for any negative net return on the underlying reference. The Fund makes payments for any positive net 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. |
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 and Other 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, 2020:
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | 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 | | | $ | 420 | | | $ | 0 | | | $ | 0 | | | $ | 420 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Over the counter | | | | | | | | | | | | | | | | | | | | | | | | |
Swap Agreements | | $ | 0 | | | $ | 0 | | | $ | 4 | | | $ | 0 | | | $ | 0 | | | $ | 4 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
| | $ | 0 | | | $ | 0 | | | $ | 424 | | | $ | 0 | | | $ | 0 | | | $ | 424 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | |
Financial Derivative Instruments - Liabilities | | | | | | | | | | | | | | | | | | | | | | | | |
Exchange-traded or centrally cleared | | | | | | | | | | | | | | | | | | | | | | | | |
Written Options | | $ | 0 | | | $ | 0 | | | $ | 83 | | | $ | 0 | | | $ | 0 | | | $ | 83 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Over the counter | | | | | | | | | | | | | | | | | | | | | | | | |
Swap Agreements | | $ | 0 | | | $ | 0 | | | $ | 2 | | | $ | 0 | | | $ | 0 | | | $ | 2 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
| | $ | 0 | | | $ | 0 | | | $ | 85 | | | $ | 0 | | | $ | 0 | | | $ | 85 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
The effect of Financial Derivative Instruments on the Statements of Operations for the period ended December 31, 2020:
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | 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 | | | $ | (312 | ) | | $ | 0 | | | $ | 0 | | | $ | (312 | ) |
Written Options | | | 0 | | | | 0 | | | | 70 | | | | 0 | | | | 0 | | | | 70 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
| | $ | 0 | | | $ | 0 | | | $ | (242 | ) | | $ | 0 | | | $ | 0 | | | $ | (242 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | |
Over the counter | | | | | | | | | | | | | | | | | | | | | | | | |
Swap Agreements | | $ | 0 | | | $ | 0 | | | $ | 862 | | | $ | 0 | | | $ | 0 | | | $ | 862 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
| | $ | 0 | | | $ | 0 | | | $ | 620 | | | $ | 0 | | | $ | 0 | | | $ | 620 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
|
Net Change in Unrealized Appreciation (Depreciation) on Financial Derivative Instruments | |
Exchange-traded or centrally cleared | | | | | | | | | | | | | | | | | | | | | | | | |
Purchased Options | | $ | 0 | | | $ | 0 | | | $ | (97 | ) | | $ | 0 | | | $ | 0 | | | $ | (97 | ) |
Written Options | | | 0 | | | | 0 | | | | 8 | | | | 0 | | | | 0 | | | | 8 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
| | $ | 0 | | | $ | 0 | | | $ | (89 | ) | | $ | 0 | | | $ | 0 | | | $ | (89 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | |
Over the counter | | | | | | | | | | | | | | | | | | | | | | | | |
Swap Agreements | | $ | 0 | | | $ | 0 | | | $ | 84 | | | $ | 0 | | | $ | 0 | | | $ | 84 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
| | $ | 0 | | | $ | 0 | | | $ | (5 | ) | | $ | 0 | | | $ | 0 | | | $ | (5 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | |
| 46 | | PIMCO EQUITY SERIES | | | See Accompanying Notes | |
| | | | | | | | |
| | | | | | December 31, 2020 | | (Unaudited) |
FAIR VALUE MEASUREMENTS
The following is a summary of the fair valuations according to the inputs used as of December 31, 2020 in valuing the Fund’s assets and liabilities:
| | | | | | | | | | | | | | | | |
| Category and Subcategory | | Level 1 | | | Level 2 | | | Level 3 | | | Fair
Value at
12/31/2020 | |
Investments in Securities, at Value | | | | | | | | | | | | | | | | |
Mutual Funds | | $ | 99,568 | | | $ | 0 | | | $ | 0 | | | $ | 99,568 | |
Short-Term Instruments | | | | | | | | | | | | | | | | |
Repurchase Agreements | | | 0 | | | | 603 | | | | 0 | | | | 603 | |
U.S. Treasury Bills | | | 0 | | | | 281 | | | | 0 | | | | 281 | |
| | | | | | | | | | | | | | | | |
| | $ | 99,568 | | | $ | 884 | | | $ | 0 | | | $ | 100,452 | |
| | | | | | | | | | | | | | | | |
| | | | |
Investments in Affiliates, at Value | | | | | | | | | | | | | | | | |
Mutual Funds | | | 100,895 | | | | 0 | | | | 0 | | | | 100,895 | |
Short-Term Instruments | | | | | | | | | | | | | | | | |
Central Funds Used for Cash Management Purposes | | | 17,214 | | | | 0 | | | | 0 | | | | 17,214 | |
| | | | | | | | | | | | | | | | |
| | $ | 118,109 | | | $ | 0 | | | $ | 0 | | | $ | 118,109 | |
| | | | | | | | | | | | | | | | |
| | | | |
Total Investments | | $ | 217,677 | | | $ | 884 | | | $ | 0 | | | $ | 218,561 | |
| | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | |
| Category and Subcategory | | Level 1 | | | Level 2 | | | Level 3 | | | Fair
Value at
12/31/2020 | |
Financial Derivative Instruments - Assets | |
Exchange-traded or centrally cleared | | $ | 0 | | | $ | 420 | | | $ | 0 | | | $ | 420 | |
Over the counter | | | 0 | | | | 4 | | | | 0 | | | | 4 | |
| | | | | | | | | | | | | | | | |
| | $ | 0 | | | $ | 424 | | | $ | 0 | | | $ | 424 | |
| | | | | | | | | | | | | | | | |
|
Financial Derivative Instruments - Liabilities | |
Exchange-traded or centrally cleared | | | 0 | | | | (83 | ) | | | 0 | | | | (83 | ) |
Over the counter | | | 0 | | | | (2 | ) | | | 0 | | | | (2 | ) |
| | | | | | | | | | | | | | | | |
| | $ | 0 | | | $ | (85 | ) | | $ | 0 | | | $ | (85 | ) |
| | | | | | | | | | | | | | | | |
| | | | |
Total Financial Derivative Instruments | | $ | 0 | | | $ | 339 | | | $ | 0 | | | $ | 339 | |
| | | | | | | | | | | | | | | | |
| | | | |
Totals | | $ | 217,677 | | | $ | 1,223 | | | $ | 0 | | | $ | 218,900 | |
| | | | | | | | | | | | | | | | |
There were no significant transfers into or out of Level 3 during the period ended December 31, 2020.
| | | | | | | | | | | | |
| See Accompanying Notes | | | SEMIANNUAL REPORT | | | | | | | DECEMBER 31, 2020 | | | 47 |
| | | | | | |
| Schedule of Investments | | PIMCO Realpath® Blend 2030 Fund | | | | |
(Amounts in thousands*, except number of shares, contracts, units and ounces, if any)
| | | | | | | | | | | | |
| | | | | SHARES | | | | | MARKET
VALUE
(000S) | |
| INVESTMENTS IN SECURITIES 56.7% | |
| |
| MUTUAL FUNDS 56.2% | |
| | | | |
Vanguard Developed Markets Index Fund ‘Institutional’ | | | | 2,204,982 | | | $ | | | | 33,626 | |
| | | | |
Vanguard Emerging Markets Stock Index Fund ‘Institutional’ | | | | 670,640 | | | | | | | 21,253 | |
| | | | |
Vanguard Institutional Index Fund ‘Institutional’ | | | | 212,460 | | | | | | | 70,424 | |
| | | | |
Vanguard Small-Cap Index Fund ‘Admiral’ | | | | 64,668 | | | | | | | 6,028 | |
| | | | | | | | | | | | |
Total Mutual Funds (Cost $107,958) | | | | | | | 131,331 | |
| | | | | | | | | | | | |
| |
| SHORT-TERM INSTRUMENTS 0.5% | |
| |
| REPURCHASE AGREEMENTS (d) 0.3% | |
| | | | | | | | | | | 760 | |
| | | | | | | | | | | | |
| |
| | | | | PRINCIPAL
AMOUNT (000S) | | | | | | |
| U.S. TREASURY BILLS 0.2% | |
0.091% due 01/07/2021(a)(b) | | $ | | 553 | | | | | | | 553 | |
| | | | | | | | | | | | |
| Total Short-Term Instruments (Cost $1,313) | | | | | | | 1,313 | |
| | | | | | | | | | | | |
| | | | |
| | | | | | | | | | | | |
| Total Investments in Securities (Cost $109,271) | | | | | | | 132,644 | |
| | | | | | | | | | | | |
| | | | | | | | | | | | |
| | | | | SHARES | | | | | MARKET
VALUE
(000S) | |
| INVESTMENTS IN AFFILIATES 42.2% | |
| |
| MUTUAL FUNDS (c) 39.1% | |
| | | | |
PIMCO Emerging Markets Local Currency and Bond Fund | | | | 1,175,527 | | | $ | | | | 8,217 | |
| | | | |
PIMCO High Yield Fund | | | | 605,679 | | | | | | | 5,500 | |
| | | | |
PIMCO Income Fund | | | | 2,404,755 | | | | | | | 29,122 | |
| | | | |
PIMCO International Bond Fund (U.S. Dollar-Hedged) | | | | 249,197 | | | | | | | 2,764 | |
| | | | |
PIMCO Long-Term Real Return Fund | | | | 1,069,282 | | | | | | | 8,554 | |
| | | | |
PIMCO Long-Term U.S. Government Fund | | | | 606,043 | | | | | | | 3,654 | |
| | | | |
PIMCO Real Return Fund | | | | 796,035 | | | | | | | 9,767 | |
| | | | |
PIMCO Total Return Fund | | | | 2,217,186 | | | | | | | 23,502 | |
| | | | | | | | | | | | |
Total Mutual Funds (Cost $90,464) | | | | | | | 91,080 | |
| | | | | | | | | | | | |
| |
| | | | | | | | | | | | |
| | | | | SHARES | | | | | MARKET
VALUE
(000S) | |
| SHORT-TERM INSTRUMENTS 3.1% | |
| |
| CENTRAL FUNDS USED FOR CASH MANAGEMENT PURPOSES 3.1% | |
| | | | |
PIMCO Short-Term Floating NAV Portfolio III | | | | 737,869 | | | $ | | | | 7,276 | |
| | | | | | | | | | | | |
| Total Short-Term Instruments (Cost $7,271) | | | | | | | 7,276 | |
| | | | | | | | | | | | |
| | | | |
| | | | | | | | | | | | |
| Total Investments in Affiliates (Cost $97,735) | | | | | | | 98,356 | |
| | | | |
| | | | | | | | | | | | |
Total Investments 98.9% (Cost $207,006) | | $ | | | | | 231,000 | |
| |
Financial Derivative Instruments (e)(f) 0.2% (Cost or Premiums, net $885) | | | | | | | 394 | |
| | | | | | | | | | | | |
| Other Assets and Liabilities, net 0.9% | | | | | | | 2,096 | |
| | | | | | | | | | | | |
| Net Assets 100.0% | | | | | | $ | | | | | 233,490 | |
| | | | | | | | | | | | |
NOTES TO SCHEDULE OF INVESTMENTS:
| * | A zero balance may reflect actual amounts rounding to less than one thousand. |
| (a) | Coupon represents a weighted average yield to maturity. |
| (c) | Institutional Class Shares of each Fund. |
BORROWINGS AND OTHER FINANCING TRANSACTIONS
(d) 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 | |
| FICC | | | 0.000 | % | | | 12/31/2020 | | | | 01/04/2021 | | | $ | 760 | | | U.S. Treasury Bills 0.000% due 12/30/2021 | | $ | (775 | ) | | $ | 760 | | | $ | 760 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total Repurchase Agreements | | | | | $ | (775 | ) | | $ | 760 | | | $ | 760 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
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, 2020:
| | | | | | | | | | | | | | | | | | | | | | | | |
| Counterparty | | Repurchase
Agreement
Proceeds
to be
Received | | | Payable for
Reverse
Repurchase
Agreements | | | Payable for
Sale-Buyback
Transactions | | | Total
Borrowings and
Other Financing
Transactions | | | Collateral
Pledged/(Received) | | | Net
Exposure(1) | |
Global/Master Repurchase Agreement | | | | | | | | | | | | | | | | | | | | | | | | |
FICC | | $ | 760 | | | $ | 0 | | | $ | 0 | | | $ | 760 | | | $ | (775 | ) | | $ | (15 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total Borrowings and Other Financing Transactions | | $ | 760 | | | $ | 0 | | | $ | 0 | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | |
| (1) | Net Exposure represents the net receivable/(payable) that would be due from/to the counterparty in the event of default. Exposure from 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. |
| | | | | | |
| 48 | | PIMCO EQUITY SERIES | | | See Accompanying Notes | |
| | | | | | | | |
| | | | | | December 31, 2020 | | (Unaudited) |
(e) 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 | | | 1,400.000 | | | | 03/19/2021 | | | | 9 | | | $ | 1 | | | $ | 68 | | | $ | 1 | |
Put - CBOE S&P 500 | | | 1,650.000 | | | | 03/19/2021 | | | | 10 | | | | 1 | | | | 137 | | | | 1 | |
Put - CBOE S&P 500 | | | 2,050.000 | | | | 06/18/2021 | | | | 13 | | | | 1 | | | | 91 | | | | 12 | |
Put - CBOE S&P 500 | | | 2,325.000 | | | | 06/18/2021 | | | | 12 | | | | 1 | | | | 130 | | | | 19 | |
Put - CBOE S&P 500 | | | 2,275.000 | | | | 09/17/2021 | | | | 17 | | | | 2 | | | | 122 | | | | 43 | |
Put - CBOE S&P 500 | | | 2,525.000 | | | | 09/17/2021 | | | | 17 | | | | 2 | | | | 185 | | | | 68 | |
Put - CBOE S&P 500 | | | 2,575.000 | | | | 12/17/2021 | | | | 22 | | | | 2 | | | | 157 | | | | 137 | |
Put - CBOE S&P 500 | | | 2,825.000 | | | | 12/17/2021 | | | | 22 | | | | 2 | | | | 227 | | | | 204 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total Purchased Options | | | $ | 1,117 | | | $ | 485 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
WRITTEN OPTIONS:
OPTIONS ON INDICES
| | | | | | | | | | | | | | | | | | | | | | | | |
| Description | | Strike
Value | | | Expiration
Date | | | # of
Contracts | | | Notional
Amount | | | Premiums
(Received) | | | Market
Value | |
Put - CBOE S&P 500 | | | 1,200.000 | | | | 03/19/2021 | | | | 10 | | | $ | 1 | | | $ | (55 | ) | | $ | (1 | ) |
Put - CBOE S&P 500 | | | 1,700.000 | | | | 06/18/2021 | | | | 12 | | | | 1 | | | | (42 | ) | | | (6 | ) |
Put - CBOE S&P 500 | | | 1,900.000 | | | | 09/17/2021 | | | | 17 | | | | 2 | | | | (61 | ) | | | (23 | ) |
Put - CBOE S&P 500 | | | 2,150.000 | | | | 12/17/2021 | | | | 22 | | | | 2 | | | | (74 | ) | | | (66 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total Written Options | | | $ | (232 | ) | | $ | (96 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | |
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, 2020:
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | 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 | | $ | 485 | | | $ | 0 | | | $ | 0 | | | $ | 485 | | | | | | | $ | | (96) | | $ | 0 | | | $ | 0 | | | $ | (96 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
(f) FINANCIAL DERIVATIVE INSTRUMENTS: OVER THE COUNTER
SWAP AGREEMENTS:
TOTAL RETURN SWAPS ON EQUITY INDICES
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | Pay/Receive(1) | | Underlying Reference | | | | | | | Payment Frequency | | | Maturity Date | | | Notional Amount | | | Premiums Paid/(Received) | | | Unrealized
Appreciation/ (Depreciation) | | | Swap Agreements,
at Value | |
| Counterparty | | # of Units | | | Financing Rate | | Asset | | | Liability | |
| CBK | | Receive | | DWRTFT Index | | | 39 | | | 0.384% (1-Month USD-LIBOR plus a specified spread) | | | Monthly | | | | 05/12/2021 | | | $ | 398 | | | $ | 0 | | | $ | 0 | | | $ | 0 | | | $ | 0 | |
| | | | | | | | | | | |
| JPM | | Receive | | DWRTFT Index | | | 346 | | | 0.443% (1-Month USD-LIBOR plus a specified spread) | | | Monthly | | | | 10/13/2021 | | | | 3,522 | | | | 0 | | | | 7 | | | | 7 | | | | 0 | |
| UAG | | Receive | | DWRTFT Index | | | 474 | | | 0.314% (1-Month USD-LIBOR plus a specified spread) | | | Monthly | | | | 08/25/2021 | | | | 4,836 | | | | 0 | | | | (1 | ) | | | 0 | | | | (1 | ) |
| | | | | | | | | | | |
| | Receive | | DWRTFT Index | | | 132 | | | 0.394% (1-Month USD-LIBOR plus a specified spread) | | | Monthly | | | | 08/25/2021 | | | | 1,346 | | | | 0 | | | | (1 | ) | | | 0 | | | | (1 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total Swap Agreements | | | | | | | | | | | | | | | | | $ | 0 | | | $ | 5 | | | $ | 7 | | | $ | (2 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | |
| See Accompanying Notes | | | SEMIANNUAL REPORT | | | | | | | DECEMBER 31, 2020 | | | 49 |
| | | | | | | | |
| Schedule of Investments | | PIMCO Realpath® Blend 2030 Fund | | (Cont.) | | | | |
FINANCIAL DERIVATIVE INSTRUMENTS: OVER THE COUNTER SUMMARY
The following is a summary by counterparty of the market value of OTC financial derivative instruments and collateral pledged/(received) as of December 31, 2020:
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | 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) | |
JPM | | $ | 0 | | | $ | 0 | | | $ | 7 | | | $ | 7 | | | | | | | $ | 0 | | | $ | 0 | | | $ | 0 | | | $ | 0 | | | $ | 7 | | | $ | 0 | | | $ | 7 | |
UAG | | | 0 | | | | 0 | | | | 0 | | | | 0 | | | | | | | | 0 | | | | 0 | | | | (2 | ) | | | (2 | ) | | | (2 | ) | | | (50 | ) | | | (52 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total Over the Counter | | $ | 0 | | | $ | 0 | | | $ | 7 | | | $ | 7 | | | | | | | $ | 0 | | | $ | 0 | | | $ | (2 | ) | | $ | (2 | ) | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| (1) | Receive represents that the Fund receives payments for any positive net return on the underlying reference. The Fund makes payments for any negative net return on such underlying reference. Pay represents that the Fund receives payments for any negative net return on the underlying reference. The Fund makes payments for any positive net 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. |
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 and Other 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, 2020:
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | 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 | | | $ | 485 | | | $ | 0 | | | $ | 0 | | | $ | 485 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Over the counter | | | | | | | | | | | | | | | | | | | | | | | | |
Swap Agreements | | $ | 0 | | | $ | 0 | | | $ | 7 | | | $ | 0 | | | $ | 0 | | | $ | 7 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
| | $ | 0 | | | $ | 0 | | | $ | 492 | | | $ | 0 | | | $ | 0 | | | $ | 492 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | |
Financial Derivative Instruments - Liabilities | | | | | | | | | | | | | | | | | | | | | | | | |
Exchange-traded or centrally cleared | |
Written Options | | $ | 0 | | | $ | 0 | | | $ | 96 | | | $ | 0 | | | $ | 0 | | | $ | 96 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Over the counter | |
Swap Agreements | | $ | 0 | | | $ | 0 | | | $ | 2 | | | $ | 0 | | | $ | 0 | | | $ | 2 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
| | $ | 0 | | | $ | 0 | | | $ | 98 | | | $ | 0 | | | $ | 0 | | | $ | 98 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
The effect of Financial Derivative Instruments on the Statements of Operations for the period ended December 31, 2020:
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | 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 | | | $ | (200 | ) | | $ | 0 | | | $ | 0 | | | $ | (200 | ) |
Written Options | | | 0 | | | | 0 | | | | 40 | | | | 0 | | | | 0 | | | | 40 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
| | $ | 0 | | | $ | 0 | | | $ | (160 | ) | | $ | 0 | | | $ | 0 | | | $ | (160 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | |
Over the counter | |
Swap Agreements | | $ | 0 | | | $ | 0 | | | $ | 1,021 | | | $ | 0 | | | $ | 0 | | | $ | 1,021 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
| | $ | 0 | | | $ | 0 | | | $ | 861 | | | $ | 0 | | | $ | 0 | | | $ | 861 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
|
Net Change in Unrealized Appreciation (Depreciation) on Financial Derivative Instruments | |
Exchange-traded or centrally cleared | |
Purchased Options | | $ | 0 | | | $ | 0 | | | $ | (273 | ) | | $ | 0 | | | $ | 0 | | | $ | (273 | ) |
Written Options | | | 0 | | | | 0 | | | | 51 | | | | 0 | | | | 0 | | | | 51 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
| | $ | 0 | | | $ | 0 | | | $ | (222 | ) | | $ | 0 | | | $ | 0 | | | $ | (222 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | |
Over the counter | |
Swap Agreements | | $ | 0 | | | $ | 0 | | | $ | 117 | | | $ | 0 | | | $ | 0 | | | $ | 117 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
| | $ | 0 | | | $ | 0 | | | $ | (105 | ) | | $ | 0 | | | $ | 0 | | | $ | (105 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | |
| 50 | | PIMCO EQUITY SERIES | | | See Accompanying Notes | |
| | | | | | | | |
| | | | | | December 31, 2020 | | (Unaudited) |
FAIR VALUE MEASUREMENTS
The following is a summary of the fair valuations according to the inputs used as of December 31, 2020 in valuing the Fund’s assets and liabilities:
| | | | | | | | | | | | | | | | |
| Category and Subcategory | | Level 1 | | | Level 2 | | | Level 3 | | | Fair
Value at
12/31/2020 | |
Investments in Securities, at Value | | | | | | | | | | | | | | | | |
Mutual Funds | | $ | 131,331 | | | $ | 0 | | | $ | 0 | | | $ | 131,331 | |
Short-Term Instruments | | | | | | | | | | | | | | | | |
Repurchase Agreements | | | 0 | | | | 760 | | | | 0 | | | | 760 | |
U.S. Treasury Bills | | | 0 | | | | 553 | | | | 0 | | | | 553 | |
| | | | | | | | | | | | | | | | |
| | $ | 131,331 | | | $ | 1,313 | | | $ | 0 | | | $ | 132,644 | |
| | | | | | | | | | | | | | | | |
|
Investments in Affiliates, at Value | |
Mutual Funds | | | 91,080 | | | | 0 | | | | 0 | | | | 91,080 | |
Short-Term Instruments | | | | | | | | | | | | | | | | |
Central Funds Used for Cash Management Purposes | | | 7,276 | | | | 0 | | | | 0 | | | | 7,276 | |
| | | | | | | | | | | | | | | | |
| | $ | 98,356 | | | $ | 0 | | | $ | 0 | | | $ | 98,356 | |
| | | | | | | | | | | | | | | | |
| | | | |
Total Investments | | $ | 229,687 | | | $ | 1,313 | | | $ | 0 | | | $ | 231,000 | |
| | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | |
| Category and Subcategory | | Level 1 | | | Level 2 | | | Level 3 | | | Fair
Value at
12/31/2020 | |
Financial Derivative Instruments - Assets | |
Exchange-traded or centrally cleared | | $ | 0 | | | $ | 485 | | | $ | 0 | | | $ | 485 | |
Over the counter | | | 0 | | | | 7 | | | | 0 | | | | 7 | |
| | | | | | | | | | | | | | | | |
| | $ | 0 | | | $ | 492 | | | $ | 0 | | | $ | 492 | |
| | | | | | | | | | | | | | | | |
|
Financial Derivative Instruments - Liabilities | |
Exchange-traded or centrally cleared | | | 0 | | | | (96 | ) | | | 0 | | | | (96 | ) |
Over the counter | | | 0 | | | | (2 | ) | | | 0 | | | | (2 | ) |
| | | | | | | | | | | | | | | | |
| | $ | 0 | | | $ | (98 | ) | | $ | 0 | | | $ | (98 | ) |
| | | | | | | | | | | | | | | | |
| | | | |
Total Financial Derivative Instruments | | $ | 0 | | | $ | 394 | | | $ | 0 | | | $ | 394 | |
| | | | | | | | | | | | | | | | |
| | | | |
Totals | | $ | 229,687 | | | $ | 1,707 | | | $ | 0 | | | $ | 231,394 | |
| | | | | | | | | | | | | | | | |
There were no significant transfers into or out of Level 3 during the period ended December 31, 2020.
| | | | | | | | | | | | |
| See Accompanying Notes | | | SEMIANNUAL REPORT | | | | | | | DECEMBER 31, 2020 | | | 51 |
| | | | | | | | |
| Schedule of Investments | | PIMCO REALPATH® Blend 2035 Fund | | | | | | |
(Amounts in thousands*, except number of shares, contracts, units and ounces, if any)
| | | | | | | | | | | | |
| | | | | SHARES | | | | | MARKET
VALUE
(000S) | |
| INVESTMENTS IN SECURITIES 65.0% | |
| |
| MUTUAL FUNDS 64.6% | |
| | | | |
Vanguard Developed Markets Index Fund ‘Institutional’ | | | | | 2,124,838 | | | $ | | | 32,404 | |
| | | | |
Vanguard Emerging Markets Stock Index Fund ‘Institutional’ | | | | | 573,874 | | | | | | 18,186 | |
| | | | |
Vanguard Institutional Index Fund ‘Institutional’ | | | | | 198,473 | | | | | | 65,788 | |
| | | | |
Vanguard Small-Cap Index Fund ‘Admiral’ | | | | | 62,926 | | | | | | 5,866 | |
| | | | | | | | | | | | |
Total Mutual Funds (Cost $101,355) | | | 122,244 | |
| | | | | | | | | | | | |
| |
| SHORT-TERM INSTRUMENTS 0.4% | |
| |
| REPURCHASE AGREEMENTS (b) 0.4% | |
| | | | | | | | | | | 789 | |
| | | | | | | | | | | | |
| |
Total Short-Term Instruments
(Cost $789) | | | | | | | | | | | 789 | |
| | | | | | | | | | | | |
| | | | |
| | | | | | | | | | | | |
Total Investments in Securities
(Cost $102,144) | | | | | | | | | | | 123,033 | |
| | | | | | | | | | | | |
| | | | | | | | | | | | |
| | | | | SHARES | | | | | MARKET
VALUE
(000S) | |
| INVESTMENTS IN AFFILIATES 38.4% | |
| |
| MUTUAL FUNDS (a) 30.9% | |
| | | | |
PIMCO Emerging Markets Local Currency and Bond Fund | | | | | 854,236 | | | $ | | | 5,971 | |
| | | | |
PIMCO High Yield Fund | | | | | 498,508 | | | | | | 4,526 | |
| | | | |
PIMCO Income Fund | | | | | 1,673,902 | | | | | | 20,271 | |
| | | | |
PIMCO International Bond Fund (U.S. Dollar-Hedged) | | | | | 166,620 | | | | | | 1,848 | |
| | | | |
PIMCO Long-Term Real
Return Fund | | | | | 308,849 | | | | | | 2,471 | |
| | | | |
PIMCO Long-Term U.S. Government Fund | | | | | 175,183 | | | | | | 1,056 | |
| | | | |
PIMCO Real Return Fund | | | | | 532,179 | | | | | | 6,530 | |
| | | | |
PIMCO Total Return Fund | | | | | 1,482,424 | | | | | | 15,714 | |
| | | | | | | | | | | | |
| Total Mutual Funds (Cost $57,472) | | | 58,387 | |
| | | | | | | | | | | | |
| |
| | | | | | | | | | | | |
| | | | | SHARES | | | | | MARKET
VALUE
(000S) | |
| SHORT-TERM INSTRUMENTS 7.5% | |
| |
| CENTRAL FUNDS USED FOR CASH MANAGEMENT PURPOSES 7.5% | |
| | | | |
PIMCO Short-Term
Floating NAV Portfolio III | | | | | 1,446,302 | | | $ | | | 14,262 | |
| | | | | | | | | | | | |
Total Short-Term Instruments
(Cost $14,261) | | | | | | 14,262 | |
| | | | | | | | | | | | |
| | | | |
| | | | | | | | | | | | |
Total Investments in Affiliates
(Cost $71,733) | | | | | | 72,649 | |
| | | | |
| | | | | | | | | | | | |
Total Investments 103.4%
(Cost $173,877) | | | $ | | | 195,682 | |
| |
Financial Derivative Instruments (c) 0.0%
(Cost or Premiums, net $0) | | | | | | | | | | | 3 | |
| |
| Other Assets and Liabilities, net (3.4)% | | | | | | (6,427 | ) |
| | | | | | | | | | | | |
| Net Assets 100.0% | | | $ | | | 189,258 | |
| | | | | | | | | | | | |
NOTES TO SCHEDULE OF INVESTMENTS:
| * | A zero balance may reflect actual amounts rounding to less than one thousand. |
| (a) | Institutional Class Shares of each Fund. |
BORROWINGS AND OTHER FINANCING TRANSACTIONS
(b) 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 | |
| FICC | | | 0.000 | % | | | 12/31/2020 | | | | 01/04/2021 | | | $ | 789 | | | U.S. Treasury Bills 0.000% due 12/30/2021 | | $ | (805 | ) | | $ | 789 | | | $ | 789 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total Repurchase Agreements | | $ | (805 | ) | | $ | 789 | | | $ | 789 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
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, 2020:
| | | | | | | | | | | | | | | | | | | | | | | | |
| Counterparty | | Repurchase
Agreement
Proceeds
to be
Received | | | Payable for
Reverse
Repurchase
Agreements | | | Payable for
Sale-Buyback
Transactions | | | Total
Borrowings and
Other Financing
Transactions | | | Collateral
Pledged/(Received) | | | Net Exposure(1) | |
Global/Master Repurchase Agreement | | | | | | | | | | | | | | | | | | | | | | | | |
FICC | | $ | 789 | | | $ | 0 | | | $ | 0 | | | $ | 789 | | | $ | (805 | ) | | $ | (16 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total Borrowings and Other Financing Transactions | | $ | 789 | | | $ | 0 | | | $ | 0 | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | |
| (1) | Net Exposure represents the net receivable/(payable) that would be due from/to the counterparty in the event of default. Exposure from 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. |
| | | | | | |
| 52 | | PIMCO EQUITY SERIES | | | See Accompanying Notes | |
| | | | | | | | |
| | | | | | December 31, 2020 | | (Unaudited) |
(c) FINANCIAL DERIVATIVE INSTRUMENTS: OVER THE COUNTER
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 | |
CBK | | Receive | | DWRTFT Index | | | 34 | | | 0.384% (1-Month USD-LIBOR plus a specified spread) | | | Monthly | | | 05/12/2021 | | $ | 347 | | | $ | 0 | | | $ | 0 | | | $ | 0 | | | $ | 0 | |
JPM | | Receive | | DWRTFT Index | | | 233 | | | 0.443% (1-Month USD-LIBOR plus a specified spread) | | | Monthly | | | 10/13/2021 | | | 2,372 | | | | 0 | | | | 5 | | | | 5 | | | | 0 | |
UAG | | Receive | | DWRTFT Index | | | 408 | | | 0.314% (1-Month USD-LIBOR plus a specified spread) | | | Monthly | | | 08/25/2021 | | | 4,162 | | | | 0 | | | | (1 | ) | | | 0 | | | | (1 | ) |
| | | | | | | | | | | |
| | Receive | | DWRTFT Index | | | 144 | | | 0.394% (1-Month USD-LIBOR plus a specified spread) | | | Monthly | | | 08/25/2021 | | | 1,469 | | | | 0 | | | | (1 | ) | | | 0 | | | | (1 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total Swap Agreements | | | | | | | | | | | | $ | 0 | | | $ | 3 | | | $ | 5 | | | $ | (2 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
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, 2020:
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | 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) | |
JPM | | $ | 0 | | | $ | 0 | | | $ | 5 | | | $ | 5 | | | | | | | $ | 0 | | | $ | 0 | | | $ | 0 | | | $ | 0 | | | $ | 5 | | | $ | 0 | | | $ | 5 | |
UAG | | | 0 | | | | 0 | | | | 0 | | | | 0 | | | | | | | | 0 | | | | 0 | | | | (2 | ) | | | (2 | ) | | | (2 | ) | | | (50 | ) | | | (52 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total Over the Counter | | $ | 0 | | | $ | 0 | | | $ | 5 | | | $ | 5 | | | | | | | $ | 0 | | | $ | 0 | | | $ | (2 | ) | | $ | (2 | ) | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| (1) | Receive represents that the Fund receives payments for any positive net return on the underlying reference. The Fund makes payments for any negative net return on such underlying reference. Pay represents that the Fund receives payments for any negative net return on the underlying reference. The Fund makes payments for any positive net 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. |
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 and Other 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, 2020:
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | 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 | | $ | 0 | | | $ | 0 | | | $ | 5 | | | $ | 0 | | | $ | 0 | | | $ | 5 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | |
Financial Derivative Instruments - Liabilities | | | | | | | | | | | | | | | | | | | | | | | | |
Over the counter | | | | | | | | | | | | | | | | | | | | | | | | |
Swap Agreements | | $ | 0 | | | $ | 0 | | | $ | 2 | | | $ | 0 | | | $ | 0 | | | $ | 2 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | |
| See Accompanying Notes | | | SEMIANNUAL REPORT | | | | | | | DECEMBER 31, 2020 | | | 53 |
| | | | | | | | |
| Schedule of Investments | | PIMCO REALPATH® Blend 2035 Fund | | (Cont.) | | December 31, 2020 | | (Unaudited) |
The effect of Financial Derivative Instruments on the Statements of Operations for the period ended December 31, 2020:
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | 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 | | | | | | | | | | | | | | | | | | | | | | | | |
Swap Agreements | | $ | 0 | | | $ | 0 | | | $ | 799 | | | $ | 0 | | | $ | 0 | | | $ | 799 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
| | |
Net Change in Unrealized Appreciation on Financial Derivative Instruments | | | | | | | | | |
Over the counter | | | | | | | | | | | | | | | | | | | | | | | | |
Swap Agreements | | $ | 0 | | | $ | 0 | | | $ | 78 | | | $ | 0 | | | $ | 0 | | | $ | 78 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
FAIR VALUE MEASUREMENTS
The following is a summary of the fair valuations according to the inputs used as of December 31, 2020 in valuing the Fund’s assets and liabilities:
| | | | | | | | | | | | | | | | |
| Category and Subcategory | | Level 1 | | | Level 2 | | | Level 3 | | | Fair
Value at
12/31/2020 | |
Investments in Securities, at Value | | | | | | | | | | | | | | | | |
Mutual Funds | | $ | 122,244 | | | $ | 0 | | | $ | 0 | | | $ | 122,244 | |
Short-Term Instruments | | | | | | | | | | | | | | | | |
Repurchase Agreements | | | 0 | | | | 789 | | | | 0 | | | | 789 | |
| | | | | | | | | | | | | | | | |
| | $ | 122,244 | | | $ | 789 | | | $ | 0 | | | $ | 123,033 | |
| | | | | | | | | | | | | | | | |
| | | | |
Investments in Affiliates, at Value | | | | | | | | | | | | | | | | |
Mutual Funds | | | 58,387 | | | | 0 | | | | 0 | | | | 58,387 | |
Short-Term Instruments | | | | | | | | | | | | | | | | |
Central Funds Used for Cash Management Purposes | | | 14,262 | | | | 0 | | | | 0 | | | | 14,262 | |
| | | | | | | | | | | | | | | | |
| | $ | 72,649 | | | $ | 0 | | | $ | 0 | | | $ | 72,649 | |
| | | | | | | | | | | | | | | | |
| | | | |
Total Investments | | $ | 194,893 | | | $ | 789 | | | $ | 0 | | | $ | 195,682 | |
| | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | |
| Category and Subcategory | | Level 1 | | | Level 2 | | | Level 3 | | | Fair
Value at
12/31/2020 | |
Financial Derivative Instruments - Assets | |
Over the counter | | $ | 0 | | | $ | 5 | | | $ | 0 | | | $ | 5 | |
| | | | | | | | | | | | | | | | |
|
Financial Derivative Instruments - Liabilities | |
Over the counter | | $ | 0 | | | $ | (2 | ) | | $ | 0 | | | $ | (2 | ) |
| | | | | | | | | | | | | | | | |
| | | | |
Total Financial Derivative Instruments | | $ | 0 | | | $ | 3 | | | $ | 0 | | | $ | 3 | |
| | | | | | | | | | | | | | | | |
| | | | |
Totals | | $ | 194,893 | | | $ | 792 | | | $ | 0 | | | $ | 195,685 | |
| | | | | | | | | | | | | | | | |
There were no significant transfers into or out of Level 3 during the period ended December 31, 2020
| | | | | | |
| 54 | | PIMCO EQUITY SERIES | | | See Accompanying Notes | |
| | | | | | | | |
| Schedule of Investments | | PIMCO REALPATH® Blend 2040 Fund | | | | December 31, 2020 | | (Unaudited) |
(Amounts in thousands*, except number of shares, contracts, units and ounces, if any)
| | | | | | | | | | | | |
| | | | | SHARES | | | | | MARKET
VALUE
(000S) | |
| INVESTMENTS IN SECURITIES 72.6% | |
| |
| MUTUAL FUNDS 72.2% | |
| | | | |
Vanguard Developed Markets Index Fund ‘Institutional’ | | | | | 2,576,910 | | | $ | | | 39,298 | |
| | | | |
Vanguard Emerging Markets Stock Index Fund ‘Institutional’ | | | | | 628,376 | | | | | | 19,913 | |
| | | | |
Vanguard Institutional Index Fund ‘Institutional’ | | | | | 234,358 | | | | | | 77,683 | |
| | | | |
Vanguard Small-Cap Index Fund ‘Admiral’ | | | | | 78,038 | | | | | | 7,274 | |
| | | | | | | | | | | | |
Total Mutual Funds (Cost $118,762) | | | | | | 144,168 | |
| | | | | | | | | | | | |
| |
| SHORT-TERM INSTRUMENTS 0.4% | |
| |
| REPURCHASE AGREEMENTS (b) 0.4% | |
| | | | | | | | | | | 834 | |
| | | | | | | | | | | | |
| Total Short-Term Instruments (Cost $834) | | | | | | 834 | |
| | | | | | | | | | | | |
| | | | |
| | | | | | | | | | | | |
| Total Investments in Securities (Cost $119,596) | | | | | | 145,002 | |
| | | | | | | | | | | | |
| | | | | | | | | | | | |
| | | | | SHARES | | | | | MARKET
VALUE
(000S) | |
| INVESTMENTS IN AFFILIATES 28.1% | |
| |
| MUTUAL FUNDS (a) 23.4% | |
| | | | |
PIMCO Emerging Markets Local Currency and Bond Fund | | | | | 760,681 | | | $ | | | 5,317 | |
| | | | |
PIMCO High Yield Fund | | | | | 527,193 | | | | | | 4,787 | |
| | | | |
PIMCO Income Fund | | | | | 1,420,347 | | | | | | 17,200 | |
| | | | |
PIMCO International Bond Fund (U.S. Dollar-Hedged) | | | | | 131,371 | | | | | | 1,457 | |
| | | | |
PIMCO Long-Term Real Return Fund | | | | | 42,430 | | | | | | 340 | |
| | | | |
PIMCO Long-Term U.S. Government Fund | | | | | 24,116 | | | | | | 146 | |
| | | | |
PIMCO Real Return Fund | | | | | 419,556 | | | | | | 5,148 | |
| | | | |
PIMCO Total Return Fund | | | | | 1,168,800 | | | | | | 12,389 | |
| | | | | | | | | | | | |
| Total Mutual Funds (Cost $45,721) | | | | | | 46,784 | |
| | | | | | | | | | | | |
| |
| | | | | | | | | | | | |
| | | | | SHARES | | | | | MARKET
VALUE
(000S) | |
| SHORT-TERM INSTRUMENTS 4.7% | |
| |
| CENTRAL FUNDS USED FOR CASH MANAGEMENT PURPOSES 4.7% | |
| | | | |
PIMCO Short-Term Floating NAV Portfolio III | | | | | 952,673 | | | $ | | | 9,394 | |
| | | | | | | | | | | | |
| Total Short-Term Instruments (Cost $9,394) | | | | | | 9,394 | |
| | | | | | | | | | | | |
| | | | |
| | | | | | | | | | | | |
| Total Investments in Affiliates (Cost $55,115) | | | | | | 56,178 | |
| | | | |
| | | | | | | | | | | | |
| Total Investments 100.7% (Cost $174,711) | | | $ | | | 201,180 | |
| |
Financial Derivative Instruments (c) 0.0%
(Cost or Premiums, net $0) | | | | | | 7 | |
| |
| Other Assets and Liabilities, net (0.7)% | | | | | | (1,421 | ) |
| | | | | | | | | | | | |
| Net Assets 100.0% | | | $ | | | 199,766 | |
| | | | | | | | | | | | |
NOTES TO SCHEDULE OF INVESTMENTS:
| * | A zero balance may reflect actual amounts rounding to less than one thousand. |
| (a) | Institutional Class Shares of each Fund. |
BORROWINGS AND OTHER FINANCING TRANSACTIONS
(b) 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 | |
| FICC | | | 0.000 | % | | | 12/31/2020 | | | | 01/04/2021 | | | $ | 834 | | | U.S. Treasury Bills 0.000% due 12/30/2021 | | $ | (851 | ) | | $ | 834 | | | $ | 834 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total Repurchase Agreements | | $ | (851 | ) | | $ | 834 | | | $ | 834 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
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, 2020:
| | | | | | | | | | | | | | | | | | | | | | | | |
| Counterparty | | Repurchase
Agreement
Proceeds
to be
Received | | | Payable for
Reverse
Repurchase
Agreements | | | Payable for
Sale-Buyback Transactions | | | Total
Borrowings and
Other Financing
Transactions | | | Pledged/
(Received) Collateral | | | Net Exposure(1) | |
Global/Master Repurchase Agreement | |
FICC | | $ | 834 | | | $ | 0 | | | $ | 0 | | | $ | 834 | | | $ | (851 | ) | | $ | (17 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total Borrowings and Other Financing Transactions | | $ | 834 | | | $ | 0 | | | $ | 0 | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | |
| (1) | Net Exposure represents the net receivable/(payable) that would be due from/to the counterparty in the event of default. Exposure from 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 Arrangem ents, in the Notes to Financial Statements for more information. |
| | | | | | | | | | | | |
| See Accompanying Notes | | | SEMIANNUAL REPORT | | | | | | | DECEMBER 31, 2020 | | | 55 |
| | | | | | | | |
| Schedule of Investments | | PIMCO REALPATH® Blend 2040 Fund | | (Cont.) | | | | |
(c) FINANCIAL DERIVATIVE INSTRUMENTS: OVER THE COUNTER
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 | |
CBK | | Receive | | DWRTFT Index | | | 52 | | | 0.384% (1-Month USD-LIBOR plus a specified spread) | | Monthly | | 05/12/2021 | | $ | 531 | | | $ | 0 | | | $ | 0 | | | $ | 0 | | | $ | 0 | |
JPM | | Receive | | DWRTFT Index | | | 299 | | | 0.443% (1-Month USD-LIBOR plus a specified spread) | | Monthly | | 10/13/2021 | | | 3,041 | | | | 0 | | | | 9 | | | | 9 | | | | 0 | |
UAG | | Receive | | DWRTFT Index | | | 426 | | | 0.314% (1-Month USD-LIBOR plus a specified spread) | | Monthly | | 08/25/2021 | | | 4,346 | | | | 0 | | | | (1 | ) | | | 0 | | | | (1 | ) |
| | | | | | | | | | | |
| | Receive | | DWRTFT Index | | | 96 | | | 0.394% (1-Month USD-LIBOR plus a specified spread) | | Monthly | | 08/25/2021 | | | 979 | | | | 0 | | | | (1 | ) | | | 0 | | | | (1 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total Swap Agreements | | | | | | | | $ | 0 | | | $ | 7 | | | $ | 9 | | | $ | (2 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
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, 2020:
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | 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) | |
JPM | | $ | 0 | | | $ | 0 | | | $ | 9 | | | $ | 9 | | | | | | | $ | 0 | | | $ | 0 | | | $ | 0 | | | $ | 0 | | | $ | 9 | | | $ | 0 | | | $ | 9 | |
UAG | | | 0 | | | | 0 | | | | 0 | | | | 0 | | | | | | | | 0 | | | | 0 | | | | (2 | ) | | | (2 | ) | | | (2 | ) | | | (50 | ) | | | (52 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total Over the Counter | | $ | 0 | | | $ | 0 | | | $ | 9 | | | $ | 9 | | | | | | | $ | 0 | | | $ | 0 | | | $ | (2 | ) | | $ | (2 | ) | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| (1) | Receive represents that the Fund receives payments for any positive net return on the underlying reference. The Fund makes payments for any negative net return on such underlying reference. Pay represents that the Fund receives payments for any negative net return on the underlying reference. The Fund makes payments for any positive net 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. |
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 and Other 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, 2020:
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | 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 | | $ | 0 | | | $ | 0 | | | $ | 9 | | | $ | 0 | | | $ | 0 | | | $ | 9 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | |
Financial Derivative Instruments - Liabilities | | | | | | | | | | | | | | | | | | | | | | | | |
Over the counter | | | | | | | | | | | | | | | | | | | | | | | | |
Swap Agreements | | $ | 0 | | | $ | 0 | | | $ | 2 | | | $ | 0 | | | $ | 0 | | | $ | 2 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | |
| 56 | | PIMCO EQUITY SERIES | | | See Accompanying Notes | |
| | | | | | | | |
| | | | | | December 31, 2020 | | (Unaudited) |
The effect of Financial Derivative Instruments on the Statements of Operations for the period ended December 31, 2020:
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | 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 | | | | | | | | | | | | | | | | | | | | | | | | |
Swap Agreements | | $ | 0 | | | $ | 0 | | | $ | 840 | | | $ | 0 | | | $ | 0 | | | $ | 840 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | |
Net Change in Unrealized Appreciation on Financial Derivative Instruments | | | | | | | | | | | | | | | | | | | | | | | | |
Over the counter | | | | | | | | | | | | | | | | | | | | | | | | |
Swap Agreements | | $ | 0 | | | $ | 0 | | | $ | 84 | | | $ | 0 | | | $ | 0 | | | $ | 84 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
FAIR VALUE MEASUREMENTS
The following is a summary of the fair valuations according to the inputs used as of December 31, 2020 in valuing the Fund’s assets and liabilities:
| | | | | | | | | | | | | | | | |
| Category and Subcategory | | Level 1 | | | Level 2 | | | Level 3 | | | Fair
Value at
12/31/2020 | |
Investments in Securities, at Value | | | | | | | | | | | | | | | | |
Mutual Funds | | $ | 144,168 | | | $ | 0 | | | $ | 0 | | | $ | 144,168 | |
Short-Term Instruments | | | | | | | | | | | | | | | | |
Repurchase Agreements | | | 0 | | | | 834 | | | | 0 | | | | 834 | |
| | | | | | | | | | | | | | | | |
| | $ | 144,168 | | | $ | 834 | | | $ | 0 | | | $ | 145,002 | |
| | | | | | | | | | | | | | | | |
| | | | |
Investments in Affiliates, at Value | | | | | | | | | | | | | | | | |
Mutual Funds | | | 46,784 | | | | 0 | | | | 0 | | | | 46,784 | |
Short-Term Instruments | | | | | | | | | | | | | | | | |
Central Funds Used for Cash Management Purposes | | | 9,394 | | | | 0 | | | | 0 | | | | 9,394 | |
| | | | | | | | | | | | | | | | |
| | $ | 56,178 | | | $ | 0 | | | $ | 0 | | | $ | 56,178 | |
| | | | | | | | | | | | | | | | |
| | | | |
Total Investments | | $ | 200,346 | | | $ | 834 | | | $ | 0 | | | $ | 201,180 | |
| | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | |
| Category and Subcategory | | Level 1 | | | Level 2 | | | Level 3 | | | Fair
Value at
12/31/2020 | |
Financial Derivative Instruments - Assets | |
Over the counter | | $ | 0 | | | $ | 9 | | | $ | 0 | | | $ | 9 | |
| | | | | | | | | | | | | | | | |
|
Financial Derivative Instruments - Liabilities | |
Over the counter | | $ | 0 | | | $ | (2 | ) | | $ | 0 | | | $ | (2 | ) |
| | | | | | | | | | | | | | | | |
| | | | |
Total Financial Derivative Instruments | | $ | 0 | | | $ | 7 | | | $ | 0 | | | $ | 7 | |
| | | | | | | | | | | | | | | | |
| | | | |
Totals | | $ | 200,346 | | | $ | 841 | | | $ | 0 | | | $ | 201,187 | |
| | | | | | | | | | | | | | | | |
There were no significant transfers into or out of Level 3 during the period ended December 31, 2020.
| | | | | | | | | | | | |
| See Accompanying Notes | | | SEMIANNUAL REPORT | | | | | | | DECEMBER 31, 2020 | | | 57 |
| | | | | | | | |
| Schedule of Investments | | PIMCO REALPATH® Blend 2045 Fund | | | | | | |
(Amounts in thousands*, except number of shares, contracts, units and ounces, if any)
| | | | | | | | | | | | |
| | | | | SHARES | | | | | MARKET
VALUE
(000S) | |
| INVESTMENTS IN SECURITIES 78.6% | |
| |
| MUTUAL FUNDS 78.0% | | | | | | | | | | | | |
| | | | |
Vanguard Developed Markets Index Fund ‘Institutional’ | | | | | 2,519,115 | | | $ | | | 38,416 | |
| | | | |
Vanguard Emerging Markets Stock Index Fund ‘Institutional’ | | | | | 584,029 | | | | | | 18,508 | |
| | | | |
Vanguard Institutional Index Fund ‘Institutional’ | | | | | 227,947 | | | | | | 75,558 | |
| | | | |
Vanguard Small-Cap Index Fund ‘Institutional’ | | | | | 78,448 | | | | | | 7,313 | |
| | | | | | | | | | | | |
Total Mutual Funds (Cost $114,564) | | | | | | 139,795 | |
| | | | | | | | | | | | |
| |
| SHORT-TERM INSTRUMENTS 0.6% | |
| |
| REPURCHASE AGREEMENTS (b) 0.6% | |
| | | | | | | | | | | 1,052 | |
| | | | | | | | | | | | |
| Total Short-Term Instruments (Cost $1,052) | | | | | | 1,052 | |
| | | | | | | | | | | | |
| |
| Total Investments in Securities (Cost $115,616) | | | | | | 140,847 | |
| | | | | | | | | | | | |
| | | | | | | | | | | | |
| | | | | SHARES | | | | | MARKET
VALUE
(000S) | |
| INVESTMENTS IN AFFILIATES 22.9% | |
| |
| MUTUAL FUNDS (a) 17.4% | | | | | | | | | | | | |
| | | | |
PIMCO Emerging Markets Local Currency and Bond Fund | | | | | 556,239 | | | $ | | | 3,888 | |
| | | | |
PIMCO High Yield Fund | | | | | 472,498 | | | | | | 4,290 | |
| | | | |
PIMCO Income Fund | | | | | 965,259 | | | | | | 11,689 | |
| | | | |
PIMCO International Bond Fund (U.S. Dollar-Hedged) | | | | | 78,305 | | | | | | 869 | |
| | | | |
PIMCO Real Return Fund | | | | | 250,057 | | | | | | 3,068 | |
| | | | |
PIMCO Total Return Fund | | | | | 696,674 | | | | | | 7,385 | |
| | | | | | | | | | | | |
| Total Mutual Funds (Cost $30,480) | | | | | | | | | | | 31,189 | |
| | | | | | | | | | | | |
| |
| | | | | | | | | | | | |
| | | | | SHARES | | | | | MARKET
VALUE
(000S) | |
| SHORT-TERM INSTRUMENTS 5.5% | |
| |
| CENTRAL FUNDS USED FOR CASH MANAGEMENT PURPOSES 5.5% | |
| | | | |
PIMCO Short-Term Floating NAV Portfolio III | | | | | 997,132 | | | $ | | | 9,833 | |
| | | | | | | | | | | | |
| Total Short-Term Instruments (Cost $9,832) | | | | | | 9,833 | |
| | | | | | | | | | | | |
|
| |
| Total Investments in Affiliates (Cost $40,312) | | | | | | 41,022 | |
| | | | |
| | | | | | | | | | | | |
| Total Investments 101.5% (Cost $155,928) | | | $ | | | 181,869 | |
| |
Financial Derivative Instruments (c) 0.0%
(Cost or Premiums, net $0) | | | | | | 3 | |
| |
| Other Assets and Liabilities, net (1.5)% | | | | | | (2,766 | ) |
| | | | | | | | | | | | |
| Net Assets 100.0% | | | | | | | | $ | | | 179,106 | |
| | | | | | | | | | | | |
NOTES TO SCHEDULE OF INVESTMENTS:
| * | A zero balance may reflect actual amounts rounding to less than one thousand. |
| (a) | Institutional Class Shares of each Fund. |
BORROWINGS AND OTHER FINANCING TRANSACTIONS
(b) 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 | |
| FICC | | | 0.000 | % | | | 12/31/2020 | | | | 01/04/2021 | | | $ | 1,052 | | | U.S. Treasury Bills 0.000% due 12/30/2021 | | $ | (1,073 | ) | | $ | 1,052 | | | $ | 1,052 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total Repurchase Agreements | | $ | (1,073 | ) | | $ | 1,052 | | | $ | 1,052 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
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, 2020:
| | | | | | | | | | | | | | | | | | | | | | | | |
| Counterparty | | Repurchase
Agreement
Proceeds
to be
Received | | | Payable for
Reverse
Repurchase
Agreements | | | Payable for
Sale-Buyback
Transactions | | | Total
Borrowings and
Other Financing
Transactions | | | Collateral
Pledged/(Received) | | | Net Exposure(1) | |
Global/Master Repurchase Agreement | | | | | | | | | | | | | | | | | | | | | | | | |
FICC | | $ | 1,052 | | | $ | 0 | | | $ | 0 | | | $ | 1,052 | | | $ | (1,073 | ) | | $ | (21 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total Borrowings and Other Financing Transactions | | $ | 1,052 | | | $ | 0 | | | $ | 0 | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | |
| (1) | Net Exposure represents the net receivable/(payable) that would be due from/to the counterparty in the event of default. Exposure from 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. |
| | | | | | |
| 58 | | PIMCO EQUITY SERIES | | | See Accompanying Notes | |
| | | | | | | | |
| | | | | | December 31, 2020 | | (Unaudited) |
(c) FINANCIAL DERIVATIVE INSTRUMENTS: OVER THE COUNTER
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 | |
CBK | | Receive | | DWRTFT Index | | | 32 | | | 0.384% (1-Month USD-LIBOR plus a specified spread) | | Monthly | | 05/12/2021 | | $ | 327 | | | $ | 0 | | | $ | 0 | | | $ | 0 | | | $ | 0 | |
| | | | | | | | | | | |
JPM | | Receive | | DWRTFT Index | | | 238 | | | 0.443% (1-Month USD-LIBOR plus a specified spread) | | Monthly | | 10/13/2021 | | | 2,422 | | | | 0 | | | | 5 | | | | 5 | | | | 0 | |
| | | | | | | | | | | |
UAG | | Receive | | DWRTFT Index | | | 409 | | | 0.314% (1-Month USD-LIBOR plus a specified spread) | | Monthly | | 08/25/2021 | | | 4,173 | | | | 0 | | | | (1 | ) | | | 0 | | | | (1 | ) |
| | | | | | | | | | | |
| | Receive | | DWRTFT Index | | | 119 | | | 0.394% (1-Month USD-LIBOR plus a specified spread) | | Monthly | | 08/25/2021 | | | 1,214 | | | | 0 | | | | (1 | ) | | | 0 | | | | (1 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total Swap Agreements | | | | | | | | $ | 0 | | | $ | 3 | | | $ | 5 | | | $ | (2 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
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, 2020:
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | 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) | |
JPM | | $ | 0 | | | $ | 0 | | | $ | 5 | | | $ | 5 | | | | | | | $ | 0 | | | $ | 0 | | | $ | 0 | | | $ | 0 | | | $ | 5 | | | $ | 0 | | | $ | 5 | |
UAG | | | 0 | | | | 0 | | | | 0 | | | | 0 | | | | | | | | 0 | | | | 0 | | | | (2 | ) | | | (2 | ) | | | (2 | ) | | | (50 | ) | | | (52 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total Over the Counter | | $ | 0 | | | $ | 0 | | | $ | 5 | | | $ | 5 | | | | | | | $ | 0 | | | $ | 0 | | | $ | (2 | ) | | $ | (2 | ) | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| (1) | Receive represents that the Fund receives payments for any positive net return on the underlying reference. The Fund makes payments for any negative net return on such underlying reference. Pay represents that the Fund receives payments for any negative net return on the underlying reference. The Fund makes payments for any positive net 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. |
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 and Other 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, 2020:
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | 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 | | $ | 0 | | | $ | 0 | | | $ | 5 | | | $ | 0 | | | $ | 0 | | | $ | 5 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | |
Financial Derivative Instruments - Liabilities | | | | | | | | | | | | | | | | | | | | | �� | | | |
Over the counter | | | | | | | | | | | | | | | | | | | | | | | | |
Swap Agreements | | $ | 0 | | | $ | 0 | | | $ | 2 | | | $ | 0 | | | $ | 0 | | | $ | 2 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | |
| See Accompanying Notes | | | SEMIANNUAL REPORT | | | | | | | DECEMBER 31, 2020 | | | 59 |
| | | | | | | | |
| Schedule of Investments | | PIMCO REALPATH® Blend 2045 Fund | | (Cont.) | | December 31, 2020 | | (Unaudited) |
The effect of Financial Derivative Instruments on the Statements of Operations for the period ended December 31, 2020:
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | 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 | | | | | | | | | | | | | | | | | | | | | | | | |
Swap Agreements | | $ | 0 | | | $ | 0 | | | $ | 782 | | | $ | 0 | | | $ | 0 | | | $ | 782 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | |
Net Change in Unrealized Appreciation on Financial Derivative Instruments | | | | | | | | | | | | | |
Over the counter | | | | | | | | | | | | | | | | | | | | | | | | |
Swap Agreements | | $ | 0 | | | $ | 0 | | | $ | 74 | | | $ | 0 | | | $ | 0 | | | $ | 74 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
FAIR VALUE MEASUREMENTS
The following is a summary of the fair valuations according to the inputs used as of December 31, 2020 in valuing the Fund’s assets and liabilities:
| | | | | | | | | | | | | | | | |
| Category and Subcategory | | Level 1 | | | Level 2 | | | Level 3 | | | Fair
Value at
12/31/2020 | |
Investments in Securities, at Value | | | | | |
Mutual Funds | | $ | 139,795 | | | $ | 0 | | | $ | 0 | | | $ | 139,795 | |
Short-Term Instruments | | | | | | | | | | | | | | | | |
Repurchase Agreements | | | 0 | | | | 1,052 | | | | 0 | | | | 1,052 | |
| | | | | | | | | | | | | | | | |
| | $ | 139,795 | | | $ | 1,052 | | | $ | 0 | | | $ | 140,847 | |
| | | | | | | | | | | | | | | | |
| |
Investments in Affiliates, at Value | | | | | |
Mutual Funds | | | 31,189 | | | | 0 | | | | 0 | | | | 31,189 | |
Short-Term Instruments | | | | | | | | | | | | | | | | |
Central Funds Used for Cash Management Purposes | | | 9,833 | | | | 0 | | | | 0 | | | | 9,833 | |
| | | | | | | | | | | | | | | | |
| | $ | 41,022 | | | $ | 0 | | | $ | 0 | | | $ | 41,022 | |
| | | | | | | | | | | | | | | | |
| | | | |
Total Investments | | $ | 180,817 | | | $ | 1,052 | | | $ | 0 | | | $ | 181,869 | |
| | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | |
| Category and Subcategory | | Level 1 | | | Level 2 | | | Level 3 | | | Fair
Value at
12/31/2020 | |
Financial Derivative Instruments - Assets | |
Over the counter | | $ | 0 | | | $ | 5 | | | $ | 0 | | | $ | 5 | |
| | | | | | | | | | | | | | | | |
|
Financial Derivative Instruments - Liabilities | |
Over the counter | | $ | 0 | | | $ | (2 | ) | | $ | 0 | | | $ | (2 | ) |
| | | | | | | | | | | | | | | | |
| | | | |
Total Financial Derivative Instruments | | $ | 0 | | | $ | 3 | | | $ | 0 | | | $ | 3 | |
| | | | | | | | | | | | | | | | |
| | | | |
Totals | | $ | 180,817 | | | $ | 1,055 | | | $ | 0 | | | $ | 181,872 | |
| | | | | | | | | | | | | | | | |
There were no significant transfers into or out of Level 3 during the period ended December 31, 2020.
| | | | | | |
| 60 | | PIMCO EQUITY SERIES | | | See Accompanying Notes | |
| | | | | | | | |
| Schedule of Investments | | PIMCO REALPATH® Blend 2050 Fund | | | | December 31, 2020 | | (Unaudited) |
(Amounts in thousands*, except number of shares, contracts, units and ounces if any)
| | | | | | | | | | | | |
| | | | | SHARES | | | | | MARKET
VALUE (000S) | |
| INVESTMENTS IN SECURITIES 82.6% | |
| |
| MUTUAL FUNDS 81.8% | |
| | | | |
Vanguard Developed Markets Index Fund ‘Institutional’ | | | | | 2,837,910 | | | $ | | | 43,278 | |
| | | | |
Vanguard Emerging Markets Stock Index Fund ‘Institutional’ | | | | | 628,015 | | | | | | 19,902 | |
| | | | |
Vanguard Institutional Index Fund ‘Institutional’ | | | | | 247,746 | | | | | | 82,120 | |
| | | | |
Vanguard Small-Cap Index Fund ‘Institutional’ | | | | | 87,210 | | | | | | 8,130 | |
| | | | | | | | | | | | |
| Total Mutual Funds (Cost $124,069) | | | | | | 153,430 | |
| | | | | | | | | | | | |
| |
| SHORT-TERM INSTRUMENTS 0.8% | |
| |
| REPURCHASE AGREEMENTS (b) 0.8% | |
| | | | | | | | | | | 1,427 | |
| | | | | | | | | | | | |
| Total Short-Term Instruments (Cost $1,427) | | | 1,427 | |
| | | | | | | | | | | | |
| | | | |
| | | | | | | | | | | | |
| Total Investments in Securities (Cost $125,496) | | | 154,857 | |
| | | | | | | | | | | | |
| | | | | | | | | | | | |
| | | | | SHARES | | | | | MARKET
VALUE (000S) | |
| INVESTMENTS IN AFFILIATES 17.9% | |
| |
| MUTUAL FUNDS (a) 13.4% | |
| | | | |
PIMCO Emerging Markets Local Currency and Bond Fund | | | | | 493,281 | | | $ | | | 3,448 | |
| | | | |
PIMCO High Yield Fund | | | | | 495,001 | | | | | | 4,494 | |
| | | | |
PIMCO Income Fund | | | | | 791,879 | | | | | | 9,590 | |
| | | | |
PIMCO International Bond Fund (U.S. Dollar-Hedged) | | | | | 53,910 | | | | | | 598 | |
| | | | |
PIMCO Real Return Fund | | | | | 172,189 | | | | | | 2,113 | |
| | | | |
PIMCO Total Return Fund | | | | | 479,691 | | | | | | 5,085 | |
| | | | | | | | | | | | |
Total Mutual Funds (Cost $24,667) | | | | | | 25,328 | |
| | | | | | | | | | | | |
| |
| | | | | | | | | | | | |
| | | | | SHARES | | | | | MARKET
VALUE (000S) | |
| SHORT-TERM INSTRUMENTS 4.5% | |
| |
| CENTRAL FUNDS USED FOR CASH MANAGEMENT PURPOSES 4.5% | |
| | | | |
PIMCO Short-Term Floating NAV Portfolio III | | | | | 851,609 | | | $ | | | 8,397 | |
| | | | | | | | | | | | |
| Total Short-Term Instruments (Cost $8,397) | | | 8,397 | |
| | | | | | | | | | | | |
| | | | |
| | | | | | | | | | | | |
| Total Investments in Affiliates (Cost $33,064) | | | 33,725 | |
| | | | |
| | | | | | | | | | | | |
| Total Investments 100.5% (Cost $158,560) | | | $ | | | 188,582 | |
| |
| Financial Derivative Instruments (c) 0.0% (Cost or Premiums, net $0) | | | 5 | |
| |
| Other Assets and Liabilities, net (0.5)% | | | | | | (853 | ) |
| | | | | | | | | | | | |
| Net Assets 100.0% | | | $ | | | 187,734 | |
| | | | | | | | | | | | |
NOTES TO SCHEDULE OF INVESTMENTS:
| * | A zero balance may reflect actual amounts rounding to less than one thousand. |
| (a) | Institutional Class Shares of each Fund. |
BORROWINGS AND OTHER FINANCING TRANSACTIONS
(b) 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 | |
| FICC | | | 0.000 | % | | | 12/31/2020 | | | | 01/04/2021 | | | $ | 1,427 | | | U.S. Treasury Bills 0.000% due 12/30/2021 | | $ | (1,456 | ) | | $ | 1,427 | | | $ | 1,427 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total Repurchase Agreements | | | | | | | | | $ | (1,456 | ) | | $ | 1,427 | | | $ | 1,427 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
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, 2020:
| | | | | | | | | | | | | | | | | | | | | | | | |
| Counterparty | | Repurchase
Agreement
Proceeds
to be
Received | | | Payable for
Reverse
Repurchase
Agreements | | | Payable for Sale-Buyback Transactions | | | Total
Borrowings and
Other Financing
Transactions | | | Collateral
Pledged/(Received) | | | Net Exposure(1) | |
Global/Master Repurchase Agreement | | | | | | | | | | | | | | | | | | | | | | | | |
FICC | | $ | 1,427 | | | $ | 0 | | | $ | 0 | | | $ | 1,427 | | | $ | (1,456 | ) | | $ | (29 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total Borrowings and Other Financing Transactions | | $ | 1,427 | | | $ | 0 | | | $ | 0 | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | |
| (1) | Net Exposure represents the net receivable/(payable) that would be due from/to the counterparty in the event of default. Exposure from 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. |
| | | | | | | | | | | | |
| See Accompanying Notes | | | SEMIANNUAL REPORT | | | | | | | DECEMBER 31, 2020 | | | 61 |
| | | | | | | | |
| Schedule of Investments | | PIMCO REALPATH® Blend 2050 Fund | | (Cont.) | | | | |
(c) FINANCIAL DERIVATIVE INSTRUMENTS: OVER THE COUNTER
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 | |
| CBK | | Receive | | DWRTFT Index | | | 66 | | | 0.384% (1-Month USD-LIBOR plus a specified spread) | | | Monthly | | | | 05/12/2021 | | | $ | 673 | | | $ | 0 | | | $ | 0 | | | $ | 0 | | | $ | 0 | |
| JPM | | Receive | | DWRTFT Index | | | 319 | | | 0.443% (1-Month USD-LIBOR plus a specified spread) | | | Monthly | | | | 10/13/2021 | | | | 3,246 | | | | 0 | | | | 7 | | | | 7 | | | | 0 | |
| UAG | | Receive | | DWRTFT Index | | | 439 | | | 0.314% (1-Month USD-LIBOR plus a specified spread) | | | Monthly | | | | 08/25/2021 | | | | 4,479 | | | | 0 | | | | (2 | ) | | | 0 | | | | (2 | ) |
| | Receive | | DWRTFT Index | | | 47 | | | 0.394% (1-Month USD-LIBOR plus a specified spread) | | | Monthly | | | | 08/25/2021 | | | | 480 | | | | 0 | | | | 0 | | | | 0 | | | | 0 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total Swap Agreements | | | | | | | | | | | | | | | | | $ | 0 | | | $ | 5 | | | $ | 7 | | | $ | (2 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
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, 2020:
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | 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) | |
JPM | | $ | 0 | | | $ | 0 | | | $ | 7 | | | $ | 7 | | | | | | | $ | 0 | | | $ | 0 | | | $ | 0 | | | $ | 0 | | | $ | 7 | | | $ | 0 | | | $ | 7 | |
UAG | | | 0 | | | | 0 | | | | 0 | | | | 0 | | | | | | | | 0 | | | | 0 | | | | (2 | ) | | | (2 | ) | | | (2 | ) | | | (50 | ) | | | (52 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total Over the Counter | | $ | 0 | | | $ | 0 | | | $ | 7 | | | $ | 7 | | | | | | | $ | 0 | | | $ | 0 | | | $ | (2 | ) | | $ | (2 | ) | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| (1) | Receive represents that the Fund receives payments for any positive net return on the underlying reference. The Fund makes payments for any negative net return on such underlying reference. Pay represents that the Fund receives payments for any negative net return on the underlying reference. The Fund makes payments for any positive net 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. |
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 and Other 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, 2020:
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | 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 | | $ | 0 | | | $ | 0 | | | $ | 7 | | | $ | 0 | | | $ | 0 | | | $ | 7 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | |
Financial Derivative Instruments - Liabilities | | | | | | | | | | | | | | | | | | | | | | | | |
Over the counter | | | | | | | | | | | | | | | | | | | | | | | | |
Swap Agreements | | $ | 0 | | | $ | 0 | | | $ | 2 | | | $ | 0 | | | $ | 0 | | | $ | 2 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | |
| 62 | | PIMCO EQUITY SERIES | | | See Accompanying Notes | |
| | | | | | | | |
| | | | | | December 31, 2020 | | (Unaudited) |
The effect of Financial Derivative Instruments on the Statements of Operations for the period ended December 31, 2020:
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | 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 | | | | | | | | | | | | | | | | | | | | | | | | |
Swap Agreements | | $ | 0 | | | $ | 0 | | | $ | 852 | | | $ | 0 | | | $ | 0 | | | $ | 852 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | | |
Net Change in Unrealized Appreciation on Financial Derivative Instruments | | | | | | | | | | | | | | | | | |
Over the counter | | | | | | | | | | | | | | | | | | | | | | | | |
Swap Agreements | | $ | 0 | | | $ | 0 | | | $ | 105 | | | $ | 0 | | | $ | 0 | | | $ | 105 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
FAIR VALUE MEASUREMENTS
The following is a summary of the fair valuations according to the inputs used as of December 31, 2020 in valuing the Fund’s assets and liabilities:
| | | | | | | | | | | | | | | | |
| Category and Subcategory | | Level 1 | | | Level 2 | | | Level 3 | | | Fair
Value at
12/31/2020 | |
Investments in Securities, at Value | | | | | | | | | | | | | | | | |
Mutual Funds | | $ | 153,430 | | | $ | 0 | | | $ | 0 | | | $ | 153,430 | |
Short-Term Instruments | | | | | | | | | | | | | | | | |
Repurchase Agreements | | | 0 | | | | 1,427 | | | | 0 | | | | 1,427 | |
| | | | | | | | | | | | | | | | |
| | $ | 153,430 | | | $ | 1,427 | | | $ | 0 | | | $ | 154,857 | |
| | | | | | | | | | | | | | | | |
| | | | |
Investments in Affiliates, at Value | | | | | | | | | | | | | | | | |
Mutual Funds | | | 25,328 | | | | 0 | | | | 0 | | | | 25,328 | |
Short-Term Instruments | | | | | | | | | | | | | | | | |
Central Funds Used for Cash Management Purposes | | | 8,397 | | | | 0 | | | | 0 | | | | 8,397 | |
| | | | | | | | | | | | | | | | |
| | $ | 33,725 | | | $ | 0 | | | $ | 0 | | | $ | 33,725 | |
| | | | | | | | | | | | | | | | |
| | | | |
Total Investments | | $ | 187,155 | | | $ | 1,427 | | | $ | 0 | | | $ | 188,582 | |
| | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | |
| Category and Subcategory | | Level 1 | | | Level 2 | | | Level 3 | | | Fair
Value at
12/31/2020 | |
Financial Derivative Instruments - Assets | |
Over the counter | | $ | 0 | | | $ | 7 | | | $ | 0 | | | $ | 7 | |
| | | | | | | | | | | | | | | | |
|
Financial Derivative Instruments - Liabilities | |
Over the counter | | $ | 0 | | | $ | (2 | ) | | $ | 0 | | | $ | (2 | ) |
| | | | | | | | | | | | | | | | |
| | | | |
Total Financial Derivative Instruments | | $ | 0 | | | $ | 5 | | | $ | 0 | | | $ | 5 | |
| | | | | | | | | | | | | | | | |
| | | | |
Totals | | $ | 187,155 | | | $ | 1,432 | | | $ | 0 | | | $ | 188,587 | |
| | | | | | | | | | | | | | | | |
There were no significant transfers into or out of Level 3 during the period ended December 31, 2020.
| | | | | | | | | | | | |
| See Accompanying Notes | | | SEMIANNUAL REPORT | | | | | | | DECEMBER 31, 2020 | | | 63 |
| | | | | | | | |
| Schedule of Investments | | PIMCO REALPATH® Blend 2055 Fund | | | | | | |
(Amounts in thousands*, except number of shares, contracts, units and ounces if any)
| | | | | | | | | | | | |
| | | | | SHARES | | | | | MARKET
VALUE
(000S) | |
| INVESTMENTS IN SECURITIES 84.8% | |
| |
| MUTUAL FUNDS 83.1% | |
| | | | |
Vanguard Developed Markets Index Fund ‘Institutional’ | | | | | 1,583,939 | | | $ | | | 24,155 | |
| | | | |
Vanguard Emerging Markets Stock Index Fund ‘Institutional’ | | | | | 339,939 | | | | | | 10,773 | |
| | | | |
Vanguard Institutional Index Fund ‘Institutional’ | | | | | 133,703 | | | | | | 44,318 | |
| | | | |
Vanguard Small-Cap Index Fund ‘Admiral’ | | | | | 47,394 | | | | | | 4,418 | |
| | | | | | | | | | | | |
Total Mutual Funds (Cost $69,572) | | | | | | 83,664 | |
| | | | | | | | | | | | |
| |
| SHORT-TERM INSTRUMENTS 1.7% | |
| |
| REPURCHASE AGREEMENTS (b) 1.7% | |
| | | | | | | | | | | 1,668 | |
| | | | | | | | | | | | |
| Total Short-Term Instruments (Cost $1,668) | | | 1,668 | |
| | | | |
| | | | |
| | | | | | | | | | | | |
| Total Investments in Securities (Cost $71,240) | | | 85,332 | |
| | | | | | | | | | | | |
| | | | | | | | | | | | |
| | | | | SHARES | | | | | MARKET
VALUE
(000S) | �� |
| INVESTMENTS IN AFFILIATES 16.9% | |
| |
| MUTUAL FUNDS (a) 11.8% | |
| | | | |
PIMCO Emerging Markets Local Currency and Bond Fund | | | | | 244,244 | | | $ | | | 1,707 | |
| | | | |
PIMCO High Yield Fund | | | | | 265,200 | | | | | | 2,408 | |
| | | | |
PIMCO Income Fund | | | | | 375,150 | | | | | | 4,543 | |
| | | | |
PIMCO International Bond Fund (U.S. Dollar-Hedged) | | | | | 19,967 | | | | | | 222 | |
| | | | |
PIMCO Real Return Fund | | | | | 72,158 | | | | | | 885 | |
| | | | |
PIMCO Total Return Fund | | | | | 200,995 | | | | | | 2,131 | |
| | | | | | | | | | | | |
| Total Mutual Funds (Cost $11,566) | | | | | | 11,896 | |
| | | | | | | | | | | | |
| | | | | | | | | | | | |
| | | | | SHARES | | | | | MARKET
VALUE
(000S) | |
| SHORT-TERM INSTRUMENTS 5.1% | |
| |
| CENTRAL FUNDS USED FOR CASH MANAGEMENT PURPOSES 5.1% | |
| | | | |
PIMCO Short-Term
Floating NAV Portfolio III | | | | | 515,893 | | | $ | | | 5,087 | |
| | | | | | | | | | | | |
| Total Short-Term Instruments (Cost $5,087) | | | 5,087 | |
| | | | |
| | | | |
| | | | | | | | | | | | |
| Total Investments in Affiliates (Cost $16,653) | | | 16,983 | |
| | | | |
| | | | | | | | | | | | |
| Total Investments 101.7% (Cost $87,893) | | | $ | | | 102,315 | |
| | | | | | | | | | | | |
| Financial Derivative Instruments (c) 0.0% (Cost or Premiums, net $0) | | | 2 | |
| |
| Other Assets and Liabilities, net (1.7)% | | | (1,669 | ) |
| | | | | | | | | | | | |
| Net Assets 100.0% | | | | | | | | $ | | | 100,648 | |
| | | | | | | | | | | | |
NOTES TO SCHEDULE OF INVESTMENTS:
| * | A zero balance may reflect actual amounts rounding to less than one thousand. |
| (a) | Institutional Class Shares of each Fund. |
BORROWINGS AND OTHER FINANCING TRANSACTIONS
(b) 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 | |
| FICC | | | 0.000 | % | | | 12/31/2020 | | | | 01/04/2021 | | | $ | 1,668 | | | U.S. Treasury Bills 0.000% due 12/30/2021 | | $ | (1,701 | ) | | $ | 1,668 | | | $ | 1,668 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total Repurchase Agreements | | | | | $ | (1,701 | ) | | $ | 1,668 | | | $ | 1,668 | |
| | | | | | | | | | | | | | | |
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, 2020:
| | | | | | | | | | | | | | | | | | | | | | | | |
| Counterparty | | Repurchase
Agreement
Proceeds
to be
Received | | | Payable for
Reverse
Repurchase
Agreements | | | Payable for
Sale-Buyback
Transactions | | | Total
Borrowings and
Other Financing
Transactions | | | Collateral
Pledged/(Received) | | | Net Exposure(1) | |
Global/Master Repurchase Agreement | |
FICC | | $ | 1,668 | | | $ | 0 | | | $ | 0 | | | $ | 1,668 | | | $ | (1,701 | ) | | $ | (33 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total Borrowings and Other Financing Transactions | | $ | 1,668 | | | $ | 0 | | | $ | 0 | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | |
| (1) | Net Exposure represents the net receivable/(payable) that would be due from/to the counterparty in the event of default. Exposure from 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. |
| | | | | | |
| 64 | | PIMCO EQUITY SERIES | | | See Accompanying Notes | |
| | | | | | | | |
| | | | | | December 31, 2020 | | (Unaudited) |
(c) FINANCIAL DERIVATIVE INSTRUMENTS: OVER THE COUNTER
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 | |
CBK | | Receive | | DWRTFT Index | | | 26 | | | 0.384% (1-Month USD-LIBOR plus a specified spread) | | Monthly | | 05/12/2021 | | $ | 265 | | | $ | 0 | | | $ | 0 | | | $ | 0 | | | $ | 0 | |
JPM | | Receive | | DWRTFT Index | | | 89 | | | 0.443% (1-Month USD-LIBOR plus a specified spread) | | Monthly | | 10/13/2021 | | | 905 | | | | 0 | | | | 3 | | | | 3 | | | | 0 | |
UAG | | Receive | | DWRTFT Index | | | 297 | | | 0.314% (1-Month USD-LIBOR plus a specified spread) | | Monthly | | 08/25/2021 | | | 3,030 | | | | 0 | | | | (1 | ) | | | 0 | | | | (1 | ) |
| | | | | | | | | | | |
| | Receive | | DWRTFT Index | | | 73 | | | 0.394% (1-Month USD-LIBOR plus a specified spread) | | Monthly | | 08/25/2021 | | | 745 | | | | 0 | | | | 0 | | | | 0 | | | | 0 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total Swap Agreements | | | | | | | | | | $ | 0 | | | $ | 2 | | | $ | 3 | | | $ | (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, 2020:
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | 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) | |
JPM | | $ | 0 | | | $ | 0 | | | $ | 3 | | | $ | 3 | | | | | | | $ | 0 | | | $ | 0 | | | $ | 0 | | | $ | 0 | | | $ | 3 | | | $ | 0 | | | $ | 3 | |
UAG | | | 0 | | | | 0 | | | | 0 | | | | 0 | | | | | | | | 0 | | | | 0 | | | | (1 | ) | | | (1 | ) | | | (1 | ) | | | (30 | ) | | | (31 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total Over the Counter | | $ | 0 | | | $ | 0 | | | $ | 3 | | | $ | 3 | | | | | | | $ | 0 | | | $ | 0 | | | $ | (1 | ) | | $ | (1 | ) | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| (1) | Receive represents that the Fund receives payments for any positive net return on the underlying reference. The Fund makes payments for any negative net return on such underlying reference. Pay represents that the Fund receives payments for any negative net return on the underlying reference. The Fund makes payments for any positive net 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. |
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 and Other 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, 2020:
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | 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 | | $ | 0 | | | $ | 0 | | | $ | 3 | | | $ | 0 | | | $ | 0 | | | $ | 3 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Financial Derivative Instruments - Liabilities | | | | | | | | | | | | | | | | | | | | | | | | |
Over the counter | | | | | | | | | | | | | | | | | | | | | | | | |
Swap Agreements | | $ | 0 | | | $ | 0 | | | $ | 1 | | | $ | 0 | | | $ | 0 | | | $ | 1 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | |
| See Accompanying Notes | | | SEMIANNUAL REPORT | | | | | | | DECEMBER 31, 2020 | | | 65 |
| | | | | | | | |
| Schedule of Investments | | PIMCO REALPATH® Blend 2055 Fund | | (Cont.) | | December 31, 2020 | | (Unaudited) |
The effect of Financial Derivative Instruments on the Statements of Operations for the period ended December 31, 2020:
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | 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 | |
Swap Agreements | | $ | 0 | | | $ | 0 | | | $ | 484 | | | $ | 0 | | | $ | 0 | | | $ | 484 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
|
Net Change in Unrealized Appreciation on Financial Derivative Instruments | |
Over the counter | |
Swap Agreements | | $ | 0 | | | $ | 0 | | | $ | 22 | | | $ | 0 | | | $ | 0 | | | $ | 22 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
FAIR VALUE MEASUREMENTS
The following is a summary of the fair valuations according to the inputs used as of December 31, 2020 in valuing the Fund’s assets and liabilities:
| | | | | | | | | | | | | | | | |
| Category and Subcategory | | Level 1 | | | Level 2 | | | Level 3 | | | Fair
Value at
12/31/2020 | |
Investments in Securities, at Value | | | | | | | | | | | | | | | | |
Mutual Funds | | $ | 83,664 | �� | | $ | 0 | | | $ | 0 | | | $ | 83,664 | |
Short-Term Instruments | | | | | | | | | | | | | | | | |
Repurchase Agreements | | | 0 | | | | 1,668 | | | | 0 | | | | 1,668 | |
| | | | | | | | | | | | | | | | |
| | $ | 83,664 | | | $ | 1,668 | | | $ | 0 | | | $ | 85,332 | |
| | | | | | | | | | | | | | | | |
| | | | |
Investments in Affiliates, at Value | | | | | | | | | | | | | | | | |
Mutual Funds | | | 11,896 | | | | 0 | | | | 0 | | | | 11,896 | |
Short-Term Instruments | | | | | | | | | | | | | | | | |
Central Funds Used for Cash Management Purposes | | | 5,087 | | | | 0 | | | | 0 | | | | 5,087 | |
| | | | | | | | | | | | | | | | |
| | $ | 16,983 | | | $ | 0 | | | $ | 0 | | | $ | 16,983 | |
| | | | | | | | | | | | | | | | |
| | | | |
Total Investments | | $ | 100,647 | | | $ | 1,668 | | | $ | 0 | | | $ | 102,315 | |
| | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | |
| Category and Subcategory | | Level 1 | | | Level 2 | | | Level 3 | | | Fair
Value at
12/31/2020 | |
Financial Derivative Instruments - Assets | |
Over the counter | | $ | 0 | | | $ | 3 | | | $ | 0 | | | $ | 3 | |
| | | | | | | | | | | | | | | | |
|
Financial Derivative Instruments - Liabilities | |
Over the counter | | $ | 0 | | | $ | (1 | ) | | $ | 0 | | | $ | (1 | ) |
| | | | | | | | | | | | | | | | |
| | | | |
Total Financial Derivative Instruments | | $ | 0 | | | $ | 2 | | | $ | 0 | | | $ | 2 | |
| | | | | | | | | | | | | | | | |
| | | | |
Totals | | $ | 100,647 | | | $ | 1,670 | | | $ | 0 | | | $ | 102,317 | |
| | | | | | | | | | | | | | | | |
There were no significant transfers into or out of Level 3 during the period ended December 31, 2020.
| | | | | | |
| 66 | | PIMCO EQUITY SERIES | | | See Accompanying Notes | |
| | | | | | | | |
| Schedule of Investments | | PIMCO REALPATH® Blend 2060 Fund | | | | December 31, 2020 | | (Unaudited) |
(Amounts in thousands*, except number of shares, contracts, units and ounces if any)
| | | | | | | | | | | | |
| | | | | SHARES | | | | | MARKET
VALUE
(000S) | |
| INVESTMENTS IN SECURITIES 83.2% | |
| |
| MUTUAL FUNDS 83.2% | | | | | | | | | | | | |
| | | | |
Vanguard 500 Index Fund ‘Admiral’ | | | | | 9,176 | | | $ | | | 3,180 | |
| | | | |
Vanguard Developed Markets Index Fund ‘Admiral’ | | | | | 114,709 | | | | | | 1,747 | |
| | | | |
Vanguard Emerging Markets Stock Index Fund ‘Admiral’ | | | | | 18,680 | | | | | | 778 | |
| | | | |
Vanguard Small-Cap Index Fund ‘Admiral’ | | | | | 3,304 | | | | | | 308 | |
| | | | | | | | | | | | |
| Total Mutual Funds (Cost $5,327) | | | 6,013 | |
| | | | | | | | | | | | |
| | | | |
| | | | | | | | | | | | |
| Total Investments in Securities (Cost $5,327) | | | 6,013 | |
| | | | | | | | | | | | |
| |
| | | | | | | | | | | | |
| | | | | SHARES | | | | | MARKET
VALUE
(000S) | |
| INVESTMENTS IN AFFILIATES 15.4% | |
| |
| MUTUAL FUNDS (a) 11.3% | |
| | | | |
PIMCO Emerging Markets Local Currency and Bond Fund | | | | | 16,634 | | | $ | | | 116 | |
| | | | |
PIMCO High Yield Fund | | | | | 18,986 | | | | | | 173 | |
| | | | |
PIMCO Income Fund | | | | | 26,009 | | | | | | 315 | |
| | | | |
PIMCO International Bond Fund (U.S. Dollar-Hedged) | | | | | 1,428 | | | | | | 16 | |
| | | | |
PIMCO Real Return Fund | | | | | 4,535 | | | | | | 56 | |
| | | | |
PIMCO Total Return Fund | | | | | 13,421 | | | | | | 142 | |
| | | | | | | | | | | | |
Total Mutual Funds (Cost $804) | | | 818 | |
| | | | | | | | | | | | |
| |
| | | | | | | | | | | | |
| | | | | SHARES | | | | | MARKET
VALUE
(000S) | |
| SHORT-TERM INSTRUMENTS 4.1% | |
| |
| CENTRAL FUNDS USED FOR CASH MANAGEMENT PURPOSES 4.1% | |
| | | | |
PIMCO Short-Term Floating NAV Portfolio III | | | | | 30,442 | | | $ | | | 300 | |
| | | | | | | | | | | | |
| Total Short-Term Instruments (Cost $300) | | | 300 | |
| | | | | | | | | | | | |
| | | | |
| | | | | | | | | | | | |
| Total Investments in Affiliates (Cost $1,104) | | | 1,118 | |
| | | | |
| | | | | | | | | | | | |
| Total Investments 98.6% (Cost $6,431) | | | $ | | | 7,131 | |
| | | | | | | | | | | | |
| Financial Derivative Instruments (b) (0.0)% (Cost or Premiums, net $0) | | | 0 | |
| | | | | | | | | | | | |
| Other Assets and Liabilities, net 1.4% | | | 100 | |
| | | | | | | | | | | | |
| Net Assets 100.0% | | | | | | | | $ | | | 7,231 | |
| | | | | | | | | | | | |
NOTES TO SCHEDULE OF INVESTMENTS:
| * | 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 EQUITY INDICES
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Counterparty | | Pay/Receive(1) | | Underlying Reference | | # of Units | | | Financing Rate | | Payment
Frequency | | Maturity
Date | | Amount
Notional | | | Premiums
Paid /(Received) | | | Unrealized
Appreciation/
(Depreciation) | | | Swap Agreements,
at Value | |
| | Asset | | | Liability | |
UAG | | Receive | | DWRTFT Index | | | 21 | | | 0.314% (1-Month USD-LIBOR plus a specified spread) | | Monthly | | 08/25/2021 | | $ | 214 | | | $ | 0 | | | $ | 0 | | | $ | 0 | | | $ | 0 | |
| | | | | | | | | | | |
| | Receive | | DWRTFT Index | | | 14 | | | 0.394% (1-Month USD-LIBOR plus a specified spread) | | Monthly | | 08/25/2021 | | | 143 | | | | 0 | | | | 0 | | | | 0 | | | | 0 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total Swap Agreements | | | | | | | | | | $ | 0 | | | $ | 0 | | | $ | 0 | | | $ | 0 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
FINANCIAL DERIVATIVE INSTRUMENTS: OVER THE COUNTER SUMMARY
The following is a summary by counterparty of the market value of OTC financial derivative instruments and collateral pledged/(received) as of December 31, 2020:
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | 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) | |
UAG | | $ | 0 | | | $ | 0 | | | $ | 0 | | | $ | 0 | | | | | | | $ | 0 | | | $ | 0 | | | $ | 0 | | | $ | 0 | | | $ | 0 | | | $ | 0 | | | $ | 0 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total Over the Counter | | $ | 0 | | | $ | 0 | | | $ | 0 | | | $ | 0 | | | | | | | $ | 0 | | | $ | 0 | | | $ | 0 | | | $ | 0 | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| (1) | Receive represents that the Fund receives payments for any positive net return on the underlying reference. The Fund makes payments for any negative net return on such underlying reference. Pay represents that the Fund receives payments for any negative net return on the underlying reference. The Fund makes payments for any positive net 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. |
| | | | | | | | | | | | |
| See Accompanying Notes | | | SEMIANNUAL REPORT | | | | | | | DECEMBER 31, 2020 | | | 67 |
| | | | | | | | |
| Schedule of Investments | | PIMCO REALPATH® Blend 2060 Fund | | (Cont.) | | December 31, 2020 | | (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 7, Principal and Other 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, 2020:
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | 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 | |
Swap Agreements | | $ | 0 | | | $ | 0 | | | $ | 35 | | | $ | 0 | | | $ | 0 | | | $ | 35 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
FAIR VALUE MEASUREMENTS
The following is a summary of the fair valuations according to the inputs used as of December 31, 2020 in valuing the Fund’s assets and liabilities:
| | | | | | | | | | | | | | | | |
| Category and Subcategory | | Level 1 | | | Level 2 | | | Level 3 | | | Fair
Value at
12/31/2020 | |
Investments in Securities, at Value | |
Mutual Funds | | $ | 6,013 | | | $ | 0 | | | $ | 0 | | | $ | 6,013 | |
| | | | | | | | | | | | | | | | |
| | $ | 6,013 | | | $ | 0 | | | $ | 0 | | | $ | 6,013 | |
| | | | | | | | | | | | | | | | |
|
Investments in Affiliates, at Value | |
Mutual Funds | | | 818 | | | | 0 | | | | 0 | | | | 818 | |
Short-Term Instruments | | | | | | | | | | | | | | | | |
Central Funds Used for Cash Management Purposes | | | 300 | | | | 0 | | | | 0 | | | | 300 | |
| | | | | | | | | | | | | | | | |
| | $ | 1,118 | | | $ | 0 | | | $ | 0 | | | $ | 1,118 | |
| | | | | | | | | | | | | | | | |
| | | | |
Total Investments | | $ | 7,131 | | | $ | 0 | | | $ | 0 | | | $ | 7,131 | |
| | | | | | | | | | | | | | | | |
There were no significant transfers into or out of Level 3 during the period ended December 31, 2020.
| | | | | | |
| 68 | | PIMCO EQUITY SERIES | | | See Accompanying Notes | |
| | | | | | | | |
| Schedule of Investments | | PIMCO REALPATH® Blend Income Fund | | | | December 31, 2020 | | (Unaudited) |
(Amounts in thousands*, except number of shares, contracts, units and ounces if any)
| | | | | | | | | | | | |
| | | | | SHARES | | | | | MARKET
VALUE
(000S) | |
| INVESTMENTS IN SECURITIES 40.1% | |
| |
| MUTUAL FUNDS 39.7% | |
| | | | |
Vanguard Developed Markets Index Fund ‘Institutional’ | | | | | 1,510,401 | | | $ | | | 23,034 | |
| | | | |
Vanguard Emerging Markets Stock Index Fund ‘Institutional’ | | | | | 524,784 | | | | | | 16,630 | |
| | | | |
Vanguard Institutional Index Fund ‘Institutional’ | | | | | 131,423 | | | | | | 43,563 | |
| | | | |
Vanguard Small-Cap Index Fund ‘Admiral’ | | | | | 40,706 | | | | | | 3,794 | |
| | | | | | | | | | | | |
Total Mutual Funds (Cost $70,088) | | | | | | 87,021 | |
| | | | | | | | | | | | |
| |
| SHORT-TERM INSTRUMENTS 0.4% | |
| |
| REPURCHASE AGREEMENTS (d) 0.2% | |
| | | 485 | |
| | | | | | | | | | | | |
| |
| | | | | PRINCIPAL
AMOUNT
(000S) | | | | | | |
| |
| U.S. TREASURY BILLS 0.2% | |
0.092% due 01/07/2021 (a)(b) | | $ | | | 321 | | | | | | 321 | |
| | | | | | | | | | | | |
Total Short-Term Instruments
(Cost $806) | | | 806 | |
| | | | | | | | | | | | |
Total Investments in Securities
(Cost $70,894) | | | 87,827 | |
| | | | | | | | | | | | |
| | | | | | | | | | | | |
| | | | | SHARES | | | | | MARKET
VALUE
(000S) | |
| INVESTMENTS IN AFFILIATES 62.5% | |
| |
| MUTUAL FUNDS (c) 56.6% | |
| | | | |
PIMCO Emerging Markets Local Currency and Bond Fund | | | | | 1,513,847 | | | $ | | | 10,582 | |
| | | | |
PIMCO High Yield Fund | | | | | 606,922 | | | | | | 5,511 | |
| | | | |
PIMCO Income Fund | | | | | 3,199,628 | | | | | | 38,748 | |
| | | | |
PIMCO International Bond Fund (U.S. Dollar-Hedged) | | | | | 351,689 | | | | | | 3,900 | |
| | | | |
PIMCO Long-Term Real Return Fund | | | | | 1,593,791 | | | | | | 12,750 | |
| | | | |
PIMCO Long-Term U.S. Government Fund | | | | | 903,018 | | | | | | 5,445 | |
| | | | |
PIMCO Real Return Fund | | | | | 1,111,021 | | | | | | 13,632 | |
| | | | |
PIMCO Total Return Fund | | | | | 3,129,037 | | | | | | 33,168 | |
| | | | | | | | | | | | |
| Total Mutual Funds (Cost $122,763) | | | 123,736 | |
| | | | | | | | | | | | |
| | | | | | | | | | | | |
| | | | | SHARES | | | | | MARKET
VALUE
(000S) | |
| SHORT-TERM INSTRUMENTS 5.9% | |
| |
| CENTRAL FUNDS USED FOR CASH MANAGEMENT PURPOSES 5.9% | |
| | | | |
PIMCO Short-Term Floating NAV Portfolio III | | | | | 1,304,923 | | | $ | | | 12,868 | |
| | | | | | | | | | | | |
| Total Short-Term Instruments (Cost $12,860) | | | | | | 12,868 | |
| | | | | | | | | | | | |
| | | | |
| | | | | | | | | | | | |
| Total Investments in Affiliates (Cost $135,623) | | | | | | 136,604 | |
| | | | |
| | | | | | | | | | | | |
Total Investments 102.6%
(Cost $206,517) | | | $ | | | 224,431 | |
| |
Financial Derivative Instruments (e)(f) 0.2% (Cost or Premiums, net $887) | | | 368 | |
| |
| Other Assets and Liabilities, net (2.8)% | | | (5,977 | ) |
| | | | | | | | | | | | |
| Net Assets 100.0% | | | $ | | | 218,822 | |
| | | | | | | | | | | | |
NOTES TO SCHEDULE OF INVESTMENTS:
| * | A zero balance may reflect actual amounts rounding to less than one thousand. |
| (b) | Coupon represents a yield to maturity. |
| (c) | Institutional Class Shares of each Fund. |
BORROWINGS AND OTHER FINANCING TRANSACTIONS
(d) REPURCHASE AGREEMENTS:
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Counterparty | | Lending
Rate | | | Settlement
Date | | | Maturity
Date | | | Principal
Amount | | | Collateralized By | | Collateral
(Received) | | | Repurchase
Agreements,
at Value | | | Proceeds
to be
Received
Repurchase
Agreement | |
| FICC | | | 0.000 | % | | | 12/31/2020 | | | | 01/04/2021 | | | $ | 485 | | | U.S. Treasury Bills 0.000% due 12/30/2021 | | $ | (495 | ) | | $ | 485 | | | $ | 485 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total Repurchase Agreements | | $ | (495 | ) | | $ | 485 | | | $ | 485 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
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, 2020:
| | | | | | | | | | | | | | | | | | | | | | | | |
| Counterparty | | Repurchase
Agreement
Proceeds
to be
Received | | | Payable for
Reverse
Repurchase
Agreements | | | Payable for
Sale-Buyback
Transactions | | | Total
Borrowings and
Other Financing
Transactions | | | Pledged/
(Received) | | | Collateral
Net Exposure(1) | |
Global/Master Repurchase Agreement | |
FICC | | $ | 485 | | | $ | 0 | | | $ | 0 | | | $ | 485 | | | $ | (495 | ) | | $ | (10 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total Borrowings and Other Financing Transactions | | $ | 485 | | | $ | 0 | | | $ | 0 | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | |
| (1) | Net Exposure represents the net receivable/(payable) that would be due from/to the counterparty in the event of default. Exposure from 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. |
| | | | | | | | | | | | |
| See Accompanying Notes | | | SEMIANNUAL REPORT | | | | | | | DECEMBER 31, 2020 | | | 69 |
| | | | | | | | |
| Schedule of Investments | | PIMCO REALPATH® Blend Income Fund | | (Cont.) | | | | |
(e) 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 | | | 1,400.000 | | | | 03/19/2021 | | | | 10 | | | $ | 1 | | | $ | 75 | | | $ | 1 | |
Put - CBOE S&P 500 | | | 1,650.000 | | | | 03/19/2021 | | | | 11 | | | | 1 | | | | 151 | | | | 2 | |
Put - CBOE S&P 500 | | | 2,050.000 | | | | 06/18/2021 | | | | 14 | | | | 1 | | | | 98 | | | | 13 | |
Put - CBOE S&P 500 | | | 2,325.000 | | | | 06/18/2021 | | | | 13 | | | | 1 | | | | 141 | | | | 20 | |
Put - CBOE S&P 500 | | | 2,275.000 | | | | 09/17/2021 | | | | 17 | | | | 2 | | | | 122 | | | | 43 | |
Put - CBOE S&P 500 | | | 2,525.000 | | | | 09/17/2021 | | | | 17 | | | | 2 | | | | 185 | | | | 68 | |
Put - CBOE S&P 500 | | | 2,575.000 | | | | 12/17/2021 | | | | 20 | | | | 2 | | | | 143 | | | | 125 | |
Put - CBOE S&P 500 | | | 2,825.000 | | | | 12/17/2021 | | | | 20 | | | | 2 | | | | 206 | | | | 185 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total Purchased Options | | | | | | | | | | | | | | | | | | $ | 1,121 | | | $ | 457 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
WRITTEN OPTIONS:
OPTIONS ON INDICES
| | | | | | | | | | | | | | | | | | | | | | | | |
| Description | | Strike
Value | | | Expiration
Date | | | # of
Contracts | | | Notional
Amount | | | Premiums
(Received) | | | Market
Value | |
Put - CBOE S&P 500 | | | 1,200.000 | | | | 03/19/2021 | | | | 11 | | | $ | 1 | | | $ | (60 | ) | | $ | (1 | ) |
Put - CBOE S&P 500 | | | 1,700.000 | | | | 06/18/2021 | | | | 13 | | | | 1 | | | | (45 | ) | | | (7 | ) |
Put - CBOE S&P 500 | | | 1,900.000 | | | | 09/17/2021 | | | | 17 | | | | 2 | | | | (61 | ) | | | (22 | ) |
Put - CBOE S&P 500 | | | 2,150.000 | | | | 12/17/2021 | | | | 20 | | | | 2 | | | | (68 | ) | | | (60 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total Written Options | | | | | | | $ | (234 | ) | | $ | (90 | ) |
| | | | | | | | | | | | | |
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, 2020:
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | 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 | | $ | 457 | | | $ | 0 | | | $ | 0 | | | | 457 | | | | | | | $ | (90) | | | $ | 0 | | | $ | 0 | | | $ | (90) | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
(f) FINANCIAL DERIVATIVE INSTRUMENTS: OVER THE COUNTER
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 | |
JPM | | Receive | | DWRTFT Index | | | 176 | | | 0.443% (1-Month USD-LIBOR plus a specified spread) | | Monthly | | 10/13/2021 | | $ | 1,792 | | | $ | 0 | | | $ | 3 | | | $ | 3 | | | $ | 0 | |
| | | | | | | | | | | |
UAG | | Receive | | DWRTFT Index | | | 537 | | | 0.314% (1-Month USD-LIBOR plus a specified spread) | | Monthly | | 08/25/2021 | | | 5,479 | | | | 0 | | | | (2 | ) | | | 0 | | | | (2 | ) |
| | | | | | | | | | | |
| | Receive | | DWRTFT Index | | | 81 | | | 0.394% (1-Month USD-LIBOR plus a specified spread) | | Monthly | | 08/25/2021 | | | 826 | | | | 0 | | | | 0 | | | | 0 | | | | 0 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total Swap Agreements | | | | | | | | | | $ | 0 | | | $ | 1 | | | $ | 3 | | | $ | (2 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | |
| 70 | | PIMCO EQUITY SERIES | | | See Accompanying Notes | |
| | | | | | | | |
| | | | | | December 31, 2020 | | (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, 2020:
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | 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) | |
JPM | | $ | 0 | | | $ | 0 | | | $ | 3 | | | $ | 3 | | | | | | | $ | 0 | | | $ | 0 | | | $ | 0 | | | $ | 0 | | | $ | 3 | | | $ | 0 | | | $ | 3 | |
UAG | | | 0 | | | | 0 | | | | 0 | | | | 0 | | | | | | | | 0 | | | | 0 | | | | (2 | ) | | | (2 | ) | | | (2 | ) | | | (60 | ) | | | (62 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total Over the Counter | | $ | 0 | | | $ | 0 | | | $ | 3 | | | $ | 3 | | | | | | | $ | 0 | | | $ | 0 | | | $ | (2 | ) | | $ | (2 | ) | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| (1) | Receive represents that the Fund receives payments for any positive net return on the underlying reference. The Fund makes payments for any negative net return on such underlying reference. Pay represents that the Fund receives payments for any negative net return on the underlying reference. The Fund makes payments for any positive net 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. |
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 and Other 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, 2020:
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | 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 | | | $ | 457 | | | $ | 0 | | | $ | 0 | | | $ | 457 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Over the counter | |
Swap Agreements | | $ | 0 | | | $ | 0 | | | $ | 3 | | | $ | 0 | | | $ | 0 | | | $ | 3 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
| | $ | 0 | | | $ | 0 | | | $ | 460 | | | $ | 0 | | | $ | 0 | | | $ | 460 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
|
Financial Derivative Instruments - Liabilities | |
Exchange-traded or centrally cleared | |
Written Options | | $ | 0 | | | $ | 0 | | | $ | 90 | | | $ | 0 | | | $ | 0 | | | $ | 90 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Over the counter | |
Swap Agreements | | $ | 0 | | | $ | 0 | | | $ | 2 | | | $ | 0 | | | $ | 0 | | | $ | 2 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
| | $ | 0 | | | $ | 0 | | | $ | 92 | | | $ | 0 | | | $ | 0 | | | $ | 92 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
The effect of Financial Derivative Instruments on the Statements of Operations for the period ended December 31, 2020:
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | 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 | | | $ | (410 | ) | | $ | 0 | | | $ | 0 | | | $ | (410 | ) |
Written Options | | | 0 | | | | 0 | | | | 92 | | | | 0 | | | | 0 | | | | 92 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
| | $ | 0 | | | $ | 0 | | | $ | (318 | ) | | $ | 0 | | | $ | 0 | | | $ | (318 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | |
Over the counter | |
Swap Agreements | | $ | 0 | | | $ | 0 | | | $ | 878 | | | $ | 0 | | | $ | 0 | | | $ | 878 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
| | $ | 0 | | | $ | 0 | | | $ | 560 | | | $ | 0 | | | $ | 0 | | | $ | 560 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
|
Net Change in Unrealized Appreciation (Depreciation) on Financial Derivative Instruments | |
Exchange-traded or centrally cleared | |
Purchased Options | | $ | 0 | | | $ | 0 | | | $ | (83 | ) | | $ | 0 | | | $ | 0 | | | $ | (83 | ) |
Written Options | | | 0 | | | | 0 | | | | 3 | | | | 0 | | | | 0 | | | | 3 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
| | $ | 0 | | | $ | 0 | | | $ | (80 | ) | | $ | 0 | | | $ | 0 | | | $ | (80 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | |
Over the counter | |
Swap Agreements | | $ | 0 | | | $ | 0 | | | $ | 51 | | | $ | 0 | | | $ | 0 | | | $ | 51 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
| | $ | 0 | | | $ | 0 | | | $ | (29 | ) | | $ | 0 | | | $ | 0 | | | $ | (29 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | |
| See Accompanying Notes | | | SEMIANNUAL REPORT | | | | | | | DECEMBER 31, 2020 | | | 71 |
| | | | | | | | |
| Schedule of Investments | | PIMCO REALPATH® Blend Income Fund | | (Cont.) | | December 31, 2020 | | (Unaudited) |
FAIR VALUE MEASUREMENTS
The following is a summary of the fair valuations according to the inputs used as of December 31, 2020 in valuing the Fund’s assets and liabilities:
| | | | | | | | | | | | | | | | |
| Category and Subcategory | | Level 1 | | | Level 2 | | | Level 3 | | | Fair
Value at
12/31/2020 | |
Investments in Securities, at Value | | | | | | | | | | | | | | | | |
Mutual Funds | | $ | 87,021 | | | $ | 0 | | | $ | 0 | | | $ | 87,021 | |
Short-Term Instruments | | | | | | | | | | | | | | | | |
Repurchase Agreements | | | 0 | | | | 485 | | | | 0 | | | | 485 | |
U.S. Treasury Bills | | | 0 | | | | 321 | | | | 0 | | | | 321 | |
| | | | | | | | | | | | | | | | |
| | $ | 87,021 | | | $ | 806 | | | $ | 0 | | | $ | 87,827 | |
| | | | | | | | | | | | | | | | |
| | | | |
Investments in Affiliates, at Value | | | | | | | | | | | | | | | | |
Mutual Funds | | | 123,736 | | | | 0 | | | | 0 | | | | 123,736 | |
Short-Term Instruments | | | | | | | | | | | | | | | | |
Central Funds Used for Cash Management Purposes | | | 12,868 | | | | 0 | | | | 0 | | | | 12,868 | |
| | | | | | | | | | | | | | | | |
| | $ | 136,604 | | | $ | 0 | | | $ | 0 | | | $ | 136,604 | |
| | | | | | | | | | | | | | | | |
| | | | |
Total Investments | | $ | 223,625 | | | $ | 806 | | | $ | 0 | | | $ | 224,431 | |
| | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | |
| Category and Subcategory | | Level 1 | | | Level 2 | | | Level 3 | | | Fair
Value at
12/31/2020 | |
Financial Derivative Instruments - Assets | |
Exchange-traded or centrally cleared | | $ | 0 | | | $ | 457 | | | $ | 0 | | | $ | 457 | |
Over the counter | | | 0 | | | | 3 | | | | 0 | | | | 3 | |
| | | | | | | | | | | | | | | | |
| | $ | 0 | | | $ | 460 | | | $ | 0 | | | $ | 460 | |
| | | | | | | | | | | | | | | | |
|
Financial Derivative Instruments - Liabilities | |
Exchange-traded or centrally cleared | | | 0 | | | | (90 | ) | | | 0 | | | | (90 | ) |
Over the counter | | | 0 | | | | (2 | ) | | | 0 | | | | (2 | ) |
| | | | | | | | | | | | | | | | |
| | $ | 0 | | | $ | (92 | ) | | $ | 0 | | | $ | (92 | ) |
| | | | | | | | | | | | | | | | |
| | | | |
Total Financial Derivative Instruments | | $ | 0 | | | $ | 368 | | | $ | 0 | | | $ | 368 | |
| | | | | | | | | | | | | | | | |
| | | | |
Totals | | $ | 223,625 | | | $ | 1,174 | | | $ | 0 | | | $ | 224,799 | |
| | | | | | | | | | | | | | | | |
There were no significant transfers into or out of Level 3 during the period ended December 31, 2020.
| | | | | | |
| 72 | | PIMCO EQUITY SERIES | | | See Accompanying Notes | |
| | | | | | |
| Notes to Financial Statements | | | | December 31, 2020 | | (Unaudited) |
1. ORGANIZATION
PIMCO Equity Series (the “Trust”) was established as a Delaware statutory trust on March 30, 2010. 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 and series of PIMCO Funds sub-advised by Gurtin Municipal Bond Management (“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 functional and reporting currency for the Funds is the U.S. dollar. 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) Multi-Class 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 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 2060 Fund | | | | | | | Quarterly | | | | Quarterly | |
| | | |
PIMCO REALPATH® Blend Income Fund | | | | | | | Quarterly | | | | Quarterly | |
In addition, each Fund distributes any net capital gains it earns from the sale of portfolio securities to shareholders no less frequently than annually. Net short-term capital gains may be paid more frequently.
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
| | | | | | | | | | | | |
| | | | SEMIANNUAL REPORT | | | | | | | DECEMBER 31, 2020 | | | 73 |
| | | | | | |
| Notes to Financial Statements | | (Cont.) | | | | |
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.
Separately, if a Fund determines that a portion of a distribution may be comprised of amounts from capital gains, paid in capital, or other capital sources in accordance with its policies, accounting records, and accounting practices, the Fund will notify shareholders of the estimated composition of such distribution through a Section 19 Notice. For these purposes, a Fund determines 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 determined 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 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 provided to shareholders when such information is available.
Distributions classified as a tax basis return of capital at a Fund’s fiscal year end, if any, are reflected on the Statements of Changes in Net Assets and have been recorded to paid in capital on the Statements of Assets and Liabilities. In addition, other amounts have been reclassified between distributable earnings (accumulated loss) and paid in capital on the Statements of Assets and Liabilities to more appropriately conform U.S. GAAP to tax characterizations of distributions.
(d) New Accounting Pronouncements and Regulatory Updates In March 2020, the Financial Accounting Standards Board issued an Accounting Standards Update (“ASU”), ASU 2020-04, which provides optional guidance to ease the potential accounting burden associated
with transitioning away from the London Interbank Offered Rate and other reference rates that are expected to be discontinued. The ASU is effective immediately upon release of the update on March 12, 2020 through December 31, 2022. At this time, management is evaluating implications of these changes on the financial statements.
In October 2020, the U.S. Securities and Exchange Commission (“SEC”) adopted a rule related to the use of derivatives, short sales, reverse repurchase agreements and certain other transactions by registered investment companies that rescinds and withdraws the guidance of the SEC and its staff regarding asset segregation and cover transactions. Subject to certain exceptions, the rule requires funds to trade derivatives and other transactions that create future payment or delivery obligations (except reverse repurchase agreements and similar financing transactions) subject to a value-at-risk leverage limit, certain derivatives risk management program and reporting requirements. The rule went into effect on February 19, 2021 and funds will have an eighteen-month transition period to comply with the rule and related reporting requirements. At this time, management is evaluating the implications of these changes on the financial statements.
In October 2020, the SEC adopted a rule regarding the ability of a fund to invest in other funds. The rule allows a fund to acquire shares of another fund in excess of certain limitations currently imposed by the Act without obtaining individual exemptive relief from the SEC, subject to certain conditions. The rule also included the rescission of certain exemptive relief from the SEC and guidance from the SEC staff for funds to invest in other funds. The effective date for the rule was January 19, 2021. At this time, management is evaluating the implications of these changes on the financial statements.
In December 2020, the SEC adopted a rule addressing fair valuation of fund investments. The new rule sets forth requirements for good faith determinations of fair value as well as for the performance of fair value determinations, including related oversight and reporting obligations. The new rule also defines “readily available market quotations” for purposes of the definition of “value” under the Act, and the SEC noted that this definition would apply in all contexts under the Act. The effective date for the rule is March 8, 2021. The SEC adopted an eighteen-month transition period beginning from the effective date for both the new rule and the associated new recordkeeping requirements. At this time, management is evaluating the implications of these changes on the financial statements.
3. INVESTMENT VALUATION AND FAIR VALUE MEASUREMENTS
(a) Investment Valuation Policies The price of a Fund’s shares is based on the Fund’s NAV. The NAV of a Fund, or each of its share classes, as applicable, is determined by dividing the total value of
| | | | | | |
| | | | December 31, 2020 | | (Unaudited) |
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 (normally 4:00 p.m., Eastern time) (“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. If regular trading on the NYSE closes earlier than scheduled, each Fund reserves the right to either (i) calculate its NAV as of the earlier closing time or (ii) calculate its NAV as of the normally scheduled close of regular trading on the NYSE for that day. Each Fund generally does not calculate its NAV on days during which the NYSE is closed. However, if the NYSE is closed on a day it would normally be open for business, each Fund reserves the right to calculate its NAV as of the normally scheduled close of regular trading on the NYSE for that day or such other time that the Fund may determine.
For purposes of calculating NAV, portfolio securities and other assets for which market quotes are readily available are valued at market value. Market value is generally determined on the basis of official closing prices or the last reported sales prices, or if no sales are reported, based on quotes obtained from established market makers or prices (including evaluated prices) supplied by the Funds’ approved pricing services, quotation reporting systems and other third-party sources (together, “Pricing Services”). The Funds will normally use pricing data for domestic equity securities received shortly after the NYSE Close and do not normally take into account trading, clearances or settlements that take place after the NYSE Close. 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 are 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 are 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
| | | | | | | | | | | | |
| | | | SEMIANNUAL REPORT | | | | | | | DECEMBER 31, 2020 | | | 75 |
| | | | | | |
| Notes to Financial Statements | | (Cont.) | | | | |
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 Board. 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 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
| | | | | | |
| | | | December 31, 2020 | | (Unaudited) |
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.
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, London Interbank Offered Rate 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 or a significant portion 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 Advisory Fees or Supervisory and Administrative Fees to the Adviser. The Central Funds are considered to be affiliated with the Funds. A complete schedule of portfolio holdings for each affiliate fund is filed with the SEC for the first and third quarters of each fiscal year on Form N-PORT and is available at the SEC’s website at www.sec.gov. A copy of each Acquired Fund’s shareholder report is also available at the SEC’s website at www.sec.gov, and a copy of each affiliate
| | | | | | | | | | | | |
| | | | SEMIANNUAL REPORT | | | | | | | DECEMBER 31, 2020 | | | 77 |
| | | | | | |
| Notes to Financial Statements | | (Cont.) | | | | |
fund’s shareholder report is available on the Funds’ website at www.pimco.com, or upon request, as applicable. The tables below show the Funds’ transactions in and earnings from investments in the affiliated Funds for the period ended December 31, 2020 (amounts in thousands†):
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| PIMCO REALPATH® Blend 2025 Fund | |
| Underlying PIMCO Funds | | | | | Market Value
06/30/2020 | | | Purchases
at Cost | | | Proceeds
from Sales | | | Net
Realized
Gain (Loss) | | | Change in
Unrealized
Appreciation
(Depreciation) | | | Market Value
12/31/2020 | | | Dividend
Income(1) | | | Realized Net
Capital Gain
Distributions(1) | |
| | | | | | | | | |
PIMCO Emerging Markets Local Currency and Bond Fund | | | | | | $ | 4,471 | | | $ | 3,451 | | | $ | 0 | | | $ | 0 | | | $ | 636 | | | $ | 8,558 | | | $ | 161 | | | $ | 0 | |
| | | | | | | | | |
PIMCO High Yield Fund | | | | | | | 2,745 | | | | 2,049 | | | | 0 | | | | 0 | | | | 257 | | | | 5,051 | | | | 87 | | | | 0 | |
| | | | | | | | | |
PIMCO Income Fund | | | | | | | 15,972 | | | | 13,978 | | | | (473 | ) | | | (17 | ) | | | 1,209 | | | | 30,669 | | | | 483 | | | | 0 | |
| | | | | | | | | |
PIMCO International Bond Fund (U.S. Dollar-Hedged) | | | | | | | 1,501 | | | | 1,451 | | | | 0 | | | | 0 | | | | 55 | | | | 3,007 | | | | 36 | | | | 0 | |
| | | | | | | | | |
PIMCO Long-Term Real Return Fund | | | | | | | 6,633 | | | | 8,238 | | | | (271 | ) | | | (2 | ) | | | (2,375 | ) | | | 12,223 | | | | 464 | | | | 2,648 | |
| | | | | | | | | |
PIMCO Long-Term U.S. Government Fund | | | | | | | 2,852 | | | | 3,658 | | | | (144 | ) | | | (6 | ) | | | (1,140 | ) | | | 5,220 | | | | 222 | | | | 777 | |
| | | | | | | | | |
PIMCO Real Return Fund | | | | | | | 5,457 | | | | 5,074 | | | | (167 | ) | | | (1 | ) | | | 234 | | | | 10,597 | | | | 168 | | | | 0 | |
| | | | | | | | | |
PIMCO Short-Term Floating NAV Portfolio III | | | | | | | 6,003 | | | | 34,110 | | | | (22,900 | ) | | | 0 | | | | 1 | | | | 17,214 | | | | 10 | | | | 0 | |
| | | | | | | | | |
PIMCO Total Return Fund | | | | | | | 13,168 | | | | 13,403 | | | | (461 | ) | | | (2 | ) | | | (538 | ) | | | 25,570 | | | | 784 | | | | 199 | |
| | | | | | | | | |
Totals | | | | | | $ | 58,802 | | | $ | 85,412 | | | $ | (24,416 | ) | | $ | (28 | ) | | $ | (1,661 | ) | | $ | 118,109 | | | $ | 2,415 | | | $ | 3,624 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| PIMCO REALPATH® Blend 2030 Fund | |
| Underlying PIMCO Funds | | | | | Market Value
06/30/2020 | | | Purchases
at Cost | | | Proceeds
from Sales | | | Net
Realized
Gain (Loss) | | | Change in
Unrealized
Appreciation
(Depreciation) | | | Market Value
12/31/2020 | | | Dividend
Income(1) | | | Realized Net
Capital Gain
Distributions(1) | |
| | | | | | | | | |
PIMCO Emerging Markets Local Currency and Bond Fund | | | | | | $ | 4,828 | | | $ | 2,733 | | | $ | 0 | | | $ | 0 | | | $ | 656 | | | $ | 8,217 | | | $ | 162 | | | $ | 0 | |
| | | | | | | | | |
PIMCO High Yield Fund | | | | | | | 3,319 | | | | 1,885 | | | | 0 | | | | 0 | | | | 296 | | | | 5,500 | | | | 98 | | | | 0 | |
| | | | | | | | | |
PIMCO Income Fund | | | | | | | 16,847 | | | | 11,475 | | | | (384 | ) | | | (13 | ) | | | 1,197 | | | | 29,122 | | | | 475 | | | | 0 | |
| | | | | | | | | |
PIMCO International Bond Fund (U.S. Dollar-Hedged) | | | | | | | 1,544 | | | | 1,168 | | | | 0 | | | | 0 | | | | 52 | | | | 2,764 | | | | 35 | | | | 0 | |
| | | | | | | | | |
PIMCO Long-Term Real Return Fund | | | | | | | 4,246 | | | | 5,886 | | | | (141 | ) | | | 0 | | | | (1,437 | ) | | | 8,554 | | | | 286 | | | | 1,608 | |
| | | | | | | | | |
PIMCO Long-Term U.S. Government Fund | | | | | | | 1,843 | | | | 2,504 | | | | 0 | | | | 0 | | | | (693 | ) | | | 3,654 | | | | 136 | | | | 472 | |
| | | | | | | | | |
PIMCO Real Return Fund | | | | | | | 5,582 | | | | 4,092 | | | | (131 | ) | | | (1 | ) | | | 225 | | | | 9,767 | | | | 166 | | | | 0 | |
| | | | | | | | | |
PIMCO Short-Term Floating NAV Portfolio III | | | | | | | 7,163 | | | | 31,612 | | | | (31,500 | ) | | | 5 | | | | (4 | ) | | | 7,276 | | | | 12 | | | | 0 | |
| | | | | | | | | |
PIMCO Total Return Fund | | | | | | | 13,469 | | | | 10,923 | | | | (372 | ) | | | (2 | ) | | | (516 | ) | | | 23,502 | | | | 757 | | | | 192 | |
| | | | | | | | | |
Totals | | | | | | $ | 58,841 | | | $ | 72,278 | | | $ | (32,528 | ) | | $ | (11 | ) | | $ | (224 | ) | | $ | 98,356 | | | $ | 2,127 | | | $ | 2,272 | |
|
| PIMCO REALPATH® Blend 2035 Fund | |
| Underlying PIMCO Funds | | | | | Market Value
06/30/2020 | | | Purchases
at Cost | | | Proceeds
from Sales | | | Net
Realized
Gain (Loss) | | | Change in
Unrealized
Appreciation
(Depreciation) | | | Market Value
12/31/2020 | | | Dividend
Income(1) | | | Realized Net
Capital Gain
Distributions(1) | |
| | | | | | | | | |
PIMCO Emerging Markets Local Currency and Bond Fund | | | | | | $ | 3,195 | | | $ | 2,337 | | | $ | 0 | | | $ | 0 | | | $ | 439 | | | $ | 5,971 | | | $ | 110 | | | $ | 0 | |
| | | | | | | | | |
PIMCO High Yield Fund | | | | | | | 2,498 | | | | 1,799 | | | | 0 | | | | 0 | | | | 229 | | | | 4,526 | | | | 76 | | | | 0 | |
| | | | | | | | | |
PIMCO Income Fund | | | | | | | 10,809 | | | | 9,041 | | | | (353 | ) | | | (12 | ) | | | 786 | | | | 20,271 | | | | 311 | | | | 0 | |
| | | | | | | | | |
PIMCO International Bond Fund (U.S. Dollar-Hedged) | | | | | | | 973 | | | | 843 | | | | 0 | | | | 0 | | | | 32 | | | | 1,848 | | | | 22 | | | | 0 | |
| | | | | | | | | |
PIMCO Long-Term Real Return Fund | | | | | | | 853 | | | | 1,927 | | | | 0 | | | | 0 | | | | (309 | ) | | | 2,471 | | | | 59 | | | | 342 | |
| | | | | | | | | |
PIMCO Long-Term U.S. Government Fund | | | | | | | 378 | | | | 827 | | | | 0 | | | | 0 | | | | (149 | ) | | | 1,056 | | | | 28 | | | | 100 | |
| | | | | | | | | |
PIMCO Real Return Fund | | | | | | | 3,429 | | | | 3,075 | | | | (115 | ) | | | 0 | | | | 141 | | | | 6,530 | | | | 105 | | | | 0 | |
| | | | | | | | | |
PIMCO Short-Term Floating NAV Portfolio III | | | | | | | 5,251 | | | | 25,010 | | | | (16,000 | ) | | | 7 | | | | (6 | ) | | | 14,262 | | | | 10 | | | | 0 | |
| | | | | | | | | |
PIMCO Total Return Fund | | | | | | | 8,275 | | | | 8,083 | | | | (312 | ) | | | (1 | ) | | | (331 | ) | | | 15,714 | | | | 479 | | | | 122 | |
| | | | | | | | | |
Totals | | | | | | $ | 35,661 | | | $ | 52,942 | | | $ | (16,780 | ) | | $ | (6 | ) | | $ | 832 | | | $ | 72,649 | | | $ | 1,200 | | | $ | 564 | |
| | | | | | |
| | | | December 31, 2020 | | (Unaudited) |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| PIMCO REALPATH® Blend 2040 Fund | |
| Underlying PIMCO Funds | | | | | Market Value
06/30/2020 | | | Purchases
at Cost | | | Proceeds
from Sales | | | Net
Realized
Gain (Loss) | | | Change in
Unrealized
Appreciation
(Depreciation) | | | Market Value
12/31/2020 | | | Dividend
Income(1) | | | Realized Net
Capital Gain
Distributions(1) | |
| | | | | | | | | |
PIMCO Emerging Markets Local Currency and Bond Fund | | | | | | $ | 2,959 | | | $ | 1,966 | | | $ | 0 | | | $ | 0 | | | $ | 392 | | | $ | 5,317 | | | $ | 97 | | | $ | 0 | |
| | | | | | | | | |
PIMCO High Yield Fund | | | | | | | 2,782 | | | | 1,761 | | | | 0 | | | | 0 | | | | 244 | | | | 4,787 | | | | 81 | | | | 0 | |
| | | | | | | | | |
PIMCO Income Fund | | | | | | | 9,483 | | | | 7,441 | | | | (372 | ) | | | (11 | ) | | | 659 | | | | 17,200 | | | | 262 | | | | 0 | |
| | | | | | | | | |
PIMCO International Bond Fund (U.S. Dollar-Hedged) | | | | | | | 743 | | | | 690 | | | | 0 | | | | 0 | | | | 24 | | | | 1,457 | | | | 17 | | | | 0 | |
| | | | | | | | | |
PIMCO Long-Term Real Return Fund | | | | | | | 0 | | | | 340 | | | | 0 | | | | 0 | | | | 0 | | | | 340 | | | | 0 | | | | 0 | |
| | | | | | | | | |
PIMCO Long-Term U.S. Government Fund | | | | | | | 0 | | | | 146 | | | | 0 | | | | 0 | | | | 0 | | | | 146 | | | | 0 | | | | 0 | |
| | | | | | | | | |
PIMCO Real Return Fund | | | | | | | 2,764 | | | | 2,388 | | | | (111 | ) | | | (1 | ) | | | 108 | | | | 5,148 | | | | 82 | | | | 0 | |
| | | | | | | | | |
PIMCO Short-Term Floating NAV Portfolio III | | | | | | | 4,583 | | | | 24,510 | | | | (19,700 | ) | | | 10 | | | | (9 | ) | | | 9,394 | | | | 10 | | | | 0 | |
| | | | | | | | | |
PIMCO Total Return Fund | | | | | | | 6,672 | | | | 6,267 | | | | (295 | ) | | | (1 | ) | | | (254 | ) | | | 12,389 | | | | 369 | | | | 94 | |
| | | | | | | | | |
Totals | | | | | | $ | 29,986 | | | $ | 45,509 | | | $ | (20,478 | ) | | $ | (3 | ) | | $ | 1,164 | | | $ | 56,178 | | | $ | 918 | | | $ | 94 | |
|
| PIMCO REALPATH® Blend 2045 Fund | |
| Underlying PIMCO Funds | | | | | Market Value
06/30/2020 | | | Purchases
at Cost | | | Proceeds
from Sales | | | Net
Realized
Gain (Loss) | | | Change in
Unrealized
Appreciation
(Depreciation) | | | Market Value
12/31/2020 | | | Dividend
Income(1) | | | Realized Net
Capital Gain
Distributions(1) | |
| | | | | | | | | |
PIMCO Emerging Markets Local Currency and Bond Fund | | | | | | $ | 2,195 | | | $ | 1,410 | | | $ | 0 | | | $ | 0 | | | $ | 283 | | | $ | 3,888 | | | $ | 71 | | | $ | 0 | |
| | | | | | | | | |
PIMCO High Yield Fund | | | | | | | 2,595 | | | | 1,475 | | | | 0 | | | | 0 | | | | 220 | | | | 4,290 | | | | 73 | | | | 0 | |
| | | | | | | | | |
PIMCO Income Fund | | | | | | | 6,585 | | | | 4,893 | | | | (230 | ) | | | (7 | ) | | | 448 | | | | 11,689 | | | | 178 | | | | 0 | |
| | | | | | | | | |
PIMCO International Bond Fund (U.S. Dollar-Hedged) | | | | | | | 459 | | | | 396 | | | | 0 | | | | 0 | | | | 14 | | | | 869 | | | | 10 | | | | 0 | |
| | | | | | | | | |
PIMCO Real Return Fund | | | | | | | 1,616 | | | | 1,390 | | | | 0 | | | | 0 | | | | 62 | | | | 3,068 | | | | 47 | | | | 0 | |
| | | | | | | | | |
PIMCO Short-Term Floating NAV Portfolio III | | | | | | | 4,822 | | | | 22,109 | | | | (17,100 | ) | | | 7 | | | | (5 | ) | | | 9,833 | | | | 9 | | | | 0 | |
| | | | | | | | | |
PIMCO Total Return Fund | | | | | | | 4,012 | | | | 3,680 | | | | (159 | ) | | | (1 | ) | | | (147 | ) | | | 7,385 | | | | 215 | | | | 55 | |
| | | | | | | | | |
Totals | | | | | | $ | 22,284 | | | $ | 35,353 | | | $ | (17,489 | ) | | $ | (1 | ) | | $ | 875 | | | $ | 41,022 | | | $ | 603 | | | $ | 55 | |
|
| PIMCO REALPATH® Blend 2050 Fund | |
| Underlying PIMCO Funds | | | | | Market Value
06/30/2020 | | | Purchases
at Cost | | | Proceeds
from Sales | | | Net
Realized
Gain (Loss) | | | Change in
Unrealized
Appreciation
(Depreciation) | | | Market Value
12/31/2020 | | | Dividend
Income(1) | | | Realized Net
Capital Gain
Distributions(1) | |
| | | | | | | | | |
PIMCO Emerging Markets Local Currency and Bond Fund | | | | | | $ | 2,196 | | | $ | 984 | | | $ | 0 | | | $ | 0 | | | $ | 268 | | | $ | 3,448 | | | $ | 67 | | | $ | 0 | |
| | | | | | | | | |
PIMCO High Yield Fund | | | | | | | 2,977 | | | | 1,273 | | | | 0 | | | | 0 | | | | 244 | | | | 4,494 | | | | 81 | | | | 0 | |
| | | | | | | | | |
PIMCO Income Fund | | | | | | | 6,046 | | | | 3,350 | | | | (187 | ) | | | (5 | ) | | | 386 | | | | 9,590 | | | | 156 | | | | 0 | |
| | | | | | | | | |
PIMCO International Bond Fund (U.S. Dollar-Hedged) | | | | | | | 353 | | | | 235 | | | | 0 | | | | 0 | | | | 10 | | | | 598 | | | | 7 | | | | 0 | |
| | | | | | | | | |
PIMCO Real Return Fund | | | | | | | 1,236 | | | | 831 | | | | 0 | | | | 0 | | | | 46 | | | | 2,113 | | | | 33 | | | | 0 | |
| | | | | | | | | |
PIMCO Short-Term Floating NAV Portfolio III | | | | | | | 4,685 | | | | 21,710 | | | | (18,000 | ) | | | 13 | | | | (11 | ) | | | 8,397 | | | | 11 | | | | 0 | |
| | | | | | | | | |
PIMCO Total Return Fund | | | | | | | 3,055 | | | | 2,242 | | | | (108 | ) | | | 0 | | | | (104 | ) | | | 5,085 | | | | 153 | | | | 39 | |
| | | | | | | | | |
Totals | | | | | | $ | 20,548 | | | $ | 30,625 | | | $ | (18,295 | ) | | $ | 8 | | | $ | 839 | | | $ | 33,725 | | | $ | 508 | | | $ | 39 | |
| | | | | | | | | | | | |
| | | | SEMIANNUAL REPORT | | | | | | | DECEMBER 31, 2020 | | | 79 |
| | | | | | |
| Notes to Financial Statements | | (Cont.) | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| PIMCO REALPATH® Blend 2055 Fund | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Underlying PIMCO Funds | | | | | Market Value
06/30/2020 | | | Purchases
at Cost | | | Proceeds
from Sales | | | Net
Realized
Gain (Loss) | | | Change in
Unrealized
Appreciation
(Depreciation) | | | Market Value
12/31/2020 | | | Dividend
Income(1) | | | Realized Net
Capital Gain
Distributions(1) | |
| | | | | | | | | |
PIMCO Emerging Markets Local Currency and Bond Fund | | | | | | $ | 963 | | | $ | 618 | | | $ | 0 | | | $ | 0 | | | $ | 126 | | | $ | 1,707 | | | $ | 32 | | | $ | 0 | |
| | | | | | | | | |
PIMCO High Yield Fund | | | | | | | 1,395 | | | | 893 | | | | 0 | | | | 0 | | | | 120 | | | | 2,408 | | | | 40 | | | | 0 | |
| | | | | | | | | |
PIMCO Income Fund | | | | | | | 2,580 | | | | 1,893 | | | | (102 | ) | | | (3 | ) | | | 175 | | | | 4,543 | | | | 70 | | | | 0 | |
| | | | | | | | | |
PIMCO International Bond Fund (U.S. Dollar-Hedged) | | | | | | | 123 | | | | 95 | | | | 0 | | | | 0 | | | | 4 | | | | 222 | | | | 3 | | | | 0 | |
| | | | | | | | | |
PIMCO Real Return Fund | | | | | | | 490 | | | | 377 | | | | 0 | | | | 0 | | | | 18 | | | | 885 | | | | 14 | | | | 0 | |
| | | | | | | | | |
PIMCO Short-Term Floating NAV Portfolio III | | | | | | | 3,081 | | | | 11,105 | | | | (9,100 | ) | | | 4 | | | | (3 | ) | | | 5,087 | | | | 5 | | | | 0 | |
| | | | | | | | | |
PIMCO Total Return Fund | | | | | | | 1,181 | | | | 995 | | | | 0 | | | | 0 | | | | (45 | ) | | | 2,131 | | | | 64 | | | | 16 | |
| | | | | | | | | |
Totals | | | | | | $ | 9,813 | | | $ | 15,976 | | | $ | (9,202 | ) | | $ | 1 | | | $ | 395 | | | $ | 16,983 | | | $ | 228 | | | $ | 16 | |
| | | | | | | | | |
| PIMCO REALPATH® Blend 2060 Fund | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Underlying PIMCO Funds | | | | | Market Value
06/30/2020 | | | Purchases
at Cost | | | Proceeds
from Sales | | | Net
Realized
Gain (Loss) | | | Change in
Unrealized
Appreciation
(Depreciation) | | | Market Value
12/31/2020 | | | Dividend
Income(1) | | | Realized Net
Capital Gain
Distributions(1) | |
| | | | | | | | | |
PIMCO Emerging Markets Local Currency and Bond Fund | | | | | | $ | 46 | | | $ | 63 | | | $ | (2 | ) | | $ | 0 | | | $ | 9 | | | $ | 116 | | | $ | 2 | | | $ | 0 | |
| | | | | | | | | |
PIMCO High Yield Fund | | | | | | | 68 | | | | 101 | | | | (4 | ) | | | 0 | | | | 8 | | | | 173 | | | | 3 | | | | 0 | |
| | | | | | | | | |
PIMCO Income Fund | | | | | | | 124 | | | | 193 | | | | (12 | ) | | | (1 | ) | | | 11 | | | | 315 | | | | 4 | | | | 0 | |
| | | | | | | | | |
PIMCO International Bond Fund (U.S. Dollar-Hedged) | | | | | | | 6 | | | | 10 | | | | 0 | | | | 0 | | | | 0 | | | | 16 | | | | 0 | | | | 0 | |
| | | | | | | | | |
PIMCO Real Return Fund | | | | | | | 22 | | | | 33 | | | | 0 | | | | 0 | | | | 1 | | | | 56 | | | | 1 | | | | 0 | |
| | | | | | | | | |
PIMCO Short-Term Floating NAV Portfolio III | | | | | | | 0 | | | | 600 | | | | (300 | ) | | | 0 | | | | 0 | | | | 300 | | | | 0 | | | | 0 | |
| | | | | | | | | |
PIMCO Total Return Fund | | | | | | | 56 | | | | 95 | | | | (6 | ) | | | 0 | | | | (3 | ) | | | 142 | | | | 4 | | | | 1 | |
| | | | | | | | | |
Totals | | | | | | $ | 322 | | | $ | 1,095 | | | $ | (324 | ) | | $ | (1 | ) | | $ | 26 | | | $ | 1,118 | | | $ | 14 | | | $ | 1 | |
| | | | | | | | | |
| PIMCO REALPATH® Blend Income Fund | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Underlying PIMCO Funds | | | | | Market Value
06/30/2020 | | | Purchases
at Cost | | | Proceeds
from Sales | | | Net
Realized
Gain (Loss) | | | Change in
Unrealized
Appreciation
(Depreciation) | | | Market Value
12/31/2020 | | | Dividend
Income(1) | | | Realized Net
Capital Gain
Distributions(1) | |
| | | | | | | | | |
PIMCO Emerging Markets Local Currency and Bond Fund | | | | | | $ | 7,330 | | | $ | 2,372 | | | $ | 0 | | | $ | 0 | | | $ | 880 | | | $ | 10,582 | | | $ | 222 | | | $ | 0 | |
| | | | | | | | | |
PIMCO High Yield Fund | | | | | | | 3,832 | | | | 1,368 | | | | 0 | | | | 0 | | | | 311 | | | | 5,511 | | | | 103 | | | | 0 | |
| | | | | | | | | |
PIMCO Income Fund | | | | | | | 26,930 | | | | 10,513 | | | | (382 | ) | | | (13 | ) | | | 1,700 | | | | 38,748 | | | | 688 | | | | 0 | |
| | | | | | | | | |
PIMCO International Bond Fund (U.S. Dollar-Hedged) | | | | | | | 2,706 | | | | 1,111 | | | | 0 | | | | 0 | | | | 83 | | | | 3,900 | | | | 53 | | | | 0 | |
| | | | | | | | | |
PIMCO Long-Term Real Return Fund | | | | | | | 8,752 | | | | 6,745 | | | | (287 | ) | | | 2 | | | | (2,462 | ) | | | 12,750 | | | | 497 | | | | 2,814 | |
| | | | | | | | | |
PIMCO Long-Term U.S. Government Fund | | | | | | | 3,763 | | | | 2,894 | | | | 0 | | | | 0 | | | | (1,212 | ) | | | 5,445 | | | | 238 | | | | 826 | |
| | | | | | | | | |
PIMCO Real Return Fund | | | | | | | 9,426 | | | | 3,990 | | | | (139 | ) | | | (1 | ) | | | 356 | | | | 13,632 | | | | 239 | | | | 0 | |
| | | | | | | | | |
PIMCO Short-Term Floating NAV Portfolio III | | | | | | | 10,456 | | | | 26,511 | | | | (24,100 | ) | | | 0 | | | | 1 | | | | 12,868 | | | | 10 | | | | 0 | |
| | | | | | | | | |
PIMCO Total Return Fund | | | | | | | 22,998 | | | | 11,310 | | | | (424 | ) | | | (2 | ) | | | (714 | ) | | | 33,168 | | | | 1,107 | | | | 276 | |
| | | | | | | | | |
Totals | | | | | | $ | 96,193 | | | $ | 66,814 | | | $ | (25,332 | ) | | $ | (14 | ) | | $ | (1,057 | ) | | $ | 136,604 | | | $ | 3,157 | | | $ | 3,916 | |
| † | 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, unless otherwise advised on IRS Form 1099-DIV. 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.
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, 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
| | | | | | |
| | | | December 31, 2020 | | (Unaudited) |
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 which do not distribute interest on a current basis and tend to be subject to a greater risk than interest-paying securities of similar maturities.
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. BORROWINGS AND OTHER FINANCING TRANSACTIONS
The Funds (and where applicable, certain Acquired Funds and Underlying PIMCO 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 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) Interfund Lending In accordance with an exemptive order (the “Order”) from the SEC, the Funds of the Trust may participate in a joint lending and borrowing facility for temporary purposes (the “Interfund Lending Program”), subject to compliance with the terms and conditions of the Order, and to the extent permitted by each Funds’ investment policies and restrictions. The Funds are currently permitted to borrow under the Interfund Lending Program. A lending fund may lend in aggregate up to 15% of its current net assets at the time of the interfund loan, but may not lend more than 5% of its net assets to any one borrowing fund through the Interfund Lending Program. A borrowing fund may not borrow through the Interfund Lending Program or from any other source if its total outstanding borrowings immediately after the borrowing would be more than 33 1/3% of its total assets (or any lower threshold provided for by the funds’ investment restrictions). If a borrowing funds’ total outstanding borrowings exceed 10% of its total assets, each of its outstanding interfund loans will be subject to collateralization of at least 102% of the outstanding principal value of the loan. All interfund loans are for temporary or emergency purposes and the interfund loan rate to be charged will be the average of the highest current overnight repurchase agreement rate available to a lending fund and the bank loan rate, as calculated according to a formula established by the Board.
During the period ended December 31, 2020, the Funds did not participate in the Interfund Lending Program.
6. 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
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| | | | SEMIANNUAL REPORT | | | | | | | DECEMBER 31, 2020 | | | 81 |
| | | | | | |
| Notes to Financial Statements | | (Cont.) | | | | |
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) 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 and subsequently marked to market to reflect the current value of the option written. These amounts 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.
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.
(b) 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 certain of a Fund’s investment policies and restrictions, swap agreements, like other derivative instruments, may be valued by a Fund at market value, notional value or full exposure 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.
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| | | | December 31, 2020 | | (Unaudited) |
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.
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 AND OTHER RISKS
(a) 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
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 2060
Fund | | | PIMCO
REALPATH®
Blend Income
Fund | |
| | | | | | | | | | |
New Fund | | | | | | | — | | | | — | | | | — | | | | — | | | | — | | | | — | | | | — | | | | X | | | | — | |
| | | | | | | | | | |
Small Fund | | | | | | | — | | | | — | | | | — | | | | — | | | | — | | | | — | | | | X | | | | X | | | | — | |
| | | | | | | | | | |
Allocation | | | | | | | X | | | | X | | | | X | | | | X | | | | X | | | | X | | | | X | | | | X | | | | — | |
| | | | | | | | | | |
Acquired Fund | | | | | | | X | | | | X | | | | X | | | | X | | | | X | | | | X | | | | X | | | | X | | | | X | |
| | | | | | | | | | |
Investment in Acquired Fund Risks | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | |
New Fund | | | | | | | X | | | | X | | | | X | | | | X | | | | X | | | | X | | | | X | | | | X | | | | X | |
| | | | | | | | | | |
Small Fund | | | | | | | 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 | |
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| | | | SEMIANNUAL REPORT | | | | | | | DECEMBER 31, 2020 | | | 83 |
| | | | | | |
| Notes to Financial Statements | | (Cont.) | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Risks | | | | | 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 2060
Fund | | | PIMCO
REALPATH®
Blend Income
Fund | |
| | | | | | | | | | |
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 | |
| | | | | | | | | | |
Convertible Securities | | | | | | | X | | | | X | | | | X | | | | X | | | | X | | | | X | | | | X | | | | X | | | | X | |
| | | | | | | | | | |
Exchange-Traded Fund | | | | | | | X | | | | X | | | | X | | | | X | | | | X | | | | X | | | | X | | | | X | | | | X | |
| | | | | | | | | | |
LIBOR Transition | | | | | | | X | | | | X | | | | X | | | | X | | | | X | | | | X | | | | X | | | | X | | | | X | |
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.
Small Fund Risk is the risk that a smaller Fund may not achieve investment or trading efficiencies. Additionally, a smaller Fund may be more adversely affected by large purchases or redemptions on Fund shares.
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 Fund Risk is the risk that a new 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 Funds may not attract sufficient assets to achieve investment and trading efficiencies.
Small Fund Risk is the risk that a smaller Fund may not achieve investment or trading efficiencies. Additionally, a smaller Fund may be more adversely affected by large purchases or redemptions of Fund shares
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.
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
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| | | | December 31, 2020 | | (Unaudited) |
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, or is perceived (whether by market participants, rating agencies, pricing services or otherwise) as 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 investments at an advantageous time or price or achieve its desired level of exposure to a certain sector. Liquidity risk may result from the lack of an active market, reduced number and capacity of traditional market participants to make a market in fixed income securities, and may be magnified in a rising interest rate environment or other circumstances where investor redemptions from fixed income funds may be higher than normal, causing increased supply in the market due to selling activity.
Derivatives Risk 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 and valuation complexity. Changes in the value of a 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. The primary credit risk on derivatives that are exchange-traded or traded through a central clearing counterparty resides with a Fund’s clearing broker, or the clearinghouse. 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, public health emergencies, 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.
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| | | | SEMIANNUAL REPORT | | | | | | | DECEMBER 31, 2020 | | | 85 |
| | | | | | |
| Notes to Financial Statements | | (Cont.) | | | | |
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 actual or potential conflicts of interest, legislative, regulatory, or tax restrictions, policies or developments may affect the investment techniques available to PIMCO and the individual portfolio manager in connection with managing a Fund and may cause PIMCO to restrict or prohibit participation in certain investments. 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 character, timing and/or amount of a 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 Act and may not be subject to all the investor protections of the Act. There is no guarantee that the investment objective of a Subsidiary will be achieved.
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, among other reasons, because of exchange rules, market prices of shares of an exchange-traded fund may fluctuate rapidly and materially, or shares of an exchange-traded fund may trade significantly above or below net asset value, any of which may cause losses to a Fund invested in the exchange-traded fund.
LIBOR Transition Risk is the risk related to the anticipated discontinuation of the London Interbank Offered Rate (“LIBOR”) by the end of 2021. Certain instruments held by a Fund rely in some fashion upon LIBOR. Although the transition process away from LIBOR has become increasingly well-defined in advance of the anticipated discontinuation date, there remains uncertainty regarding the nature of any replacement rate, and any potential effects of the transition away from LIBOR on a Fund or on certain instruments in which the Fund invests can be difficult to ascertain. The transition process may involve, among other things, increased volatility or illiquidity in markets for instruments that currently rely on LIBOR and may result in a reduction in value of certain instruments held by a Fund.
(b) Other Risks
In general, a Fund may be subject to additional risks, including, but not limited to, risks related to government regulation and intervention in financial markets, operational risks, risks associated with financial, economic and global market disruptions, and cybersecurity risks. Please see a Fund’s prospectus and Statement of Additional Information for a more detailed description of the risks of investing in a Fund. Please see the Important Information section of this report for additional discussion of certain regulatory and market developments (such as the anticipated discontinuation of the London Interbank Offered Rate) that may impact a Fund’s performance.
Market Disruption Risk A Fund is subject to investment and operational risks associated with financial, economic and other global
| | | | | | |
| | | | December 31, 2020 | | (Unaudited) |
market developments and disruptions, including those arising from war, terrorism, market manipulation, government interventions, defaults and shutdowns, political changes or diplomatic developments, public health emergencies (such as the spread of infectious diseases, pandemics and epidemics) and natural/environmental disasters, which can all negatively impact the securities markets, interest rates, auctions, secondary trading, ratings, credit risk, inflation, deflation and other factors relating to the Fund’s investments or the Investment Manager’s operations and cause a Fund to lose value. These events can also impair the technology and other operational systems upon which a Fund’s service providers, including PIMCO as a Fund’s investment adviser, rely, and could otherwise disrupt a Fund’s service providers’ ability to fulfill their obligations to a Fund. For example, the recent spread of an infectious respiratory illness caused by a novel strain of coronavirus (known as COVID-19) has caused volatility, severe market dislocations and liquidity constraints in many markets, including markets for the securities a Fund holds, and may adversely affect a Fund’s investments and operations. Please see the Important Information section for additional discussion of the COVID-19 pandemic.
Government Intervention in Financial Markets Federal, state, and other governments, their regulatory agencies, or self-regulatory organizations may take actions that affect the regulation of the instruments in which a Fund invests, or the issuers of such instruments, in ways that are unforeseeable. Legislation or regulation may also change the way in which a Fund itself is regulated. Such legislation or regulation could limit or preclude a Fund’s ability to achieve its investment objective. Furthermore, volatile financial markets can expose a Fund to greater market and liquidity risk and potential difficulty in valuing portfolio instruments held by the Fund. The value of a Fund’s holdings is also generally subject to the risk of future local, national, or global economic disturbances based on unknown weaknesses in the markets in which a Fund invests. In addition, it is not certain that the U.S. Government will intervene in response to a future market disturbance and the effect of any such future intervention cannot be predicted. It is difficult for issuers to prepare for the impact of future financial downturns, although companies can seek to identify and manage future uncertainties through risk management programs.
Regulatory Risk Financial entities, such as investment companies and investment advisers, are generally subject to extensive government regulation and intervention. Government regulation and/or intervention may change the way a Fund is regulated, affect the expenses incurred directly by a Fund and the value of its investments, and limit and/or preclude a Fund’s ability to achieve its investment objective. Government regulation may change frequently and may have significant adverse consequences. Moreover, government regulation may have unpredictable and unintended effects.
Operational Risk An investment in a Fund, like any fund, can involve operational risks arising from factors such as processing errors, human errors, inadequate or failed internal or external processes, failures in systems and technology, changes in personnel and errors caused by third-party service providers. The occurrence of any of these failures, errors or breaches could result in a loss of information, regulatory scrutiny, reputational damage or other events, any of which could have a material adverse effect on a Fund. While a Fund seeks to minimize such events through controls and oversight, there may still be failures that could cause losses to the Fund.
Cyber Security Risk As the use of technology has become more prevalent in the course of business, the Funds have become potentially more susceptible to operational and information security risks resulting from breaches in cyber security. A breach in cyber security refers to both intentional and unintentional cyber events that may, among other things, cause a Fund to lose proprietary information, suffer data corruption and/or destruction or lose operational capacity, result in the unauthorized release or other misuse of confidential information, or otherwise disrupt normal business operations. Cyber security failures or breaches may result in financial losses to a Fund and its shareholders. These failures or breaches may also result in disruptions to business operations, potentially resulting in financial losses; interference with a Fund’s ability to calculate its net asset value, process shareholder transactions or otherwise transact business with shareholders; impediments to trading; violations of applicable privacy and other laws; regulatory fines; penalties; reputational damage; reimbursement or other compensation costs; additional compliance and cyber security risk management costs and other adverse consequences. In addition, substantial costs may be incurred in order to prevent any cyber incidents in the future.
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 are intended to reduce the counterparty risk associated with relevant transactions by specifying credit protection mechanisms and providing standardization that is intended to improve 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
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| | | | SEMIANNUAL REPORT | | | | | | | DECEMBER 31, 2020 | | | 87 |
| | | | | | |
| Notes to Financial Statements | | (Cont.) | | | | |
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 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 certain 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 certain 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. 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 generally 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. 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 or as required by regulation. Similarly, if required by regulation, the Funds may be required to post additional collateral beyond coverage of daily exposure. These amounts, if any, may (or if required by law, will) be segregated with a third-party custodian. To the extent the Funds are required by regulation to post additional collateral beyond coverage of daily exposure, they could potentially incur costs, including in procuring eligible assets to meet collateral requirements, associated with such posting. 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
| | | | | | |
| | | | December 31, 2020 | | (Unaudited) |
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 A | | | Class R | |
PIMCO REALPATH® Blend 2025 Fund | | | | | | | 0.01% | | | | | | | | 0.02% | | | | 0.02% | | | | 0.27% | | | | 0.27% | * |
PIMCO REALPATH® Blend 2030 Fund | | | | | | | 0.01% | | | | | | | | 0.02% | | | | 0.02% | | | | 0.27% | | | | 0.27% | * |
PIMCO REALPATH® Blend 2035 Fund | | | | | | | 0.02% | | | | | | | | 0.02% | | | | 0.02% | | | | 0.27% | | | | 0.27% | * |
PIMCO REALPATH® Blend 2040 Fund | | | | | | | 0.03% | | | | | | | | 0.02% | | | | 0.02% | | | | 0.27% | | | | 0.27% | * |
PIMCO REALPATH® Blend 2045 Fund | | | | | | | 0.03% | | | | | | | | 0.02% | | | | 0.02% | | | | 0.27% | | | | 0.27% | * |
PIMCO REALPATH® Blend 2050 Fund | | | | | | | 0.03% | | | | | | | | 0.02% | | | | 0.02% | | | | 0.27% | | | | 0.27% | * |
PIMCO REALPATH® Blend 2055 Fund | | | | | | | 0.03% | | | | | | | | 0.02% | | | | 0.02% | | | | 0.27% | | | | 0.27% | * |
PIMCO REALPATH® Blend 2060 Fund | | | | | | | 0.03% | | | | | | | | 0.02% | | | | 0.02% | | | | 0.27% | | | | N/A | |
PIMCO REALPATH® Blend Income Fund | | | | | | | 0.01% | | | | | | | | 0.02% | | | | 0.02% | | | | 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 Administrative Class shares of each Fund pursuant to Rule 12b-1 under the Act (the “Administrative Class Plan”). Under the terms of the Administrative Class Plan, a Fund may compensate the Distributor for providing, or procuring through financial intermediaries, distribution, administrative, recordkeeping, shareholder and/or related services with respect to Administrative Class shares. The Administrative Class Plan permits a Fund to make total payments at an annual rate of up to 0.25% of the average daily net assets attributable to the Administrative Class shares.
The Trust paid distribution and servicing fees at effective rates as 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 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, 2020, the Distributor retained $3,282 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 expenses; (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
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| | | | SEMIANNUAL REPORT | | | | | | | DECEMBER 31, 2020 | | | 89 |
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| Notes to Financial Statements | | (Cont.) | | | | |
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.
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, pro rata share of expenses related to obtaining or maintaining a Legal Entity Identifier 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. The waiver is reflected on the Statements of Operations as a component of Waiver and/or Reimbursement by PIMCO.
In any month in which the investment advisory contract or supervision and administration agreement is in effect, PIMCO is entitled to reimbursement by each Fund of any portion of the supervisory and administrative fee waived or reimbursed as set forth above (the “Reimbursement Amount”) during the previous thirty-six months from the date of the waiver, provided that such amount paid to PIMCO will not: i) together with any organizational expenses, pro rata share of expenses related to obtaining or maintaining a Legal Entity Identifier and pro rata Trustee fees, exceed, for such month, the Expense Limit (or the amount of the expense limit in place at the time the amount being recouped was originally waived if lower than the Expense Limit); ii) exceed the total Reimbursement Amount; or iii) include any amounts previously reimbursed to PIMCO. The total recoverable amounts to PIMCO at December 31, 2020, were as follows (amounts in thousands†):
| | | | | | | | | | | | | | | | | | | | |
| | | | | | Expiring within | | | | |
| | | | | |
| Fund Name | | | | | 12 months | | | 13-24 months | | | 25-36 months | | | Total | |
| | | | | |
PIMCO RealPath® Blend 2025 Fund | | | | | | $ | 0 | | | $ | 0 | | | $ | 5 | | | $ | 5 | |
| | | | | |
PIMCO RealPath® Blend 2030 Fund | | | | | | | 0 | | | | 0 | | | | 7 | | | | 7 | |
| | | | | |
PIMCO RealPath® Blend 2035 Fund | | | | | | | 0 | | | | 0 | | | | 7 | | | | 7 | |
| | | | | |
PIMCO RealPath® Blend 2040 Fund | | | | | | | 0 | | | | 0 | | | | 8 | | | | 8 | |
| | | | | |
PIMCO RealPath® Blend 2045 Fund | | | | | | | 0 | | | | 1 | | | | 8 | | | | 9 | |
| | | | | |
PIMCO RealPath® Blend 2050 Fund | | | | | | | 0 | | | | 2 | | | | 9 | | | | 11 | |
| | | | | |
PIMCO RealPath® Blend 2055 Fund | | | | | | | 0 | | | | 0 | | | | 3 | | | | 3 | |
| | | | | |
PIMCO RealPath® Blend 2060 Fund | | | | | | | 0 | | | | 0 | | | | 68 | | | | 68 | |
| | | | | |
PIMCO RealPath® Blend Income Fund | | | | | | | 0 | | | | 0 | | | | 5 | | | | 5 | |
| † | A zero balance may reflect actual amounts rounding to less than one thousand. |
(f) Acquired Fund Fees and Expenses Acquired Fund expenses incurred by the Funds, if any, 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.
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.
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.
| | | | | | |
| | | | December 31, 2020 | | (Unaudited) |
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, including brokerage commissions or dealer
mark-ups and other transaction costs on the sale of securities and reinvestments in other securities, which are borne by the Fund. 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 when distributed to shareholders). The transaction costs 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, 2020, were as follows (amounts in thousands†):
| | | | | | | | | | | | | | | | | | | | |
| | | | | | U.S. Government/Agency | | | All Other | |
| | | | | |
| Fund Name | | | | | Purchases | | | Sales | | | Purchases | | | Sales | |
| | | | | |
PIMCO REALPATH® Blend 2025 Fund | | | | | | $ | 0 | | | $ | 0 | | | $ | 78,834 | | | $ | 3,072 | |
| | | | | |
PIMCO REALPATH® Blend 2030 Fund | | | | | | | 0 | | | | 0 | | | | 82,723 | | | | 14,627 | |
| | | | | |
PIMCO REALPATH® Blend 2035 Fund | | | | | | | 0 | | | | 0 | | | | 61,152 | | | | 449 | |
| | | | | |
PIMCO REALPATH® Blend 2040 Fund | | | | | | | 0 | | | | 0 | | | | 64,251 | | | | 8,507 | |
| | | | | |
PIMCO REALPATH® Blend 2045 Fund | | | | | | | 0 | | | | 0 | | | | 49,846 | | | | 5,561 | |
| | | | | |
PIMCO REALPATH® Blend 2050 Fund | | | | | | | 0 | | | | 0 | | | | 35,492 | | | | 2,369 | |
| | | | | |
PIMCO REALPATH® Blend 2055 Fund | | | | | | | 0 | | | | 0 | | | | 24,248 | | | | 2,782 | |
| | | | | |
PIMCO REALPATH® Blend 2060 Fund | | | | | | | 0 | | | | 0 | | | | 3,551 | | | | 303 | |
| | | | | |
PIMCO REALPATH® Blend Income Fund | | | | | | | 0 | | | | 0 | | | | 52,308 | | | | 1,757 | |
| | | | | | | | | | | | | | | | | | | | |
| † | A zero balance may reflect actual amounts rounding to less than one thousand. |
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 REALPATH® Blend 2025 Fund | | | PIMCO REALPATH® Blend 2030 Fund | |
| | | | | |
| | | | | Six Months Ended
12/31/2020
(Unaudited) | | | Year Ended
06/30/2020 | | | Six Months Ended
12/31/2020
(Unaudited) | | | Year Ended
06/30/2020 | |
| | | | | | | | | |
| | | | | Shares | | | Amount | | | Shares | | | Amount | | | Shares | | | Amount | | | Shares | | | Amount | |
Receipts for shares sold | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | |
Institutional Class | | | | | 7,281 | | | $ | 90,650 | | | | 5,446 | | | $ | 62,831 | | | | 6,586 | | | $ | 83,054 | | | | 5,976 | | | $ | 69,709 | |
| | | | | | | | | |
Administrative Class | | | | | 66 | | | | 819 | | | | 856 | | | | 9,802 | | | | 133 | | | | 1,653 | | | | 839 | | | | 9,655 | |
| | | | | | | | | |
Class A | | | | | 172 | | | | 2,145 | | | | 95 | | | | 1,096 | | | | 41 | | | | 513 | | | | 164 | | | | 1,925 | |
Issued as reinvestment of distributions | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | |
Institutional Class | | | | | 478 | | | | 6,190 | | | | 136 | | | | 1,586 | | | | 408 | | | | 5,399 | | | | 199 | | | | 2,365 | |
| | | | | | | | | |
Administrative Class | | | | | 84 | | | | 1,084 | | | | 66 | | | | 764 | | | | 70 | | | | 918 | | | | 65 | | | | 774 | |
| | | | | | | | | |
Class A | | | | | 21 | | | | 273 | | | | 13 | | | | 150 | | | | 16 | | | | 214 | | | | 15 | | | | 177 | |
Cost of shares redeemed | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | |
Institutional Class | | | | | (1,282 | ) | | | (16,038 | ) | | | (1,566 | ) | | | (17,815 | ) | | | (1,389 | ) | | | (17,744 | ) | | | (1,732 | ) | | | (19,492 | ) |
| | | | | | | | | |
Administrative Class | | | | | (361 | ) | | | (4,513 | ) | | | (341 | ) | | | (3,845 | ) | | | (140 | ) | | | (1,787 | ) | | | (419 | ) | | | (4,783 | ) |
| | | | | | | | | |
Class A | | | | | (145 | ) | | | (1,857 | ) | | | (42 | ) | | | (474 | ) | | | (27 | ) | | | (334 | ) | | | (127 | ) | | | (1,463 | ) |
| | | | | | | | | |
Net increase (decrease) resulting from Fund share transactions | | | | | 6,314 | | | $ | 78,753 | | | | 4,663 | | | $ | 54,095 | | | | 5,698 | | | $ | 71,886 | | | | 4,980 | | | $ | 58,867 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
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| | | | SEMIANNUAL REPORT | | | | | | | DECEMBER 31, 2020 | | | 91 |
| | | | | | |
| Notes to Financial Statements | | (Cont.) | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | PIMCO REALPATH® Blend 2035 Fund | | | PIMCO REALPATH® Blend 2040 Fund | |
| | | | | |
| | | | | Six Months Ended
12/31/2020
(Unaudited) | | | Year Ended
06/30/2020 | | | Six Months Ended
12/31/2020
(Unaudited) | | | Year Ended
06/30/2020 | |
| | | | | | | | | |
| | | | | Shares | | | Amount | | | Shares | | | Amount | | | Shares | | | Amount | | | Shares | | | Amount | |
Receipts for shares sold | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | |
Institutional Class | | | | | 5,825 | | | $ | 73,477 | | | | 4,095 | | | $ | 48,247 | | | | 5,480 | | | $ | 69,959 | | | | 3,630 | | | $ | 42,768 | |
| | | | | | | | | |
Administrative Class | | | | | 63 | | | | 802 | | | | 609 | | | | 7,020 | | | | 90 | | | | 1,127 | | | | 544 | | | | 6,307 | |
| | | | | | | | | |
Class A | | | | | 46 | | | | 588 | | | | 170 | | | | 1,954 | | | | 44 | | | | 551 | | | | 160 | | | | 1,862 | |
Issued as reinvestment of distributions | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | |
Institutional Class | | | | | 198 | | | | 2,652 | | | | 134 | | | | 1,594 | | | | 179 | | | | 2,425 | | | | 189 | | | | 2,279 | |
| | | | | | | | | |
Administrative Class | | | | | 35 | | | | 464 | | | | 53 | | | | 630 | | | | 22 | | | | 294 | | | | 39 | | | | 473 | |
| | | | | | | | | |
Class A | | | | | 9 | | | | 121 | | | | 12 | | | | 143 | | | | 9 | | | | 118 | | | | 20 | | | | 237 | |
Cost of shares redeemed | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | |
Institutional Class | | | | | (1,017 | ) | | | (12,850 | ) | | | (1,290 | ) | | | (14,620 | ) | | | (1,140 | ) | | | (14,564 | ) | | | (1,389 | ) | | | (16,002 | ) |
| | | | | | | | | |
Administrative Class | | | | | (161 | ) | | | (2,024 | ) | | | (300 | ) | | | (3,272 | ) | | | (97 | ) | | | (1,229 | ) | | | (206 | ) | | | (2,242 | ) |
| | | | | | | | | |
Class A | | | | | (48 | ) | | | (606 | ) | | | (94 | ) | | | (1,072 | ) | | | (102 | ) | | | (1,263 | ) | | | (173 | ) | | | (1,945 | ) |
| | | | | | | | | |
Net increase (decrease) resulting from Fund share transactions | | | | | 4,950 | | | $ | 62,624 | | | | 3,389 | | | $ | 40,624 | | | | 4,485 | | | $ | 57,418 | | | | 2,814 | | | $ | 33,737 | |
| | | |
| | | | | PIMCO REALPATH® Blend 2045 Fund | | | PIMCO REALPATH® Blend 2050 Fund | |
| | | | | |
| | | | | Six Months Ended
12/31/2020
(Unaudited) | | | Year Ended 06/30/2020 | | | Six Months Ended
12/31/2020
(Unaudited) | | | Year Ended 06/30/2020 | |
| | | | | | | | | |
| | | | | Shares | | | Amount | | | Shares | | | Amount | | | Shares | | | Amount | | | Shares | | | Amount | |
Receipts for shares sold | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | |
Institutional Class | | | | | 4,256 | | | $ | 54,309 | | | | 3,055 | | | $ | 35,705 | | | | 3,653 | | | $ | 46,603 | | | | 2,725 | | | $ | 31,580 | |
| | | | | | | | | |
Administrative Class | | | | | 110 | | | | 1,414 | | | | 463 | | | | 5,341 | | | | 38 | | | | 485 | | | | 358 | | | | 4,118 | |
| | | | | | | | | |
Class A | | | | | 23 | | | | 286 | | | | 74 | | | | 863 | | | | 34 | | | | 425 | | | | 89 | | | | 1,004 | |
Issued as reinvestment of distributions | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | |
Institutional Class | | | | | 127 | | | | 1,736 | | | | 196 | | | | 2,361 | | | | 120 | | | | 1,644 | | | | 233 | | | | 2,820 | |
| | | | | | | | | |
Administrative Class | | | | | 15 | | | | 198 | | | | 33 | | | | 400 | | | | 14 | | | | 195 | | | | 44 | | | | 539 | |
| | | | | | | | | |
Class A | | | | | 3 | | | | 40 | | | | 10 | | | | 124 | | | | 3 | | | | 35 | | | | 11 | | | | 130 | |
Cost of shares redeemed | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | |
Institutional Class | | | | | (875 | ) | | | (11,175 | ) | | | (1,326 | ) | | | (15,077 | ) | | | (971 | ) | | | (12,423 | ) | | | (1,171 | ) | | | (13,499 | ) |
| | | | | | | | | |
Administrative Class | | | | | (67 | ) | | | (856 | ) | | | (186 | ) | | | (2,085 | ) | | | (149 | ) | | | (1,935 | ) | | | (302 | ) | | | (3,464 | ) |
| | | | | | | | | |
Class A | | | | | (50 | ) | | | (615 | ) | | | (135 | ) | | | (1,518 | ) | | | (96 | ) | | | (1,188 | ) | | | (131 | ) | | | (1,495 | ) |
| | | | | | | | | |
Net increase (decrease) resulting from Fund share transactions | | | | | 3,542 | | | $ | 45,337 | | | | 2,184 | | | $ | 26,114 | | | | 2,646 | | | $ | 33,841 | | | | 1,856 | | | $ | 21,733 | |
| | | |
| | | | | PIMCO REALPATH® Blend 2055 Fund | | | PIMCO REALPATH® Blend 2060 Fund | |
| | | | | |
| | | | | Six Months Ended
12/31/2020
(Unaudited) | | | Year Ended 06/30/2020 | | | Six Months Ended
12/31/2020
(Unaudited) | | | Inception date
through 06/30/2020(a) | |
| | | | | | | | | |
| | | | | Shares | | | Amount | | | Shares | | | Amount | | | Shares | | | Amount | | | Shares | | | Amount | |
Receipts for shares sold | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | |
Institutional Class | | | | | 2,829 | | | $ | 36,275 | | | | 2,686 | | | $ | 31,279 | | | | 319 | | | $ | 3,262 | | | | 301 | | | $ | 3,011 | |
| | | | | | | | | |
Administrative Class | | | | | 92 | | | | 1,169 | | | | 405 | | | | 4,695 | | | | 0 | | | | 2 | | | | 1 | | | | 10 | |
| | | | | | | | | |
Class A | | | | | 33 | | | | 412 | | | | 73 | | | | 840 | | | | 47 | | | | 474 | | | | 3 | | | | 33 | |
Issued as reinvestment of distributions | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | |
Institutional Class | | | | | 52 | | | | 719 | | | | 103 | | | | 1,244 | | | | 4 | | | | 49 | | | | 0 | | | | 0 | |
| | | | | | | | | |
Administrative Class | | | | | 3 | | | | 46 | | | | 9 | | | | 110 | | | | 0 | | | | 0 | | | | 0 | | | | 0 | |
| | | | | | | | | |
Class A | | | | | 1 | | | | 16 | | | | 7 | | | | 81 | | | | 0 | | | | 4 | | | | 0 | | | | 0 | |
Cost of shares redeemed | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | |
Institutional Class | | | | | (704 | ) | | | (8,989 | ) | | | (1,107 | ) | | | (12,926 | ) | | | (32 | ) | | | (324 | ) | | | 0 | | | | 0 | |
| | | | | | | | | |
Administrative Class | | | | | (60 | ) | | | (761 | ) | | | (48 | ) | | | (540 | ) | | | 0 | | | | 0 | | | | 0 | | | | 0 | |
| | | | | | | | | |
Class A | | | | | (76 | ) | | | (957 | ) | | | (82 | ) | | | (940 | ) | | | 0 | | | | (2 | ) | | | 0 | | | | (3 | ) |
| | | | | | | | | |
Net increase (decrease) resulting from Fund share transactions | | | | | 2,170 | | | $ | 27,930 | | | | 2,046 | | | $ | 23,843 | | | | 338 | | | $ | 3,465 | | | | 305 | | | $ | 3,051 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | |
| | | | December 31, 2020 | | (Unaudited) |
| | | | | | | | | | | | | | | | | | |
| | | | | PIMCO REALPATH® Blend Income Fund | |
| | | |
| | | | | Six Months Ended
12/31/2020
(Unaudited) | | | Year Ended
06/30/2020 | |
| | | | | |
| | | | | Shares | | | Amount | | | Shares | | | Amount | |
Receipts for shares sold | | | | | | | | | | | | | | | | | | |
| | | | | |
Institutional Class | | | | | 4,857 | | | $ | 59,542 | | | | 6,527 | | | $ | 74,835 | |
| | | | | |
Administrative Class | | | | | 94 | | | | 1,162 | | | | 322 | | | | 3,680 | |
| | | | | |
Class A | | | | | 599 | | | | 7,439 | | | | 575 | | | | 6,449 | |
Issued as reinvestment of distributions | | | | | | | | | | | | | | | | | | |
| | | | | |
Institutional Class | | | | | 505 | | | | 6,341 | | | | 81 | | | | 930 | |
| | | | | |
Administrative Class | | | | | 99 | | | | 1,241 | | | | 36 | | | | 412 | |
| | | | | |
Class A | | | | | 77 | | | | 966 | | | | 26 | | | | 303 | |
Issued in reorganization^ | | | | | | | | | | | | | | | | | | |
| | | | | |
Institutional Class | | | | | 0 | | | | 0 | | | | 3,894 | | | | 45,204 | |
| | | | | |
Administrative Class | | | | | 0 | | | | 0 | | | | 1,507 | | | | 17,511 | |
| | | | | |
Class A | | | | | 0 | | | | 0 | | | | 429 | | | | 4,958 | |
Cost of shares redeemed | | | | | | | | | | | | | | | | | | |
| | | | | |
Institutional Class | | | | | (1,555 | ) | | | (19,215 | ) | | | (3,251 | ) | | | (36,815 | ) |
| | | | | |
Administrative Class | | | | | (280 | ) | | | (3,453 | ) | | | (343 | ) | | | (3,806 | ) |
| | | | | |
Class A | | | | | (91 | ) | | | (1,092 | ) | | | (239 | ) | | | (2,671 | ) |
| | | | | |
Net increase (decrease) resulting from Fund share transactions | | | | | 4,305 | | | $ | 52,931 | | | | 9,564 | | | $ | 110,990 | |
| † | A zero balance may reflect actual amounts rounding to less than one thousand. |
| ^ | See Note 15 in the Notes to Financial Statements. |
| (a) | Inception date of the Fund was December 31, 2019. |
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, as of December 31, 2020. Some of these shareholders may be considered related parties, which may include, but are not limited to, the investment adviser 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 | |
| | | | | |
PIMCO REALPATH® Blend 2025 Fund | | | | | | | 1 | | | | 0 | | | | 15% | | | | 0% | |
| | | | | |
PIMCO REALPATH® Blend 2030 Fund | | | | | | | 1 | | | | 0 | | | | 11% | | | | 0% | |
| | | | | |
PIMCO REALPATH® Blend 2035 Fund | | | | | | | 1 | | | | 0 | | | | 12% | | | | 0% | |
| | | | | |
PIMCO REALPATH® Blend 2055 Fund | | | | | | | 1 | | | | 0 | | | | 12% | | | | 0% | |
| | | | | |
PIMCO REALPATH® Blend 2060 Fund | | | | | | | 1 | | | | 1 | | | | 13% | | | | 47% | |
| | | | | | | | | | | | | | | | | | | | |
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, 2020, 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.
| | | | | | | | | | | | |
| | | | SEMIANNUAL REPORT | | | | | | | DECEMBER 31, 2020 | | | 93 |
| | | | | | |
| Notes to Financial Statements | | (Cont.) | | December 31, 2020 | | (Unaudited) |
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, 2020, the Funds had the following post-effective capital losses with no expiration (amounts in thousands†):
| | | | | | | | | | | | |
| | | | | | Short-Term | | | Long-Term | |
| | | |
PIMCO REALPATH® Blend 2025 Fund | | | | | | $ | 0 | | | $ | 0 | |
| | | |
PIMCO REALPATH® Blend 2030 Fund | | | | | | | 0 | | | | 0 | |
| | | |
PIMCO REALPATH® Blend 2035 Fund | | | | | | | 0 | | | | 0 | |
| | | |
PIMCO REALPATH® Blend 2040 Fund | | | | | | | 0 | | | | 0 | |
| | | |
PIMCO REALPATH® Blend 2045 Fund | | | | | | | 0 | | | | 0 | |
| | | |
PIMCO REALPATH® Blend 2050 Fund | | | | | | | 0 | | | | 0 | |
| | | |
PIMCO REALPATH® Blend 2055 Fund | | | | | | | 0 | | | | 0 | |
| | | |
PIMCO REALPATH® Blend 2060 Fund | | | | | | | 13 | | | | 0 | |
| | | |
PIMCO REALPATH® Blend Income Fund | | | | | | | 0 | | | | 0 | |
| † | A zero balance may reflect actual amounts rounding to less than one thousand. |
As of December 31, 2020, 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 2025 Fund | | | | | | $ | 202,860 | | | $ | 18,731 | | | $ | (2,691.00 | ) | | $ | 16,040 | |
| | | | | |
PIMCO REALPATH® Blend 2030 Fund | | | | | | | 208,851 | | | | 24,420 | | | | (1,877 | ) | | | 22,543 | |
| | | | | |
PIMCO REALPATH® Blend 2035 Fund | | | | | | | 174,663 | | | | 21,347 | | | | (325 | ) | | | 21,022 | |
| | | | | |
PIMCO REALPATH® Blend 2040 Fund | | | | | | | 175,604 | | | | 25,640 | | | | (57 | ) | | | 25,583 | |
| | | | | |
PIMCO REALPATH® Blend 2045 Fund | | | | | | | 156,735 | | | | 25,181 | | | | (44 | ) | | | 25,137 | |
| | | | | |
PIMCO REALPATH® Blend 2050 Fund | | | | | | | 159,236 | | | | 29,390 | | | | (39 | ) | | | 29,351 | |
| | | | | |
PIMCO REALPATH® Blend 2055 Fund | | | | | | | 88,213 | | | | 14,127 | | | | (23 | ) | | | 14,104 | |
| | | | | |
PIMCO REALPATH® Blend 2060 Fund | | | | | | | 6,442 | | | | 691 | | | | (2 | ) | | | 689 | |
| | | | | |
PIMCO REALPATH® Blend Income Fund | | | | | | | 208,621 | | | | 18,472 | | | | (2,294 | ) | | | 16,178 | |
| † | 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. |
| | | | | | |
| Glossary: | | (abbreviations that may be used in the preceding statements) | | | | (Unaudited) |
| | | | | | | | | | |
|
Counterparty Abbreviations: |
| | | | | |
| CBK | | Citibank N.A. | | JPM | | JP Morgan Chase Bank N.A. | | UAG | | UBS AG Stamford |
| | | | | |
| FICC | | Fixed Income Clearing Corporation | | | | | | | | |
|
Currency Abbreviations: |
| | | | | |
| USD (or $) | | United States Dollar | | | | | | | | |
|
Exchange Abbreviations: |
| | | | | |
| CBOE | | Chicago Board Options Exchange | | OTC | | Over the Counter | | | | |
|
Index/Spread Abbreviations: |
| | | | | |
| 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 | | | | |
| | | | | | | | | | | | |
| | | | SEMIANNUAL REPORT | | | | | | | DECEMBER 31, 2020 | | | 95 |
| | | | |
| 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 18-19, 2020, 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 PIMCO Dividend and Income Fund , PIMCO RAE Emerging Markets Fund, PIMCO RAE Global ex-US Fund, PIMCO RAE Global Fund, PIMCO RAE International Fund, PIMCO RAE US Fund, PIMCO RAE US Small Fund, PIMCO REALPATH® Blend Income 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 2060 Fund (each, a “Fund,” and collectively, the “Funds”), and Pacific Investment Management Company LLC (“PIMCO”) for an additional one-year term through August 31, 2021.1 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, 2021. 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 Emerging Markets Fund, PIMCO RAE Global ex-US Fund, PIMCO RAE Global Fund, PIMCO RAE International Fund, PIMCO RAE US Fund, PIMCO RAE 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, 2021.
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 for 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, financial information for 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, a memorandum 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. (“Broadridge”), an independent provider of investment company
| 1 | The Board, including a majority of the Independent Trustees, determined to rely on the relief granted by a temporary exemptive order issued by the U.S. Securities and Exchange Commission (the “SEC”) under the Investment Company Act of 1940 that permits fund boards of trustees to approve advisory contracts at a meeting held by remote communications that allows participating trustees to hear one another simultaneously, rather than in-person, in light of the impact of the novel coronavirus (“COVID-19”) pandemic and restrictions on travel and in-person gatherings. The Board determined that reliance on the exemptive order was necessary and appropriate due to circumstances related to current or potential effects of the COVID-19 pandemic and government-mandated restrictions, and prior to commencing the approval meeting, the Board confirmed that all Board members could hear each other simultaneously during the meeting. The Board noted that it would ratify any actions taken at this meeting pursuant to the SEC relief at its next in-person meeting. |
performance information and fee and expense data. The Board received presentations from PIMCO and, where applicable, Research Affiliates and Parametric, 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 18-19, 2020 meeting. The Independent Trustees also met telephonically with counsel to the Trust and the Independent Trustees, including telephonic meetings on July 10, 2020 and July 30, 2020, and conducted a telephonic meeting on July 30, 2020 with management and counsel to the Trust and the Independent Trustees, to discuss the materials presented and other matters deemed relevant to their consideration of the renewal of the Agreements, the Sub-Advisory Agreement and the Portfolio Implementation Agreement. In connection with its review of the Agreements and the Sub-Advisory Agreement, the Board received comparative information on the performance, the risk-adjusted performance and the fees and expenses of other peer group funds and share classes. The Independent Trustees also requested and received supplemental information, including information regarding Fund performance and profitability.
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 weight 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 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, but not limited to: 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 enhancing and investing in its global infrastructure, technology capabilities, risk management processes and the specialized talent needed to stay at the forefront of the competitive investment management industry and to strengthen its ability to deliver services under the Agreements. The Board considered PIMCO’s policies, procedures and systems reasonably designed to assure compliance with applicable laws and regulations, including new regulations impacting the Funds, 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.
In addition, the Trustees considered new services and service enhancements that PIMCO has implemented, including, but not limited to: investing in its cybersecurity program and business continuity functions, including the build-out of a new data center; funding projects and initiatives in support of the Funds; improving PIMCO governance and oversight of key fund administration processes; expanding and engaging a technology consultant to improve certain performance reconciliation processes; enhancing PIMCO’s oversight over certain of the Funds’ service providers; continuing to develop initiatives related to pricing, including, among other items, development of pricing tools and capabilities and continued extensive due diligence regarding pricing vendors; forming a new internal group responsible for the operational aspects of the Liquidity Risk Management Programs; developing compliance and operations processes in connection with regulatory developments; continuing to invest in PIMCO’s technology infrastructure; continuing oversight by the Americas Fund Oversight Committee, which provides senior-level oversight and supervision focused on new and ongoing fund-related business opportunities; expanding engagement with a third party service provider to provide certain additional fund administration services subject to PIMCO’s oversight; investing in the Fund Treasurer’s Office; enhancing a proprietary application to support new trading strategies and increase data precision and administration control; developing a global tax management application that will enable investment professionals to access foreign market and security tax information on a real-time basis; utilizing a service provider’s proprietary software and managed service model to timely meet N-PORT and N-CEN regulatory requirements; upgrading a proprietary application to allow shareholder subscription and redemption data to pass to portfolio managers more quickly and efficiently; implementing a contingent NAV process; continuing to advocate in the public policy
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| Approval of Investment Advisory Contract and Other Agreements | | (Cont.) | | |
arena; developing a proprietary tool to monitor and facilitate potential interfund lending; utilizing a third-party software technology to allow portfolio management teams to run pre-trade calculations regarding new exchange-traded and cleared derivatives; and developing technology solutions to leverage artificial intelligence and machine learning.
Similarly, the Board considered the sub-advisory services provided by Research Affiliates to the RAE Funds. 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 reviewed materials regarding 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 reviewed materials regarding the nature, extent 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.
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, but not limited to, audit, custodial, portfolio accounting,
ordinary 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, 2020 and other performance data, as available, over short- and long-term periods ended June 30, 2020 (the “PIMCO Report”) and from Broadridge concerning the Funds’ performance, as available, over short- and long-term periods ended March 31, 2020 (the “Broadridge 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 Broadridge Report, which were provided in advance of the August 18-19, 2020 meeting.
The Trustees noted the Funds (based on Institutional Class performance) that outperformed their respective benchmark indexes on a net-of-fees basis over the one-, three- and five-year periods ended June 30, 2020. The Board noted the amounts of the assets of the Trust and PIMCO Funds (based on Institutional Class performance) that outperformed their relevant benchmark net-of-fees over the one-, three- and five-year periods ended June 30, 2020. The Board discussed these and other performance-related developments.
The Board reviewed materials indicating that, according to the Broadridge Report, certain Funds had underperformed in comparison to their respective peer groups or benchmark indexes, or both, over short- and long-term periods. PIMCO reported to the Board on the reasons for the underperformance of certain Funds and actions that have been taken by PIMCO throughout the year to attempt to address underperformance.
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 new funds to scale at the outset. The Board noted that PIMCO generally seeks to price new funds competitively against the median total expense ratio of the respective Broadridge peer group, if available, while acknowledging that a fee premium may be appropriate 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, and the competitive marketplace for financial products. 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 the Broadridge Report 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 following: the proposed four basis point reduction in the advisory fee for the PIMCO Dividend and Income Fund; the proposed five basis point reduction in the advisory fee for the PIMCO RAE Global Fund; the proposed 20 basis point reduction in the supervisory and administrative fee for each class of the PIMCO RAE Emerging Markets Fund and PIMCO RAE Global ex-US Fund; the proposed 15 basis point reduction for each class of the PIMCO RAE Global Fund; and the proposed 10 basis point reduction for each class of the PIMCO RAE International Fund, PIMCO RAE US Fund and PIMCO RAE US Small Fund.
The Board also reviewed data comparing certain Funds’ advisory fees to the fee rates PIMCO charges to separate accounts, private funds and sub-advised clients with similar investment strategies. In cases where
the fees for other clients were lower than those charged to the Funds, the Trustees noted that the differences in fees were attributable to various factors, including, but not limited to, differences in the advisory and other services provided by PIMCO to the Funds, differences in the number or extent of the services provided by PIMCO to the Funds, the manner in which similar portfolios may be managed, different requirements with respect to liquidity management and the implementation of other regulatory requirements, and the fact that separate accounts may have other contractual arrangements or arrangements across PIMCO strategies that justify different levels of fees. The Trustees also considered that PIMCO faces increased entrepreneurial, legal and regulatory risk in sponsoring and managing mutual funds and ETFs as compared to separate accounts, external sub-advised funds or other investment products. In addition, the Trustees considered that PIMCO may charge certain private funds with similar investment mandates lower fees than the Funds because such private funds are not required to accept daily redemptions or price their assets on a daily basis, generally do not accept small investors with small account balances and operate under a less complex regulatory regime.
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, legal and regulatory risk 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.
The Board considered the Funds’ supervisory and administrative fees, comparing them to similar funds managed by other investment advisers in the Broadridge Report. 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, ordinary 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
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| Approval of Investment Advisory Contract and Other Agreements | | (Cont.) | | |
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 inherently reflects certain 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 Funds to scale at inception and reinvesting in other important areas of the business that support the Funds. 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 in most cases the Funds’ total expense ratios were lower than the total expense ratios 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 the Broadridge Report, 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 expense limitation agreement in place for all of the Funds and the various fee waiver agreements in place for the Funds of Funds.
Based on the information presented by PIMCO, Research Affiliates and Broadridge, 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, that the fees charged by Research Affiliates under the Sub-Advisory Agreement, and that the total expenses of each Fund and the RAE Funds after the proposals to decrease their fees, as applicable, 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, as well as the resulting level of profits attributable to the Funds. The Board also 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 investment in global infrastructure, technology capabilities, risk management processes and qualified personnel to reinforce and offer new services and to accommodate changing regulatory requirements.
The Board considered the existence of any economies of scale and noted that, to the extent that PIMCO achieves economies of scale in managing the Funds, PIMCO shares the benefits of economies of scale, if any, 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, governance and oversight of those services, and through fee reductions or waivers, the pricing of Funds to scale from inception and the enhancement of services provided to the Funds in return for fees paid. In considering the advisory fees paid by the Funds, the Board also reviewed materials indicating 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 fees over the annual contract period even if the particular Fund’s assets decline and/or operating costs rise. The Trustees also reviewed materials indicating 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.
The Board concluded that the Funds’ cost structures were reasonable and that PIMCO is appropriately sharing economies of scale, if any,
through the Funds’ unified fee structure, generally pricing Funds to scale at inception and reinvesting in its business to provide enhanced and expanded services to the Funds and their 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 also considered that affiliates of PIMCO provide distribution and/or shareholder services to the Funds and their shareholders, for which they may be compensated through distribution and servicing fees paid pursuant to the Funds’ Rule 12b-1 plans or otherwise, such as through all or portions of the sales charges on Class A or Class C shares of the Funds, as applicable. The Board noted 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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| | | | SEMIANNUAL REPORT | | | | | | | December 31, 2020 | | | 101 |
General Information
Investment Adviser and Administrator
Pacific Investment Management Company LLC
650 Newport Center Drive
Newport Beach, CA 92660
Distributor
PIMCO Investments LLC
1633 Broadway
New York, NY 10019
Custodian
State Street Bank and Trust Company
801 Pennsylvania Avenue
Kansas City, MO 64105
Transfer Agent
DST Asset Manager Solutions, Inc.
Institutional Class, I-2, Administrative Class
430 W 7th Street STE 219024
Kansas City, MO 64105-1407
DST Asset Manager Solutions, Inc.
Class A, Class C, Class R
430 W 7th Street STE 219294
Kansas City, MO 64105-1407
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 Funds listed on the Report cover.
PES4002SAR_123120
PIMCO EQUITY SERIES®
Semiannual Report
December 31, 2020
PIMCO RAFI Dynamic Multi-Factor Emerging Markets Equity ETF | MFEM | NYSE Arca
PIMCO RAFI Dynamic Multi-Factor International Equity ETF | MFDX | NYSE Arca
PIMCO RAFI Dynamic Multi-Factor U.S. Equity ETF | MFUS | NYSE Arca
PIMCO RAFI ESG U.S. ETF | RAFE | NYSE Arca
As permitted by regulations adopted by the Securities and Exchange Commission, paper copies of the Fund’s annual and semi-annual shareholder reports will no longer be sent by mail from the financial intermediary, such as a broker-dealer or bank, which offers the Fund unless you specifically request paper copies of the reports from the financial intermediary. Instead, the shareholder reports will be made available on a website, and the financial intermediary will notify you by mail each time a report is posted and provide you with a website link to access the report. Instructions for requesting paper copies will be provided by your financial intermediary.
If you already elected to receive shareholder reports electronically, you will not be affected by this change and you need not take any action. You may elect to receive shareholder reports and other communications from the financial intermediary electronically by following the instructions provided by the financial intermediary.
You may elect to receive all future reports in paper free of charge from the financial intermediary. You should contact the financial intermediary if you wish to continue receiving paper copies of your shareholder reports. Your election to receive reports in paper will apply to all funds held in your account at the financial intermediary.
Table of Contents
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.
Chairman’s Letter
Dear Shareholder,
We hope that you and your family are remaining safe and healthy during these challenging times. We continue to work tirelessly to navigate markets and manage the assets that you have entrusted with us. Following this letter is the PIMCO Equity Series Semiannual Report, which covers the six-month reporting period ended December 31, 2020. On the subsequent pages, you will find specific details regarding investment results and a discussion of the factors that most affected performance during the reporting period.
For the six-month reporting period ended December 31, 2020
The global economy was severely impacted by the repercussions related to the COVID-19 pandemic. Looking back before the reporting period began, second-quarter 2020 U.S. annualized gross domestic product (“GDP”) was -31.4%. This represented the steepest quarterly decline on record. With the economy reopening, third-quarter GDP growth was 33.4%, the largest quarterly increase on record. The Commerce Department’s initial estimate for fourth-quarter annualized GDP growth — released after the reporting period ended — was 4.0%.
The Federal Reserve (the “Fed”) took unprecedented actions to support the economy and keep markets functioning properly. In early March 2020, before the reporting period began, the Fed lowered the federal funds rate to a range between 1.00% and 1.25%. Later in the month, the Fed lowered the rate to a range between 0.00% and 0.25%. On March 23, the Fed announced that it would make unlimited purchases of Treasury and mortgage securities and, for the first time, it would purchase corporate bonds on the open market. In August 2020, Fed Chair Jerome Powell said the central bank had changed how it viewed the trade-off between lower unemployment and higher inflation. Per Powell’s statement, the Fed’s new approach to setting U.S. monetary policy will entail letting inflation run higher, which could mean that interest rates remain low for an extended period. Meanwhile, in March 2020, the U.S. government passed a total of roughly $2.8 trillion in fiscal stimulus measures to aid the economy. A subsequent $900 billion stimulus package was finalized in December 2020.
Economies outside the U.S. were significantly impacted by the pandemic too. In its October 2020 World Economic Outlook Update, the International Monetary Fund (“IMF”) stated that it expects 2020 GDP in the eurozone, U.K. and Japan will be -8.3%, -9.8% and -5.3%, respectively. For comparison purposes, the GDP of these economies expanded 1.3%, 1.5% and 0.7%, respectively, in 2019.
Against this backdrop, central banks and governments around the world took a number of aggressive actions. Looking back, in March 2020, the European Central Bank (the “ECB”) unveiled a new €750 billion bond-buying program, which was subsequently expanded by another €600 billion in June 2020. In July, the European Union agreed on a €1.8 trillion spending package to bolster its economy. In December 2020, the ECB expanded its monetary stimulus program by another €500 billion.
The Bank of England reduced its key lending rate to 0.10% — a record low — in March, added £100 billion to its quantitative easing program in June, and increased its bond-buying program by £150 billion to £895 billion in November. Finally, toward the end of the year, the U.K. and the European Union agreed to a long-awaited Brexit deal. Elsewhere, the Bank of Japan maintained its short-term interest rate at -0.10%, while increasing the target for its holdings of corporate bonds to ¥4.2 trillion from ¥3.2 trillion. In May 2020, the Japanese government doubled its stimulus measures with a ¥117 trillion package. Finally, in December 2020, the Bank of Japan announced a new ¥73.6 trillion stimulus package.
Short-term U.S. Treasury yields edged modestly lower, whereas long-term yields moved higher, albeit from a very low level during the reporting period. The yield on the benchmark 10-year U.S. Treasury note was 0.93% at the end of the reporting period, versus 0.66% on June 30, 2020. The Bloomberg Barclays Global Treasury Index (USD Hedged), which tracks fixed-rate, local currency government debt of investment grade countries, including both developed and emerging markets, returned 0.78%. Meanwhile, the Bloomberg Barclays Global Aggregate Credit Index (USD Hedged), a widely
used index of global investment grade credit bonds, returned 4.20%. Riskier fixed income asset classes, including high yield corporate bonds and emerging market debt, also rallied. The ICE BofAML Developed Markets High Yield Constrained Index (USD Hedged), a widely used index of below-investment-grade bonds, returned 10.82%, whereas emerging market external debt, as represented by the JPMorgan Emerging Markets Bond Index (EMBI) Global (USD Hedged), returned 7.89%. Emerging market local bonds, as represented by the JPMorgan Government Bond Index-Emerging Markets Global Diversified Index (Unhedged), returned 10.29%.
Despite the headwinds from the pandemic, global equities produced strong results. All told, U.S. equities, as represented by the S&P 500 Index, returned 22.16%, partially fueled by a sharp rally in November and December 2020, because, in our view, investor sentiment improved after positive COVID-19 vaccine news. Global equities, as represented by the MSCI World Index, returned 23.00%, whereas emerging market equities, as measured by the MSCI Emerging Markets Index, returned 31.14%. Meanwhile, Japanese equities, as represented by the Nikkei 225 Index (in JPY), returned 24.12% and European equities, as represented by the MSCI Europe Index (in EUR), returned 10.91%.
Commodity prices were volatile and produced mixed results. When the reporting period began, Brent crude oil was approximately $41 a barrel. Brent crude oil ended the reporting period at roughly $52 a barrel. We believe that oil prices rallied because producers reduced their output and investors anticipated stronger demand as global growth improved and several new COVID-19 vaccines were introduced. Elsewhere, copper prices moved higher, while gold declined.
Finally, there were also periods of volatility in the foreign exchange markets, in our view due to fluctuating economic growth, trade conflicts and changing central bank monetary policies, along with the U.S. election and several geopolitical events. The U.S. dollar weakened against a number of other major currencies. For example, the U.S. dollar returned -8.74%, -10.23% and -4.53% versus the euro, the British pound and the Japanese yen, respectively.
Thank you for the assets you have placed with us. We deeply value your trust, and we will continue to work diligently to meet your broad investment needs. For 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 global viewpoints.
| | |
 | | Sincerely, 
Peter G. Strelow Chairman of the Board
PIMCO Equity Series |
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, PIMCO RAFI Dynamic Multi-Factor U.S. Equity ETF and PIMCO RAFI ESG U.S. 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 and Other Risks in the Notes to Financial Statements.
Classifications of the Funds’ portfolio holdings in this report are made according to financial reporting standards. The classification of a particular portfolio holding as shown in the Allocation Breakdown and Schedule of Investments sections of this report may differ from the classification used for the Funds’ compliance calculations, including those used in the Funds’ prospectus, investment objectives, regulatory, and other investment limitations and policies, which may be based on different asset class, sector or geographical classifications. Each Fund is separately monitored for compliance with respect to prospectus and regulatory requirements.
The geographical classification of foreign (non-U.S.) securities in this report, if any, 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.
Beginning in January 2020, global financial markets have experienced and may continue to experience significant volatility resulting from the spread of a novel coronavirus known as COVID-19. The outbreak of COVID-19 has resulted in travel and border restrictions, quarantines, supply chain disruptions, lower consumer demand and general market uncertainty. The effects of COVID-19 have and may continue to adversely affect the global economy, the economies of certain nations and individual issuers, all of which may negatively impact the Funds’ performance. In addition, COVID-19 and governmental responses to COVID-19 may negatively impact the capabilities of the Funds’ service providers and disrupt the Funds’ operations.
The United States’ enforcement of restrictions on U.S. investments in certain issuers and tariffs on goods from other countries, each with a focus on China, has contributed to international trade tensions and may impact portfolio securities.
A Fund may have significant exposure to issuers in the United Kingdom. The United Kingdom’s withdrawal from the European Union may impact Fund returns. The withdrawal may cause substantial volatility in foreign exchange markets, lead to weakness in the exchange rate of the British pound, result in a sustained period of
market uncertainty, and destabilize some or all of the other European Union member countries and/or the Eurozone.
A Fund may invest in certain instruments that rely in some fashion upon the London Interbank Offered Rate (“LIBOR”). LIBOR is an average interest rate, determined by the ICE Benchmark Administration, that banks charge one another for the use of short-term money. The United Kingdom’s Financial Conduct Authority, which regulates LIBOR, has announced plans to ultimately phase out the use of LIBOR. There remains uncertainty regarding future utilization of LIBOR and the nature of any replacement rate (e.g., the Secured Overnight Financing Rate, which is intended to replace U.S. dollar LIBOR and measures the cost of overnight borrowings through repurchase agreement transactions collateralized with U.S. Treasury securities). Any potential effects of the transition away from LIBOR on a Fund or on certain instruments in which a Fund invests can be difficult to ascertain, and they may vary depending on a variety of factors. The transition may also result in a reduction in the value of certain instruments held by a Fund or a reduction in the effectiveness of related Fund transactions such as hedges. Any such effects of the transition away from LIBOR, as well as other unforeseen effects, could result in losses to a Fund.
A Fund may invest in securities and instruments that are economically tied to Russia. Investments in Russia are subject to various risks such as political, economic, legal, market and currency risks. The risks include uncertain political and economic policies, short-term market volatility, poor accounting standards, corruption and crime, an inadequate regulatory system, and unpredictable taxation. Investments in Russia are particularly subject to the risk that economic sanctions may be imposed by the United States and/or other countries. Such sanctions — which may impact companies in many sectors, including energy, financial services and defense, among others — may negatively impact the Portfolios’ performance and/or ability to achieve their investment objectives. The Russian securities market is characterized by limited volume of trading, resulting in difficulty in obtaining accurate prices. The Russian securities market, as compared to U.S. markets, has significant price volatility, less liquidity, a smaller market capitalization and a smaller number of traded securities. There may be little publicly available information about issuers. Settlement, clearing and registration of securities transactions are subject to risks because of registration systems that may not be subject to effective government supervision. This may result in significant delays or problems in registering the transfer of securities. Russian securities laws may not recognize foreign nominee accounts held with a custodian bank, and therefore the custodian may be considered the ultimate owner of securities they hold for their clients. Ownership of securities issued by Russian companies is recorded by companies themselves and by registrars instead of through a central registration system. It is possible
that the ownership rights of a Fund could be lost through fraud or negligence. While applicable Russian regulations impose liability on registrars for losses resulting from their errors, it may be difficult for a Fund to enforce any rights it may have against the registrar or issuer of the securities in the event of loss of share registration. Adverse currency exchange rates are a risk and there may be a lack of available currency hedging instruments. Investments in Russia may be subject to the risk of nationalization or expropriation of assets. Oil, natural gas, metals, and timber account for a significant portion of Russia’s exports, leaving the country vulnerable to swings in world prices.
Engaging in a responsible investment strategy, which may select or exclude securities of certain issuers for reasons other than performance, carries the risk that a Fund may underperform funds that do not utilize a responsible investment strategy. The application of this strategy may affect a Fund’s exposure to certain sectors or types of investments, which could negatively impact the Fund’s performance. Responsible investing is qualitative and subjective by nature, and there is no guarantee that the criteria utilized or any judgment exercised in pursuing a responsible investment strategy will reflect the beliefs or values of any particular investor. In evaluating a company, the information and data obtained through voluntary or third-party reporting may be incomplete, inaccurate or unavailable, which could cause an incorrect assessment of a company’s business practices with respect to the environment, social responsibility and corporate governance (“ESG practices”). Socially responsible norms differ by region, and a company’s ESG practices or the assessment of a company’s ESG practices may change over time.
On each individual Fund Summary page in this Shareholder Report, the Average Annual Total Return table and the 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 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. Historical performance for a Fund may have been positively impacted by fee waivers or expense
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| | | | SEMIANNUAL REPORT | | | | | | | DECEMBER 31, 2020 | | | 5 |
| | | | |
| Important Information About the Funds (Cont.) | | | | |
limitations in place during some or all of the periods shown, if applicable. Future performance (including total return or yield) and distributions may be negatively impacted by the expiration or reduction of any such fee waivers or expense limitations.
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 | |
PIMCO RAFI ESG U.S. ETF | | | | | | | 12/18/19 | | | | Diversified | |
An investment in a Fund is not a bank deposit and is not guaranteed or insured by the Federal Deposit Insurance Corporation 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
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.
On each business day, before commencement of trading on NYSE Arca, each Fund will disclose on www.pimcoetfs.com the identities and quantities of the Fund’s portfolio holdings. 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 Funds file portfolio holdings information with the SEC on Form N-PORT within 60 days of the end of each fiscal quarter. The Funds’ complete schedule of securities holdings as of the end of each fiscal quarter will be made available to the public on the SEC’s website at www.sec.gov and on PIMCO’s website at www.pimcoetfs.com, and will be made available, upon request, by calling PIMCO at (888) 400-4ETF.
The SEC adopted a rule that, allows the Funds to fulfill their obligation to deliver shareholder reports to investors by providing access to such reports online free of charge and by mailing a notice that the report is electronically available. Pursuant to the rule, investors may elect to receive all future reports in paper free of charge by contacting their financial intermediary. Any election to receive reports in paper will apply to all funds held in the investor’s account at the financial intermediary.
In August 2020, the SEC proposed changes to the mutual fund and ETF shareholder report and registration statement disclosure requirements and the registered fund advertising rules, which, if adopted, will change the disclosures provided to shareholders.
In October 2020, the SEC adopted a rule related to the use of derivatives, short sales, reverse repurchase agreements and certain other transactions by registered investment companies that rescinds and withdraws the guidance of the SEC and its staff regarding asset
segregation and cover transactions. Subject to certain exceptions, and after an eighteen-month transition period, the rule requires funds to trade derivatives and other transactions that create future payment or delivery obligations (except reverse repurchase agreements and similar financing transactions) subject to a value-at-risk leverage limit, certain derivatives risk management program and reporting requirements. These requirements may limit the ability of the Funds to use derivatives and reverse repurchase agreements and similar financing transactions as part of their investment strategies and may increase the cost of the Funds’ investments and cost of doing business, which could adversely affect investors.
In October 2020, the SEC adopted a rule regarding the ability of a fund to invest in other funds. The rule allows a fund to acquire shares of another fund in excess of certain limitations currently imposed by the Investment Company Act of 1940 (the “Act”) without obtaining individual exemptive relief from the SEC, subject to certain conditions. The rule also included the rescission of certain exemptive relief from the SEC and guidance from the SEC staff for funds to invest in other funds. The impact that these changes may have on the Funds is uncertain.
In December 2020, the SEC adopted a rule addressing fair valuation of fund investments. The new rule sets forth requirements for good faith determinations of fair value as well as for the performance of fair value determinations, including related oversight and reporting obligations. The new rule also defines “readily available market quotations” for purposes of the definition of “value” under the Act, and the SEC noted that this definition will apply in all contexts under the Act. The SEC adopted an eighteen-month transition period beginning from the effective date for both the new rule and the associated new recordkeeping requirements. The impact of the new rule on the Funds is uncertain at this time.
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| | | | SEMIANNUAL REPORT | | | | | | | DECEMBER 31, 2020 | | | 7 |
PIMCO RAFI Dynamic Multi-Factor Emerging Markets Equity ETF
Cumulative Returns Through December 31, 2020
$10,000 invested at the end of the month when the Fund commenced operations.
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. Fund strategies may change from time to time. Please refer to the Fund’s current prospectus for more information regarding the Fund’s strategy.
All Fund returns are net of fees and expenses and include applicable fee waivers and/or expense limitations. Absent any applicable fee waivers and/or expense limitations, performance would have been lower and there can be no assurance that any such waivers or limitations will continue in the future.
* Cumulative return.
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.
(2) The Fund was seeded on August 31, 2017, but was not listed for trading until September 6, 2017. Accordingly, there is no Market Price information for August 31, 2017 through September 5, 2017.
± 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.
±± 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.
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 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 (888) 400-4ETF.
The Fund’s total annual operating expense ratio in effect as of period end was 0.50%. 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.
Top 10 Holdings as of December 31, 2020†§
| | | | | | | | |
Taiwan Semiconductor Manufacturing Co. Ltd. | | | | | | | 3.5% | |
Infosys Ltd. SP — ADR | | | | | | | 3.0% | |
Hyundai Motor Co. | | | | | | | 3.0% | |
Vale S.A. | | | | | | | 2.7% | |
Kia Motors Corp. | | | | | | | 1.8% | |
JD.com, Inc. ADR | | | | | | | 1.7% | |
Tencent Holdings Ltd. | | | | | | | 1.7% | |
Meituan | | | | | | | 1.4% | |
Naspers Ltd. ‘N’ | | | | | | | 1.4% | |
MMC Norilsk Nickel PJSC | | | | | | | 1.3% | |
Geographic Breakdown as of December 31, 2020†**
| | | | | | | | |
South Korea | | | | | | | 19.5% | |
China | | | | | | | 16.5% | |
Taiwan | | | | | | | 14.3% | |
India | | | | | | | 7.5% | |
Russia | | | | | | | 7.0% | |
Brazil | | | | | | | 6.7% | |
South Africa | | | | | | | 4.5% | |
Ireland | | | | | | | 4.2% | |
Thailand | | | | | | | 3.8% | |
Hong Kong | | | | | | | 2.8% | |
United Kingdom | | | | | | | 2.3% | |
Mexico | | | | | | | 2.2% | |
Short-Term Instruments | | | | | | | 2.2% | |
Malaysia | | | | | | | 1.4% | |
Turkey | | | | | | | 1.2% | |
Chile | | | | | | | 1.1% | |
Indonesia | | | | | | | 1.0% | |
Other | | | | | | | 1.8% | |
† % of Investments, at value.
§ Top 10 Holdings and % of Investments exclude securities sold short, financial derivative instruments and short-term instruments, if any.
** Geographic Breakdown and % of Investments exclude securities sold short and financial derivative instruments, if any.
Fund Insights
The following affected performance (on a gross basis) during the reporting period:
| » | | Security selection in the consumer discretionary sector contributed to relative returns compared to the Fund’s secondary benchmark, the MSCI Emerging Markets Index, as the Fund’s holdings outperformed the secondary benchmark index. |
| » | | Underweight exposure to the financials sector contributed to relative returns compared to the Fund’s secondary benchmark, the MSCI Emerging Markets Index, as the sector underperformed the secondary benchmark index. |
| » | | Overweight exposure to the materials sector contributed to relative returns compared to the Fund’s secondary benchmark, the MSCI Emerging Markets Index, as the sector outperformed the secondary benchmark index. |
| » | | Overweight exposure to, and security selection in, the consumer staples and energy sectors detracted from relative returns compared to the Fund’s secondary benchmark, the MSCI Emerging Markets Index, as the sectors and the Fund’s holdings underperformed the secondary benchmark index. |
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| | | SEMIANNUAL REPORT | | | | | | | | | DECEMBER 31, 2020 | | | 9 |
PIMCO RAFI Dynamic Multi-Factor International Equity ETF
Cumulative Returns Through December 31, 2020
$10,000 invested at the end of the month when the Fund commenced operations.
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. 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, 2020 | |
| | | | |
| | | | | 6 Months* | | | 1 Year | | | Fund Inception
(08/31/17) | |
 | | PIMCO RAFI Dynamic Multi-Factor International Equity ETF
(Based on Net Asset Value) | | | 21.21% | | | | 7.24% | | | | 5.33% | |
 | | PIMCO RAFI Dynamic Multi-Factor International Equity ETF (At Market Price)(1)(2) | | | 21.72% | | | | 7.14% | | | | 5.08% | |
 | | RAFI Dynamic Multi-Factor Developed Ex-U.S. Index± | | | 22.26% | | | | 7.64% | | | | 5.84% | |
 | | MSCI EAFE Index±± | | | 21.61% | | | | 7.82% | | | | 5.92% | |
All Fund returns are net of fees and expenses and include applicable fee waivers and/or expense limitations. Absent any applicable fee waivers and/or expense limitations, performance would have been lower and there can be no assurance that any such waivers or limitations will continue in the future.
* Cumulative return.
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.
(2) The Fund was seeded on August 31, 2017, but was not listed for trading until September 6, 2017. Accordingly, there is no Market Price information for August 31, 2017 through September 5, 2017.
± The RAFI Dynamic Multi-Factor Developed ex-US 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.
±± 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 the index.
Performance quoted represents past performance. Past performance is not a guarantee or a reliable indicator of future results. Current performance may be lower or higher than performance shown. Investment return and the principal value of an investment will fluctuate. Shares may be worth more or less than original cost when redeemed by authorized participants. 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. Performance data current to the most recent month-end is available at www.pimcoetfs.com or (888) 400-4ETF.
The Fund’s total annual operating expense ratio in effect as of period end was 0.41%. 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.
Top 10 Holdings as of December 31, 2020†§
| | | | | | | | |
Unilever PLC | | | | | | | 1.2% | |
Roche Holding AG | | | | | | | 1.0% | |
ASML Holding NV | | | | | | | 0.9% | |
Nestle S.A. | | | | | | | 0.8% | |
GlaxoSmithKline PLC | | | | | | | 0.7% | |
AstraZeneca PLC | | | | | | | 0.7% | |
Diageo PLC | | | | | | | 0.7% | |
Novo Nordisk A/S ‘B’ | | | | | | | 0.6% | |
Iberdrola S.A. | | | | | | | 0.6% | |
Zurich Insurance Group AG | | | | | | | 0.6% | |
Geographic Breakdown as of December 31, 2020†**
| | | | | | | | |
Japan | | | | | | | 26.8% | |
United Kingdom | | | | | | | 14.3% | |
Canada | | | | | | | 7.5% | |
Switzerland | | | | | | | 7.2% | |
Germany | | | | | | | 6.1% | |
Australia | | | | | | | 5.9% | |
France | | | | | | | 5.8% | |
Netherlands | | | | | | | 3.7% | |
Sweden | | | | | | | 3.3% | |
Spain | | | | | | | 2.7% | |
Denmark | | | | | | | 2.3% | |
Hong Kong | | | | | | | 2.3% | |
Italy | | | | | | | 2.0% | |
Ireland | | | | | | | 1.9% | |
Finland | | | | | | | 1.5% | |
Short-Term Instruments | | | | | | | 1.4% | |
Singapore | | | | | | | 1.2% | |
Other | | | | | | | 4.1% | |
† % of Investments, at value.
§ Top 10 Holdings and % of Investments exclude securities sold short, financial derivative instruments and short-term instruments, if any.
** Geographic Breakdown and % of investments exclude securities sold short and financial derivative instruments, if any.
Fund Insights
The following affected performance (on a gross basis) during the reporting period:
| » | | Underweight exposure to the health care sector contributed to relative returns compared to the Fund’s secondary benchmark, the MSCI EAFE Index, as the sector underperformed the secondary benchmark index. |
| » | | Overweight exposure to, and security selection in, the materials sector contributed to relative returns compared to the Fund’s secondary benchmark, the MSCI EAFE Index, as the sector and the Fund’s holdings outperformed the secondary benchmark index. |
| » | | Security selection in the consumer staples and energy sectors contributed to relative returns compared to the Fund’s secondary benchmark, the MSCI EAFE Index, as the Fund’s holdings outperformed the secondary benchmark index. |
| » | | Security selection in the communication services sector detracted from relative returns compared to the Fund’s secondary benchmark, the MSCI EAFE Index, as the Fund’s holdings underperformed the secondary benchmark index. |
| » | | Underweight exposure to, and security selection in, the financials sector detracted from relative returns compared to the Fund’s secondary benchmark, the MSCI EAFE Index, as the sector outperformed the secondary benchmark index and the Fund’s holdings underperformed the secondary benchmark index. |
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| | | SEMIANNUAL REPORT | | | | | | | | | DECEMBER 31, 2020 | | | 11 |
PIMCO RAFI Dynamic Multi-Factor U.S. Equity ETF
Cumulative Returns Through December 31, 2020
$10,000 invested at the end of the month when the Fund commenced operations.
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. 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, 2020 | |
| | | | |
| | | | | 6 Months* | | | 1 Year | | | Fund Inception
(08/31/17) | |
| | PIMCO RAFI Dynamic Multi-Factor U.S. Equity ETF (Based on Net Asset Value) | | | 23.39% | | | | 10.55% | | | | 11.75% | |
| | PIMCO RAFI Dynamic Multi-Factor U.S. Equity ETF (At Market Price)(1)(2) | | | 23.61% | | | | 10.58% | | | | 11.74% | |
| | RAFI Dynamic Multi-Factor U.S. Index± | | | 23.79% | | | | 10.96% | | | | 12.17% | |
| | S&P 500 Index±± | | | 22.16% | | | | 18.40% | | | | 15.56% | |
All Fund returns are net of fees and expenses and include applicable fee waivers and/or expense limitations. Absent any applicable fee waivers and/or expense limitations, performance would have been lower and there can be no assurance that any such waivers or limitations will continue in the future.
* Cumulative return.
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.
(2) The Fund was seeded on August 31, 2017, but was not listed for trading until September 6, 2017. Accordingly, there is no Market Price information for August 31, 2017 through September 5, 2017.
± 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.
±± S&P 500 Index is an unmanaged market index generally considered representative of the stock market as a whole. The Index focuses on the large-cap segment of the U.S. equities market.
It is not possible to invest directly in an unmanaged index.
Performance quoted represents past performance. Past performance is not a guarantee or a reliable indicator of future results. Current performance may be lower or higher than performance shown. Investment return and the principal value of an investment will fluctuate. Shares may be worth more or less than original cost when redeemed by authorized participants. 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. Performance data current to the most recent month-end is available at www.pimcoetfs.com or (888) 400-4ETF.
The Fund’s total annual operating expense ratio in effect as of period end was 0.31%. 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.
Top 10 Holdings as of December 31, 2020†§
| | | | | | | | |
Apple, Inc. | | | | | | | 2.6% | |
Walmart, Inc. | | | | | | | 1.7% | |
Home Depot, Inc. | | | | | | | 1.4% | |
Walt Disney Co. | | | | | | | 1.2% | |
International Business Machines Corp. | | | | | | | 1.2% | |
Johnson & Johnson | | | | | | | 1.2% | |
Microsoft Corp. | | | | | | | 1.1% | |
Amazon.com, Inc. | | | | | | | 1.1% | |
Procter & Gamble Co. | | | | | | | 1.1% | |
Facebook, Inc. ‘A’ | | | | | | | 1.1% | |
Sector Breakdown as of December 31, 2020†**
| | | | | | | | |
Information Technology | | | | | | | 19.3% | |
Consumer Discretionary | | | | | | | 16.9% | |
Health Care | | | | | | | 13.6% | |
Consumer Staples | | | | | | | 11.8% | |
Industrials | | | | | | | 11.4% | |
Communication Services | | | | | | | 8.3% | |
Financials | | | | | | | 6.7% | |
Real Estate | | | | | | | 3.8% | |
Materials | | | | | | | 3.2% | |
Energy | | | | | | | 2.8% | |
Short-Term Instruments | | | | | | | 1.2% | |
Utilities | | | | | | | 1.0% | |
† % of Investments, at value.
§ Top 10 Holdings and % of Investments exclude securities sold short, financial derivative instruments and short-term instruments, if any.
** Sector Breakdown and % of investments exclude securities sold short and financial derivative instruments, if any.
Fund Insights
The following affected performance (on a gross basis) during the reporting period:
| » | | Overweight exposure to, and security selection in, the consumer discretionary sector contributed to relative returns compared to the Fund’s secondary benchmark, the S&P 500 Index, as the sector and the Fund’s holdings outperformed the secondary benchmark index. |
| » | | Underweight exposure to, and security selection in, the utilities sector contributed to relative returns compared to the Fund’s secondary benchmark, the S&P 500 Index, as the sector underperformed the secondary benchmark index and the Fund’s holdings outperformed the secondary benchmark index. |
| » | | Security selection in the materials sector contributed to relative returns compared to the Fund’s secondary benchmark, the S&P 500 Index, as the Fund’s holdings outperformed the secondary benchmark index. |
| » | | Security selection in the health care sector detracted from relative returns compared to the Fund’s secondary benchmark, the S&P 500 Index, as the Fund’s holdings underperformed the secondary benchmark index. |
| » | | Underweight exposure to, and security selection in, the financials sector detracted from relative returns compared to the Fund’s secondary benchmark, the S&P 500 Index, as the sector outperformed the secondary benchmark and the Fund’s holdings underperformed the secondary benchmark index. |
| | | | | | | | | | | | | | |
| | | SEMIANNUAL REPORT | | | | | | | | | DECEMBER 31, 2020 | | | 13 |
PIMCO RAFI ESG U.S. ETF
Cumulative Returns Through December 31, 2020
$10,000 invested at the end of the month when the Fund commenced operations.
Investment Objective and Strategy Overview
PIMCO RAFI ESG U.S. ETF seeks to provide total return that closely corresponds, before fees and expenses, to the total return of the RAFI ESG US 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 (“Sub-Adviser”), believes will help the Fund track its Underlying Index. The Underlying Index is a long-only, smart beta index that seeks to achieve the dual objectives of social responsibility and long-horizon outperformance of the broad market. 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, 2020 | |
| | | | |
| | | | | 6 Months* | | | 1 Year | | | Fund Inception
(12/18/19) | |
| | PIMCO RAFI ESG U.S. ETF (Based on Net Asset Value) | | | 22.96% | | | | 5.41% | | | | 6.24% | |
| | PIMCO RAFI ESG U.S. ETF (At Market Price)(1)(2) | | | 22.99% | | | | 5.25% | | | | 5.73% | |
| | RAFI ESG US Index± | | | 23.28% | | | | 5.78% | | | | 6.57% | |
| | S&P 500 Index±± | | | 22.16% | | | | 18.40% | | | | 19.19% | |
All Fund returns are net of fees and expenses and include applicable fee waivers and/or expense limitations. Absent any applicable fee waivers and/or expense limitations, performance would have been lower and there can be no assurance that any such waivers or limitations will continue in the future.
* Cumulative return.
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.
(2) The Fund was seeded on December 18, 2019, but was not listed for trading until December 19, 2019. Accordingly, there is no Market Price information for December 18, 2019.
± The RAFI ESG US Index is a long-only, smart beta index that seeks to achieve the dual objectives of social responsibility and long-horizon outperformance of the broad market. The Index is constructed by RAFI Indices, LLC (the “Index Provider”) using a rules-based approach within publicly traded U.S. equities to create an integrated ESG strategy which overweights companies that rate well across various ESG (Environmental, Social, and Governance) themes and excludes companies with a major involvement in industries such as tobacco, gaming, weapons and fossil fuels. The strategy supplements traditional ESG metrics with metrics linked to long-term value creation, specifically financial discipline and diversity, for improved return potential.
±± S&P 500 Index is an unmanaged market index generally considered representative of the stock market as a whole. The Index focuses on the large-cap segment of the U.S. equities market.
It is not possible to invest directly in an unmanaged index.
Performance quoted represents past performance. Past performance is not a guarantee or a reliable indicator of future results. Current performance may be lower or higher than performance shown. Investment return and the principal value of an investment will fluctuate. Shares may be worth more or less than original cost when redeemed by authorized participants. 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. Performance data current to the most recent month-end is available at www.pimcoetfs.com or (888) 400-4ETF.
The Fund’s total annual operating expense ratio in effect as of period end was 0.30%. 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.
Top 10 Holdings as of December 31, 2020†§
| | | | | | | | |
Microsoft Corp. | | | | | | | 4.4% | |
Wells Fargo & Co. | | | | | | | 3.5% | |
Johnson & Johnson | | | | | | | 3.0% | |
Walt Disney Co. | | | | | | | 2.9% | |
Bank of America Corp. | | | | | | | 2.6% | |
Citigroup, Inc. | | | | | | | 2.5% | |
Intel Corp. | | | | | | | 2.4% | |
Procter & Gamble Co. | | | | | | | 2.3% | |
Verizon Communications, Inc. | | | | | | | 2.2% | |
Cisco Systems, Inc. | | | | | | | 2.2% | |
Sector Breakdown as of December 31, 2020†**
| | | | | | | | |
Financials | | | | | | | 23.4% | |
Information Technology | | | | | | | 19.1% | |
Health Care | | | | | | | 16.1% | |
Consumer Discretionary | | | | | | | 12.9% | |
Consumer Staples | | | | | | | 9.4% | |
Communication Services | | | | | | | 6.0% | |
Industrials | | | | | | | 5.4% | |
Materials | | | | | | | 4.7% | |
Utilities | | | | | | | 1.5% | |
Real Estate | | | | | | | 1.5% | |
† % of Investments, at value.
§ Top 10 Holdings and % of Investments exclude securities sold short, financial derivative instruments and short-term instruments, if any.
** Sector Breakdown and % of investments exclude securities sold short and financial derivative instruments, if any.
Fund Insights
The following affected performance (on a gross basis) during the reporting period:
| » | | Overweight exposure to, and security selection in, the financials, consumer discretionary and materials sectors contributed to relative returns compared to the Fund’s secondary benchmark, the S&P 500 Index, as the sectors and the Fund’s holdings outperformed the secondary benchmark index. |
| » | | Underweight exposure to, and security selection in, the real estate sector contributed to relative returns compared to the Fund’s secondary benchmark, the S&P 500 Index, as the sector underperformed the secondary benchmark index and the Fund’s holdings outperformed the secondary benchmark index. |
| » | | Underweight exposure to, and security selection in, the information technology sector detracted from relative returns compared to the Fund’s secondary benchmark, the S&P 500 Index, as the sector outperformed the secondary benchmark index and the Fund’s holdings underperformed the secondary benchmark index. |
| » | | Security selection in the communication services sector detracted from relative returns compared to the Fund’s secondary benchmark, the S&P 500 Index, as the Fund’s holdings underperformed the secondary benchmark index. |
| » | | Overweight exposure to, and security selection in, the health care sector detracted from relative returns compared to the Fund’s secondary benchmark, the S&P 500 Index, as the sector and the Fund’s holdings underperformed the secondary benchmark index. |
| | | | | | | | | | | | | | |
| | | SEMIANNUAL REPORT | | | | | | | | | DECEMBER 31, 2020 | | | 15 |
Expense Examples
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 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, 2020 to December 31, 2020 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 period to period because of various factors, such as an increase in expenses not covered by the management fees (such as expenses of the independent trustees and their counsel, extraordinary expenses and interest expense).
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | Actual | | | | | | Hypothetical
(5% return before expenses) | | | | | | | |
| | | | | | Beginning
Account Value
(07/01/20) | | | Ending
Account Value
(12/31/20) | | | Expenses Paid
During Period* | | | | | | Beginning
Account Value
(07/01/20) | | | Ending
Account Value
(12/31/20) | | | Expenses Paid
During Period* | | | | | | Net Annualized
Expense Ratio** | |
| PIMCO RAFI Dynamic Multi-Factor Emerging Markets Equity ETF | | | | | | $ | 1,000.00 | | | $ | 1,325.30 | | | $ | 2.92 | | | | | | | $ | 1,000.00 | | | $ | 1,023.11 | | | $ | 2.54 | | | | | | | | 0.49 | % |
| PIMCO RAFI Dynamic Multi-Factor International Equity ETF | | | | | | | 1,000.00 | | | | 1,212.10 | | | | 2.27 | | | | | | | | 1,000.00 | | | | 1,023.57 | | | | 2.07 | | | | | | | | 0.40 | |
| PIMCO RAFI Dynamic Multi-Factor U.S. Equity ETF | | | | | | | 1,000.00 | | | | 1,233.90 | | | | 1.66 | | | | | | | | 1,000.00 | | | | 1,024.13 | | | | 1.50 | | | | | | | | 0.29 | |
| PIMCO RAFI ESG U.S. ETF | | | | | | | 1,000.00 | | | | 1,229.60 | | | | 1.71 | | | | | | | | 1,000.00 | | | | 1,024.08 | | | | 1.56 | | | | | | | | 0.30 | |
* Expenses Paid During Period are equal to the net annualized expense ratio for the Fund, multiplied by the average account value over the period, multiplied by 187/365 (to reflect the one-half year period). Overall fees and expenses of investing in the Portfolio 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 9, Fees and Expenses, in the Notes to Financial Statements.
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| | | | | | | | | | | | |
| | | | SEMIANNUAL REPORT | | | | | | | DECEMBER 31, 2020 | | | 17 |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | Investment Operations | | | Less Distributions(c) | |
| | | | | | | | | | | | | | | | | | | | | | |
| Selected Per Share Data for the Year or Period Ended^: | | Net Asset
Value Beginning
of Year
or Period(a) | | | Net Investment Income
(Loss)(b) | | | Net
Realized/ Unrealized Gain (Loss) | | | Total | | | From Net Investment Income | | | From Net Realized Capital Gains | | | Total | |
| | | | | | | |
PIMCO RAFI Dynamic Multi-Factor Emerging Markets Equity ETF | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | |
07/01/2020 - 12/31/2020+ | | $ | 20.84 | | | $ | 0.25 | | | $ | 6.49 | | | $ | 6.74 | | | $ | (0.39 | ) | | $ | 0.00 | | | $ | (0.39 | ) |
| | | | | | | |
06/30/2020 | | | 24.24 | | | | 0.59 | | | | (3.41 | ) | | | (2.82 | ) | | | (0.58 | ) | | | 0.00 | | | | (0.58 | ) |
| | | | | | | |
06/30/2019 | | | 23.94 | | | | 0.64 | | | | 0.39 | | | | 1.03 | | | | (0.73 | ) | | | 0.00 | | | | (0.73 | ) |
| | | | | | | |
08/31/2017 - 06/30/2018 | | | 25.00 | | | | 0.42 | | | | (1.41 | ) | | | (0.99 | ) | | | (0.07 | ) | | | 0.00 | | | | (0.07 | ) |
| | | | | | | |
PIMCO RAFI Dynamic Multi-Factor International Equity ETF | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | |
07/01/2020 - 12/31/2020+ | | $ | 22.86 | | | $ | 0.21 | | | $ | 4.62 | | | $ | 4.83 | | | $ | (0.32 | ) | | $ | 0.00 | | | $ | (0.32 | ) |
| | | | | | | |
06/30/2020 | | | 24.94 | | | | 0.53 | | | | (1.84 | ) | | | (1.31 | ) | | | (0.77 | ) | | | 0.00 | | | | (0.77 | ) |
| | | | | | | |
06/30/2019 | | | 25.87 | | | | 0.72 | | | | (0.89 | ) | | | (0.17 | ) | | | (0.76 | ) | | | 0.00 | | | | (0.76 | ) |
| | | | | | | |
08/31/2017 - 06/30/2018 | | | 25.00 | | | | 0.62 | | | | 0.44 | | | | 1.06 | | | | (0.19 | ) | | | 0.00 | | | | (0.19 | ) |
| | | | | | | |
PIMCO RAFI Dynamic Multi-Factor U.S. Equity ETF | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | |
07/01/2020 - 12/31/2020+ | | $ | 27.74 | | | $ | 0.31 | | | $ | 6.14 | | | $ | 6.45 | | | $ | (0.41 | ) | | $ | 0.00 | | | $ | (0.41 | ) |
| | | | | | | |
06/30/2020 | | | 29.21 | | | | 0.62 | | | | (1.44 | ) | | | (0.82 | ) | | | (0.65 | ) | | | 0.00 | | | | (0.65 | ) |
| | | | | | | |
06/30/2019 | | | 28.30 | | | | 0.59 | | | | 0.91 | | | | 1.50 | | | | (0.59 | ) | | | 0.00 | | | | (0.59 | ) |
| | | | | | | |
08/31/2017 - 06/30/2018 | | | 25.00 | | | | 0.43 | | | | 3.17 | | | | 3.60 | | | | (0.30 | ) | | | 0.00 | | | | (0.30 | ) |
| | | | | | | |
PIMCO RAFI ESG U.S. ETF | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | |
07/01/2020 - 12/31/2020+ | | $ | 21.40 | | | $ | 0.26 | | | $ | 4.60 | | | $ | 4.86 | | | $ | (0.42 | ) | | $ | 0.00 | | | $ | (0.42 | ) |
| | | | | | | |
12/18/2019 - 06/30/2020 | | | 25.00 | | | | 0.33 | | | | (3.72 | ) | | | (3.39 | ) | | | (0.21 | ) | | | 0.00 | | | | (0.21 | ) |
| ^ | A zero balance may reflect actual amounts rounding to less than $0.01 or 0.01%. |
| (a) | Includes adjustments required by U.S. GAAP and may differ from net asset values and performance reported elsewhere by the Funds. |
| (b) | Per share amounts based on average number of shares outstanding during the year or period. |
| (c) | 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 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | Ratios/Supplemental Data | |
| | | | | | | | | | Ratios to Average Net Assets | | | | |
Net Asset
Value End of
Year or
Period(a) | | | Total Return(a) | | | 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 | |
| | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | |
| $ | 27.19 | | | | 32.59 | % | | $ | 791,797 | | | | 0.49 | %* | | | 0.50 | %* | | | 0.49 | %* | | | 0.50 | %* | | | 2.09 | %* | | | 25 | % |
| | | | | | | | |
| | 20.84 | | | | (11.86 | ) | | | 619,324 | | | | 0.49 | | | | 0.50 | | | | 0.49 | | | | 0.50 | | | | 2.66 | | | | 59 | |
| | | | | | | | |
| | 24.24 | | | | 4.53 | | | | 477,943 | | | | 0.49 | | | | 0.50 | | | | 0.49 | | | | 0.50 | | | | 2.75 | | | | 43 | |
| | | | | | | | |
| | 23.94 | | | | (3.99 | ) | | | 357,169 | | | | 0.50 | * | | | 0.55 | * | | | 0.50 | * | | | 0.55 | * | | | 1.94 | * | | | 52 | |
| | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | |
| $ | 27.37 | | | | 21.27 | % | | $ | 72,802 | | | | 0.40 | %* | | | 0.40 | %* | | | 0.40 | %* | | | 0.40 | %* | | | 1.60 | %* | | | 19 | % |
| | | | | | | | |
| | 22.86 | | | | (5.37 | ) | | | 24,231 | | | | 0.40 | | | | 0.41 | | | | 0.40 | | | | 0.41 | | | | 2.21 | | | | 35 | |
| | | | | | | | |
| | 24.94 | | | | (0.59 | ) | | | 42,888 | | | | 0.39 | | | | 0.40 | | | | 0.39 | | | | 0.40 | | | | 2.96 | | | | 24 | |
| | | | | | | | |
| | 25.87 | | | | 4.22 | | | | 28,976 | | | | 0.40 | * | | | 0.87 | * | | | 0.40 | * | | | 0.87 | * | | | 2.81 | * | | | 36 | |
| | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | |
| $ | 33.78 | | | | 23.44 | % | | $ | 68,243 | | | | 0.29 | %* | | | 0.30 | %* | | | 0.29 | %* | | | 0.30 | %* | | | 1.93 | %* | | | 31 | % |
| | | | | | | | |
| | 27.74 | | | | (2.80 | ) | | | 25,525 | | | | 0.30 | | | | 0.31 | | | | 0.30 | | | | 0.31 | | | | 2.12 | | | | 36 | |
| | | | | | | | |
| | 29.21 | | | | 5.50 | | | | 96,980 | | | | 0.29 | | | | 0.30 | | | | 0.29 | | | | 0.30 | | | | 2.08 | | | | 40 | |
| | | | | | | | |
| | 28.30 | | | | 14.43 | | | | 65,658 | | | | 0.29 | * | | | 0.60 | * | | | 0.29 | * | | | 0.60 | * | | | 1.89 | * | | | 56 | |
| | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | |
| $ | 25.84 | | | | 22.96 | % | | $ | 12,143 | | | | 0.30 | %* | | | 0.31 | %* | | | 0.30 | %* | | | 0.31 | %* | | | 2.14 | %* | | | 16 | % |
| | | | | | | | |
| | 21.40 | | | | (13.42 | ) | | | 8,988 | | | | 0.30 | * | | | 0.86 | * | | | 0.30 | * | | | 0.86 | * | | | 2.75 | * | | | 12 | |
| | | | | | | | | | | | |
| | | | SEMIANNUAL REPORT | | | | | | | DECEMBER 31, 2020 | | | 19 |
| | | | |
| Statements of Assets and Liabilities | | | | December 31, 2020 (Unaudited) |
| | | | | | | | | | | | | | | | |
| (Amounts in thousands†, except per share amounts) | | 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 | | | PIMCO
RAFI ESG
U.S. ETF | |
| | | | |
Assets: | | | | | | | | | | | | | | | | |
| | | | |
Investments, at value | | | | | | | | | | | | | | | | |
Investments in securities*^ | | $ | 794,238 | | | $ | 73,004 | | | $ | 68,562 | | | $ | 12,093 | |
Investments in Affiliates | | | 10,083 | | | | 349 | | | | 73 | | | | 0 | |
Cash | | | 0 | | | | 0 | | | | 0 | | | | 113 | |
Foreign currency, at value | | | 1,291 | | | | 29 | | | | 0 | | | | 0 | |
Receivable for investments sold | | | 9,151 | | | | 69 | | | | 0 | | | | 0 | |
Interest and/or dividends receivable | | | 2,468 | | | | 152 | | | | 67 | | | | 11 | |
Other assets | | | 1 | | | | 8 | | | | 0 | | | | 0 | |
Total Assets | | | 817,232 | | | | 73,611 | | | | 68,702 | | | | 12,217 | |
| | | | |
Liabilities: | | | | | | | | | | | | | | | | |
| | | | |
Payable for investments purchased | | $ | 9,163 | | | $ | 0 | | | $ | 3 | | | $ | 0 | |
Payable upon return of securities loaned | | | 10,084 | | | | 357 | | | | 73 | | | | 0 | |
Distributions payable | | | 5,824 | | | | 425 | | | | 364 | | | | 71 | |
Accrued management fees | | | 349 | | | | 26 | | | | 18 | | | | 3 | |
Accrued reimbursement to PIMCO | | | 11 | | | | 1 | | | | 1 | | | | 0 | |
Other liabilities | | | 4 | | | | 0 | | | | 0 | | | | 0 | |
Total Liabilities | | | 25,435 | | | | 809 | | | | 459 | | | | 74 | |
| | | | |
Net Assets | | $ | 791,797 | | | $ | 72,802 | | | $ | 68,243 | | | $ | 12,143 | |
| | | | |
Net Assets Consist of: | | | | | | | | | | | | | | | | |
| | | | |
Paid in capital | | $ | 731,471 | | | $ | 70,974 | | | $ | 72,246 | | | $ | 12,332 | |
Distributable earnings (accumulated loss) | | | 60,326 | | | | 1,828 | | | | (4,003 | ) | | | (189 | ) |
| | | | |
Net Assets | | $ | 791,797 | | | $ | 72,802 | | | $ | 68,243 | | | $ | 12,143 | |
| | | | |
Shares Issued and Outstanding | | | 29,120 | | | | 2,660 | | | | 2,020 | | | | 470 | |
| | | | |
Net Asset Value Per Share Outstanding(a): | | $ | 27.19 | | | $ | 27.37 | | | $ | 33.78 | | | $ | 25.84 | |
| | | | |
Cost of investments in securities | | $ | 623,987 | | | $ | 63,038 | | | $ | 60,641 | | | $ | 11,708 | |
Cost of investments in Affiliates | | $ | 10,083 | | | $ | 349 | | | $ | 73 | | | $ | 0 | |
Cost of foreign currency held | | $ | 1,285 | | | $ | 29 | | | $ | 0 | | | $ | 0 | |
| | | | |
* Includes repurchase agreements of: | | $ | 7,336 | | | $ | 695 | | | $ | 735 | | | $ | 0 | |
^ Includes securities on loan of: | | | 9,311 | | | | 337 | | | | 72 | | | | 0 | |
| † | A zero balance may reflect actual amounts rounding to less than one thousand. |
| (a) | Includes adjustments required by U.S. GAAP and may differ from net asset values and performance reported elsewhere by the Funds. |
| | | | | | |
| 20 | | PIMCO EQUITY SERIES | | | See Accompanying Notes | |
Statements of Operations
| | | | | | | | | | | | | | | | |
| Six Months Ended December 31, 2020 (Unaudited) | | | | | | | | | | | | |
| (Amounts in thousands†) | | 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 | | | PIMCO
RAFI ESG
U.S. ETF | |
| | | | |
Investment Income: | | | | | | | | | | | | | | | | |
| | | | |
Dividends, net of foreign taxes* | | $ | 8,934 | | | $ | 520 | | | $ | 547 | | | $ | 123 | |
Securities lending income | | | 130 | | | | 2 | | | | 1 | | | | 0 | |
Total Income | | | 9,064 | | | | 522 | | | | 548 | | | | 123 | |
| | | | |
Expenses: | | | | | | | | | | | | | | | | |
| | | | |
Management fees | | | 1,717 | | | | 102 | | | | 71 | | | | 15 | |
Trustee fees | | | 22 | | | | 1 | | | | 2 | | | | 0 | |
Interest expense | | | 11 | | | | 0 | | | | 0 | | | | 0 | |
Miscellaneous expense | | | 17 | | | | 1 | | | | 1 | | | | 0 | |
Total Expenses | | | 1,767 | | | | 104 | | | | 74 | | | | 15 | |
Waiver and/or Reimbursement by PIMCO | | | (22 | ) | | | (1 | ) | | | (1 | ) | | | (0 | ) |
Net Expenses | | | 1,745 | | | | 103 | | | | 73 | | | | 15 | |
| | | | |
Net Investment Income (Loss) | | | 7,319 | | | | 419 | | | | 475 | | | | 108 | |
| | | | |
Net Realized Gain (Loss): | | | | | | | | | | | | | | | | |
| | | | |
Investments in securities | | | 11,617 | | | | (1,700 | ) | | | (1,633 | ) | | | (143 | ) |
In-kind redemptions | | | 1,731 | | | | 0 | | | | 2,258 | | | | 0 | |
Over the counter financial derivative instruments | | | (30 | ) | | | 0 | | | | 0 | | | | 0 | |
Foreign currency | | | 41 | | | | 22 | | | | 0 | | | | 0 | |
| | | | |
Net Realized Gain (Loss) | | | 13,359 | | | | (1,678 | ) | | | 625 | | | | (143 | ) |
| | | | |
Net Change in Unrealized Appreciation (Depreciation): | | | | | | | | | | | | | | | | |
| | | | |
Investments in securities | | | 175,696 | | | | 11,528 | | | | 9,586 | | | | 2,095 | |
Foreign currency assets and liabilities | | | 22 | | | | 2 | | | | 0 | | | | 0 | |
| | | | |
Net Change in Unrealized Appreciation (Depreciation) | | | 175,718 | | | | 11,530 | | | | 9,586 | | | | 2,095 | |
| | | | |
Net Increase (Decrease) in Net Assets Resulting from Operations | | $ | 196,396 | | | $ | 10,271 | | | $ | 10,686 | | | $ | 2,060 | |
| | | | |
* Foreign tax withholdings - Dividends | | $ | 1,579 | | | $ | 50 | | | $ | 0 | | | $ | 0 | |
| † | A zero balance may reflect actual amounts rounding to less than one thousand. |
| | | | | | | | | | | | |
| | | SEMIANNUAL REPORT | | | | | | | DECEMBER 31, 2020 | | | 21 |
Statements of Changes in Net Assets
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | 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 | | | PIMCO
RAFI ESG U.S. ETF | |
| | | | | | | | |
| (Amounts in thousands†) | | Six Months Ended
December 31, 2020
(Unaudited) | | | Year Ended
June 30, 2020 | | | Six Months Ended
December 31, 2020
(Unaudited) | | | Year Ended
June 30, 2020 | | | Six Months Ended
December 31, 2020
(Unaudited) | | | Year Ended
June 30, 2020 | | | Six Months Ended
December 31, 2020
(Unaudited) | | | Inception date
through
June 30, 2020(a) | |
| | | | | | | | |
Increase (Decrease) in Net Assets from: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | |
Operations: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | |
Net investment income (loss) | | $ | 7,319 | | | $ | 14,272 | | | $ | 419 | | | $ | 829 | | | $ | 475 | | | $ | 2,131 | | | $ | 108 | | | $ | 204 | |
Net realized gain (loss) | | | 13,359 | | | | (73,933 | ) | | | (1,678 | ) | | | (1,355 | ) | | | 625 | | | | (3,061 | ) | | | (143 | ) | | | (5,807 | ) |
Net change in unrealized appreciation (depreciation) | | | 175,718 | | | | (10,187 | ) | | | 11,530 | | | | (1,547 | ) | | | 9,586 | | | | (6,894 | ) | | | 2,095 | | | | (1,710 | ) |
| | | | | | | | |
Net Increase (Decrease) in Net Assets Resulting from Operations | | | 196,396 | | | | (69,848 | ) | | | 10,271 | | | | (2,073 | ) | | | 10,686 | | | | (7,824 | ) | | | 2,060 | | | | (7,313 | ) |
| | | | | | | | |
Distributions to Shareholders: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | |
From net investment income and/or net realized capital gains | | | (11,407 | ) | | | (13,291 | ) | | | (643 | ) | | | (1,302 | ) | | | (605 | ) | | | (2,511 | ) | | | (184 | ) | | | (138 | ) |
| | | | | | | | |
Total Distributions(b) | | | (11,407 | ) | | | (13,291 | ) | | | (643 | ) | | | (1,302 | ) | | | (605 | ) | | | (2,511 | ) | | | (184 | ) | | | (138 | ) |
| | | | | | | | |
Fund Share Transactions: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | |
Receipts for shares sold | | | 5,453 | | | | 305,403 | | | | 38,943 | | | | 14,949 | | | | 42,237 | | | | 56,341 | | | | 1,279 | | | | 28,240 | |
Cost of shares redeemed | | | (17,969 | ) | | | (80,883 | ) | | | 0 | | | | (30,231 | ) | | | (9,600 | ) | | | (117,461 | ) | | | 0 | | | | (11,801 | ) |
Net increase (decrease) resulting from Fund share transactions | | | (12,516 | ) | | | 224,520 | | | | 38,943 | | | | (15,282 | ) | | | 32,637 | | | | (61,120 | ) | | | 1,279 | | | | 16,439 | |
| | | | | | | | |
Total Increase (Decrease) in Net Assets | | | 172,473 | | | | 141,381 | | | | 48,571 | | | | (18,657 | ) | | | 42,718 | | | | (71,455 | ) | | | 3,155 | | | | 8,988 | |
| | | | | | | | |
Net Assets: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | |
Beginning of period | | | 619,324 | | | | 477,943 | | | | 24,231 | | | | 42,888 | | | | 25,525 | | | | 96,980 | | | | 8,988 | | | | 0 | |
End of period | | $ | 791,797 | | | $ | 619,324 | | | $ | 72,802 | | | $ | 24,231 | | | $ | 68,243 | | | $ | 25,525 | | | $ | 12,143 | | | $ | 8,988 | |
| | | | | | | | |
Shares of Beneficial Interest: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | |
Shares sold | | | 200 | | | | 14,000 | | | | 1,600 | | | | 600 | | | | 1,400 | | | | 1,900 | | | | 50 | | | | 1,120 | |
Shares redeemed | | | (800 | ) | | | (4,000 | ) | | | 0 | | | | (1,260 | ) | | | (300 | ) | | | (4,300 | ) | | | 0 | | | | (700 | ) |
Net increase (decrease) in shares outstanding | | | (600 | ) | | | 10,000 | | | | 1,600 | | | | (660 | ) | | | 1,100 | | | | (2,400 | ) | | | 50 | | | | 420 | |
| † | A zero balance may reflect actual amounts rounding to less than one thousand. |
| (a) | Inception date of the Fund was December 18, 2019. |
| (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. |
| | | | | | |
| 22 | | PIMCO EQUITY SERIES | | | See Accompanying Notes | |
| | | | | | | | |
| Schedule of Investments | | PIMCO RAFI Dynamic Multi-Factor Emerging Markets Equity ETF | | | | December 31, 2020 | | (Unaudited) |
(Amounts in thousands*, except number of shares, contracts, units and ounces, if any)
| | | | | | | | | | | | |
| | | | | SHARES | | | | | MARKET
VALUE
(000S) | |
| INVESTMENTS IN SECURITIES 100.3% | |
| |
| COMMON STOCKS 91.4% | |
| |
| AUSTRALIA 0.0% | |
| |
| MATERIALS 0.0% | |
| | | | |
MMG Ltd. (a) | | | | | 196,000 | | | $ | | | 85 | |
| | | | | | | | | | | | |
Total Australia | | | | | | | | | | | 85 | |
| | | | | | | | | | | | |
| |
| BRAZIL 5.9% | |
| |
| COMMUNICATION SERVICES 0.1% | |
| | | | |
Telefonica Brasil S.A. | | | | | 92,500 | | | | | | 832 | |
| | | | | | | | | | | | |
| |
| CONSUMER DISCRETIONARY 0.2% | |
| | | | |
Lojas Renner S.A. | | | | | 54,180 | | | | | | 456 | |
| | | | |
Petrobras Distribuidora S.A. | | | | | 189,000 | | | | | | 806 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 1,262 | |
| | | | | | | | | | | | |
| |
| CONSUMER STAPLES 0.7% | |
| | | | |
Ambev S.A. | | | | | 698,900 | | | | | | 2,113 | |
| | | | |
BRF S.A. (a) | | | | | 33,700 | | | | | | 143 | |
| | | | |
JBS S.A. | | | | | 455,400 | | | | | | 2,076 | |
| | | | |
Raia Drogasil S.A. | | | | | 278,500 | | | | | | 1,339 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 5,671 | |
| | | | | | | | | | | | |
| |
| ENERGY 0.3% | |
| | | | |
Cosan Ltd. ‘A’ | | | | | 3,048 | | | | | | 56 | |
| | | | |
Cosan S.A. | | | | | 20,800 | | | | | | 304 | |
| | | | |
Ultrapar Participacoes S.A. | | | | | 316,400 | | | | | | 1,448 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 1,808 | |
| | | | | | | | | | | | |
| |
| FINANCIALS 0.7% | |
| | | | |
B3 S.A. - Brasil Bolsa Balcao | | | | | 311,200 | | | | | | 3,726 | |
| | | | |
Banco BTG Pactual S.A. | | | | | 35,300 | | | | | | 638 | |
| | | | |
Banco do Brasil S.A. | | | | | 115,300 | | | | | | 867 | |
| | | | |
BB Seguridade Participacoes S.A. | | | | | 41,200 | | | | | | 236 | |
| | | | |
IRB Brasil Resseguros S/A | | | | | 33,305 | | | | | | 52 | |
| | | | |
Porto Seguro S.A. | | | | | 16,600 | | | | | | 157 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 5,676 | |
| | | | | | | | | | | | |
| |
| HEALTH CARE 0.0% | |
| | | | |
Hypera S.A. | | | | | 20,800 | | | | | | 137 | |
| | | | | | | | | | | | |
| |
| INDUSTRIALS 0.5% | |
| | | | |
CCR S.A. | | | | | 60,200 | | | | | | 157 | |
| | | | |
Embraer S.A. (a) | | | | | 28,400 | | | | | | 48 | |
| | | | |
WEG S.A. | | | | | 258,830 | | | | | | 3,780 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 3,985 | |
| | | | | | | | | | | | |
| |
| MATERIALS 3.3% | |
| | | | |
Cia Siderurgica Nacional S.A. | | | | | 174,000 | | | | | | 1,072 | |
| | | | |
Klabin S.A. | | | | | 286,700 | | | | | | 1,457 | |
| | | | |
Suzano S.A. | | | | | 150,100 | | | | | | 1,686 | |
| | | | |
Vale S.A. | | | | | 1,310,200 | | | | | | 22,052 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 26,267 | |
| | | | | | | | | | | | |
| |
| UTILITIES 0.1% | |
| | | | |
Cia de Saneamento Basico do Estado de Sao Paulo | | | | | 23,700 | | | | | | 204 | |
| | | | |
Energisa S.A. | | | | | 15,900 | | | | | | 161 | |
| | | | | | | | | | | | |
| | | | | SHARES | | | | | MARKET
VALUE
(000S) | |
| | | | |
Engie Brasil Energia S.A. | | | | | 44,825 | | | $ | | | 381 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 746 | |
| | | | | | | | | | | | |
Total Brazil | | | | | | | | | | | 46,384 | |
| | | | | | | | | | | | |
| |
| CHILE 1.0% | |
| |
| COMMUNICATION SERVICES 0.0% | |
| | | | |
Empresa Nacional de Telecomunicaciones S.A. | | | | | 7,748 | | | | | | 48 | |
| | | | | | | | | | | | |
| |
| CONSUMER DISCRETIONARY 0.2% | |
| | | | |
Falabella S.A. | | | | | 276,706 | | | | | | 1,024 | |
| | | | | | | | | | | | |
| |
| CONSUMER STAPLES 0.2% | |
| | | | |
Cencosud S.A. | | | | | 685,299 | | | | | | 1,221 | |
| | | | |
Cia Cervecerias Unidas S.A. | | | | | 49,575 | | | | | | 366 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 1,587 | |
| | | | | | | | | | | | |
| |
| ENERGY 0.1% | |
| | | | |
Empresas COPEC S.A. | | | | | 71,748 | | | | | | 727 | |
| | | | | | | | | | | | |
| |
| FINANCIALS 0.1% | |
| | | | |
Banco de Chile | | | | | 6,678,952 | | | | | | 682 | |
| | | | |
Banco de Credito e Inversiones | | | | | 3,461 | | | | | | 136 | |
| | | | |
Banco Santander Chile | | | | | 1,428,580 | | | | | | 68 | |
| | | | |
Itau CorpBanca Chile S.A. | | | | | 21,199,622 | | | | | | 71 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 957 | |
| | | | | | | | | | | | |
| |
| MATERIALS 0.1% | |
| | | | |
CAP S.A. | | | | | 19,647 | | | | | | 264 | |
| | | | |
Empresas CMPC S.A. | | | | | 216,256 | | | | | | 569 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 833 | |
| | | | | | | | | | | | |
| |
| UTILITIES 0.3% | |
| | | | |
AES Gener S.A. | | | | | 1,443,549 | | | | | | 239 | |
| | | | |
Aguas Andinas S.A. ‘A’ | | | | | 837,349 | | | | | | 270 | |
| | | | |
Colbun S.A. | | | | | 1,899,028 | | | | | | 335 | |
| | | | |
Enel Americas S.A. | | | | | 6,143,860 | | | | | | 1,002 | |
| | | | |
Enel Chile S.A. | | | | | 5,016,592 | | | | | | 391 | |
| | | | |
Engie Energia Chile S.A. | | | | | 113,088 | | | | | | 139 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 2,376 | |
| | | | | | | | | | | | |
Total Chile | | | | | | | | | | | 7,552 | |
| | | | | | | | | | | | |
| |
| CHINA 16.7% | |
| |
| COMMUNICATION SERVICES 3.6% | |
| | | | |
China Telecom Corp. Ltd. ‘H’ | | | | | 3,952,000 | | | | | | 1,090 | |
| | | | |
JOYY, Inc. ADR | | | | | 11,177 | | | | | | 894 | |
| | | | |
NetEase, Inc. ADR | | | | | 95,114 | | | | | | 9,109 | |
| | | | |
Tencent Holdings Ltd. | | | | | 185,000 | | | | | | 13,312 | |
| | | | |
Tencent Music Entertainment Group ADR (a) | | | | | 223,236 | | | | | | 4,295 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 28,700 | |
| | | | | | | | | | | | |
| |
| CONSUMER DISCRETIONARY 6.6% | |
| | | | |
ANTA Sports Products Ltd. | | | | | 200,000 | | | | | | 3,173 | |
| | | | |
BAIC Motor Corp. Ltd. ‘H’ | | | | | 158,500 | | | | | | 59 | |
| | | | |
BYD Co. Ltd. ‘H’ | | | | | 82,000 | | | | | | 2,159 | |
| | | | |
China Yongda Automobiles Services Holdings Ltd. | | | | | 114,000 | | | | | | 189 | |
| | | | |
Dongfeng Motor Group Co. Ltd. ‘H’ | | | | | 392,000 | | | | | | 458 | |
| | | |
GOME Retail Holdings Ltd. (a)(c) | | | 4,129,000 | | | | | | 496 | |
| | | | | | | | | | | | |
| | | | | SHARES | | | | | MARKET
VALUE
(000S) | |
| | | | |
Great Wall Motor Co. Ltd. ‘H’ | | | | | 1,187,500 | | | $ | | | 4,086 | |
| | | | |
JD.com, Inc. ADR (a) | | | | | 159,231 | | | | | | 13,996 | |
| | | | |
Meituan (a) | | | | | 308,700 | | | | | | 11,620 | |
| | | | |
Minth Group Ltd. | | | | | 72,000 | | | | | | 381 | |
| | | | |
New Oriental Education & Technology Group, Inc. SP - ADR (a) | | | | | 24,370 | | | | | | 4,528 | |
| | | | |
Shenzhou International Group Holdings Ltd. | | | | | 154,700 | | | | | | 3,032 | |
| | | | |
Vipshop Holdings Ltd. ADR (a) | | | | | 97,285 | | | | | | 2,735 | |
| | | | |
Yum China Holdings, Inc. | | | | | 75,616 | | | | | | 4,317 | |
| | | | |
Zhongsheng Group Holdings Ltd. | | | | | 100,500 | | | | | | 718 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 51,947 | |
| | | | | | | | | | | | |
| |
| CONSUMER STAPLES 0.6% | |
| | | | |
Dali Foods Group Co. Ltd. | | | | | 557,000 | | | | | | 319 | |
| | | | |
Hengan International Group Co. Ltd. | | | | | 219,500 | | | | | | 1,554 | |
| | | | |
Tingyi Cayman Islands Holding Corp. | | | | | 480,000 | | | | | | 821 | |
| | | | |
Tsingtao Brewery Co. Ltd. ‘H’ | | | | | 100,000 | | | | | | 1,048 | |
| | | | |
Uni-President China Holdings Ltd. | | | | | 238,000 | | | | | | 242 | |
| | | | |
Want Want China Holdings Ltd. | | | | | 1,353,000 | | | | | | 978 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 4,962 | |
| | | | | | | | | | | | |
| |
| ENERGY 0.6% | |
| | | | |
China Petroleum & Chemical Corp. ‘H’ | | | | | 5,798,000 | | | | | | 2,582 | |
| | | | |
China Shenhua Energy Co. Ltd. ‘H’ | | | | | 800,500 | | | | | | 1,509 | |
| | | | |
CNOOC Ltd. | | | | | 923,000 | | | | | | 847 | |
| | | | |
Yanzhou Coal Mining Co. Ltd. ‘H’ | | | | | 66,000 | | | | | | 53 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 4,991 | |
| | | | | | | | | | | | |
| |
| FINANCIALS 0.7% | |
| | | | |
China Galaxy Securities Co. Ltd. ‘H’ | | | | | 475,500 | | | | | | 298 | |
| | | | |
China International Capital Corp. Ltd. ‘H’ | | | | | 530,000 | | | | | | 1,437 | |
| | | | |
China Merchants Bank Co. Ltd. ‘H’ | | | | | 519,000 | | | | | | 3,283 | |
| | | | |
China Reinsurance Group Corp. ‘H’ | | | | | 1,389,000 | | | | | | 143 | |
| | | | |
GF Securities Co. Ltd. ‘H’ | | | | | 215,434 | | | | | | 305 | |
| | | | |
Postal Savings Bank of China Co. Ltd. ‘H’ | | | | | 534,000 | | | | | | 302 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 5,768 | |
| | | | | | | | | | | | |
| |
| HEALTH CARE 0.2% | |
| | | | |
China Resources Pharmaceutical Group Ltd. | | | | | 317,500 | | | | | | 163 | |
| | | | |
CSPC Pharmaceutical Group Ltd. | | | | | 107,680 | | | | | | 110 | |
| | | | |
Shandong Weigao Group Medical Polymer Co. Ltd. ‘H’ | | | | | 312,000 | | | | | | 706 | |
| | | | |
Shanghai Fosun Pharmaceutical Group Co. Ltd. | | | | | 92,500 | | | | | | 442 | |
| | | | |
Sinopharm Group Co. Ltd. ‘H’ | | | | | 65,200 | | | | | | 158 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 1,579 | |
| | | | | | | | | | | | |
| |
| INDUSTRIALS 1.0% | |
| | | | |
AviChina Industry & Technology Co. Ltd. ‘H’ | | | | | 255,000 | | | | | | 178 | |
| | | | |
Beijing Capital International Airport Co. Ltd. ‘H’ | | | | | 60,000 | | | | | | 50 | |
| | | | | | | | | | | | |
| See Accompanying Notes | | | SEMIANNUAL REPORT | | | | | | | DECEMBER 31, 2020 | | | 23 |
| | | | | | | | |
| Schedule of Investments | | PIMCO RAFI Dynamic Multi-Factor Emerging Markets Equity ETF | | (Cont.) | | | | |
| | | | | | | | | | | | |
| | | | | SHARES | | | | | MARKET
VALUE
(000S) | |
| | | | |
China Communications Services Corp. Ltd. ‘H’ | | | | | 368,000 | | | $ | | | 163 | |
| | | | |
China Lesso Group Holdings Ltd. ‘L’ | | | | | 165,000 | | | | | | 259 | |
| | | | |
COSCO SHIPPING Holdings Co. Ltd. ‘H’ (a) | | | | | 379,500 | | | | | | 455 | |
| | | | |
Haitian International Holdings Ltd. | | | | | 27,000 | | | | | | 93 | |
| | | | |
Jiangsu Expressway Co. Ltd. ‘H’ | | | | | 358,000 | | | | | | 400 | |
| | | | |
Sinopec Engineering Group Co. Ltd. ‘H’ | | | | | 117,500 | | | | | | 51 | |
| | | | |
Sinotrans Ltd. ‘H’ | | | | | 594,000 | | | | | | 216 | |
| | | | |
Sinotruk Hong Kong Ltd. | | | | | 68,500 | | | | | | 176 | |
| | | | |
Weichai Power Co. Ltd. ‘H’ | | | | | 321,000 | | | | | | 645 | |
| | | | |
Yangzijiang Shipbuilding Holdings Ltd. | | | | | 918,900 | | | | | | 664 | |
| | | | |
Zhejiang Expressway Co. Ltd. ‘H’ | | | | | 304,000 | | | | | | 257 | |
| | | | |
Zhuzhou CRRC Times Electric Co. Ltd. ‘H’ | | | | | 131,500 | | | | | | 575 | |
| | | | |
ZTO Express Cayman, Inc. ADR | | | | | 111,809 | | | | | | 3,260 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 7,442 | |
| | | | | | | | | | | | |
| |
| INFORMATION TECHNOLOGY 1.7% | |
| | | | |
AAC Technologies Holdings, Inc. | | | | | 73,500 | | | | | | 408 | |
| | | | |
Baidu, Inc. SP - ADR (a) | | | | | 36,497 | | | | | | 7,892 | |
| | | | |
BYD Electronic International Co. Ltd. (c) | | | | | 84,500 | | | | | | 443 | |
| | | | |
FIH Mobile Ltd. (a) | | | | | 1,117,000 | | | | | | 137 | |
| | | | |
Lenovo Group Ltd. | | | | | 886,000 | | | | | | 838 | |
| | | | |
Xiaomi Corp. (a) | | | | | 863,800 | | | | | | 3,671 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 13,389 | |
| | | | | | | | | | | | |
| |
| MATERIALS 0.7% | |
| | | | |
Anhui Conch Cement Co. Ltd. ‘H’ | | | | | 164,000 | | | | | | 1,028 | |
| | | | |
China BlueChemical Ltd. ‘H’ | | | | | 848,000 | | | | | | 135 | |
| | | | |
China Hongqiao Group Ltd. | | | | | 134,000 | | | | | | 123 | |
| | | | |
China Molybdenum Co. Ltd. ‘H’ | | | | | 141,000 | | | | | | 92 | |
| | | | |
China National Building Material Co. Ltd. ‘H’ | | | | | 1,426,000 | | | | | | 1,716 | |
| | | | |
China Oriental Group Co. Ltd. | | | | | 570,000 | | | | | | 152 | |
| | | | |
Jiangxi Copper Co. Ltd. ‘H’ | | | | | 435,000 | | | | | | 685 | |
| | | | |
Sinopec Shanghai Petrochemical Co. Ltd. ‘H’ | | | | | 1,400,000 | | | | | | 298 | |
| | | | |
Zijin Mining Group Co. Ltd. ‘H’ | | | | | 820,000 | | | | | | 929 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 5,158 | |
| | | | | | | | | | | | |
| |
| REAL ESTATE 0.5% | |
| | | | |
Agile Group Holdings Ltd. | | | | | 196,000 | | | | | | 261 | |
| | | | |
China Evergrande Group (c) | | | | | 233,000 | | | | | | 448 | |
| | | | |
Greentown China Holdings Ltd. | | | | | 272,500 | | | | | | 398 | |
| | | | |
Guangzhou R&F Properties Co. Ltd. ‘H’ | | | | | 182,400 | | | | | | 235 | |
| | | | |
Kaisa Group Holdings Ltd. | | | | | 568,000 | | | | | | 281 | |
| | | | |
KWG Property Holding Ltd. | | | | | 193,500 | | | | | | 264 | |
| | | | |
Logan Group Co. Ltd. | | | | | 177,000 | | | | | | 290 | |
| | | | |
Longfor Group Holdings Ltd. | | | | | 227,000 | | | | | | 1,328 | |
| | | | |
Powerlong Real Estate Holdings Ltd. | | | | | 81,000 | | | | | | 56 | |
| | | | |
Shui On Land Ltd. | | | | | 1,861,000 | | | | | | 259 | |
| | | | |
Sino-Ocean Group Holding Ltd. | | | | | 691,000 | | | | | | 138 | |
| | | | |
SOHO China Ltd. | | | | | 730,000 | | | | | | 217 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 4,175 | |
| | | | | | | | | | | | |
| |
| | | | | | | | | | | | |
| | | | | SHARES | | | | | MARKET
VALUE
(000S) | |
| UTILITIES 0.5% | |
| | | | |
Beijing Jingneng Clean Energy Co. Ltd. ‘H’ | | | | | 154,000 | | | $ | | | 50 | |
| | | | |
CGN Power Co. Ltd. ‘H’ | | | | | 1,712,000 | | | | | | 369 | |
| | | | |
China Longyuan Power Group Corp. Ltd. ‘H’ | | | | | 269,000 | | | | | | 270 | |
| | | | |
Datang International Power Generation Co. Ltd. ‘H’ | | | | | 874,000 | | | | | | 113 | |
| | | | |
ENN Energy Holdings Ltd. | | | | | 177,300 | | | | | | 2,603 | |
| | | | |
Huadian Power International Corp. Ltd. ‘H’ | | | | | 752,000 | | | | | | 189 | |
| | | | |
Huaneng Power International, Inc. ‘H’ | | | | | 1,596,000 | | | | | | 583 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 4,177 | |
| | | | | | | | | | | | |
Total China | | | | | | | | | | | 132,288 | |
| | | | | | | | | | | | |
| |
| GREECE 0.5% | |
| |
| COMMUNICATION SERVICES 0.1% | |
| | | | |
Hellenic Telecommunications Organization S.A. | | | | | 38,172 | | | | | | 614 | |
| | | | | | | | | | | | |
| |
| CONSUMER DISCRETIONARY 0.1% | |
| | | | |
OPAP S.A. | | | | | 32,392 | | | | | | 433 | |
| | | | | | | | | | | | |
| |
| ENERGY 0.0% | |
| | | | |
Motor Oil Hellas Corinth Refineries S.A. | | | | | 17,692 | | | | | | 254 | |
| | | | | | | | | | | | |
| |
| FINANCIALS 0.2% | |
| | | | |
Alpha Bank AE (a) | | | | | 333,621 | | | | | | 386 | |
| | | | |
Eurobank Ergasias S.A. (a) | | | | | 635,534 | | | | | | 447 | |
| | | | |
National Bank of Greece S.A. (a) | | | | | 252,042 | | | | | | 690 | |
| | | | |
Piraeus Bank S.A. (a) | | | | | 122,173 | | | | | | 192 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 1,715 | |
| | | | | | | | | | | | |
| |
| UTILITIES 0.1% | |
| | | | |
Public Power Corp. S.A. (a)(c) | | | | | 53,851 | | | | | | 489 | |
| | | | | | | | | | | | |
Total Greece | | | | | | | | | | | 3,505 | |
| | | | | | | | | | | | |
| |
| HONG KONG 2.8% | |
| |
| COMMUNICATION SERVICES 0.5% | |
| | | | |
China Mobile Ltd. | | | | | 698,500 | | | | | | 3,982 | |
| | | | |
China Unicom Hong Kong Ltd. | | | | | 208,000 | | | | | | 119 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 4,101 | |
| | | | | | | | | | | | |
| |
| CONSUMER DISCRETIONARY 0.3% | |
| | | | |
Geely Automobile Holdings Ltd. | | | | | 712,000 | | | | | | 2,438 | |
| | | | | | | | | | | | |
| |
| CONSUMER STAPLES 1.1% | |
| | | | |
China Mengniu Dairy Co. Ltd. | | | | | 329,000 | | | | | | 1,984 | |
| | | | |
China Resources Beer Holdings Co. Ltd. | | | | | 726,000 | | | | | | 6,676 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 8,660 | |
| | | | | | | | | | | | |
| |
| FINANCIALS 0.1% | |
| | | | |
China Everbright Ltd. | | | | | 242,000 | | | | | | 324 | |
| | | | |
Far East Horizon Ltd. | | | | | 519,000 | | | | | | 535 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 859 | |
| | | | | | | | | | | | |
| |
| | | | | | | | | | | | |
| | | | | SHARES | | | | | MARKET
VALUE
(000S) | |
| INDUSTRIALS 0.1% | |
| | | | |
COSCO SHIPPING Ports Ltd. | | | | | 364,000 | | | $ | | | 253 | |
| | | |
Shanghai Industrial Holdings Ltd. | | | 68,000 | | | | | | 93 | |
| | | | |
Shenzhen International Holdings Ltd. | | | | | 70,500 | | | | | | 114 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 460 | |
| | | | | | | | | | | | |
| |
| REAL ESTATE 0.3% | |
| | | | |
China Overseas Land & Investment Ltd. | | | | | 894,000 | | | | | | 1,942 | |
| | | | |
Poly Property Group Co. Ltd. | | | | | 705,000 | | | | | | 206 | |
| | | | |
Yuexiu Property Co. Ltd. | | | | | 2,052,000 | | | | | | 413 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 2,561 | |
| | | | | | | | | | | | |
| |
| UTILITIES 0.4% | |
| | | | |
China Power International Development Ltd. | | | | | 1,876,000 | | | | | | 402 | |
| | | | |
China Resources Gas Group Ltd. | | | | | 146,000 | | | | | | 776 | |
| | | | |
China Resources Power Holdings Co. Ltd. | | | | | 586,000 | | | | | | 631 | |
| | | | |
Guangdong Investment Ltd. | | | | | 478,000 | | | | | | 862 | |
| | | | |
Kunlun Energy Co. Ltd. | | | | | 858,000 | | | | | | 743 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 3,414 | |
| | | | | | | | | | | | |
Total Hong Kong | | | | | | | | | | | 22,493 | |
| | | | | | | | | | | | |
| |
| INDIA 7.6% | |
| |
| CONSUMER DISCRETIONARY 0.3% | |
| | | | |
Tata Motors Ltd. ADR (a) | | | | | 199,387 | | | | | | 2,512 | |
| | | | | | | | | | | | |
| |
| ENERGY 1.7% | |
| | | | |
Reliance Industries Ltd. | | | | | 190,161 | | | | | | 10,367 | |
| | | | |
Reliance Industries Ltd. GDR | | | | | 50,800 | | | | | | 2,779 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 13,146 | |
| | | | | | | | | | | | |
| |
| FINANCIALS 1.0% | |
| | | | |
HDFC Bank Ltd. ADR (a) | | | | | 111,525 | | | | | | 8,059 | |
| | | | | | | | | | | | |
| |
| HEALTH CARE 0.7% | |
| | | |
Dr Reddy’s Laboratories Ltd. ADR | | | 78,128 | | | | | | 5,570 | |
| | | | | | | | | | | | |
| |
| INFORMATION TECHNOLOGY 3.6% | |
| | | | |
Infosys Ltd. SP - ADR | | | | | 1,425,500 | | | | | | 24,162 | |
| | | | |
Wipro Ltd. ADR | | | | | 848,013 | | | | | | 4,792 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 28,954 | |
| | | | | | | | | | | | |
| |
| MATERIALS 0.3% | |
| | | | |
Vedanta Ltd. ADR | | | | | 244,998 | | | | | | 2,151 | |
| | | | | | | | | | | | |
Total India | | | | | | | | | | | 60,392 | |
| | | | | | | | | | | | |
| |
| INDONESIA 1.0% | |
| |
| COMMUNICATION SERVICES 0.2% | |
| | | | |
Telkom Indonesia Persero Tbk PT | | | | | 6,902,800 | | | | | | 1,628 | |
| | | | | | | | | | | | |
| |
| CONSUMER DISCRETIONARY 0.2% | |
| | | | |
Astra International Tbk PT | | | | | 3,089,500 | | | | | | 1,328 | |
| | | | | | | | | | | | |
| |
| CONSUMER STAPLES 0.3% | |
| | | | |
Charoen Pokphand Indonesia Tbk PT | | | | | 796,700 | | | | | | 370 | |
| | | | |
Gudang Garam Tbk PT (a) | | | | | 117,800 | | | | | | 344 | |
| | | | | | |
| 24 | | PIMCO EQUITY SERIES | | | See Accompanying Notes | |
| | | | | | | | |
| | | | | | December 31, 2020 | | (Unaudited) |
| | | | | | | | | | | | |
| | | | | SHARES | | | | | MARKET
VALUE
(000S) | |
| | | | |
Hanjaya Mandala Sampoerna Tbk PT | | | | | 1,760,300 | | | $ | | | 189 | |
| | | | |
Indofood CBP Sukses Makmur Tbk PT | | | | | 387,200 | | | | | | 264 | |
| | | | |
Indofood Sukses Makmur Tbk PT | | | | | 784,900 | | | | | | 383 | |
| | | | |
Unilever Indonesia Tbk PT | | | | | 835,200 | | | | | | 437 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 1,987 | |
| | | | | | | | | | | | |
| |
| ENERGY 0.1% | |
| | | | |
Adaro Energy Tbk PT | | | | | 2,997,900 | | | | | | 305 | |
| | | | |
Bukit Asam Tbk PT | | | | | 818,100 | | | | | | 164 | |
| | | | |
Indo Tambangraya Megah Tbk PT | | | | | 183,300 | | | | | | 181 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 650 | |
| | | | | | | | | | | | |
| |
| FINANCIALS 0.1% | |
| | | | |
Bank Central Asia Tbk PT | | | | | 462,200 | | | | | | 1,114 | |
| | | | | | | | | | | | |
| |
| HEALTH CARE 0.0% | |
| | | | |
Kalbe Farma Tbk PT | | | | | 692,800 | | | | | | 73 | |
| | | | | | | | | | | | |
| |
| INDUSTRIALS 0.0% | |
| | | | |
United Tractors Tbk PT | | | | | 206,700 | | | | | | 392 | |
| | | | | | | | | | | | |
| |
| MATERIALS 0.1% | |
| | | | |
Indah Kiat Pulp & Paper Corp. Tbk PT | | | | | 390,500 | | | | | | 290 | |
| | | | |
Indocement Tunggal Prakarsa Tbk PT | | | | | 291,500 | | | | | | 300 | |
| | | | |
Semen Indonesia Persero Tbk PT | | | | | 424,300 | | | | | | 376 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 966 | |
| | | | | | | | | | | | |
| |
| UTILITIES 0.0% | |
| | | | |
Perusahaan Gas Negara Tbk PT | | | | | 805,200 | | | | | | 95 | |
| | | | | | | | | | | | |
Total Indonesia | | | | | | | | | | | 8,233 | |
| | | | | | | | | | | | |
| |
| MALAYSIA 1.4% | |
| |
| COMMUNICATION SERVICES 0.2% | |
| | | | |
Axiata Group Bhd. | | | | | 328,800 | | | | | | 306 | |
| | | | |
DiGi.Com Bhd. | | | | | 394,900 | | | | | | 406 | |
| | | | |
Maxis Bhd. | | | | | 248,300 | | | | | | 312 | |
| | | | |
Telekom Malaysia Bhd. | | | | | 308,800 | | | | | | 416 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 1,440 | |
| | | | | | | | | | | | |
| |
| CONSUMER DISCRETIONARY 0.2% | |
| | | | |
Genting Bhd. | | | | | 774,400 | | | | | | 860 | |
| | | | |
Genting Malaysia Bhd. | | | | | 940,700 | | | | | | 631 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 1,491 | |
| | | | | | | | | | | | |
| |
| CONSUMER STAPLES 0.1% | |
| | | | |
IOI Corp. Bhd. | | | | | 313,900 | | | | | | 341 | |
| | | | |
Kuala Lumpur Kepong Bhd. | | | | | 63,700 | | | | | | 375 | |
| | | | |
PPB Group Bhd. | | | | | 89,280 | | | | | | 411 | |
| | | | |
Sime Darby Plantation Bhd. | | | | | 166,000 | | | | | | 207 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 1,334 | |
| | | | | | | | | | | | |
| |
| ENERGY 0.0% | |
| | | | |
Petronas Dagangan Bhd. | | | | | 31,000 | | | | | | 165 | |
| | | | | | | | | | | | |
| |
| FINANCIALS 0.5% | |
| | | | |
AMMB Holdings Bhd. | | | | | 291,500 | | | | | | 265 | |
| | | | | | | | | | | | |
| | | | | SHARES | | | | | MARKET
VALUE
(000S) | |
| | | | |
CIMB Group Holdings Bhd. | | | | | 682,900 | | | $ | | | 731 | |
| | | | |
Hong Leong Bank Bhd. | | | | | 27,300 | | | | | | 124 | |
| | | | |
Hong Leong Financial Group Bhd. | | | | | 15,300 | | | | | | 69 | |
| | | | |
Malayan Banking Bhd. | | | | | 464,200 | | | | | | 977 | |
| | | | |
Public Bank Bhd. | | | | | 296,300 | | | | | | 1,519 | |
| | | | |
RHB Bank Bhd. | | | | | 52,600 | | | | | | 71 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 3,756 | |
| | | | | | | | | | | | |
| |
| HEALTH CARE 0.0% | |
| | | | |
IHH Healthcare Bhd. | | | | | 98,500 | | | | | | 135 | |
| | | | | | | | | | | | |
| |
| INDUSTRIALS 0.1% | |
| | | | |
IJM Corp. Bhd. | | | | | 549,500 | | | | | | 237 | |
| | | | |
MISC Bhd. | | | | | 256,400 | | | | | | 439 | |
| | | | |
Sime Darby Bhd. | | | | | 735,400 | | | | | | 423 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 1,099 | |
| | | | | | | | | | | | |
| |
| MATERIALS 0.1% | |
| | | | |
Petronas Chemicals Group Bhd. | | | | | 319,600 | | | | | | 592 | |
| | | | | | | | | | | | |
| |
| UTILITIES 0.2% | |
| | | | |
Petronas Gas Bhd. | | | | | 73,300 | | | | | | 314 | |
| | | | |
Tenaga Nasional Bhd. | | | | | 384,400 | | | | | | 997 | |
| | | | |
YTL Corp. Bhd. | | | | | 252,451 | | | | | | 48 | |
| | | | |
YTL Power International Bhd. | | | | | 227,906 | | | | | | 42 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 1,401 | |
| | | | | | | | | | | | |
Total Malaysia | | | | | | | | | | | 11,413 | |
| | | | | | | | | | | | |
| |
| MEXICO 2.2% | |
| |
| COMMUNICATION SERVICES 0.6% | |
| | | | |
America Movil S.A.B. de C.V. | | | | | 5,495,800 | | | | | | 4,002 | |
| | | | |
Grupo Televisa S.A.B. | | | | | 162,100 | | | | | | 266 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 4,268 | |
| | | | | | | | | | | | |
| |
| CONSUMER STAPLES 0.9% | |
| | | | |
Arca Continental S.A.B. de C.V. | | | | | 65,500 | | | | | | 315 | |
| | | | |
Becle S.A.B. de C.V. | | | | | 46,300 | | | | | | 116 | |
| | | | |
Coca-Cola Femsa S.A.B. de C.V. | | | | | 43,655 | | | | | | 201 | |
| | | | |
Gruma S.A.B. de C.V. ‘B’ | | | | | 69,550 | | | | | | 828 | |
| | | | |
Grupo Bimbo S.A.B. de C.V. ‘A’ | | | | | 141,800 | | | | | | 308 | |
| | | | |
Grupo Lala S.A.B. de C.V. | | | | | 108,900 | | | | | | 85 | |
| | | | |
Industrias Bachoco S.A.B. de C.V. | | | | | 41,700 | | | | | | 157 | |
| | | | |
Kimberly-Clark de Mexico S.A.B. de C.V. ‘A’ | | | | | 624,700 | | | | | | 1,067 | |
| | | | |
Wal-Mart de Mexico S.A.B. de C.V. | | | | | 1,425,000 | | | | | | 4,009 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 7,086 | |
| | | | | | | | | | | | |
| |
| FINANCIALS 0.0% | |
| | | | |
Grupo Elektra S.A.B. de C.V. | | | | | 4,435 | | | | | | 294 | |
| | | | | | | | | | | | |
| |
| INDUSTRIALS 0.1% | |
| | | | |
Alfa S.A.B. de C.V. ‘A’ | | | | | 513,000 | | | | | | 371 | |
| | | | |
Grupo Aeroportuario del Pacifico S.A.B. de C.V. | | | | | 14,700 | | | | | | 164 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 535 | |
| | | | | | | | | | | | |
| |
| MATERIALS 0.6% | |
| | | | |
Alpek S.A.B. de C.V. | | | | | 156,000 | | | | | | 137 | |
| | | | | | | | | | | | |
| | | | | SHARES | | | | | MARKET
VALUE
(000S) | |
| | | | |
Cemex S.A.B. de C.V. | | | | | 1,827,600 | | | $ | | | 943 | |
| | | | |
Grupo Mexico S.A.B. de C.V. ‘B’ | | | | | 721,400 | | | | | | 3,049 | |
| | | | |
Industrias Penoles S.A.B. de C.V. (a) | | | | | 21,510 | | | | | | 364 | |
| | | | |
Orbia Advance Corp. S.A.B. de C.V. | | | | | 216,500 | | | | | | 509 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 5,002 | |
| | | | | | | | | | | | |
| |
| UTILITIES 0.0% | |
| | | | |
Infraestructura Energetica Nova S.A.B. de C.V. | | | | | 58,900 | | | | | | 230 | |
| | | | | | | | | | | | |
Total Mexico | | | | | | | | | | | 17,415 | |
| | | | | | | | | | | | |
| |
| PHILIPPINES 0.6% | |
| |
| COMMUNICATION SERVICES 0.1% | |
| | | | |
Globe Telecom, Inc. | | | | | 7,905 | | | | | | 335 | |
| | | | |
PLDT, Inc. | | | | | 26,245 | | | | | | 733 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 1,068 | |
| | | | | | | | | | | | |
| |
| CONSUMER STAPLES 0.1% | |
| | | | |
Universal Robina Corp. | | | | | 112,490 | | | | | | 357 | |
| | | | | | | | | | | | |
| |
| FINANCIALS 0.1% | |
| | | | |
Bank of the Philippine Islands | | | | | 198,521 | | | | | | 336 | |
| | | | |
BDO Unibank, Inc. | | | | | 100,330 | | | | | | 223 | |
| | | | |
Metro Pacific Investments Corp. | | | | | 2,809,000 | | | | | | 251 | |
| | | | |
Metropolitan Bank & Trust Co. | | | | | 214,542 | | | | | | 219 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 1,029 | |
| | | | | | | | | | | | |
| |
| INDUSTRIALS 0.2% | |
| | | | |
Alliance Global Group, Inc. | | | | | 983,700 | | | | | | 217 | |
| | | | |
Ayala Corp. | | | | | 32,460 | | | | | | 559 | |
| | | | |
DMCI Holdings, Inc. | | | | | 1,123,100 | | | | | | 132 | |
| | | | |
GT Capital Holdings, Inc. | | | | | 6,230 | | | | | | 76 | |
| | | | |
International Container Terminal Services, Inc. | | | | | 131,500 | | | | | | 338 | |
| | | | |
SM Investments Corp. | | | | | 23,930 | | | | | | 523 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 1,845 | |
| | | | | | | | | | | | |
| |
| UTILITIES 0.1% | |
| | | | |
Aboitiz Power Corp. | | | | | 157,600 | | | | | | 87 | |
| | | | |
First Gen Corp. | | | | | 154,800 | | | | | | 91 | |
| | | | |
Manila Electric Co. | | | | | 50,660 | | | | | | 308 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 486 | |
| | | | | | | | | | | | |
Total Philippines | | | | | | | | | | | 4,785 | |
| | | | | | | | | | | | |
| |
| POLAND 0.7% | |
| |
| COMMUNICATION SERVICES 0.1% | |
| | | | |
Cyfrowy Polsat S.A. | | | | | 44,341 | | | | | | 362 | |
| | | | |
Orange Polska S.A. (a) | | | | | 159,834 | | | | | | 283 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 645 | |
| | | | | | | | | | | | |
| |
| ENERGY 0.2% | |
| | | | |
Grupa Lotos S.A. | | | | | 35,294 | | | | | | 392 | |
| | | | |
Polski Koncern Naftowy ORLEN S.A. | | | | | 51,598 | | | | | | 799 | |
| | | | |
Polskie Gornictwo Naftowe i Gazownictwo S.A. | | | | | 78,390 | | | | | | 117 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 1,308 | |
| | | | | | | | | | | | |
| |
| | | | | | | | | | | | |
| See Accompanying Notes | | | SEMIANNUAL REPORT | | | | | | | DECEMBER 31, 2020 | | | 25 |
| | | | | | | | |
| Schedule of Investments | | PIMCO RAFI Dynamic Multi-Factor Emerging Markets Equity ETF | | (Cont.) | | | | |
| | | | | | | | | | | | |
| | | | | SHARES | | | | | MARKET
VALUE
(000S) | |
| FINANCIALS 0.1% | |
| | | | |
Bank Polska Kasa Opieki S.A. | | | | | 3,701 | | | $ | | | 60 | |
| | | | |
Powszechny Zaklad Ubezpieczen S.A. | | | | | 72,838 | | | | | | 633 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 693 | |
| | | | | | | | | | | | |
| |
| INFORMATION TECHNOLOGY 0.0% | |
| | | | |
Asseco Poland S.A. | | | | | 7,535 | | | | | | 137 | |
| | | | | | | | | | | | |
| |
| MATERIALS 0.2% | |
| | | | |
Grupa Azoty S.A. (a) | | | | | 6,795 | | | | | | 50 | |
| | | | |
KGHM Polska Miedz S.A. (a) | | | | | 32,357 | | | | | | 1,594 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 1,644 | |
| | | | | | | | | | | | |
| |
| UTILITIES 0.1% | |
| | | | |
Enea S.A. | | | | | 45,926 | | | | | | 81 | |
| | | | |
PGE Polska Grupa Energetyczna S.A. (a) | | | | | 254,983 | | | | | | 446 | |
| | | | |
Tauron Polska Energia S.A. | | | | | 446,371 | | | | | | 326 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 853 | |
| | | | | | | | | | | | |
Total Poland | | | | | | | | | | | 5,280 | |
| | | | | | | | | | | | |
| |
| ROMANIA 0.0% | |
| |
| REAL ESTATE 0.0% | |
| | | | |
NEPI Rockcastle PLC | | | | | 17,146 | | | | | | 109 | |
| | | | | | | | | | | | |
Total Romania | | | | | | | | | | | 109 | |
| | | | | | | | | | | | |
| |
| RUSSIA 7.0% | |
| |
| COMMUNICATION SERVICES 1.2% | |
| | | | |
Mobile TeleSystems PJSC (c) | | | | | 922,370 | | | | | | 4,139 | |
| | | | |
Rostelecom PJSC | | | | | 315,670 | | | | | | 414 | |
| | | | |
Sistema PJSC FC | | | | | 4,274,400 | | | | | | 1,662 | |
| | | | |
Yandex NV (a) | | | | | 41,670 | | | | | | 2,899 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 9,114 | |
| | | | | | | | | | | | |
| |
| CONSUMER STAPLES 0.4% | |
| | | | |
Magnit PJSC | | | | | 23,739 | | | | | | 1,823 | |
| | | | |
X5 Retail Group NV GDR | | | | | 32,317 | | | | | | 1,167 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 2,990 | |
| | | | | | | | | | | | |
| |
| ENERGY 1.6% | |
| | | | |
Gazprom Neft PJSC | | | | | 109,450 | | | | | | 472 | |
| | | | |
Gazprom PJSC | | | | | 1,382,570 | | | | | | 3,970 | |
| | | | |
LUKOIL PJSC | | | | | 48,525 | | | | | | 3,379 | |
| | | | |
Novatek PJSC | | | | | 40,025 | | | | | | 687 | |
| | | | |
Rosneft Oil Co. PJSC | | | | | 102,030 | | | | | | 601 | |
| | | | |
Surgutneftegas PJSC | | | | | 6,010,700 | | | | | | 2,953 | |
| | | | |
Tatneft PJSC | | | | | 86,831 | | | | | | 605 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 12,667 | |
| | | | | | | | | | | | |
| |
| FINANCIALS 0.6% | |
| | | | |
Credit Bank of Moscow PJSC (a) | | | | | 751,800 | | | | | | 63 | |
| | | | |
Moscow Exchange MICEX-RTS PJSC | | | | | 370,540 | | | | | | 801 | |
| | | | |
Sberbank of Russia PJSC | | | | | 510,990 | | | | | | 1,874 | |
| | | | |
VTB Bank PJSC | | | | | 3,711,730,000 | | | | | | 1,905 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 4,643 | |
| | | | | | | | | | | | |
| |
| | | | | | | | | | | | |
| | | | | SHARES | | | | | MARKET
VALUE
(000S) | |
| INDUSTRIALS 0.0% | |
| | | | |
Aeroflot PJSC (c) | | | | | 186,940 | | | $ | | | 181 | |
| | | | |
Globaltrans Investment PLC GDR | | | | | 27,334 | | | | | | 163 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 344 | |
| | | | | | | | | | | | |
| |
| MATERIALS 2.7% | |
| | | | |
Alrosa PJSC | | | | | 1,769,070 | | | | | | 2,363 | |
| | | | |
Magnitogorsk Iron & Steel Works PJSC | | | | | 1,261,350 | | | | | | 954 | |
| | | | |
MMC Norilsk Nickel PJSC | | | | | 32,443 | | | | | | 10,398 | |
| | | | |
Novolipetskiy Metallurgicheskiy Kombinat PAO | | | | | 654,700 | | | | | | 1,853 | |
| | | | |
PhosAgro PJSC | | | | | 19,549 | | | | | | 831 | |
| | | | |
Polyus PJSC | | | | | 13,542 | | | | | | 2,779 | |
| | | | |
Severstal PAO | | | | | 137,318 | | | | | | 2,452 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 21,630 | |
| | | | | | | | | | | | |
| |
| REAL ESTATE 0.0% | |
| | | | |
LSR Group PJSC | | | | | 7,197 | | | | | | 84 | |
| | | | | | | | | | | | |
| |
| UTILITIES 0.5% | |
| | | | |
Federal Grid Co. Unified Energy System PJSC | | | | | 96,430,000 | | | | | | 291 | |
| | | | |
Inter RAO UES PJSC | | | | | 21,766,000 | | | | | | 1,570 | |
| | | | |
Mosenergo PJSC (c) | | | | | 4,103,000 | | | | | | 115 | |
| | | | |
OGK-2 PJSC | | | | | 7,101,000 | | | | | | 70 | |
| | | | |
Rosseti PJSC | | | | | 20,141,000 | | | | | | 480 | |
| | | | |
RusHydro PJSC | | | | | 72,857,000 | | | | | | 774 | |
| | | | |
Unipro PJSC (c) | | | | | 9,114,000 | | | | | | 344 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 3,644 | |
| | | | | | | | | | | | |
Total Russia | | | | | | | | | | | 55,116 | |
| | | | | | | | | | | | |
| |
| SINGAPORE 0.0% | |
| |
| INDUSTRIALS 0.0% | |
| | | | |
BOC Aviation Ltd. | | | | | 36,200 | | | | | | 313 | |
| | | | | | | | | | | | |
Total Singapore | | | | | | | | | | | 313 | |
| | | | | | | | | | | | |
| |
| SOUTH AFRICA 4.6% | |
| |
| COMMUNICATION SERVICES 0.4% | |
| | | | |
MTN Group Ltd. | | | | | 624,764 | | | | | | 2,579 | |
| | | | |
Telkom S.A. SOC Ltd. | | | | | 96,798 | | | | | | 202 | |
| | | | |
Vodacom Group Ltd. | | | | | 65,387 | | | | | | 553 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 3,334 | |
| | | | | | | | | | | | |
| |
| CONSUMER DISCRETIONARY 1.6% | |
| | | | |
Foschini Group Ltd. | | | | | 46,162 | | | | | | 323 | |
| | | | |
Motus Holdings Ltd. | | | | | 25,218 | | | | | | 96 | |
| | | | |
Mr Price Group Ltd. | | | | | 35,399 | | | | | | 411 | |
| | | | |
Naspers Ltd. ‘N’ | | | | | 55,205 | | | | | | 11,304 | |
| | | | |
Truworths International Ltd. | | | | | 88,144 | | | | | | 221 | |
| | | | |
Woolworths Holdings Ltd. | | | | | 71,744 | | | | | | 193 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 12,548 | |
| | | | | | | | | | | | |
| |
| CONSUMER STAPLES 0.4% | |
| | | | |
Bid Corp. Ltd. | | | | | 46,255 | | | | | | 831 | |
| | | | |
Shoprite Holdings Ltd. | | | | | 131,248 | | | | | | 1,251 | |
| | | | |
SPAR Group Ltd. | | | | | 31,977 | | | | | | 412 | |
| | | | |
Tiger Brands Ltd. | | | | | 33,247 | | | | | | 471 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 2,965 | |
| | | | | | | | | | | | |
| |
| | | | | | | | | | | | |
| | | | | SHARES | | | | | MARKET
VALUE
(000S) | |
| ENERGY 0.1% | |
| | | | |
Exxaro Resources Ltd. | | | | | 55,562 | | | $ | | | 525 | |
| | | | | | | | | | | | |
| |
| FINANCIALS 0.2% | |
| | | | |
Absa Group Ltd. | | | | | 33,301 | | | | | | 272 | |
| | | | |
Discovery Ltd. | | | | | 39,860 | | | | | | 417 | |
| | | | |
FirstRand Ltd. | | | | | 102,763 | | | | | | 358 | |
| | | | |
Liberty Holdings Ltd. | | | | | 11,252 | | | | | | 48 | |
| | | | |
Standard Bank Group Ltd. | | | | | 113,808 | | | | | | 986 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 2,081 | |
| | | | | | | | | | | | |
| |
| HEALTH CARE 0.1% | |
| | | | |
Aspen Pharmacare Holdings Ltd. | | | | | 45,138 | | | | | | 386 | |
| | | | |
Netcare Ltd. | | | | | 268,448 | | | | | | 228 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 614 | |
| | | | | | | | | | | | |
| |
| INDUSTRIALS 0.1% | |
| | | | |
Barloworld Ltd. | | | | | 73,421 | | | | | | 455 | |
| | | | | | | | | | | | |
| |
| MATERIALS 1.7% | |
| | | | |
AngloGold Ashanti Ltd. | | | | | 149,262 | | | | | | 3,440 | |
| | | | |
Gold Fields Ltd. | | | | | 541,029 | | | | | | 5,023 | |
| | | | |
Impala Platinum Holdings Ltd. | | | | | 266,942 | | | | | | 3,674 | |
| | | | |
Kumba Iron Ore Ltd. | | | | | 28,478 | | | | | | 1,207 | |
| | | | |
Sappi Ltd. | | | | | 138,818 | | | | | | 310 | |
| | | | |
Sasol Ltd. (a) | | | | | 22,264 | | | | | | 203 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 13,857 | |
| | | | | | | | | | | | |
Total South Africa | | | | | | | | | | | 36,379 | |
| | | | | | | | | | | | |
| |
| SOUTH KOREA 19.8% | |
| |
| COMMUNICATION SERVICES 2.3% | |
| | | | |
Kakao Corp. | | | | | 6,047 | | | | | | 2,170 | |
| | | | |
KT Corp. SP - ADR | | | | | 204,461 | | | | | | 2,251 | |
| | | | |
LG Uplus Corp. | | | | | 88,498 | | | | | | 958 | |
| | | | |
NAVER Corp. | | | | | 23,888 | | | | | | 6,440 | |
| | | | |
NCSoft Corp. | | | | | 3,447 | | | | | | 2,959 | |
| | | | |
Netmarble Corp. (a) | | | | | 3,567 | | | | | | 432 | |
| | | | |
SK Telecom Co. Ltd. | | | | | 13,512 | | | | | | 2,970 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 18,180 | |
| | | | | | | | | | | | |
| |
| CONSUMER DISCRETIONARY 7.2% | |
| | | | |
Coway Co. Ltd. | | | | | 14,295 | | | | | | 958 | |
| | | | |
Hankook Tire & Technology Co. Ltd. | | | | | 36,699 | | | | | | 1,333 | |
| | | | |
Hanon Systems | | | | | 53,319 | | | | | | 798 | |
| | | | |
Hyundai Department Store Co. Ltd. | | | | | 4,878 | | | | | | 322 | |
| | | | |
Hyundai Mobis Co. Ltd. | | | | | 34,942 | | | | | | 8,224 | |
| | | | |
Hyundai Motor Co. | | | | | 134,278 | | | | | | 23,801 | |
| | | | |
Hyundai Wia Corp. | | | | | 8,388 | | | | | | 414 | |
| | | | |
Kangwon Land, Inc. | | | | | 39,609 | | | | | | 858 | |
| | | | |
Kia Motors Corp. | | | | | 247,270 | | | | | | 14,247 | |
| | | | |
LG Electronics, Inc. | | | | | 33,693 | | | | | | 4,196 | |
| | | | |
LOTTE Himart Co. Ltd. | | | | | 4,406 | | | | | | 127 | |
| | | | |
Lotte Shopping Co. Ltd. | | | | | 9,824 | | | | | | 929 | |
| | | | |
Mando Corp. | | | | | 8,203 | | | | | | 445 | |
| | | | |
Shinsegae, Inc. | | | | | 960 | | | | | | 212 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 56,864 | |
| | | | | | | | | | | | |
| |
| CONSUMER STAPLES 1.4% | |
| | | | |
Amorepacific Corp. | | | | | 10,378 | | | | | | 1,096 | |
| | | | | | |
| 26 | | PIMCO EQUITY SERIES | | | See Accompanying Notes | |
| | | | | | | | |
| | | | | | December 31, 2020 | | (Unaudited) |
| | | | | | | | | | | | |
| | | | | SHARES | | | | | MARKET
VALUE
(000S) | |
| | | | |
BGF retail Co. Ltd. | | | | | 441 | | | $ | | | 55 | |
| | | | |
CJ CheilJedang Corp. | | | | | 3,061 | | | | | | 1,075 | |
| | | | |
E-MART, Inc. | | | | | 14,758 | | | | | | 2,061 | |
| | | | |
GS Retail Co. Ltd. | | | | | 7,393 | | | | | | 235 | |
| | | | |
KT&G Corp. (c) | | | | | 35,756 | | | | | | 2,738 | |
| | | | |
LG Household & Health Care Ltd. | | | | | 2,478 | | | | | | 3,698 | |
| | | | |
NongShim Co. Ltd. | | | | | 1,079 | | | | | | 298 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 11,256 | |
| | | | | | | | | | | | |
| |
| ENERGY 0.8% | |
| | | | |
GS Holdings Corp. | | | | | 24,243 | | | | | | 839 | |
| | | | |
SK Gas Ltd. | | | | | 3,148 | | | | | | 303 | |
| | | | |
SK Innovation Co. Ltd. | | | | | 29,491 | | | | | | 5,173 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 6,315 | |
| | | | | | | | | | | | |
| |
| FINANCIALS 1.6% | |
| | | | |
BNK Financial Group, Inc. | | | | | 71,700 | | | | | | 376 | |
| | | | |
DB Insurance Co. Ltd. | | | | | 15,905 | | | | | | 641 | |
| | | | |
DGB Financial Group, Inc. | | | | | 46,301 | | | | | | 290 | |
| | | | |
Hanwha Life Insurance Co. Ltd. | | | | | 143,903 | | | | | | 324 | |
| | | | |
Hyundai Marine & Fire Insurance Co. Ltd. | | | | | 25,921 | | | | | | 543 | |
| | | | |
Industrial Bank of Korea | | | | | 79,486 | | | | | | 648 | |
| | | | |
KB Financial Group, Inc. | | | | | 28,332 | | | | | | 1,125 | |
| | | | |
Meritz Financial Group, Inc. | | | | | 4,890 | | | | | | 44 | |
| | | | |
Meritz Fire & Marine Insurance Co. Ltd. | | | | | 22,128 | | | | | | 298 | |
| | | | |
Mirae Asset Daewoo Co. Ltd. | | | | | 22,697 | | | | | | 198 | |
| | | | |
Samsung Card Co. Ltd. | | | | | 12,469 | | | | | | 373 | |
| | | | |
Samsung Fire & Marine Insurance Co. Ltd. | | | | | 13,236 | | | | | | 2,287 | |
| | | | |
Samsung Life Insurance Co. Ltd. | | | | | 26,270 | | | | | | 1,917 | |
| | | | |
Shinhan Financial Group Co. Ltd. | | | | | 134,502 | | | | | | 3,991 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 13,055 | |
| | | | | | | | | | | | |
| |
| INDUSTRIALS 2.0% | |
| | | | |
CJ Corp. | | | | | 7,518 | | | | | | 638 | |
| | | | |
CJ Logistics Corp. (a) | | | | | 2,914 | | | | | | 445 | |
| | | | |
Daelim Industrial Co. Ltd. | | | | | 5,431 | | | | | | 415 | |
| | | | |
Daewoo Shipbuilding & Marine Engineering Co. Ltd. (a) | | | | | 8,633 | | | | | | 218 | |
| | | | |
Doosan Bobcat, Inc. | | | | | 11,057 | | | | | | 303 | |
| | | | |
Doosan Co. Ltd. | | | | | 1,270 | | | | | | 61 | |
| | | | |
Doosan Heavy Industries & Construction Co. Ltd. (a) | | | | | 64,383 | | | | | | 804 | |
| | | | |
Doosan Infracore Co. Ltd. (a) | | | | | 32,902 | | | | | | 240 | |
| | | | |
GS Engineering & Construction Corp. | | | | | 5,966 | | | | | | 208 | |
| | | | |
Hanwha Corp. | | | | | 32,216 | | | | | | 841 | |
| | | | |
Hyundai Engineering & Construction Co. Ltd. | | | | | 14,990 | | | | | | 518 | |
| | | | |
Hyundai Glovis Co. Ltd. | | | | | 8,301 | | | | | | 1,409 | |
| | | | |
Hyundai Heavy Industries Holdings Co. Ltd. | | | | | 851 | | | | | | 223 | |
| | | | |
Korea Shipbuilding & Offshore Engineering Co. Ltd. (a) | | | | | 2,070 | | | | | | 207 | |
| | | | |
Korean Air Lines Co. Ltd. | | | | | 20,156 | | | | | | 506 | |
| | | | |
LG Corp. | | | | | 22,085 | | | | | | 1,782 | |
| | | | |
LG International Corp. | | | | | 15,448 | | | | | | 352 | |
| | | | |
LS Corp. | | | | | 5,787 | | | | | | 381 | |
| | | | |
Posco International Corp. | | | | | 27,679 | | | | | | 371 | |
| | | | |
S-1 Corp. | | | | | 2,763 | | | | | | 216 | |
| | | | |
Samsung C&T Corp. | | | | | 21,864 | | | | | | 2,783 | |
| | | | |
Samsung Heavy Industries Co. Ltd. (a) | | | | | 27,991 | | | | | | 182 | |
| | | | |
SK Holdings Co. Ltd. | | | | | 8,707 | | | | | | 1,932 | |
| | | | | | | | | | | | |
| | | | | SHARES | | | | | MARKET
VALUE
(000S) | |
| | | | |
SK Networks Co. Ltd. | | | | | 92,036 | | | $ | | | 412 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 15,447 | |
| | | | | | | | | | | | |
| |
| INFORMATION TECHNOLOGY 1.8% | |
| | | | |
LG Display Co. Ltd. | | | | | 88,682 | | | | | | 1,516 | |
| | | | |
Samsung Electro-Mechanics Co. Ltd. | | | | | 13,860 | | | | | | 2,276 | |
| | | | |
Samsung SDI Co. Ltd. | | | | | 6,226 | | | | | | 3,608 | |
| | | | |
SK Hynix, Inc. | | | | | 63,375 | | | | | | 6,923 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 14,323 | |
| | | | | | | | | | | | |
| |
| MATERIALS 1.7% | |
| | | | |
Dongkuk Steel Mill Co. Ltd. | | | | | 42,970 | | | | | | 322 | |
| | | | |
Hanwha Chemical Corp. | | | | | 14,068 | | | | | | 622 | |
| | | | |
Hyundai Steel Co. | | | | | 28,224 | | | | | | 1,031 | |
| | | | |
Kolon Industries, Inc. | | | | | 6,108 | | | | | | 231 | |
| | | | |
Korea Petrochemical Ind Co. Ltd. | | | | | 1,359 | | | | | | 288 | |
| | | | |
Korea Zinc Co. Ltd. | | | | | 1,903 | | | | | | 705 | |
| | | | |
Kumho Petrochemical Co. Ltd. | | | | | 2,898 | | | | | | 388 | |
| | | | |
LG Chem Ltd. | | | | | 5,986 | | | | | | 4,552 | |
| | | | |
Lotte Chemical Corp. | | | | | 1,759 | | | | | | 448 | |
| | | | |
OCI Co. Ltd. | | | | | 957 | | | | | | 82 | |
| | | | |
POSCO | | | | | 19,990 | | | | | | 4,995 | |
| | | | |
Seah Besteel Corp. | | | | | 4,330 | | | | | | 42 | |
| | | | |
Taekwang Industrial Co. Ltd. | | | | | 123 | | | | | | 91 | |
| | | | |
Young Poong Corp. | | | | | 101 | | | | | | 50 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 13,847 | |
| | | | | | | | | | | | |
| |
| UTILITIES 1.0% | |
| | | | |
Korea Electric Power Corp. | | | | | 269,362 | | | | | | 6,799 | |
| | | | |
Korea Gas Corp. | | | | | 32,241 | | | | | | 918 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 7,717 | |
| | | | | | | | | | | | |
Total South Korea | | | | | | | | | | | 157,004 | |
| | | | | | | | | | | | |
| |
| TAIWAN 14.5% | |
| |
| COMMUNICATION SERVICES 0.6% | |
| | | | |
Chunghwa Telecom Co. Ltd. | | | | | 713,000 | | | | | | 2,766 | |
| | | | |
Far EasTone Telecommunications Co. Ltd. | | | | | 354,000 | | | | | | 772 | |
| | | | |
Taiwan Mobile Co. Ltd. | | | | | 330,000 | | | | | | 1,161 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 4,699 | |
| | | | | | | | | | | | |
| |
| CONSUMER DISCRETIONARY 0.4% | |
| | | | |
Cheng Shin Rubber Industry Co. Ltd. | | | | | 514,000 | | | | | | 807 | |
| | | | |
Formosa Taffeta Co. Ltd. | | | | | 254,000 | | | | | | 281 | |
| | | | |
Hotai Motor Co. Ltd. | | | | | 36,000 | | | | | | 826 | |
| | | | |
Pou Chen Corp. | | | | | 604,000 | | | | | | 676 | |
| | | | |
Yulon Motor Co. Ltd. | | | | | 328,509 | | | | | | 550 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 3,140 | |
| | | | | | | | | | | | |
| |
| CONSUMER STAPLES 0.4% | |
| | | | |
President Chain Store Corp. | | | | | 105,000 | | | | | | 997 | |
| | | | |
Uni-President Enterprises Corp. | | | | | 783,000 | | | | | | 1,883 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 2,880 | |
| | | | | | | | | | | | |
| |
| ENERGY 0.1% | |
| | | | |
Formosa Petrochemical Corp. | | | | | 244,000 | | | | | | 868 | |
| | | | | | | | | | | | |
| |
| FINANCIALS 2.0% | |
| | | | |
Cathay Financial Holding Co. Ltd. | | | | | 444,000 | | | | | | 669 | |
| | | | | | | | | | | | |
| | | | | SHARES | | | | | MARKET
VALUE
(000S) | |
| | | | |
Chailease Holding Co. Ltd. | | | | | 108,000 | | | $ | | | 646 | |
| | | | |
Chang Hwa Commercial Bank Ltd. | | | | | 987,732 | | | | | | 631 | |
| | | | |
China Development Financial Holding Corp. | | | | | 327,000 | | | | | | 108 | |
| | | | |
CTBC Financial Holding Co. Ltd. | | | | | 2,907,000 | | | | | | 2,040 | |
| | | | |
E.Sun Financial Holding Co. Ltd. | | | | | 2,101,244 | | | | | | 1,913 | |
| | | | |
First Financial Holding Co. Ltd. | | | | | 1,628,010 | | | | | | 1,239 | |
| | | | |
Fubon Financial Holding Co. Ltd. | | | | | 931,000 | | | | | | 1,550 | |
| | | | |
Hua Nan Financial Holdings Co. Ltd. ‘C’ | | | | | 1,429,407 | | | | | | 929 | |
| | | | |
Mega Financial Holding Co. Ltd. | | | | | 2,236,000 | | | | | | 2,373 | |
| | | | |
Shanghai Commercial & Savings Bank Ltd. | | | | | 333,605 | | | | | | 489 | |
| | | | |
Shin Kong Financial Holding Co. Ltd. | | | | | 1,143,965 | | | | | | 360 | |
| | | | |
SinoPac Financial Holdings Co. Ltd. | | | | | 2,292,528 | | | | | | 935 | |
| | | | |
Taishin Financial Holding Co. Ltd. | | | | | 1,491,542 | | | | | | 705 | |
| | | | |
Taiwan Cooperative Financial Holding Co. Ltd. | | | | | 1,424,510 | | | | | | 1,033 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 15,620 | |
| | | | | | | | | | | | |
| |
| INDUSTRIALS 0.3% | |
| | | | |
China Airlines Ltd. | | | | | 603,000 | | | | | | 259 | |
| | | | |
Eva Airways Corp. | | | | | 664,400 | | | | | | 312 | |
| | | | |
Evergreen Marine Corp. Taiwan Ltd. (a) | | | | | 328,000 | | | | | | 476 | |
| | | | |
Far Eastern New Century Corp. | | | | | 759,000 | | | | | | 784 | |
| | | | |
Taiwan High Speed Rail Corp. | | | | | 239,000 | | | | | | 270 | |
| | | | |
Walsin Lihwa Corp. | | | | | 834,000 | | | | | | 574 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 2,675 | |
| | | | | | | | | | | | |
| |
| INFORMATION TECHNOLOGY 9.5% | |
| | | | |
Acer, Inc. | | | | | 1,006,000 | | | | | | 849 | |
| | | | |
Advantech Co. Ltd. | | | | | 69,291 | | | | | | 865 | |
| | | | |
Asustek Computer, Inc. | | | | | 246,000 | | | | | | 2,197 | |
| | | | |
AU Optronics Corp. | | | | | 3,503,000 | | | | | | 1,753 | |
| | | | |
Catcher Technology Co. Ltd. | | | | | 101,000 | | | | | | 743 | |
| | | | |
Compal Electronics, Inc. | | | | | 1,413,000 | | | | | | 1,043 | |
| | | | |
Delta Electronics, Inc. | | | | | 390,000 | | | | | | 3,657 | |
| | | | |
Foxconn Technology Co. Ltd. | | | | | 31,000 | | | | | | 59 | |
| | | | |
Hon Hai Precision Industry Co. Ltd. | | | | | 490,600 | | | | | | 1,609 | |
| | | | |
Innolux Corp. | | | | | 6,354,000 | | | | | | 3,198 | |
| | | | |
Inventec Corp. | | | | | 899,000 | | | | | | 769 | |
| | | | |
Largan Precision Co. Ltd. | | | | | 5,950 | | | | | | 678 | |
| | | | |
Lite-On Technology Corp. | | | | | 640,000 | | | | | | 1,135 | |
| | | | |
MediaTek, Inc. | | | | | 377,000 | | | | | | 10,054 | |
| | | | |
Micro-Star International Co. Ltd. | | | | | 344,000 | | | | | | 1,626 | |
| | | | |
Novatek Microelectronics Corp. | | | | | 173,000 | | | | | | 2,276 | |
| | | | |
Pegatron Corp. | | | | | 824,000 | | | | | | 1,978 | |
| | | | |
Powertech Technology, Inc. | | | | | 339,000 | | | | | | 1,148 | |
| | | | |
Quanta Computer, Inc. | | | | | 1,004,000 | | | | | | 2,897 | |
| | | | |
Synnex Technology International Corp. | | | | | 499,000 | | | | | | 836 | |
| | | | |
Taiwan Semiconductor Manufacturing Co. Ltd. | | | | | 1,484,000 | | | | | | 28,073 | |
| | | | |
TPK Holding Co. Ltd. | | | | | 59,000 | | | | | | 98 | |
| | | | |
United Microelectronics Corp. | | | | | 3,344,000 | | | | | | 5,624 | |
| | | | |
Wistron Corp. | | | | | 1,187,347 | | | | | | 1,314 | |
| | | | |
WPG Holdings Ltd. | | | | | 436,560 | | | | | | 667 | |
| | | | |
Zhen Ding Technology Holding Ltd. | | | | | 69,000 | | | | | | 281 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 75,427 | |
| | | | | | | | | | | | |
| |
| | | | | | | | | | | | |
| See Accompanying Notes | | | SEMIANNUAL REPORT | | | | | | | DECEMBER 31, 2020 | | | 27 |
| | | | | | | | |
| Schedule of Investments | | PIMCO RAFI Dynamic Multi-Factor Emerging Markets Equity ETF | | (Cont.) | | | | |
| | | | | | | | | | | | |
| | | | | SHARES | | | | | MARKET
VALUE
(000S) | |
| MATERIALS 1.2% | |
| | | | |
Asia Cement Corp. | | | | | 801,000 | | | $ | | | 1,234 | |
| | | | |
China Steel Corp. | | | | | 1,467,000 | | | | | | 1,293 | |
| | | | |
Formosa Chemicals & Fibre Corp. | | | | | 564,000 | | | | | | 1,702 | |
| | | | |
Formosa Plastics Corp. | | | | | 527,000 | | | | | | 1,810 | |
| | | | |
Nan Ya Plastics Corp. | | | | | 488,000 | | | | | | 1,250 | |
| | | | |
Taiwan Cement Corp. | | | | | 1,518,422 | | | | | | 2,338 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 9,627 | |
| | | | | | | | | | | | |
Total Taiwan | | | | | | | | | | | 114,936 | |
| | | | | | | | | | | | |
| |
| THAILAND 3.9% | |
| |
| COMMUNICATION SERVICES 0.3% | |
| | | | |
Advanced Info Service PCL | | | | | 253,200 | | | | | | 1,488 | |
| | | | |
Digital Telecommunications Infrastructure Fund | | | | | 706,100 | | | | | | 304 | |
| | | | |
Total Access Communication PCL | | | | | 282,500 | | | | | | 314 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 2,106 | |
| | | | | | | | | | | | |
| |
| CONSUMER STAPLES 0.6% | |
| | | | |
Berli Jucker PCL (c) | | | | | 117,700 | | | | | | 136 | |
| | | | |
Charoen Pokphand Foods PCL | | | | | 1,885,600 | | | | | | 1,684 | |
| | | | |
CP ALL PCL | | | | | 753,000 | | | | | | 1,463 | |
| | | | |
Thai Beverage PCL | | | | | 1,134,900 | | | | | | 632 | |
| | | | |
Thai Union Group PCL ‘F’ | | | | | 1,841,600 | | | | | | 837 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 4,752 | |
| | | | | | | | | | | | |
| |
| ENERGY 0.8% | |
| | | | |
Bangchak Corp. PCL | | | | | 442,600 | | | | | | 305 | |
| | | | |
Esso Thailand PCL (a)(c) | | | | | 231,900 | | | | | | 57 | |
| | | | |
IRPC PCL (c) | | | | | 3,721,500 | | | | | | 462 | |
| | | | |
PTT PCL | | | | | 3,362,500 | | | | | | 4,774 | |
| | | | |
Star Petroleum Refining PCL | | | | | 1,835,500 | | | | | | 493 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 6,091 | |
| | | | | | | | | | | | |
| |
| FINANCIALS 0.3% | |
| | | | |
Bangkok Bank PCL | | | | | 217,000 | | | | | | 858 | |
| | | | |
Kasikornbank PCL | | | | | 145,200 | | | | | | 547 | |
| | | | |
Krung Thai Bank PCL | | | | | 1,035,100 | | | | | | 383 | |
| | | | |
Thanachart Capital PCL | | | | | 575,600 | | | | | | 664 | |
| | | | |
TMB Bank PCL | | | | | 2,016,100 | | | | | | 73 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 2,525 | |
| | | | | | | | | | | | |
| |
| HEALTH CARE 0.1% | |
| | | | |
Bangkok Dusit Medical Services PCL ‘F’ | | | | | 863,500 | | | | | | 598 | |
| | | | | | | | | | | | |
| |
| INDUSTRIALS 0.8% | |
| | | | |
Airports of Thailand PCL | | | | | 286,300 | | | | | | 594 | |
| | | | |
Delta Electronics Thailand PCL | | | | | 348,100 | | | | | | 5,647 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 6,241 | |
| | | | | | | | | | | | |
| |
| MATERIALS 0.8% | |
| | | | |
PTT Global Chemical PCL | | | | | 878,500 | | | | | | 1,716 | |
| | | | |
Siam Cement PCL | | | | | 398,300 | | | | | | 5,025 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 6,741 | |
| | | | | | | | | | | | |
| |
| REAL ESTATE 0.1% | |
| | | | |
Central Pattana PCL | | | | | 68,500 | | | | | | 109 | |
| | | | |
Land & Houses PCL NVDR | | | | | 2,543,000 | | | | | | 675 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 784 | |
| | | | | | | | | | | | |
| | | | | | | | | | | | |
| | | | | SHARES | | | | | MARKET
VALUE
(000S) | |
| UTILITIES 0.1% | |
| | | | |
Electricity Generating PCL | | | | | 34,800 | | | $ | | | 223 | |
| | | | |
Ratch Group PCL | | | | | 218,600 | | | | | | 386 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 609 | |
| | | | | | | | | | | | |
Total Thailand | | | | | | | | | | | 30,447 | |
| | | | | | | | | | | | |
| |
| TURKEY 1.2% | |
| |
| COMMUNICATION SERVICES 0.2% | |
| | | | |
Turk Telekomunikasyon A/S | | | | | 371,903 | | | | | | 427 | |
| | | | |
Turkcell Iletisim Hizmetleri A/S | | | | | 593,258 | | | | | | 1,282 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 1,709 | |
| | | | | | | | | | | | |
| |
| CONSUMER DISCRETIONARY 0.2% | |
| | | | |
Arcelik A/S (a) | | | | | 105,554 | | | | | | 432 | |
| | | | |
Ford Otomotiv Sanayi A/S | | | | | 43,842 | | | | | | 744 | |
| | | | |
Tofas Turk Otomobil Fabrikasi A/S | | | | | 62,692 | | | | | | 286 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 1,462 | |
| | | | | | | | | | | | |
| |
| CONSUMER STAPLES 0.3% | |
| | | | |
Anadolu Efes Biracilik Ve Malt Sanayii A/S | | | | | 50,160 | | | | | | 156 | |
| | | | |
BIM Birlesik Magazalar A/S | | | | | 212,304 | | | | | | 2,147 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 2,303 | |
| | | | | | | | | | | | |
| |
| ENERGY 0.1% | |
| | | | |
Turkiye Petrol Rafinerileri A/S (c) | | | | | 49,718 | | | | | | 722 | |
| | | | | | | | | | | | |
| |
| FINANCIALS 0.2% | |
| | | | |
Haci Omer Sabanci Holding A/S | | | | | 388,556 | | | | | | 599 | |
| | | | |
Turkiye Halk Bankasi A/S (c) | | | | | 120,619 | | | | | | 90 | |
| | | | |
Turkiye Is Bankasi ‘C’ | | | | | 479,333 | | | | | | 451 | |
| | | | |
Turkiye Vakiflar Bankasi TAO ‘D’ (c) | | | | | 208,901 | | | | | | 132 | |
| | | | |
Yapi ve Kredi Bankasi A/S (a) | | | | | 113,207 | | | | | | 47 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 1,319 | |
| | | | | | | | | | | | |
| |
| INDUSTRIALS 0.1% | |
| | | | |
Enka Insaat ve Sanayi A/S | | | | | 513,275 | | | | | | 510 | |
| | | | |
KOC Holding A/S | | | | | 83,832 | | | | | | 238 | |
| | | | |
TAV Havalimanlari Holding A/S | | | | | 17,953 | | | | | | 51 | |
| | | | |
Turk Hava Yollari AO (a)(c) | | | | | 223,995 | | | | | | 389 | |
| | | | |
Turkiye Sise ve Cam Fabrikalari A/S | | | | | 113,120 | | | | | | 111 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 1,299 | |
| | | | | | | | | | | | |
| |
| MATERIALS 0.1% | |
| | | | |
Eregli Demir ve Celik Fabrikalari TAS | | | | | 352,192 | | | | | | 707 | |
| | | | | | | | | | | | |
Total Turkey | | | | | | | | | | | 9,521 | |
| | | | | | | | | | | | |
| |
| UNITED STATES 0.0% | |
| |
| CONSUMER DISCRETIONARY 0.0% | |
| | | | |
Nexteer Automotive Group Ltd. | | | | | 94,000 | | | | | | 101 | |
| | | | | | | | | | | | |
Total United States | | | | | | | | | | | 101 | |
| | | | | | | | | | | | |
Total Common Stocks (Cost $561,643) | | | 723,751 | |
| | | | |
| | | | | | | | | | | | |
| | | | | UNITS | | | | | MARKET
VALUE
(000S) | |
| EQUITY-LINKED SECURITIES 4.3% | |
| |
| IRELAND 4.3% | |
| |
| COMMUNICATION SERVICES 0.5% | |
| | | | |
Citigroup Global Markets Holdings, Inc., Bharti Airtel Ltd. - Exp. 02/19/2021 | | | | | 534,085 | | | $ | | | 3,726 | |
| | | | |
Citigroup Global Markets Holdings, Inc., Idea Cellular Ltd. - Exp. 02/19/2021 | | | | | 3,303,536 | | | | | | 482 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 4,208 | |
| | | | | | | | | | | | |
| |
| CONSUMER STAPLES 0.6% | |
| | | | |
Citigroup Global Markets Holdings, Inc., Hindustan Unilever Ltd. - Exp. 02/19/2021 | | | | | 51,727 | | | | | | 1,696 | |
| | | | |
Citigroup Global Markets Holdings, Inc., ITC Ltd. - Exp. 02/19/2021 | | | | | 1,063,336 | | | | | | 3,042 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 4,738 | |
| | | | | | | | | | | | |
| |
| ENERGY 0.7% | |
| | | | |
Citigroup Global Markets Holdings, Inc., Bharat Petroleum Corp. Ltd. - Exp. 02/19/2021 | | | | | 257,780 | | | | | | 1,345 | |
| | | | |
Citigroup Global Markets Holdings, Inc., Coal India Ltd. - Exp. 02/19/2021 | | | | | 452,055 | | | | | | 838 | |
| | | | |
Citigroup Global Markets Holdings, Inc., Hindustan Petroleum Corp. Ltd. - Exp. 02/19/2021 | | | | | 339,160 | | | | | | 1,012 | |
| | | | |
Citigroup Global Markets Holdings, Inc., Indian Oil Corp. Ltd. - Exp. 02/19/2021 | | | | | 533,805 | | | | | | 665 | |
| | | | |
Citigroup Global Markets Holdings, Inc., Jindal Steel & Power Ltd. - Exp. 02/19/2021 | | | | | 239,955 | | | | | | 875 | |
| | | | |
Citigroup Global Markets Holdings, Inc., Petronet LNG Ltd. - Exp. 02/19/2021 | | | | | 258,915 | | | | | | 877 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 5,612 | |
| | | | | | | | | | | | |
| |
| FINANCIALS 0.0% | |
| | | | |
Citigroup Global Markets Holdings, Inc., Oracle Finance Ltd. - Exp. 02/19/2021 | | | | | 1,218 | | | | | | 54 | |
| | | | | | | | | | | | |
| |
| HEALTH CARE 0.5% | |
| | | | |
Citigroup Global Markets Holdings, Inc., Lupin Ltd. - Exp. 02/19/2021 | | | | | 75,832 | | | | | | 1,014 | |
| | | | |
Citigroup Global Markets Holdings, Inc., Sun Pharmaceutical Industries Ltd. - Exp. 02/19/2021 | | | | | 312,033 | | | | | | 2,530 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 3,544 | |
| | | | | | | | | | | | |
| |
| INDUSTRIALS 0.2% | |
| | | | |
Citigroup Global Markets Holdings, Inc., Hero MotoCorp Ltd. - Exp. 02/19/2021 | | | | | 25,392 | | | | | | 1,081 | |
| | | | | | | | | | | | |
| |
| INFORMATION TECHNOLOGY 1.5% | |
| | | | |
Citigroup Global Markets Holdings, Inc., HCL Technologies Ltd. - Exp. 02/19/2021 | | | | | 424,215 | | | | | | 5,494 | |
| | | | | | |
| 28 | | PIMCO EQUITY SERIES | | | See Accompanying Notes | |
| | | | | | | | |
| | | | | | December 31, 2020 | | (Unaudited) |
| | | | | | | | | | | | |
| | | | | UNITS | | | | | MARKET
VALUE
(000S) | |
| | | | |
Citigroup Global Markets Holdings, Inc., Tata Consultancy Services Ltd. - Exp. 02/19/2021 | | | | | 124,607 | | | $ | | | 4,883 | |
| | | | |
Citigroup Global Markets Holdings, Inc., Tech Mahindra Ltd. - Exp. 02/19/2021 | | | | | 124,854 | | | | | | 1,663 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 12,040 | |
| | | | | | | | | | | | |
| |
| MATERIALS 0.2% | |
| | | | |
Citigroup Global Markets Holdings, Inc., Asian Paints Ltd. - Exp. 02/19/2021 | | | | | 36,821 | | | | | | 1,393 | |
| | | | |
Citigroup Global Markets Holdings, Inc., NMDC Ltd. - Exp. 02/19/2021 | | | | | 231,950 | | | | | | 364 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 1,757 | |
| | | | | | | | | | | | |
| |
| UTILITIES 0.1% | |
| | | | |
Citigroup Global Markets Holdings, Inc., NTPC Ltd. - Exp. 02/19/2021 | | | | | 790,833 | | | | | | 1,075 | |
| | | | | | | | | | | | |
Total Equity-Linked Securities
(Cost $27,692) | | | 34,109 | |
| | | | |
| |
| | | | | SHARES | | | | | | |
| PREFERRED STOCKS 1.3% | |
| |
| BRAZIL 1.0% | |
| |
| BANKING & FINANCE 0.1% | |
| | | | |
Banco do Estado do Rio Grande do Sul S.A. | | | | | 15,100 | | | | | | 43 | |
| | | | |
Itau Unibanco Holding S.A. | | | | | 179,950 | | | | | | 1,101 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 1,144 | |
| | | | | | | | | | | | |
| |
| INDUSTRIALS 0.5% | |
| | | | |
Braskem S.A. | | | | | 59,300 | | | | | | 270 | |
| | | | |
Gerdau S.A. | | | | | 341,200 | | | | | | 1,610 | |
| | | | |
Metalurgica Gerdau S.A. | | | | | 670,000 | | | | | | 1,448 | |
| | | | |
Usinas Siderurgicas de Minas Gerais S.A. | | | | | 76,900 | | | | | | 217 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 3,545 | |
| | | | | | | | | | | | |
| |
| UTILITIES 0.4% | |
| | | | |
Cia de Transmissao de Energia Eletrica Paulista | | | | | 101,200 | | | | | | 543 | |
| | | | |
Cia Energetica de Minas Gerais | | | | | 234,796 | | | | | | 662 | |
| | | | |
Cia Energetica de Sao Paulo | | | | | 151,900 | | | | | | 850 | |
| | | | |
Cia Paranaense de Energia | | | | | 68,700 | | | | | | 999 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 3,054 | |
| | | | | | | | | | | | |
Total Brazil | | | | | | | | | | | 7,743 | |
| | | | | | | | | | | | |
| |
| | | | | | | | | | | | |
| | | | | SHARES | | | | | MARKET
VALUE
(000S) | |
| CHILE 0.2% | |
| |
| INDUSTRIALS 0.2% | |
| | | | |
Embotelladora Andina S.A. | | | | | 126,320 | | | $ | | | 325 | |
| | | | |
Sociedad Quimica y Minera de Chile S.A. | | | | | 24,155 | | | | | | 1,177 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 1,502 | |
| | | | | | | | | | | | |
Total Chile | | | | | | | | | | | 1,502 | |
| | | | | | | | | | | | |
| |
| RUSSIA 0.1% | |
| |
| UTILITIES 0.1% | |
| | | | |
Bashneft PJSC (c) | | | | | 9,601 | | | | | | 152 | |
| | | | |
Transneft PJSC | | | | | 355 | | | | | | 676 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 828 | |
| | | | | | | | | | | | |
Total Russia | | | | | | | | | | | 828 | |
| | | | | | | | | | | | |
Total Preferred Stocks (Cost $8,363) | | | 10,073 | |
| | | | |
| |
| REAL ESTATE INVESTMENT TRUSTS 0.1% | |
| |
| MEXICO 0.1% | |
| |
| REAL ESTATE 0.1% | |
| | | | |
Fibra Uno Administracion S.A. de C.V. | | | | | 311,400 | | | | | | 352 | |
| | | | | | | | | | | | |
Total Mexico | | | | | | | | | | | 352 | |
| | | | | | | | | | | | |
| |
| SOUTH AFRICA 0.0% | |
| |
| REAL ESTATE 0.0% | |
| | | | |
Growthpoint Properties Ltd. | | | | | 203,738 | | | | | | 175 | |
| | | | | | | | | | | | |
Total South Africa | | | | | | | | | | | 175 | |
| | | | | | | | | | | | |
| |
| TURKEY 0.0% | |
| |
| REAL ESTATE 0.0% | |
| | | | |
Emlak Konut Gayrimenkul Yatirim Ortakligi A/S (c) | | | | | 285,710 | | | | | | 82 | |
| | | | | | | | | | | | |
Total Turkey | | | | | | | | | | | 82 | |
| | | | | | | | | | | | |
Total Real Estate Investment Trusts
(Cost $701) | | | 609 | |
| | | | |
| |
| RIGHTS 0.0% | |
| |
| CHILE 0.0% | |
| |
| UTILITIES 0.0% | |
| | | | |
AES Gener S.A. | | | | | 341,261 | | | | | | 4 | |
| | | | | | | | | | | | |
Total Rights (Cost $0) | | | 4 | |
| | | | |
| |
| | | | | | | | | | | | |
| | | | | SHARES | | | | | MARKET
VALUE
(000S) | |
| WARRANTS 2.3% | |
| |
| UNITED KINGDOM 2.3% | |
| |
| FINANCIALS 2.3% | |
| | | |
HSBC Bank PLC - Exp. 01/19/2022 | | | 443,424 | | | $ | | | 9,106 | |
| | | | |
HSBC Bank PLC - Exp. 01/28/2021 | | | | | 30,352 | | | | | | 344 | |
| | | | |
HSBC Bank PLC - Exp. 03/24/2021 | | | | | 11,460 | | | | | | 75 | |
| | | | |
HSBC Bank PLC - Exp. 04/05/2021 | | | | | 91,397 | | | | | | 2,126 | |
| | | | |
HSBC Bank PLC - Exp. 07/20/2021 | | | | | 148,306 | | | | | | 2,537 | |
| | | | |
HSBC Bank PLC - Exp. 10/04/2021 | | | | | 11,800 | | | | | | 105 | |
| | | | |
HSBC Bank PLC - Exp. 11/09/2021 | | | | | 11,330 | | | | | | 86 | |
| | | | |
HSBC Bank PLC - Exp. 12/06/2021 | | | | | 439,127 | | | | | | 3,977 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 18,356 | |
| | | | | | | | | | | | |
Total Warrants (Cost $18,252) | | | 18,356 | |
| | | | |
| |
| SHORT-TERM INSTRUMENTS 0.9% | |
| |
| REPURCHASE AGREEMENTS (e) 0.9% | | | | |
| | | | | | | | | | | 7,336 | |
| | | | | | | | | | | | |
Total Short-Term Instruments
(Cost $7,336) | | | 7,336 | |
| | | | | | | | | | | | |
| | | | |
| | | | | | | | | | | | |
Total Investments in Securities
(Cost $623,987) | | | 794,238 | |
| | | | | | | | | | | | |
| |
| INVESTMENTS IN AFFILIATES 1.3% | |
| |
| SHORT-TERM INSTRUMENTS 1.3% | |
| |
| MUTUAL FUNDS 1.3% | |
|
PIMCO Government Money Market Fund | |
0.150% (b)(c)(d) | | | | | 10,082,772 | | | | | | 10,083 | |
| | | | | | | | | | | | |
Total Short-Term Instruments
(Cost $10,083) | | | 10,083 | |
| | | | |
| | | | |
| | | | | | | | | | | | |
Total Investments in Affiliates
(Cost $10,083) | | | | | | | | | | | 10,083 | |
| | | | |
| | | | | | | | | | | | |
Total Investments 101.6%
(Cost $634,070) | | | | | | | | $ | | | 804,321 | |
| |
| Other Assets and Liabilities, net (1.6)% | | | (12,524 | ) |
| | | | |
| Net Assets 100.0% | | | $ | | | 791,797 | |
| | | | | | | |
NOTES TO SCHEDULE OF INVESTMENTS:
| * | 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) | Institutional Class Shares of each Fund. |
| (c) | Securities with an aggregate market value of $9,311 were out on loan in exchange for $10,084 of cash collateral as of December 31, 2020. The collateral was invested in a cash collateral reinvestment vehicle as described in Note 5 in the Notes to Financial Statements. |
| (d) | Coupon represents a 7-Day Yield. |
| | | | | | | | | | | | |
| See Accompanying Notes | | | SEMIANNUAL REPORT | | | | | | | DECEMBER 31, 2020 | | | 29 |
| | | | | | | | |
| Schedule of Investments | | PIMCO RAFI Dynamic Multi-Factor Emerging Markets Equity ETF | | (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 | |
| FICC | | | 0.000 | % | | | 12/31/2020 | | | | 01/04/2021 | | | $ | 7,336 | | | U.S. Treasury Bills 0.000% due 12/30/2021 | | $ | (7,483 | ) | | $ | 7,336 | | | $ | 7,336 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total Repurchase Agreements | | | | | $ | (7,483 | ) | | $ | 7,336 | | | $ | 7,336 | |
| | | | | | | | | | | | | | | |
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, 2020:
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Counterparty | | Repurchase
Agreement
Proceeds
to be
Received | | | Payable for
Reverse
Repurchase
Agreements | | | Payable for
Sale-Buyback
Transactions | | | Securities
Out on Loan | | | Total
Borrowings and
Other Financing
Transactions | | | Collateral
Pledged/(Received) | | | Net Exposure(1) | |
Global/Master Repurchase Agreement | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
FICC | | $ | 7,336 | | | $ | 0 | | | $ | 0 | | | $ | 0 | | | $ | 7,336 | | | $ | (7,483 | ) | | $ | (147 | ) |
| | | | | | | |
Master Securities Lending Agreement | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
BMO | | | 0 | | | | 0 | | | | 0 | | | | 281 | | | | 281 | | | | (311 | ) | | | (30 | ) |
FOB | | | 0 | | | | 0 | | | | 0 | | | | 411 | | | | 411 | | | | (491 | ) | | | (80 | ) |
GSC | | | 0 | | | | 0 | | | | 0 | | | | 4,926 | | | | 4,926 | | | | (5,183 | ) | | | (257 | ) |
MSC | | | 0 | | | | 0 | | | | 0 | | | | 74 | | | | 74 | | | | (82 | ) | | | (8 | ) |
SAL | | | 0 | | | | 0 | | | | 0 | | | | 3,298 | | | | 3,298 | | | | (3,677 | ) | | | (379 | ) |
UBS | | | 0 | | | | 0 | | | | 0 | | | | 321 | | | | 321 | | | | (340 | ) | | | (19 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total Borrowings and Other Financing Transactions | | $ | 7,336 | | | $ | 0 | | | $ | 0 | | | $ | 9,311 | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
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 | |
Securities Lending Transactions(2) | | | | | | | | | | | | | | | | | | | | |
Preferred Securities | | $ | 34 | | | $ | 0 | | | $ | 0 | | | $ | 0 | | | $ | 34 | |
Common Stocks | | | 9,970 | | | | 0 | | | | 0 | | | | 0 | | | | 9,970 | |
Real Estate Investment Trusts | | | 80 | | | | 0 | | | | 0 | | | | 0 | | | | 80 | |
| | | | | | | | | | | | | | | | | | | | |
Total Borrowings | | $ | 10,084 | | | $ | 0 | | | $ | 0 | | | $ | 0 | | | $ | 10,084 | |
| | | | | | | | | | | | | | | | | | | | |
Payable for securities on loan - cash collateral | | | | | | | | | | | | | | | | | | $ | 10,084 | |
| | | | | |
| (1) | 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. |
| (2) | Includes cash collateral as described in Note 5 in the Notes to Financial Statements. |
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 and Other 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, 2020:
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | 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 | | | $ | (30 | ) | | $ | 0 | | | $ | (30 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | |
| 30 | | PIMCO EQUITY SERIES | | | See Accompanying Notes | |
| | | | | | | | |
| | | | | | December 31, 2020 | | (Unaudited) |
FAIR VALUE MEASUREMENTS
The following is a summary of the fair valuations according to the inputs used as of December 31, 2020 in valuing the Fund’s assets and liabilities:
| | | | | | | | | | | | | | | | |
| Category and Subcategory | | Level 1 | | | Level 2 | | | Level 3 | | | Fair
Value at
12/31/2020 | |
Investments in Securities, at Value | |
Common Stocks | |
Australia | |
Materials | | $ | 0 | | | $ | 85 | | | $ | 0 | | | $ | 85 | |
Brazil | |
Communication Services | | | 0 | | | | 832 | | | | 0 | | | | 832 | |
Consumer Discretionary | | | 0 | | | | 1,262 | | | | 0 | | | | 1,262 | |
Consumer Staples | | | 0 | | | | 5,671 | | | | 0 | | | | 5,671 | |
Energy | | | 56 | | | | 1,752 | | | | 0 | | | | 1,808 | |
Financials | | | 0 | | | | 5,676 | | | | 0 | | | | 5,676 | |
Health Care | | | 0 | | | | 137 | | | | 0 | | | | 137 | |
Industrials | | | 0 | | | | 3,985 | | | | 0 | | | | 3,985 | |
Materials | | | 0 | | | | 26,267 | | | | 0 | | | | 26,267 | |
Utilities | | | 0 | | | | 746 | | | | 0 | | | | 746 | |
Chile | |
Communication Services | | | 48 | | | | 0 | | | | 0 | | | | 48 | |
Consumer Discretionary | | | 0 | | | | 1,024 | | | | 0 | | | | 1,024 | |
Consumer Staples | | | 366 | | | | 1,221 | | | | 0 | | | | 1,587 | |
Energy | | | 0 | | | | 727 | | | | 0 | | | | 727 | |
Financials | | | 207 | | | | 750 | | | | 0 | | | | 957 | |
Materials | | | 833 | | | | 0 | | | | 0 | | | | 833 | |
Utilities | | | 844 | | | | 1,532 | | | | 0 | | | | 2,376 | |
China | |
Communication Services | | | 14,298 | | | | 14,402 | | | | 0 | | | | 28,700 | |
Consumer Discretionary | | | 25,576 | | | | 26,371 | | | | 0 | | | | 51,947 | |
Consumer Staples | | | 0 | | | | 4,962 | | | | 0 | | | | 4,962 | |
Energy | | | 0 | | | | 4,991 | | | | 0 | | | | 4,991 | |
Financials | | | 0 | | | | 5,768 | | | | 0 | | | | 5,768 | |
Health Care | | | 0 | | | | 1,579 | | | | 0 | | | | 1,579 | |
Industrials | | | 3,260 | | | | 4,182 | | | | 0 | | | | 7,442 | |
Information Technology | | | 7,892 | | | | 5,497 | | | | 0 | | | | 13,389 | |
Materials | | | 0 | | | | 5,158 | | | | 0 | | | | 5,158 | |
Real Estate | | | 0 | | | | 4,175 | | | | 0 | | | | 4,175 | |
Utilities | | | 0 | | | | 4,177 | | | | 0 | | | | 4,177 | |
Greece | |
Communication Services | | | 0 | | | | 614 | | | | 0 | | | | 614 | |
Consumer Discretionary | | | 0 | | | | 433 | | | | 0 | | | | 433 | |
Energy | | | 0 | | | | 254 | | | | 0 | | | | 254 | |
Financials | | | 447 | | | | 1,268 | | | | 0 | | | | 1,715 | |
Utilities | | | 0 | | | | 489 | | | | 0 | | | | 489 | |
Hong Kong | |
Communication Services | | | 0 | | | | 4,101 | | | | 0 | | | | 4,101 | |
Consumer Discretionary | | | 0 | | | | 2,438 | | | | 0 | | | | 2,438 | |
Consumer Staples | | | 0 | | | | 8,660 | | | | 0 | | | | 8,660 | |
Financials | | | 0 | | | | 859 | | | | 0 | | | | 859 | |
Industrials | | | 0 | | | | 460 | | | | 0 | | | | 460 | |
Real Estate | | | 0 | | | | 2,561 | | | | 0 | | | | 2,561 | |
Utilities | | | 0 | | | | 3,414 | | | | 0 | | | | 3,414 | |
India | |
Consumer Discretionary | | | 2,512 | | | | 0 | | | | 0 | | | | 2,512 | |
Energy | | | 2,779 | | | | 10,367 | | | | 0 | | | | 13,146 | |
Financials | | | 8,059 | | | | 0 | | | | 0 | | | | 8,059 | |
Health Care | | | 5,570 | | | | 0 | | | | 0 | | | | 5,570 | |
Information Technology | | | 28,954 | | | | 0 | | | | 0 | | | | 28,954 | |
Materials | | | 2,151 | | | | 0 | | | | 0 | | | | 2,151 | |
Indonesia | |
Communication Services | | | 0 | | | | 1,628 | | | | 0 | | | | 1,628 | |
Consumer Discretionary | | | 0 | | | | 1,328 | | | | 0 | | | | 1,328 | |
Consumer Staples | | | 0 | | | | 1,987 | | | | 0 | | | | 1,987 | |
Energy | | | 0 | | | | 650 | | | | 0 | | | | 650 | |
Financials | | | 0 | | | | 1,114 | | | | 0 | | | | 1,114 | |
Health Care | | | 0 | | | | 73 | | | | 0 | | | | 73 | |
Industrials | | | 0 | | | | 392 | | | | 0 | | | | 392 | |
Materials | | | 0 | | | | 966 | | | | 0 | | | | 966 | |
Utilities | | | 0 | | | | 95 | | | | 0 | | | | 95 | |
| | | | | | | | | | | | | | | | |
| Category and Subcategory | | Level 1 | | | Level 2 | | | Level 3 | | | Fair
Value at
12/31/2020 | |
Malaysia | |
Communication Services | | $ | 0 | | | $ | 1,440 | | | $ | 0 | | | $ | 1,440 | |
Consumer Discretionary | | | 0 | | | | 1,491 | | | | 0 | | | | 1,491 | |
Consumer Staples | | | 0 | | | | 1,334 | | | | 0 | | | | 1,334 | |
Energy | | | 0 | | | | 165 | | | | 0 | | | | 165 | |
Financials | | | 0 | | | | 3,756 | | | | 0 | | | | 3,756 | |
Health Care | | | 0 | | | | 135 | | | | 0 | | | | 135 | |
Industrials | | | 0 | | | | 1,099 | | | | 0 | | | | 1,099 | |
Materials | | | 0 | | | | 592 | | | | 0 | | | | 592 | |
Utilities | | | 0 | | | | 1,401 | | | | 0 | | | | 1,401 | |
Mexico | |
Communication Services | | | 4,268 | | | | 0 | | | | 0 | | | | 4,268 | |
Consumer Staples | | | 7,086 | | | | 0 | | | | 0 | | | | 7,086 | |
Financials | | | 294 | | | | 0 | | | | 0 | | | | 294 | |
Industrials | | | 535 | | | | 0 | | | | 0 | | | | 535 | |
Materials | | | 5,002 | | | | 0 | | | | 0 | | | | 5,002 | |
Utilities | | | 230 | | | | 0 | | | | 0 | | | | 230 | |
Philippines | |
Communication Services | | | 0 | | | | 1,068 | | | | 0 | | | | 1,068 | |
Consumer Staples | | | 0 | | | | 357 | | | | 0 | | | | 357 | |
Financials | | | 0 | | | | 1,029 | | | | 0 | | | | 1,029 | |
Industrials | | | 0 | | | | 1,845 | | | | 0 | | | | 1,845 | |
Utilities | | | 0 | | | | 486 | | | | 0 | | | | 486 | |
Poland | |
Communication Services | | | 0 | | | | 645 | | | | 0 | | | | 645 | |
Energy | | | 0 | | | | 1,308 | | | | 0 | | | | 1,308 | |
Financials | | | 0 | | | | 693 | | | | 0 | | | | 693 | |
Information Technology | | | 0 | | | | 137 | | | | 0 | | | | 137 | |
Materials | | | 0 | | | | 1,644 | | | | 0 | | | | 1,644 | |
Utilities | | | 0 | | | | 853 | | | | 0 | | | | 853 | |
Romania | |
Real Estate | | | 109 | | | | 0 | | | | 0 | | | | 109 | |
Russia | |
Communication Services | | | 2,899 | | | | 6,215 | | | | 0 | | | | 9,114 | |
Consumer Staples | | | 0 | | | | 2,990 | | | | 0 | | | | 2,990 | |
Energy | | | 0 | | | | 12,667 | | | | 0 | | | | 12,667 | |
Financials | | | 0 | | | | 4,643 | | | | 0 | | | | 4,643 | |
Industrials | | | 0 | | | | 344 | | | | 0 | | | | 344 | |
Materials | | | 0 | | | | 21,630 | | | | 0 | | | | 21,630 | |
Real Estate | | | 0 | | | | 84 | | | | 0 | | | | 84 | |
Utilities | | | 0 | | | | 3,644 | | | | 0 | | | | 3,644 | |
Singapore | |
Industrials | | | 0 | | | | 313 | | | | 0 | | | | 313 | |
South Africa | |
Communication Services | | | 755 | | | | 2,579 | | | | 0 | | | | 3,334 | |
Consumer Discretionary | | | 317 | | | | 12,231 | | | | 0 | | | | 12,548 | |
Consumer Staples | | | 1,722 | | | | 1,243 | | | | 0 | | | | 2,965 | |
Energy | | | 525 | | | | 0 | | | | 0 | | | | 525 | |
Financials | | | 0 | | | | 2,081 | | | | 0 | | | | 2,081 | |
Health Care | | | 228 | | | | 386 | | | | 0 | | | | 614 | |
Industrials | | | 455 | | | | 0 | | | | 0 | | | | 455 | |
Materials | | | 1,517 | | | | 12,340 | | | | 0 | | | | 13,857 | |
South Korea | |
Communication Services | | | 2,251 | | | | 15,929 | | | | 0 | | | | 18,180 | |
Consumer Discretionary | | | 0 | | | | 56,864 | | | | 0 | | | | 56,864 | |
Consumer Staples | | | 0 | | | | 11,256 | | | | 0 | | | | 11,256 | |
Energy | | | 0 | | | | 6,315 | | | | 0 | | | | 6,315 | |
Financials | | | 0 | | | | 13,055 | | | | 0 | | | | 13,055 | |
Industrials | | | 0 | | | | 15,447 | | | | 0 | | | | 15,447 | |
Information Technology | | | 0 | | | | 14,323 | | | | 0 | | | | 14,323 | |
Materials | | | 0 | | | | 13,847 | | | | 0 | | | | 13,847 | |
Utilities | | | 0 | | | | 7,717 | | | | 0 | | | | 7,717 | |
Taiwan | |
Communication Services | | | 0 | | | | 4,699 | | | | 0 | | | | 4,699 | |
Consumer Discretionary | | | 0 | | | | 3,140 | | | | 0 | | | | 3,140 | |
Consumer Staples | | | 0 | | | | 2,880 | | | | 0 | | | | 2,880 | |
| | | | | | | | | | | | |
| See Accompanying Notes | | | SEMIANNUAL REPORT | | | | | | | DECEMBER 31, 2020 | | | 31 |
| | | | | | | | |
| Schedule of Investments | | PIMCO RAFI Dynamic Multi-Factor Emerging Markets Equity ETF | | (Cont.) | | December 31, 2020 | | (Unaudited) |
| | | | | | | | | | | | | | | | |
| Category and Subcategory | | Level 1 | | | Level 2 | | | Level 3 | | | Fair
Value at
12/31/2020 | |
Energy | | $ | 0 | | | $ | 868 | | | $ | 0 | | | $ | 868 | |
Financials | | | 0 | | | | 15,620 | | | | 0 | | | | 15,620 | |
Industrials | | | 0 | | | | 2,675 | | | | 0 | | | | 2,675 | |
Information Technology | | | 0 | | | | 75,427 | | | | 0 | | | | 75,427 | |
Materials | | | 0 | | | | 9,627 | | | | 0 | | | | 9,627 | |
Thailand | |
Communication Services | | | 0 | | | | 2,106 | | | | 0 | | | | 2,106 | |
Consumer Staples | | | 0 | | | | 4,752 | | | | 0 | | | | 4,752 | |
Energy | | | 0 | | | | 6,091 | | | | 0 | | | | 6,091 | |
Financials | | | 0 | | | | 2,525 | | | | 0 | | | | 2,525 | |
Health Care | | | 0 | | | | 598 | | | | 0 | | | | 598 | |
Industrials | | | 5,647 | | | | 594 | | | | 0 | | | | 6,241 | |
Materials | | | 0 | | | | 6,741 | | | | 0 | | | | 6,741 | |
Real Estate | | | 0 | | | | 784 | | | | 0 | | | | 784 | |
Utilities | | | 0 | | | | 609 | | | | 0 | | | | 609 | |
Turkey | |
Communication Services | | | 427 | | | | 1,282 | | | | 0 | | | | 1,709 | |
Consumer Discretionary | | | 0 | | | | 1,462 | | | | 0 | | | | 1,462 | |
Consumer Staples | | | 0 | | | | 2,303 | | | | 0 | | | | 2,303 | |
Energy | | | 0 | | | | 722 | | | | 0 | | | | 722 | |
Financials | | | 47 | | | | 1,272 | | | | 0 | | | | 1,319 | |
Industrials | | | 0 | | | | 1,299 | | | | 0 | | | �� | 1,299 | |
Materials | | | 0 | | | | 707 | | | | 0 | | | | 707 | |
United States | |
Consumer Discretionary | | | 0 | | | | 101 | | | | 0 | | | | 101 | |
Equity-Linked Securities | |
Ireland | |
Communication Services | | | 0 | | | | 4,208 | | | | 0 | | | | 4,208 | |
Consumer Staples | | | 0 | | | | 4,738 | | | | 0 | | | | 4,738 | |
Energy | | | 0 | | | | 5,612 | | | | 0 | | | | 5,612 | |
Financials | | | 0 | | | | 54 | | | | 0 | | | | 54 | |
Health Care | | | 0 | | | | 3,544 | | | | 0 | | | | 3,544 | |
Industrials | | | 0 | | | | 1,081 | | | | 0 | | | | 1,081 | |
Information Technology | | | 0 | | | | 12,040 | | | | 0 | | | | 12,040 | |
| | | | | | | | | | | | | | | | |
| Category and Subcategory | | Level 1 | | | Level 2 | | | Level 3 | | | Fair
Value at
12/31/2020 | |
Materials | | $ | 0 | | | $ | 1,757 | | | $ | 0 | | | $ | 1,757 | |
Utilities | | | 0 | | | | 1,075 | | | | 0 | | | | 1,075 | |
Preferred Stocks | |
Brazil | |
Banking & Finance | | | 0 | | | | 1,144 | | | | 0 | | | | 1,144 | |
Industrials | | | 0 | | | | 3,545 | | | | 0 | | | | 3,545 | |
Utilities | | | 0 | | | | 3,054 | | | | 0 | | | | 3,054 | |
Chile | |
Industrials | | | 325 | | | | 1,177 | | | | 0 | | | | 1,502 | |
Russia | |
Utilities | | | 0 | | | | 828 | | | | 0 | | | | 828 | |
Real Estate Investment Trusts | |
Mexico | |
Real Estate | | | 352 | | | | 0 | | | | 0 | | | | 352 | |
South Africa | |
Real Estate | | | 0 | | | | 175 | | | | 0 | | | | 175 | |
Turkey | |
Real Estate | | | 0 | | | | 82 | | | | 0 | | | | 82 | |
Rights | |
Chile | |
Utilities | | | 4 | | | | 0 | | | | 0 | | | | 4 | |
Warrants | |
United Kingdom | |
Financials | | | 0 | | | | 18,356 | | | | 0 | | | | 18,356 | |
Short-Term Instruments | |
Repurchase Agreements | | | 0 | | | | 7,336 | | | | 0 | | | | 7,336 | |
| | | | | | | | | | | | | | | | |
| | $ | 138,847 | | | $ | 655,391 | | | $ | 0 | | | $ | 794,238 | |
| | | | | | | | | | | | | | | | |
|
Investments in Affiliates, at Value | |
Short-Term Instruments | |
Mutual Funds | | | 10,083 | | | | 0 | | | | 0 | | | | 10,083 | |
| | | | | | | | | | | | | | | | |
| | | | |
Total Investments | | $ | 148,930 | | | $ | 655,391 | | | $ | 0 | | | $ | 804,321 | |
| | | | | | | | | | | | | | | | |
There were no significant transfers into or out of Level 3 during the period ended December 31, 2020.
| | | | | | |
| 32 | | PIMCO EQUITY SERIES | | | See Accompanying Notes | |
| | | | | | | | |
| Schedule of Investments | | PIMCO RAFI Dynamic Multi-Factor International Equity ETF | | | | December 31, 2020 | | (Unaudited) |
(Amounts in thousands*, except number of shares, contracts, units and ounces, if any)
| | | | | | | | | | | | |
| | | | | SHARES | | | | | MARKET
VALUE
(000S) | |
| INVESTMENTS IN SECURITIES 100.3% | |
| |
| COMMON STOCKS 96.6% | |
| |
| AUSTRALIA 5.7% | |
| |
| COMMUNICATION SERVICES 0.4% | |
| | | | |
carsales.com Ltd. | | | | | 1,785 | | | $ | | | 28 | |
| | | | |
Nine Entertainment Co. Holdings Ltd. | | | | | 5,374 | | | | | | 10 | |
| | | | |
REA Group Ltd. | | | | | 358 | | | | | | 41 | |
| | | | |
Southern Cross Media Group Ltd. (a) | | | | | 8,871 | | | | | | 15 | |
| | | | |
Telstra Corp. Ltd. | | | | | 94,145 | | | | | | 216 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 310 | |
| | | | | | | | | | | | |
| |
| CONSUMER DISCRETIONARY 0.7% | |
| | | | |
Breville Group Ltd. | | | | | 1,094 | | | | | | 22 | |
| | | | |
Crown Resorts Ltd. | | | | | 2,891 | | | | | | 22 | |
| | | | |
Domino’s Pizza Enterprises Ltd. | | | | | 613 | | | | | | 41 | |
| | | | |
Harvey Norman Holdings Ltd.w | | | | | 7,285 | | | | | | 26 | |
| | | | |
JB Hi-Fi Ltd. | | | | | 1,290 | | | | | | 49 | |
| | | | |
Super Retail Group Ltd. | | | | | 3,975 | | | | | | 32 | |
| | | | |
Tabcorp Holdings Ltd. | | | | | 8,064 | | | | | | 24 | |
| | | | |
Wesfarmers Ltd. | | | | | 7,548 | | | | | | 293 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 509 | |
| | | | | | | | | | | | |
| |
| CONSUMER STAPLES 0.6% | |
| | | | |
Coca-Cola Amatil Ltd. | | | | | 4,365 | | | | | | 43 | |
| | | | |
Coles Group Ltd. | | | | | 2,009 | | | | | | 28 | |
| | | | |
GrainCorp Ltd. ‘A’ | | | | | 5,592 | | | | | | 18 | |
| | | | |
Metcash Ltd. | | | | | 20,894 | | | | | | 54 | |
| | | | |
Woolworths Group Ltd. | | | | | 9,850 | | | | | | 299 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 442 | |
| | | | | | | | | | | | |
| |
| ENERGY 0.3% | |
| | | | |
Ampol Ltd. | | | | | 3,870 | | | | | | 85 | |
| | | | |
Origin Energy Ltd. | | | | | 9,426 | | | | | | 35 | |
| | | | |
Santos Ltd. | | | | | 4,623 | | | | | | 22 | |
| | | | |
Viva Energy Group Ltd. | | | | | 12,876 | | | | | | 19 | |
| | | | |
Woodside Petroleum Ltd. | | | | | 1,168 | | | | | | 20 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 181 | |
| | | | | | | | | | | | |
| |
| FINANCIALS 0.6% | |
| | | | |
AMP Ltd. | | | | | 18,390 | | | | | | 22 | |
| | | | |
ASX Ltd. | | | | | 358 | | | | | | 20 | |
| | | | |
Bank of Queensland Ltd. | | | | | 4,117 | | | | | | 25 | |
| | | | |
Insurance Australia Group Ltd. | | | | | 3,702 | | | | | | 13 | |
| | | | |
Macquarie Group Ltd. | | | | | 800 | | | | | | 85 | |
| | | | |
Magellan Financial Group Ltd. | | | | | 714 | | | | | | 30 | |
| | | | |
Medibank Pvt Ltd. | | | | | 23,829 | | | | | | 55 | |
| | | | |
National Australia Bank Ltd. | | | | | 3,035 | | | | | | 53 | |
| | | | |
NIB Holdings Ltd. | | | | | 6,032 | | | | | | 28 | |
| | | | |
Perpetual Ltd. | | | | | 848 | | | | | | 23 | |
| | | | |
QBE Insurance Group Ltd. | | | | | 5,733 | | | | | | 37 | |
| | | | |
Suncorp Group Ltd. | | | | | 4,247 | | | | | | 32 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 423 | |
| | | | | | | | | | | | |
| |
| HEALTH CARE 0.5% | |
| | | | |
Ansell Ltd. | | | | | 1,139 | | | | | | 30 | |
| | | | |
Cochlear Ltd. | | | | | 169 | | | | | | 25 | |
| | | | |
CSL Ltd. | | | | | 1,245 | | | | | | 272 | |
| | | | |
Ramsay Health Care Ltd. | | | | | 517 | | | | | | 25 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 352 | |
| | | | | | | | | | | | |
| |
| | | | | | | | | | | | |
| | | | | SHARES | | | | | MARKET
VALUE
(000S) | |
| INDUSTRIALS 0.3% | |
| | | | |
Aurizon Holdings Ltd. | | | | | 13,462 | | | $ | | | 40 | |
| | | | |
Brambles Ltd. | | | | | 6,954 | | | | | | 57 | |
| | | | |
Downer EDI Ltd. | | | | | 4,269 | | | | | | 18 | |
| | | | |
Monadelphous Group Ltd. | | | | | 2,096 | | | | | | 22 | |
| | | | |
Qantas Airways Ltd. | | | | | 5,426 | | | | | | 20 | |
| | | | |
Sydney Airport | | | | | 4,255 | | | | | | 21 | |
| | | | |
Transurban Group | | | | | 3,852 | | | | | | 41 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 219 | |
| | | | | | | | | | | | |
| |
| INFORMATION TECHNOLOGY 0.2% | |
| | | | |
Atlassian Corp. PLC ‘A’ (a) | | | | | 335 | | | | | | 78 | |
| | | | |
Computershare Ltd. | | | | | 2,086 | | | | | | 24 | |
| | | | |
SEEK Ltd. | | | | | 1,879 | | | | | | 41 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 143 | |
| | | | | | | | | | | | |
| |
| MATERIALS 2.1% | |
| | | | |
BHP Group Ltd. | | | | | 7,925 | | | | | | 259 | |
| | | | |
BHP Group PLC | | | | | 6,494 | | | | | | 171 | |
| | | | |
BlueScope Steel Ltd. | | | | | 2,821 | | | | | | 38 | |
| | | | |
Boral Ltd. | | | | | 6,978 | | | | | | 27 | |
| | | | |
CSR Ltd. | | | | | 9,058 | | | | | | 37 | |
| | | | |
Evolution Mining Ltd. | | | | | 19,331 | | | | | | 74 | |
| | | | |
Fortescue Metals Group Ltd. | | | | | 21,307 | | | | | | 385 | |
| | | | |
IGO Ltd. | | | | | 4,881 | | | | | | 24 | |
| | | | |
Iluka Resources Ltd. | | | | | 2,922 | | | | | | 15 | |
| | | | |
Incitec Pivot Ltd. | | | | | 14,027 | | | | | | 25 | |
| | | | |
Mineral Resources Ltd. | | | | | 1,100 | | | | | | 32 | |
| | | | |
Newcrest Mining Ltd. | | | | | 2,012 | | | | | | 40 | |
| | | | |
Northern Star Resources Ltd. | | | | | 8,473 | | | | | | 83 | |
| | | | |
Orica Ltd. | | | | | 3,010 | | | | | | 35 | |
| | | | |
OZ Minerals Ltd. | | | | | 1,915 | | | | | | 28 | |
| | | | |
Rio Tinto Ltd. | | | | | 2,572 | | | | | | 226 | |
| | | | |
Sandfire Resources Ltd. | | | | | 5,119 | | | | | | 21 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 1,520 | |
| | | | | | | | | | | | |
| |
| REAL ESTATE 0.0% | |
| | | | |
Lendlease Corp. Ltd. | | | | | 1,411 | | | | | | 14 | |
| | | | | | | | | | | | |
| |
| UTILITIES 0.0% | |
| | | | |
AGL Energy Ltd. | | | | | 1,936 | | | | | | 18 | |
| | | | |
APA Group | | | | | 2,297 | | | | | | 17 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 35 | |
| | | | | | | | | | | | |
Total Australia | | | | | | | | | | | 4,148 | |
| | | | | | | | | | | | |
| |
| AUSTRIA 0.2% | |
| |
| ENERGY 0.0% | |
| | | | |
OMV AG | | | | | 625 | | | | | | 25 | |
| | | | | | | | | | | | |
| |
| INDUSTRIALS 0.1% | |
| | | | |
Andritz AG | | | | | 704 | | | | | | 32 | |
| | | | |
Oesterreichische Post AG | | | | | 464 | | | | | | 16 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 48 | |
| | | | | | | | | | | | |
| |
| MATERIALS 0.1% | |
| | | | |
voestalpine AG | | | | | 856 | | | | | | 31 | |
| | | | |
Wienerberger AG | | | | | 763 | | | | | | 24 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 55 | |
| | | | | | | | | | | | |
| |
| | | | | | | | | | | | |
| | | | | SHARES | | | | | MARKET
VALUE
(000S) | |
| REAL ESTATE 0.0% | |
| | | | |
CA Immobilien Anlagen AG | | | | | 492 | | | $ | | | 19 | |
| | | | | | | | | | | | |
Total Austria | | | | | | | | | | | 147 | |
| | | | | | | | | | | | |
| |
| BELGIUM 0.5% | |
| |
| COMMUNICATION SERVICES 0.0% | |
| | | | |
Proximus SADP | | | | | 918 | | | | | | 18 | |
| | | | | | | | | | | | |
| |
| CONSUMER DISCRETIONARY 0.1% | |
| | | | |
D’ieteren S.A. | | | | | 300 | | | | | | 25 | |
| | | | |
Telenet Group Holding NV | | | | | 425 | | | | | | 18 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 43 | |
| | | | | | | | | | | | |
| |
| CONSUMER STAPLES 0.1% | |
| | | | |
Etablissements Franz Colruyt NV | | | | | 584 | | | | | | 35 | |
| | | | | | | | | | | | |
| |
| ENERGY 0.0% | |
| | | | |
Euronav NV | | | | | 2,601 | | | | | | 21 | |
| | | | | | | | | | | | |
| |
| FINANCIALS 0.1% | |
| | | | |
Ageas S.A. | | | | | 1,015 | | | | | | 54 | |
| | | | |
Gimv NV | | | | | 305 | | | | | | 19 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 73 | |
| | | | | | | | | | | | |
| |
| HEALTH CARE 0.1% | |
| | | | |
UCB S.A. | | | | | 391 | | | | | | 40 | |
| | | | | | | | | | | | |
| |
| INDUSTRIALS 0.0% | |
| | | | |
bpost S.A. | | | | | 2,131 | | | | | | 22 | |
| | | | | | | | | | | | |
| |
| INFORMATION TECHNOLOGY 0.0% | |
| | | | |
Barco NV | | | | | 650 | | | | | | 14 | |
| | | | | | | | | | | | |
| |
| MATERIALS 0.1% | |
| | | | |
Bekaert S.A. | | | | | 842 | | | | | | 28 | |
| | | | |
Solvay S.A. | | | | | 225 | | | | | | 26 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 54 | |
| | | | | | | | | | | | |
| |
| UTILITIES 0.0% | |
| | | | |
Elia System Operator S.A. | | | | | 278 | | | | | | 33 | |
| | | | | | | | | | | | |
Total Belgium | | | | | | | | | | | 353 | |
| | | | | | | | | | | | |
| |
| CANADA 7.4% | |
| |
| COMMUNICATION SERVICES 0.5% | |
| | | | |
BCE, Inc. | | | | | 2,879 | | | | | | 123 | |
| | | | |
Cineplex, Inc. | | | | | 2,373 | | | | | | 17 | |
| | | | |
Cogeco Communications, Inc. | | | | | 308 | | | | | | 24 | |
| | | | |
Quebecor, Inc. ‘B’ | | | | | 1,033 | | | | | | 27 | |
| | | | |
Rogers Communications, Inc. ‘B’ | | | | | 1,385 | | | | | | 64 | |
| | | | |
Shaw Communications, Inc. ‘B’ | | | | | 1,545 | | | | | | 27 | |
| | | | |
TELUS Corp. | | | | | 3,433 | | | | | | 68 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 350 | |
| | | | | | | | | | | | |
| |
| CONSUMER DISCRETIONARY 1.1% | |
| | | | |
BRP, Inc. | | | | | 594 | | | | | | 39 | |
| | | | |
Canadian Tire Corp. Ltd. ‘A’ | | | | | 785 | | | | | | 103 | |
| | | | |
Cogeco, Inc. (e) | | | | | 279 | | | | | | 18 | |
| | | | |
Dollarama, Inc. | | | | | 1,513 | | | | | | 62 | |
| | | | |
Gildan Activewear, Inc. | | | | | 1,267 | | | | | | 36 | |
| | | | | | | | | | | | |
| See Accompanying Notes | | | SEMIANNUAL REPORT | | | | | | | DECEMBER 31, 2020 | | | 33 |
| | | | | | | | |
| Schedule of Investments | | PIMCO RAFI Dynamic Multi-Factor International Equity ETF | | (Cont.) | | | | |
| | | | | | | | | | | | |
| | | | | SHARES | | | | | MARKET
VALUE
(000S) | |
| | | | |
Lululemon Athletica, Inc. (a) | | | | | 389 | | | $ | | | 135 | |
| | | | |
Magna International, Inc. | | | | | 5,254 | | | | | | 372 | |
| | | | |
Martinrea International, Inc. (e) | | | | | 2,801 | | | | | | 33 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 798 | |
| | | | | | | | | | | | |
| |
| CONSUMER STAPLES 0.7% | |
| | | | |
Alimentation Couche-Tard, Inc. ‘B’ | | | | | 4,615 | | | | | | 157 | |
| | | | |
Empire Co. Ltd. ‘A’ | | | | | 2,458 | | | | | | 67 | |
| | | | |
George Weston Ltd. | | | | | 997 | | | | | | 75 | |
| | | | |
Loblaw Cos. Ltd. | | | | | 1,015 | | | | | | 50 | |
| | | | |
Maple Leaf Foods, Inc. | | | | | 912 | | | | | | 20 | |
| | | | |
Metro, Inc. | | | | | 2,226 | | | | | | 99 | |
| | | | |
North West Co., Inc. | | | | | 693 | | | | | | 18 | |
| | | | |
Premium Brands Holdings Corp. | | | | | 321 | | | | | | 26 | |
| | | | |
Saputo, Inc. | | | | | 943 | | | | | | 26 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 538 | |
| | | | | | | | | | | | |
| |
| ENERGY 0.4% | |
| | | | |
ARC Resources Ltd. | | | | | 5,976 | | | | | | 28 | |
| | | | |
Cameco Corp. | | | | | 2,144 | | | | | | 29 | |
| | | | |
Cenovus Energy, Inc. | | | | | 5,958 | | | | | | 36 | |
| | | | |
Crescent Point Energy Corp. | | | | | 15,280 | | | | | | 36 | |
| | | | |
Gibson Energy, Inc. | | | | | 1,163 | | | | | | 19 | |
| | | | |
Husky Energy, Inc. | | | | | 5,946 | | | | | | 29 | |
| | | | |
Imperial Oil Ltd. | | | | | 747 | | | | | | 14 | |
| | | | |
MEG Energy Corp. (a) | | | | | 12,050 | | | | | | 42 | |
| | | | |
Whitecap Resources, Inc. (c)(e) | | | | | 10,172 | | | | | | 39 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 272 | |
| | | | | | | | | | | | |
| |
| FINANCIALS 1.0% | |
| | | | |
Bank of Montreal | | | | | 794 | | | | | | 61 | |
| | | | |
Brookfield Asset Management, Inc. ‘A’ | | | | | 2,548 | | | | | | 105 | |
| | | | |
Canadian Imperial Bank of Commerce (c) | | | | | 1,256 | | | | | | 107 | |
| | | | |
CI Financial Corp. | | | | | 2,324 | | | | | | 29 | |
| | | | |
Fairfax Financial Holdings Ltd. | | | | | 42 | | | | | | 14 | |
| | | | |
Great-West Lifeco, Inc. (e) | | | | | 1,175 | | | | | | 28 | |
| | | | |
Home Capital Group, Inc. | | | | | 1,257 | | | | | | 29 | |
| | | | |
IGM Financial, Inc. | | | | | 911 | | | | | | 25 | |
| | | | |
Intact Financial Corp. (e) | | | | | 584 | | | | | | 69 | |
| | | | |
National Bank of Canada | | | | | 385 | | | | | | 22 | |
| | | | |
Onex Corp. | | | | | 407 | | | | | | 23 | |
| | | | |
Power Corp. of Canada | | | | | 2,713 | | | | | | 62 | |
| | | | |
Royal Bank of Canada | | | | | 1,159 | | | | | | 95 | |
| | | | |
Toronto-Dominion Bank | | | | | 397 | | | | | | 23 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 692 | |
| | | | | | | | | | | | |
| |
| HEALTH CARE 0.0% | |
| | | | |
Chartwell Retirement Residences | | | | | 1,534 | | | | | | 14 | |
| | | | | | | | | | | | |
| |
| INDUSTRIALS 1.3% | |
| | | | |
Aecon Group, Inc. | | | | | 2,023 | | | | | | 26 | |
| | | | |
Canadian National Railway Co. | | | | | 2,408 | | | | | | 265 | |
| | | | |
Canadian Pacific Railway Ltd. | | | | | 588 | | | | | | 204 | |
| | | | |
Finning International, Inc. | | | | | 1,279 | | | | | | 27 | |
| | | | |
Ritchie Bros Auctioneers, Inc. | | | | | 1,204 | | | | | | 84 | |
| | | | |
Russel Metals, Inc. | | | | | 1,296 | | | | | | 23 | |
| | | | |
TFI International, Inc. | | | | | 1,140 | | | | | | 59 | |
| | | | |
Thomson Reuters Corp. | | | | | 2,412 | | | | | | 197 | |
| | | | |
Toromont Industries Ltd. | | | | | 465 | | | | | | 32 | |
| | | | |
Transcontinental, Inc. ‘A’ | | | | | 1,545 | | | | | | 25 | |
| | | | | | | | | | | | |
| | | | | SHARES | | | | | MARKET
VALUE
(000S) | |
| | | | |
Westshore Terminals Investment Corp. | | | | | 1,477 | | | $ | | | 18 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 960 | |
| | | | | | | | | | | | |
| |
| INFORMATION TECHNOLOGY 0.5% | |
| | | | |
Canadian Solar, Inc. (a) | | | | | 985 | | | | | | 51 | |
| | | | |
Celestica, Inc. (a) | | | | | 2,388 | | | | | | 19 | |
| | | | |
CGI, Inc. (a) | | | | | 1,252 | | | | | | 99 | |
| | | | |
Constellation Software, Inc. (e) | | | | | 61 | | | | | | 79 | |
| | | | |
Open Text Corp. | | | | | 809 | | | | | | 37 | |
| | | | |
Shopify, Inc. ‘A’ (a) | | | | | 71 | | | | | | 80 | |
| | | | |
Topicus.com, Inc. (a) | | | | | 113 | | | | | | 1 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 366 | |
| | | | | | | | | | | | |
| |
| MATERIALS 1.3% | |
| | | | |
Agnico Eagle Mines Ltd. (e) | | | | | 732 | | | | | | 52 | |
| | | | |
Alamos Gold, Inc. | | | | | 3,768 | | | | | | 33 | |
| | | | |
B2Gold Corp. | | | | | 5,363 | | | | | | 30 | |
| | | | |
Barrick Gold Corp. | | | | | 1,469 | | | | | | 33 | |
| | | | |
Centerra Gold, Inc. | | | | | 1,614 | | | | | | 19 | |
| | | | |
Eldorado Gold Corp. (a) | | | | | 7,248 | | | | | | 96 | |
| | | | |
First Quantum Minerals Ltd. | | | | | 2,506 | | | | | | 45 | |
| | | | |
Franco-Nevada Corp. | | | | | 618 | | | | | | 78 | |
| | | | |
Hudbay Minerals, Inc. | | | | | 4,667 | | | | | | 33 | |
| | | | |
Interfor Corp. (a) | | | | | 1,700 | | | | | | 32 | |
| | | | |
Intertape Polymer Group, Inc. | | | | | 1,737 | | | | | | 33 | |
| | | | |
Kinross Gold Corp. | | | | | 1,963 | | | | | | 14 | |
| | | | |
Kirkland Lake Gold Ltd. (e) | | | | | 341 | | | | | | 14 | |
| | | | |
Lundin Mining Corp. | | | | | 3,643 | | | | | | 32 | |
| | | | |
Methanex Corp. | | | | | 1,002 | | | | | | 46 | |
| | | | |
New Gold, Inc. (a) | | | | | 18,956 | | | | | | 42 | |
| | | | |
Norbord, Inc. | | | | | 653 | | | | | | 28 | |
| | | | |
Nutrien Ltd. | | | | | 861 | | | | | | 41 | |
| | | | |
Pan American Silver Corp. | | | | | 1,830 | | | | | | 63 | |
| | | | |
Stella-Jones, Inc. | | | | | 729 | | | | | | 27 | |
| | | | |
Teck Resources Ltd. ‘B’ | | | | | 3,649 | | | | | | 66 | |
| | | | |
West Fraser Timber Co. Ltd. | | | | | 409 | | | | | | 26 | |
| | | | |
Wheaton Precious Metals Corp. | | | | | 342 | | | | | | 14 | |
| | | | |
Winpak Ltd. | | | | | 593 | | | | | | 20 | |
| | | | |
Yamana Gold, Inc. | | | | | 10,549 | | | | | | 60 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 977 | |
| | | | | | | | | | | | |
| |
| REAL ESTATE 0.1% | |
| | | | |
Colliers International Group, Inc. | | | | | 304 | | | | | | 27 | |
| | | | |
FirstService Corp. | | | | | 332 | | | | | | 46 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 73 | |
| | | | | | | | | | | | |
| |
| UTILITIES 0.5% | |
| | | | |
Algonquin Power & Utilities Corp. | | | | | 1,293 | | | | | | 21 | |
| | | | |
Atco Ltd. ‘I’ | | | | | 1,223 | | | | | | 35 | |
| | | | |
Boralex, Inc. (e) | | | | | 899 | | | | | | 33 | |
| | | | |
Emera, Inc. | | | | | 586 | | | | | | 25 | |
| | | | |
Fortis, Inc. | | | | | 1,748 | | | | | | 72 | |
| | | | |
Hydro One Ltd. | | | | | 1,892 | | | | | | 43 | |
| | | | |
Northland Power, Inc. | | | | | 1,717 | | | | | | 62 | |
| | | | |
Superior Plus Corp. | | | | | 2,128 | | | | | | 20 | |
| | | | |
TransAlta Corp. | | | | | 3,471 | | | | | | 26 | |
| | | | |
TransAlta Renewables, Inc. | | | | | 1,647 | | | | | | 28 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 365 | |
| | | | | | | | | | | | |
Total Canada | | | | | | | | | | | 5,405 | |
| | | | | | | | | | | | |
| |
| | | | | | | | | | | | |
| | | | | SHARES | | | | | MARKET
VALUE
(000S) | |
| CHILE 0.0% | |
| |
| MATERIALS 0.0% | |
| | | | |
Antofagasta PLC | | | | | 1,430 | | | $ | | | 28 | |
| | | | | | | | | | | | |
Total Chile | | | | | | | | | | | 28 | |
| | | | | | | | | | | | |
| |
| DENMARK 2.4% | |
| |
| CONSUMER DISCRETIONARY 0.2% | |
| | | | |
Pandora A/S | | | | | 985 | | | | | | 110 | |
| | | | | | | | | | | | |
| |
| CONSUMER STAPLES 0.2% | |
| | | | |
Carlsberg A/S ‘B’ | | | | | 431 | | | | | | 69 | |
| | | | |
Royal Unibrew A/S | | | | | 396 | | | | | | 46 | |
| | | | |
Scandinavian Tobacco Group A/S | | | | | 1,264 | | | | | | 21 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 136 | |
| | | | | | | | | | | | |
| |
| FINANCIALS 0.1% | |
| | | | |
Topdanmark A/S | | | | | 500 | | | | | | 21 | |
| | | | |
Tryg A/S | | | | | 881 | | | | | | 28 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 49 | |
| | | | | | | | | | | | |
| |
| HEALTH CARE 0.9% | |
| | | | |
Coloplast A/S ‘B’ | | | | | 307 | | | | | | 47 | |
| | | | |
Demant A/S (a) | | | | | 776 | | | | | | 31 | |
| | | | |
GN Store Nord A/S | | | | | 679 | | | | | | 54 | |
| | | | |
H Lundbeck A/S | | | | | 415 | | | | | | 14 | |
| | | | |
Novo Nordisk A/S ‘B’ | | | | | 6,832 | | | | | | 477 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 623 | |
| | | | | | | | | | | | |
| |
| INDUSTRIALS 0.7% | |
| | | | |
AP Moller - Maersk A/S ‘B’ | | | | | 54 | | | | | | 120 | |
| | | | |
D/S Norden A/S | | | | | 1,325 | | | | | | 24 | |
| | | | |
Dfds A/S (a) | | | | | 631 | | | | | | 28 | |
| | | | |
DSV Panalpina A/S | | | | | 634 | | | | | | 107 | |
| | | | |
ISS A/S (a) | | | | | 794 | | | | | | 14 | |
| | | | |
Vestas Wind Systems A/S | | | | | 1,074 | | | | | | 254 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 547 | |
| | | | | | | | | | | | |
| |
| MATERIALS 0.1% | |
| | | | |
CHR Hansen Holding A/S | | | | | 525 | | | | | | 54 | |
| | | | |
Novozymes A/S ‘B’ | | | | | 821 | | | | | | 47 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 101 | |
| | | | | | | | | | | | |
| |
| UTILITIES 0.2% | |
| | | | |
Orsted A/S | | | | | 733 | | | | | | 150 | |
| | | | | | | | | | | | |
Total Denmark | | | | | | | | | | | 1,716 | |
| | | | | | | | | | | | |
| |
| FINLAND 1.5% | |
| |
| COMMUNICATION SERVICES 0.1% | |
| | | | |
Elisa Oyj | | | | | 1,199 | | | | | | 66 | |
| | | | | | | | | | | | |
| |
| CONSUMER STAPLES 0.2% | |
| | | | |
Kesko Oyj ‘B’ | | | | | 4,513 | | | | | | 116 | |
| | | | | | | | | | | | |
| |
| ENERGY 0.3% | |
| | | | |
Neste Oyj | | | | | 3,040 | | | | | | 221 | |
| | | | | | | | | | | | |
| |
| FINANCIALS 0.1% | |
| | | | |
Sampo Oyj ‘A’ | | | | | 1,356 | | | | | | 58 | |
| | | | | | | | | | | | |
| |
| | | | | | |
| 34 | | PIMCO EQUITY SERIES | | | See Accompanying Notes | |
| | | | | | | | |
| | | | | | December 31, 2020 | | (Unaudited) |
| | | | | | | | | | | | |
| | | | | SHARES | | | | | MARKET
VALUE
(000S) | |
| HEALTH CARE 0.1% | |
| | | | |
Orion Oyj ‘B’ | | | | | 1,137 | | | $ | | | 52 | |
| | | | | | | | | | | | |
| |
| INDUSTRIALS 0.3% | |
| | | | |
Finnair Oyj | | | | | 32,943 | | | | | | 30 | |
| | | | |
Kone Oyj ‘B’ | | | | | 2,349 | | | | | | 192 | |
| | | | |
YIT OYJ | | | | | 3,355 | | | | | | 20 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 242 | |
| | | | | | | | | | | | |
| |
| INFORMATION TECHNOLOGY 0.1% | |
| | | | |
Nokia Oyj | | | | | 10,037 | | | | | | 39 | |
| | | | |
TietoEVRY Oyj | | | | | 705 | | | | | | 23 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 62 | |
| | | | | | | | | | | | |
| |
| MATERIALS 0.3% | |
| | | | |
Kemira Oyj | | | | | 1,555 | | | | | | 25 | |
| | | | |
Outokumpu OYJ | | | | | 8,923 | | | | | | 35 | |
| | | | |
Stora Enso Oyj ‘R’ | | | | | 3,465 | | | | | | 66 | |
| | | | |
UPM-Kymmene Oyj | | | | | 2,033 | | | | | | 76 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 202 | |
| | | | | | | | | | | | |
| |
| UTILITIES 0.0% | |
| | | | |
Fortum Oyj | | | | | 1,464 | | | | | | 35 | |
| | | | | | | | | | | | |
Total Finland | | | | | | | | | | | 1,054 | |
| | | | | | | | | | | | |
| |
| FRANCE 5.8% | |
| |
| COMMUNICATION SERVICES 0.6% | |
| | | | |
Eutelsat Communications S.A. | | | | | 2,678 | | | | | | 30 | |
| | | | |
Iliad S.A. | | | | | 101 | | | | | | 21 | |
| | | | |
IPSOS | | | | | 729 | | | | | | 24 | |
| | | | |
Lagardere S.C.A. | | | | | 1,377 | | | | | | 34 | |
| | | | |
Orange S.A. | | | | | 9,294 | | | | | | 111 | |
| | | | |
Publicis Groupe S.A. | | | | | 862 | | | | | | 43 | |
| | | | |
Television Francaise (a) | | | | | 1,849 | | | | | | 15 | |
| | | | |
Ubisoft Entertainment SA (a) | | | | | 225 | | | | | | 22 | |
| | | | |
Vivendi S.A. | | | | | 3,946 | | | | | | 127 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 427 | |
| | | | | | | | | | | | |
| |
| CONSUMER DISCRETIONARY 1.3% | |
| | | | |
Cie Generale des Etablissements Michelin S.C.A. | | | | | 375 | | | | | | 48 | |
| | | | |
Elior Group S.A. | | | | | 4,039 | | | | | | 27 | |
| | | | |
Hermes International | | | | | 109 | | | | | | 117 | |
| | | | |
Kering S.A. | | | | | 207 | | | | | | 150 | |
| | | | |
LVMH Moet Hennessy Louis Vuitton SE | | | | | 666 | | | | | | 417 | |
| | | | |
Peugeot S.A. (a) | | | | | 3,775 | | | | | | 104 | |
| | | | |
Renault S.A. | | | | | 834 | | | | | | 37 | |
| | | | |
Sodexo S.A. | | | | | 474 | | | | | | 40 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 940 | |
| | | | | | | | | | | | |
| |
| CONSUMER STAPLES 0.7% | |
| | | | |
Carrefour S.A. | | | | | 6,614 | | | | | | 113 | |
| | | | |
Casino Guichard Perrachon S.A. | | | | | 737 | | | | | | 23 | |
| | | | |
Danone S.A. | | | | | 1,649 | | | | | | 109 | |
| | | | |
L’Oreal S.A. | | | | | 584 | | | | | | 223 | |
| | | | |
Pernod Ricard S.A. | | | | | 340 | | | | | | 65 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 533 | |
| | | | | | | | | | | | |
| |
| | | | | | | | | | | | |
| | | | | SHARES | | | | | MARKET
VALUE
(000S) | |
| ENERGY 0.2% | |
| | | | |
Total SE | | | | | 2,428 | | | $ | | | 105 | |
| | | | |
Vallourec S.A. (a) | | | | | 577 | | | | | | 19 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 124 | |
| | | | | | | | | | | | |
| |
| FINANCIALS 0.2% | |
| | | | |
Coface S.A. (a) | | | | | 2,697 | | | | | | 27 | |
| | | | |
Eurazeo S.A. | | | | | 349 | | | | | | 24 | |
| | | | |
Natixis S.A. | | | | | 4,425 | | | | | | 15 | |
| | | | |
SCOR SE | | | | | 782 | | | | | | 25 | |
| | | | |
Societe Generale S.A. (a) | | | | | 3,686 | | | | | | 77 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 168 | |
| | | | | | | | | | | | |
| |
| HEALTH CARE 0.4% | |
| | | | |
BioMerieux | | | | | 221 | | | | | | 31 | |
| | | | |
Korian S.A. (a) | | | | | 495 | | | | | | 19 | |
| | | | |
Sanofi | | | | | 1,690 | | | | | | 164 | |
| | | | |
Sartorius Stedim Biotech | | | | | 116 | | | | | | 41 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 255 | |
| | | | | | | | | | | | |
| |
| INDUSTRIALS 1.3% | |
| | | | |
Air France-KLM (a)(c) | | | | | 4,441 | | | | | | 28 | |
| | | | |
Airbus SE (a) | | | | | 540 | | | | | | 59 | |
| | | | |
Alstom S.A. | | | | | 1,080 | | | | | | 61 | |
| | | | |
Bouygues S.A. | | | | | 1,210 | | | | | | 50 | |
| | | | |
Bureau Veritas S.A. (a) | | | | | 1,216 | | | | | | 32 | |
| | | | |
Cie de Saint-Gobain (a) | | | | | 1,054 | | | | | | 48 | |
| | | | |
Eiffage S.A. (a) | | | | | 229 | | | | | | 22 | |
| | | | |
Elis S.A. (a) | | | | | 1,322 | | | | | | 22 | |
| | | | |
Legrand S.A. | | | | | 636 | | | | | | 57 | |
| | | | |
Nexans S.A. (a) | | | | | 591 | | | | | | 43 | |
| | | | |
Rexel S.A. | | | | | 3,825 | | | | | | 60 | |
| | | | |
Schneider Electric SE | | | | | 1,194 | | | | | | 173 | |
| | | | |
Societe BIC S.A. | | | | | 245 | | | | | | 14 | |
| | | | |
Teleperformance | | | | | 156 | | | | | | 52 | |
| | | | |
Thales S.A. | | | | | 242 | | | | | | 22 | |
| | | | |
Vinci S.A. | | | | | 1,936 | | | | | | 193 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 936 | |
| | | | | | | | | | | | |
| |
| INFORMATION TECHNOLOGY 0.3% | |
| | | | |
Alten S.A. | | | | | 209 | | | | | | 24 | |
| | | | |
Atos SE (a) | | | | | 170 | | | | | | 15 | |
| | | | |
Capgemini SE | | | | | 213 | | | | | | 33 | |
| | | | |
Dassault Systemes SE | | | | | 290 | | | | | | 59 | |
| | | | |
Quadient S.A. | | | | | 1,301 | | | | | | 25 | |
| | | | |
Worldline S.A. (a) | | | | | 737 | | | | | | 72 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 228 | |
| | | | | | | | | | | | |
| |
| MATERIALS 0.3% | |
| | | | |
Air Liquide S.A. | | | | | 966 | | | | | | 158 | |
| | | | |
Arkema S.A. | | | | | 187 | | | | | | 22 | |
| | | | |
Vicat S.A. | | | | | 629 | | | | | | 26 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 206 | |
| | | | | | | | | | | | |
| |
| REAL ESTATE 0.0% | |
| | | | |
Nexity S.A. | | | | | 344 | | | | | | 15 | |
| | | | | | | | | | | | |
| |
| UTILITIES 0.5% | |
| | | | |
Electricite de France S.A. | | | | | 6,753 | | | | | | 107 | |
| | | | |
Engie S.A. | | | | | 7,657 | | | | | | 117 | |
| | | | |
Suez S.A. | | | | | 1,457 | | | | | | 29 | |
| | | | | | | | | | | | |
| | | | | SHARES | | | | | MARKET
VALUE
(000S) | |
| | | | |
Veolia Environnement S.A. | | | | | 4,293 | | | $ | | | 106 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 359 | |
| | | | | | | | | | | | |
Total France | | | | | | | | | | | 4,191 | |
| | | | | | | | | | | | |
| |
| GERMANY 5.5% | |
| |
| COMMUNICATION SERVICES 0.4% | |
| | | | |
CTS Eventim AG & Co. KGaA (a) | | | | | 341 | | | | | | 23 | |
| | | | |
Deutsche Telekom AG | | | | | 7,308 | | | | | | 133 | |
| | | | |
Freenet AG | | | | | 1,650 | | | | | | 35 | |
| | | | |
ProSiebenSat.1 Media SE (a) | | | | | 1,477 | | | | | | 25 | |
| | | | |
Scout24 AG | | | | | 597 | | | | | | 49 | |
| | | | |
Telefonica Deutschland Holding AG | | | | | 5,193 | | | | | | 14 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 279 | |
| | | | | | | | | | | | |
| |
| CONSUMER DISCRETIONARY 1.2% | |
| | | | |
adidas AG (a) | | | | | 511 | | | | | | 186 | |
| | | | |
Bayerische Motoren Werke AG | | | | | 1,898 | | | | | | 168 | |
| | | | |
Continental AG | | | | | 694 | | | | | | 103 | |
| | | | |
Daimler AG | | | | | 3,769 | | | | | | 267 | |
| | | | |
ElringKlinger AG | | | | | 2,498 | | | | | | 48 | |
| | | | |
Fielmann AG (a) | | | | | 305 | | | | | | 25 | |
| | | | |
Hella GmbH & Co. KGaA | | | | | 476 | | | | | | 31 | |
| | | | |
TUI AG | | | | | 4,269 | | | | | | 27 | |
| | | | |
Zalando SE (a) | | | | | 425 | | | | | | 47 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 902 | |
| | | | | | | | | | | | |
| |
| CONSUMER STAPLES 0.1% | |
| | | | |
Beiersdorf AG | | | | | 390 | | | | | | 45 | |
| | | | |
Metro AG | | | | | 1,625 | | | | | | 18 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 63 | |
| | | | | | | | | | | | |
| |
| FINANCIALS 0.8% | |
| | | | |
Aareal Bank AG (a) | | | | | 1,100 | | | | | | 26 | |
| | | | |
Commerzbank AG (a) | | | | | 6,095 | | | | | | 39 | |
| | | | |
Deutsche Bank AG | | | | | 9,787 | | | | | | 108 | |
| | | | |
Deutsche Boerse AG | | | | | 792 | | | | | | 135 | |
| | | | |
Deutsche Pfandbriefbank AG | | | | | 3,385 | | | | | | 37 | |
| | | | |
Hannover Rueck SE | | | | | 241 | | | | | | 39 | |
| | | | |
Muenchener Rueckversicherungs-Gesellschaft AG in Muenchen | | | | | 532 | | | | | | 158 | |
| | | | |
Talanx AG | | | | | 572 | | | | | | 22 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 564 | |
| | | | | | | | | | | | |
| |
| HEALTH CARE 0.4% | |
| | | | |
Carl Zeiss Meditec AG | | | | | 264 | | | | | | 35 | |
| | | | |
Fresenius Medical Care AG & Co. KGaA | | | | | 1,272 | | | | | | 106 | |
| | | | |
Fresenius SE & Co. KGaA | | | | | 516 | | | | | | 24 | |
| | | | |
Merck KGaA | | | | | 412 | | | | | | 71 | |
| | | | |
Siemens Healthineers AG | | | | | 371 | | | | | | 19 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 255 | |
| | | | | | | | | | | | |
| |
| INDUSTRIALS 0.8% | |
| | | | |
Brenntag AG | | | | | 453 | | | | | | 35 | |
| | | | |
Deutsche Lufthansa AG | | | | | 3,513 | | | | | | 46 | |
| | | | |
Deutsche Post AG | | | | | 1,345 | | | | | | 67 | |
| | | | |
Deutz AG (a) | | | | | 2,515 | | | | | | 16 | |
| | | | |
Duerr AG | | | | | 608 | | | | | | 25 | |
| | | | |
Hapag-Lloyd AG | | | | | 209 | | | | | | 23 | |
| | | | |
Hochtief AG | | | | | 152 | | | | | | 15 | |
| | | | |
KION Group AG | | | | | 294 | | | | | | 26 | |
| | | | |
Kloeckner & Co. SE | | | | | 3,268 | | | | | | 32 | |
| | | | | | | | | | | | |
| See Accompanying Notes | | | SEMIANNUAL REPORT | | | | | | | DECEMBER 31, 2020 | | | 35 |
| | | | | | | | |
| Schedule of Investments | | PIMCO RAFI Dynamic Multi-Factor International Equity ETF | | (Cont.) | | | | |
| | | | | | | | | | | | |
| | | | | SHARES | | | | | MARKET
VALUE
(000S) | |
| | | | |
Knorr-Bremse AG | | | | | 162 | | | $ | | | 22 | |
| | | | |
Nordex SE (a) | | | | | 1,529 | | | | | | 42 | |
| | | | |
OSRAM Licht AG | | | | | 519 | | | | | | 33 | |
| | | | |
Rational AG | | | | | 36 | | | | | | 33 | |
| | | | |
Siemens AG | | | | | 1,395 | | | | | | 201 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 616 | |
| | | | | | | | | | | | |
| |
| INFORMATION TECHNOLOGY 0.2% | |
| | | | |
Infineon Technologies AG | | | | | 3,285 | | | | | | 126 | |
| | | | |
SAP SE | | | | | 427 | | | | | | 55 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 181 | |
| | | | | | | | | | | | |
| |
| MATERIALS 0.5% | |
| | | | |
Aurubis AG | | | | | 503 | | | | | | 39 | |
| | | | |
BASF SE | | | | | 2,748 | | | | | | 217 | |
| | | | |
Covestro AG | | | | | 777 | | | | | | 48 | |
| | | | |
Symrise AG | | | | | 317 | | | | | | 42 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 346 | |
| | | | | | | | | | | | |
| |
| REAL ESTATE 0.4% | |
| | | | |
Deutsche Wohnen SE | | | | | 996 | | | | | | 53 | |
| | | | |
LEG Immobilien AG | | | | | 305 | | | | | | 47 | |
| | | | |
TAG Immobilien AG | | | | | 979 | | | | | | 31 | |
| | | | |
Vonovia SE | | | | | 2,157 | | | | | | 158 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 289 | |
| | | | | | | | | | | | |
| |
| UTILITIES 0.7% | |
| | | | |
E.ON SE | | | | | 17,798 | | | | | | 197 | |
| | | | |
RWE AG | | | | | 5,431 | | | | | | 230 | |
| | | | |
Uniper SE | | | | | 2,676 | | | | | | 92 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 519 | |
| | | | | | | | | | | | |
Total Germany | | | | | | | | | | | 4,014 | |
| | | | | | | | | | | | |
| |
| HONG KONG 2.2% | |
| |
| COMMUNICATION SERVICES 0.2% | |
| | | | |
HKBN Ltd. | | | | | 10,500 | | | | | | 16 | |
| | | | |
HKT Trust & HKT Ltd. | | | | | 39,000 | | | | | | 51 | |
| | | | |
PCCW Ltd. | | | | | 73,295 | | | | | | 44 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 111 | |
| | | | | | | | | | | | |
| |
| CONSUMER DISCRETIONARY 0.5% | |
| | | | |
Bosideng International Holdings Ltd. | | | | | 78,000 | | | | | | 40 | |
| | | | |
Cafe de Coral Holdings Ltd. | | | | | 4,000 | | | | | | 9 | |
| | | | |
Chow Tai Fook Jewellery Group Ltd. | | | | | 22,400 | | | | | | 28 | |
| | | | |
Galaxy Entertainment Group Ltd. | | | | | 8,000 | | | | | | 62 | |
| | | | |
Man Wah Holdings Ltd. | | | | | 27,200 | | | | | | 59 | |
| | | | |
Melco Resorts & Entertainment Ltd. ADR | | | | | 2,185 | | | | | | 40 | |
| | | | |
SJM Holdings Ltd. | | | | | 14,000 | | | | | | 16 | |
| | | | |
Skyworth Group Ltd. | | | | | 53,527 | | | | | | 15 | |
| | | | |
Xinyi Glass Holdings Ltd. | | | | | 10,000 | | | | | | 28 | |
| | | | |
Yue Yuen Industrial Holdings Ltd. | | | | | 14,500 | | | | | | 30 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 327 | |
| | | | | | | | | | | | |
| |
| CONSUMER STAPLES 0.1% | |
| | | | |
Vitasoy International Holdings Ltd. | | | | | 8,000 | | | | | | 31 | |
| | | | |
WH Group Ltd. | | | | | 88,500 | | | | | | 74 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 105 | |
| | | | | | | | | | | | |
| |
| | | | | | | | | | | | |
| | | | | SHARES | | | | | MARKET
VALUE
(000S) | |
| FINANCIALS 0.4% | |
| | | | |
AIA Group Ltd. | | | | | 11,400 | | | $ | | | 139 | |
| | | | |
Hong Kong Exchanges and Clearing Ltd. | | | | | 3,000 | | | | | | 165 | |
| | | | |
Hopson Development Holdings Ltd. | | | | | 8,000 | | | | | | 20 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 324 | |
| | | | | | | | | | | | |
| |
| INDUSTRIALS 0.4% | |
| | | | |
Cathay Pacific Airways Ltd. | | | | | 17,000 | | | | | | 16 | |
| | | | |
CK Hutchison Holdings Ltd. | | | | | 9,000 | | | | | | 63 | |
| | | | |
Hutchison Port Holdings Trust | | | | | 141,400 | | | | | | 28 | |
| | | | |
Jardine Matheson Holdings Ltd. | | | | | 1,300 | | | | | | 73 | |
| | | | |
Jardine Strategic Holdings Ltd. | | | | | 600 | | | | | | 15 | |
| | | | |
MTR Corp. Ltd. | | | | | 8,500 | | | | | | 47 | |
| | | | |
SITC International Holdings Co. Ltd. | | | | | 7,000 | | | | | | 15 | |
| | | | |
Techtronic Industries Co. Ltd. | | | | | 2,500 | | | | | | 36 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 293 | |
| | | | | | | | | | | | |
| |
| INFORMATION TECHNOLOGY 0.1% | |
| | | | |
GCL-Poly Energy Holdings Ltd. (a) | | | | | 202,000 | | | | | | 32 | |
| | | | |
Kingboard Holdings Ltd. | | | | | 6,200 | | | | | | 26 | |
| | | | |
Kingboard Laminates Holdings Ltd. | | | | | 17,500 | | | | | | 29 | |
| | | | |
VTech Holdings Ltd. | | | | | 2,500 | | | | | | 19 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 106 | |
| | | | | | | | | | | | |
| |
| REAL ESTATE 0.2% | |
| | | | |
Gemdale Properties & Investment Corp. Ltd. | | | | | 96,000 | | | | | | 14 | |
| | | | |
Hongkong Land Holdings Ltd. | | | | | 4,700 | | | | | | 19 | |
| | | | |
Kerry Properties Ltd. | | | | | 5,500 | | | | | | 14 | |
| | | | |
New World Development Co. Ltd. | | | | | 7,500 | | | | | | 35 | |
| | | | |
Shimao Property Holdings Ltd. | | | | | 4,400 | | | | | | 14 | |
| | | | |
Swire Pacific Ltd. ‘A’ | | | | | 4,000 | | | | | | 22 | |
| | | | |
Wharf Holdings Ltd. | | | | | 13,000 | | | | | | 35 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 153 | |
| | | | | | | | | | | | |
| |
| UTILITIES 0.3% | |
| | | | |
China Gas Holdings Ltd. | | | | | 4,600 | | | | | | 18 | |
| | | | |
CLP Holdings Ltd. | | | | | 10,100 | | | | | | 93 | |
| | | | |
HK Electric Investments & HK Electric Investments Ltd. | | | | | 35,000 | | | | | | 34 | |
| | | | |
Hong Kong & China Gas Co. Ltd. | | | | | 30,450 | | | | | | 46 | |
| | | | |
Power Assets Holdings Ltd. | | | | | 4,000 | | | | | | 22 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 213 | |
| | | | | | | | | | | | |
Total Hong Kong | | | | | | | | | | | 1,632 | |
| | | | | | | | | | | | |
| |
| IRELAND 1.9% | |
| |
| CONSUMER DISCRETIONARY 0.4% | |
| | | | |
Aptiv PLC | | | | | 1,335 | | | | | | 174 | |
| | | | |
Flutter Entertainment PLC | | | | | 756 | | | | | | 156 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 330 | |
| | | | | | | | | | | | |
| |
| CONSUMER STAPLES 0.2% | |
| | | | |
Glanbia PLC | | | | | 1,187 | | | | | | 15 | |
| | | | |
Kerry Group PLC ‘A’ | | | | | 744 | | | | | | 108 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 123 | |
| | | | | | | | | | | | |
| |
| HEALTH CARE 0.5% | |
| | | | |
ICON PLC (a) | | | | | 382 | | | | | | 74 | |
| | | | |
Jazz Pharmaceuticals PLC (a) | | | | | 173 | | | | | | 29 | |
| | | | |
Medtronic PLC | | | | | 2,262 | | | | | | 265 | |
| | | | | | | | | | | | |
| | | | | SHARES | | | | | MARKET
VALUE
(000S) | |
| | | | |
UDG Healthcare PLC | | | | | 2,126 | | | $ | | | 23 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 391 | |
| | | | | | | | | | | | |
| |
| INDUSTRIALS 0.5% | |
| | | | |
Allegion PLC | | | | | 295 | | | | | | 34 | |
| | | | |
DCC PLC | | | | | 431 | | | | | | 30 | |
| | | | |
Experian PLC | | | | | 3,808 | | | | | | 145 | |
| | | | |
Grafton Group PLC | | | | | 2,415 | | | | | | 31 | |
| | | | |
Kingspan Group PLC | | | | | 503 | | | | | | 35 | |
| | | | |
Trane Technologies PLC | | | | | 488 | | | | | | 71 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 346 | |
| | | | | | | | | | | | |
| |
| MATERIALS 0.3% | |
| | | | |
James Hardie Industries PLC ADR | | | | | 4,302 | | | | | | 127 | |
| | | | |
Smurfit Kappa Group PLC | | | | | 2,014 | | | | | | 94 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 221 | |
| | | | | | | | | | | | |
Total Ireland | | | | | | | | | | | 1,411 | |
| | | | | | | | | | | | |
| |
| ISRAEL 0.7% | |
| |
| COMMUNICATION SERVICES 0.0% | |
| | | | |
Bezeq The Israeli Telecommunication Corp. Ltd. (a) | | | | | 26,511 | | | | | | 26 | |
| | | | | | | | | | | | |
| |
| CONSUMER STAPLES 0.0% | |
| | | | |
Shufersal Ltd. | | | | | 2,534 | | | | | | 20 | |
| | | | | | | | | | | | |
| |
| ENERGY 0.1% | |
| | | | |
Oil Refineries Ltd. (a) | | | | | 118,839 | | | | | | 27 | |
| | | | |
Paz Oil Co. Ltd. | | | | | 139 | | | | | | 15 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 42 | |
| | | | | | | | | | | | |
| |
| FINANCIALS 0.2% | |
| | | | |
Bank Hapoalim BM | | | | | 3,979 | | | | | | 27 | |
| | | | |
Bank Leumi Le-Israel BM | | | | | 4,304 | | | | | | 25 | |
| | | | |
Israel Discount Bank Ltd. ‘A’ | | | | | 6,136 | | | | | | 24 | |
| | | | |
Mizrahi Tefahot Bank Ltd. | | | | | 967 | | | | | | 23 | |
| | | | |
Plus500 Ltd. | | | | | 1,372 | | | | | | 27 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 126 | |
| | | | | | | | | | | | |
| |
| HEALTH CARE 0.0% | |
| | | | |
Teva Pharmaceutical Industries Ltd. SP - ADR (a) | | | | | 2,844 | | | | | | 28 | |
| | | | | | | | | | | | |
| |
| INDUSTRIALS 0.1% | |
| | | | |
Elbit Systems Ltd. | | | | | 120 | | | | | | 16 | |
| | | | |
Shikun & Binui Ltd. (a) | | | | | 4,864 | | | | | | 28 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 44 | |
| | | | | | | | | | | | |
| |
| INFORMATION TECHNOLOGY 0.3% | |
| | | | |
Check Point Software Technologies Ltd. (a) | | | | | 321 | | | | | | 43 | |
| | | | |
Nice Ltd. (a) | | | | | 266 | | | | | | 75 | |
| | | | |
SolarEdge Technologies, Inc. (a) | | | | | 310 | | | | | | 99 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 217 | |
| | | | | | | | | | | | |
| |
| MATERIALS 0.0% | |
| | | | |
ICL Group Ltd. | | | | | 6,140 | | | | | | 31 | |
| | | | | | | | | | | | |
Total Israel | | | | | | | | | | | 534 | |
| | | | | | | | | | | | |
| |
| | | | | | |
| 36 | | PIMCO EQUITY SERIES | | | See Accompanying Notes | |
| | | | | | | | |
| | | | | | December 31, 2020 | | (Unaudited) |
| | | | | | | | | | | | |
| | | | | SHARES | | | | | MARKET
VALUE
(000S) | |
| ITALY 2.0% | |
| |
| COMMUNICATION SERVICES 0.2% | |
| | | | |
Infrastrutture Wireless Italiane SpA | | | | | 2,186 | | | $ | | | 27 | |
| | | | |
Telecom Italia SpA | | | | | 181,082 | | | | | | 84 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 111 | |
| | | | | | | | | | | | |
| |
| CONSUMER DISCRETIONARY 0.3% | |
| | | | |
De’ Longhi SpA | | | | | 680 | | | | | | 21 | |
| | | | |
Ferrari NV | | | | | 465 | | | | | | 108 | |
| | | | |
Moncler SpA (a) | | | | | 468 | | | | | | 29 | |
| | | | |
OVS SpA (a) | | | | | 17,102 | | | | | | 22 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 180 | |
| | | | | | | | | | | | |
| |
| CONSUMER STAPLES 0.0% | |
| | | | |
MARR SpA (a) | | | | | 1,193 | | | | | | 25 | |
| | | | | | | | | | | | |
| |
| ENERGY 0.2% | |
| | | | |
Eni SpA | | | | | 10,444 | | | | | | 109 | |
| | | | |
Saipem SpA | | | | | 7,596 | | | | | | 20 | |
| | | | |
Saras SpA (a) | | | | | 43,375 | | | | | | 32 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 161 | |
| | | | | | | | | | | | |
| |
| FINANCIALS 0.3% | |
| | | | |
Anima Holding SpA | | | | | 4,727 | | | | | | 23 | |
| | | | |
Azimut Holding SpA | | | | | 1,196 | | | | | | 26 | |
| | | | |
Banca Generali SpA (a) | | | | | 639 | | | | | | 21 | |
| | | | |
Banca IFIS SpA (a) | | | | | 1,921 | | | | | | 22 | |
| | | | |
Banca Popolare di Sondrio SCPA | | | | | 5,959 | | | | | | 16 | |
| | | | |
Banco BPM SpA (a) | | | | | 13,718 | | | | | | 30 | |
| | | | |
BPER Banca (a) | | | | | 11,758 | | | | | | 21 | |
| | | | |
FinecoBank Banca Fineco SpA (a) | | | | | 2,213 | | | | | | 37 | |
| | | | |
UniCredit SpA | | | | | 1,583 | | | | | | 15 | |
| | | | |
Unipol Gruppo Finanziario SpA (a) | | | | | 5,086 | | | | | | 24 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 235 | |
| | | | | | | | | | | | |
| |
| HEALTH CARE 0.2% | |
| | | | |
Amplifon SpA (a) | | | | | 741 | | | | | | 31 | |
| | | | |
DiaSorin SpA | | | | | 268 | | | | | | 56 | |
| | | | |
Recordati Industria Chimica e Farmaceutica SpA | | | | | 529 | | | | | | 29 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 116 | |
| | | | | | | | | | | | |
| |
| INDUSTRIALS 0.1% | |
| | | | |
ASTM SpA | | | | | 704 | | | | | | 18 | |
| | | | |
Enav SpA | | | | | 3,748 | | | | | | 16 | |
| | | | |
Prysmian SpA | | | | | 1,152 | | | | | | 41 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 75 | |
| | | | | | | | | | | | |
| |
| UTILITIES 0.7% | |
| | | | |
Enel SpA | | | | | 30,329 | | | | | | 309 | |
| | | | |
ERG SpA | | | | | 1,104 | | | | | | 32 | |
| | | | |
Hera SpA | | | | | 4,259 | | | | | | 15 | |
| | | | |
Iren SpA | | | | | 7,780 | | | | | | 20 | |
| | | | |
Snam SpA | | | | | 12,170 | | | | | | 69 | |
| | | | |
Terna Rete Elettrica Nazionale SpA | | | | | 9,891 | | | | | | 76 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 521 | |
| | | | | | | | | | | | |
Total Italy | | | | | | | | | | | 1,424 | |
| | | | | | | | | | | | |
| |
| | | | | | | | | | | | |
| | | | | SHARES | | | | | MARKET
VALUE
(000S) | |
| JAPAN 26.2% | |
| |
| COMMUNICATION SERVICES 2.3% | |
| | | | |
Avex, Inc. | | | | | 1,200 | | | $ | | | 13 | |
| | | | |
Capcom Co. Ltd. | | | | | 1,100 | | | | | | 71 | |
| | | | |
CyberAgent, Inc. | | | | | 600 | | | | | | 42 | |
| | | | |
Fuji Media Holdings, Inc. | | | | | 1,700 | | | | | | 18 | |
| | | | |
Kadokawa Corp. | | | | | 1,100 | | | | | | 40 | |
| | | | |
Kakaku.com, Inc. | | | | | 1,000 | | | | | | 27 | |
| | | | |
KDDI Corp. | | | | | 14,600 | | | | | | 433 | |
| | | | |
Nintendo Co. Ltd. | | | | | 300 | | | | | | 193 | |
| | | | |
Nippon Telegraph & Telephone Corp. | | | | | 9,900 | | | | | | 254 | |
| | | | |
Shochiku Co. Ltd. | | | | | 100 | | | | | | 14 | |
| | | | |
Softbank Corp. | | | | | 7,800 | | | | | | 98 | |
| | | | |
SoftBank Group Corp. | | | | | 4,100 | | | | | | 318 | |
| | | | |
Square Enix Holdings Co. Ltd. | | | | | 500 | | | | | | 30 | |
| | | | |
Yahoo Japan Corp. | | | | | 21,000 | | | | | | 127 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 1,678 | |
| | | | | | | | | | | | |
| |
| CONSUMER DISCRETIONARY 5.1% | |
| | | | |
ABC-Mart, Inc. | | | | | 200 | | | | | | 11 | |
| | | | |
Adastria Co. Ltd. | | | | | 1,200 | | | | | | 24 | |
| | | | |
Aisin Seiki Co. Ltd. | | | | | 1,200 | | | | | | 36 | |
| | | | |
Arata Corp. | | | | | 100 | | | | | | 5 | |
| | | | |
ASKUL Corp. | | | | | 600 | | | | | | 22 | |
| | | | |
Autobacs Seven Co. Ltd. | | | | | 1,200 | | | | | | 17 | |
| | | | |
Bandai Namco Holdings, Inc. | | | | | 1,100 | | | | | | 95 | |
| | | | |
Bridgestone Corp. (c) | | | | | 5,400 | | | | | | 177 | |
| | | | |
Casio Computer Co. Ltd. | | | | | 1,900 | | | | | | 35 | |
| | | | |
DCM Holdings Co. Ltd. | | | | | 2,000 | | | | | | 23 | |
| | | | |
Denso Corp. | | | | | 2,100 | | | | | | 125 | |
| | | | |
EDION Corp. | | | | | 2,100 | | | | | | 21 | |
| | | | |
Fast Retailing Co. Ltd. | | | | | 200 | | | | | | 179 | |
| | | | |
FCC Co. Ltd. | | | | | 900 | | | | | | 16 | |
| | | | |
H2O Retailing Corp. | | | | | 1,300 | | | | | | 9 | |
| | | | |
Haseko Corp. | | | | | 1,200 | | | | | | 14 | |
| | | | |
Honda Motor Co. Ltd. | | | | | 4,800 | | | | | | 135 | |
| | | | |
Iida Group Holdings Co. Ltd. | | | | | 1,100 | | | | | | 22 | |
| | | | |
Isetan Mitsukoshi Holdings Ltd. | | | | | 4,800 | | | | | | 28 | |
| | | | |
Isuzu Motors Ltd. | | | | | 4,100 | | | | | | 39 | |
| | | | |
JVC Kenwood Corp. | | | | | 14,600 | | | | | | 23 | |
| | | | |
K’s Holdings Corp. | | | | | 3,400 | | | | | | 47 | |
| | | | |
Kohnan Shoji Co. Ltd. | | | | | 900 | | | | | | 28 | |
| | | | |
Koito Manufacturing Co. Ltd. | | | | | 700 | | | | | | 48 | |
| | | | |
Komeri Co. Ltd. | | | | | 1,100 | | | | | | 31 | |
| | | | |
Kura Sushi, Inc. | | | | | 100 | | | | | | 6 | |
| | | | |
Mazda Motor Corp. | | | | | 5,600 | | | | | | 37 | |
| | | | |
McDonald’s Holdings Co. Japan Ltd. | | | | | 200 | | | | | | 10 | |
| | | | |
Musashi Seimitsu Industry Co. Ltd. | | | | | 1,100 | | | | | | 18 | |
| | | | |
NHK Spring Co. Ltd. | | | | | 1,500 | | | | | | 10 | |
| | | | |
Nishimatsuya Chain Co. Ltd. | | | | | 2,100 | | | | | | 30 | |
| | | | |
Nissan Motor Co. Ltd. | | | | | 20,200 | | | | | | 110 | |
| | | | |
Nitori Holdings Co. Ltd. | | | | | 400 | | | | | | 84 | |
| | | | |
NOK Corp. | | | | | 1,700 | | | | | | 18 | |
| | | | |
Ohsho Food Service Corp. | | | | | 100 | | | | | | 6 | |
| | | | |
Oriental Land Co. Ltd. | | | | | 700 | | | | | | 116 | |
| | | | |
Paltac Corp. | | | | | 100 | | | | | | 5 | |
| | | | |
Pan Pacific International Holdings Corp. | | | | | 1,600 | | | | | | 37 | |
| | | | |
Panasonic Corp. | | | | | 21,900 | | | | | | 255 | |
| | | | |
Plenus Co. Ltd. | | | | | 1,200 | | | | | | 20 | |
| | | | |
Rinnai Corp. | | | | | 100 | | | | | | 12 | |
| | | | |
Royal Holdings Co. Ltd. | | | | | 800 | | | | | | 14 | |
| | | | |
Saizeriya Co. Ltd. | | | | | 800 | | | | | | 15 | |
| | | | |
Sankyo Co. Ltd. | | | | | 700 | | | | | | 19 | |
| | | | | | | | | | | | |
| | | | | SHARES | | | | | MARKET
VALUE
(000S) | |
| | | | |
Sega Sammy Holdings, Inc. | | | | | 1,200 | | | $ | | | 19 | |
| | | | |
Sekisui Chemical Co. Ltd. | | | | | 3,700 | | | | | | 70 | |
| | | | |
Sekisui House Ltd. | | | | | 2,400 | | | | | | 49 | |
| | | | |
Seria Co. Ltd. | | | | | 400 | | | | | | 15 | |
| | | | |
Shimamura Co. Ltd. | | | | | 400 | | | | | | 42 | |
| | | | |
Shimano, Inc. | | | | | 500 | | | | | | 117 | |
| | | | |
Skylark Co. Ltd. | | | | | 1,200 | | | | | | 19 | |
| | | | |
Sony Corp. | | | | | 3,500 | | | | | | 353 | |
| | | | |
Stanley Electric Co. Ltd. | | | | | 100 | | | | | | 3 | |
| | | | |
Subaru Corp. | | | | | 1,700 | | | | | | 34 | |
| | | | |
Sumitomo Electric Industries Ltd. | | | | | 3,400 | | | | | | 45 | |
| | | | |
Sumitomo Forestry Co. Ltd. | | | | | 1,100 | | | | | | 23 | |
| | | | |
Sumitomo Rubber Industries Ltd. | | | | | 2,500 | | | | | | 22 | |
| | | | |
Sushiro Global Holdings Ltd. | | | | | 2,400 | | | | | | 92 | |
| | | | |
Suzuki Motor Corp. | | | | | 3,600 | | | | | | 167 | |
| | | | |
Tokai Rika Co. Ltd. | | | | | 1,000 | | | | | | 17 | |
| | | | |
Tomy Co. Ltd. | | | | | 1,200 | | | | | | 11 | |
| | | | |
Toyoda Gosei Co. Ltd. | | | | | 1,000 | | | | | | 29 | |
| | | | |
Toyota Boshoku Corp. | | | | | 1,000 | | | | | | 16 | |
| | | | |
Toyota Motor Corp. | | | | | 3,100 | | | | | | 239 | |
| | | | |
TS Tech Co. Ltd. | | | | | 1,000 | | | | | | 31 | |
| | | | |
USS Co. Ltd. | | | | | 1,700 | | | | | | 34 | |
| | | | |
Workman Co. Ltd. | | | | | 100 | | | | | | 9 | |
| | | | |
Yamada Denki Co. Ltd. | | | | | 11,900 | | | | | | 63 | |
| | | | |
Yamaha Corp. | | | | | 700 | | | | | | 41 | |
| | | | |
Yellow Hat Ltd. | | | | | 1,300 | | | | | | 21 | |
| | | | |
Yondoshi Holdings, Inc. | | | | | 800 | | | | | | 15 | |
| | | | |
Yoshinoya Holdings Co. Ltd. | | | | | 1,100 | | | | | | 20 | |
| | | | |
Zensho Holdings Co. Ltd. | | | | | 800 | | | | | | 21 | |
| | | | |
Zojirushi Corp. | | | | | 1,100 | | | | | | 20 | |
| | | | |
ZOZO, Inc. | | | | | 700 | | | | | | 17 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 3,706 | |
| | | | | | | | | | | | |
| |
| CONSUMER STAPLES 2.7% | |
| | | | |
Aeon Co. Ltd. | | | | | 5,400 | | | | | | 177 | |
| | | | |
Ain Holdings, Inc. | | | | | 100 | | | | | | 6 | |
| | | | |
Ajinomoto Co., Inc. | | | | | 5,400 | | | | | | 122 | |
| | | | |
Ariake Japan Co. Ltd. | | | | | 100 | | | | | | 7 | |
| | | | |
Asahi Group Holdings Ltd. | | | | | 1,300 | | | | | | 54 | |
| | | | |
Cosmos Pharmaceutical Corp. | | | | | 100 | | | | | | 16 | |
| | | | |
Earth Corp. | | | | | 100 | | | | | | 6 | |
| | | | |
Fuji Oil Holdings, Inc. | | | | | 1,000 | | | | | | 29 | |
| | | | |
Heiwado Co. Ltd. | | | | | 1,200 | | | | | | 26 | |
| | | | |
Ito En Ltd. | | | | | 300 | | | | | | 19 | |
| | | | |
J-Oil Mills, Inc. | | | | | 200 | | | | | | 7 | |
| | | | |
Japan Tobacco, Inc. | | | | | 10,500 | | | | | | 214 | |
| | | | |
Kagome Co. Ltd. | | | | | 1,100 | | | | | | 39 | |
| | | | |
Kao Corp. | | | | | 2,200 | | | | | | 170 | |
| | | | |
Kewpie Corp. | | | | | 1,100 | | | | | | 24 | |
| | | | |
Kikkoman Corp. | | | | | 700 | | | | | | 49 | |
| | | | |
Kirin Holdings Co. Ltd. | | | | | 6,900 | | | | | | 163 | |
| | | | |
Kobayashi Pharmaceutical Co. Ltd. | | | | | 200 | | | | | | 24 | |
| | | | |
Lion Corp. | | | | | 1,100 | | | | | | 27 | |
| | | | |
Matsumotokiyoshi Holdings Co. Ltd. | | | | | 200 | | | | | | 9 | |
| | | | |
MEIJI Holdings Co. Ltd. | | | | | 700 | | | | | | 49 | |
| | | | |
Mitsui Sugar Co. Ltd. | | | | | 800 | | | | | | 14 | |
| | | | |
Morinaga Milk Industry Co. Ltd. | | | | | 300 | | | | | | 15 | |
| | | | |
NH Foods Ltd. | | | | | 1,300 | | | | | | 57 | |
| | | | |
Nichirei Corp. | | | | | 1,100 | | | | | | 31 | |
| | | | |
Nisshin Oillio Group Ltd. | | | | | 200 | | | | | | 6 | |
| | | | |
Nisshin Seifun Group, Inc. | | | | | 1,100 | | | | | | 17 | |
| | | | |
Nissin Foods Holdings Co. Ltd. | | | | | 600 | | | | | | 51 | |
| | | | |
Pigeon Corp. | | | | | 400 | | | | | | 16 | |
| | | | |
Prima Meat Packers Ltd. | | | | | 1,000 | | | | | | 32 | |
| | | | | | | | | | | | |
| See Accompanying Notes | | | SEMIANNUAL REPORT | | | | | | | DECEMBER 31, 2020 | | | 37 |
| | | | | | | | |
| Schedule of Investments | | PIMCO RAFI Dynamic Multi-Factor International Equity ETF | | (Cont.) | | | | |
| | | | | | | | | | | | |
| | | | | SHARES | | | | | MARKET
VALUE
(000S) | |
| | | | |
Sakata Seed Corp. | | | | | 200 | | | $ | | | 7 | |
| | | | |
Seven & i Holdings Co. Ltd. | | | | | 5,700 | | | | | | 202 | |
| | | | |
Sugi Holdings Co. Ltd. | | | | | 200 | | | | | | 13 | |
| | | | |
Sundrug Co. Ltd. | | | | | 1,000 | | | | | | 40 | |
| | | | |
Suntory Beverage & Food Ltd. | | | | | 1,100 | | | | | | 39 | |
| | | | |
Toyo Suisan Kaisha Ltd. | | | | | 1,100 | | | | | | 54 | |
| | | | |
Tsuruha Holdings, Inc. | | | | | 200 | | | | | | 28 | |
| | | | |
Unicharm Corp. | | | | | 1,600 | | | | | | 76 | |
| | | | |
Welcia Holdings Co. Ltd. | | | | | 500 | | | | | | 19 | |
| | | | |
Yakult Honsha Co. Ltd. | | | | | 300 | | | | | | 15 | |
| | | | |
Yamazaki Baking Co. Ltd. | | | | | 900 | | | | | | 15 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 1,984 | |
| | | | | | | | | | | | |
| |
| ENERGY 0.3% | |
| | | | |
Cosmo Energy Holdings Co. Ltd. | | | | | 2,500 | | | | | | 45 | |
| | | | |
Idemitsu Kosan Co. Ltd. | | | | | 812 | | | | | | 18 | |
| | | | |
Inpex Corp. | | | | | 5,600 | | | | | | 30 | |
| | | | |
Iwatani Corp. | | | | | 1,100 | | | | | | 68 | |
| | | | |
JXTG Holdings, Inc. | | | | | 14,600 | | | | | | 52 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 213 | |
| | | | | | | | | | | | |
| |
| FINANCIALS 0.4% | |
| | | | |
Aozora Bank Ltd. | | | | | 1,000 | | | | | | 19 | |
| | | | |
Daiwa Securities Group, Inc. | | | | | 11,500 | | | | | | 52 | |
| | | | |
Jafco Co. Ltd. | | | | | 200 | | | | | | 10 | |
| | | | |
Japan Exchange Group, Inc. | | | | | 1,500 | | | | | | 38 | |
| | | | |
Japan Post Bank Co. Ltd. | | | | | 6,500 | | | | | | 53 | |
| | | | |
Japan Post Holdings Co. Ltd. | | | | | 10,400 | | | | | | 81 | |
| | | | |
Kobe Bussan Co. Ltd. | | | | | 800 | | | | | | 25 | |
| | | | |
North Pacific Bank Ltd. | | | | | 5,900 | | | | | | 13 | |
| | | | |
Okasan Securities Group, Inc. | | | | | 3,900 | | | | | | 14 | |
| | | | |
Zenkoku Hosho Co. Ltd. | | | | | 200 | | | | | | 9 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 314 | |
| | | | | | | | | | | | |
| |
| HEALTH CARE 3.0% | |
| | | | |
Astellas Pharma, Inc. | | | | | 12,800 | | | | | | 198 | |
| | | | |
Chugai Pharmaceutical Co. Ltd. | | | | | 3,000 | | | | | | 160 | |
| | | | |
Daiichi Sankyo Co. Ltd. | | | | | 7,600 | | | | | | 261 | |
| | | | |
Eisai Co. Ltd. | | | | | 600 | | | | | | 43 | |
| | | | |
H.U. Group Holdings, Inc. | | | | | 900 | | | | | | 24 | |
| | | | |
Hogy Medical Co. Ltd. | | | | | 200 | | | | | | 7 | |
| | | | |
Hoya Corp. | | | | | 2,600 | | | | | | 360 | |
| | | | |
Kyowa Kirin Co. Ltd. | | | | | 600 | | | | | | 16 | |
| | | | |
M3, Inc. | | | | | 1,500 | | | | | | 142 | |
| | | | |
Medipal Holdings Corp. | | | | | 800 | | | | | | 15 | |
| | | | |
Olympus Corp. | | | | | 9,000 | | | | | | 197 | |
| | | | |
Ono Pharmaceutical Co. Ltd. | | | | | 1,100 | | | | | | 33 | |
| | | | |
Otsuka Holdings Co. Ltd. | | | | | 2,500 | | | | | | 107 | |
| | | | |
Paramount Bed Holdings Co. Ltd. | | | | | 200 | | | | | | 9 | |
| | | | |
Rohto Pharmaceutical Co. Ltd. | | | | | 500 | | | | | | 15 | |
| | | | |
Santen Pharmaceutical Co. Ltd. | | | | | 900 | | | | | | 15 | |
| | | | |
Sawai Pharmaceutical Co. Ltd. | | | | | 200 | | | | | | 9 | |
| | | | |
Shionogi & Co. Ltd. | | | | | 1,100 | | | | | | 60 | |
| | | | |
Suzuken Co. Ltd. | | | | | 800 | | | | | | 29 | |
| | | | |
Sysmex Corp. | | | | | 400 | | | | | | 48 | |
| | | | |
Takeda Pharmaceutical Co. Ltd. | | | | | 5,941 | | | | | | 215 | |
| | | | |
Terumo Corp. | | | | | 4,500 | | | | | | 188 | |
| | | | |
Tsumura & Co. | | | | | 1,000 | | | | | | 30 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 2,181 | |
| | | | | | | | | | | | |
| |
| INDUSTRIALS 5.1% | |
| | | | |
Amada Co. Ltd. | | | | | 1,400 | | | | | | 15 | |
| | | | |
ANA Holdings, Inc. | | | | | 1,000 | | | | | | 22 | |
| | | | | | | | | | | | |
| | | | | SHARES | | | | | MARKET
VALUE
(000S) | |
| | | | |
Asahi Glass Co. Ltd. | | | | | 1,000 | | | $ | | | 35 | |
| | | | |
Central Glass Co. Ltd. | | | | | 1,000 | | | | | | 22 | |
| | | | |
COMSYS Holdings Corp. | | | | | 200 | | | | | | 6 | |
| | | | |
Dai Nippon Printing Co. Ltd. | | | | | 3,000 | | | | | | 54 | |
| | | | |
Daifuku Co. Ltd. | | | | | 200 | | | | | | 25 | |
| | | | |
Daikin Industries Ltd. | | | | | 1,600 | | | | | | 356 | |
| | | | |
DMG Mori Co. Ltd. | | | | | 1,200 | | | | | | 18 | |
| | | | |
East Japan Railway Co. | | | | | 300 | | | | | | 20 | |
| | | | |
FANUC Corp. | | | | | 700 | | | | | | 173 | |
| | | | |
Fuji Electric Co. Ltd. | | | | | 100 | | | | | | 4 | |
| | | | |
Fujikura Ltd. | | | | | 3,700 | | | | | | 17 | |
| | | | |
Fujitec Co. Ltd. | | | | | 1,200 | | | | | | 26 | |
| | | | |
Hankyu Hanshin Holdings, Inc. | | | | | 1,100 | | | | | | 37 | |
| | | | |
Hanwa Co. Ltd. | | | | | 1,000 | | | | | | 27 | |
| | | | |
Hazama Ando Corp. | | | | | 1,500 | | | | | | 10 | |
| | | | |
Hino Motors Ltd. | | | | | 5,500 | | | | | | 47 | |
| | | | |
Hitachi Zosen Corp. | | | | | 6,600 | | | | | | 36 | |
| | | | |
Hoshizaki Corp. | | | | | 100 | | | | | | 9 | |
| | | | |
ITOCHU Corp. | | | | | 4,900 | | | | | | 141 | |
| | | | |
Japan Airlines Co. Ltd. | | | | | 3,500 | | | | | | 67 | |
| | | | |
JTEKT Corp. | | | | | 3,300 | | | | | | 26 | |
| | | | |
Kajima Corp. | | | | | 2,000 | | | | | | 27 | |
| | | | |
Kanematsu Corp. | | | | | 1,900 | | | | | | 24 | |
| | | | |
Kawasaki Heavy Industries Ltd. | | | | | 1,700 | | | | | | 38 | |
| | | | |
Keihan Holdings Co. Ltd. | | | | | 200 | | | | | | 10 | |
| | | | |
Keikyu Corp. | | | | | 1,100 | | | | | | 19 | |
| | | | |
Keio Corp. | | | | | 500 | | | | | | 39 | |
| | | | |
Kinden Corp. | | | | | 1,200 | | | | | | 20 | |
| | | | |
Kintetsu Group Holdings Co. Ltd. | | | | | 400 | | | | | | 18 | |
| | | | |
Kubota Corp. | | | | | 2,700 | | | | | | 59 | |
| | | | |
Kurita Water Industries Ltd. | | | | | 1,000 | | | | | | 38 | |
| | | | |
Kyowa Exeo Corp. | | | | | 1,000 | | | | | | 28 | |
| | | | |
Kyushu Railway Co. | | | | | 800 | | | | | | 17 | |
| | | | |
LIXIL Group Corp. | | | | | 1,900 | | | | | | 41 | |
| | | | |
Maeda Road Construction Co. Ltd. | | | | | 1,000 | | | | | | 17 | |
| | | | |
Makita Corp. | | | | | 1,500 | | | | | | 75 | |
| | | | |
Marubeni Corp. | | | | | 9,500 | | | | | | 63 | |
| | | | |
Meitec Corp. | | | | | 300 | | | | | | 16 | |
| | | | |
Minebea Mitsumi, Inc. | | | | | 2,300 | | | | | | 46 | |
| | | | |
Mirait Holdings Corp. | | | | | 1,300 | | | | | | 22 | |
| | | | |
MISUMI Group, Inc. | | | | | 700 | | | | | | 23 | |
| | | | |
Mitsubishi Heavy Industries Ltd. | | | | | 1,000 | | | | | | 31 | |
| | | | |
Mitsui & Co. Ltd. | | | | | 5,600 | | | | | | 103 | |
| | | | |
Mitsui OSK Lines Ltd. | | | | | 1,100 | | | | | | 34 | |
| | | | |
Miura Co. Ltd. | | | | | 200 | | | | | | 11 | |
| | | | |
Nagase & Co. Ltd. | | | | | 1,200 | | | | | | 18 | |
| | | | |
Nagoya Railroad Co. Ltd. | | | | | 1,000 | | | | | | 26 | |
| | | | |
Nankai Electric Railway Co. Ltd. | | | | | 1,200 | | | | | | 30 | |
| | | | |
Nidec Corp. | | | | | 1,400 | | | | | | 177 | |
| | | | |
Nippo Corp. | | | | | 1,000 | | | | | | 27 | |
| | | | |
Nippon Express Co. Ltd. | | | | | 300 | | | | | | 20 | |
| | | | |
Nippon Sheet Glass Co. Ltd. | | | | | 8,500 | | | | | | 39 | |
| | | | |
Nippon Yusen KK | | | | | 1,800 | | | | | | 42 | |
| | | | |
NSK Ltd. | | | | | 4,200 | | | | | | 37 | |
| | | | |
NTN Corp. | | | | | 4,600 | | | | | | 12 | |
| | | | |
Obayashi Corp. | | | | | 8,000 | | | | | | 69 | |
| | | | |
Odakyu Electric Railway Co. Ltd. | | | | | 1,200 | | | | | | 38 | |
| | | | |
OSG Corp. | | | | | 1,100 | | | | | | 21 | |
| | | | |
Park24 Co. Ltd. | | | | | 800 | | | | | | 14 | |
| | | | |
Penta-Ocean Construction Co. Ltd. | | | | | 2,500 | | | | | | 22 | |
| | | | |
Recruit Holdings Co. Ltd. | | | | | 5,300 | | | | | | 223 | |
| | | | |
Sakai Moving Service Co. Ltd. | | | | | 100 | | | | | | 5 | |
| | | | |
Sanwa Holdings Corp. | | | | | 1,200 | | | | | | 14 | |
| | | | |
Secom Co. Ltd. | | | | | 600 | | | | | | 55 | |
| | | | |
Seibu Holdings, Inc. | | | | | 1,200 | | | | | | 12 | |
| | | | | | | | | | | | |
| | | | | SHARES | | | | | MARKET
VALUE
(000S) | |
| | | | |
Seino Holdings Co. Ltd. | | | | | 2,000 | | | $ | | | 28 | |
| | | | |
SG Holdings Co. Ltd. | | | | | 2,200 | | | | | | 60 | |
| | | | |
Shibaura Machine Co. Ltd. | | | | | 800 | | | | | | 18 | |
| | | | |
Shimizu Corp. | | | | | 3,000 | | | | | | 22 | |
| | | | |
Shinmaywa Industries Ltd. | | | | | 1,700 | | | | | | 15 | |
| | | | |
SHO-BOND Holdings Co. Ltd. | | | | | 200 | | | | | | 10 | |
| | | | |
SMC Corp. | | | | | 200 | | | | | | 122 | |
| | | | |
Sohgo Security Services Co. Ltd. | | | | | 300 | | | | | | 16 | |
| | | | |
Sojitz Corp. | | | | | 5,500 | | | | | | 12 | |
| | | | |
Sotetsu Holdings, Inc. | | | | | 1,000 | | | | | | 24 | |
| | | | |
Sumitomo Mitsui Construction Co. Ltd. | | | | | 2,520 | | | | | | 10 | |
| | | | |
Taikisha Ltd. | | | | | 800 | | | | | | 21 | |
| | | | |
Taisei Corp. | | | | | 1,600 | | | | | | 55 | |
| | | | |
Takeuchi Manufacturing Co. Ltd. | | | | | 1,200 | | | | | | 28 | |
| | | | |
Tobu Railway Co. Ltd. | | | | | 1,100 | | | | | | 33 | |
| | | | |
TOKAI Holdings Corp. | | | | | 2,200 | | | | | | 22 | |
| | | | |
Tokyu Corp. | | | | | 1,700 | | | | | | 21 | |
| | | | |
Toppan Printing Co. Ltd. | | | | | 1,700 | | | | | | 24 | |
| | | | |
TOTO Ltd. | | | | | 1,100 | | | | | | 66 | |
| | | | |
Toyota Tsusho Corp. | | | | | 2,400 | | | | | | 97 | |
| | | | |
West Japan Railway Co. | | | | | 400 | | | | | | 21 | |
| | | | |
Yamato Holdings Co. Ltd. | | | | | 1,100 | | | | | | 28 | |
| | | | |
Yuasa Trading Co. Ltd. | | | | | 1,000 | | | | | | 32 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 3,698 | |
| | | | | | | | | | | | |
| |
| INFORMATION TECHNOLOGY 4.6% | |
| | | | |
Advantest Corp. | | | | | 700 | | | | | | 52 | |
| | | | |
Amano Corp. | | | | | 1,100 | | | | | | 26 | |
| | | | |
Azbil Corp. | | | | | 1,100 | | | | | | 60 | |
| | | | |
Brother Industries Ltd. | | | | | 1,200 | | | | | | 25 | |
| | | | |
Canon Marketing Japan, Inc. | | | | | 1,100 | | | | | | 25 | |
| | | | |
Canon, Inc. | | | | | 2,700 | | | | | | 52 | |
| | | | |
Daiwabo Holdings Co. Ltd. | | | | | 300 | | | | | | 27 | |
| | | | |
DTS Corp. | | | | | 1,100 | | | | | | 23 | |
| | | | |
FUJIFILM Holdings Corp. | | | | | 1,000 | | | | | | 53 | |
| | | | |
Fujitsu Ltd. | | | | | 1,000 | | | | | | 145 | |
| | | | |
Hamamatsu Photonics KK | | | | | 300 | | | | | | 17 | |
| | | | |
Hitachi Ltd. | | | | | 9,900 | | | | | | 391 | |
| | | | |
Horiba Ltd. | | | | | 100 | | | | | | 6 | |
| | | | |
Hosiden Corp. | | | | | 1,200 | | | | | | 12 | |
| | | | |
Ibiden Co. Ltd. | | | | | 1,200 | | | | | | 56 | |
| | | | |
Internet Initiative Japan, Inc. | | | | | 800 | | | | | | 16 | |
| | | | |
Itochu Techno-Solutions Corp. | | | | | 1,100 | | | | | | 39 | |
| | | | |
Keyence Corp. | | | | | 500 | | | | | | 281 | |
| | | | |
Koei Tecmo Holdings Co. Ltd. | | | | | 400 | | | | | | 24 | |
| | | | |
Konica Minolta, Inc. | | | | | 7,000 | | | | | | 27 | |
| | | | |
Macnica Fuji Electronics Holdings, Inc. | | | | | 1,100 | | | | | | 22 | |
| | | | |
Maxell Holdings Ltd. | | | | | 1,800 | | | | | | 23 | |
| | | | |
Mixi, Inc. | | | | | 800 | | | | | | 20 | |
| | | | |
Murata Manufacturing Co. Ltd. | | | | | 3,700 | | | | | | 335 | |
| | | | |
NEC Corp. | | | | | 4,700 | | | | | | 252 | |
| | | | |
NET One Systems Co. Ltd. | | | | | 1,100 | | | | | | 39 | |
| | | | |
Nexon Co. Ltd. | | | | | 1,700 | | | | | | 52 | |
| | | | |
Nihon Unisys Ltd. | | | | | 1,200 | | | | | | 47 | |
| | | | |
Nomura Research Institute Ltd. | | | | | 2,600 | | | | | | 93 | |
| | | | |
NSD Co. Ltd. | | | | | 1,200 | | | | | | 26 | |
| | | | |
Obic Co. Ltd. | | | | | 300 | | | | | | 60 | |
| | | | |
Omron Corp. | | | | | 2,500 | | | | | | 223 | |
| | | | |
Oracle Corp. Japan | | | | | 200 | | | | | | 26 | |
| | | | |
Otsuka Corp. | | | | | 500 | | | | | | 26 | |
| | | | |
Renesas Electronics Corp. (a) | | | | | 1,400 | | | | | | 15 | |
| | | | |
Ricoh Co. Ltd. | | | | | 4,800 | | | | | | 32 | |
| | | | |
Ryoyo Electro Corp. | | | | | 900 | | | | | | 28 | |
| | | | | | |
| 38 | | PIMCO EQUITY SERIES | | | See Accompanying Notes | |
| | | | | | | | |
| | | | | | December 31, 2020 | | (Unaudited) |
| | | | | | | | | | | | |
| | | | | SHARES | | | | | MARKET
VALUE
(000S) | |
| | | | |
SCREEN Holdings Co. Ltd. | | | | | 200 | | | $ | | | 15 | |
| | | | |
SCSK Corp. | | | | | 200 | | | | | | 11 | |
| | | | |
Seiko Epson Corp. | | | | | 2,000 | | | | | | 30 | |
| | | | |
Shinko Electric Industries Co. Ltd. | | | | | 2,200 | | | | | | 50 | |
| | | | |
SUMCO Corp. | | | | | 1,300 | | | | | | 29 | |
| | | | |
Taiyo Yuden Co. Ltd. | | | | | 200 | | | | | | 9 | |
| | | | |
TDK Corp. | | | | | 300 | | | | | | 45 | |
| | | | |
TIS, Inc. | | | | | 2,500 | | | | | | 51 | |
| | | | |
Toho Co. Ltd. | | | | | 900 | | | | | | 38 | |
| | | | |
Tokyo Electron Ltd. | | | | | 800 | | | | | | 299 | |
| | | | |
Tokyo Seimitsu Co. Ltd. | | | | | 200 | | | | | | 9 | |
| | | | |
Toshiba TEC Corp. | | | | | 200 | | | | | | 7 | |
| | | | |
Trend Micro, Inc. | | | | | 200 | | | | | | 12 | |
| | | | |
Ulvac, Inc. | | | | | 500 | | | | | | 21 | |
| | | | |
Yaskawa Electric Corp. | | | | | 1,300 | | | | | | 65 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 3,367 | |
| | | | | | | | | | | | |
| |
| MATERIALS 1.9% | |
| | | | |
Asahi Holdings, Inc. | | | | | 700 | | | | | | 25 | |
| | | | |
Daicel Corp. | | | | | 2,500 | | | | | | 18 | |
| | | | |
DIC Corp. | | | | | 1,000 | | | | | | 25 | |
| | | | |
Dowa Holdings Co. Ltd. | | | | | 200 | | | | | | 7 | |
| | | | |
FP Corp. | | | | | 200 | | | | | | 8 | |
| | | | |
Hitachi Metals Ltd. | | | | | 3,400 | | | | | | 52 | |
| | | | |
JFE Holdings, Inc. | | | | | 5,300 | | | | | | 51 | |
| | | | |
JSR Corp. | | | | | 1,100 | | | | | | 31 | |
| | | | |
Kobe Steel Ltd. (a) | | | | | 8,800 | | | | | | 47 | |
| | | | |
Mitsubishi Chemical Holdings Corp. | | | | | 3,300 | | | | | | 20 | |
| | | | |
Mitsubishi Materials Corp. | | | | | 800 | | | | | | 17 | |
| | | | |
Mitsui Chemicals, Inc. | | | | | 2,000 | | | | | | 59 | |
| | | | |
Nippon Paint Holdings Co. Ltd. | | | | | 1,300 | | | | | | 143 | |
| | | | |
Nippon Paper Industries Co. Ltd. ‘L’ | | | | | 1,600 | | | | | | 19 | |
| | | | |
Nippon Steel Corp. | | | | | 5,600 | | | | | | 72 | |
| | | | |
Nissan Chemical Corp. | | | | | 600 | | | | | | 38 | |
| | | | |
Nitto Denko Corp. | | | | | 1,300 | | | | | | 117 | |
| | | | |
Oji Holdings Corp. | | | | | 9,300 | | | | | | 53 | |
| | | | |
Osaka Soda Co. Ltd. | | | | | 1,000 | | | | | | 26 | |
| | | | |
Rengo Co. Ltd. | | | | | 3,200 | | | | | | 27 | |
| | | | |
Shin-Etsu Chemical Co. Ltd. | | | | | 1,300 | | | | | | 228 | |
| | | | |
Sumitomo Chemical Co. Ltd. | | | | | 13,200 | | | | | | 53 | |
| | | | |
Sumitomo Osaka Cement Co. Ltd. | | | | | 800 | | | | | | 23 | |
| | | | |
Tokuyama Corp. | | | | | 1,100 | | | | | | 25 | |
| | | | |
Tokyo Ohka Kogyo Co. Ltd. | | | | | 300 | | | | | | 21 | |
| | | | |
Tokyo Steel Manufacturing Co. Ltd. | | | | | 2,500 | | | | | | 16 | |
| | | | |
Topy Industries Ltd. (a) | | | | | 2,300 | | | | | | 26 | |
| | | | |
Toray Industries, Inc. | | | | | 7,200 | | | | | | 43 | |
| | | | |
Tosoh Corp. | | | | | 2,100 | | | | | | 33 | |
| | | | |
Toyo Seikan Group Holdings Ltd. | | | | | 1,200 | | | | | | 13 | |
| | | | |
UACJ Corp. | | | | | 1,200 | | | | | | 22 | |
| | | | |
Ube Industries Ltd. | | | | | 900 | | | | | | 16 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 1,374 | |
| | | | | | | | | | | | |
| |
| REAL ESTATE 0.1% | |
| | | | |
Daito Trust Construction Co. Ltd. | | | | | 200 | | | | | | 19 | |
| | | | |
Daiwa House Industry Co. Ltd. | | | | | 1,400 | | | | | | 41 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 60 | |
| | | | | | | | | | | | |
| |
| UTILITIES 0.7% | |
| | | | |
Chubu Electric Power Co., Inc. | | | | | 8,100 | | | | | | 98 | |
| | | | |
Chugoku Electric Power Co., Inc. | | | | | 3,300 | | | | | | 39 | |
| | | | |
Electric Power Development Co. Ltd. ‘C’ | | | | | 1,400 | | | | | | 19 | |
| | | | |
Hokuriku Electric Power Co. | | | | | 2,800 | | | | | | 18 | |
| | | | | | | | | | | | |
| | | | | SHARES | | | | | MARKET
VALUE
(000S) | |
| | | | |
Kansai Electric Power Co., Inc. | | | | | 1,700 | | | $ | | | 16 | |
| | | | |
Kyushu Electric Power Co., Inc. | | | | | 6,100 | | | | | | 53 | |
| | | | |
Osaka Gas Co. Ltd. | | | | | 3,800 | | | | | | 78 | |
| | | | |
Shizuoka Gas Co. Ltd. | | | | | 2,400 | | | | | | 24 | |
| | | | |
Toho Gas Co. Ltd. | | | | | 600 | | | | | | 40 | |
| | | | |
Tokyo Electric Power Co. Holdings, Inc. (a) | | | | | 11,500 | | | | | | 30 | |
| | | | |
Tokyo Gas Co. Ltd. | | | | | 4,400 | | | | | | 102 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 517 | |
| | | | | | | | | | | | |
Total Japan | | | | | | | | | | | 19,092 | |
| | | | | | | | | | | | |
| |
| JORDAN 0.0% | |
| |
| HEALTH CARE 0.0% | |
| | | | |
Hikma Pharmaceuticals PLC | | | | | 773 | | | | | | 26 | |
| | | | | | | | | | | | |
Total Jordan | | | | | | | | | | | 26 | |
| | | | | | | | | | | | |
| |
| LUXEMBOURG 0.4% | |
| |
| COMMUNICATION SERVICES 0.0% | |
| | | | |
SES S.A. | | | | | 1,634 | | | | | | 15 | |
| | | | | | | | | | | | |
| |
| HEALTH CARE 0.1% | |
| | | | |
Eurofins Scientific SE (a) | | | | | 380 | | | | | | 32 | |
| | | | | | | | | | | | |
| |
| MATERIALS 0.2% | |
| | | | |
APERAM S.A. | | | | | 648 | | | | | | 27 | |
| | | | |
ArcelorMittal S.A. (a) | | | | | 5,653 | | | | | | 129 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 156 | |
| | | | | | | | | | | | |
| |
| REAL ESTATE 0.1% | |
| | | | |
Aroundtown S.A. | | | | | 3,677 | | | | | | 28 | |
| | | | |
Grand City Properties S.A. | | | | | 856 | | | | | | 22 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 50 | |
| | | | | | | | | | | | |
Total Luxembourg | | | | | | | | | | | 253 | |
| | | | | | | | | | | | |
| |
| MACAU 0.1% | |
| |
| CONSUMER DISCRETIONARY 0.1% | |
| | | | |
Sands China Ltd. | | | | | 8,600 | | | | | | 38 | |
| | | | |
Wynn Macau Ltd. | | | | | 8,000 | | | | | | 13 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 51 | |
| | | | | | | | | | | | |
Total Macau | | | | | | | | | | | 51 | |
| | | | | | | | | | | | |
| |
| MONACO 0.1% | |
| |
| MATERIALS 0.1% | |
| | | | |
Endeavour Mining Corp. (a) | | | | | 1,841 | | | | | | 43 | |
| | | | | | | | | | | | |
Total Monaco | | | | | | | | | | | 43 | |
| | | | | | | | | | | | |
| |
| NETHERLANDS 3.7% | |
| |
| COMMUNICATION SERVICES 0.1% | |
| | | | |
Koninklijke KPN NV | | | | | 26,061 | | | | | | 79 | |
| | | | |
VEON Ltd. ADR | | | | | 9,081 | | | | | | 14 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 93 | |
| | | | | | | | | | | | |
| |
| CONSUMER DISCRETIONARY 0.1% | |
| | | | |
GrandVision NV (a) | | | | | 690 | | | | | | 22 | |
| | | | |
Prosus NV | | | | | 659 | | | | | | 71 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 93 | |
| | | | | | | | | | | | |
| |
| | | | | | | | | | | | |
| | | | | SHARES | | | | | MARKET
VALUE
(000S) | |
| CONSUMER STAPLES 0.6% | |
| | | | |
Heineken Holding NV | | | | | 699 | | | $ | | | 66 | |
| | | | |
Heineken NV | | | | | 519 | | | | | | 58 | |
| | | | |
Koninklijke Ahold Delhaize NV | | | | | 11,011 | | | | | | 310 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 434 | |
| | | | | | | | | | | | |
| |
| ENERGY 0.2% | |
| | | | |
Fugro NV (a) | | | | | 2,481 | | | | | | 23 | |
| | | | |
Koninklijke Vopak NV | | | | | 676 | | | | | | 36 | |
| | | | |
Royal Dutch Shell PLC ‘A’ | | | | | 5,156 | | | | | | 90 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 149 | |
| | | | | | | | | | | | |
| |
| FINANCIALS 0.3% | |
| | | | |
Aegon NV | | | | | 9,688 | | | | | | 39 | |
| | | | |
ASR Nederland NV | | | | | 598 | | | | | | 24 | |
| | | | |
Euronext NV | | | | | 354 | | | | | | 39 | |
| | | | |
ING Groep NV | | | | | 9,311 | | | | | | 86 | |
| | | | |
NN Group NV | | | | | 1,395 | | | | | | 60 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 248 | |
| | | | | | | | | | | | |
| |
| HEALTH CARE 0.1% | |
| | | | |
Qiagen NV (a) | | | | | 730 | | | | | | 39 | |
| | | | | | | | | | | | |
| |
| INDUSTRIALS 0.5% | |
| | | | |
Arcadis NV (a) | | | | | 1,032 | | | | | | 34 | |
| | | | |
IMCD NV | | | | | 176 | | | | | | 22 | |
| | | | |
Koninklijke BAM Groep NV (a) | | | | | 6,685 | | | | | | 14 | |
| | | | |
PostNL NV | | | | | 9,322 | | | | | | 32 | |
| | | | |
Signify NV (a) | | | | | 2,518 | | | | | | 106 | |
| | | | |
TKH Group NV | | | | | 405 | | | | | | 19 | |
| | | | |
Wolters Kluwer NV | | | | | 1,596 | | | | | | 135 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 362 | |
| | | | | | | | | | | | |
| |
| INFORMATION TECHNOLOGY 1.3% | |
| | | | |
ASM International NV | | | | | 403 | | | | | | 88 | |
| | | | |
ASML Holding NV | | | | | 1,343 | | | | | | 650 | |
| | | | |
BE Semiconductor Industries NV | | | | | 543 | | | | | | 32 | |
| | | | |
NXP Semiconductors NV | | | | | 1,080 | | | | | | 172 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 942 | |
| | | | | | | | | | | | |
| |
| MATERIALS 0.5% | |
| | | | |
Akzo Nobel NV | | | | | 1,268 | | | | | | 136 | |
| | | | |
Corbion NV | | | | | 555 | | | | | | 31 | |
| | | | |
Koninklijke DSM NV | | | | | 1,041 | | | | | | 179 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 346 | |
| | | | | | | | | | | | |
Total Netherlands | | | | | | | | | | | 2,706 | |
| | | | | | | | | | | | |
| |
| NEW ZEALAND 0.5% | |
| |
| COMMUNICATION SERVICES 0.1% | |
| | | | |
Chorus Ltd. | | | | | 3,417 | | | | | | 20 | |
| | | | |
Spark New Zealand Ltd. | | | | | 17,215 | | | | | | 58 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 78 | |
| | | | | | | | | | | | |
| |
| ENERGY 0.1% | |
| | | | |
Z Energy Ltd. (a) | | | | | 15,429 | | | | | | 35 | |
| | | | | | | | | | | | |
| |
| HEALTH CARE 0.1% | |
| | | | |
Fisher & Paykel Healthcare Corp. Ltd. ‘C’ | | | | | 2,301 | | | | | | 55 | |
| | | | | | | | | | | | |
| |
| | | | | | | | | | | | |
| See Accompanying Notes | | | SEMIANNUAL REPORT | | | | | | | DECEMBER 31, 2020 | | | 39 |
| | | | | | | | |
| Schedule of Investments | | PIMCO RAFI Dynamic Multi-Factor International Equity ETF | | (Cont.) | | | | |
| | | | | | | | | | | | |
| | | | | SHARES | | | | | MARKET
VALUE
(000S) | |
| INDUSTRIALS 0.0% | |
| | | | |
Air New Zealand Ltd. | | | | | 21,618 | | | $ | | | 28 | |
| | | | | | | | | | | | |
| |
| MATERIALS 0.1% | |
| | | | |
Fletcher Building Ltd. | | | | | 8,752 | | | | | | 37 | |
| | | | | | | | | | | | |
| |
| UTILITIES 0.1% | |
| | | | |
Contact Energy Ltd. | | | | | 4,255 | | | | | | 27 | |
| | | | |
Genesis Energy Ltd. | | | | | 10,565 | | | | | | 28 | |
| | | | |
Meridian Energy Ltd. | | | | | 6,741 | | | | | | 36 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 91 | |
| | | | | | | | | | | | |
Total New Zealand | | | | | | | | | | | 324 | |
| | | | | | | | | | | | |
| |
| NORWAY 0.9% | |
| |
| COMMUNICATION SERVICES 0.2% | |
| | | | |
Adevinta ASA (a) | | | | | 1,115 | | | | | | 18 | |
| | | | |
Schibsted ASA ‘A’ (a) | | | | | 440 | | | | | | 19 | |
| | | | |
Telenor ASA | | | | | 7,709 | | | | | | 131 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 168 | |
| | | | | | | | | | | | |
| |
| CONSUMER STAPLES 0.3% | |
| | | | |
Austevoll Seafood ASA | | | | | 1,770 | | | | | | 18 | |
| | | | |
Leroy Seafood Group ASA | | | | | 3,215 | | | | | | 23 | |
| | | | |
Mowi ASA | | | | | 2,693 | | | | | | 60 | |
| | | | |
Orkla ASA | | | | | 5,289 | | | | | | 54 | |
| | | | |
Salmar ASA | | | | | 631 | | | | | | 37 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 192 | |
| | | | | | | | | | | | |
| |
| ENERGY 0.1% | |
| | | | |
BW Offshore Ltd. | | | | | 3,335 | | | | | | 15 | |
| | | | |
Equinor ASA | | | | | 4,617 | | | | | | 78 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 93 | |
| | | | | | | | | | | | |
| |
| FINANCIALS 0.1% | |
| | | | |
Gjensidige Forsikring ASA | | | | | 1,510 | | | | | | 34 | |
| | | | |
SpareBank 1 SR-Bank ASA (a) | | | | | 2,201 | | | | | | 23 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 57 | |
| | | | | | | | | | | | |
| |
| INDUSTRIALS 0.1% | |
| | | | |
Tomra Systems ASA | | | | | 1,183 | | | | | | 58 | |
| | | | | | | | | | | | |
| |
| MATERIALS 0.1% | |
| | | | |
Yara International ASA | | | | | 1,984 | | | | | | 82 | |
| | | | | | | | | | | | |
| |
| REAL ESTATE 0.0% | |
| | | | |
Entra ASA | | | | | 1,445 | | | | | | 33 | |
| | | | | | | | | | | | |
Total Norway | | | | | | | | | | | 683 | |
| | | | | | | | | | | | |
| |
| PORTUGAL 0.5% | |
| |
| CONSUMER STAPLES 0.1% | |
| | | | |
Jeronimo Martins SGPS S.A. | | | | | 2,854 | | | | | | 48 | |
| | | | |
Sonae SGPS S.A. | | | | | 19,051 | | | | | | 15 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 63 | |
| | | | | | | | | | | | |
| |
| MATERIALS 0.0% | |
| | | | |
Semapa-Sociedade de Investimento e Gestao | | | | | 1,989 | | | | | | 22 | |
| | | | | | | | | | | | |
| |
| | | | | | | | | | | | |
| | | | | SHARES | | | | | MARKET
VALUE
(000S) | |
| UTILITIES 0.4% | |
| | | | |
EDP - Energias de Portugal S.A. | | | | | 45,087 | | | $ | | | 283 | |
| | | | |
REN - Redes Energeticas Nacionais SGPS S.A. | | | | | 6,510 | | | | | | 19 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 302 | |
| | | | | | | | | | | | |
Total Portugal | | | | | | | | | | | 387 | |
| | | | | | | | | | | | |
| |
| SINGAPORE 0.9% | |
| |
| COMMUNICATION SERVICES 0.2% | |
| | | | |
NetLink NBN Trust | | | | | 26,300 | | | | | | 19 | |
| | | | |
Singapore Press Holdings Ltd. | | | | | 16,200 | | | | | | 14 | |
| | | | |
Singapore Telecommunications Ltd. | | | | | 47,100 | | | | | | 82 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 115 | |
| | | | | | | | | | | | |
| |
| CONSUMER STAPLES 0.2% | |
| | | | |
Golden Agri-Resources Ltd. | | | | | 308,500 | | | | | | 37 | |
| | | | |
Wilmar International Ltd. | | | | | 38,700 | | | | | | 137 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 174 | |
| | | | | | | | | | | | |
| |
| ENERGY 0.0% | |
| | | | |
BW LPG Ltd. | | | | | 4,501 | | | | | | 31 | |
| | | | | | | | | | | | |
| |
| FINANCIALS 0.2% | |
| | | | |
DBS Group Holdings Ltd. | | | | | 3,600 | | | | | | 68 | |
| | | | |
Oversea-Chinese Banking Corp. Ltd. | | | | | 3,700 | | | | | | 28 | |
| | | | |
Singapore Exchange Ltd. | | | | | 3,600 | | | | | | 25 | |
| | | | |
United Overseas Bank Ltd. | | | | | 2,500 | | | | | | 43 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 164 | |
| | | | | | | | | | | | |
| |
| INDUSTRIALS 0.2% | |
| | | | |
ComfortDelGro Corp. Ltd. | | | | | 13,500 | | | | | | 17 | |
| | | | |
Keppel Corp. Ltd. | | | | | 9,600 | | | | | | 39 | |
| | | | |
SATS Ltd. | | | | | 2,000 | | | | | | 6 | |
| | | | |
Sembcorp Industries Ltd. | | | | | 12,500 | | | | | | 17 | |
| | | | |
Singapore Airlines Ltd. | | | | | 8,600 | | | | | | 28 | |
| | | | |
Singapore Post Ltd. | | | | | 29,900 | | | | | | 16 | |
| | | | |
Singapore Technologies Engineering Ltd. | | | | | 12,800 | | | | | | 37 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 160 | |
| | | | | | | | | | | | |
| |
| INFORMATION TECHNOLOGY 0.1% | |
| | | | |
Venture Corp. Ltd. | | | | | 2,400 | | | | | | 35 | |
| | | | | | | | | | | | |
Total Singapore | | | | | | | | | | | 679 | |
| | | | | | | | | | | | |
| |
| SOUTH AFRICA 0.0% | |
| |
| HEALTH CARE 0.0% | |
| | | | |
Mediclinic International PLC | | | | | 3,789 | | | | | | 15 | |
| | | | | | | | | | | | |
Total South Africa | | | | | | | | | | | 15 | |
| | | | | | | | | | | | |
| |
| SPAIN 2.7% | |
| |
| COMMUNICATION SERVICES 0.2% | |
| | | | |
Mediaset Espana Comunicacion S.A. (a) | | | | | 5,851 | | | | | | 30 | |
| | | | |
Telefonica S.A. (c) | | | | | 26,867 | | | | | | 107 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 137 | |
| | | | | | | | | | | | |
| |
| CONSUMER DISCRETIONARY 0.1% | |
| | | | |
Industria de Diseno Textil S.A. | | | | | 3,296 | | | | | | 105 | |
| | | | | | | | | | | | |
| |
| | | | | | | | | | | | |
| | | | | SHARES | | | | | MARKET
VALUE
(000S) | |
| CONSUMER STAPLES 0.1% | |
| | | | |
Ebro Foods S.A. | | | | | 875 | | | $ | | | 20 | |
| | | | |
Viscofan S.A. | | | | | 527 | | | | | | 38 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 58 | |
| | | | | | | | | | | | |
| |
| ENERGY 0.2% | |
| | | | |
Repsol S.A. | | | | | 13,103 | | | | | | 132 | |
| | | | | | | | | | | | |
| |
| FINANCIALS 0.4% | |
| | | | |
Banco Bilbao Vizcaya Argentaria S.A. | | | | | 8,096 | | | | | | 40 | |
| | | | |
Banco de Sabadell S.A. | | | | | 53,147 | | | | | | 23 | |
| | | | |
Banco Santander S.A. | | | | | 55,707 | | | | | | 174 | |
| | | | |
Bankia S.A. | | | | | 14,087 | | | | | | 25 | |
| | | | |
Liberbank S.A. (a) | | | | | 60,269 | | | | | | 19 | |
| | | | |
Mapfre S.A. | | | | | 6,845 | | | | | | 13 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 294 | |
| | | | | | | | | | | | |
| |
| HEALTH CARE 0.1% | |
| | | | |
Grifols S.A. | | | | | 1,224 | | | | | | 36 | |
| | | | | | | | | | | | |
| |
| INDUSTRIALS 0.3% | |
| | | | |
ACS Actividades de Construccion Y Servicios S.A. | | | | | 1,418 | | | | | | 47 | |
| | | | |
Aena SME S.A. (a) | | | | | 304 | | | | | | 53 | |
| | | | |
Cia de Distribucion Integral Logista Holdings S.A. | | | | | 930 | | | | | | 18 | |
| | | | |
Ferrovial S.A. | | | | | 2,196 | | | | | | 61 | |
| | | | |
Sacyr S.A. | | | | | 5,769 | | | | | | 14 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 193 | |
| | | | | | | | | | | | |
| |
| INFORMATION TECHNOLOGY 0.1% | |
| | | | |
Amadeus IT Group S.A. | | | | | 1,037 | | | | | | 76 | |
| | | | | | | | | | | | |
| |
| MATERIALS 0.0% | |
| | | | |
Acerinox S.A. | | | | | 2,750 | | | | | | 30 | |
| | | | | | | | | | | | |
| |
| UTILITIES 1.2% | |
| | | | |
Acciona S.A. | | | | | 251 | | | | | | 36 | |
| | | | |
Endesa S.A. | | | | | 7,194 | | | | | | 197 | |
| | | | |
Iberdrola S.A. | | | | | 33,197 | | | | | | 477 | |
| | | | |
Naturgy Energy Group S.A. | | | | | 6,175 | | | | | | 144 | |
| | | | |
Red Electrica Corp. S.A. | | | | | 2,696 | | | | | | 55 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 909 | |
| | | | | | | | | | | | |
Total Spain | | | | | | | | | | | 1,970 | |
| | | | | | | | | | | | |
| |
| SWEDEN 3.3% | |
| |
| COMMUNICATION SERVICES 0.4% | |
| | | | |
Spotify Technology S.A. (a) | | | | | 355 | | | | | | 112 | |
| | | | |
Tele2 AB ‘B’ | | | | | 3,631 | | | | | | 48 | |
| | | | |
Telia Co. AB | | | | | 29,467 | | | | | | 121 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 281 | |
| | | | | | | | | | | | |
| |
| CONSUMER DISCRETIONARY 0.6% | |
| | | | |
Autoliv, Inc. | | | | | 700 | | | | | | 64 | |
| | | | |
Bilia AB ‘A’ (a) | | | | | 1,980 | | | | | | 24 | |
| | | | |
Electrolux AB ‘B’ | | | | | 3,085 | | | | | | 72 | |
| | | | |
Hennes & Mauritz AB ‘B’ (a) | | | | | 9,434 | | | | | | 198 | |
| | | | |
JM AB | | | | | 1,716 | | | | | | 61 | |
| | | | |
Nobia AB (a) | | | | | 3,812 | | | | | | 31 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 450 | |
| | | | | | | | | | | | |
| |
| | | | | | |
| 40 | | PIMCO EQUITY SERIES | | | See Accompanying Notes | |
| | | | | | | | |
| | | | | | December 31, 2020 | | (Unaudited) |
| | | | | | | | | | | | |
| | | | | SHARES | | | | | MARKET
VALUE
(000S) | |
| CONSUMER STAPLES 0.3% | |
| | | | |
AAK AB | | | | | 1,136 | | | $ | | | 23 | |
| | | | |
Axfood AB | | | | | 1,573 | | | | | | 37 | |
| | | | |
Essity AB ‘B’ | | | | | 930 | | | | | | 30 | |
| | | | |
ICA Gruppen AB | | | | | 457 | | | | | | 23 | |
| | | | |
Swedish Match AB | | | | | 1,292 | | | | | | 100 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 213 | |
| | | | | | | | | | | | |
| |
| FINANCIALS 0.2% | |
| | | | |
Ratos AB ‘B’ | | | | | 6,279 | | | | | | 29 | |
| | | | |
Svenska Handelsbanken AB ‘A’ (a) | | | | | 5,678 | | | | | | 57 | |
| | | | |
Swedbank AB ‘A’ (a) | | | | | 3,404 | | | | | | 60 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 146 | |
| | | | | | | | | | | | |
| |
| HEALTH CARE 0.0% | |
| | | | |
Getinge AB ‘B’ | | | | | 1,222 | | | | | | 29 | |
| | | | | | | | | | | | |
| |
| INDUSTRIALS 1.4% | |
| | | | |
Assa Abloy AB ‘B’ | | | | | 2,676 | | | | | | 66 | |
| | | | |
Atlas Copco AB ‘A’ | | | | | 4,458 | | | | | | 229 | |
| | | | |
Epiroc AB | | | | | 6,696 | | | | | | 122 | |
| | | | |
Indutrade AB (a) | | | | | 1,809 | | | | | | 39 | |
| | | | |
Intrum AB | | | | | 616 | | | | | | 16 | |
| | | | |
Loomis AB | | | | | 708 | | | | | | 19 | |
| | | | |
NCC AB ‘B’ | | | | | 1,737 | | | | | | 31 | |
| | | | |
Nibe Industrier AB ‘B’ | | | | | 1,251 | | | | | | 41 | |
| | | | |
Peab AB (a) | | | | | 2,137 | | | | | | 23 | |
| | | | |
Sandvik AB (a) | | | | | 5,780 | | | | | | 143 | |
| | | | |
SKF AB ‘B’ | | | | | 3,697 | | | | | | 96 | |
| | | | |
Volvo AB ‘B’ (a) | | | | | 8,605 | | | | | | 204 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 1,029 | |
| | | | | | | | | | | | |
| |
| INFORMATION TECHNOLOGY 0.2% | |
| | | | |
Hexagon AB ‘B’ | | | | | 384 | | | | | | 35 | |
| | | | |
Telefonaktiebolaget LM Ericsson ‘B’ | | | | | 8,309 | | | | | | 99 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 134 | |
| | | | | | | | | | | | |
| |
| MATERIALS 0.2% | |
| | | | |
BillerudKorsnas AB | | | | | 2,059 | | | | | | 36 | |
| | | | |
Boliden AB | | | | | 652 | | | | | | 23 | |
| | | | |
Hexpol AB | | | | | 2,402 | | | | | | 26 | |
| | | | |
Svenska Cellulosa AB S.C.A. ‘B’ (a) | | | | | 2,099 | | | | | | 37 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 122 | |
| | | | | | | | | | | | |
| |
| REAL ESTATE 0.0% | |
| | | | |
Annehem Fastigheter AB (a) | | | | | 427 | | | | | | 2 | |
| | | | |
Castellum AB | | | | | 1,066 | | | | | | 27 | |
| | | | | | | | | �� | | | |
| | | | | | | | | | | 29 | |
| | | | | | | | | | | | |
Total Sweden | | | | | | | | | | | 2,433 | |
| | | | | | | | | | | | |
| |
| SWITZERLAND 7.3% | |
| |
| COMMUNICATION SERVICES 0.2% | |
| | | | |
Swisscom AG | | | | | 205 | | | | | | 110 | |
| | | | | | | | | | | | |
| |
| CONSUMER DISCRETIONARY 0.4% | |
| | | | |
Cie Financiere Richemont S.A. | | | | | 1,902 | | | | | | 172 | |
| | | | |
Forbo Holding AG | | | | | 13 | | | | | | 22 | |
| | | | |
Garmin Ltd. | | | | | 807 | | | | | | 97 | |
| | | | |
Valora Holding AG | | | | | 107 | | | | | | 21 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 312 | |
| | | | | | | | | | | | |
| | | | | | | | | | | | |
| | | | | SHARES | | | | | MARKET
VALUE
(000S) | |
| CONSUMER STAPLES 1.0% | |
| | | | |
Aryzta AG (a) | | | | | 22,078 | | | $ | | | 17 | |
| | | | |
Barry Callebaut AG | | | | | 4 | | | | | | 10 | |
| | | | |
Chocoladefabriken Lindt & Spruengli AG | | | | | 6 | | | | | | 58 | |
| | | | |
Coca-Cola HBC AG | | | | | 767 | | | | | | 25 | |
| | | | |
Emmi AG | | | | | 24 | | | | | | 25 | |
| | | | |
Nestle S.A. | | | | | 4,896 | | | | | | 579 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 714 | |
| | | | | | | | | | | | |
| |
| FINANCIALS 1.3% | |
| | | | |
Baloise Holding AG | | | | | 268 | | | | | | 48 | |
| | | | |
Banque Cantonale Vaudoise | | | | | 363 | | | | | | 40 | |
| | | | |
Cembra Money Bank AG | | | | | 334 | | | | | | 41 | |
| | | | |
St Galler Kantonalbank AG | | | | | 39 | | | | | | 18 | |
| | | | |
Swiss Life Holding AG | | | | | 148 | | | | | | 69 | |
| | | | |
Swiss Re AG | | | | | 2,000 | | | | | | 188 | |
| | | | |
UBS Group AG | | | | | 5,682 | | | | | | 80 | |
| | | | |
Valiant Holding AG | | | | | 230 | | | | | | 22 | |
| | | | |
Zurich Insurance Group AG | | | | | 1,042 | | | | | | 439 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 945 | |
| | | | | | | | | | | | |
| |
| HEALTH CARE 1.3% | |
| | | | |
Galenica AG | | | | | 324 | | | | | | 22 | |
| | | | |
Lonza Group AG | | | | | 144 | | | | | | 93 | |
| | | | |
Roche Holding AG | | | | | 2,161 | | | | | | 753 | |
| | | | |
Sonova Holding AG | | | | | 186 | | | | | | 48 | |
| | | | |
Straumann Holding AG | | | | | 28 | | | | | | 33 | |
| | | | |
Vifor Pharma AG | | | | | 194 | | | | | | 30 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 979 | |
| | | | | | | | | | | | |
| |
| INDUSTRIALS 1.4% | |
| | | | |
ABB Ltd. | | | | | 12,455 | | | | | | 349 | |
| | | | |
Adecco Group AG | | | | | 1,631 | | | | | | 109 | |
| | | | |
Belimo Holding AG | | | | | 2 | | | | | | 17 | |
| | | | |
Bucher Industries AG | | | | | 62 | | | | | | 28 | |
| | | | |
Conzzeta AG | | | | | 18 | | | | | | 22 | |
| | | | |
DKSH Holding AG | | | | | 278 | | | | | | 21 | |
| | | | |
Flughafen Zurich AG (a) | | | | | 122 | | | | | | 22 | |
| | | | |
Geberit AG | | | | | 131 | | | | | | 82 | |
| | | | |
Georg Fischer AG | | | | | 26 | | | | | | 34 | |
| | | | |
Huber + Suhner AG | | | | | 289 | | | | | | 23 | |
| | | | |
Kuehne + Nagel International AG | | | | | 557 | | | | | | 126 | |
| | | | |
Schindler Holding AG | | | | | 248 | | | | | | 67 | |
| | | | |
SGS S.A. | | | | | 25 | | | | | | 75 | |
| | | | |
Sulzer AG | | | | | 200 | | | | | | 21 | |
| | | | |
Wizz Air Holdings PLC (a) | | | | | 415 | | | | | | 26 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 1,022 | |
| | | | | | | | | | | | |
| |
| INFORMATION TECHNOLOGY 0.5% | |
| | | | |
ALSO Holding AG | | | | | 85 | | | | | | 24 | |
| | | | |
Landis + Gyr Group AG | | | | | 185 | | | | | | 14 | |
| | | | |
Logitech International S.A. | | | | | 1,048 | | | | | | 102 | |
| | | | |
STMicroelectronics NV | | | | | 1,365 | | | | | | 51 | |
| | | | |
TE Connectivity Ltd. | | | | | 1,453 | | | | | | 176 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 367 | |
| | | | | | | | | | | | |
| |
| MATERIALS 1.0% | |
| | | | |
EMS-Chemie Holding AG | | | | | 37 | | | | | | 36 | |
| | | | |
Ferrexpo PLC | | | | | 7,898 | | | | | | 30 | |
| | | | |
Givaudan S.A. | | | | | 50 | | | | | | 212 | |
| | | | |
Glencore PLC (a) | | | | | 75,366 | | | | | | 239 | |
| | | | | | | | | | | | |
| | | | | SHARES | | | | | MARKET
VALUE
(000S) | |
| | | | |
Sika AG | | | | | 642 | | | $ | | | 175 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 692 | |
| | | | | | | | | | | | |
| |
| REAL ESTATE 0.2% | |
| | | | |
Allreal Holding AG | | | | | 100 | | | | | | 23 | |
| | | | |
PSP Swiss Property AG | | | | | 339 | | | | | | 45 | |
| | | | |
Swiss Prime Site AG | | | | | 602 | | | | | | 59 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 127 | |
| | | | | | | | | | | | |
| |
| UTILITIES 0.0% | |
| | | | |
BKW AG | | | | | 226 | | | | | | 26 | |
| | | | | | | | | | | | |
Total Switzerland | | | | | | | | | | | 5,294 | |
| | | | | | | | | | | | |
| |
| UNITED KINGDOM 14.1% | |
| |
| COMMUNICATION SERVICES 0.7% | |
| | | | |
BT Group PLC | | | | | 15,595 | | | | | | 28 | |
| | | | |
Daily Mail & General Trust PLC | | | | | 2,216 | | | | | | 23 | |
| | | | |
Euromoney Institutional Investor PLC | | | | | 721 | | | | | | 11 | |
| | | | |
Pearson PLC | | | | | 12,578 | | | | | | 115 | |
| | | | |
Vodafone Group PLC | | | | | 176,046 | | | | | | 289 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 466 | |
| | | | | | | | | | | | |
| |
| CONSUMER DISCRETIONARY 1.8% | |
| | | | |
ASOS PLC (a) | | | | | 284 | | | | | | 18 | |
| | | | |
B&M European Value Retail S.A. | | | | | 6,994 | | | | | | 49 | |
| | | | |
Barratt Developments PLC | | | | | 3,187 | | | | | | 29 | |
| | | | |
Bellway PLC | | | | | 1,098 | | | | | | 44 | |
| | | | |
Berkeley Group Holdings PLC | | | | | 787 | | | | | | 51 | |
| | | | |
Burberry Group PLC | | | | | 1,012 | | | | | | 25 | |
| | | | |
Compass Group PLC | | | | | 7,112 | | | | | | 133 | |
| | | | |
Crest Nicholson Holdings PLC | | | | | 4,447 | | | | | | 20 | |
| | | | |
Dixons Carphone PLC | | | | | 12,055 | | | | | | 19 | |
| | | | |
Dunelm Group PLC | | | | | 1,387 | | | | | | 23 | |
| | | | |
Fiat Chrysler Automobiles NV (a) | | | | | 5,013 | | | | | | 91 | |
| | | | |
Frasers Group PLC | | | | | 3,663 | | | | | | 23 | |
| | | | |
Greggs PLC | | | | | 1,613 | | | | | | 39 | |
| | | | |
Halfords Group PLC | | | | | 8,093 | | | | | | 30 | |
| | | | |
Inchcape PLC | | | | | 3,439 | | | | | | 30 | |
| | | | |
J D Wetherspoon PLC | | | | | 1,578 | | | | | | 24 | |
| | | | |
JD Sports Fashion PLC | | | | | 2,663 | | | | | | 31 | |
| | | | |
Kingfisher PLC | | | | | 42,972 | | | | | | 159 | |
| | | | |
Marks & Spencer Group PLC | | | | | 17,050 | | | | | | 32 | |
| | | | |
Marston’s PLC | | | | | 25,641 | | | | | | 26 | |
| | | | |
McCarthy & Stone PLC (a) | | | | | 20,061 | | | | | | 33 | |
| | | | |
Mitchells & Butlers PLC (a) | | | | | 7,578 | | | | | | 25 | |
| | | | |
Moneysupermarket.com Group PLC | | | | | 4,788 | | | | | | 17 | |
| | | | |
Next PLC | | | | | 1,158 | | | | | | 112 | |
| | | | |
Ocado Group PLC (a) | | | | | 1,570 | | | | | | 49 | |
| | | | |
Persimmon PLC | | | | | 1,966 | | | | | | 74 | |
| | | | |
Pets at Home Group PLC | | | | | 5,890 | | | | | | 34 | |
| | | | |
Taylor Wimpey PLC | | | | | 14,066 | | | | | | 32 | |
| | | | |
WH Smith PLC | | | | | 887 | | | | | | 18 | |
| | | | |
William Hill PLC (a) | | | | | 7,619 | | | | | | 28 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 1,318 | |
| | | | | | | | | | | | |
| |
| CONSUMER STAPLES 3.7% | |
| | | | |
Associated British Foods PLC | | | | | 3,254 | | | | | | 101 | |
| | | | |
Britvic PLC | | | | | 2,022 | | | | | | 23 | |
| | | | |
Cranswick PLC | | | | | 443 | | | | | | 21 | |
| | | | |
Diageo PLC | | | | | 12,175 | | | | | | 482 | |
| | | | |
Imperial Brands PLC | | | | | 9,409 | | | | | | 197 | |
| | | | | | | | | | | | |
| See Accompanying Notes | | | SEMIANNUAL REPORT | | | | | | | DECEMBER 31, 2020 | | | 41 |
| | | | | | | | |
| Schedule of Investments | | PIMCO RAFI Dynamic Multi-Factor International Equity ETF | | (Cont.) | | | | |
| | | | | | | | | | | | |
| | | | | SHARES | | | | | MARKET
VALUE
(000S) | |
| | | | |
J Sainsbury PLC | | | | | 43,210 | | | $ | | | 133 | |
| | | | |
Reckitt Benckiser Group PLC | | | | | 4,675 | | | | | | 417 | |
| | | | |
Tate & Lyle PLC | | | | | 6,343 | | | | | | 58 | |
| | | | |
Tesco PLC | | | | | 81,354 | | | | | | 257 | |
| | | | |
Unilever PLC | | | | | 14,772 | | | | | | 888 | |
| | | | |
WM Morrison Supermarkets PLC | | | | | 42,249 | | | | | | 102 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 2,679 | |
| | | | | | | | | | | | |
| |
| ENERGY 0.3% | |
| | | | |
BP PLC | | | | | 45,386 | | | | | | 157 | |
| | | | |
John Wood Group PLC | | | | | 11,029 | | | | | | 46 | |
| | | | |
Subsea 7 S.A. | | | | | 3,425 | | | | | | 35 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 238 | |
| | | | | | | | | | | | |
| |
| FINANCIALS 1.3% | |
| | | | |
3i Group PLC | | | | | 3,731 | | | | | | 59 | |
| | | | |
Admiral Group PLC | | | | | 2,162 | | | | | | 86 | |
| | | | |
Ashmore Group PLC | | | | | 5,456 | | | | | | 32 | |
| | | | |
Barclays PLC | | | | | 57,650 | | | | | | 116 | |
| | | | |
Direct Line Insurance Group PLC | | | | | 22,901 | | | | | | 100 | |
| | | | |
Hargreaves Lansdown PLC | | | | | 704 | | | | | | 15 | |
| | | | |
IG Group Holdings PLC | | | | | 4,033 | | | | | | 47 | |
| | | | |
Jupiter Fund Management PLC | | | | | 3,811 | | | | | | 15 | |
| | | | |
Lancashire Holdings Ltd. | | | | | 2,229 | | | | | | 22 | |
| | | | |
London Stock Exchange Group PLC | | | | | 1,066 | | | | | | 132 | |
| | | | |
Man Group PLC | | | | | 11,028 | | | | | | 21 | |
| | | | |
Phoenix Group Holdings PLC | | | | | 2,191 | | | | | | 21 | |
| | | | |
Provident Financial PLC (a) | | | | | 7,477 | | | | | | 31 | |
| | | | |
Prudential PLC | | | | | 4,883 | | | | | | 90 | |
| | | | |
RSA Insurance Group PLC | | | | | 4,458 | | | | | | 41 | |
| | | | |
Schroders PLC | | | | | 597 | | | | | | 27 | |
| | | | |
Standard Chartered PLC | | | | | 9,083 | | | | | | 58 | |
| | | | |
Standard Life Aberdeen PLC | | | | | 9,249 | | | | | | 35 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 948 | |
| | | | | | | | | | | | |
| |
| HEALTH CARE 1.5% | |
| | | | |
AstraZeneca PLC | | | | | 4,880 | | | | | | 487 | |
| | | | |
ConvaTec Group PLC | | | | | 8,560 | | | | | | 23 | |
| | | | |
GlaxoSmithKline PLC | | | | | 27,073 | | | | | | 495 | |
| | | | |
Smith & Nephew PLC | | | | | 4,912 | | | | | | 102 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 1,107 | |
| | | | | | | | | | | | |
| |
| INDUSTRIALS 2.1% | |
| | | | |
Aggreko PLC | | | | | 2,780 | | | | | | 24 | |
| | | | |
Ashtead Group PLC | | | | | 2,059 | | | | | | 97 | |
| | | | |
Babcock International Group PLC | | | | | 3,622 | | | | | | 14 | |
| | | | |
BAE Systems PLC | | | | | 20,927 | | | | | | 140 | |
| | | | |
Balfour Beatty PLC | | | | | 7,723 | | | | | | 29 | |
| | | | |
Bunzl PLC | | | | | 1,497 | | | | | | 50 | |
| | | | |
CNH Industrial NV (a) | | | | | 3,722 | | | | | | 47 | |
| | | | |
Diploma PLC | | | | | 852 | | | | | | 25 | |
| | | | |
easyJet PLC | | | | | 3,029 | | | | | | 34 | |
| | | | |
Ferguson PLC | | | | | 787 | | | | | | 96 | |
| | | | |
Go-Ahead Group PLC | | | | | 757 | | | | | | 10 | |
| | | | |
Hays PLC | | | | | 10,151 | | | | | | 20 | |
| | | | |
HomeServe PLC | | | | | 1,754 | | | | | | 25 | |
| | | | |
Howden Joinery Group PLC | | | | | 5,822 | | | | | | 55 | |
| | | | |
IMI PLC | | | | | 2,326 | | | | | | 37 | |
| | | | |
International Consolidated Airlines Group S.A. | | | | | 6,583 | | | | | | 14 | |
| | | | |
Intertek Group PLC | | | | | 456 | | | | | | 35 | |
| | | | |
Morgan Sindall Group PLC | | | | | 1,116 | | | | | | 23 | |
| | | | |
National Express Group PLC | | | | | 7,351 | | | | | | 24 | |
| | | | | | | | | | | | |
| | | | | SHARES | | | | | MARKET
VALUE
(000S) | |
| | | | |
Pagegroup PLC (a) | | | | | 4,330 | | | $ | | | 26 | |
| | | | |
QinetiQ Group PLC | | | | | 4,688 | | | | | | 21 | |
| | | | |
RELX PLC | | | | | 8,766 | | | | | | 214 | |
| | | | |
Rentokil Initial PLC (a) | | | | | 17,370 | | | | | | 121 | |
| | | | |
Royal Mail PLC | | | | | 23,021 | | | | | | 106 | |
| | | | |
Smiths Group PLC | | | | | 1,898 | | | | | | 39 | |
| | | | |
Spirax-Sarco Engineering PLC | | | | | 520 | | | | | | 80 | |
| | | | |
Travis Perkins PLC | | | | | 2,750 | | | | | | 51 | |
| | | | |
Ultra Electronics Holdings PLC | | | | | 681 | | | | | | 19 | |
| | | | |
Vesuvius PLC | | | | | 3,294 | | | | | | 24 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 1,500 | |
| | | | | | | | | | | | |
| |
| INFORMATION TECHNOLOGY 0.2% | |
| | | | |
AVEVA Group PLC | | | | | 332 | | | | | | 15 | |
| | | | |
Computacenter PLC | | | | | 932 | | | | | | 31 | |
| | | | |
Dialog Semiconductor PLC (a) | | | | | 477 | | | | | | 26 | |
| | | | |
Electrocomponents PLC | | | | | 2,869 | | | | | | 34 | |
| | | | |
Halma PLC | | | | | 850 | | | | | | 29 | |
| | | | |
Renishaw PLC | | | | | 272 | | | | | | 21 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 156 | |
| | | | | | | | | | | | |
| |
| MATERIALS 1.2% | |
| | | | |
Anglo American PLC | | | | | 6,748 | | | | | | 223 | |
| | | | |
Croda International PLC | | | | | 918 | | | | | | 82 | |
| | | | |
Essentra PLC | | | | | 3,785 | | | | | | 16 | |
| | | | |
Johnson Matthey PLC | | | | | 1,429 | | | | | | 47 | |
| | | | |
KAZ Minerals PLC | | | | | 2,785 | | | | | | 25 | |
| | | | |
Mondi PLC | | | | | 1,621 | | | | | | 38 | |
| | | | |
Rio Tinto PLC | | | | | 5,270 | | | | | | 397 | |
| | | | |
Synthomer PLC | | | | | 5,070 | | | | | | 31 | |
| | | | |
Victrex PLC | | | | | 654 | | | | | | 21 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 880 | |
| | | | | | | | | | | | |
| |
| REAL ESTATE 0.1% | |
| | | | |
Grainger PLC | | | | | 5,073 | | | | | | 20 | |
| | | | |
Savills PLC | | | | | 1,515 | | | | | | 20 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 40 | |
| | | | | | | | | | | | |
| |
| UTILITIES 1.2% | |
| | | | |
Centrica PLC | | | | | 82,135 | | | | | | 52 | |
| | | | |
Drax Group PLC | | | | | 5,610 | | | | | | 29 | |
| | | | |
National Grid PLC | | | | | 32,546 | | | | | | 384 | |
| | | | |
Pennon Group PLC | | | | | 4,100 | | | | | | 53 | |
| | | | |
Severn Trent PLC | | | | | 866 | | | | | | 27 | |
| | | | |
SSE PLC | | | | | 13,714 | | | | | | 281 | |
| | | | |
United Utilities Group PLC | | | | | 6,040 | | | | | | 74 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 900 | |
| | | | | | | | | | | | |
Total United Kingdom | | | | | | | | | | | 10,232 | |
| | | | | | | | | | | | |
| |
| UNITED STATES 0.1% | |
| |
| CONSUMER DISCRETIONARY 0.0% | |
| | | | |
Carnival PLC | | | | | 1,490 | | | | | | 28 | |
| | | | | | | | | | | | |
| |
| MATERIALS 0.1% | |
| | | | |
Sims Metal Management Ltd. | | | | | 3,820 | | | | | | 40 | |
| | | | | | | | | | | | |
Total United States | | | | | | | | | | | 68 | |
| | | | | | | | | | | | |
Total Common Stocks (Cost $60,539) | | | 70,313 | |
| | | | |
| |
| | | | | | | | | | | | |
| | | | | SHARES | | | | | MARKET
VALUE
(000S) | |
| PREFERRED STOCKS 0.6% | |
| |
| GERMANY 0.6% | |
| |
| INDUSTRIALS 0.6% | |
| | | | |
Fuchs Petrolub SE | | | | | 609 | | | $ | | | 34 | |
| | | | |
Henkel AG & Co. KGaA | | | | | 1,304 | | | | | | 147 | |
| | | | |
Sartorius AG | | | | | 122 | | | | | | 52 | |
| | | | |
Schaeffler AG | | | | | 1,793 | | | | | | 15 | |
| | | | |
Volkswagen AG | | | | | 1,023 | | | | | | 191 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 439 | |
| | | | | | | | | | | | |
Total Preferred Stocks (Cost $393) | | | 439 | |
| | | | |
| |
| REAL ESTATE INVESTMENT TRUSTS 2.1% | |
| |
| AUSTRALIA 0.2% | |
| |
| REAL ESTATE 0.2% | |
| | | | |
Charter Hall Group | | | | | 2,148 | | | | | | 25 | |
| | | | |
Goodman Group | | | | | 2,870 | | | | | | 42 | |
| | | | |
GPT Group | | | | | 5,221 | | | | | | 18 | |
| | | | |
Scentre Group | | | | | 7,953 | | | | | | 17 | |
| | | | |
Stockland | | | | | 12,815 | | | | | | 41 | |
| | | | |
Vicinity Centres | | | | | 11,219 | | | | | | 14 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 157 | |
| | | | | | | | | | | | |
Total Australia | | | 157 | |
| | | | |
| |
| BELGIUM 0.1% | |
| |
| REAL ESTATE 0.1% | |
| | | | |
Befimmo S.A. | | | | | 597 | | | | | | 27 | |
| | | | |
Cofinimmo S.A. | | | | | 162 | | | | | | 24 | |
| | | | |
Warehouses De Pauw CVA | | | | | 645 | | | | | | 22 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 73 | |
| | | | | | | | | | | | |
Total Belgium | | | 73 | |
| | | | |
| |
| CANADA 0.1% | |
| |
| REAL ESTATE 0.1% | |
| | | | |
Allied Properties Real Estate Investment Trust (e) | | | | | 710 | | | | | | 21 | |
| | | | |
Canadian Apartment Properties REIT | | | | | 550 | | | | | | 22 | |
| | | | |
Dream Office Real Estate Investment Trust | | | | | 992 | | | | | | 15 | |
| | | | |
Granite Real Estate Investment Trust | | | | | 593 | | | | | | 36 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 94 | |
| | | | | | | | | | | | |
Total Canada | | | 94 | |
| | | | |
| |
| FRANCE 0.1% | |
| |
| REAL ESTATE 0.1% | |
| | | | |
Covivio | | | | | 265 | | | | | | 24 | |
| | | | |
Gecina S.A. | | | | | 148 | | | | | | 23 | |
| | | | |
Klepierre S.A. | | | | | 893 | | | | | | 20 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 67 | |
| | | | | | | | | | | | |
Total France | | | 67 | |
| | | | |
| |
| GERMANY 0.1% | |
| |
| REAL ESTATE 0.1% | |
| | | | |
Alstria Office REIT-AG | | | | | 1,572 | | | | | | 29 | |
| | | | | | | | | | | | |
Total Germany | | | 29 | |
| | | | |
| |
| HONG KONG 0.1% | |
| |
| REAL ESTATE 0.1% | |
| | | | |
Fortune Real Estate Investment Trust | | | | | 17,000 | | | | | | 16 | |
| | | | | | |
| 42 | | PIMCO EQUITY SERIES | | | See Accompanying Notes | |
| | | | | | | | |
| | | | | | December 31, 2020 | | (Unaudited) |
| | | | | | | | | | | | |
| | | | | SHARES | | | | | MARKET
VALUE
(000S) | |
| | | | |
Link REIT | | | | | 5,600 | | | $ | | | 51 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 67 | |
| | | | | | | | | | | | |
Total Hong Kong | | | 67 | |
| | | | |
| |
| JAPAN 0.8% | |
| |
| REAL ESTATE 0.8% | |
| | | | |
Activia Properties, Inc. | | | | | 2 | | | | | | 8 | |
| | | | |
Advance Residence Investment Corp. | | | | | 9 | | | | | | 27 | |
| | | | |
AEON REIT Investment Corp. | | | | | 18 | | | | | | 23 | |
| | | | |
Daiwa House REIT Investment Corp. | | | | | 11 | | | | | | 27 | |
| | | | |
Daiwa Office Investment Corp. | | | | | 2 | | | | | | 13 | |
| | | | |
Daiwa Securities Living Investments Corp. | | | | | 26 | | | | | | 24 | |
| | | | |
Frontier Real Estate Investment Corp. | | | | | 2 | | | | | | 8 | |
| | | | |
Fukuoka REIT Corp. | | | | | 11 | | | | | | 16 | |
| | | | |
GLP J-Reit | | | | | 25 | | | | | | 39 | |
| | | | |
Hulic Reit, Inc. | | | | | 11 | | | | | | 16 | |
| | | | |
Industrial & Infrastructure Fund Investment Corp. | | | | | 20 | | | | | | 37 | |
| | | | |
Japan Excellent, Inc. | | | | | 17 | | | | | | 21 | |
| | | | |
Japan Hotel REIT Investment Corp. | | | | | 16 | | | | | | 8 | |
| | | | |
Japan Logistics Fund, Inc. | | | | | 11 | | | | | | 32 | |
| | | | |
Japan Prime Realty Investment Corp. | | | | | 2 | | | | | | 7 | |
| | | | |
Japan Real Estate Investment Corp. | | | | | 2 | | | | | | 12 | |
| | | | |
Kenedix Office Investment Corp. | | | | | 2 | | | | | | 14 | |
| | | | |
MCUBS MidCity Investment Corp. | | | | | 27 | | | | | | 25 | |
| | | | |
Mori Hills REIT Investment Corp. | | | | | 12 | | | | | | 17 | |
| | | | |
Mori Trust Sogo Reit, Inc. | | | | | 15 | | | | | | 19 | |
| | | | |
Nippon Accommodations Fund, Inc. | | | | | 3 | | | | | | 17 | |
| | | | |
Nippon Building Fund, Inc. | | | | | 2 | | | | | | 12 | |
| | | | |
Nippon Prologis REIT, Inc. | | | | | 15 | | | | | | 47 | |
| | | | |
Nomura Real Estate Master Fund, Inc. | | | | | 16 | | | | | | 23 | |
| | | | |
Orix JREIT, Inc. | | | | | 18 | | | | | | 30 | |
| | | | |
Premier Investment Corp. | | | | | 18 | | | | | | 22 | |
| | | | |
Tokyu REIT, Inc. | | | | | 10 | | | | | | 16 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 560 | |
| | | | | | | | | | | | |
Total Japan | | | 560 | |
| | | | |
| |
| | | | | | | | | | | | |
| | | | | SHARES | | | | | MARKET
VALUE
(000S) | |
| NETHERLANDS 0.0% | |
| |
| REAL ESTATE 0.0% | |
| | | | |
Wereldhave NV | | | | | 2,057 | | | $ | | | 27 | |
| | | | | | | | | | | | |
Total Netherlands | | | 27 | |
| | | | |
| |
| SINGAPORE 0.3% | |
| |
| REAL ESTATE 0.3% | |
| | | | |
Ascendas Real Estate Investment Trust | | | | | 14,300 | | | | | | 32 | |
| | | | |
CapitaLand Mall Trust | | | | | 11,400 | | | | | | 19 | |
| | | | |
Keppel DC REIT | | | | | 12,500 | | | | | | 27 | |
| | | | |
Mapletree Commercial Trust | | | | | 17,227 | | | | | | 28 | |
| | | | |
Mapletree Industrial Trust | | | | | 15,700 | | | | | | 34 | |
| | | | |
Mapletree Logistics Trust | | | | | 40,100 | | | | | | 61 | |
| | | | |
Mapletree North Asia Commercial Trust | | | | | 28,800 | | | | | | 21 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 222 | |
| | | | | | | | | | | | |
Total Singapore | | | 222 | |
| | | | |
| |
| SPAIN 0.0% | |
| |
| REAL ESTATE 0.0% | |
| | | | |
Inmobiliaria Colonial Socimi S.A. | | | | | 1,681 | | | | | | 16 | |
| | | | | | | | | | | | |
Total Spain | | | 16 | |
| | | | |
| |
| UNITED KINGDOM 0.3% | |
| |
| REAL ESTATE 0.3% | |
| | | | |
Assura PLC | | | | | 16,691 | | | | | | 17 | |
| | | | |
Big Yellow Group PLC | | | | | 1,512 | | | | | | 23 | |
| | | | |
Great Portland Estates PLC | | | | | 1,967 | | | | | | 18 | |
| | | | |
Land Securities Group PLC | | | | | 4,236 | | | | | | 39 | |
| | | | |
LondonMetric Property PLC | | | | | 7,218 | | | | | | 23 | |
| | | | |
Segro PLC | | | | | 5,166 | | | | | | 67 | |
| | | | |
Tritax Big Box REIT PLC | | | | | 11,371 | | | | | | 26 | |
| | | | |
UNITE Group PLC (a) | | | | | 1,956 | | | | | | 28 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 241 | |
| | | | | | | | | | | | |
Total United Kingdom | | | | | | | | | | | 241 | |
| | | | | | | | | | | | |
Total Real Estate Investment Trusts
(Cost $1,408) | | | 1,553 | |
| | | | |
| | | | | | | | | | | | |
| | | | | SHARES | | | | | MARKET
VALUE
(000S) | |
| RIGHTS 0.0% | |
| |
| AUSTRALIA 0.0% | |
| |
| MATERIALS 0.0% | |
| | | | |
IGO Ltd. | | | | | 574 | | | $ | | | 1 | |
| | | | | | | | | | | | |
Total Australia | | | 1 | |
| | | | |
| |
| SPAIN 0.0% | |
| |
| ENERGY 0.0% | |
| | | | |
Repsol S.A. | | | | | 8,352 | | | | | | 3 | |
| | | | | | | | | | | | |
Total Spain | | | | | | | | | | | 3 | |
| | | | | | | | | | | | |
Total Rights (Cost $3) | | | 4 | |
| | | | |
| |
| SHORT-TERM INSTRUMENTS 1.0% | |
| |
| MUTUAL FUNDS 0.0% | |
| |
| REPURCHASE AGREEMENTS (f) 1.0% | |
| | | | | | | | | | | 695 | |
| | | | | | | | | | | | |
Total Short-Term Instruments
(Cost $695) | | | 695 | |
| | | | |
|
| |
Total Investments in Securities
(Cost $63,038) | | | 73,004 | |
| | | | |
| |
| INVESTMENTS IN AFFILIATES 0.5% | |
| |
| SHORT-TERM INSTRUMENTS 0.5% | |
| |
| MUTUAL FUNDS 0.5% | |
| | |
PIMCO Government Money Market Fund | | | | | | | |
0.150% (b)(c)(d) | | | 349,249 | | | | | | 349 | |
| | | | | | | | | | | | |
Total Short-Term Instruments
(Cost $349) | | | | | | 349 | |
| | | | | | | | | | | | |
| | | | |
| | | | | | | | | | | | |
Total Investments in Affiliates
(Cost $349) | | | | | | 349 | |
| | | | |
| | | | | | | | | | | | |
Total Investments 100.8%
(Cost $63,387) | | | $ | | | 73,353 | |
| |
Other Assets and Liabilities, net (0.8)% | | | | | | (551 | ) |
| | | | | | | | | | |
Net Assets 100.0% | | | | | | | | $ | | | 72,802 | |
| | | | | | | | | | | | |
NOTES TO SCHEDULE OF INVESTMENTS:
| * | 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) | Institutional Class Shares of each Fund. |
| (c) | Securities with an aggregate market value of $337 were out on loan in exchange for $357 of cash collateral as of December 31, 2020. The collateral was invested in a cash collateral reinvestment vehicle as described in Note 5 in the Notes to Financial Statements. |
| (d) | Coupon represents a 7-Day Yield. |
(e) RESTRICTED SECURITIES:
| | | | | | | | | | | | | | | | |
| Issuer Description | | Acquisition
Date | | | Cost | | | Market
Value | | | Market Value
as Percentage
of Net Assets | |
Agnico Eagle Mines Ltd. | | | 03/31/2020 - 12/18/2020 | | | $ | 50 | | | $ | 52 | | | | 0.07 | % |
Allied Properties Real Estate Investment Trust | | | 01/25/2019 - 09/30/2020 | | | | 21 | | | | 21 | | | | 0.03 | |
Boralex, Inc. | | | 03/31/2020 - 09/30/2020 | | | | 20 | | | | 33 | | | | 0.05 | |
Cogeco, Inc. | | | 03/31/2020 - 09/30/2020 | | | | 18 | | | | 18 | | | | 0.02 | |
Constellation Software, Inc. | | | 06/27/2018 - 09/30/2020 | | | | 60 | | | | 79 | | | | 0.11 | |
Great-West Lifeco, Inc. | | | 06/27/2018 - 09/30/2020 | | | | 25 | | | | 28 | | | | 0.04 | |
Intact Financial Corp. | | | 08/31/2017 - 09/30/2020 | | | | 59 | | | | 69 | | | | 0.09 | |
Kirkland Lake Gold Ltd. | | | 06/30/2020 - 09/30/2020 | | | | 16 | | | | 14 | | | | 0.02 | |
Martinrea International, Inc. | | | 08/31/2017 - 09/30/2020 | | | | 24 | | | | 33 | | | | 0.05 | |
Whitecap Resources, Inc. | | | 09/30/2020 | | | | 18 | | | | 39 | | | | 0.05 | |
| | | | | | | | | | | | | | | | |
| | | $ | 311 | | | $ | 386 | | | | 0.53 | % |
| | | | | | | | | | | | | |
| | | | | | | | | | | | |
| See Accompanying Notes | | | SEMIANNUAL REPORT | | | | | | | DECEMBER 31, 2020 | | | 43 |
| | | | | | | | |
| Schedule of Investments | | PIMCO RAFI Dynamic Multi-Factor International Equity ETF | | (Cont.) | | | | |
BORROWINGS AND OTHER FINANCING TRANSACTIONS
(f) 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 | |
| FICC | | | 0.000 | % | | | 12/31/2020 | | | | 01/04/2021 | | | $ | 695 | | | U.S. Treasury Bills 0.000% due 12/30/2021 | | $ | (709 | ) | | $ | 695 | | | $ | 695 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total Repurchase Agreements | | | | | $ | (709 | ) | | $ | 695 | | | $ | 695 | |
| | | | | | | | | | | | | | | |
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, 2020:
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Counterparty | | Repurchase
Agreement
Proceeds
to be
Received | | | Payable for
Reverse
Repurchase
Agreements | | | Payable for
Sale-Buyback
Transactions | | | Securities
Out on Loan | | | Total
Borrowings and
Other Financing
Transactions | | | Collateral
Pledged/(Received) | | | Net Exposure(1) | |
Global/Master Repurchase Agreement | |
FICC | | $ | 695 | | | $ | 0 | | | $ | 0 | | | $ | 0 | | | $ | 695 | | | $ | (709 | ) | | $ | (14 | ) |
|
Master Securities Lending Agreement | |
BSN | | | 0 | | | | 0 | | | | 0 | | | | 28 | | | | 28 | | | | (29 | ) | | | (1 | ) |
FOB | | | 0 | | | | 0 | | | | 0 | | | | 8 | | | | 8 | | | | (11 | ) | | | (3 | ) |
GSC | | | 0 | | | | 0 | | | | 0 | | | | 85 | | | | 85 | | | | (90 | ) | | | (5 | ) |
SAL | | | 0 | | | | 0 | | | | 0 | | | | 177 | | | | 177 | | | | (186 | ) | | | (9 | ) |
SSB | | | 0 | | | | 0 | | | | 0 | | | | 39 | | | | 39 | | | | (41 | ) | | | (2 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total Borrowings and Other Financing Transactions | | $ | 695 | | | $ | 0 | | | $ | 0 | | | $ | 337 | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
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 | |
Securities Lending Transactions(2) | |
Common Stocks | | $ | 357 | | | $ | 0 | | | $ | 0 | | | $ | 0 | | | $ | 357 | |
| | | | | | | | | | | | | | | | | | | | |
Total Borrowings | | $ | 357 | | | $ | 0 | | | $ | 0 | | | $ | 0 | | | $ | 357 | |
| | | | | | | | | | | | | | | | | | | | |
Payable for securities on loan - cash collateral | | | $ | 357 | |
| | | | | |
| (1) | 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. |
| (2) | Includes cash collateral as described in Note 5 in the Notes to Financial Statements. |
FAIR VALUE MEASUREMENTS
The following is a summary of the fair valuations according to the inputs used as of December 31, 2020 in valuing the Fund’s assets and liabilities:
| | | | | | | | | | | | | | | | |
| Category and Subcategory | | Level 1 | | | Level 2 | | | Level 3 | | | Fair
Value at
12/31/2020 | |
Investments in Securities, at Value | |
Common Stocks | |
Australia | |
Communication Services | | $ | 0 | | | $ | 310 | | | $ | 0 | | | $ | 310 | |
Consumer Discretionary | | | 0 | | | | 509 | | | | 0 | | | | 509 | |
Consumer Staples | | | 0 | | | | 442 | | | | 0 | | | | 442 | |
Energy | | | 0 | | | | 181 | | | | 0 | | | | 181 | |
Financials | | | 0 | | | | 423 | | | | 0 | | | | 423 | |
Health Care | | | 0 | | | | 352 | | | | 0 | | | | 352 | |
Industrials | | | 0 | | | | 219 | | | | 0 | | | | 219 | |
Information Technology | | | 78 | | | | 65 | | | | 0 | | | | 143 | |
Materials | | | 0 | | | | 1,520 | | | | 0 | | | | 1,520 | |
Real Estate | | | 0 | | | | 14 | | | | 0 | | | | 14 | |
Utilities | | | 0 | | | | 35 | | | | 0 | | | | 35 | |
| | | | | | | | | | | | | | | | |
| Category and Subcategory | | Level 1 | | | Level 2 | | | Level 3 | | | Fair
Value at
12/31/2020 | |
Austria | |
Energy | | $ | 0 | | | $ | 25 | | | $ | 0 | | | $ | 25 | |
Industrials | | | 0 | | | | 48 | | | | 0 | | | | 48 | |
Materials | | | 24 | | | | 31 | | | | 0 | | | | 55 | |
Real Estate | | | 0 | | | | 19 | | | | 0 | | | | 19 | |
Belgium | |
Communication Services | | | 0 | | | | 18 | | | | 0 | | | | 18 | |
Consumer Discretionary | | | 0 | | | | 43 | | | | 0 | | | | 43 | |
Consumer Staples | | | 35 | | | | 0 | | | | 0 | | | | 35 | |
Energy | | | 0 | | | | 21 | | | | 0 | | | | 21 | |
Financials | | | 0 | | | | 73 | | | | 0 | | | | 73 | |
Health Care | | | 0 | | | | 40 | | | | 0 | | | | 40 | |
Industrials | | | 0 | | | | 22 | | | | 0 | | | | 22 | |
Information Technology | | | 0 | | | | 14 | | | | 0 | | | | 14 | |
Materials | | | 0 | | | | 54 | | | | 0 | | | | 54 | |
Utilities | | | 0 | | | | 33 | | | | 0 | | | | 33 | |
| | | | | | |
| 44 | | PIMCO EQUITY SERIES | | | See Accompanying Notes | |
| | | | | | | | |
| | | | | | December 31, 2020 | | (Unaudited) |
| | | | | | | | | | | | | | | | |
| Category and Subcategory | | Level 1 | | | Level 2 | | | Level 3 | | | Fair
Value at
12/31/2020 | |
Canada | |
Communication Services | | $ | 350 | | | $ | 0 | | | $ | 0 | | | $ | 350 | |
Consumer Discretionary | | | 798 | | | | 0 | | | | 0 | | | | 798 | |
Consumer Staples | | | 538 | | | | 0 | | | | 0 | | | | 538 | |
Energy | | | 272 | | | | 0 | | | | 0 | | | | 272 | |
Financials | | | 692 | | | | 0 | | | | 0 | | | | 692 | |
Health Care | | | 14 | | | | 0 | | | | 0 | | | | 14 | |
Industrials | | | 960 | | | | 0 | | | | 0 | | | | 960 | |
Information Technology | | | 365 | | | | 1 | | | | 0 | | | | 366 | |
Materials | | | 977 | | | | 0 | | | | 0 | | | | 977 | |
Real Estate | | | 73 | | | | 0 | | | | 0 | | | | 73 | |
Utilities | | | 365 | | | | 0 | | | | 0 | | | | 365 | |
Chile | |
Materials | | | 0 | | | | 28 | | | | 0 | | | | 28 | |
Denmark | |
Consumer Discretionary | | | 0 | | | | 110 | | | | 0 | | | | 110 | |
Consumer Staples | | | 0 | | | | 136 | | | | 0 | | | | 136 | |
Financials | | | 0 | | | | 49 | | | | 0 | | | | 49 | |
Health Care | | | 0 | | | | 623 | | | | 0 | | | | 623 | |
Industrials | | | 28 | | | | 519 | | | | 0 | | | | 547 | |
Materials | | | 0 | | | | 101 | | | | 0 | | | | 101 | |
Utilities | | | 0 | | | | 150 | | | | 0 | | | | 150 | |
Finland | |
Communication Services | | | 0 | | | | 66 | | | | 0 | | | | 66 | |
Consumer Staples | | | 0 | | | | 116 | | | | 0 | | | | 116 | |
Energy | | | 0 | | | | 221 | | | | 0 | | | | 221 | |
Financials | | | 0 | | | | 58 | | | | 0 | | | | 58 | |
Health Care | | | 0 | | | | 52 | | | | 0 | | | | 52 | |
Industrials | | | 0 | | | | 242 | | | | 0 | | | | 242 | |
Information Technology | | | 0 | | | | 62 | | | | 0 | | | | 62 | |
Materials | | | 0 | | | | 202 | | | | 0 | | | | 202 | |
Utilities | | | 0 | | | | 35 | | | | 0 | | | | 35 | |
France | |
Communication Services | | | 15 | | | | 412 | | | | 0 | | | | 427 | |
Consumer Discretionary | | | 0 | | | | 940 | | | | 0 | | | | 940 | |
Consumer Staples | | | 0 | | | | 533 | | | | 0 | | | | 533 | |
Energy | | | 0 | | | | 124 | | | | 0 | | | | 124 | |
Financials | | | 0 | | | | 168 | | | | 0 | | | | 168 | |
Health Care | | | 41 | | | | 214 | | | | 0 | | | | 255 | |
Industrials | | | 0 | | | | 936 | | | | 0 | | | | 936 | |
Information Technology | | | 0 | | | | 228 | | | | 0 | | | | 228 | |
Materials | | | 26 | | | | 180 | | | | 0 | | | | 206 | |
Real Estate | | | 0 | | | | 15 | | | | 0 | | | | 15 | |
Utilities | | | 0 | | | | 359 | | | | 0 | | | | 359 | |
Germany | |
Communication Services | | | 35 | | | | 244 | | | | 0 | | | | 279 | |
Consumer Discretionary | | | 104 | | | | 798 | | | | 0 | | | | 902 | |
Consumer Staples | | | 0 | | | | 63 | | | | 0 | | | | 63 | |
Financials | | | 26 | | | | 538 | | | | 0 | | | | 564 | |
Health Care | | | 0 | | | | 255 | | | | 0 | | | | 255 | |
Industrials | | | 111 | | | | 505 | | | | 0 | | | | 616 | |
Information Technology | | | 0 | | | | 181 | | | | 0 | | | | 181 | |
Materials | | | 0 | | | | 346 | | | | 0 | | | | 346 | |
Real Estate | | | 0 | | | | 289 | | | | 0 | | | | 289 | |
Utilities | | | 0 | | | | 519 | | | | 0 | | | | 519 | |
Hong Kong | |
Communication Services | | | 0 | | | | 111 | | | | 0 | | | | 111 | |
Consumer Discretionary | | | 40 | | | | 287 | | | | 0 | | | | 327 | |
Consumer Staples | | | 0 | | | | 105 | | | | 0 | | | | 105 | |
Financials | | | 0 | | | | 324 | | | | 0 | | | | 324 | |
Industrials | | | 15 | | | | 278 | | | | 0 | | | | 293 | |
Information Technology | | | 0 | | | | 106 | | | | 0 | | | | 106 | |
Real Estate | | | 0 | | | | 153 | | | | 0 | | | | 153 | |
Utilities | | | 0 | | | | 213 | | | | 0 | | | | 213 | |
Ireland | |
Consumer Discretionary | | | 174 | | | | 156 | | | | 0 | | | | 330 | |
Consumer Staples | | | 15 | | | | 108 | | | | 0 | | | | 123 | |
Health Care | | | 368 | | | | 23 | | | | 0 | | | | 391 | |
Industrials | | | 140 | | | | 206 | | | | 0 | | | | 346 | |
Materials | | | 94 | | | | 127 | | | | 0 | | | | 221 | |
Israel | |
Communication Services | | | 0 | | | | 26 | | | | 0 | | | | 26 | |
Consumer Staples | | | 0 | | | | 20 | | | | 0 | | | | 20 | |
Energy | | | 0 | | | | 42 | | | | 0 | | | | 42 | |
| | | | | | | | | | | | | | | | |
| Category and Subcategory | | Level 1 | | | Level 2 | | | Level 3 | | | Fair
Value at
12/31/2020 | |
Financials | | $ | 0 | | | $ | 126 | | | $ | 0 | | | $ | 126 | |
Health Care | | | 28 | | | | 0 | | | | 0 | | | | 28 | |
Industrials | | | 0 | | | | 44 | | | | 0 | | | | 44 | |
Information Technology | | | 142 | | | | 75 | | | | 0 | | | | 217 | |
Materials | | | 0 | | | | 31 | | | | 0 | | | | 31 | |
Italy | |
Communication Services | | | 0 | | | | 111 | | | | 0 | | | | 111 | |
Consumer Discretionary | | | 0 | | | | 180 | | | | 0 | | | | 180 | |
Consumer Staples | | | 0 | | | | 25 | | | | 0 | | | | 25 | |
Energy | | | 0 | | | | 161 | | | | 0 | | | | 161 | |
Financials | | | 0 | | | | 235 | | | | 0 | | | | 235 | |
Health Care | | | 0 | | | | 116 | | | | 0 | | | | 116 | |
Industrials | | | 0 | | | | 75 | | | | 0 | | | | 75 | |
Utilities | | | 0 | | | | 521 | | | | 0 | | | | 521 | |
Japan | |
Communication Services | | | 0 | | | | 1,678 | | | | 0 | | | | 1,678 | |
Consumer Discretionary | | | 0 | | | | 3,706 | | | | 0 | | | | 3,706 | |
Consumer Staples | | | 0 | | | | 1,984 | | | | 0 | | | | 1,984 | |
Energy | | | 0 | | | | 213 | | | | 0 | | | | 213 | |
Financials | | | 0 | | | | 314 | | | | 0 | | | | 314 | |
Health Care | | | 0 | | | | 2,181 | | | | 0 | | | | 2,181 | |
Industrials | | | 0 | | | | 3,698 | | | | 0 | | | | 3,698 | |
Information Technology | | | 0 | | | | 3,367 | | | | 0 | | | | 3,367 | |
Materials | | | 0 | | | | 1,374 | | | | 0 | | | | 1,374 | |
Real Estate | | | 0 | | | | 60 | | | | 0 | | | | 60 | |
Utilities | | | 0 | | | | 517 | | | | 0 | | | | 517 | |
Jordan | |
Health Care | | | 0 | | | | 26 | | | | 0 | | | | 26 | |
Luxembourg | |
Communication Services | | | 0 | | | | 15 | | | | 0 | | | | 15 | |
Health Care | | | 32 | | | | 0 | | | | 0 | | | | 32 | |
Materials | | | 0 | | | | 156 | | | | 0 | | | | 156 | |
Real Estate | | | 0 | | | | 50 | | | | 0 | | | | 50 | |
Macau | |
Consumer Discretionary | | | 0 | | | | 51 | | | | 0 | | | | 51 | |
Monaco | |
Materials | | | 43 | | | | 0 | | | | 0 | | | | 43 | |
Netherlands | |
Communication Services | | | 14 | | | | 79 | | | | 0 | | | | 93 | |
Consumer Discretionary | | | 22 | | | | 71 | | | | 0 | | | | 93 | |
Consumer Staples | | | 124 | | | | 310 | | | | 0 | | | | 434 | |
Energy | | | 36 | | | | 113 | | | | 0 | | | | 149 | |
Financials | | | 0 | | | | 248 | | | | 0 | | | | 248 | |
Health Care | | | 39 | | | | 0 | | | | 0 | | | | 39 | |
Industrials | | | 135 | | | | 227 | | | | 0 | | | | 362 | |
Information Technology | | | 172 | | | | 770 | | | | 0 | | | | 942 | |
Materials | | | 0 | | | | 346 | | | | 0 | | | | 346 | |
New Zealand | |
Communication Services | | | 0 | | | | 78 | | | | 0 | | | | 78 | |
Energy | | | 0 | | | | 35 | | | | 0 | | | | 35 | |
Health Care | | | 0 | | | | 55 | | | | 0 | | | | 55 | |
Industrials | | | 0 | | | | 28 | | | | 0 | | | | 28 | |
Materials | | | 0 | | | | 37 | | | | 0 | | | | 37 | |
Utilities | | | 0 | | | | 91 | | | | 0 | | | | 91 | |
Norway | |
Communication Services | | | 0 | | | | 168 | | | | 0 | | | | 168 | |
Consumer Staples | | | 60 | | | | 132 | | | | 0 | | | | 192 | |
Energy | | | 0 | | | | 93 | | | | 0 | | | | 93 | |
Financials | | | 0 | | | | 57 | | | | 0 | | | | 57 | |
Industrials | | | 0 | | | | 58 | | | | 0 | | | | 58 | |
Materials | | | 0 | | | | 82 | | | | 0 | | | | 82 | |
Real Estate | | | 0 | | | | 33 | | | | 0 | | | | 33 | |
Portugal | |
Consumer Staples | | | 0 | | | | 63 | | | | 0 | | | | 63 | |
Materials | | | 0 | | | | 22 | | | | 0 | | | | 22 | |
Utilities | | | 0 | | | | 302 | | | | 0 | | | | 302 | |
Singapore | |
Communication Services | | | 0 | | | | 115 | | | | 0 | | | | 115 | |
Consumer Staples | | | 0 | | | | 174 | | | | 0 | | | | 174 | |
Energy | | | 0 | | | | 31 | | | | 0 | | | | 31 | |
Financials | | | 0 | | | | 164 | | | | 0 | | | | 164 | |
Industrials | | | 0 | | | | 160 | | | | 0 | | | | 160 | |
Information Technology | | | 0 | | | | 35 | | | | 0 | | | | 35 | |
| | | | | | | | | | | | |
| See Accompanying Notes | | | SEMIANNUAL REPORT | | | | | | | DECEMBER 31, 2020 | | | 45 |
| | | | | | | | |
| Schedule of Investments | | PIMCO RAFI Dynamic Multi-Factor International Equity ETF | | (Cont.) | | December 31, 2020 | | (Unaudited) |
| | | | | | | | | | | | | | | | |
| Category and Subcategory | | Level 1 | | | Level 2 | | | Level 3 | | | Fair
Value at
12/31/2020 | |
South Africa | |
Health Care | | $ | 0 | | | $ | 15 | | | $ | 0 | | | $ | 15 | |
Spain | |
Communication Services | | | 0 | | | | 137 | | | | 0 | | | | 137 | |
Consumer Discretionary | | | 0 | | | | 105 | | | | 0 | | | | 105 | |
Consumer Staples | | | 58 | | | | 0 | | | | 0 | | | | 58 | |
Energy | | | 0 | | | | 132 | | | | 0 | | | | 132 | |
Financials | | | 19 | | | | 275 | | | | 0 | | | | 294 | |
Health Care | | | 0 | | | | 36 | | | | 0 | | | | 36 | |
Industrials | | | 0 | | | | 193 | | | | 0 | | | | 193 | |
Information Technology | | | 0 | | | | 76 | | | | 0 | | | | 76 | |
Materials | | | 0 | | | | 30 | | | | 0 | | | | 30 | |
Utilities | | | 0 | | | | 909 | | | | 0 | | | | 909 | |
Sweden | |
Communication Services | | | 112 | | | | 169 | | | | 0 | | | | 281 | |
Consumer Discretionary | | | 64 | | | | 386 | | | | 0 | | | | 450 | |
Consumer Staples | | | 0 | | | | 213 | | | | 0 | | | | 213 | |
Financials | | | 0 | | | | 146 | | | | 0 | | | | 146 | |
Health Care | | | 0 | | | | 29 | | | | 0 | | | | 29 | |
Industrials | | | 19 | | | | 1,010 | | | | 0 | | | | 1,029 | |
Information Technology | | | 0 | | | | 134 | | | | 0 | | | | 134 | |
Materials | | | 0 | | | | 122 | | | | 0 | | | | 122 | |
Real Estate | | | 2 | | | | 27 | | | | 0 | | | | 29 | |
Switzerland | |
Communication Services | | | 0 | | | | 110 | | | | 0 | | | | 110 | |
Consumer Discretionary | | | 97 | | | | 215 | | | | 0 | | | | 312 | |
Consumer Staples | | | 0 | | | | 714 | | | | 0 | | | | 714 | |
Financials | | | 0 | | | | 945 | | | | 0 | | | | 945 | |
Health Care | | | 0 | | | | 979 | | | | 0 | | | | 979 | |
Industrials | | | 0 | | | | 1,022 | | | | 0 | | | | 1,022 | |
Information Technology | | | 176 | | | | 191 | | | | 0 | | | | 367 | |
Materials | | | 0 | | | | 692 | | | | 0 | | | | 692 | |
Real Estate | | | 0 | | | | 127 | | | | 0 | | | | 127 | |
Utilities | | | 0 | | | | 26 | | | | 0 | | | | 26 | |
United Kingdom | |
Communication Services | | | 23 | | | | 443 | | | | 0 | | | | 466 | |
Consumer Discretionary | | | 87 | | | | 1,231 | | | | 0 | | | | 1,318 | |
Consumer Staples | | | 224 | | | | 2,455 | | | | 0 | | | | 2,679 | |
Energy | | | 0 | | | | 238 | | | | 0 | | | | 238 | |
Financials | | | 15 | | | | 933 | | | | 0 | | | | 948 | |
Health Care | | | 23 | | | | 1,084 | | | | 0 | | | | 1,107 | |
Industrials | | | 10 | | | | 1,490 | | | | 0 | | | | 1,500 | |
Information Technology | | | 0 | | | | 156 | | | | 0 | | | | 156 | |
Materials | | | 0 | | | | 880 | | | | 0 | | | | 880 | |
Real Estate | | | 0 | | | | 40 | | | | 0 | | | | 40 | |
| | | | | | | | | | | | | | | | |
| Category and Subcategory | | Level 1 | | | Level 2 | | | Level 3 | | | Fair
Value at
12/31/2020 | |
Utilities | | $ | 0 | | | $ | 900 | | | $ | 0 | | | $ | 900 | |
United States | |
Consumer Discretionary | | | 0 | | | | 28 | | | | 0 | | | | 28 | |
Materials | | | 0 | | | | 40 | | | | 0 | | | | 40 | |
Preferred Stocks | |
Germany | |
Industrials | | | 15 | | | | 424 | | | | 0 | | | | 439 | |
Real Estate Investment Trusts | |
Australia | |
Real Estate | | | 0 | | | | 157 | | | | 0 | | | | 157 | |
Belgium | |
Real Estate | | | 0 | | | | 73 | | | | 0 | | | | 73 | |
Canada | |
Real Estate | | | 94 | | | | 0 | | | | 0 | | | | 94 | |
France | |
Real Estate | | | 0 | | | | 67 | | | | 0 | | | | 67 | |
Germany | |
Real Estate | | | 0 | | | | 29 | | | | 0 | | | | 29 | |
Hong Kong | |
Real Estate | | | 0 | | | | 67 | | | | 0 | | | | 67 | |
Japan | |
Real Estate | | | 0 | | | | 560 | | | | 0 | | | | 560 | |
Netherlands | |
Real Estate | | | 0 | | | | 27 | | | | 0 | | | | 27 | |
Singapore | |
Real Estate | | | 0 | | | | 222 | | | | 0 | | | | 222 | |
Spain | |
Real Estate | | | 0 | | | | 16 | | | | 0 | | | | 16 | |
United Kingdom | |
Real Estate | | | 0 | | | | 241 | | | | 0 | | | | 241 | |
Rights | |
Australia | |
Materials | | | 0 | | | | 1 | | | | 0 | | | | 1 | |
Spain | |
Energy | | | 3 | | | | 0 | | | | 0 | | | | 3 | |
Short-Term Instruments | |
Repurchase Agreements | | | 0 | | | | 695 | | | | 0 | | | | 695 | |
| | | | | | | | | | | | | | | | |
| | $ | 8,661 | | | $ | 64,343 | | | $ | 0 | | | $ | 73,004 | |
| | | | | | | | | | | | | | | | |
|
Investments in Affiliates, at Value | |
Short-Term Instruments | |
Mutual Funds | | | 349 | | | | 0 | | | | 0 | | | | 349 | |
| | | | | | | | | | | | | | | | |
| | | | |
Total Investments | | $ | 9,010 | | | $ | 64,343 | | | $ | 0 | | | $ | 73,353 | |
| | | | | | | | | | | | | | | | |
There were no significant transfers into or out of Level 3 during the period ended December 31, 2020.
| | | | | | |
| 46 | | PIMCO EQUITY SERIES | | | See Accompanying Notes | |
| | | | | | | | |
| Schedule of Investments | | PIMCO RAFI Dynamic Multi-Factor U.S. Equity ETF | | | | December 31, 2020 | | (Unaudited) |
(Amounts in thousands*, except number of shares, contracts, units and ounces, if any)
| | | | | | | | | | | | |
| | | | | SHARES | | | | | MARKET
VALUE
(000S) | |
| INVESTMENTS IN SECURITIES 100.5% | |
| |
| COMMON STOCKS 95.2% | |
| |
| IRELAND 0.3% | |
| |
| INFORMATION TECHNOLOGY 0.3% | |
| | | | |
Accenture PLC ‘A’ | | | | | 807 | | | $ | | | 211 | |
| | | | | | | | | | | | |
Total Ireland | | | | | | | | | | | 211 | |
| | | | | | | | | | | | |
| |
| SWITZERLAND 0.2% | |
| |
| FINANCIALS 0.2% | |
| | | | |
Chubb Ltd. | | | | | 905 | | | | | | 139 | |
| | | | | | | | | | | | |
Total Switzerland | | | | | | | | | | | 139 | |
| | | | | | | | | | | | |
| |
| UNITED KINGDOM 0.4% | |
| |
| CONSUMER STAPLES 0.1% | |
| | | | |
Coca-Cola European Partners PLC | | | | | 338 | | | | | | 17 | |
| | | | |
Nomad Foods Ltd. (a) | | | | | 1,170 | | | | | | 29 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 46 | |
| | | | | | | | | | | | |
| |
| FINANCIALS 0.0% | |
| | | | |
Willis Towers Watson PLC | | | | | 160 | | | | | | 34 | |
| | | | | | | | | | | | |
| |
| INDUSTRIALS 0.2% | |
| | | | |
IHS Markit Ltd. | | | | | 924 | | | | | | 83 | |
| | | | |
Pentair PLC | | | | | 1,223 | | | | | | 65 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 148 | |
| | | | | | | | | | | | |
| |
| MATERIALS 0.1% | |
| | | | |
Amcor PLC | | | | | 2,894 | | | | | | 34 | |
| | | | | | | | | | | | |
Total United Kingdom | | | | | | | | | | | 262 | |
| | | | | | | | | | | | |
| |
| UNITED STATES 94.3% | |
| |
| COMMUNICATION SERVICES 8.3% | |
| | | | |
Alphabet, Inc. ‘A’ (a) | | | | | 425 | | | | | | 745 | |
| | | | |
AMC Networks, Inc. ‘A’ (a) | | | | | 641 | | | | | | 23 | |
| | | | |
AT&T, Inc. | | | | | 12,077 | | | | | | 347 | |
| | | | |
Cable One, Inc. | | | | | 39 | | | | | | 87 | |
| | | | |
CenturyLink, Inc. | | | | | 9,743 | | | | | | 95 | |
| | | | |
Charter Communications, Inc. ‘A’ (a) | | | | | 417 | | | | | | 276 | |
| | | | |
Cinemark Holdings, Inc. | | | | | 1,130 | | | | | | 20 | |
| | | | |
Comcast Corp. ‘A’ | | | | | 7,112 | | | | | | 373 | |
| | | | |
Facebook, Inc. ‘A’ (a) | | | | | 2,734 | | | | | | 747 | |
| | | | |
Interpublic Group of Cos., Inc. | | | | | 2,792 | | | | | | 66 | |
| | | | |
John Wiley & Sons, Inc. ‘A’ | | | | | 274 | | | | | | 12 | |
| | | | |
Liberty Broadband Corp. ‘C’ (a) | | | | | 834 | | | | | | 132 | |
| | | | |
Liberty Media Corp-Liberty SiriusXM ‘C’ (a) | | | | | 1,455 | | | | | | 63 | |
| | | | |
Madison Square Garden Sports Corp. (a) | | | | | 85 | | | | | | 16 | |
| | | | |
Netflix, Inc. (a) | | | | | 562 | | | | | | 304 | |
| | | | |
New York Times Co. ‘A’ | | | | | 704 | | | | | | 36 | |
| | | | |
News Corp. ‘A’ | | | | | 3,059 | | | | | | 55 | |
| | | | |
Omnicom Group, Inc. | | | | | 1,089 | | | | | | 68 | |
| | | | |
Sinclair Broadcast Group, Inc. ‘A’ | | | | | 653 | | | | | | 21 | |
| | | | |
Sirius XM Holdings, Inc. | | | | | 3,009 | | | | | | 19 | |
| | | | |
Snap, Inc. (a) | | | | | 3,015 | | | | | | 151 | |
| | | | |
T-Mobile US, Inc. | | | | | 1,023 | | | | | | 138 | |
| | | | |
Take-Two Interactive Software, Inc. (a) | | | | | 372 | | | | | | 77 | |
| | | | |
TEGNA, Inc. | | | | | 1,464 | | | | | | 20 | |
| | | | |
Telephone & Data Systems, Inc. | | | | | 925 | | | | | | 17 | |
| | | | | | | | | | | | |
| | | | | SHARES | | | | | MARKET
VALUE
(000S) | |
| | | | |
Twitter, Inc. (a) | | | | | 2,217 | | | $ | | | 120 | |
| | | | |
Verizon Communications, Inc. | | | | | 9,970 | | | | | | 586 | |
| | | | |
ViacomCBS, Inc. ‘B’ | | | | | 3,223 | | | | | | 120 | |
| | | | |
Walt Disney Co. | | | | | 4,562 | | | | | | 827 | |
| | | | |
Zillow Group, Inc. ‘C’ (a) | | | | | 538 | | | | | | 70 | |
| | | | |
Zynga, Inc. ‘A’ (a) | | | | | 4,392 | | | | | | 43 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 5,674 | |
| | | | | | | | | | | | |
| |
| CONSUMER DISCRETIONARY 17.0% | |
| | | | |
Abercrombie & Fitch Co. ‘A’ | | | | | 2,254 | | | | | | 46 | |
| | | | |
Adient PLC (a) | | | | | 1,101 | | | | | | 38 | |
| | | | |
Adtalem Global Education, Inc. (a) | | | | | 402 | | | | | | 14 | |
| | | | |
Advance Auto Parts, Inc. | | | | | 102 | | | | | | 16 | |
| | | | |
Amazon.com, Inc. (a) | | | | | 237 | | | | | | 772 | |
| | | | |
American Axle & Manufacturing Holdings, Inc. (a) | | | | | 1,972 | | | | | | 16 | |
| | | | |
American Eagle Outfitters, Inc. | | | | | 6,253 | | | | | | 125 | |
| | | | |
Aramark | | | | | 171 | | | | | | 7 | |
| | | | |
Asbury Automotive Group, Inc. (a) | | | | | 192 | | | | | | 28 | |
| | | | |
AutoNation, Inc. (a) | | | | | 434 | | | | | | 30 | |
| | | | |
AutoZone, Inc. (a) | | | | | 77 | | | | | | 91 | |
| | | | |
Bed Bath & Beyond, Inc. (c) | | | | | 3,859 | | | | | | 69 | |
| | | | |
Best Buy Co., Inc. | | | | | 2,628 | | | | | | 262 | |
| | | | |
Bloomin’ Brands, Inc. | | | | | 1,726 | | | | | | 34 | |
| | | | |
Booking Holdings, Inc. (a) | | | | | 52 | | | | | | 116 | |
| | | | |
BorgWarner, Inc. | | | | | 227 | | | | | | 9 | |
| | | | |
Bright Horizons Family Solutions, Inc. (a) | | | | | 165 | | | | | | 29 | |
| | | | |
Brinker International, Inc. | | | | | 1,844 | | | | | | 104 | |
| | | | |
Buckle, Inc. | | | | | 456 | | | | | | 13 | |
| | | | |
Burlington Stores, Inc. (a) | | | | | 120 | | | | | | 31 | |
| | | | |
Carter’s, Inc. | | | | | 639 | | | | | | 60 | |
| | | | |
Cheesecake Factory, Inc. | | | | | 1,559 | | | | | | 58 | |
| | | | |
Chipotle Mexican Grill, Inc. (a) | | | | | 156 | | | | | | 216 | |
| | | | |
Churchill Downs, Inc. | | | | | 248 | | | | | | 48 | |
| | | | |
Cooper Tire & Rubber Co. | | | | | 363 | | | | | | 15 | |
| | | | |
Cracker Barrel Old Country Store, Inc. | | | | | 375 | | | | | | 49 | |
| | | | |
Dana, Inc. | | | | | 1,272 | | | | | | 25 | |
| | | | |
Darden Restaurants, Inc. | | | | | 275 | | | | | | 33 | |
| | | | |
Deckers Outdoor Corp. (a) | | | | | 401 | | | | | | 115 | |
| | | | |
Designer Brands, Inc. | | | | | 1,828 | | | | | | 14 | |
| | | | |
Dick’s Sporting Goods, Inc. | | | | | 554 | | | | | | 31 | |
| | | | |
Dillard’s, Inc. ‘A’ | | | | | 155 | | | | | | 10 | |
| | | | |
Dollar General Corp. | | | | | 1,943 | | | | | | 409 | |
| | | | |
Dollar Tree, Inc. (a) | | | | | 313 | | | | | | 34 | |
| | | | |
Domino’s Pizza, Inc. | | | | | 480 | | | | | | 184 | |
| | | | |
Dorman Products, Inc. (a) | | | | | 139 | | | | | | 12 | |
| | | | |
DR Horton, Inc. | | | | | 531 | | | | | | 37 | |
| | | | |
eBay, Inc. | | | | | 4,172 | | | | | | 210 | |
| | | | |
Expedia Group, Inc. | | | | | 210 | | | | | | 28 | |
| | | | |
Extended Stay America, Inc. | | | | | 1,209 | | | | | | 18 | |
| | | | |
Foot Locker, Inc. | | | | | 1,586 | | | | | | 64 | |
| | | | |
Ford Motor Co. | | | | | 26,260 | | | | | | 231 | |
| | | | |
G-III Apparel Group Ltd. (a) | | | | | 798 | | | | | | 19 | |
| | | | |
Gap, Inc. | | | | | 4,710 | | | | | | 95 | |
| | | | |
General Motors Co. | | | | | 10,041 | | | | | | 418 | |
| | | | |
Gentex Corp. | | | | | 1,663 | | | | | | 56 | |
| | | | |
Genuine Parts Co. | | | | | 281 | | | | | | 28 | |
| | | | |
Goodyear Tire & Rubber Co. | | | | | 2,095 | | | | | | 23 | |
| | | | |
Graham Holdings Co. ‘B’ | | | | | 28 | | | | | | 15 | |
| | | | |
Grand Canyon Education, Inc. (a) | | | | | 170 | | | | | | 16 | |
| | | | |
Group 1 Automotive, Inc. | | | | | 226 | | | | | | 30 | |
| | | | |
Guess?, Inc. | | | | | 1,167 | | | | | | 26 | |
| | | | |
H&R Block, Inc. | | | | | 2,801 | | | | | | 44 | |
| | | | | | | | | | | | |
| | | | | SHARES | | | | | MARKET
VALUE
(000S) | |
| | | | |
Hanesbrands, Inc. | | | | | 2,853 | | | $ | | | 42 | |
| | | | |
Hasbro, Inc. | | | | | 208 | | | | | | 19 | |
| | | | |
Helen of Troy Ltd. (a) | | | | | 88 | | | | | | 20 | |
| | | | |
Hilton Worldwide Holdings, Inc. | | | | | 293 | | | | | | 33 | |
| | | | |
Home Depot, Inc. | | | | | 3,552 | | | | | | 943 | |
| | | | |
International Game Technology PLC | | | | | 2,039 | | | | | | 35 | |
| | | | |
Jack in the Box, Inc. | | | | | 492 | | | | | | 46 | |
| | | | |
KB Home | | | | | 254 | | | | | | 9 | |
| | | | |
Kohl’s Corp. | | | | | 1,470 | | | | | | 60 | |
| | | | |
Kontoor Brands, Inc. | | | | | 588 | | | | | | 24 | |
| | | | |
L Brands, Inc. | | | | | 2,199 | | | | | | 82 | |
| | | | |
La-Z-Boy, Inc. | | | | | 434 | | | | | | 17 | |
| | | | |
Las Vegas Sands Corp. | | | | | 1,107 | | | | | | 66 | |
| | | | |
Lear Corp. | | | | | 339 | | | | | | 54 | |
| | | | |
Leggett & Platt, Inc. | | | | | 983 | | | | | | 44 | |
| | | | |
Lennar Corp. ‘A’ | | | | | 442 | | | | | | 34 | |
| | | | |
Lithia Motors, Inc. ‘A’ | | | | | 324 | | | | | | 95 | |
| | | | |
Lowe’s Cos., Inc. | | | | | 3,348 | | | | | | 537 | |
| | | | |
Macy’s, Inc. | | | | | 5,990 | | | | | | 67 | |
| | | | |
Marriott International, Inc. ‘A’ | | | | | 374 | | | | | | 49 | |
| | | | |
McDonald’s Corp. | | | | | 2,624 | | | | | | 563 | |
| | | | |
MDC Holdings, Inc. | | | | | 554 | | | | | | 27 | |
| | | | |
Meritage Homes Corp. (a) | | | | | 468 | | | | | | 39 | |
| | | | |
Murphy USA, Inc. | | | | | 266 | | | | | | 35 | |
| | | | |
Newell Brands, Inc. | | | | | 829 | | | | | | 18 | |
| | | | |
NIKE, Inc. ‘B’ | | | | | 3,772 | | | | | | 534 | |
| | | | |
Nordstrom, Inc. | | | | | 1,595 | | | | | | 50 | |
| | | | |
NVR, Inc. (a) | | | | | 16 | | | | | | 65 | |
| | | | |
O’Reilly Automotive, Inc. (a) | | | | | 246 | | | | | | 111 | |
| | | | |
Ollie’s Bargain Outlet Holdings, Inc. (a) | | | | | 165 | | | | | | 13 | |
| | | | |
Papa John’s International, Inc. | | | | | 232 | | | | | | 20 | |
| | | | |
Penn National Gaming, Inc. (a) | | | | | 788 | | | | | | 68 | |
| | | | |
Penske Automotive Group, Inc. | | | | | 219 | | | | | | 13 | |
| | | | |
Pool Corp. | | | | | 383 | | | | | | 143 | |
| | | | |
PulteGroup, Inc. | | | | | 757 | | | | | | 33 | |
| | | | |
PVH Corp. | | | | | 95 | | | | | | 9 | |
| | | | |
Qurate Retail, Inc. | | | | | 6,485 | | | | | | 71 | |
| | | | |
Ralph Lauren Corp. | | | | | 207 | | | | | | 21 | |
| | | | |
Ross Stores, Inc. | | | | | 535 | | | | | | 66 | |
| | | | |
Sally Beauty Holdings, Inc. (a) | | | | | 1,695 | | | | | | 22 | |
| | | | |
SeaWorld Entertainment, Inc. (a) | | | | | 919 | | | | | | 29 | |
| | | | |
Service Corp. International | | | | | 499 | | | | | | 24 | |
| | | | |
Signet Jewelers Ltd. | | | | | 1,500 | | | | | | 41 | |
| | | | |
Six Flags Entertainment Corp. | | | | | 1,114 | | | | | | 38 | |
| | | | |
Sonic Automotive, Inc. ‘A’ | | | | | 320 | | | | | | 12 | |
| | | | |
Starbucks Corp. | | | | | 3,588 | | | | | | 384 | |
| | | | |
Steven Madden Ltd. | | | | | 681 | | | | | | 24 | |
| | | | |
Tapestry, Inc. | | | | | 430 | | | | | | 13 | |
| | | | |
Target Corp. | | | | | 3,853 | | | | | | 680 | |
| | | | |
Taylor Morrison Home Corp. ‘A’ (a) | | | | | 790 | | | | | | 20 | |
| | | | |
Tempur Sealy International, Inc. (a) | | | | | 810 | | | | | | 22 | |
| | | | |
Tenneco, Inc. ‘A’ (a) | | | | | 946 | | | | | | 10 | |
| | | | |
Terminix Global Holdings, Inc. (a) | | | | | 796 | | | | | | 41 | |
| | | | |
Tesla, Inc. (a) | | | | | 560 | | | | | | 395 | |
| | | | |
Texas Roadhouse, Inc. | | | | | 543 | | | | | | 42 | |
| | | | |
Thor Industries, Inc. | | | | | 819 | | | | | | 76 | |
| | | | |
Tiffany & Co. | | | | | 156 | | | | | | 20 | |
| | | | |
TJX Cos., Inc. | | | | | 3,215 | | | | | | 220 | |
| | | | |
Toll Brothers, Inc. | | | | | 179 | | | | | | 8 | |
| | | | |
TopBuild Corp. (a) | | | | | 95 | | | | | | 17 | |
| | | | |
Tractor Supply Co. | | | | | 688 | | | | | | 97 | |
| | | | |
Ulta Beauty, Inc. (a) | | | | | 165 | | | | | | 47 | |
| | | | |
Urban Outfitters, Inc. (a) | | | | | 1,706 | | | | | | 44 | |
| | | | |
Vail Resorts, Inc. | | | | | 281 | | | | | | 78 | |
| | | | | | | | | | | | |
| See Accompanying Notes | | | SEMIANNUAL REPORT | | | | | | | DECEMBER 31, 2020 | | | 47 |
| | | | | | | | |
| Schedule of Investments | | PIMCO RAFI Dynamic Multi-Factor U.S. Equity ETF | | (Cont.) | | | | |
| | | | | | | | | | | | |
| | | | | SHARES | | | | | MARKET
VALUE
(000S) | |
| | | | |
VF Corp. | | | | | 773 | | | $ | | | 66 | |
| | | | |
Visteon Corp. (a) | | | | | 331 | | | | | | 42 | |
| | | | |
Wendy’s Co. | | | | | 3,026 | | | | | | 66 | |
| | | | |
Whirlpool Corp. | | | | | 411 | | | | | | 74 | |
| | | | |
Williams-Sonoma, Inc. | | | | | 1,181 | | | | | | 120 | |
| | | | |
Yum! Brands, Inc. | | | | | 1,367 | | | | | | 148 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 11,616 | |
| | | | | | | | | | | | |
| |
| CONSUMER STAPLES 11.9% | |
| | | | |
Altria Group, Inc. | | | | | 3,375 | | | | | | 138 | |
| | | | |
Archer-Daniels-Midland Co. | | | | | 3,395 | | | | | | 171 | |
| | | | |
B&G Foods, Inc. | | | | | 1,073 | | | | | | 30 | |
| | | | |
Boston Beer Co., Inc. ‘A’ (a) | | | | | 125 | | | | | | 124 | |
| | | | |
Brown-Forman Corp. ‘B’ | | | | | 919 | | | | | | 73 | |
| | | | |
Bunge Ltd. | | | | | 1,614 | | | | | | 106 | |
| | | | |
Cal-Maine Foods, Inc. (a) | | | | | 368 | | | | | | 14 | |
| | | | |
Campbell Soup Co. | | | | | 596 | | | | | | 29 | |
| | | | |
Casey’s General Stores, Inc. | | | | | 216 | | | | | | 39 | |
| | | | |
Central Garden & Pet Co. ‘A’ (a) | | | | | 271 | | | | | | 10 | |
| | | | |
Church & Dwight Co., Inc. | | | | | 1,168 | | | | | | 102 | |
| | | | |
Clorox Co. | | | | | 518 | | | | | | 105 | |
| | | | |
Coca-Cola Co. | | | | | 12,815 | | | | | | 703 | |
| | | | |
Colgate-Palmolive Co. | | | | | 3,894 | | | | | | 333 | |
| | | | |
Conagra Brands, Inc. | | | | | 1,760 | | | | | | 64 | |
| | | | |
Constellation Brands, Inc. ‘A’ | | | | | 193 | | | | | | 42 | |
| | | | |
Costco Wholesale Corp. | | | | | 1,725 | | | | | | 650 | |
| | | | |
Coty, Inc. ‘A’ | | | | | 308 | | | | | | 2 | |
| | | | |
Darling Ingredients, Inc. (a) | | | | | 1,050 | | | | | | 60 | |
| | | | |
Edgewell Personal Care Co. | | | | | 456 | | | | | | 16 | |
| | | | |
Estee Lauder Cos., Inc. ‘A’ | | | | | 382 | | | | | | 102 | |
| | | | |
Flowers Foods, Inc. | | | | | 1,005 | | | | | | 23 | |
| | | | |
General Mills, Inc. | | | | | 2,043 | | | | | | 120 | |
| | | | |
Hain Celestial Group, Inc. (a) | | | | | 679 | | | | | | 27 | |
| | | | |
Herbalife Nutrition Ltd. (a) | | | | | 896 | | | | | | 43 | |
| | | | |
Hershey Co. | | | | | 400 | | | | | | 61 | |
| | | | |
Hormel Foods Corp. | | | | | 988 | | | | | | 46 | |
| | | | |
Ingredion, Inc. | | | | | 226 | | | | | | 18 | |
| | | | |
J&J Snack Foods Corp. | | | | | 94 | | | | | | 15 | |
| | | | |
JM Smucker Co. | | | | | 522 | | | | | | 60 | |
| | | | |
Kellogg Co. | | | | | 1,040 | | | | | | 65 | |
| | | | |
Keurig Dr Pepper, Inc. | | | | | 631 | | | | | | 20 | |
| | | | |
Kimberly-Clark Corp. | | | | | 883 | | | | | | 119 | |
| | | | |
Kraft Heinz Co. | | | | | 3,352 | | | | | | 116 | |
| | | | |
Kroger Co. | | | | | 9,366 | | | | | | 297 | |
| | | | |
Lamb Weston Holdings, Inc. | | | | | 430 | | | | | | 34 | |
| | | | |
Lancaster Colony Corp. | | | | | 104 | | | | | | 19 | |
| | | | |
McCormick & Co., Inc. | | | | | 778 | | | | | | 74 | |
| | | | |
Mondelez International, Inc. ‘A’ | | | | | 814 | | | | | | 48 | |
| | | | |
Monster Beverage Corp. (a) | | | | | 1,100 | | | | | | 102 | |
| | | | |
National Beverage Corp. | | | | | 116 | | | | | | 10 | |
| | | | |
Nu Skin Enterprises, Inc. ‘A’ | | | | | 376 | | | | | | 20 | |
| | | | |
PepsiCo, Inc. | | | | | 4,522 | | | | | | 671 | |
| | | | |
Performance Food Group Co. (a) | | | | | 1,300 | | | | | | 62 | |
| | | | |
Philip Morris International, Inc. | | | | | 5,988 | | | | | | 496 | |
| | | | |
Post Holdings, Inc. (a) | | | | | 243 | | | | | | 24 | |
| | | | |
PriceSmart, Inc. | | | | | 137 | | | | | | 12 | |
| | | | |
Procter & Gamble Co. | | | | | 5,390 | | | | | | 750 | |
| | | | |
Rite Aid Corp. (a) | | | | | 2,785 | | | | | | 44 | |
| | | | |
Sanderson Farms, Inc. | | | | | 356 | | | | | | 47 | |
| | | | |
Sprouts Farmers Market, Inc. (a) | | | | | 2,330 | | | | | | 47 | |
| | | | |
Sysco Corp. | | | | | 2,344 | | | | | | 174 | |
| | | | |
TreeHouse Foods, Inc. (a) | | | | | 566 | | | | | | 24 | |
| | | | |
Tyson Foods, Inc. ‘A’ | | | | | 1,243 | | | | | | 80 | |
| | | | |
U.S. Foods Holding Corp. (a) | | | | | 596 | | | | | | 20 | |
| | | | | | | | | | | | |
| | | | | SHARES | | | | | MARKET
VALUE
(000S) | |
| | | | |
Vector Group Ltd. | | | | | 764 | | | $ | | | 9 | |
| | | | |
Walgreens Boots Alliance, Inc. | | | | | 5,047 | | | | | | 201 | |
| | | | |
Walmart, Inc. | | | | | 8,135 | | | | | | 1,173 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 8,084 | |
| | | | | | | | | | | | |
| |
| ENERGY 2.8% | |
| | | | |
Apache Corp. | | | | | 404 | | | | | | 6 | |
| | | | |
Archrock, Inc. | | | | | 1,344 | | | | | | 12 | |
| | | | |
Baker Hughes Co. | | | | | 3,698 | | | | | | 77 | |
| | | | |
Cabot Oil & Gas Corp. | | | | | 2,370 | | | | | | 39 | |
| | | | |
Chevron Corp. | | | | | 4,734 | | | | | | 400 | |
| | | | |
CNX Resources Corp. (a) | | | | | 3,451 | | | | | | 37 | |
| | | | |
ConocoPhillips | | | | | 2,066 | | | | | | 83 | |
| | | | |
Dril-Quip, Inc. (a) | | | | | 283 | | | | | | 8 | |
| | | | |
EQT Corp. | | | | | 790 | | | | | | 10 | |
| | | | |
Exxon Mobil Corp. | | | | | 7,192 | | | | | | 296 | |
| | | | |
Helmerich & Payne, Inc. | | | | | 213 | | | | | | 5 | |
| | | | |
Hess Corp. | | | | | 605 | | | | | | 32 | |
| | | | |
HollyFrontier Corp. | | | | | 2,318 | | | | | | 60 | |
| | | | |
Kinder Morgan, Inc. | | | | | 1,456 | | | | | | 20 | |
| | | | |
Marathon Oil Corp. | | | | | 3,864 | | | | | | 26 | |
| | | | |
Marathon Petroleum Corp. | | | | | 4,412 | | | | | | 183 | |
| | | | |
Murphy Oil Corp. | | | | | 1,071 | | | | | | 13 | |
| | | | |
NOV, Inc. | | | | | 3,498 | | | | | | 48 | |
| | | | |
Oceaneering International, Inc. (a) | | | | | 1,352 | | | | | | 11 | |
| | | | |
Patterson-UTI Energy, Inc. | | | | | 3,216 | | | | | | 17 | |
| | | | |
PBF Energy, Inc. ‘A’ | | | | | 885 | | | | | | 6 | |
| | | | |
Phillips 66 | | | | | 2,980 | | | | | | 208 | |
| | | | |
Range Resources Corp. | | | | | 4,032 | | | | | | 27 | |
| | | | |
Renewable Energy Group, Inc. (a) | | | | | 755 | | | | | | 53 | |
| | | | |
SM Energy Co. | | | | | 2,653 | | | | | | 16 | |
| | | | |
Targa Resources Corp. | | | | | 313 | | | | | | 8 | |
| | | | |
Transocean Ltd. (a) | | | | | 3,007 | | | | | | 7 | |
| | | | |
Valero Energy Corp. | | | | | 3,341 | | | | | | 189 | |
| | | | |
World Fuel Services Corp. | | | | | 488 | | | | | | 15 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 1,912 | |
| | | | | | | | | | | | |
| |
| FINANCIALS 6.1% | |
| | | | |
Affiliated Managers Group, Inc. | | | | | 353 | | | | | | 36 | |
| | | | |
Aflac, Inc. | | | | | 514 | | | | | | 23 | |
| | | | |
Alleghany Corp. | | | | | 11 | | | | | | 7 | |
| | | | |
Allstate Corp. | | | | | 1,418 | | | | | | 156 | |
| | | | |
Ally Financial, Inc. | | | | | 2,098 | | | | | | 75 | |
| | | | |
American Financial Group, Inc. | | | | | 164 | | | | | | 14 | |
| | | | |
American International Group, Inc. | | | | | 7,713 | | | | | | 292 | |
| | | | |
Arthur J Gallagher & Co. | | | | | 551 | | | | | | 68 | |
| | | | |
Artisan Partners Asset Management, Inc. ‘A’ | | | | | 495 | | | | | | 25 | |
| | | | |
BlackRock, Inc. | | | | | 222 | | | | | | 160 | |
| | | | |
Blackstone Group, Inc. | | | | | 859 | | | | | | 56 | |
| | | | |
Brighthouse Financial, Inc. (a) | | | | | 621 | | | | | | 22 | |
| | | | |
Brown & Brown, Inc. | | | | | 901 | | | | | | 43 | |
| | | | |
Cannae Holdings, Inc. (a) | | | | | 426 | | | | | | 19 | |
| | | | |
Capital One Financial Corp. | | | | | 2,200 | | | | | | 217 | |
| | | | |
Capitol Federal Financial, Inc. | | | | | 884 | | | | | | 11 | |
| | | | |
Cincinnati Financial Corp. | | | | | 84 | | | | | | 7 | |
| | | | |
CIT Group, Inc. | | | | | 745 | | | | | | 27 | |
| | | | |
CME Group, Inc. | | | | | 386 | | | | | | 70 | |
| | | | |
CNO Financial Group, Inc. | | | | | 952 | | | | | | 21 | |
| | | | |
Discover Financial Services | | | | | 674 | | | | | | 61 | |
| | | | |
Erie Indemnity Co. ‘A’ | | | | | 56 | | | | | | 14 | |
| | | | |
Evercore, Inc. ‘A’ | | | | | 321 | | | | | | 35 | |
| | | | |
FactSet Research Systems, Inc. | | | | | 75 | | | | | | 25 | |
| | | | |
Federated Investors, Inc. ‘B’ | | | | | 715 | | | | | | 21 | |
| | | | | | | | | | | | |
| | | | | SHARES | | | | | MARKET
VALUE
(000S) | |
| | | | |
Fidelity National Financial, Inc. | | | | | 591 | | | $ | | | 23 | |
| | | | |
First American Financial Corp. | | | | | 915 | | | | | | 47 | |
| | | | |
FirstCash, Inc. | | | | | 236 | | | | | | 17 | |
| | | | |
Franklin Resources, Inc. | | | | | 3,025 | | | | | | 76 | |
| | | | |
Genworth Financial, Inc. ‘A’ (a) | | | | | 4,840 | | | | | | 18 | |
| | | | |
Goldman Sachs Group, Inc. | | | | | 334 | | | | | | 88 | |
| | | | |
Hanover Insurance Group, Inc. | | | | | 234 | | | | | | 27 | |
| | | | |
Houlihan Lokey, Inc. | | | | | 345 | | | | | | 23 | |
| | | | |
Interactive Brokers Group, Inc. ‘A’ | | | | | 293 | | | | | | 18 | |
| | | | |
Intercontinental Exchange, Inc. | | | | | 562 | | | | | | 65 | |
| | | | |
Invesco Ltd. | | | | | 2,301 | | | | | | 40 | |
| | | | |
Jefferies Financial Group, Inc. | | | | | 644 | | | | | | 16 | |
| | | | |
Kemper Corp. | | | | | 207 | | | | | | 16 | |
| | | | |
Lincoln National Corp. | | | | | 1,047 | | | | | | 53 | |
| | | | |
Loews Corp. | | | | | 957 | | | | | | 43 | |
| | | | |
LPL Financial Holdings, Inc. | | | | | 595 | | | | | | 62 | |
| | | | |
Markel Corp. (a) | | | | | 22 | | | | | | 23 | |
| | | | |
MarketAxess Holdings, Inc. | | | | | 184 | | | | | | 105 | |
| | | | |
Marsh & McLennan Cos., Inc. | | | | | 1,574 | | | | | | 184 | |
| | | | |
Mercury General Corp. | | | | | 197 | | | | | | 10 | |
| | | | |
MetLife, Inc. | | | | | 1,346 | | | | | | 63 | |
| | | | |
Moelis & Co. ‘A’ | | | | | 384 | | | | | | 18 | |
| | | | |
Moody’s Corp. | | | | | 154 | | | | | | 45 | |
| | | | |
Morgan Stanley | | | | | 2,109 | | | | | | 145 | |
| | | | |
Morningstar, Inc. | | | | | 94 | | | | | | 22 | |
| | | | |
MSCI, Inc. | | | | | 487 | | | | | | 217 | |
| | | | |
Nasdaq, Inc. | | | | | 117 | | | | | | 16 | |
| | | | |
National General Holdings Corp. | | | | | 654 | | | | | | 22 | |
| | | | |
Navient Corp. | | | | | 2,024 | | | | | | 20 | |
| | | | |
New York Community Bancorp, Inc. | | | | | 1,901 | | | | | | 20 | |
| | | | |
Old Republic International Corp. | | | | | 950 | | | | | | 19 | |
| | | | |
PacWest Bancorp | | | | | 1,085 | | | | | | 28 | |
| | | | |
PRA Group, Inc. (a) | | | | | 294 | | | | | | 12 | |
| | | | |
Progressive Corp. | | | | | 1,776 | | | | | | 176 | |
| | | | |
Prudential Financial, Inc. | | | | | 496 | | | | | | 39 | |
| | | | |
RLI Corp. | | | | | 156 | | | | | | 16 | |
| | | | |
S&P Global, Inc. | | | | | 610 | | | | | | 201 | |
| | | | |
Santander Consumer USA Holdings, Inc. | | | | | 609 | | | | | | 13 | |
| | | | |
SEI Investments Co. | | | | | 560 | | | | | | 32 | |
| | | | |
SLM Corp. | | | | | 1,081 | | | | | | 13 | |
| | | | |
Stewart Information Services Corp. | | | | | 242 | | | | | | 12 | |
| | | | |
SVB Financial Group (a) | | | | | 150 | | | | | | 58 | |
| | | | |
T Rowe Price Group, Inc. | | | | | 643 | | | | | | 97 | |
| | | | |
Tradeweb Markets, Inc. | | | | | 168 | | | | | | 10 | |
| | | | |
Travelers Cos., Inc. | | | | | 1,656 | | | | | | 232 | |
| | | | |
Unum Group | | | | | 805 | | | | | | 18 | |
| | | | |
Virtu Financial, Inc. | | | | | 640 | | | | | | 16 | |
| | | | |
Voya Financial, Inc. | | | | | 741 | | | | | | 44 | |
| | | | |
Waddell & Reed Financial, Inc. ‘A’ | | | | | 956 | | | | | | 24 | |
| | | | |
White Mountains Insurance Group Ltd. | | | | | 17 | | | | | | 17 | |
| | | | |
WR Berkley Corp. | | | | | 315 | | | | | | 21 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 4,145 | |
| | | | | | | | | | | | |
| |
| HEALTH CARE 13.7% | |
| | | | |
Abbott Laboratories | | | | | 2,715 | | | | | | 297 | |
| | | | |
AbbVie, Inc. | | | | | 6,052 | | | | | | 649 | |
| | | | |
Acadia Healthcare Co., Inc. (a) | | | | | 205 | | | | | | 10 | |
| | | | |
Agilent Technologies, Inc. | | | | | 478 | | | | | | 57 | |
| | | | |
Alexion Pharmaceuticals, Inc. (a) | | | | | 327 | | | | | | 51 | |
| | | | |
Align Technology, Inc. (a) | | | | | 251 | | | | | | 134 | |
| | | | |
Amedisys, Inc. (a) | | | | | 131 | | | | | | 38 | |
| | | | |
AmerisourceBergen Corp. | | | | | 231 | | | | | | 23 | |
| | | | | | |
| 48 | | PIMCO EQUITY SERIES | | | See Accompanying Notes | |
| | | | | | | | |
| | | | | | December 31, 2020 | | (Unaudited) |
| | | | | | | | | | | | |
| | | | | SHARES | | | | | MARKET
VALUE
(000S) | |
| | | | |
Amgen, Inc. | | | | | 1,113 | | | $ | | | 256 | |
| | | | |
AMN Healthcare Services, Inc. (a) | | | | | 201 | | | | | | 14 | |
| | | | |
Anthem, Inc. | | | | | 467 | | | | | | 150 | |
| | | | |
Baxter International, Inc. | | | | | 1,469 | | | | | | 118 | |
| | | | |
Becton Dickinson and Co. | | | | | 171 | | | | | | 43 | |
| | | | |
Bio-Rad Laboratories, Inc. ‘A’ (a) | | | | | 150 | | | | | | 87 | |
| | | | |
Bio-Techne Corp. | | | | | 69 | | | | | | 22 | |
| | | | |
Biogen, Inc. (a) | | | | | 303 | | | | | | 74 | |
| | | | |
Bristol-Myers Squibb Co. | | | | | 1,612 | | | | | | 100 | |
| | | | |
Bruker Corp. | | | | | 303 | | | | | | 16 | |
| | | | |
Cardinal Health, Inc. | | | | | 2,449 | | | | | | 131 | |
| | | | |
Catalent, Inc. (a) | | | | | 725 | | | | | | 75 | |
| | | | |
Centene Corp. (a) | | | | | 885 | | | | | | 53 | |
| | | | |
Cerner Corp. | | | | | 433 | | | | | | 34 | |
| | | | |
Charles River Laboratories International, Inc. (a) | | | | | 142 | | | | | | 36 | |
| | | | |
Chemed Corp. | | | | | 81 | | | | | | 43 | |
| | | | |
Cigna Corp. | | | | | 563 | | | | | | 117 | |
| | | | |
Cooper Cos., Inc. | | | | | 117 | | | | | | 43 | |
| | | | |
CVS Health Corp. | | | | | 10,368 | | | | | | 708 | |
| | | | |
Danaher Corp. | | | | | 1,708 | | | | | | 379 | |
| | | | |
DaVita, Inc. (a) | | | | | 645 | | | | | | 76 | |
| | | | |
Dentsply Sirona, Inc. | | | | | 462 | | | | | | 24 | |
| | | | |
Edwards Lifesciences Corp. (a) | | | | | 406 | | | | | | 37 | |
| | | | |
Eli Lilly & Co. | | | | | 531 | | | | | | 90 | |
| | | | |
Encompass Health Corp. | | | | | 674 | | | | | | 56 | |
| | | | |
Gilead Sciences, Inc. | | | | | 9,069 | | | | | | 528 | |
| | | | |
HCA Healthcare, Inc. | | | | | 778 | | | | | | 128 | |
| | | | |
Henry Schein, Inc. (a) | | | | | 369 | | | | | | 25 | |
| | | | |
Hologic, Inc. (a) | | | | | 739 | | | | | | 54 | |
| | | | |
Humana, Inc. | | | | | 621 | | | | | | 255 | |
| | | | |
Intuitive Surgical, Inc. (a) | | | | | 181 | | | | | | 148 | |
| | | | |
Johnson & Johnson | | | | | 5,079 | | | | | | 799 | |
| | | | |
Laboratory Corp. of America Holdings (a) | | | | | 93 | | | | | | 19 | |
| | | | |
LHC Group, Inc. (a) | | | | | 95 | | | | | | 20 | |
| | | | |
Magellan Health, Inc. (a) | | | | | 144 | | | | | | 12 | |
| | | | |
Masimo Corp. (a) | | | | | 336 | | | | | | 90 | |
| | | | |
McKesson Corp. | | | | | 1,226 | | | | | | 213 | |
| | | | |
MEDNAX, Inc. (a) | | | | | 890 | | | | | | 22 | |
| | | | |
Merck & Co., Inc. | | | | | 7,606 | | | | | | 622 | |
| | | | |
Mettler-Toledo International, Inc. (a) | | | | | 115 | | | | | | 131 | |
| | | | |
Molina Healthcare, Inc. (a) | | | | | 325 | | | | | | 69 | |
| | | | |
Myriad Genetics, Inc. (a) | | | | | 648 | | | | | | 13 | |
| | | | |
Patterson Cos., Inc. | | | | | 855 | | | | | | 25 | |
| | | | |
PerkinElmer, Inc. | | | | | 323 | | | | | | 46 | |
| | | | |
Pfizer, Inc. | | | | | 10,787 | | | | | | 397 | |
| | | | |
Premier, Inc. ‘A’ | | | | | 510 | | | | | | 18 | |
| | | | |
Quest Diagnostics, Inc. | | | | | 382 | | | | | | 46 | |
| | | | |
Regeneron Pharmaceuticals, Inc. (a) | | | | | 125 | | | | | | 60 | |
| | | | |
ResMed, Inc. | | | | | 668 | | | | | | 142 | |
| | | | |
Select Medical Holdings Corp. (a) | | | | | 526 | | | | | | 15 | |
| | | | |
Steris PLC | | | | | 174 | | | | | | 33 | |
| | | | |
Teleflex, Inc. | | | | | 105 | | | | | | 43 | |
| | | | |
Tenet Healthcare Corp. (a) | | | | | 1,408 | | | | | | 56 | |
| | | | |
Thermo Fisher Scientific, Inc. | | | | | 617 | | | | | | 287 | |
| | | | |
United Therapeutics Corp. (a) | | | | | 506 | | | | | | 77 | |
| | | | |
UnitedHealth Group, Inc. | | | | | 1,471 | | | | | | 516 | |
| | | | |
Varian Medical Systems, Inc. (a) | | | | | 352 | | | | | | 62 | |
| | | | |
Waters Corp. (a) | | | | | 254 | | | | | | 63 | |
| | | | |
West Pharmaceutical Services, Inc. | | | | | 263 | | | | | | 75 | |
| | | | |
Zoetis, Inc. | | | | | 998 | | | | | | 165 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 9,315 | |
| | | | | | | | | | | | |
| |
| | | | | | | | | | | | |
| | | | | SHARES | | | | | MARKET
VALUE
(000S) | |
| INDUSTRIALS 11.3% | |
| | | | |
3M Co. | | | | | 1,669 | | | $ | | | 292 | |
| | | | |
ABM Industries, Inc. | | | | | 359 | | | | | | 14 | |
| | | | |
Acuity Brands, Inc. | | | | | 246 | | | | | | 30 | |
| | | | |
AECOM (a) | | | | | 631 | | | | | | 31 | |
| | | | |
AGCO Corp. | | | | | 393 | | | | | | 41 | |
| | | | |
Allegiant Travel Co. | | | | | 126 | | | | | | 24 | |
| | | | |
Allison Transmission Holdings, Inc. | | | | | 1,091 | | | | | | 47 | |
| | | | |
Altra Industrial Motion Corp. | | | | | 185 | | | | | | 10 | |
| | | | |
AMERCO | | | | | 38 | | | | | | 17 | |
| | | | |
American Airlines Group, Inc. | | | | | 517 | | | | | | 8 | |
| | | | |
AO Smith Corp. | | | | | 990 | | | | | | 54 | |
| | | | |
Applied Industrial Technologies, Inc. | | | | | 179 | | | | | | 14 | |
| | | | |
Arcosa, Inc. | | | | | 272 | | | | | | 15 | |
| | | | |
Armstrong World Industries, Inc. | | | | | 206 | | | | | | 15 | |
| | | | |
Atlas Air Worldwide Holdings, Inc. (a) | | | | | 535 | | | | | | 29 | |
| | | | |
Avis Budget Group, Inc. (a) | | | | | 2,178 | | | | | | 81 | |
| | | | |
BMC Stock Holdings, Inc. (a) | | | | | 193 | | | | | | 10 | |
| | | | |
Boeing Co. | | | | | 882 | | | | | | 189 | |
| | | | |
Builders FirstSource, Inc. (a) | | | | | 333 | | | | | | 14 | |
| | | | |
BWX Technologies, Inc. | | | | | 456 | | | | | | 27 | |
| | | | |
Caterpillar, Inc. | | | | | 846 | | | | | | 154 | |
| | | | |
CH Robinson Worldwide, Inc. | | | | | 1,095 | | | | | | 103 | |
| | | | |
Cintas Corp. | | | | | 382 | | | | | | 135 | |
| | | | |
Colfax Corp. (a) | | | | | 306 | | | | | | 12 | |
| | | | |
Copart, Inc. (a) | | | | | 1,300 | | | | | | 165 | |
| | | | |
CoreLogic, Inc. | | | | | 309 | | | | | | 24 | |
| | | | |
CoStar Group, Inc. (a) | | | | | 77 | | | | | | 71 | |
| | | | |
Covanta Holding Corp. | | | | | 816 | | | | | | 11 | |
| | | | |
Crane Co. | | | | | 223 | | | | | | 17 | |
| | | | |
CSX Corp. | | | | | 2,507 | | | | | | 228 | |
| | | | |
Cummins, Inc. | | | | | 705 | | | | | | 160 | |
| | | | |
Curtiss-Wright Corp. | | | | | 190 | | | | | | 22 | |
| | | | |
Deere & Co. | | | | | 487 | | | | | | 131 | |
| | | | |
Delta Air Lines, Inc. | | | | | 476 | | | | | | 19 | |
| | | | |
Donaldson Co., Inc. | | | | | 466 | | | | | | 26 | |
| | | | |
Dycom Industries, Inc. (a) | | | | | 213 | | | | | | 16 | |
| | | | |
Eaton Corp. PLC | | | | | 621 | | | | | | 75 | |
| | | | |
Emerson Electric Co. | | | | | 1,636 | | | | | | 131 | |
| | | | |
Equifax, Inc. | | | | | 352 | | | | | | 68 | |
| | | | |
Expeditors International of Washington, Inc. | | | | | 1,089 | | | | | | 104 | |
| | | | |
Fastenal Co. | | | | | 2,029 | | | | | | 99 | |
| | | | |
FedEx Corp. | | | | | 376 | | | | | | 98 | |
| | | | |
Fluor Corp. | | | | | 1,681 | | | | | | 27 | |
| | | | |
Fortune Brands Home & Security, Inc. | | | | | 216 | | | | | | 19 | |
| | | | |
Franklin Electric Co., Inc. | | | | | 159 | | | | | | 11 | |
| | | | |
FTI Consulting, Inc. (a) | | | | | 449 | | | | | | 50 | |
| | | | |
GATX Corp. | | | | | 220 | | | | | | 18 | |
| | | | |
Generac Holdings, Inc. (a) | | | | | 602 | | | | | | 137 | |
| | | | |
General Electric Co. | | | | | 18,745 | | | | | | 202 | |
| | | | |
Graco, Inc. | | | | | 587 | | | | | | 42 | |
| | | | |
Granite Construction, Inc. | | | | | 348 | | | | | | 9 | |
| | | | |
Greenbrier Cos., Inc. | | | | | 405 | | | | | | 15 | |
| | | | |
Hawaiian Holdings, Inc. | | | | | 1,142 | | | | | | 20 | |
| | | | |
Healthcare Services Group, Inc. | | | | | 534 | | | | | | 15 | |
| | | | |
Herman Miller, Inc. | | | | | 527 | | | | | | 18 | |
| | | | |
Hexcel Corp. | | | | | 486 | | | | | | 24 | |
| | | | |
Hillenbrand, Inc. | | | | | 416 | | | | | | 17 | |
| | | | |
Hub Group, Inc. ‘A’ (a) | | | | | 229 | | | | | | 13 | |
| | | | |
Hubbell, Inc. | | | | | 111 | | | | | | 17 | |
| | | | |
Huntington Ingalls Industries, Inc. | | | | | 37 | | | | | | 6 | |
| | | | |
IAA, Inc. (a) | | | | | 623 | | | | | | 40 | |
| | | | | | | | | | | | |
| | | | | SHARES | | | | | MARKET
VALUE
(000S) | |
| | | | |
IDEX Corp. | | | | | 364 | | | $ | | | 73 | |
| | | | |
Illinois Tool Works, Inc. | | | | | 1,141 | | | | | | 233 | |
| | | | |
ITT, Inc. | | | | | 351 | | | | | | 27 | |
| | | | |
Jacobs Engineering Group, Inc. | | | | | 641 | | | | | | 70 | |
| | | | |
JB Hunt Transport Services, Inc. | | | | | 297 | | | | | | 41 | |
| | | | |
JetBlue Airways Corp. (a) | | | | | 1,569 | | | | | | 23 | |
| | | | |
Kansas City Southern | | | | | 146 | | | | | | 30 | |
| | | | |
KAR Auction Services, Inc. | | | | | 948 | | | | | | 18 | |
| | | | |
KBR, Inc. | | | | | 1,409 | | | | | | 44 | |
| | | | |
Knight-Swift Transportation Holdings, Inc. | | | | | 571 | | | | | | 24 | |
| | | | |
L3Harris Technologies, Inc. | | | | | 340 | | | | | | 64 | |
| | | | |
Landstar System, Inc. | | | | | 319 | | | | | | 43 | |
| | | | |
Lennox International, Inc. | | | | | 285 | | | | | | 78 | |
| | | | |
Lincoln Electric Holdings, Inc. | | | | | 306 | | | | | | 36 | |
| | | | |
Lockheed Martin Corp. | | | | | 745 | | | | | | 264 | |
| | | | |
Macquarie Infrastructure Corp. | | | | | 684 | | | | | | 26 | |
| | | | |
ManpowerGroup, Inc. | | | | | 422 | | | | | | 38 | |
| | | | |
Masco Corp. | | | | | 1,224 | | | | | | 67 | |
| | | | |
Masonite International Corp. (a) | | | | | 167 | | | | | | 16 | |
| | | | |
Matson, Inc. | | | | | 216 | | | | | | 12 | |
| | | | |
Meritor, Inc. (a) | | | | | 529 | | | | | | 15 | |
| | | | |
Middleby Corp. (a) | | | | | 211 | | | | | | 27 | |
| | | | |
Moog, Inc. ‘A’ | | | | | 140 | | | | | | 11 | |
| | | | |
MSC Industrial Direct Co., Inc. ‘A’ | | | | | 417 | | | | | | 35 | |
| | | | |
Neilsen Holdings PLC | | | | | 407 | | | | | | 8 | |
| | | | |
Nordson Corp. | | | | | 219 | | | | | | 44 | |
| | | | |
Norfolk Southern Corp. | | | | | 395 | | | | | | 94 | |
| | | | |
Northrop Grumman Corp. | | | | | 408 | | | | | | 124 | |
| | | | |
Old Dominion Freight Line, Inc. | | | | | 523 | | | | | | 102 | |
| | | | |
Owens Corning | | | | | 195 | | | | | | 15 | |
| | | | |
Parker-Hannifin Corp. | | | | | 200 | | | | | | 54 | |
| | | | |
Quanta Services, Inc. | | | | | 903 | | | | | | 65 | |
| | | | |
Regal Beloit Corp. | | | | | 109 | | | | | | 13 | |
| | | | |
Republic Services, Inc. | | | | | 359 | | | | | | 35 | |
| | | | |
Resideo Technologies, Inc. (a) | | | | | 700 | | | | | | 15 | |
| | | | |
Robert Half International, Inc. | | | | | 509 | | | | | | 32 | |
| | | | |
Rockwell Automation, Inc. | | | | | 439 | | | | | | 110 | |
| | | | |
Rollins, Inc. | | | | | 1,576 | | | | | | 62 | |
| | | | |
Rush Enterprises, Inc. ‘A’ | | | | | 216 | | | | | | 9 | |
| | | | |
Ryder System, Inc. | | | | | 288 | | | | | | 18 | |
| | | | |
Saia, Inc. (a) | | | | | 76 | | | | | | 14 | |
| | | | |
SkyWest, Inc. | | | | | 479 | | | | | | 19 | |
| | | | |
Southwest Airlines Co. | | | | | 277 | | | | | | 13 | |
| | | | |
SPX FLOW, Inc. (a) | | | | | 178 | | | | | | 10 | |
| | | | |
Stericycle, Inc. (a) | | | | | 404 | | | | | | 28 | |
| | | | |
Teledyne Technologies, Inc. (a) | | | | | 90 | | | | | | 35 | |
| | | | |
Terex Corp. | | | | | 701 | | | | | | 24 | |
| | | | |
Tetra Tech, Inc. | | | | | 127 | | | | | | 15 | |
| | | | |
Timken Co. | | | | | 576 | | | | | | 45 | |
| | | | |
Toro Co. | | | | | 471 | | | | | | 45 | |
| | | | |
TransDigm Group, Inc. | | | | | 39 | | | | | | 24 | |
| | | | |
Trinity Industries, Inc. | | | | | 975 | | | | | | 26 | |
| | | | |
Uber Technologies, Inc. (a) | | | | | 3,239 | | | | | | 165 | |
| | | | |
UFP Industries, Inc. | | | | | 303 | | | | | | 17 | |
| | | | |
Union Pacific Corp. | | | | | 1,984 | | | | | | 413 | |
| | | | |
United Airlines Holdings, Inc. (a) | | | | | 74 | | | | | | 3 | |
| | | | |
United Parcel Service, Inc. ‘B’ | | | | | 3,171 | | | | | | 534 | |
| | | | |
United Rentals, Inc. (a) | | | | | 112 | | | | | | 26 | |
| | | | |
Verisk Analytics, Inc. | | | | | 645 | | | | | | 134 | |
| | | | |
Waste Connections, Inc. | | | | | 649 | | | | | | 67 | |
| | | | |
Waste Management, Inc. | | | | | 639 | | | | | | 75 | |
| | | | |
Watsco, Inc. | | | | | 189 | | | | | | 43 | |
| | | | |
Werner Enterprises, Inc. | | | | | 784 | | | | | | 31 | |
| | | | |
WESCO International, Inc. (a) | | | | | 623 | | | | | | 49 | |
| | | | | | | | | | | | |
| See Accompanying Notes | | | SEMIANNUAL REPORT | | | | | | | DECEMBER 31, 2020 | | | 49 |
| | | | | | | | |
| Schedule of Investments | | PIMCO RAFI Dynamic Multi-Factor U.S. Equity ETF | | (Cont.) | | | | |
| | | | | | | | | | | | |
| | | | | SHARES | | | | | MARKET
VALUE
(000S) | |
| | | | |
WW Grainger, Inc. | | | | | 214 | | | $ | | | 87 | |
| | | | |
XPO Logistics, Inc. (a) | | | | | 263 | | | | | | 31 | |
| | | | |
Xylem, Inc. | | | | | 818 | | | | | | 83 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 7,702 | |
| | | | | | | | | | | | |
| |
| INFORMATION TECHNOLOGY 19.1% | |
| | | | |
Activision Blizzard, Inc. | | | | | 1,192 | | | | | | 111 | |
| | | | |
Adobe, Inc. (a) | | | | | 747 | | | | | | 374 | |
| | | | |
Advanced Micro Devices, Inc. (a) | | | | | 3,238 | | | | | | 297 | |
| | | | |
Akamai Technologies, Inc. (a) | | | | | 463 | | | | | | 49 | |
| | | | |
Alliance Data Systems Corp. | | | | | 165 | | | | | | 12 | |
| | | | |
Amdocs Ltd. | | | | | 411 | | | | | | 29 | |
| | | | |
Amkor Technology, Inc. | | | | | 1,308 | | | | | | 20 | |
| | | | |
ANSYS, Inc. (a) | | | | | 211 | | | | | | 77 | |
| | | | |
Apple, Inc. | | | | | 13,447 | | | | | | 1,784 | |
| | | | |
Applied Materials, Inc. | | | | | 2,090 | | | | | | 180 | |
| | | | |
Arista Networks, Inc. (a) | | | | | 158 | | | | | | 46 | |
| | | | |
Arrow Electronics, Inc. (a) | | | | | 575 | | | | | | 56 | |
| | | | |
Aspen Technology, Inc. (a) | | | | | 89 | | | | | | 12 | |
| | | | |
Autodesk, Inc. (a) | | | | | 631 | | | | | | 193 | |
| | | | |
Automatic Data Processing, Inc. | | | | | 403 | | | | | | 71 | |
| | | | |
Avnet, Inc. | | | | | 806 | | | | | | 28 | |
| | | | |
Black Knight, Inc. (a) | | | | | 681 | | | | | | 60 | |
| | | | |
Booz Allen Hamilton Holding Corp. | | | | | 814 | | | | | | 71 | |
| | | | |
Broadcom, Inc. | | | | | 1,026 | | | | | | 449 | |
| | | | |
Broadridge Financial Solutions, Inc. | | | | | 481 | | | | | | 74 | |
| | | | |
CACI International, Inc. ‘A’ (a) | | | | | 179 | | | | | | 45 | |
| | | | |
Cadence Design Systems, Inc. (a) | | | | | 1,310 | | | | | | 179 | |
| | | | |
CDK Global, Inc. | | | | | 628 | | | | | | 32 | |
| | | | |
CDW Corp. | | | | | 124 | | | | | | 16 | |
| | | | |
Cirrus Logic, Inc. (a) | | | | | 297 | | | | | | 24 | |
| | | | |
Citrix Systems, Inc. | | | | | 549 | | | | | | 71 | |
| | | | |
Cognex Corp. | | | | | 422 | | | | | | 34 | |
| | | | |
Cognizant Technology Solutions Corp. ‘A’ | | | | | 831 | | | | | | 68 | |
| | | | |
CommScope Holding Co., Inc. (a) | | | | | 831 | | | | | | 11 | |
| | | | |
Concentrix Corp. (a) | | | | | 171 | | | | | | 17 | |
| | | | |
Corning, Inc. | | | | | 5,099 | | | | | | 184 | |
| | | | |
Cree, Inc. (a) | | | | | 1,118 | | | | | | 118 | |
| | | | |
Dell Technologies, Inc. ‘C’ (a) | | | | | 328 | | | | | | 24 | |
| | | | |
Dolby Laboratories, Inc. ‘A’ | | | | | 465 | | | | | | 45 | |
| | | | |
DXC Technology Co. | | | | | 1,094 | | | | | | 28 | |
| | | | |
Electronic Arts, Inc. | | | | | 220 | | | | | | 32 | |
| | | | |
Entegris, Inc. | | | | | 388 | | | | | | 37 | |
| | | | |
EPAM Systems, Inc. (a) | | | | | 117 | | | | | | 42 | |
| | | | |
F5 Networks, Inc. (a) | | | | | 234 | | | | | | 41 | |
| | | | |
Fair Isaac Corp. (a) | | | | | 99 | | | | | | 51 | |
| | | | |
Fidelity National Information Services, Inc. | | | | | 92 | | | | | | 13 | |
| | | | |
First Solar, Inc. (a) | | | | | 216 | | | | | | 21 | |
| | | | |
Fiserv, Inc. (a) | | | | | 617 | | | | | | 70 | |
| | | | |
FleetCor Technologies, Inc. (a) | | | | | 46 | | | | | | 13 | |
| | | | |
Flex Ltd. (a) | | | | | 1,061 | | | | | | 19 | |
| | | | |
FLIR Systems, Inc. | | | | | 513 | | | | | | 22 | |
| | | | |
Gartner, Inc. (a) | | | | | 96 | | | | | | 15 | |
| | | | |
Genpact Ltd. | | | | | 945 | | | | | | 39 | |
| | | | |
Hewlett Packard Enterprise Co. | | | | | 10,617 | | | | | | 126 | |
| | | | |
HP, Inc. | | | | | 4,963 | | | | | | 122 | |
| | | | |
II-VI, Inc. (a) | | | | | 288 | | | | | | 22 | |
| | | | |
Insight Enterprises, Inc. (a) | | | | | 245 | | | | | | 19 | |
| | | | |
International Business Machines Corp. | | | | | 6,550 | | | | | | 824 | |
| | | | |
Intuit, Inc. | | | | | 456 | | | | | | 173 | |
| | | | |
IPG Photonics Corp. (a) | | | | | 128 | | | | | | 29 | |
| | | | |
Jabil, Inc. | | | | | 818 | | | | | | 35 | |
| | | | | | | | | | | | |
| | | | | SHARES | | | | | MARKET
VALUE
(000S) | |
| | | | |
Jack Henry & Associates, Inc. | | | | | 501 | | | $ | | | 81 | |
| | | | |
Juniper Networks, Inc. | | | | | 2,603 | | | | | | 59 | |
| | | | |
KLA Corp. | | | | | 584 | | | | | | 151 | |
| | | | |
Lam Research Corp. | | | | | 467 | | | | | | 221 | |
| | | | |
Littelfuse, Inc. | | | | | 52 | | | | | | 13 | |
| | | | |
LiveRamp Holdings, Inc. (a) | | | | | 185 | | | | | | 13 | |
| | | | |
Manhattan Associates, Inc. (a) | | | | | 215 | | | | | | 23 | |
| | | | |
ManTech International Corp. ‘A’ | | | | | 172 | | | | | | 15 | |
| | | | |
Marvell Technology Group Ltd. | | | | | 1,928 | | | | | | 92 | |
| | | | |
Mastercard, Inc. ‘A’ | | | | | 583 | | | | | | 208 | |
| | | | |
Maxim Integrated Products, Inc. | | | | | 891 | | | | | | 79 | |
| | | | |
MAXIMUS, Inc. | | | | | 365 | | | | | | 27 | |
| | | | |
Microchip Technology, Inc. | | | | | 398 | | | | | | 55 | |
| | | | |
Microsoft Corp. | | | | | 3,506 | | | | | | 780 | |
| | | | |
Motorola Solutions, Inc. | | | | | 1,048 | | | | | | 178 | |
| | | | |
NCR Corp. (a) | | | | | 841 | | | | | | 32 | |
| | | | |
NetScout Systems, Inc. (a) | | | | | 371 | | | | | | 10 | |
| | | | |
NortonLifeLock, Inc. | | | | | 2,342 | | | | | | 49 | |
| | | | |
Nuance Communications, Inc. (a) | | | | | 811 | | | | | | 36 | |
| | | | |
NVIDIA Corp. | | | | | 1,018 | | | | | | 532 | |
| | | | |
Oracle Corp. | | | | | 5,125 | | | | | | 331 | |
| | | | |
Paychex, Inc. | | | | | 665 | | | | | | 62 | |
| | | | |
PayPal Holdings, Inc. (a) | | | | | 1,827 | | | | | | 428 | |
| | | | |
Pegasystems, Inc. | | | | | 115 | | | | | | 15 | |
| | | | |
Plexus Corp. (a) | | | | | 156 | | | | | | 12 | |
| | | | |
PTC, Inc. (a) | | | | | 305 | | | | | | 36 | |
| | | | |
QUALCOMM, Inc. | | | | | 4,780 | | | | | | 728 | |
| | | | |
Sabre Corp. | | | | | 925 | | | | | | 11 | |
| | | | |
salesforce.com, Inc. (a) | | | | | 1,366 | | | | | | 304 | |
| | | | |
Sanmina Corp. (a) | | | | | 432 | | | | | | 14 | |
| | | | |
Seagate Technology PLC | | | | | 3,154 | | | | | | 196 | |
| | | | |
Skyworks Solutions, Inc. | | | | | 366 | | | | | | 56 | |
| | | | |
Synaptics, Inc. (a) | | | | | 348 | | | | | | 33 | |
| | | | |
SYNNEX Corp. | | | | | 171 | | | | | | 14 | |
| | | | |
Synopsys, Inc. (a) | | | | | 306 | | | | | | 79 | |
| | | | |
Teradata Corp. (a) | | | | | 1,072 | | | | | | 24 | |
| | | | |
Teradyne, Inc. | | | | | 1,006 | | | | | | 121 | |
| | | | |
Texas Instruments, Inc. | | | | | 3,214 | | | | | | 527 | |
| | | | |
Trimble, Inc. (a) | | | | | 449 | | | | | | 30 | |
| | | | |
Tyler Technologies, Inc. (a) | | | | | 127 | | | | | | 55 | |
| | | | |
Ubiquiti, Inc. | | | | | 54 | | | | | | 15 | |
| | | | |
VeriSign, Inc. (a) | | | | | 132 | | | | | | 29 | |
| | | | |
Visa, Inc. ‘A’ | | | | | 931 | | | | | | 204 | |
| | | | |
Vishay Intertechnology, Inc. | | | | | 912 | | | | | | 19 | |
| | | | |
Western Digital Corp. | | | | | 655 | | | | | | 36 | |
| | | | |
Western Union Co. | | | | | 1,804 | | | | | | 40 | |
| | | | |
Workday, Inc. (a) | | | | | 499 | | | | | | 120 | |
| | | | |
Xerox Holdings Corp. | | | | | 869 | | | | | | 20 | |
| | | | |
Xilinx, Inc. | | | | | 787 | | | | | | 112 | |
| | | | |
Zebra Technologies Corp. ‘A’ (a) | | | | | 140 | | | | | | 54 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 13,033 | |
| | | | | | | | | | | | |
| |
| MATERIALS 3.1% | |
| | | | |
Albemarle Corp. | | | | | 308 | | | | | | 45 | |
| | | | |
Alcoa Corp. (a) | | | | | 1,210 | | | | | | 28 | |
| | | | |
Allegheny Technologies, Inc. (a) | | | | | 831 | | | | | | 14 | |
| | | | |
AptarGroup, Inc. | | | | | 214 | | | | | | 29 | |
| | | | |
Avery Dennison Corp. | | | | | 410 | | | | | | 64 | |
| | | | |
Avient Corp. | | | | | 627 | | | | | | 25 | |
| | | | |
Axalta Coating Systems Ltd. (a) | | | | | 751 | | | | | | 21 | |
| | | | |
Ball Corp. | | | | | 1,579 | | | | | | 147 | |
| | | | |
Berry Global Group, Inc. (a) | | | | | 385 | | | | | | 22 | |
| | | | |
Boise Cascade Co. | | | | | 317 | | | | | | 15 | |
| | | | |
Carpenter Technology Corp. | | | | | 597 | | | | | | 17 | |
| | | | | | | | | | | | |
| | | | | SHARES | | | | | MARKET
VALUE
(000S) | |
| | | | |
Celanese Corp. | | | | | 252 | | | $ | | | 33 | |
| | | | |
Chemours Co. | | | | | 1,175 | | | | | | 29 | |
| | | | |
Commercial Metals Co. | | | | | 1,149 | | | | | | 24 | |
| | | | |
Compass Minerals International, Inc. | | | | | 202 | | | | | | 12 | |
| | | | |
Corteva, Inc. | | | | | 1,166 | | | | | | 45 | |
| | | | |
Crown Holdings, Inc. (a) | | | | | 1,031 | | | | | | 103 | |
| | | | |
Domtar Corp. | | | | | 804 | | | | | | 25 | |
| | | | |
Eastman Chemical Co. | | | | | 337 | | | | | | 34 | |
| | | | |
Ecolab, Inc. | | | | | 290 | | | | | | 63 | |
| | | | |
Freeport-McMoRan, Inc. | | | | | 3,077 | | | | | | 80 | |
| | | | |
Graphic Packaging Holding Co. | | | | | 2,000 | | | | | | 34 | |
| | | | |
Greif, Inc. ‘A’ | | | | | 187 | | | | | | 9 | |
| | | | |
Hecla Mining Co. | | | | | 3,098 | | | | | | 20 | |
| | | | |
Huntsman Corp. | | | | | 516 | | | | | | 13 | |
| | | | |
Innospec, Inc. | | | | | 114 | | | | | | 10 | |
| | | | |
International Flavors & Fragrances, Inc. | | | | | 126 | | | | | | 14 | |
| | | | |
Kaiser Aluminum Corp. | | | | | 133 | | | | | | 13 | |
| | | | |
Louisiana-Pacific Corp. | | | | | 739 | | | | | | 27 | |
| | | | |
LyondellBasell Industries NV ‘A’ | | | | | 2,522 | | | | | | 231 | |
| | | | |
Mosaic Co. | | | | | 2,569 | | | | | | 59 | |
| | | | |
NewMarket Corp. | | | | | 36 | | | | | | 14 | |
| | | | |
Newmont Corp. | | | | | 1,583 | | | | | | 95 | |
| | | | |
Nucor Corp. | | | | | 414 | | | | | | 22 | |
| | | | |
O-I Glass, Inc. | | | | | 1,207 | | | | | | 14 | |
| | | | |
Olin Corp. | | | | | 2,833 | | | | | | 70 | |
| | | | |
Packaging Corp. of America | | | | | 145 | | | | | | 20 | |
| | | | |
PPG Industries, Inc. | | | | | 580 | | | | | | 84 | |
| | | | |
Reliance Steel & Aluminum Co. | | | | | 372 | | | | | | 45 | |
| | | | |
RPM International, Inc. | | | | | 515 | | | | | | 47 | |
| | | | |
Scotts Miracle-Gro Co. | | | | | 352 | | | | | | 70 | |
| | | | |
Sensient Technologies Corp. | | | | | 300 | | | | | | 22 | |
| | | | |
Sherwin-Williams Co. | | | | | 145 | | | | | | 107 | |
| | | | |
Silgan Holdings, Inc. | | | | | 591 | | | | | | 22 | |
| | | | |
Sonoco Products Co. | | | | | 471 | | | | | | 28 | |
| | | | |
Steel Dynamics, Inc. | | | | | 249 | | | | | | 9 | |
| | | | |
Trinseo S.A. | | | | | 541 | | | | | | 28 | |
| | | | |
United States Steel Corp. | | | | | 1,064 | | | | | | 18 | |
| | | | |
Warrior Met Coal, Inc. | | | | | 648 | | | | | | 14 | |
| | | | |
WestRock Co. | | | | | 1,456 | | | | | | 63 | |
| | | | |
Worthington Industries, Inc. | | | | | 286 | | | | | | 15 | |
| | | | |
WR Grace & Co. | | | | | 253 | | | | | | 14 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 2,126 | |
| | | | | | | | | | | | |
| |
| REAL ESTATE 0.0% | |
| | | | |
Realogy Holdings Corp. (a) | | | | | 1,682 | | | | | | 22 | |
| | | | | | | | | | | | |
| |
| UTILITIES 1.0% | |
| | | | |
AES Corp. | | | | | 4,871 | | | | | | 115 | |
| | | | |
American Water Works Co., Inc. | | | | | 282 | | | | | | 43 | |
| | | | |
Avangrid, Inc. | | | | | 81 | | | | | | 4 | |
| | | | |
Avista Corp. | | | | | 312 | | | | | | 13 | |
| | | | |
Clearway Energy, Inc. ‘C’ | | | | | 308 | | | | | | 10 | |
| | | | |
Dominion Energy, Inc. | | | | | 366 | | | | | | 28 | |
| | | | |
Entergy Corp. | | | | | 181 | | | | | | 18 | |
| | | | |
Exelon Corp. | | | | | 2,213 | | | | | | 93 | |
| | | | |
Hawaiian Electric Industries, Inc. | | | | | 391 | | | | | | 14 | |
| | | | |
MDU Resources Group, Inc. | | | | | 467 | | | | | | 12 | |
| | | | |
National Fuel Gas Co. | | | | | 497 | | | | | | 20 | |
| | | | |
NextEra Energy, Inc. | | | | | 3,049 | | | | | | 235 | |
| | | | |
NRG Energy, Inc. | | | | | 517 | | | | | | 19 | |
| | | | |
Ormat Technologies, Inc. | | | | | 127 | | | | | | 12 | |
| | | | |
Southern Co. | | | | | 583 | | | | | | 36 | |
| | | | | | |
| 50 | | PIMCO EQUITY SERIES | | | See Accompanying Notes | |
| | | | | | | | |
| | | | | | December 31, 2020 | | (Unaudited) |
| | | | | | | | | | | | |
| | | | | SHARES | | | | | MARKET
VALUE
(000S) | |
| | | | |
Vistra Corp. | | | | | 1,995 | | | $ | | | 39 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 711 | |
| | | | | | | | | | | | |
Total United States | | | | | | | | | | | 64,340 | |
| | | | | | | | | | | | |
Total Common Stocks (Cost $57,207) | | | 64,952 | |
| | | | |
| |
| REAL ESTATE INVESTMENT TRUSTS 4.2% | |
| |
| UNITED STATES 4.2% | |
| |
| FINANCIALS 0.4% | |
| | | | |
AGNC Investment Corp. | | | | | 1,334 | | | | | | 21 | |
| | | | |
Annaly Capital Management, Inc. | | | | | 3,920 | | | | | | 33 | |
| | | | |
Apollo Commercial Real Estate Finance, Inc. | | | | | 990 | | | | | | 11 | |
| | | | |
Blackstone Mortgage Trust, Inc. ‘A’ | | | | | 874 | | | | | | 24 | |
| | | | |
Chimera Investment Corp. | | | | | 2,805 | | | | | | 29 | |
| | | | |
Invesco Mortgage Capital, Inc. | | | | | 3,631 | | | | | | 12 | |
| | | | |
Ladder Capital Corp. | | | | | 1,068 | | | | | | 10 | |
| | | | |
MFA Financial, Inc. | | | | | 3,334 | | | | | | 13 | |
| | | | |
New Residential Investment Corp. | | | | | 380 | | | | | | 4 | |
| | | | |
New York Mortgage Trust, Inc. | | | | | 3,055 | | | | | | 11 | |
| | | | |
PennyMac Mortgage Investment Trust | | | | | 834 | | | | | | 15 | |
| | | | |
Redwood Trust, Inc. | | | | | 1,647 | | | | | | 15 | |
| | | | |
Starwood Property Trust, Inc. | | | | | 2,529 | | | | | | 49 | |
| | | | |
Two Harbors Investment Corp. | | | | | 3,508 | | | | | | 22 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 269 | |
| | | | | | | | | | | | |
| |
| REAL ESTATE 3.8% | |
| | | | |
Acadia Realty Trust | | | | | 588 | | | | | | 8 | |
| | | | |
Alexandria Real Estate Equities, Inc. | | | | | 406 | | | | | | 72 | |
| | | | |
American Campus Communities, Inc. | | | | | 1,069 | | | | | | 46 | |
| | | | |
American Homes 4 Rent ‘A’ | | | | | 1,044 | | | | | | 31 | |
| | | | |
American Tower Corp. | | | | | 235 | | | | | | 53 | |
| | | | |
Apartment Income REIT Corp. (a) | | | | | 881 | | | | | | 34 | |
| | | | |
Apartment Investment and Management Co. ‘A’ | | | | | 953 | | | | | | 5 | |
| | | | |
Apple Hospitality REIT, Inc. | | | | | 2,278 | | | | | | 29 | |
| | | | |
Brandywine Realty Trust | | | | | 1,944 | | | | | | 23 | |
| | | | |
Brixmor Property Group, Inc. | | | | | 737 | | | | | | 12 | |
| | | | |
Camden Property Trust | | | | | 466 | | | | | | 47 | |
| | | | |
Colony Capital, Inc. | | | | | 6,087 | | | | | | 29 | |
| | | | |
Columbia Property Trust, Inc. | | | | | 904 | | | | | | 13 | |
| | | | |
CoreCivic, Inc. | | | | | 2,032 | | | | | | 13 | |
| | | | |
Corporate Office Properties Trust | | | | | 824 | | | | | | 22 | |
| | | | | | | | | | | | |
| | | | | SHARES | | | | | MARKET
VALUE
(000S) | |
| | | | |
Cousins Properties, Inc. | | | | | 511 | | | $ | | | 17 | |
| | | | |
Crown Castle International Corp. | | | | | 1,080 | | | | | | 172 | |
| | | | |
CubeSmart | | | | | 788 | | | | | | 27 | |
| | | | |
CyrusOne, Inc. | | | | | 359 | | | | | | 26 | |
| | | | |
Digital Realty Trust, Inc. | | | | | 662 | | | | | | 92 | |
| | | | |
Douglas Emmett, Inc. | | | | | 788 | | | | | | 23 | |
| | | | |
Duke Realty Corp. | | | | | 1,837 | | | | | | 73 | |
| | | | |
EastGroup Properties, Inc. | | | | | 100 | | | | | | 14 | |
| | | | |
Equinix, Inc. | | | | | 201 | | | | | | 144 | |
| | | | |
Equity Commonwealth | | | | | 768 | | | | | | 21 | |
| | | | |
Equity LifeStyle Properties, Inc. | | | | | 407 | | | | | | 26 | |
| | | | |
Extra Space Storage, Inc. | | | | | 391 | | | | | | 45 | |
| | | | |
Federal Realty Investment Trust | | | | | 318 | | | | | | 27 | |
| | | | |
First Industrial Realty Trust, Inc. | | | | | 438 | | | | | | 18 | |
| | | | |
Gaming and Leisure Properties, Inc. | | | | | 914 | | | | | | 39 | |
| | | | |
GEO Group, Inc. | | | | | 2,546 | | | | | | 23 | |
| | | | |
Healthcare Realty Trust, Inc. | | | | | 649 | | | | | | 19 | |
| | | | |
Healthcare Trust of America, Inc. ‘A’ | | | | | 1,153 | | | | | | 32 | |
| | | | |
Highwoods Properties, Inc. | | | | | 785 | | | | | | 31 | |
| | | | |
Hudson Pacific Properties, Inc. | | | | | 1,003 | | | | | | 24 | |
| | | | |
Invitation Homes, Inc. | | | | | 2,068 | | | | | | 61 | |
| | | | |
Iron Mountain, Inc. | | | | | 399 | | | | | | 12 | |
| | | | |
JBG SMITH Properties | | | | | 343 | | | | | | 11 | |
| | | | |
Kilroy Realty Corp. | | | | | 568 | | | | | | 33 | |
| | | | |
Kimco Realty Corp. | | | | | 949 | | | | | | 14 | |
| | | | |
Lamar Advertising Co. ‘A’ | | | | | 542 | | | | | | 45 | |
| | | | |
Lexington Realty Trust | | | | | 1,663 | | | | | | 18 | |
| | | | |
Life Storage, Inc. | | | | | 233 | | | | | | 28 | |
| | | | |
Mack-Cali Realty Corp. | | | | | 773 | | | | | | 10 | |
| | | | |
Medical Properties Trust, Inc. | | | | | 1,652 | | | | | | 36 | |
| | | | |
Mid-America Apartment Communities, Inc. | | | | | 42 | | | | | | 5 | |
| | | | |
National Retail Properties, Inc. | | | | | 425 | | | | | | 17 | |
| | | | |
Omega Healthcare Investors, Inc. | | | | | 591 | | | | | | 22 | |
| | | | |
Outfront Media, Inc. | | | | | 1,555 | | | | | | 30 | |
| | | | |
Paramount Group, Inc. | | | | | 2,662 | | | | | | 24 | |
| | | | |
Park Hotels & Resorts, Inc. | | | | | 342 | | | | | | 6 | |
| | | | |
Physicians Realty Trust | | | | | 1,018 | | | | | | 18 | |
| | | | |
Piedmont Office Realty Trust, Inc. ‘A’ | | | | | 1,047 | | | | | | 17 | |
| | | | |
Prologis, Inc. | | | | | 1,825 | | | | | | 182 | |
| | | | |
PS Business Parks, Inc. | | | | | 123 | | | | | | 16 | |
| | | | |
Public Storage | | | | | 555 | | | | | | 128 | |
| | | | |
Rayonier, Inc. | | | | | 454 | | | | | | 13 | |
| | | | |
Regency Centers Corp. | | | | | 892 | | | | | | 41 | |
| | | | |
Retail Properties of America, Inc. ‘A’ | | | | | 1,579 | | | | | | 14 | |
| | | | | | | | | | | | |
| | | | | SHARES | | | | | MARKET
VALUE
(000S) | |
| | | | |
RLJ Lodging Trust | | | | | 1,203 | | | $ | | | 17 | |
| | | | |
Ryman Hospitality Properties, Inc. | | | | | 211 | | | | | | 14 | |
| | | | |
SBA Communications Corp. | | | | | 348 | | | | | | 98 | |
| | | | |
Service Properties Trust | | | | | 1,576 | | | | | | 18 | |
| | | | |
Simon Property Group, Inc. | | | | | 484 | | | | | | 41 | |
| | | | |
SITE Centers Corp. | | | | | 1,458 | | | | | | 15 | |
| | | | |
STAG Industrial, Inc. | | | | | 383 | | | | | | 12 | |
| | | | |
STORE Capital Corp. | | | | | 931 | | | | | | 32 | |
| | | | |
Sun Communities, Inc. | | | | | 264 | | | | | | 40 | |
| | | | |
Sunstone Hotel Investors, Inc. | | | | | 2,537 | | | | | | 29 | |
| | | | |
UDR, Inc. | | | | | 1,116 | | | | | | 43 | |
| | | | |
VICI Properties, Inc. | | | | | 985 | | | | | | 25 | |
| | | | |
Washington Real Estate Investment Trust | | | | | 406 | | | | | | 9 | |
| | | | |
Weingarten Realty Investors | | | | | 985 | | | | | | 21 | |
| | | | |
WP Carey, Inc. | | | | | 703 | | | | | | 50 | |
| | | | |
Xenia Hotels & Resorts, Inc. | | | | | 720 | | | | | | 11 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 2,606 | |
| | | | | | | | | | | | |
Total Real Estate Investment Trusts
(Cost $2,699) | | | 2,875 | |
| | | | |
| |
| SHORT-TERM INSTRUMENTS 1.1% | |
| |
| REPURCHASE AGREEMENTS (e) 1.1% | |
| | | | | | | | | | | 735 | |
| | | | | | | | | | | | |
Total Short-Term Instruments
(Cost $735) | | | 735 | |
| | | | |
| | | | |
| | | | | | | | | | | | |
Total Investments in Securities
(Cost $60,641) | | | 68,562 | |
| | | | |
| |
| INVESTMENTS IN AFFILIATES 0.1% | |
| |
| SHORT-TERM INSTRUMENTS 0.1% | |
| |
| MUTUAL FUNDS 0.1% | |
|
PIMCO Government Money Market Fund | |
0.150% (b)(c)(d) | | | | | 73,418 | | | | | | 73 | |
| | | | | | | | | | | | |
Total Short-Term Instruments
(Cost $73) | | | | | | 73 | |
| | | | | | | | | | | | |
| | | | |
| | | | | | | | | | | | |
Total Investments in Affiliates
(Cost $73) | | | | | | 73 | |
| | | | |
| | | | | | | | | | | | |
Total Investments 100.6%
(Cost $60,714) | | | $ | | | 68,635 | |
| | | | | | | | | | | | |
| Other Assets and Liabilities, net (0.6)% | | | | | | (392 | ) |
| | | | | | | | | | | | |
| Net Assets 100.0% | | | $ | | | 68,243 | |
| | | | | | | | | | | | |
NOTES TO SCHEDULE OF INVESTMENTS:
| * | 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) | Institutional Class Shares of each Fund. |
| (c) | Securities with an aggregate market value of $72 were out on loan in exchange for $73 of cash collateral as of December 31, 2020. The collateral was invested in a cash collateral reinvestment vehicle as described in Note 5 in the Notes to Financial Statements. |
| (d) | Coupon represents a 7-Day Yield. |
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 | |
| FICC | | | 0.000 | % | | | 12/31/2020 | | | | 01/04/2021 | | | $ | 735 | | | U.S. Treasury Bills 0.000% due 12/30/2021 | | $ | (749 | ) | | $ | 735 | | | $ | 735 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total Repurchase Agreements | | | | | $ | (749 | ) | | $ | 735 | | | $ | 735 | |
| | | | | | | | | | | | | | | |
| | | | | | | | | | | | |
| See Accompanying Notes | | | SEMIANNUAL REPORT | | | | | | | DECEMBER 31, 2020 | | | 51 |
| | | | | | | | |
| Schedule of Investments | | PIMCO RAFI Dynamic Multi-Factor U.S. Equity ETF | | (Cont.) | | December 31, 2020 | | (Unaudited) |
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, 2020:
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Counterparty | | Repurchase
Agreement
Proceeds
to be
Received | | | Payable for
Reverse
Repurchase
Agreements | | | Payable for
Sale-Buyback
Transactions | | | Securities Out on Loan | | | Total
Borrowings and
Other Financing
Transactions | | | Collateral
Pledged/(Received) | | | Net Exposure(1) | |
Global/Master Repurchase Agreement | |
FICC | | $ | 735 | | | $ | 0 | | | $ | 0 | | | $ | 0 | | | $ | 735 | | | $ | (749 | ) | | $ | (14 | ) |
|
Master Securities Lending Agreement | |
GSC | | | 0 | | | | 0 | | | | 0 | | | | 72 | | | | 72 | | | | (73 | ) | | | (1 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total Borrowings and Other Financing Transactions | | $ | 735 | | | $ | 0 | | | $ | 0 | | | $ | 72 | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
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 | |
Securities Lending Transactions(2) | | | | | | | | | | | | | | | | | | | | |
Common Stocks | | $ | 73 | | | $ | 0 | | | $ | 0 | | | $ | 0 | | | $ | 73 | |
| | | | | | | | | | | | | | | | | | | | |
Total Borrowings | | $ | 73 | | | $ | 0 | | | $ | 0 | | | $ | 0 | | | $ | 73 | |
| | | | | | | | | | | | | | | | | | | | |
Payable for securities on loan - cash collateral | | | $ | 73 | |
| | | | | | | | | | | | | | | | | | | | |
| (1) | 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. |
| (2) | Includes cash collateral as described in Note 5 in the Notes to Financial Statements. |
FAIR VALUE MEASUREMENTS
The following is a summary of the fair valuations according to the inputs used as of December 31, 2020 in valuing the Fund’s assets and liabilities:
| | | | | | | | | | | | | | | | |
| Category and Subcategory | | Level 1 | | | Level 2 | | | Level 3 | | | Fair
Value at
12/31/2020 | |
Investments in Securities, at Value | |
Common Stocks | |
Ireland | |
Information Technology | | $ | 211 | | | $ | 0 | | | $ | 0 | | | $ | 211 | |
Switzerland | |
Financials | | | 139 | | | | 0 | | | | 0 | | | | 139 | |
United Kingdom | |
Consumer Staples | | | 46 | | | | 0 | | | | 0 | | | | 46 | |
Financials | | | 34 | | | | 0 | | | | 0 | | | | 34 | |
Industrials | | | 148 | | | | 0 | | | | 0 | | | | 148 | |
Materials | | | 34 | | | | 0 | | | | 0 | | | | 34 | |
United States | |
Communication Services | | | 5,674 | | | | 0 | | | | 0 | | | | 5,674 | |
Consumer Discretionary | | | 11,616 | | | | 0 | | | | 0 | | | | 11,616 | |
Consumer Staples | | | 8,084 | | | | 0 | | | | 0 | | | | 8,084 | |
Energy | | | 1,912 | | | | 0 | | | | 0 | | | | 1,912 | |
Financials | | | 4,145 | | | | 0 | | | | 0 | | | | 4,145 | |
Health Care | | | 9,315 | | | | 0 | | | | 0 | | | | 9,315 | |
Industrials | | | 7,702 | | | | 0 | | | | 0 | | | | 7,702 | |
| | | | | | | | | | | | | | | | |
| Category and Subcategory | | Level 1 | | | Level 2 | | | Level 3 | | | Fair
Value at
12/31/2020 | |
Information Technology | | $ | 13,033 | | | $ | 0 | | | $ | 0 | | | $ | 13,033 | |
Materials | | | 2,126 | | | | 0 | | | | 0 | | | | 2,126 | |
Real Estate | | | 22 | | | | 0 | | | | 0 | | | | 22 | |
Utilities | | | 711 | | | | 0 | | | | 0 | | | | 711 | |
Real Estate Investment Trusts | |
United States | |
Financials | | | 269 | | | | 0 | | | | 0 | | | | 269 | |
Real Estate | | | 2,606 | | | | 0 | | | | 0 | | | | 2,606 | |
Short-Term Instruments | |
Repurchase Agreements | | | 0 | | | | 735 | | | | 0 | | | | 735 | |
| | | | | | | | | | | | | | | | |
| | $ | 67,827 | | | $ | 735 | | | $ | 0 | | | $ | 68,562 | |
| | | | | | | | | | | | | | | | |
|
Investments in Affiliates, at Value | |
Short-Term Instruments | |
Mutual Funds | | | 73 | | | | 0 | | | | 0 | | | | 73 | |
| | | | | | | | | | | | | | | | |
| | | | |
Total Investments | | $ | 67,900 | | | $ | 735 | | | $ | 0 | | | $ | 68,635 | |
| | | | | | | | | | | | | | | | |
There were no significant transfers into or out of Level 3 during the period ended December 31, 2020.
| | | | | | |
| 52 | | PIMCO EQUITY SERIES | | | See Accompanying Notes | |
| | | | | | | | |
| Schedule of Investments | | PIMCO RAFI ESG U.S. Exchange-Traded Fund | | | | December 31, 2020 | | (Unaudited) |
(Amounts in thousands*, except number of shares, contracts, units and ounces, if any)
| | | | | | | | | | | | |
| | | | | SHARES | | | | | MARKET
VALUE
(000S) | |
| INVESTMENTS IN SECURITIES 99.6% | |
| |
| COMMON STOCKS 98.3% | |
| |
| IRELAND 0.8% | |
| |
| INDUSTRIALS 0.1% | |
| | | | |
Trane Technologies PLC | | | | | 54 | | | $ | | | 8 | |
| | | | | | | | | | | | |
| |
| INFORMATION TECHNOLOGY 0.7% | |
| | | | |
Accenture PLC ‘A’ | | | | | 325 | | | | | | 85 | |
| | | | | | | | | | | | |
Total Ireland | | | | | | | | | | | 93 | |
| | | | | | | | | | | | |
| |
| SWITZERLAND 0.3% | |
| |
| FINANCIALS 0.3% | |
| | | | |
Chubb Ltd. | | | | | 237 | | | | | | 36 | |
| | | | | | | | | | | | |
Total Switzerland | | | | | | | | | | | 36 | |
| | | | | | | | | | | | |
| |
| UNITED KINGDOM 1.3% | |
| |
| COMMUNICATION SERVICES 0.1% | |
| | | | |
Liberty Global PLC (a) | | | | | 668 | | | | | | 16 | |
| | | | | | | | | | | | |
| |
| CONSUMER STAPLES 0.2% | |
| | | | |
Coca-Cola European Partners PLC | | | | | 337 | | | | | | 16 | |
| | | | | | | | | | | | |
| |
| MATERIALS 1.0% | |
| | | | |
Amcor PLC | | | | | 1,175 | | | | | | 14 | |
| | | | |
Linde PLC | | | | | 425 | | | | | | 112 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 126 | |
| | | | | | | | | | | | |
Total United Kingdom | | | | | | | | | | | 158 | |
| | | | | | | | | | | | |
| |
| UNITED STATES 95.9% | |
| |
| COMMUNICATION SERVICES 5.8% | |
| | | | |
CenturyLink, Inc. | | | | | 4,257 | | | | | | 42 | |
| | | | |
News Corp. ‘A’ | | | | | 686 | | | | | | 12 | |
| | | | |
Omnicom Group, Inc. | | | | | 312 | | | | | | 20 | |
| | | | |
Verizon Communications, Inc. | | | | | 4,547 | | | | | | 267 | |
| | | | |
ViacomCBS, Inc. ‘B’ | | | | | 434 | | | | | | 16 | |
| | | | |
Walt Disney Co. | | | | | 1,927 | | | | | | 349 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 706 | |
| | | | | | | | | | | | |
| |
| CONSUMER DISCRETIONARY 12.9% | |
| | | | |
Advance Auto Parts, Inc. | | | | | 48 | | | | | | 8 | |
| | | | |
Bed Bath & Beyond, Inc. | | | | | 1,236 | | | | | | 22 | |
| | | | |
Best Buy Co., Inc. | | | | | 419 | | | | | | 42 | |
| | | | |
BorgWarner, Inc. | | | | | 293 | | | | | | 11 | |
| | | | |
Carnival Corp. | | | | | 1,789 | | | | | | 39 | |
| | | | |
Darden Restaurants, Inc. | | | | | 95 | | | | | | 11 | |
| | | | |
Dollar General Corp. | | | | | 169 | | | | | | 36 | |
| | | | |
eBay, Inc. | | | | | 885 | | | | | | 44 | |
| | | | |
Foot Locker, Inc. | | | | | 304 | | | | | | 12 | |
| | | | |
Ford Motor Co. | | | | | 14,322 | | | | | | 126 | |
| | | | |
Gap, Inc. | | | | | 1,544 | | | | | | 31 | |
| | | | |
General Motors Co. | | | | | 4,207 | | | | | | 175 | |
| | | | |
Genuine Parts Co. | | | | | 62 | | | | | | 6 | |
| | | | |
Goodyear Tire & Rubber Co. | | | | | 1,371 | | | | | | 15 | |
| | | | |
Hasbro, Inc. | | | | | 130 | | | | | | 12 | |
| | | | |
Hilton Worldwide Holdings, Inc. | | | | | 137 | | | | | | 15 | |
| | | | |
Home Depot, Inc. | | | | | 545 | | | | | | 145 | |
| | | | |
Kohl’s Corp. | | | | | 1,064 | | | | | | 43 | |
| | | | |
L Brands, Inc. | | | | | 469 | | | | | | 17 | |
| | | | |
Lowe’s Cos., Inc. | | | | | 584 | | | | | | 94 | |
| | | | | | | | | | | | |
| | | | | SHARES | | | | | MARKET
VALUE
(000S) | |
| | | | |
Macy’s, Inc. | | | | | 3,410 | | | $ | | | 38 | |
| | | | |
Marriott International, Inc. ‘A’ | | | | | 126 | | | | | | 17 | |
| | | | |
McDonald’s Corp. | | | | | 511 | | | | | | 110 | |
| | | | |
Newell Brands, Inc. | | | | | 505 | | | | | | 11 | |
| | | | |
NIKE, Inc. ‘B’ | | | | | 594 | | | | | | 84 | |
| | | | |
Nordstrom, Inc. | | | | | 626 | | | | | | 20 | |
| | | | |
O’Reilly Automotive, Inc. (a) | | | | | 15 | | | | | | 7 | |
| | | | |
PVH Corp. | | | | | 147 | | | | | | 14 | |
| | | | |
Ralph Lauren Corp. | | | | | 120 | | | | | | 12 | |
| | | | |
Ross Stores, Inc. | | | | | 160 | | | | | | 20 | |
| | | | |
Starbucks Corp. | | | | | 555 | | | | | | 59 | |
| | | | |
Target Corp. | | | | | 713 | | | | | | 126 | |
| | | | |
Tiffany & Co. | | | | | 105 | | | | | | 14 | |
| | | | |
TJX Cos., Inc. | | | | | 999 | | | | | | 68 | |
| | | | |
Tractor Supply Co. | | | | | 18 | | | | | | 2 | |
| | | | |
VF Corp. | | | | | 323 | | | | | | 28 | |
| | | | |
Whirlpool Corp. | | | | | 20 | | | | | | 4 | |
| | | | |
Yum! Brands, Inc. | | | | | 244 | | | | | | 26 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 1,564 | |
| | | | | | | | | | | | |
| |
| CONSUMER STAPLES 9.2% | |
| | | | |
Archer-Daniels-Midland Co. | | | | | 959 | | | | | | 48 | |
| | | | |
Brown-Forman Corp. ‘B’ | | | | | 97 | | | | | | 8 | |
| | | | |
Bunge Ltd. | | | | | 464 | | | | | | 30 | |
| | | | |
Clorox Co. | | | | | 58 | | | | | | 12 | |
| | | | |
Coca-Cola Co. | | | | | 2,902 | | | | | | 159 | |
| | | | |
Colgate-Palmolive Co. | | | | | 588 | | | | | | 50 | |
| | | | |
Estee Lauder Cos., Inc. ‘A’ | | | | | 74 | | | | | | 20 | |
| | | | |
General Mills, Inc. | | | | | 614 | | | | | | 36 | |
| | | | |
Hershey Co. | | | | | 85 | | | | | | 13 | |
| | | | |
Ingredion, Inc. | | | | | 109 | | | | | | 9 | |
| | | | |
JM Smucker Co. | | | | | 87 | | | | | | 10 | |
| | | | |
Kellogg Co. | | | | | 238 | | | | | | 15 | |
| | | | |
Kimberly-Clark Corp. | | | | | 207 | | | | | | 28 | |
| | | | |
Kraft Heinz Co. | | | | | 977 | | | | | | 34 | |
| | | | |
Kroger Co. | | | | | 2,005 | | | | | | 64 | |
| | | | |
Molson Coors Brewing Co. ‘B’ | | | | | 318 | | | | | | 14 | |
| | | | |
Mondelez International, Inc. ‘A’ | | | | | 1,365 | | | | | | 80 | |
| | | | |
PepsiCo, Inc. | | | | | 1,129 | | | | | | 167 | |
| | | | |
Procter & Gamble Co. | | | | | 1,954 | | | | | | 272 | |
| | | | |
Sysco Corp. | | | | | 80 | | | | | | 6 | |
| | | | |
Walgreens Boots Alliance, Inc. | | | | | 1,087 | | | | | | 43 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 1,118 | |
| | | | | | | | | | | | |
| |
| FINANCIALS 23.0% | |
| | | | |
Aflac, Inc. | | | | | 793 | | | | | | 35 | |
| | | | |
Allstate Corp. | | | | | 547 | | | | | | 60 | |
| | | | |
American Express Co. | | | | | 728 | | | | | | 88 | |
| | | | |
American International Group, Inc. | | | | | 1,693 | | | | | | 64 | |
| | | | |
Ameriprise Financial, Inc. | | | | | 230 | | | | | | 45 | |
| | | | |
Aon PLC | | | | | 31 | | | | | | 7 | |
| | | | |
Bank of America Corp. | | | | | 10,282 | | | | | | 312 | |
| | | | |
Bank of New York Mellon Corp. | | | | | 1,847 | | | | | | 79 | |
| | | | |
Capital One Financial Corp. | | | | | 1,014 | | | | | | 100 | |
| | | | |
Charles Schwab Corp. | | | | | 97 | | | | | | 5 | |
| | | | |
Citigroup, Inc. | | | | | 4,827 | | | | | | 298 | |
| | | | |
Comerica, Inc. | | | | | 292 | | | | | | 16 | |
| | | | |
Fifth Third Bancorp | | | | | 1,500 | | | | | | 41 | |
| | | | |
Franklin Resources, Inc. | | | | | 215 | | | | | | 5 | |
| | | | |
Goldman Sachs Group, Inc. | | | | | 753 | | | | | | 199 | |
| | | | |
Hartford Financial Services Group, Inc. | | | | | 610 | | | | | | 30 | |
| | | | |
Huntington Bancshares, Inc. | | | | | 977 | | | | | | 12 | |
| | | | |
JPMorgan Chase & Co. | | | | | 1,960 | | | | | | 249 | |
| | | | | | | | | | | | |
| | | | | SHARES | | | | | MARKET
VALUE
(000S) | |
| | | | |
KeyCorp. | | | | | 1,397 | | | $ | | | 23 | |
| | | | |
Lincoln National Corp. | | | | | 527 | | | | | | 27 | |
| | | | |
Marsh & McLennan Cos., Inc. | | | | | 217 | | | | | | 26 | |
| | | | |
MetLife, Inc. | | | | | 1,114 | | | | | | 52 | |
| | | | |
Moody’s Corp. | | | | | 53 | | | | | | 15 | |
| | | | |
Morgan Stanley | | | | | 1,563 | | | | | | 107 | |
| | | | |
Northern Trust Corp. | | | | | 184 | | | | | | 17 | |
| | | | |
PNC Financial Services Group, Inc. | | | | | 752 | | | | | | 112 | |
| | | | |
Principal Financial Group, Inc. | | | | | 452 | | | | | | 23 | |
| | | | |
Prudential Financial, Inc. | | | | | 977 | | | | | | 76 | |
| | | | |
Regions Financial Corp. | | | | | 1,436 | | | | | | 23 | |
| | | | |
S&P Global, Inc. | | | | | 74 | | | | | | 24 | |
| | | | |
Synchrony Financial | | | | | 891 | | | | | | 31 | |
| | | | |
Travelers Cos., Inc. | | | | | 444 | | | | | | 62 | |
| | | | |
Truist Financial Corp. | | | | | 279 | | | | | | 13 | |
| | | | |
U.S. Bancorp | | | | | 1,566 | | | | | | 73 | |
| | | | |
Unum Group | | | | | 128 | | | | | | 3 | |
| | | | |
Voya Financial, Inc. | | | | | 344 | | | | | | 20 | |
| | | | |
Wells Fargo & Co. | | | | | 14,072 | | | | | | 425 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 2,797 | |
| | | | | | | | | | | | |
| |
| HEALTH CARE 16.0% | |
| | | | |
Abbott Laboratories | | | | | 745 | | | | | | 82 | |
| | | | |
AbbVie, Inc. | | | | | 1,277 | | | | | | 137 | |
| | | | |
Agilent Technologies, Inc. | | | | | 146 | | | | | | 17 | |
| | | | |
Amgen, Inc. | | | | | 620 | | | | | | 142 | |
| | | | |
Anthem, Inc. | | | | | 277 | | | | | | 89 | |
| | | | |
Baxter International, Inc. | | | | | 373 | | | | | | 30 | |
| | | | |
Biogen, Inc. (a) | | | | | 119 | | | | | | 29 | |
| | | | |
Boston Scientific Corp. (a) | | | | | 294 | | | | | | 11 | |
| | | | |
Bristol-Myers Squibb Co. | | | | | 1,045 | | | | | | 65 | |
| | | | |
Cardinal Health, Inc. | | | | | 660 | | | | | | 35 | |
| | | | |
Danaher Corp. | | | | | 123 | | | | | | 27 | |
| | | | |
DaVita, Inc. (a) | | | | | 105 | | | | | | 12 | |
| | | | |
Dentsply Sirona, Inc. | | | | | 155 | | | | | | 8 | |
| | | | |
Eli Lilly & Co. | | | | | 155 | | | | | | 26 | |
| | | | |
Gilead Sciences, Inc. | | | | | 2,259 | | | | | | 132 | |
| | | | |
Humana, Inc. | | | | | 81 | | | | | | 33 | |
| | | | |
IQVIA Holdings, Inc. (a) | | | | | 21 | | | | | | 4 | |
| | | | |
Johnson & Johnson | | | | | 2,311 | | | | | | 364 | |
| | | | |
Laboratory Corp. of America Holdings (a) | | | | | 38 | | | | | | 8 | |
| | | | |
McKesson Corp. | | | | | 405 | | | | | | 70 | |
| | | | |
Merck & Co., Inc. | | | | | 2,591 | | | | | | 212 | |
| | | | |
Pfizer, Inc. | | | | | 7,055 | | | | | | 260 | |
| | | | |
Quest Diagnostics, Inc. | | | | | 84 | | | | | | 10 | |
| | | | |
Regeneron Pharmaceuticals, Inc. (a) | | | | | 16 | | | | | | 8 | |
| | | | |
Thermo Fisher Scientific, Inc. | | | | | 61 | | | | | | 28 | |
| | | | |
UnitedHealth Group, Inc. | | | | | 216 | | | | | | 76 | |
| | | | |
Viatris, Inc. (a) | | | | | 1,636 | | | | | | 31 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 1,946 | |
| | | | | | | | | | | | |
| |
| INDUSTRIALS 5.4% | |
| | | | |
3M Co. | | | | | 786 | | | | | | 137 | |
| | | | |
Alaska Air Group, Inc. | | | | | 211 | | | | | | 11 | |
| | | | |
CH Robinson Worldwide, Inc. | | | | | 61 | | | | | | 6 | |
| | | | |
Delta Air Lines, Inc. | | | | | 56 | | | | | | 2 | |
| | | | |
Dover Corp. | | | | | 21 | | | | | | 3 | |
| | | | |
Emerson Electric Co. | | | | | 632 | | | | | | 51 | |
| | | | |
Fastenal Co. | | | | | 203 | | | | | | 10 | |
| | | | |
FedEx Corp. | | | | | 288 | | | | | | 75 | |
| | | | |
Illinois Tool Works, Inc. | | | | | 248 | | | | | | 50 | |
| | | | |
Ingersoll Rand, Inc. (a) | | | | | 50 | | | | | | 2 | |
| | | | |
JetBlue Airways Corp. (a) | | | | | 799 | | | | | | 12 | |
| | | | | | | | | | | | |
| See Accompanying Notes | | | SEMIANNUAL REPORT | | | | | | | DECEMBER 31, 2020 | | | 53 |
| | | | | | | | |
| Schedule of Investments | | PIMCO RAFI ESG U.S. Exchange-Traded Fund | | (Cont.) | | December 31, 2020 | | (Unaudited) |
| | | | | | | | | | | | |
| | | | | SHARES | | | | | MARKET
VALUE
(000S) | |
| | | | |
Johnson Controls International PLC | | | | | 1,287 | | | $ | | | 60 | |
| | | | |
ManpowerGroup, Inc. | | | | | 203 | | | | | | 18 | |
| | | | |
Neilsen Holdings PLC | | | | | 1,046 | | | | | | 22 | |
| | | | |
Parker-Hannifin Corp. | | | | | 15 | | | | | | 4 | |
| | | | |
Republic Services, Inc. | | | | | 118 | | | | | | 11 | |
| | | | |
Rockwell Automation, Inc. | | | | | 78 | | | | | | 19 | |
| | | | |
Southwest Airlines Co. | | | | | 178 | | | | | | 8 | |
| | | | |
Stanley Black & Decker, Inc. | | | | | 93 | | | | | | 17 | |
| | | | |
United Airlines Holdings, Inc. (a) | | | | | 168 | | | | | | 7 | |
| | | | |
United Parcel Service, Inc. ‘B’ | | | | | 415 | | | | | | 70 | |
| | | | |
Waste Management, Inc. | | | | | 320 | | | | | | 38 | |
| | | | |
WW Grainger, Inc. | | | | | 48 | | | | | | 20 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 653 | |
| | | | | | | | | | | | |
| |
| INFORMATION TECHNOLOGY 18.3% | |
| | | | |
Alliance Data Systems Corp. | | | | | 73 | | | | | | 5 | |
| | | | |
Amdocs Ltd. | | | | | 103 | | | | | | 7 | |
| | | | |
Analog Devices, Inc. | | | | | 122 | | | | | | 18 | |
| | | | |
Applied Materials, Inc. | | | | | 625 | | | | | | 54 | |
| | | | |
Arrow Electronics, Inc. (a) | | | | | 46 | | | | | | 4 | |
| | | | |
Automatic Data Processing, Inc. | | | | | 173 | | | | | | 31 | |
| | | | |
Avnet, Inc. | | | | | 479 | | | | | | 17 | |
| | | | |
CDW Corp. | | | | | 16 | | | | | | 2 | |
| | | | |
Cisco Systems, Inc. | | | | | 5,961 | | | | | | 267 | |
| | | | |
Citrix Systems, Inc. | | | | | 60 | | | | | | 8 | |
| | | | |
Cognizant Technology Solutions Corp. ‘A’ | | | | | 514 | | | | | | 42 | |
| | | | |
Corning, Inc. | | | | | 959 | | | | | | 35 | |
| | | | |
Electronic Arts, Inc. | | | | | 28 | | | | | | 4 | |
| | | | |
Fidelity National Information Services, Inc. | | | | | 76 | | | | | | 11 | |
| | | | |
Flex Ltd. (a) | | | | | 877 | | | | | | 16 | |
| | | | |
HP, Inc. | | | | | 2,282 | | | | | | 56 | |
| | | | |
Intel Corp. | | | | | 5,910 | | | | | | 294 | |
| | | | |
Juniper Networks, Inc. | | | | | 667 | | | | | | 15 | |
| | | | |
Lam Research Corp. | | | | | 69 | | | | | | 33 | |
| | | | |
Mastercard, Inc. ‘A’ | | | | | 106 | | | | | | 38 | |
| | | | |
Maxim Integrated Products, Inc. | | | | | 135 | | | | | | 12 | |
| | | | |
Micron Technology, Inc. (a) | | | | | 623 | | | | | | 47 | |
| | | | | | | | | | | | |
| | | | | SHARES | | | | | MARKET
VALUE
(000S) | |
| | | | |
Microsoft Corp. | | | | | 2,414 | | | $ | | | 537 | |
| | | | |
NetApp, Inc. | | | | | 96 | | | | | | 6 | |
| | | | |
NortonLifeLock, Inc. | | | | | 909 | | | | | | 19 | |
| | | | |
Oracle Corp. | | | | | 2,684 | | | | | | 174 | |
| | | | |
PayPal Holdings, Inc. (a) | | | | | 78 | | | | | | 18 | |
| | | | |
QUALCOMM, Inc. | | | | | 994 | | | | | | 151 | |
| | | | |
Seagate Technology PLC | | | | | 360 | | | | | | 22 | |
| | | | |
Texas Instruments, Inc. | | | | | 693 | | | | | | 114 | |
| | | | |
Visa, Inc. ‘A’ | | | | | 467 | | | | | | 102 | |
| | | | |
Western Digital Corp. | | | | | 543 | | | | | | 30 | |
| | | | |
Western Union Co. | | | | | 486 | | | | | | 11 | |
| | | | |
Xerox Holdings Corp. | | | | | 781 | | | | | | 18 | |
| | | | |
Xilinx, Inc. | | | | | 22 | | | | | | 3 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 2,221 | |
| | | | | | | | | | | | |
| |
| MATERIALS 3.6% | |
| | | | |
Air Products & Chemicals, Inc. | | | | | 125 | | | | | | 34 | |
| | | | |
Celanese Corp. | | | | | 166 | | | | | | 22 | |
| | | | |
CF Industries Holdings, Inc. | | | | | 360 | | | | | | 14 | |
| | | | |
DuPont de Nemours, Inc. | | | | | 1,420 | | | | | | 101 | |
| | | | |
Eastman Chemical Co. | | | | | 244 | | | | | | 24 | |
| | | | |
Ecolab, Inc. | | | | | 137 | | | | | | 30 | |
| | | | |
Freeport-McMoRan, Inc. | | | | | 1,030 | | | | | | 27 | |
| | | | |
International Paper Co. | | | | | 957 | | | | | | 48 | |
| | | | |
LyondellBasell Industries NV ‘A’ | | | | | 667 | | | | | | 61 | |
| | | | |
Newmont Corp. | | | | | 384 | | | | | | 23 | |
| | | | |
Nucor Corp. | | | | | 245 | | | | | | 13 | |
| | | | |
Sherwin-Williams Co. | | | | | 26 | | | | | | 19 | |
| | | | |
United States Steel Corp. | | | | | 236 | | | | | | 4 | |
| | | | |
Vulcan Materials Co. | | | | | 57 | | | | | | 8 | |
| | | | |
WestRock Co. | | | | | 269 | | | | | | 12 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 440 | |
| | | | | | | | | | | | |
| |
| REAL ESTATE 0.2% | |
| | | | |
CBRE Group, Inc. ‘A’ (a) | | | | | 223 | | | | | | 14 | |
| | | | |
Jones Lang LaSalle, Inc. | | | | | 68 | | | | | | 10 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 24 | |
| | | | | | | | | | | | |
| |
| | | | | | | | | | | | |
| | | | | SHARES | | | | | MARKET
VALUE
(000S) | |
| UTILITIES 1.5% | |
| | | | |
American Water Works Co., Inc. | | | | | 96 | | | $ | | | 15 | |
| | | | |
Consolidated Edison, Inc. | | | | | 440 | | | | | | 32 | |
| | | | |
Edison International | | | | | 427 | | | | | | 27 | |
| | | | |
Eversource Energy | | | | | 312 | | | | | | 27 | |
| | | | |
Exelon Corp. | | | | | 1,935 | | | | | | 81 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 182 | |
| | | | | | | | | | | | |
Total United States | | | | | | | | | | | 11,651 | |
| | | | | | | | | | | | |
Total Common Stocks (Cost $11,557) | | | 11,938 | |
| | | | |
| |
| REAL ESTATE INVESTMENT TRUSTS 1.3% | |
| |
| UNITED STATES 1.3% | |
| |
| REAL ESTATE 1.3% | |
| | | | |
Equinix, Inc. | | | | | 21 | | | | | | 15 | |
| | | | |
Equity Residential | | | | | 161 | | | | | | 10 | |
| | | | |
Healthpeak Properties, Inc. | | | | | 477 | | | | | | 14 | |
| | | | |
Host Hotels & Resorts, Inc. | | | | | 1,695 | | | | | | 25 | |
| | | | |
Iron Mountain, Inc. | | | | | 334 | | | | | | 10 | |
| | | | |
Park Hotels & Resorts, Inc. | | | | | 606 | | | | | | 10 | |
| | | | |
Simon Property Group, Inc. | | | | | 136 | | | | | | 12 | |
| | | | |
Ventas, Inc. | | | | | 531 | | | | | | 26 | |
| | | | |
Welltower, Inc. | | | | | 357 | | | | | | 23 | |
| | | | |
Weyerhaeuser Co. | | | | | 314 | | | | | | 10 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 155 | |
| | | | | | | | | | | | |
Total Real Estate Investment Trusts
(Cost $151) | | | 155 | |
| | | | |
| | | | |
| | | | | | | | | | | | |
Total Investments in Securities
(Cost $11,708) | | | 12,093 | |
| | | | |
| | | | | | | | | | | | |
Total Investments 99.6%
(Cost $11,708) | | | $ | | | 12,093 | |
| |
| Other Assets and Liabilities, net 0.4% | | | 50 | |
| | | | |
| Net Assets 100.0% | | | $ | | | 12,143 | |
| | | | | | | |
NOTES TO SCHEDULE OF INVESTMENTS:
| * | 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, 2020 in valuing the Fund’s assets and liabilities:
| | | | | | | | | | | | | | | | |
| Category and Subcategory | | Level 1 | | | Level 2 | | | Level 3 | | | Fair
Value at
12/31/2020 | |
Investments in Securities, at Value | |
Common Stocks | |
Ireland | |
Industrials | | $ | 8 | | | $ | 0 | | | $ | 0 | | | $ | 8 | |
Information Technology | | | 85 | | | | 0 | | | | 0 | | | | 85 | |
Switzerland | |
Financials | | | 36 | | | | 0 | | | | 0 | | | | 36 | |
United Kingdom | |
Communication Services | | | 16 | | | | 0 | | | | 0 | | | | 16 | |
Consumer Staples | | | 16 | | | | 0 | | | | 0 | | | | 16 | |
Materials | | | 126 | | | | 0 | | | | 0 | | | | 126 | |
United States | |
Communication Services | | | 706 | | | | 0 | | | | 0 | | | | 706 | |
Consumer Discretionary | | | 1,564 | | | | 0 | | | | 0 | | | | 1,564 | |
| | | | | | | | | | | | | | | | |
| Category and Subcategory | | Level 1 | | | Level 2 | | | Level 3 | | | Fair
Value at
12/31/2020 | |
Consumer Staples | | $ | 1,118 | | | $ | 0 | | | $ | 0 | | | $ | 1,118 | |
Financials | | | 2,797 | | | | 0 | | | | 0 | | | | 2,797 | |
Health Care | | | 1,946 | | | | 0 | | | | 0 | | | | 1,946 | |
Industrials | | | 653 | | | | 0 | | | | 0 | | | | 653 | |
Information Technology | | | 2,221 | | | | 0 | | | | 0 | | | | 2,221 | |
Materials | | | 440 | | | | 0 | | | | 0 | | | | 440 | |
Real Estate | | | 24 | | | | 0 | | | | 0 | | | | 24 | |
Utilities | | | 182 | | | | 0 | | | | 0 | | | | 182 | |
Real Estate Investment Trusts | |
United States | |
Real Estate | | | 155 | | | | 0 | | | | 0 | | | | 155 | |
| | | | | | | | | | | | | | | | |
| | | | |
Total Investments | | $ | 12,093 | | | $ | 0 | | | $ | 0 | | | $ | 12,093 | |
| | | | | | | | | | | | | | | | |
There were no significant transfers into or out of Level 3 during the period ended December 31, 2020.
| | | | | | |
| 54 | | PIMCO EQUITY SERIES | | | See Accompanying Notes | |
| | | | | | |
| Notes to Financial Statements | | | | December 31, 2020 | | (Unaudited) |
1. ORGANIZATION
PIMCO Equity Series (the “Trust”) was established as a Delaware statutory trust on March 30, 2010. 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 the 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. Each Fund offers and issues shares only in aggregations of a specified number of shares (“Creation Units”).
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 functional and reporting currency for the Funds is the U.S. dollar. 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) Foreign Currency Translation 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.
| | | | | | | | | | | | |
| | | | SEMIANNUAL REPORT | | | | | | | DECEMBER 31, 2020 | | | 55 |
| | | | | | |
| Notes to Financial Statements | | (Cont.) | | | | |
(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 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 | |
| | | |
PIMCO RAFI ESG U.S. ETF | | | | | | | Quarterly | | | | Quarterly | |
In addition, each Fund distributes any net capital gains it earns from the sale of portfolio securities to shareholders no less frequently than annually. Net short-term capital gains may be paid more frequently. 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.
Separately, if a Fund determines that a portion of a distribution may be comprised of amounts from capital gains, paid in capital, or other capital sources in accordance with its policies, accounting records, and accounting practices, the Fund will notify shareholders of the estimated composition of such distribution through a Section 19 Notice. For these purposes, a Fund determines 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 determined 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 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 provided to shareholders when such information is available.
Distributions classified as a tax basis return of capital at a Fund’s fiscal year end, if any, are reflected on the Statements of Changes in Net Assets and have been recorded to paid in capital on the Statements of Assets and Liabilities. In addition, other amounts have been reclassified between distributable earnings (accumulated loss) and paid in capital on the Statements of Assets and Liabilities to more appropriately conform U.S. GAAP to tax characterizations of distributions.
(d) New Accounting Pronouncements and Regulatory Updates In March 2020, the Financial Accounting Standards Board issued an Accounting Standards Update (“ASU”), ASU 2020-04, which provides optional guidance to ease the potential accounting burden associated with transitioning away from the London Interbank Offered Rate and other reference rates that are expected to be discontinued. The ASU is effective immediately upon release of the update on March 12, 2020 through December 31, 2022. At this time, management is evaluating implications of these changes on the financial statements.
In October 2020, the U.S. Securities and Exchange Commission (“SEC”) adopted a rule related to the use of derivatives, short sales, reverse repurchase agreements and certain other transactions by registered investment companies that rescinds and withdraws the guidance of the SEC and its staff regarding asset segregation and cover transactions. Subject to certain exceptions, the rule requires funds to trade derivatives and other transactions that create future payment or delivery obligations (except reverse repurchase agreements and similar financing transactions) subject to a value-at-risk leverage limit, certain derivatives risk management program and reporting requirements. The rule went into effect on February 19, 2021 and funds will have an eighteen-month transition period to comply with the rule and related reporting requirements. At this time, management is evaluating the implications of these changes on the financial statements.
In October 2020, the SEC adopted a rule regarding the ability of a fund to invest in other funds. The rule allows a fund to acquire shares of another fund in excess of certain limitations currently imposed by the Act without obtaining individual exemptive relief from the SEC, subject to certain conditions. The rule also included the rescission of certain
| | | | | | |
| | | | December 31, 2020 | | (Unaudited) |
exemptive relief from the SEC and guidance from the SEC staff for funds to invest in other funds. The effective date for the rule was January 19, 2021. At this time, management is evaluating the implications of these changes on the financial statements.
In December 2020, the SEC adopted a rule addressing fair valuation of fund investments. The new rule sets forth requirements for good faith determinations of fair value as well as for the performance of fair value determinations, including related oversight and reporting obligations. The new rule also defines “readily available market quotations” for purposes of the definition of “value” under the Act, and the SEC noted that this definition would apply in all contexts under the Act. The effective date for the rule is March 8, 2021. The SEC adopted an eighteen-month transition period beginning from the effective date for both the new rule and the associated new recordkeeping requirements. At this time, management is evaluating the implications of these changes on the financial statements.
3. INVESTMENT VALUATION AND FAIR VALUE MEASUREMENTS
(a) Investment Valuation Policies The 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 (normally 4:00 p.m., Eastern time) (“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. If regular trading on the NYSE closes earlier than scheduled, each Fund reserves the right to either (i) calculate its NAV as of the earlier closing time or (ii) calculate its NAV as of the normally scheduled close of regular trading on the NYSE for that day. Each Fund generally does not calculate its NAV on days during which the NYSE is closed. However, if the NYSE is closed on a day it would normally be open for business, each Fund reserves the right to calculate its NAV as of the normally scheduled close of regular trading on the NYSE for that day or such other time that the Fund may determine.
For purposes of calculating NAV, portfolio securities and other assets for which market quotes are readily available are valued at market value. Market value is generally determined on the basis of official closing prices or the last reported sales prices, or if no sales are reported, based on quotes obtained from established market makers or prices (including evaluated prices) supplied by the Funds’ approved pricing services, quotation reporting systems and other third-party
sources (together, “Pricing Services”). The Funds will normally use pricing data for domestic equity securities received shortly after the NYSE Close and do not normally take into account trading, clearances or settlements that take place after the NYSE Close. 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
| | | | | | | | | | | | |
| | | | SEMIANNUAL REPORT | | | | | | | DECEMBER 31, 2020 | | | 57 |
| | | | | | |
| Notes to Financial Statements | | (Cont.) | | | | |
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 are 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 are 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 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 Board. 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. |
| | | | | | |
| | | | December 31, 2020 | | (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 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
| | | | | | | | | | | | |
| | | | SEMIANNUAL REPORT | | | | | | | DECEMBER 31, 2020 | | | 59 |
| | | | | | |
| 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, London Interbank Offered Rate 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 Affiliates
Each Fund eligible to participate in securities lending may invest the cash collateral received for securities out on loan in the PIMCO Government Money Market Fund under the Securities Lending Agreement. All or a portion of Dividend Income as shown in the table below represents the income earned on the cash collateral invested in PIMCO Government Money Market Fund and is included on the Statements of Operations as a component of Securities Lending Income. PIMCO Government Money Market Fund is considered to be affiliated with the Funds. A complete schedule of portfolio holdings for each affiliate fund is filed with the SEC for the first and third quarters of each fiscal year on Form N-PORT and is available at the SEC’s website at www.sec.gov. A copy of each affiliate fund’s shareholder report is also available at the SEC’s website at www.sec.gov, on the Funds’ website at www.pimco.com, or upon request, as applicable. The table below shows the Funds’ transactions in and earnings from investments in the affiliated Fund for the period ended December 31, 2020 (amounts in thousands†):
Investments in PIMCO Government Money Market Fund
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Fund Name | | | | | Market Value
06/30/2020 | | | Purchases
at Cost | | | Proceeds
from Sales | | | Net
Realized
Gain (Loss) | | | Change in
Unrealized
Appreciation
(Depreciation) | | | Market Value
12/31/2020 | | | Dividend
Income(1) | | | Realized Net
Capital Gain
Distributions(1) | |
| | | | | | | | | |
PIMCO RAFI Dynamic Multi-Factor Emerging Markets Equity ETF | | | | | | $ | 6,038 | | | $ | 42,350 | | | $ | (38,305 | ) | | $ | 0 | | | $ | 0 | | | $ | 10,083 | | | $ | 0 | | | $ | 0 | |
| | | | | | | | | |
PIMCO RAFI Dynamic Multi-Factor International Equity ETF | | | | | | | 0 | | | | 1,485 | | | | (1,136 | ) | | | 0 | | | | 0 | | | | 349 | | | | 0 | | | | 0 | |
| | | | | | | | | |
PIMCO RAFI Dynamic Multi-Factor U.S. Equity ETF | | | | | | | 39 | | | | 345 | | | | (311 | ) | | | 0 | | | | 0 | | | | 73 | | | | 0 | | | | 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.
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.
| | | | | | |
| | | | December 31, 2020 | | (Unaudited) |
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, 2020, as applicable, 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. 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 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) Securities Lending The Funds listed below may seek to earn additional income by lending their securities to certain qualified broker-dealers and institutions on a short-term or long-term basis via a lending agent.
| | | | |
| Fund Name | | | |
| |
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 | | | | |
| |
PIMCO RAFI ESG U.S. ETF | | | | |
Securities on loan are required to be secured by cash collateral at least equal to 102% of the domestic, or 105% of the foreign security’s market value. If the market value of the collateral at the close of trading on a business day is less than 100% of the market value of the loaned securities at the close of trading on that day, the borrower shall be required to deliver, by the close of business on the following business day, an additional amount of collateral, so that the total amount of posted collateral is equal to at least 100% of the market
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| | | | SEMIANNUAL REPORT | | | | | | | DECEMBER 31, 2020 | | | 61 |
| | | | | | |
| Notes to Financial Statements | | (Cont.) | | | | |
value of all the loaned securities as of such preceding day. The Funds will then invest the cash collateral received in the PIMCO Government Money Market Fund and record a liability for the return of the collateral during the period the securities are on loan. Each Fund is subject to a lending limit of 33.33% of total assets (including the value of collateral).
The loans are subject to termination at the option of the borrower or the Fund. Upon termination of the loan, the borrower will return to the lender securities identical to the loaned securities. Should the borrower of the securities fail to return loaned securities, the Fund has the right to repurchase the securities using the collateral in the open market.
The borrower pays fees at the Funds’ direction to the lending agent. The lending agent may retain a portion of the fees and interest earned on the cash collateral invested as compensation for its services. Investments made with the cash collateral are disclosed on the Schedules of Investments, if applicable. The lending fees and the Funds’ portion of the interest income earned on cash collateral are included on the Statements of Operations as securities lending income, if applicable.
(c) Interfund Lending In accordance with an exemptive order (the “Order”) from the SEC, the Funds of the Trust may participate in a joint lending and borrowing facility for temporary purposes (the “Interfund Lending Program”), subject to compliance with the terms and conditions of the Order, and to the extent permitted by each Funds’ investment policies and restrictions. The Funds are currently permitted to borrow under the Interfund Lending Program. A lending fund may lend in aggregate up to 15% of its current net assets at the time of the interfund loan, but may not lend more than 5% of its net assets to any one borrowing fund through the Interfund Lending Program. A borrowing fund may not borrow through the Interfund Lending Program or from any other source if its total outstanding borrowings immediately after the borrowing would be more than 33 1/3% of its total assets (or any lower threshold provided for by the funds’ investment restrictions). If a borrowing funds’ total outstanding borrowings exceed 10% of its total assets, each of its outstanding interfund loans will be subject to collateralization of at least 102% of the outstanding principal value of the loan. All interfund loans are for temporary or emergency purposes and the interfund loan rate to be charged will be the average of the highest current overnight repurchase agreement rate available to a lending fund and the bank loan rate, as calculated according to a formula established by the Board.
During the period ended December 31, 2020, the Funds did not participate in the Interfund Lending Program.
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 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.
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.
| | | | | | |
| | | | December 31, 2020 | | (Unaudited) |
7. PRINCIPAL AND OTHER RISKS
(a) 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
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 | | PIMCO RAFI ESG U.S. ETF |
| | | | | |
New Fund | | | | | | — | | — | | — | | X |
| | | | | |
Small Fund | | | | | | — | | X | | X | | X |
| | | | | |
Market Trading | | | | | | X | | X | | X | | X |
| | | | | |
Equity | | | | | | X | | X | | X | | X |
| | | | | |
Credit | | | | | | X | | X | | X | | X |
| | | | | |
Market | | | | | | X | | X | | X | | X |
| | | | | |
Liquidity | | | | | | X | | X | | X | | X |
| | | | | |
Issuer | | | | | | X | | X | | X | | X |
| | | | | |
Derivatives | | | | | | X | | X | | X | | X |
| | | | | |
Foreign (Non-U.S.) Investment | | | | | | X | | X | | — | | — |
| | | | | |
Emerging Markets | | | | | | X | | — | | — | | — |
| | | | | |
Currency | | | | | | X | | X | | — | | — |
| | | | | |
Model | | | | | | X | | X | | X | | X |
| | | | | |
Leveraging | | | | | | X | | X | | X | | X |
| | | | | |
Management and Tracking Error | | | | | | X | | X | | X | | X |
| | | | | |
Indexing | | | | | | X | | X | | X | | X |
| | | | | |
Environmental, Social and Governance Investing | | | | | | — | | — | | — | | 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 Fund Risk is the risk that a new fund’s performance may not represent how the fund is expected to or may perform in the long term. In addition, new funds have limited operating histories for investors to evaluate and new funds may not attract sufficient assets to achieve investment and trading efficiencies.
Small Fund Risk is the risk that a smaller Fund may not achieve investment or trading efficiencies. Additionally, a smaller Fund may be more adversely affected by large purchases or redemptions of Fund shares.
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, or is perceived (whether by market participants, rating agencies, pricing services or otherwise) as 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.
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 investments 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, and valuation complexity. Changes in the value of a 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. The primary credit risk on derivatives that are exchange-traded or traded through a central clearing counterparty resides with a Fund’s clearing broker, or the clearinghouse itself. Changes in regulation relating to a fund’s use of derivatives and related instruments could potentially limit or impact the 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
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| | | | SEMIANNUAL REPORT | | | | | | | DECEMBER 31, 2020 | | | 63 |
| | | | | | |
| Notes to Financial Statements | | (Cont.) | | | | |
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, may contain design flaws or faulty assumptions, and may rely on incomplete or inaccurate data, any of which 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.
Environmental, Social and Governance Investing Risk is the risk that, because the Underlying Index may select or exclude securities of certain issuers for reasons other than performance, a Fund’s performance will differ from funds that do not utilize an ESG investing strategy. ESG investing is qualitative and subjective by nature, and there is no guarantee that the factors utilized by the Index Provider or any judgment exercised by the Index Provider in constructing the Underlying Index will reflect the opinions of any particular investor.
(b) Other Risks
In general, a Fund may be subject to additional risks, including, but not limited to, risks related to government regulation and intervention in financial markets, operational risks, risks associated with financial, economic and global market disruptions, and cybersecurity risks. Please see a Fund’s prospectus and Statement of Additional Information for a more detailed description of the risks of investing in a Fund. Please see the Important Information section of this report for additional discussion of certain regulatory and market developments (such as the anticipated discontinuation of the London Interbank Offered Rate) that may impact a Fund’s performance.
Market Disruption Risk A Fund is subject to investment and operational risks associated with financial, economic and other global market developments and disruptions, including those arising from war, terrorism, market manipulation, government interventions, defaults and shutdowns, political changes or diplomatic developments, public health emergencies (such as the spread of infectious diseases, pandemics and epidemics) and natural/environmental disasters, which can all negatively impact the securities markets, interest rates, auctions, secondary trading, ratings, credit risk, inflation, deflation and other factors relating to the Fund’s investments or the Investment Manager’s operations and cause a Fund to lose value. These events can also impair the technology and other operational systems upon which a Fund’s service providers, including PIMCO as a Fund’s investment adviser, rely, and could otherwise disrupt a Fund’s service providers’ ability to fulfill their obligations to a Fund. For example, the recent spread of an infectious respiratory illness caused by a novel strain of coronavirus (known as COVID-19) has caused volatility, severe market dislocations and liquidity constraints in many markets, including markets for the securities a Fund holds, and may adversely affect a Fund’s investments and operations. Please see the Important Information section for additional discussion of the COVID-19 pandemic.
Government Intervention in Financial Markets Federal, state, and other governments, their regulatory agencies, or self-regulatory organizations may take actions that affect the regulation of the
| | | | | | |
| | | | December 31, 2020 | | (Unaudited) |
instruments in which a Fund invests, or the issuers of such instruments, in ways that are unforeseeable. Legislation or regulation may also change the way in which a Fund itself is regulated. Such legislation or regulation could limit or preclude a Fund’s ability to achieve its investment objective. Furthermore, volatile financial markets can expose a Fund to greater market and liquidity risk and potential difficulty in valuing portfolio instruments held by the Fund. The value of a Fund’s holdings is also generally subject to the risk of future local, national, or global economic disturbances based on unknown weaknesses in the markets in which a Fund invests. In addition, it is not certain that the U.S. Government will intervene in response to a future market disturbance and the effect of any such future intervention cannot be predicted. It is difficult for issuers to prepare for the impact of future financial downturns, although companies can seek to identify and manage future uncertainties through risk management programs.
Regulatory Risk Financial entities, such as investment companies and investment advisers, are generally subject to extensive government regulation and intervention. Government regulation and/or intervention may change the way a Fund is regulated, affect the expenses incurred directly by a Fund and the value of its investments, and limit and/or preclude a Fund’s ability to achieve its investment objective. Government regulation may change frequently and may have significant adverse consequences. Moreover, government regulation may have unpredictable and unintended effects.
Operational Risk An investment in a Fund, like any fund, can involve operational risks arising from factors such as processing errors, human errors, inadequate or failed internal or external processes, failures in systems and technology, changes in personnel and errors caused by third-party service providers. The occurrence of any of these failures, errors or breaches could result in a loss of information, regulatory scrutiny, reputational damage or other events, any of which could have a material adverse effect on a Fund. While a Fund seeks to minimize such events through controls and oversight, there may still be failures that could cause losses to the Fund.
Cyber Security Risk As the use of technology has become more prevalent in the course of business, the Funds have become potentially more susceptible to operational and information security risks resulting from breaches in cyber security. A breach in cyber security refers to both intentional and unintentional cyber events that may, among other things, cause a Fund to lose proprietary information, suffer data corruption and/or destruction or lose operational capacity, result in the unauthorized release or other misuse of confidential information, or otherwise disrupt normal business operations. Cyber security failures or breaches may result in financial losses to a Fund and its shareholders. These failures or breaches may also result in disruptions to business operations, potentially resulting in financial losses; interference with a
Fund’s ability to calculate its net asset value, process shareholder transactions or otherwise transact business with shareholders; impediments to trading; violations of applicable privacy and other laws; regulatory fines; penalties; reputational damage; reimbursement or other compensation costs; additional compliance and cyber security risk management costs and other adverse consequences. In addition, substantial costs may be incurred in order to prevent any cyber incidents in the future.
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 are intended to reduce the counterparty risk associated with relevant transactions by specifying credit protection mechanisms and providing standardization that is intended to improve 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 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.
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| | | | SEMIANNUAL REPORT | | | | | | | DECEMBER 31, 2020 | | | 65 |
| | | | | | |
| Notes to Financial Statements | | (Cont.) | | | | |
Master Repurchase Agreements and Global Master Repurchase Agreements (individually and collectively “Master Repo Agreements”) govern repurchase, reverse repurchase, and certain 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 certain 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. 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 generally 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. 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 or as required by regulation. Similarly, if required by regulation, the Funds may be required to post additional collateral beyond coverage of daily exposure. These amounts, if any, may (or if required by law, will) be segregated with a third-party custodian. To the extent the Funds are required by regulation to post additional collateral beyond coverage of daily exposure, they could potentially incur costs, including in procuring eligible assets to meet collateral requirements, associated with such posting. 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) 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% | |
| | |
PIMCO RAFI ESG U.S. 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, 2020 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. 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
| | | | | | |
| | | | December 31, 2020 | | (Unaudited) |
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 expenses; (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.
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, pro rata share of expenses related to obtaining or maintaining a Legal Entity Identifier 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). 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. The waiver is reflected on the Statements of Operations as a component of Waiver and/or Reimbursement by PIMCO.
In any month in which the investment management agreement is in effect, PIMCO is entitled to reimbursement by each Fund of any portion of the Management Fee and/or other expenses waived or reimbursed as set forth above (the “Reimbursement Amount”) during the previous thirty-six months from the date of the waiver, provided that such amount paid to PIMCO will not: i) together with any organizational expenses, pro rata share of expenses related to obtaining or maintaining a Legal Entity Identifier and pro rata Trustee fees, exceed, for such month, the Expense Limit (or the amount of the expense limit in place at the time the amount being recouped was originally waived if lower than the Expense Limit); ii) exceed the total Reimbursement Amount; or iii) include any amounts previously reimbursed to PIMCO. The total recoverable amounts to PIMCO at December 31, 2020, were as follows (amounts in thousands†):
| | | | | | | | | | | | | | | | | | | | |
| | | | | | Expiring within | | | | |
| | | | | |
| Fund Name | | | | | 12 months | | | 13-24 months | | | 25-36 months | | | Total | |
| | | | | |
PIMCO RAFI Dynamic Multi-Factor Emerging Markets Equity ETF | | | | | | $ | 75 | | | $ | 28 | | | $ | 38 | | | $ | 141 | |
| | | | | |
PIMCO RAFI Dynamic Multi-Factor International Equity ETF | | | | | | | 119 | | | | 2 | | | | 2 | | | | 123 | |
| | | | | |
PIMCO RAFI Dynamic Multi-Factor U.S. Equity ETF | | | | | | | 115 | | | | 6 | | | | 5 | | | | 126 | |
| | | | | |
PIMCO RAFI ESG U.S. ETF | | | | | | | 0 | | | | 0 | | | | 78 | | | | 78 | |
| † | A zero balance may reflect actual amounts rounding to less than one thousand. |
10. RELATED PARTY TRANSACTIONS
The Manager 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.
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, including brokerage commissions or dealer mark-ups and other transaction costs on the sale of securities and reinvestments in other securities, which are borne by the Fund. 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 when distributed to shareholders). The transaction costs associated with portfolio turnover may adversely affect a Fund’s performance. The portfolio turnover rates are reported in the Financial Highlights.
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| | | | SEMIANNUAL REPORT | | | | | | | DECEMBER 31, 2020 | | | 67 |
| | | | | | |
| Notes to Financial Statements | | (Cont.) | | | | |
Purchases and sales of securities (excluding short-term investments) for the period ended December 31, 2020, 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 | | | $ | 161,366 | | | $ | 160,546 | |
| | | | | |
PIMCO RAFI Dynamic Multi-Factor International Equity ETF | | | | | | | 0 | | | | 0 | | | | 9,467 | | | | 9,616 | |
| | | | | |
PIMCO RAFI Dynamic Multi-Factor U.S. Equity ETF | | | | | | | 0 | | | | 0 | | | | 14,513 | | | | 14,666 | |
| | | | | |
PIMCO RAFI ESG U.S. Exchange-Traded Fund | | | | | | | 0 | | | | 0 | | | | 1,550 | | | | 1,579 | |
| † | A zero balance may reflect actual amounts rounding to less than one thousand. |
13. 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/
Redemption
Transaction Fee* | | | 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% | |
| | | | |
PIMCO RAFI ESG U.S. ETF | | | | | | $ | 500 | | | | 3.00% | | | | 2.00% | |
| * | Applicable to in-kind contributions or redemptions only. |
| ** | As a percentage of the net asset value per Creation Unit purchased or redeemed, inclusive of the standard creation transaction fee (if imposed). |
14. INVESTMENT TRANSACTIONS
For the period ended December 31, 2020, certain Funds had in-kind contributions and in-kind redemptions as follows (amounts in thousands†):
| | | | | | | | | | | | |
| Fund Name | | | | | Contributions | | | Redemptions | |
| | | |
PIMCO RAFI Dynamic Multi-Factor Emerging Markets Equity ETF | | | | | | $ | 1,558 | | | $ | 8,142 | |
| | | |
PIMCO RAFI Dynamic Multi-Factor International Equity ETF | | | | | | | 38,829 | | | | 0 | |
| | | |
PIMCO RAFI Dynamic Multi-Factor U.S. Equity ETF | | | | | | | 42,059 | | | | 9,494 | |
| | | |
PIMCO RAFI ESG U.S. ETF | | | | | | | 1,268 | | | | 0 | |
| † | A zero balance may reflect actual amounts rounding to less than one thousand. |
The in-kind contributions and in-kind redemptions in this table may not agree with the Fund Share Transactions on the Statements of Changes in Net Assets. The table represents the accumulation of each Fund’s daily net shareholder transactions while the Statements of Changes in
Net Assets reflect gross shareholder transactions including any cash component of the transactions.
15. 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.
16. 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.
| | | | | | |
| | | | December 31, 2020 | | (Unaudited) |
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, 2020, 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, 2020, the Funds had the following post-effective capital losses with no expiration (amounts in thousands†):
| | | | | | | | | | | | |
| | | | | | Short-Term | | | Long-Term | |
| | | |
PIMCO RAFI Dynamic Multi-Factor Emerging Markets Equity ETF | | | | | | $ | 57,600 | | | $ | 39,425 | |
| | | |
PIMCO RAFI Dynamic Multi-Factor International Equity ETF | | | | | | | 3,529 | | | | 2,781 | |
| | | |
PIMCO RAFI Dynamic Multi-Factor U.S. Equity ETF | | | | | | | 9,257 | | | | 3,247 | |
| | | |
PIMCO RAFI ESG U.S. ETF | | | | | | | 405 | | | | 0 | |
| † | A zero balance may reflect actual amounts rounding to less than one thousand. |
As of December 31, 2020, 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) | |
| | | | | |
PIMCO RAFI Dynamic Multi-Factor Emerging Markets Equity ETF | | | | | | $ | 655,906 | | | $ | 172,527 | | | $ | (24,112 | ) | | $ | 148,415 | |
| | | | | |
PIMCO RAFI Dynamic Multi-Factor International Equity ETF | | | | | | | 63,394 | | | | 10,431 | | | | (472 | ) | | | 9,959 | |
| | | | | |
PIMCO RAFI Dynamic Multi-Factor U.S. Equity ETF | | | | | | | 60,729 | | | | 8,258 | | | | (352 | ) | | | 7,906 | |
| | | | | |
PIMCO RAFI ESG U.S. Exchange-Traded Fund | | | | | | | 11,742 | | | | 860 | | | | (509 | ) | | | 351 | |
| † | 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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| | | | SEMIANNUAL REPORT | | | | | | | DECEMBER 31, 2020 | | | 69 |
| | | | | | |
| Glossary: | | (abbreviations that may be used in the preceding statements) | | | | (Unaudited) |
| | | | | | | | | | |
| | | | |
Counterparty Abbreviations: | | | | | | | | |
| | | | | |
| BMO | | BMO Capital Markets Corp. | | FOB | | Credit Suisse Securities (USA) LLC | | SAL | | Citigroup Global Markets, Inc. |
| | | | | |
| BSN | | The Bank of Nova Scotia - Toronto | | GSC | | Goldman Sachs & Co. LLC | | SSB | | State Street Bank and Trust Co. |
| | | | | |
| FICC | | Fixed Income Clearing Corporation | | MSC | | Morgan Stanley & Co. LLC. | | UBS | | UBS Securities LLC |
| | | | |
Currency Abbreviations: | | | | | | | | |
| | | | | |
| USD (or $) | | United States Dollar | | | | | | | | |
| | | | |
Exchange Abbreviations: | | | | | | | | |
| | | | | |
| OTC | | Over the Counter | | | | | | | | |
| | | | |
Other Abbreviations: | | | | | | | | |
| | | | | |
| ADR | | American Depositary Receipt | | NVDR | | Non-Voting Depositary Receipt | | SP - ADR | | Sponsored American Depositary Receipt |
| | | | | |
| GDR | | Global Depositary Receipt | | REIT | | Real Estate Investment Trust | | TBA | | To-Be-Announced |
| | | | |
| Approval of Investment Advisory Contract and Other Agreements | | | | (Unaudited) |
Approval of Renewal 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 PIMCO RAFI Dynamic Multi-Factor Emerging Markets Equity ETF and PIMCO RAFI ESG U.S. ETF
At a meeting held on August 18-19, 2020, 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 Management Agreement (the “Investment Management Agreement”) between the Trust, on behalf of PIMCO RAFI Dynamic Multi-Factor U.S. Equity ETF, PIMCO RAFI Dynamic Multi-Factor International Equity ETF, PIMCO RAFI Dynamic Multi-Factor Emerging Markets Equity ETF and PIMCO RAFI ESG U.S. ETF (each, a “Fund,” and collectively, the “Funds”), and Pacific Investment Management Company LLC (“PIMCO”) for an additional one-year term through August 31, 2021.1 In addition, the Board considered and unanimously approved the renewal of the Sub-Advisory Agreement (the “Sub-Advisory Agreement”) between PIMCO, on behalf of the Funds, each a series of the Trust, and Parametric Portfolio Associates LLC (“Parametric”) for an additional one-year period through August 31, 2021.
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 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 and Parametric to the Trust and each of the Funds, as applicable. In considering whether to approve the renewal of the Investment Management Agreement and Sub-Advisory Agreement, the Board reviewed additional information, including, but not limited to, comparative industry data with regard to investment performance, management fees, financial information for PIMCO and, where relevant, financial information for Parametric, information regarding the profitability to PIMCO of its relationship with
| 1 | The Board, including a majority of the Independent Trustees, determined to rely on the relief granted by a temporary exemptive order issued by the U.S. Securities and Exchange Commission (the “SEC”) under the Investment Company Act of 1940 that permits fund boards of trustees to approve advisory contracts at a meeting held by remote communications that allows participating trustees to hear one another simultaneously, rather than in-person, in light of the impact of the novel coronavirus (“COVID-19”) pandemic and restrictions on travel and in-person gatherings. The Board determined that reliance on the exemptive order was necessary and appropriate due to circumstances related to current or potential effects of the COVID-19 pandemic and government-mandated restrictions, and prior to commencing the approval meeting, the Board confirmed that all Board members could hear each other simultaneously during the meeting. The Board noted that it would ratify any actions taken at this meeting pursuant to the SEC relief at its next in-person meeting. |
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, a memorandum outlining legal duties of the Board in considering the renewal of the Investment Management Agreement and Sub-Advisory Agreement.
(b) Review Process: In connection with considering the renewal of the Investment Management Agreement and Sub-Advisory Agreement, the Board reviewed written materials prepared by PIMCO and, where applicable, 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. (“Broadridge”), an independent provider of investment company performance information and fee and expense data. The Board received presentations from PIMCO and, where applicable, information from Parametric on matters related to the Investment Management Agreement and Sub-Advisory Agreement and met both as a full Board and in a separate session of the Independent Trustees, without management present, at the August 18-19, 2020 meeting. The Independent Trustees also met telephonically with counsel to the Trust and the Independent Trustees, including telephonic meetings on July 10, 2020 and July 30, 2020, and conducted a telephonic meeting on July 30, 2020 with management and counsel to the Trust and the Independent Trustees, to discuss the materials presented and other matters deemed relevant to their consideration of the renewal of the Investment Management Agreement and the Sub-Advisory Agreement. In connection with its review of the Investment Management Agreement and the Sub-Advisory Agreement, the Board received comparative information on the performance, the risk-adjusted performance and the fees and expenses of other peer group funds. The Independent Trustees also requested and received supplemental information, including information regarding Fund performance and profitability.
The approval determinations were made on the basis of each Trustee’s business judgment after consideration and evaluation of all the
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| | | | SEMIANNUAL REPORT | | | | | | | DECEMBER 31, 2020 | | | 71 |
| | | | |
| Approval of Investment Advisory Contract and Other Agreements | | (Cont.) | | |
information presented. Individual Trustees may have given different weight 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 Investment Management Agreement and Sub-Advisory 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 consideration of the renewal of the Investment Management Agreement and Sub-Advisory Agreement, 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, but not limited to: 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 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 enhancing and investing in its global infrastructure, technology capabilities, risk management processes and the specialized talent needed to stay at the forefront of the competitive investment management industry and to strengthen its ability to deliver services under the Investment Management Agreement. The Board considered PIMCO’s policies, procedures and systems reasonably designed to assure compliance with applicable laws and regulations, including new regulations impacting the Funds, 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.
In addition, the Trustees considered new services and service enhancements that PIMCO has implemented, including, but not limited to: investing in its cybersecurity program and business continuity functions, including the build-out of a new data center; funding projects and initiatives in support of the Funds; improving PIMCO governance and oversight of key fund administration processes;
expanding and engaging a technology consultant to improve certain performance reconciliation processes; enhancing PIMCO’s oversight over certain of the Funds’ service providers; continuing to develop initiatives related to pricing, including, among other items, development of pricing tools and capabilities and continued extensive due diligence regarding pricing vendors; forming a new internal group responsible for the operational aspects of the Liquidity Risk Management Programs; developing compliance and operations processes in connection with regulatory developments, including Rule 6c-11 under the Investment Company Act of 1940, as amended, pertaining to exchange-traded funds; continuing to invest in PIMCO’s technology infrastructure; continuing oversight by the Americas Fund Oversight Committee, which provides senior-level oversight and supervision focused on new and ongoing fund-related business opportunities; expanding engagement with a third party service provider to provide certain additional fund administration services subject to PIMCO’s oversight; investing in the Fund Treasurer’s Office; enhancing a proprietary application to support new trading strategies and increase data precision and administration control; developing a global tax management application that will enable investment professionals to access foreign market and security tax information on a real-time basis; utilizing a service provider’s proprietary software and managed service model to timely meet N-PORT and N-CEN regulatory requirements; upgrading a proprietary application to allow shareholder subscription and redemption data to pass to portfolio managers more quickly and efficiently; implementing a contingent NAV process; continuing to advocate in the public policy arena; developing a proprietary tool to monitor and facilitate potential interfund lending; utilizing a third-party software technology to allow portfolio management teams to run pre-trade calculations regarding new exchange-traded and cleared derivatives; and developing technology solutions to leverage artificial intelligence and machine learning.
Similarly, the Board considered the sub-advisory services provided by Parametric to the Funds. The Board considered PIMCO’s oversight of Parametric in connection with Parametric providing sub-advisory services to the Funds. The Board further considered the difference between the sub-advisory services that Parametric provides to the Funds and the portfolio implementation services that Parametric performs for certain other series of the Trust. The Board also reviewed materials regarding the nature, extent 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 sub-adviser.
Ultimately, the Board concluded that the nature, extent and quality of services provided or procured by PIMCO under the Investment Management Agreement and provided by Parametric under the Sub-Advisory Agreement are likely to continue to benefit the Funds and their shareholders.
(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 Investment Management Agreement. The Board considered the terms of the Investment 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 provides or procures certain supervisory and administrative services and bears the costs of various third party services required by the Funds, including, but not limited to, audit, custodial, portfolio accounting, ordinary legal, transfer agency 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 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, since inception and, for each Fund except the PIMCO RAFI ESG U.S. ETF, over the one-year period-ended March 31, 2020 net-of-fees and other performance data, as available, since inception and, for each Fund except the PIMCO RAFI ESG U.S. ETF, over the one-year period-ended June 30, 2020 (the “PIMCO Report”) and from Broadridge concerning the Funds’ performance, as available, since inception and through the period-ended March 31, 2020 (the “Broadridge Report”). The Board considered information regarding the 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 Broadridge Report, which were provided in advance of the August 18-19, 2020 meeting.
The Board reviewed materials indicating that, according to the Broadridge Report, the Funds underperformed their peer groups during the one-year period-ended March 31, 2020. The Board reviewed materials indicating that the Funds, except the PIMCO RAFI ESG U.S. ETF which did not a full year of performance as of March 31, 2020, had underperformed in comparison to their respective benchmark indexes over the one-year period ended March 31, 2020 net-of-fees. PIMCO reported to the Board about the reasons for the underperformance and actions that have been taken by PIMCO throughout the year to attempt to address such underperformance.
The Board ultimately concluded, within the context of all of its considerations in connection with the Investment Management Agreement, 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 Investment Management Agreement.
4. MANAGEMENT FEE AND TOTAL EXPENSES
The Board considered that PIMCO seeks to price new funds to scale at the outset. The Board noted that PIMCO generally seeks to price new funds competitively against the median total expense ratio of the respective Broadridge peer group, if available, while acknowledging that a fee premium may be appropriate for innovative investment offerings. PIMCO reported to the Board that, in proposing fees for any Fund, 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 and the competitive marketplace for financial products. 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 reviewed the management fee 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 Parametric with respect to the Funds, taking into account that PIMCO compensates Parametric from the management fees paid by such Funds to PIMCO. With respect to the management fees, the Board reviewed data from the Broadridge Report 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. In addition, the Board considered the expense limitation agreement in place for all of the Funds. The Board also considered that PIMCO reviews the Funds’ fee levels and carefully considers changes where appropriate.
The Board also reviewed data comparing certain Funds’ management fees to the fee rates PIMCO charges to clients (both advised and sub-advised) with similar investment strategies. In cases where the fees for other clients were lower than those charged to the Funds, the Trustees noted that the differences in fees were attributable to various factors, including, but not limited to, differences in the advisory and other services provided by PIMCO to the Funds, differences in the number or extent of the services provided by PIMCO to the Funds and the manner in which similar portfolios may be managed, different requirements with respect to liquidity management and the implementation of other regulatory requirements. The Trustees also considered that PIMCO faces increased entrepreneurial, legal and
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| | | | SEMIANNUAL REPORT | | | | | | | DECEMBER 31, 2020 | | | 73 |
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| Approval of Investment Advisory Contract and Other Agreements | | (Cont.) | | |
regulatory risk in sponsoring and managing mutual funds and ETFs as compared to external sub-advised funds or other investment products.
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, legal and regulatory risk 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.
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 such services and bears the costs of various third party services required by the Funds, including audit, custodial, portfolio accounting, ordinary legal, transfer agency and printing costs. The Board also considered that the unified 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 inherently reflects certain 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 Funds to scale at inception and reinvesting in other important areas of the business that support the Funds. The Board concluded that the Funds’ fees were reasonable in relation to the value of the services provided, and that the unified fee represents, 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. Upon comparing the Funds’ total expenses to other funds in the “Peer Groups” provided by the Broadridge Report, the Board found total expenses of each Fund to be reasonable.
Based on the information presented by PIMCO, Parametric and Broadridge, members of the Board determined, in the exercise of their business judgment, that the management fees charged by PIMCO under the Investment Management Agreement, that the fees charged by Parametric under the Sub-Advisory Agreement, and that 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, as well as the resulting level of profits attributable to the
Funds. The Board also noted that it had received information regarding the structure and manner in which PIMCO’s and Parametric’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 investment in global infrastructure, technology capabilities, risk management processes and qualified personnel to reinforce and offer new services and to accommodate changing regulatory requirements. The Board considered the existence of any economies of scale and noted that, to the extent that PIMCO achieves economies of scale in managing the Funds, PIMCO shares the benefits of economies of scale, if any, 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, governance and oversight of those services, and through fee reductions or waivers, the pricing of Funds to scale from inception and the enhancement of services provided to the Funds in return for fees paid. 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 management 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 fees over the annual contract period even if the particular Fund’s assets decline and/or operating costs rise. The Trustees also reviewed materials indicating 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.
The Board concluded that the Funds’ cost structures were reasonable and that PIMCO is appropriately sharing economies of scale, if any, through the Funds’ unified fee structure, generally pricing Funds to scale at inception and reinvesting in its business to provide enhanced and expanded services to the Funds and their 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 noted 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 and Parametric supported the renewal of the Funds’ Investment Management Agreement and Sub-Advisory Agreement. The Independent Trustees and the Board as a whole concluded that the Funds’ Investment Management Agreement and Sub-Advisory 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 Investment Management Agreement, the fees paid to Parametric by PIMCO under the Sub-Advisory Agreement, and that the renewal of the Investment Management Agreement and the Sub-Advisory Agreement was in the best interests of the Funds and their shareholders.
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| | | | SEMIANNUAL REPORT | | | | | | | DECEMBER 31, 2020 | | | 75 |
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 & Trust Co.
State Street Financial Center
One Lincoln Street
Boston, MA 02111
Transfer Agent
State Street Bank & Trust Co.
State Street Financial Center
One Lincoln Street
Boston, MA 02111
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 Funds listed on the Report cover.
PES4004SAR_123120
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 to open-end investment companies.
| Item 8. | Portfolio Managers of Closed-End Management Investment Companies. |
Not applicable to open-end investment companies.
| Item 9. | Purchases of Equity Securities by Closed-End Management Investment Company and Affiliated Purchasers. |
Not applicable to open-end investment companies.
| 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 last 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 to open-end investment companies.
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/ Eric D. Johnson |
| | Eric D. Johnson |
| | President (Principal Executive Officer) |
| |
| Date: | | February 25, 2021 |
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/ Eric D. Johnson |
| | Eric D. Johnson |
| | President (Principal Executive Officer) |
| |
| Date: | | February 25, 2021 |
| |
| By: | | /s/ Bijal Parikh |
| | Bijal Parikh |
| | Treasurer (Principal Financial & Accounting Officer) |
| |
| Date: | | February 25, 2021 |
