• Provides dynamic asset allocation tailored to investors expecting to retire around the year 2050.
• Uniquely designed to grow and protect long-term purchasing power – a foremost goal of many retirement investors.
• Targets broader diversification than other target date funds that rely primarily on stocks to grow capital.
• Managed by PIMCO, one of the country’s leading investment firms.

Comprehensive Retirement Solution
The PIMCO RealRetirement Funds were designed to provide investors with a comprehensive retirement solution tailored to the time when they expect to retire. Each fund follows a diversified asset allocation strategy that is dynamically managed toward a specific retirement date. Through a unique emphasis on inflation-hedging assets, the Funds have the potential to help investors protect their purchasing power over a long-term investment horizon. The Funds, which feature target dates in ten-year increments from 2010 to 2050, are “funds of funds,” meaning that they invest primarily in a group of PIMCO-managed mutual funds rather than in individual securities.

Emphasis on Inflation Protection
PIMCO understands that sustainable spending—having an income stream that keeps up with the rising cost of goods and services—is an inherent need for many retirement investors. That is why the PIMCO RealRetirement Funds are explicitly focused on generating solid after-inflation returns. During the accumulation years leading up to retirement, the Funds seek maximum real return, consistent with preservation of capital. Accordingly, they invest a significant percentage of investors’ assets in investments with inflation-hedging potential—such as Treasury Inflation Protected Securities (TIPS), real estate and commodities—in addition to stocks and bonds.

Broader Diversification
The Funds follow a unique asset allocation model developed by PIMCO to be more broadly diversified than traditional models that depend primarily on stocks to grow capital. By tapping into a wider range of asset classes, PIMCO believes it can generate similar returns over time to many stock-heavy portfolios with significantly lower volatility.

Expert Management
PIMCO is one of the country’s premier investment managers. The firm is widely acknowledged to be one of the leading authorities on bond investing and has been managing income-oriented investment portfolios for more than three decades. In addition, PIMCO was a pioneer in the area of real return investing, having launched one of the first mutual funds to focus on TIPS in 1997 the same year the securities were introduced by the U.S. government. PIMCO’s bond management expertise also underpins its enhanced-index strategies, which provide access to stocks, commodities and other asset classes outside of fixed-income.

increasing its exposure to conservative investments as the target date approaches. The portfolio manager actively manages the underlying investments to implement the target allocation at any given point in time. It is important to note that at every stage in a Fund’s lifecycle, the target mix is designed to provide diversification across a wide range of asset classes, with emphasis on those that can protect against inflation. While the Funds always maintain some exposure to growth-oriented investments, they avoid concentrating on a single high-risk asset class, investing in a combination of U.S. and international stocks, commodities and real estate in order to lower the potential for portfolio volatility. Importantly, the portfolio manager has the ability to make adjustments to the target allocation based on PIMCO’s outlook for the economy and the financial markets. This flexibility gives the Funds greater potential to enhance returns and manage risk across a range of market conditions.

Dr. Bhansali is a managing director and portfolio manager of PIMCO, as well as the firmwide head of analytics for portfolio management and a senior member of PIMCO's portfolio management group. Dr. Bhansali joined PIMCO in 2000; he holds a bachelor's and master's in physics from the California Institute of Technology, and a Ph.D. in theoretical particle physics from Harvard University.

Newport Beach, California

Led by Founder and Chief Investment Officer Bill Gross, PIMCO is widely recognized as one of the premier bond managers in the world. PIMCO applies this expertise to a range of core and specialized investment portfolios.