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Dividend and Income Builder Fund
Income Potential from Global, Dividend-Paying Stocks
Fund Overview Portfolio managers Brad Kinkelaar Executive Vice President, Portfolio Manager Cliff Remily, CFA Executive Vice President, Portfolio Manager
Many investors are looking for ways to generate attractive current income, income growth over time and long-term capital appreciation. PIMCO Dividend and Income Builder Fund pursues all three objectives through an actively managed portfolio of global, dividend-paying stocks and select fixed income securities.
What is PIMCO Dividend and Income Builder Fund? The fund invests in dividend-paying stocks around the world, aiming to deliver attractive yield today, a growing dividend per share over time and long-term capital appreciation. While the majority of the portfolio is normally invested in dividend-paying equities, the fund will also invest in fixed income securities when its managers find compelling values. The fund’s flexible, unconstrained approach provides the opportunity to take advantage of the most attractive income opportunities around the world. What is the fund’s investment process? We employ fundamental research to uncover attractively priced companies that we believe have both the ability and the willingness to increase their dividends over time. This includes a diversified spectrum of stocks ranging from solid blue-chip companies that may grow over time, to more cyclical companies, to companies that we believe will grow quickly in the future. Our fundamental company analysis evaluates capital allocation policies, financial statements and footnotes, business models, industry dynamics and valuations. Each company under consideration undergoes thorough upside
PIMCO Dividend and Income Builder Fund takes a forward-looking approach to pursuing three integrated goals: an attractive current yield. The ability to invest globally provides additional potential. Of course. What role can the fund play in an overall portfolio? Providing exposure to global equities supplemented with fixed income holdings. The fund’s focus on current income.-only portfolio. How is this fund different from other dividend-focused strategies? Unlike funds that rely heavily on screens and historical data and that do not emphasize detailed fundamental research. growing dividends and capital appreciation is an attractive investment strategy through various market environments. Dividend income is a key component of overall equity returns and is particularly important as many investors are nearing retirement. What is PIMCO’s expertise in dividend investing? PIMCO’s active equity team consists of more than 30 portfolio managers. Team members also draw on the firm’s extensive global resources and process. with expertise across strategies and regions. analysts and other professionals. currency and commodity teams to deepen their insights into companies and industry factors. coordinating with our fixed income. with the ultimate goal of identifying companies that pay an attractive dividend today and also have the potential to grow their dividend payments over time through a broad range of economic scenarios. diversification does not assure a profit or protect against loss. PIMCO’s macro outlook provides an additional. a growing income stream over time and the opportunity for capital growth.S. The fixed income component of Dividend and Income Builder Fund benefits from PIMCO’s four decades of active bond management experience. which may rely on a limited number of sectors. and can enhance diversification more broadly than a U. as attractive dividend-paying companies are often found outside the U.S. long-term holding in a portfolio. PIMCO Dividend and Income Builder Fund is designed to serve as a core.. invaluable perspective on economic developments that are likely to shape equity markets and dividend trends. Its managers actively seek to add value by searching for companies they believe are both willing and able to increase their dividends in the future and that are attractively priced.and downside stress testing. 02 PIMCO DIVIDEND AND INCOME BUILDER FUND | FUND OVERVIEW . We also believe an actively managed portfolio of dividendpaying equities can serve as an attractive source of income growth that can potentially outpace inflation.
the fund’s investment process – including rigorous security analysis and selection – is designed to help moderate some of these risks. There is also no assurance that a company will continue to pay its dividend at its current level. Kinkelaar holds an MBA from Northwestern University’s Kellogg School of Management. shares – PQIIX Highlights n Designed to be an integrated solution for current income. Kinkelaar. aims to generate attractive current income and longterm capital appreciation. executive vice presidents and seasoned dividend investors. Mr. Remily from the Marshall School of Business at the University of Southern California.com/investments or call us at 888. they were managing directors at Thornburg Investment Management and co-portfolio managers of the Thornburg Investment Income Builder Fund. particularly over shorter time frames. Prior to joining PIMCO in 2011. as well as capital appreciation Primary portfolio Dividend-paying equities. The portfolio. n EqS Dividend Fund Objective Above-average income. which largely reflects the equity composition of Dividend and Income Builder Fund. select fixed income securities Fund inception 14 December 2011 Dividend frequency Quarterly Portfolio managers Brad Kinkelaar. capital appreciation Symbols A shares – PQDAX D shares – PQDDX R shares – PQDRX C shares – PQDCX P shares – PQDPX Inst. shares – PQDIX FUND OVERVIEW | PIMCO DIVIDEND AND INCOME BUILDER FUND 03 . Eve Tournier (fixed income component) Symbols A shares – PQIZX D shares – PQIDX R shares – PQIBX C shares – PQICX P shares – PQIPX Inst. founded by Mr. Cliff Remily.PIMCO. CFA. Mr. She was previously a managing director and European head of high yield credit trading at Deutsche Bank. How can I learn more? Ask your financial advisor for more information. including a copy of the prospectus.87. What are some of the risks? While dividends are generally a more consistent component of total return. growing dividends per share over time. particularly in emerging markets. What is PIMCO EqS Dividend Fund? PIMCO also offers the EqS Dividend Fund which is designed for investors seeking an equity-income solution without the fixed income component. income growth and long-term capital appreciation potential. global approach. Time-tested strategy supported by PIMCO’s macroeconomic expertise and global investment platform. she earned a master’s degree in operations research and financial engineering from Cornell University. n Enhanced diversification and yield potential from a flexible. it’s important to note that equity investing can be volatile.Who manages the fund? The fund is managed by Brad Kinkelaar and Cliff Remily. You can also visit our website at pimco. That said. Global investing adds certain risks as well. Q UI C K FAC T S Dividend and Income Builder Fund Objective Above-average income. The two have more than 25 years of combined equity investment experience. PIMCO Dividend and Income Builder Fund’s fixed income component is managed by executive vice president Eve Tournier.
credit and inflation risk.About PIMCO PIMCO is a leading global investment management firm. investments may be worth more or less than the original cost when redeemed. management and the risk that a position could not be closed when most advantageous. A word about risk: Equities may decline in value due to both real and perceived general market. PIMCO advised funds are distributed by PIMCO Investments LLC. portfolios that invest in them may be subject to greater levels of credit and liquidity risk than portfolios that do not. Investment Products Not FDIC Insured May Lose Value Not Bank Guaranteed pimco. Investments in value securities involve the risk that the market’s value assessment may differ from the manager’s and the performance of the securities may decline. Investing in derivatives could lose more than the amount invested. This material has been distributed for informational purposes only and should not be considered as investment advice or a recommendation of any particular security. Founded in 1971. Diversification does not ensure against loss. without express written permission. if available. Derivatives may involve certain costs and risks such as liquidity. PIMCO. charges and expenses of the funds carefully before investing. which may be obtained by contacting your financial advisor or PIMCO representative or by visiting pimco. Please read them carefully before you invest or send money. lower-rated securities involve greater risk than higher-rated securities. interest rate. interest rate. This and other information is contained in each fund’s prospectus and summary prospectus. No part of this material may be reproduced in any form. credit. ©2012. Investing in the bond market is subject to certain risks including market. market. Investing in securities of smaller companies tends to be more volatile and less liquid than securities of larger companies. with offices in 10 countries throughout North America. which may be enhanced in emerging markets. risks. economic and industry conditions. issuer. and economic and political risks.com/investments. strategy or investment product.com/investments PO4086_31275 . High yield. or referred to in any other publication. Investing in foreign-denominated and/or domiciled securities may involve heightened risk due to currency fluctuations. PIMCO offers a wide range of innovative solutions to help millions of investors worldwide meet their needs. Europe and Asia. Investors should consider the investment objectives. Our goal is to provide attractive returns while maintaining a strong culture of risk management and long-term discipline.