Morningstar - Q1 2022 - 51

Real Asset Expertise
Pimco Inflation Response Multi-Asset fights inflation on
various fronts.
BEST IDEAS: MANAGER
Bobby Blue
This article is adapted from the fund's Morningstar Global Fund Report dated
Dec. 20, 2021.
Designed to provide benefits across the entire economic cycle, Pimco
Inflation Response Multi-Asset PIRMX performs best when inflation ticks up,
as it did this past year. Its two cheapest share classes continue to earn
a Morningstar Analyst Rating of Silver, while the more expensive share class
is rated Bronze.
Real asset experts contribute to this strategy. Lead manager Nic Johnson
has helmed this fund since 2015, bringing more than a decade's worth
of commodity and real asset expertise to bear. Steve Rodosky joins him on the
roster; he manages the Silver-rated Pimco Real Return PRRIX strategy
and oversees the Treasury Inflation-Protected Securities allocations on this
fund. When Mihir Worah departed this strategy's lineup in late 2019,
Daniel He, a real assets specialist, rounded out the group.
A thoughtfully curated lineup of TIPS, commodities, emerging-markets
currencies, gold, and real estate appears in this fund. The team chose this mix
carefully, deliberately targeting assets that have distinct sensitivity to inflation
along with lower correlations to equity risks relative to other asset classes.
Johnson is in charge of selecting the assets, as well as the tactical tilts among
these positions, though he defers to the asset-class teams that manage the
strategies for the individual stock/bond/commodity picks.
The fund had a strong year as inflationary pressures drove the assets this fund
invests in higher. The institutional shares returned 9.9% year to date through
November 2021 and topped the Morningstar Conservative Target Risk Index's
1.4% gain, as commodities pushed higher and REITs bounced off of their
COVID-19 lows from 2020. In addition to generally healthy performance across
the assets the strategy invests in, shrewd tactical tilts and strong security
selection-hallmarks of the process-further buoyed its results.
The fund's institutional shares still lag over the longer term, returning just 3.3%
since its September 2011 inception versus the index's 4.4% gain. Despite
that, the strategy's unique profile and relatively low correlation to stocks and
bonds makes it an effective diversifier in a balanced portfolio. K
Bobby Blue is a senior manager research analyst at Morningstar Research Services LLC.
Pimco Inflation Response Multi-Asset PIRMX
Stats 12/31/2021
Morningstar Analyst Rating
„
Fee Level
Below Avg
Process
Above Avg
Growth of 10K 12/31/2021
$15K
PIMCO Inflation Response Multi-Asset
Morningstar US Con Tgt Alloc
12.73
13.70
12
9
01/2019
Value
Blend
01/2020
Morningstar Style Box 09/30/2021
Growth
Snapshot as
of most recent
portfolio.
01/2021
Morningstar Ratings 12/31/2021
Period
Mstar
Return
3-Yr
5-Yr
10-Yr
High
High
Overall Rating
Asset Allocation 09/30/2021
Cash
Fixed Income
U.S. Equity
Non-U.S. Equity
Other
■ Fund % ❙ Category Average %
40.56
15.52
31.71
10.66
13.33
0.04 3.58
4.46
0%
16.89
20
73.26
Mstar
Risk
Morningstar Category
Alloc-15% to 30% Equity
10-Yr Annlzd Return
4.07%
Morningstar Pillars 12/31/2021
People
Above Avg
Parent
Above Avg
Expense Ratio
0.73%
10-Yr % Rank in Cat
79
Mstar
Rating
Above Avg QQQQQ
Above Avg QQQQQ
Below Avg High
Q
QQQ
40
60
morningstar.com/products/magazine
80
51
Small
Mid
Large

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