PIMCO Funds High Yield Fund Institutional Shares (PHIYX)

This PIMCO fund primarily allocates its capital, dedicating a minimum of 80% of its portfolio, to high-yield fixed-income instruments, commonly known as 'junk bonds.' This exposure can be achieved directly or through synthetic positions like forwards or derivative contracts. A portion of the fund, specifically up to 20% of its total holdings, may be directed towards debt securities carrying ratings of Caa or lower from Moody's, or an equivalent low rating from S&P or Fitch. For unrated issues, PIMCO's internal assessment will determine if they meet a similar quality threshold. Furthermore, the fund maintains the flexibility to utilize derivative instruments, including options, futures, and swap agreements, without any predefined limits on their allocation. Investments in mortgage-backed and asset-backed securities are also permitted.