Morningstar® Investment Profile™   Morningstar®
Disclosure
  Format
for Print
PIMCO VIT All Asset Admin
Release date as of 2022-07-31. Data on page is subject to change.
Snapshot Ratings & Risk Portfolio Nuts & Bolts
  Morningstar Report
Overall Morningstar
Rating™
What is this?
As of 2022-07-31
Out of 239
Tactical Allocation Funds
Morningstar®
Style Box™
What is this?
As of 2022-03-31
As of 2022-03-31
Total Fund Assets ($ Mil)
312.58
View Historical Morningstar Star Ratings and Definitions
  Investment Objective & Strategy  
The investment seeks maximum real return, consistent with preservation of real capital and prudent investment management.
The Portfolio is a "fund of funds," which is a term used to describe mutual funds that pursue their investment objective by investing in other funds. It invests under normal circumstances substantially all of its assets in the least expensive class of shares of any actively managed or smart beta funds (including mutual funds or exchange-traded funds) of PIMCO Funds, PIMCO ETF Trust or PIMCO Equity Series, each an affiliated open-end investment company, except other funds of funds and Underlying PIMCO Funds.
  Morningstar Category: Tactical Allocation
Tactical Allocation portfolios seek to provide capital appreciation and income by actively shifting allocations across investments. These portfolios have material shifts across equity regions, and bond sectors on a frequent basis. To qualify for the tactical allocation category, the fund must have minimum exposures of 10% in bonds and 20% in equity. Next, the fund must historically demonstrate material shifts in sector or regional allocations either through a gradual shift over three years or through a series of material shifts on a quarterly basis. Within a three-year period, typically the average quarterly changes between equity regions and bond sectors exceeds 15% or the difference between the maximum and minimum exposure to a single equity region or bond sector exceeds 50%. 
  Investment Risks
Fund of Funds: An investment option with mutual funds in its portfolio may be subject to the expenses of those mutual funds in addition to those of the investment option itself.
  Portfolio Profile
Asset Allocation
% of Net Assets
U.S. Stocks 7.9
Non-U.S. Stocks 4.2
Bonds 53.6
Cash -6.5
Other 40.7
Total 100.0
Asset Allocation Long/Short/Net Graph
Data through 2022-03-31
Morningstar Equity Sectors
Data not available
Morningstar Fixed-Income Sectors
% Fund
Government 38.79
Corporate 6.56
Securitized 6.31
Municipal 0.06
Cash & Equivalents 28.00
Other 20.28
Data through 2022-03-31
Credit Analysis
% Bonds
AAA 0.65
AA 65.29
A 23.76
BBB 6.95
BB 3.36
B 0.00
Below B 0.00
Not Rated 0.00
Data through 2022-03-31
Credit Analysis Graph
Holding Status
Total Number of Stock Holdings 0
Total Number of Bond Holdings 0
% of Net Assets in Top 10 Holdings 73.56
Turnover % (as of 2021-12-31) 88.00
30 Day SEC Yield % 7.67
Top Holdings
Sector Country Maturity Date Market Value ($000) % of Net Assets
Pimco Fds --- USA 2024-09-01 72,861 21.45
Pimco Fds --- USA 2033-07-01 53,635 15.79
PIMCO Emerging Mkts Lcl Ccy and Bd Instl --- USA 2029-04-01 28,346 8.35
PIMCO Low Duration Instl --- USA 2023-06-01 17,856 5.26
PIMCO Total Return Instl --- USA 2029-08-01 17,835 5.25
PIMCO Emerging Markets Bond Instl --- USA 2036-05-01 16,129 4.75
PIMCO RAE Worldwide Long/Short PLUS Inst --- USA 2023-09-01 11,674 3.44
PIMCO RAE Fundamental AdvantagePLUS Inst --- USA 2022-08-01 11,246 3.31
PIMCO RAE Emerging Markets Instl --- USA 2037-03-01 10,277 3.03
PIMCO Real Estate Real Return Strategy I --- USA 2029-05-01 9,954 2.93
Data through 2022-03-31
  Principal Risks   
Short Sale, Credit and Counterparty, Prepayment (Call), Currency, Emerging Markets, Foreign Securities, Loss of Money, Not FDIC Insured, Municipal Project-Specific, Nondiversification, Value Investing, Index Correlation/Tracking Error, Issuer, Interest Rate, Market/Market Volatility, Commodity, Convertible Securities, Distressed Investments, Equity Securities, ETF, Futures, High-Yield Securities, Mortgage-Backed and Asset-Backed Securities, Municipal Obligations, Leases, and AMT-Subject Bonds, Other, Restricted/Illiquid Securities, Underlying Fund/Fund of Funds, U.S. Federal Tax Treatment, Derivatives, Leverage, Sovereign Debt, Management, Small Cap, Real Estate/REIT Sector, Market Trading
Show Risk Definitions
  Other Information
Inception Date: 2003-04-30
Portfolio Manager(s)
Robert D. Arnott   (2003-04-30)
Mr. Arnott is the founder and chairman of Research Affiliates, a subadvisor to PIMCO. In 2002, he established Research Affiliates as a research-intensive asset management firm that focuses on innovative asset allocation and alternative indexation products. He previously served as chairman of First Quadrant, as president of TSA Capital Management (now part of Analytic Investors), and as vice president at The Boston Company. He also was global equity strategist at Salomon Brothers. He has published more than 100 articles in journals such as the Journal of Portfolio Management, the Harvard Busine
Christopher J. Brightman   (2016-11-07)
Chris Brightman, Chief Executive Officer, Research Affiliates, since July 2021, and Chief Investment Officer since April 2014. Previously at Research Affiliates, Mr. Brightman served as a Managing Director and Head of Investment Management. Prior to joining Research Affiliates in 2010, Mr. Brightman was chief executive officer of the University of Virginia Investment Management Company.
Investment Advisor(s)
Pacific Investment Management Company, LLC
Issuer
PIMCO
Subadvisor(s)
Research Affiliates LLC
Show Data Definitions

© Copyright 2022 Morningstar, Inc.
All rights reserved. Morningstar, the Morningstar logo, Morningstar.com, Morningstar Tools are either trademark or service marks of Morningstar, Inc. The information contained herein: (1) is proprietary to Morningstar and/or its content providers; (2) may not be copied or distributed; and (3) is not warranted to be accurate, complete or timely. Neither Morningstar nor its content providers are responsible for any damages or any losses arising from any use of information. Past performance is no guarantee of future performance.
Past performance is no guarantee of future results.
Returns will vary and shares may be worth more or less than their original cost when sold.
 Symetra
Morningstar® Investment Profile™   Morningstar®
Disclosure
  Format
for Print
PIMCO VIT All Asset Admin
Release date as of 2022-07-31. Data on page is subject to change.
Snapshot Ratings & Risk Portfolio Nuts & Bolts
  Morningstar Ratings
Morningstar
Return
Morningstar
Risk
Morningstar
Rating
Number of
Funds
3-Year Average Average 239
5-Year Average Average 207
10-Year Below Avg Average 118
Overall Average Average 239
Morningstar Category: Tactical Allocation | Number of Funds in Category: 239
Data through 2022-07-31
Ratings reflect risk-adjusted performance and are derived from a weighted average of the performance figures associated with its three, five and ten-year (if applicable) time periods.
  Volatility Measurements
Standard Deviation 12.40
Mean 5.96
Sharpe Ratio 0.48
Trailing 3-Yr as of 2022-07-31
  Modern Portfolio Theory Statistics
Best Fit Index
MSCI ACWI Ex USA NR USD
R-Squared 93
Beta 0.68
Alpha 3.39
Trailing 3-Yr as of 2022-07-31
  Principal Risks   
Short Sale, Credit and Counterparty, Prepayment (Call), Currency, Emerging Markets, Foreign Securities, Loss of Money, Not FDIC Insured, Municipal Project-Specific, Nondiversification, Value Investing, Index Correlation/Tracking Error, Issuer, Interest Rate, Market/Market Volatility, Commodity, Convertible Securities, Distressed Investments, Equity Securities, ETF, Futures, High-Yield Securities, Mortgage-Backed and Asset-Backed Securities, Municipal Obligations, Leases, and AMT-Subject Bonds, Other, Restricted/Illiquid Securities, Underlying Fund/Fund of Funds, U.S. Federal Tax Treatment, Derivatives, Leverage, Sovereign Debt, Management, Small Cap, Real Estate/REIT Sector, Market Trading
Show Risk Definitions
  Investment Risks
Fund of Funds: An investment option with mutual funds in its portfolio may be subject to the expenses of those mutual funds in addition to those of the investment option itself.
Show Data Definitions

© Copyright 2022 Morningstar, Inc.
All rights reserved. Morningstar, the Morningstar logo, Morningstar.com, Morningstar Tools are either trademark or service marks of Morningstar, Inc. The information contained herein: (1) is proprietary to Morningstar and/or its content providers; (2) may not be copied or distributed; and (3) is not warranted to be accurate, complete or timely. Neither Morningstar nor its content providers are responsible for any damages or any losses arising from any use of information. Past performance is no guarantee of future performance.
Past performance is no guarantee of future results.
Returns will vary and shares may be worth more or less than their original cost when sold.
 Symetra
Morningstar® Investment Profile™   Morningstar®
Disclosure
  Format
for Print
PIMCO VIT All Asset Admin
Release date as of 2022-07-31. Data on page is subject to change.
Snapshot Ratings & Risk Portfolio Nuts & Bolts
  Style Box Details for Stock Holdings
Size
Average Mkt Cap $Mil ---
   
Market Capitalization % of Portfolio
Giant ---
Large ---
Medium ---
Small ---
Micro ---
   
Investment Valuation Stock
Portfolio
Forward P/E 9.2
Price/Book 1.2
Price/Sales 0.7
Price/Cash Flow 4.5
Dividend Yield 3.9
Long-Term Earnings 13.8
Historical Earnings 11.3
Sales Growth 5.6
Cash-Flow Growth 17.0
Book-Value Growth 5.4
As of 2022-03-31
Data as of 2022-03-31
  Style Box Details for Bond Holdings
Average Eff Duration 3.97 Yrs
Average Eff Maturity ---
Average Wtd Coupon ---
Average Wtd Price 93.82
As of 2022-03-31
Data as of 2022-03-31
  Asset Allocation
% of Net Assets
U.S. Stocks 7.9
Non-U.S. Stocks 4.2
Bonds 53.6
Cash -6.5
Other 40.7
Total 100.0
Asset Allocation Long/Short/Net Graph
Data through 2022-03-31
  Morningstar Equity Sectors
Data not available
  Morningstar Fixed-Income Sectors
% Fund
Government 38.79
Corporate 6.56
Securitized 6.31
Municipal 0.06
Cash & Equivalents 28.00
Other 20.28
Data through 2022-03-31
  Credit Analysis
% Bonds
AAA 0.65
AA 65.29
A 23.76
BBB 6.95
BB 3.36
B 0.00
Below B 0.00
Not Rated 0.00
Data through 2022-03-31
Credit Analysis Graph
  Top 25 Holdings
Total Number of Stock Holdings 0
Total Number of Bond Holdings 0
% of Net Assets in Top 10 Holdings 73.56
Turnover % (as of 2021-12-31) 88.00
30 Day SEC Yield % 7.67
Top 25 Holdings
Sector Country Maturity Date Market Value ($000) % of Net Assets
Pimco Fds --- USA 2024-09-01 72,861 21.45
Pimco Fds --- USA 2033-07-01 53,635 15.79
PIMCO Emerging Mkts Lcl Ccy and Bd Instl --- USA 2029-04-01 28,346 8.35
PIMCO Low Duration Instl --- USA 2023-06-01 17,856 5.26
PIMCO Total Return Instl --- USA 2029-08-01 17,835 5.25
PIMCO Emerging Markets Bond Instl --- USA 2036-05-01 16,129 4.75
PIMCO RAE Worldwide Long/Short PLUS Inst --- USA 2023-09-01 11,674 3.44
PIMCO RAE Fundamental AdvantagePLUS Inst --- USA 2022-08-01 11,246 3.31
PIMCO RAE Emerging Markets Instl --- USA 2037-03-01 10,277 3.03
PIMCO Real Estate Real Return Strategy I --- USA 2029-05-01 9,954 2.93
PIMCO TRENDS Managed Futures Strat Instl --- USA 2030-01-01 9,415 2.77
PIMCO International Bond (USD-Hdg) Instl --- USA 2030-04-01 8,475 2.50
PIMCO High Yield Instl --- USA 2028-04-01 7,204 2.12
PIMCO Em Mkts Ccy and S/T Invsmt Instl --- USA 2023-07-01 7,135 2.10
PIMCO Dynamic Bond Instl --- USA 2025-02-01 5,701 1.68
PIMCO Long Duration Total Return Instl --- USA 2044-04-01 5,667 1.67
PIMCO StocksPLUS® Long Duration Instl --- USA 2045-10-01 5,567 1.64
PIMCO Commodity Real Ret Strat Instl --- USA 2024-06-01 4,305 1.27
PIMCO CommoditiesPLUS® Strategy Instl --- USA 2023-02-01 4,266 1.26
PIMCO Income Instl --- USA 2026-02-01 4,178 1.23
PIMCO Extended Duration Instl --- USA 2042-08-01 4,178 1.23
PIMCO Low Duration Credit Instl --- USA 2026-05-01 3,345 0.98
PIMCO Long-Term Real Return Instl --- USA 2045-04-01 3,261 0.96
PIMCO Long-Term US Government Instl --- USA 2043-01-01 3,246 0.96
PIMCO RAE International Instl --- USA 2037-02-01 2,923 0.86
Data through 2022-03-31
Show Data Definitions

© Copyright 2022 Morningstar, Inc.
All rights reserved. Morningstar, the Morningstar logo, Morningstar.com, Morningstar Tools are either trademark or service marks of Morningstar, Inc. The information contained herein: (1) is proprietary to Morningstar and/or its content providers; (2) may not be copied or distributed; and (3) is not warranted to be accurate, complete or timely. Neither Morningstar nor its content providers are responsible for any damages or any losses arising from any use of information. Past performance is no guarantee of future performance.
Past performance is no guarantee of future results.
Returns will vary and shares may be worth more or less than their original cost when sold.
 Symetra
Morningstar® Investment Profile™   Morningstar®
Disclosure
  Format
for Print
PIMCO VIT All Asset Admin
Release date as of 2022-07-31. Data on page is subject to change.
Snapshot Ratings & Risk Portfolio Nuts & Bolts
  Fees and Expenses Taken from prospectus dated 2022-04-29  
Maximum Fees
Administrative 0.25%
Management 0.18%
12b-1 ---
Actual Fees
12b-1 0.15%
Management 0.43%
Expense Ratio 0.45%
(taken from annual report dated 2021-12-31)
Total Annual Operating Expense 1.34%
Waiver Data
Type Date %
ManagementFee Contractual 2023-05-01 0.10
  Management
Inception Date: 2003-04-30
Mngr Name Robert D. Arnott
Mngr Start Date 2003-04-30
Biography
Mr. Arnott is the founder and chairman of Research Affiliates, a subadvisor to PIMCO. In 2002, he established Research Affiliates as a research-intensive asset management firm that focuses on innovative asset allocation and alternative indexation products. He previously served as chairman of First Quadrant, as president of TSA Capital Management (now part of Analytic Investors), and as vice president at The Boston Company. He also was global equity strategist at Salomon Brothers. He has published more than 100 articles in journals such as the Journal of Portfolio Management, the Harvard Busine
Mngr Name Christopher J. Brightman
Mngr Start Date 2016-11-07
Biography
Chris Brightman, Chief Executive Officer, Research Affiliates, since July 2021, and Chief Investment Officer since April 2014. Previously at Research Affiliates, Mr. Brightman served as a Managing Director and Head of Investment Management. Prior to joining Research Affiliates in 2010, Mr. Brightman was chief executive officer of the University of Virginia Investment Management Company.
Investment Advisor(s)
Pacific Investment Management Company, LLC
Web Site
pvit.pimco-funds.com
Issuer
PIMCO
Subadvisor(s)
Research Affiliates LLC
Show Data Definitions

© Copyright 2022 Morningstar, Inc.
All rights reserved. Morningstar, the Morningstar logo, Morningstar.com, Morningstar Tools are either trademark or service marks of Morningstar, Inc. The information contained herein: (1) is proprietary to Morningstar and/or its content providers; (2) may not be copied or distributed; and (3) is not warranted to be accurate, complete or timely. Neither Morningstar nor its content providers are responsible for any damages or any losses arising from any use of information. Past performance is no guarantee of future performance.
Past performance is no guarantee of future results.
Returns will vary and shares may be worth more or less than their original cost when sold.

Morningstar Investment Profilessm: Disclosure Statement
Morningstar Rating, Risk and Return
The Morningstar RatingTM for funds, or "star rating", is calculated for managed products (including mutual funds, variable annuity and variable life subaccounts, exchange-traded funds, closed-end funds, and separate accounts) with at least a three-year history. Exchange-traded funds and open-ended mutual funds are considered a single population for comparative purposes. It is calculated based on a Morningstar Risk-Adjusted Return measure that accounts for variation in a managed product's monthly excess performance, placing more emphasis on downward variations and rewarding consistent performance. The Morningstar Rating does not include any adjustment for sales loads. The top 10% of products in each product category receive 5 stars, the next 22.5% receive 4 stars, the next 35% receive 3 stars, the next 22.5% receive 2 stars, and the bottom 10% receive 1 star. The Overall Morningstar Rating for a managed product is derived from a weighted average of the performance figures associated with its three-, five-, and 10-year (if applicable) Morningstar Rating metrics. The weights are: 100% three-year rating for 36-59 months of total returns, 60% five-year rating/40% three-year rating for 60-119 months of total returns, and 50% 10-year rating/30% five-year rating/20% three-year rating for 120 or more months of total returns. While the 10-year overall star rating formula seems to give the most weight to the 10-year period, the most recent three-year period actually has the greatest impact because it is included in all three rating periods.
For private funds, the Morningstar Rating presented is hypothetical, because Morningstar does not independently analyze private funds. Rather, the rating is assigned as a means to compare these funds with the universe of mutual funds that Morningstar rates. The evaluation of this investment does not affect the retail mutual fund data published by Morningstar.
Overall ratings represent a weighted average of specific time period (3-, 5- and 10-year) ratings.
The Morningstar Return rates a fund's performance relative to other managed products in its Morningstar Category. It is an assessment of a product's excess return over a risk-free rate (the return of the 90-day Treasury Bill) in comparison with the products in its Morningstar category. In each Morningstar category, the top 10% of products earn a High Morningstar Return (High), the next 22.5% Above Average (+Avg), the middle 35% Average (Avg), the next 22.5% Below Average (-Avg), and the bottom 10% Low (Low). Morningstar Return is measured for up to three time periods (three, five, and 10 years). These separate measures are then weighted and averaged to produce an overall measure for the product. Products with less than three years of performance history are not rated.
Morningstar Risk evaluates a fund's downside volatility relative to that of other products in its Morningstar Category. It is an assessment of the variations in monthly returns, with an emphasis on downside variations, in comparison with the products in its Morningstar category. In each Morningstar category, the 10% of products with the lowest measured risk are described as Low Risk (Low), the next 22.5% Below Average (-Avg), the middle 35% Average (Avg), the next 22.5% Above Average (+Avg), and the top 10% High (High). Morningstar Risk is measured for up to three time periods (three, five, and 10 years). These separate measures are then weighted and averaged to produce an overall measure for the product. Products with less than three years of performance history are not rated.
PIMCO VIT All Asset Admin
Morningstar Ratings (Relative to Category)
  Morningstar ReturnMorningstar RiskMorningstar Rating# of Funds
3-year AverageAverage239
5-year AverageAverage207
10-year Below AvgAverage118
Overall AverageAverage239
Morningstar Category : Tactical Allocation | Number of Funds in Category: 239
Data through 2022-07-31
Risk Measures
R-squared reflects the percentage of an investment option's movements that are explained by movements in its benchmark index, showing the degree of correlation between the investment option and the benchmark.
Beta is a measure of an investment option's sensitivity to market movements. A portfolio with a beta greater than 1 is more volatile than the market, and a portfolio with a beta less than 1 is less volatile than the market. Alpha measures the difference between an investment option's actual returns and its expected performance, given its level of risk (as measured by beta).
The Sharpe ratio uses standard deviation and excess return to determine reward per unit of risk.
Standard deviation is a statistical measure of the volatility of the investment option's returns.
Mean represents the annualized three-year geometric return.
Morningstar Style BoxTM
The Morningstar Style Box reveals a fund's investment strategy as of the date noted on this report.
For equity funds, the vertical axis shows the market capitalization of the long stocks owned, and the horizontal axis shows the investment style (value, blend, or growth). A darkened cell in the style box matrix indicates the weighted average style of the portfolio.
For portfolios holding fixed-income investments, a Fixed Income Style Box is calculated. The vertical axis shows the credit quality based on credit ratings and the horizontal axis shows interest-rate sensitivity as measured by effective duration. There are three credit categories - "High", "Medium", and "Low"; and there are three interest rate sensitivity categories - "Limited", "Moderate", and "Extensive"; resulting in nine possible combinations. As in the Equity Style Box, the combination of credit and interest rate sensitivity for a portfolio is represented by a darkened square in the matrix. Morningstar uses credit rating information from credit rating agencies (CRAs) that have been designated Nationally Recognized Statistical Rating Organizations (NRSROs) by the Securities and Exchange Commission (SEC) in the United States. For a list of all NRSROs, please visit https://www.sec.gov/ocr/ocr-current-nrsros.html. Additionally, Morningstar will use credit ratings from CRAs which have been recognized by foreign regulatory institutions that are deemed the equivalent of the NRSRO designation. To determine the rating applicable to a holding and the subsequent holding weighted value of a portfolio two methods may be employed. First is a common methodology approach where if a case exists such that two CRAs have rated a holding, the lower rating of the two should be applied; if three or more CRAs have rated a holding, the median rating should be applied; and in cases where there are more than two ratings and a median rating cannot be determined, the lower of the two middle ratings should be applied. Alternatively, if there is more than one rating available an average can be calculated from all and applied. Please Note: Morningstar, Inc. is not an NRSRO nor does it issue a credit rating on the fund. Credit ratings for any security held in a portfolio can change over time.
Morningstar uses the credit rating information to calculate a weighted-average credit quality value for the portfolio. This value is based only upon those holdings which are considered to be classified as "fixed income", such a government, corporate, or securitized issues. Other types of holdings such as equities and many, though not all, types of derivatives are excluded. The weighted-average credit quality value is represented by a rating symbol which corresponds to the long-term rating symbol schemas employed by most CRAs. Note that this value is not explicitly published but instead serves as an input in the Style Box calculation. This symbol is then used to map to a Style Box credit quality category of "low," "medium," or "high". Funds with a "low" credit quality category are those whose weighted-average credit quality is determined to be equivalent to the commonly used High Yield classification, meaning a rating below "BBB", portfolios assigned to the "high" credit category have either a "AAA" or "AA+" average credit quality value, while "medium" are those with an average rating of "AA-" inclusive to "BBB-". It is expected and intended that the majority of portfolios will be assigned a credit category of "medium".
For assignment to an interest-rate sensitivity category, Morningstar uses the average effective duration of the portfolio. From this value there are three distinct methodologies employed to determine assignment to category. Portfolio which are assigned to Morningstar municipal-bond categories employ static breakpoints between categories. These breakpoints are: "Limited" equal to 4.5 years or less, "Moderate" equal to 4.5 years to less than 7 years; and "Extensive" equal to more than 7 years. For portfolios assigned to Morningstar categories other than U.S. Taxable, including all domiciled outside the United States, static duration breakpoints are also used: "Limited" equals less than or equal to 3.5 years, "Moderate" equals greater than 3.5 years but less than or equal to 6 years, and "Extensive" is assigned to portfolios with effective durations of more than 6 years.
Note: Interest-rate sensitivity for non-U.S. domiciled portfolios (excluding those in Morningstar convertible categories) may be assigned using average modified duration when average effective duration is not available.
For portfolios Morningstar classifies as U.S. Taxable Fixed-Income, interest-rate sensitivity category assignment is based on the effective duration of the Morningstar Core Bond Index (MCBI). The classification assignment is dynamically determined relative to the benchmark index value. A "Limited" category will be assigned to portfolios whose average effective duration is between 25% to 75% of MCBI average effective duration, where the average effective duration is between 75% to 125% of the MCBI the portfolio will be classified as "Moderate", and those portfolios with an average effective duration value 125% or greater of the average effective duration of the MCBI will be classified as "Extensive".
Investment Risk
Foreign Securities Investment Options:/Emerging Market Investment Options: The investor should note that investment options that invest in foreign securities involve special additional risks. These risks include, but are not limited to, currency risk, political risk, and risk associated with varying accounting standards. Investing in emerging markets may accentuate these risks.
Sector Investment Options: The investor should note that investment options that invest exclusively in one sector or industry involve additional risks. The lack of industry diversification subjects the investor to increased industry-specific risks.
Non-Diversified Investment Options: The investor should note that investment options that invest more of their assets in a single issuer involve additional risks, including share price fluctuations, because of the increased concentration of investments.
Small Cap Investment Options: The investor should note that investment options that invest in stocks of small companies involve additional risks. Smaller companies typically have a higher risk of failure, and are not as well established as larger blue-chip companies. Historically, smaller-company stocks have experienced a greater degree of market volatility than the overall market average.
Mid Cap Investment Options: The investor should note that investment options that invest in companies with market capitalizations below $10 billion involve additional risks. The securities of these companies may be more volatile and less liquid than the securities of larger companies.
High-Yield Bond Investment Options: The investor should note that investment options that invest in lower-rated debt securities (commonly referred to as junk bonds) involve additional risks because of the lower credit quality of the securities in the portfolio. The investor should be aware of the possible higher level of volatility, and increased risk of default.
Yield
The yield of an investment option refers to the income generated by an investment in that investment option over an identified period of time. The SEC 30-day yield refers to the income generated by an investment over an identified 30-day period. The SEC 30-day yield is calculated by dividing: (I) the net investment income per share of the investment option earned over a 30-day period; by (II) the maximum offering price per share of the investment option on the last day of the period. This number is then annualized using semi-annual compounding. This means that the amount of income generated during the 30-day period is assumed to be generated each month over a 12-month period and is reinvested every six months. The yield does not necessarily reflect income actually earned by investing in the investment option because of certain adjustments required by the SEC and, therefore, may not correlate to the dividends or other distributions paid to shareholders.