Fund Evaluator:

PIMCO Real Estate and Rl Ret Bd Alp A Overview

PIMCO Real Estate and Rl Ret Bd Alp A (PETAX) is an actively managed Sector Equity Real Estate fund. PIMCO launched the fund in 2003.

The investment seeks maximum real return, consistent with prudent investment management. The fund seeks to achieve its investment objective by investing in real estate-linked derivative instruments backed by a portfolio of inflation-indexed securities and other Fixed Income Instruments. "Fixed Income Instruments" include bonds, debt securities and other similar instruments issued by various U.S. and non-U.S. public- or private-sector entities. It may invest up to 30% of its total assets in securities denominated in foreign currencies and may invest beyond this limit in U.S. dollar denominated securities of foreign issuers.

About PIMCO Real Estate and Rl Ret Bd Alp A (PETAX)

There are 4 members of the management team with an average tenure of 2.73 years: Andrew Dewitt (2025), Greg Sharenow (2025), Daniel He (2019), John Devir (2025). Management tenure is more important for actively managed funds than passive index funds.

The fund has 2 primary benchmarks: S&P 500 (TR) (1970) index with a weighting of 100% and DJ US Select REIT TR USD index with a weighting of 100%. PIMCO Real Estate and Rl Ret Bd Alp A has 696 securities in its portfolio. The top 10 holdings constitute 125.7% of the fund’s assets. The fund meets the SEC requirement of being classified as a diversified fund. The fund is not considered to have an ESG focus with its investment selection and management.

PIMCO Real Estate and Rl Ret Bd Alp A is part of the Equity global asset class and is within the Sector Equity fund group. PIMCO Real Estate and Rl Ret Bd Alp A has 17.4% of its portfolio invested in foreign issues. The overall assets allocated to domestic stock is 99.8%. There is 0.0% allocated to foreign stock, and 0.2% is allocated to preferred stocks. The bond allocation as a percentage of total assets is 129.8% (112.5% domestic bond, 17.4% foreign bond and 0.0% convertible bond). PIMCO Real Estate and Rl Ret Bd Alp A has -129.8% of the portfolio in cash.

Assets Under Management

The fund has $92 million in total assets, which is below the $667 million average for the Real Estate category. Normally, lower assets under management translates to higher average expense ratios, and greater total assets are desired. However, for some investment categories, such as small-cap investing, it may be difficult for the manager to fully employ the desired active strategy if assets grow too large or too quickly.

PETAX Performance and Fees

The expense ratio measures how much of a fund’s assets are used for administrative expenses and operating expenses, including adviser fees and fees for the transfer agent and custodial services. The PIMCO Real Estate and Rl Ret Bd Alp A expense ratio is high compared to funds in the Real Estate category. PIMCO Real Estate and Rl Ret Bd Alp A has an expense ratio of 5.89%, which is 380% higher than its category average, making the fund expense ratio grade a F. While it is difficult to predict returns, it is known that high annual expense ratios reduce your rate of return, and excessive fees are difficult to overcome. Active management normally comes with higher expense ratios than passive index management. Certain investment categories such as small company and foreign also normally have higher expense ratios. It is best to compare fund expense ratios against the category averages for meaningful assessments.

High portfolio turnover can translate to higher expenses and lower aftertax returns. PIMCO Real Estate and Rl Ret Bd Alp A has a portfolio turnover rate of 128%, indicating that holds its assets around 0.0 years. By way of comparison, the average portfolio turnover is 78% for the Real Estate category.

Recently, in the month of July 2026, PIMCO Real Estate and Rl Ret Bd Alp A returned 2.0%, which earned it a grade of D, as the Real Estate category had an average return of 2.0%. The letter grades of A, B, C, D and F are based upon relative rankings within the investment category. A grade of A, for example, would indicate that the return is in the highest 20% for that time period compared to all funds in that category.

PIMCO Real Estate and Rl Ret Bd Alp A has a trailing yield of 1.87%, which is below the 2.02% category average. The fund normally distributes its income quarterly and its capital gains annually.

It’s natural to seek the best-performing investments, but you must consider the relationship between risk and return and the impact of costs and taxes on your realized returns.

PIMCO Real Estate and Rl Ret Bd Alp A Grades

Year to date, the fund has returned 18.8%, 2.3 percentage points better than the category, which translates into a grade of A. The fund has returned 24.6% over the past year (grade of A), 11.2% over the past three years (grade of A) and 3.2% per year over the past five years (grade of C) and 5.7% per year over the past 10 years (grade of B).

For more mutual fund grades, analysis and screening tools to help your investment discovery, join AAII for a $2, full-access trial. Learn more here: https://invest.aaii.com/membership.

Otherwise, for more information about PIMCO Real Estate and Rl Ret Bd Alp A, including its riskiness, submit your email to unlock the rest of the article.