EX-99.(D)(17) 2 d734650dex99d17.htm SUPPLEMENT AND AMENDED EXHIBIT A TO AMENDED AND RESTATED INVESTMENT ADVISORY Supplement and Amended Exhibit A to Amended and Restated Investment Advisory

Exhibit (d)(17)

SUPPLEMENT TO

AMENDED AND RESTATED INVESTMENT ADVISORY CONTRACT

PIMCO Funds

840 Newport Center Drive

Newport Beach, California 92660

October 1, 2013

Pacific Investment Management Company LLC

840 Newport Center Drive

Newport Beach, California 92660

 

RE:

Investment Advisory Fee Changes for Certain Funds

Dear Sirs:

As provided in the Amended and Restated Investment Advisory Contract between PIMCO Funds (the “Trust”) and Pacific Investment Management Company LLC (the “Adviser”), dated February 23, 2009 (the “Contract”), Exhibit A to the Contract sets forth the series of the Trust for which the Agreement has been approved (collectively, the “Funds”), under the same terms and conditions as set forth in the Contract, and the fee rates for the Funds, as may be amended from time to time.

The Trust and the Adviser hereby agree to amend the Contract as of the date hereof to reflect fee rate changes for the PIMCO International Fundamental IndexPLUS® AR Strategy Fund, PIMCO RealRetirement® Income and Distribution Fund, PIMCO RealRetirement® 2015 Fund, PIMCO RealRetirement® 2020 Fund, PIMCO RealRetirement® 2025 Fund, PIMCO RealRetirement® 2030 Fund, PIMCO RealRetirement® 2035 Fund, PIMCO RealRetirement® 2040 Fund, PIMCO RealRetirement® 2045 Fund, PIMCO RealRetirement® 2050 Fund and PIMCO Senior Floating Rate Fund. The current Exhibit A is replaced with the new Exhibit A attached hereto.

The Declaration of Trust establishing the Trust, as amended and restated effective December 15, 2010, a copy of which, together with all amendments thereto (the “Declaration”), is on file in the Office of the Secretary of the Commonwealth of Massachusetts, provides that the name “PIMCO Funds” refers to the trustees under the Declaration collectively as trustees and not as individuals or personally, and that no shareholder, trustee, officer, employee or agent of the Trust shall be subject to claims against or obligations of the Trust to any extent whatsoever, but that the Trust estate only shall be liable.

EXHIBIT A

(as of October 1, 2013)

PIMCO Funds

 

Fund    Investment
Advisory
Fee		  

PIMCO All Asset Fund

      0.175 % 

PIMCO All Asset All Authority Fund

      0.20 % 

PIMCO California Intermediate Municipal Bond Fund

      0.225 % 

PIMCO California Municipal Bond Fund

      0.21 % 

PIMCO California Short Duration Municipal Income Fund

      0.18 % 

PIMCO CommoditiesPLUS® Short Strategy Fund

      0.54 % 

PIMCO CommoditiesPLUS® Strategy Fund

      0.49 % 

PIMCO CommodityRealReturn Strategy Fund®

      0.49 % 

PIMCO Convertible Fund

      0.40 % 

PIMCO Credit Absolute Return Fund

      0.60 % 

PIMCO Diversified Income Fund

      0.45 % 

PIMCO Emerging Markets Full Spectrum Bond Fund

      0.59 % 

PIMCO EM Fundamental IndexPLUS® AR Strategy Fund

      0.85 % 

PIMCO Emerging Local Bond Fund

      0.45 % 

PIMCO Emerging Markets Bond Fund

      0.45 % 

PIMCO Emerging Markets Corporate Bond Fund

      0.75 % 

PIMCO Emerging Markets Currency Fund

      0.45 % 

PIMCO Extended Duration Fund

      0.25 % 

PIMCO Floating Income Fund

      0.30 % 

PIMCO Foreign Bond Fund (Unhedged)

      0.25 % 

PIMCO Foreign Bond Fund (U.S. Dollar-Hedged)

      0.25 % 

PIMCO Fundamental Advantage Absolute Return Strategy Fund

      0.64 % 

PIMCO Fundamental IndexPLUS® AR Fund

      0.54 % 

PIMCO Global Advantage Strategy Bond Fund

      0.40 % 

PIMCO Global Bond Fund (Unhedged)

      0.25 % 

PIMCO Global Bond Fund (U.S. Dollar-Hedged)

      0.25 % 

PIMCO Global Multi-Asset Fund

      0.90 % 

PIMCO GNMA Fund

      0.25 % 

PIMCO Government Money Market Fund

      0.12 % 

PIMCO High Yield Fund

      0.25 % 

PIMCO High Yield Municipal Bond Fund

      0.30 % 

Fund    Investment
Advisory
Fee		  

PIMCO High Yield Spectrum Fund

      0.30 % 

PIMCO Income Fund

      0.25 % 

PIMCO Inflation Response Multi-Asset Fund

      0.65 % 

PIMCO International Fundamental IndexPLUS® AR Strategy Fund

      0.57 % 

PIMCO International StocksPLUS® AR Strategy Fund (Unhedged)

      0.39 % 

PIMCO International StocksPLUS® AR Strategy Fund (U.S. Dollar-Hedged)

      0.45 % 

PIMCO Investment Grade Corporate Bond Fund

      0.25 % 

PIMCO Long Duration Total Return Fund

      0.25 % 

PIMCO Long-Term Credit Fund

      0.30 % 

PIMCO Long-Term U.S. Government Fund

      0.225 % 

PIMCO Low Duration Fund

      0.25 % 

PIMCO Low Duration Fund II

      0.25 % 

PIMCO Low Duration Fund III

      0.25 % 

PIMCO Moderate Duration Fund

      0.25 % 

PIMCO Money Market Fund

      0.12 % 

PIMCO Mortgage-Backed Securities Fund

      0.25 % 

PIMCO Mortgage Opportunities Fund

      0.35 % 

PIMCO Municipal Bond Fund

      0.20 % 

PIMCO National Intermediate Municipal Bond Fund

      0.22 % 

PIMCO New York Municipal Bond Fund

      0.225 % 

PIMCO Real Income 2019 Fund®

      0.19 % 

PIMCO Real Income 2029 Fund®

      0.19 % 

PIMCO Real Return Fund

      0.25 % 

PIMCO Real Return Asset Fund

      0.30 % 

PIMCO RealEstateRealReturn Strategy Fund

      0.49 % 

PIMCO RealRetirement® Income and Distribution Fund

      0.50 % 

PIMCO RealRetirement® 2015 Fund(1)

      0.53 % 

PIMCO RealRetirement® 2020 Fund(2)

      0.55 % 

PIMCO RealRetirement® 2025 Fund(3)

      0.58 % 

PIMCO RealRetirement® 2030 Fund(4)

      0.60 % 

PIMCO RealRetirement® 2035 Fund(5)

      0.60 % 

PIMCO RealRetirement® 2040 Fund(6)

      0.62 % 

PIMCO RealRetirement® 2045 Fund(7)

      0.62 % 

Fund    Investment
Advisory
Fee		  

PIMCO RealRetirement® 2050 Fund(8)

      0.62 % 

PIMCO Senior Floating Rate Fund

      0.40 % 

PIMCO Short Asset Investment Fund

      0.20 % 

PIMCO Short Duration Municipal Income Fund

      0.18 % 

PIMCO Short-Term Fund

      0.25 % 

PIMCO Small Company Fundamental IndexPLUS® AR Strategy Fund

      0.59 % 

PIMCO Small Cap StocksPLUS® AR Strategy Fund

      0.44 % 

PIMCO StocksPLUS® Fund

      0.25 % 

PIMCO StocksPLUS® Long Duration Fund

      0.35 % 

PIMCO StocksPLUS® AR Short Strategy Fund

      0.39 % 

PIMCO StocksPLUS® Absolute Return Fund

      0.39 % 

PIMCO Tax Managed Real Return Fund

      0.25 % 

PIMCO Total Return Fund

      0.25 % 

PIMCO Total Return Fund II

      0.25 % 

PIMCO Total Return Fund III

      0.25 % 

PIMCO Total Return Fund IV

      0.25 % 

PIMCO Treasury Money Market Fund

      0.12 % 

PIMCO TRENDS Managed Futures Strategy Fund

      1.15 % 

PIMCO Unconstrained Bond Fund

      0.60 % 

PIMCO Unconstrained Tax Managed Bond Fund

      0.40 % 

PIMCO Worldwide Fundamental Advantage AR Strategy Fund

      0.74 % 

Private Account Portfolio Series

 

Portfolio

 

   

Investment
Advisory
Fee

 

  

PIMCO Asset-Backed Securities Portfolio

      0.02 % 

PIMCO Asset-Backed Securities Portfolio II

      0.02 % 

PIMCO Developing Local Markets Portfolio

      0.02 % 

PIMCO Emerging Markets Portfolio

      0.02 % 

PIMCO FX Strategy Portfolio

      0.02 % 

PIMCO High Yield Portfolio

      0.02 % 

PIMCO International Portfolio

      0.02 % 

PIMCO Investment Grade Corporate Portfolio

      0.02 % 

PIMCO Long Duration Corporate Bond Portfolio

      0.02 % 

PIMCO Low Duration Portfolio

      0.02 % 

PIMCO Moderate Duration Portfolio

      0.02 % 

PIMCO Mortgage Portfolio

      0.02 % 

PIMCO Mortgage Portfolio II

      0.02 % 

PIMCO Municipal Sector Portfolio

      0.02 % 

PIMCO Real Return Portfolio

      0.02 % 

PIMCO Senior Floating Rate Portfolio

      0.02 % 

PIMCO Short-Term Floating NAV Portfolio(9)

      0.00 % 

PIMCO Short-Term Floating NAV Portfolio II

      0.02 % 

PIMCO Short-Term Floating NAV Portfolio III(9)

      0.00 % 

PIMCO Short-Term Portfolio

      0.02 % 

PIMCO U.S. Government Sector Portfolio

      0.02 % 

PIMCO U.S. Government Sector Portfolio II

      0.02 % 

 

 

(1)

Effective April 1, 2015, the Fund’s investment advisory fee will be reduced to 0.50%.

(2)

Effective April 1, 2015, the Fund’s investment advisory fee will be reduced to 0.53%. Effective April 1, 2020, the Fund’s investment advisory fee will be further reduced to 0.50%.

(3)

Effective April 1, 2015, the Fund’s investment advisory fee will be reduced to 0.55%. Effective April 1, 2020, the Fund’s investment advisory fee will be further reduced to 0.53%. Effective April 1, 2025, the Fund’s investment advisory fee will be further reduced to 0.50%.

(4)

Effective April 1, 2015, the Fund’s investment advisory fee will be reduced to 0.58%. Effective April 1, 2020, the Fund’s investment advisory fee will be further reduced to 0.55%. Effective April 1, 2025, the Fund’s investment advisory fee will be further reduced to 0.53%. Effective April 1, 2030, the Fund’s investment advisory fee will be further reduced to 0.50%.

(5)

Effective April 1, 2020, the Fund’s investment advisory fee will be reduced to 0.58%. Effective April 1, 2025, the Fund’s investment advisory fee will be further reduced to 0.55%. Effective April 1, 2030, the Fund’s investment advisory fee will be further reduced to 0.53%. Effective April 1, 2035, the Fund’s investment advisory fee will be further reduced to 0.50%.

(6)

Effective April 1, 2015, the Fund’s investment advisory fee will be reduced to 0.60%. Effective April 1, 2025, the Fund’s investment advisory fee will be further reduced to 0.58%. Effective April 1, 2030, the Fund’s investment advisory fee will be further reduced to 0.55%. Effective April 1, 2035, the Fund’s investment advisory fee will be further reduced to 0.53%.

(7)

Effective April 1, 2020, the Fund’s investment advisory fee will be reduced to 0.60%. Effective April 1, 2030, the Fund’s investment advisory fee will be further reduced to 0.58%. Effective April 1, 2035, the Fund’s investment advisory fee will be further reduced to 0.55%.

(8)

Effective April 1, 2025, the Fund’s investment advisory fee will be reduced to 0.60%. Effective April 1, 2035, the Fund’s investment advisory fee will be further reduced to 0.58%.

(9)

PIMCO Short-Term Floating NAV Portfolio and PIMCO Short-Term Floating NAV Portfolio III (the “Short-Term Floating NAV Portfolios”) will be offered only to other series of the PIMCO Funds (each an “Investing Fund”) or other series of registered investment companies for which PIMCO serves as investment adviser. The PIMCO Short-Term Floating NAV Portfolios, and their wholly-owned subsidiaries (if any), do not pay an investment advisory fee to PIMCO. By investing in the PIMCO Short-Term Floating NAV Portfolios, each Investing Fund agrees that 0.005% of the fee that each Investing Fund is currently obligated to pay PIMCO as indicated on this Exhibit A, will be designated as compensation for the investment advisory services PIMCO provides to the PIMCO Short-Term Floating NAV Portfolios, and their wholly-owned subsidiaries (if any), under the Contract.

If the foregoing correctly sets forth the Contract between the Trust and the Adviser, please so indicate by signing, dating and returning to the Trust the enclosed copy hereof.

 

Very truly yours,

PIMCO FUNDS

By:

  

 

Title:

  

Vice President

 

ACCEPTED:

  
PACIFIC INVESTMENT MANAGEMENT COMPANY LLC  

By:

  

 

Title:

  

Managing Director

  

PIMCO FUNDS, on behalf of its series PIMCO Funds: Private Account Portfolio Series - PIMCO Short-Term Floating NAV Portfolio and PIMCO Funds: Private Account Portfolio Series - PIMCO Short-Term Floating NAV Portfolio III on behalf of its series PIMCO Funds

  

 

By:

     

 

Title:

     

Vice President