EX-99.(D)(23) 3 d334718dex99d23.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)(23)

SUPPLEMENT TO

AMENDED AND RESTATED INVESTMENT ADVISORY CONTRACT

PIMCO Funds

650 Newport Center Drive

Newport Beach, California 92660

February 14, 2017

Pacific Investment Management Company LLC

650 Newport Center Drive

Newport Beach, California 92660

 

RE:

PIMCO Funds: Private Account Portfolio Series – PIMCO Short-Term Floating NAV Portfolio IV (the “Portfolio”)

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”), the parties may amend the Contract to add additional series of the Trust, under the same terms and conditions as set forth in the Contract, and at fee rates set forth in Exhibit A to the Contract, 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 add the Portfolio to Exhibit A and to make other changes to Exhibit A. The current Exhibit A is replaced with the new Exhibit A attached hereto.

This Supplement and the Contract shall become effective with respect to the Portfolio on February 14, 2017 and shall continue in effect for a period not to exceed two years from the effective date of this Supplement and shall continue thereafter on an annual basis with respect to the Portfolio only so long as such continuance is specifically approved at least annually by (a) the Trust’s Board of Trustees or by the vote of a majority of the outstanding voting securities (as defined in the Investment Company Act of 1940, as amended (the “1940 Act”)) of the Portfolio, and (b) the vote, cast in person at a meeting called for such purpose, of a majority of the Trust’s Trustees who are not parties to the Contract or “interested persons” (as defined in the 1940 Act) of any such party. This Supplement and the Contract shall terminate automatically in the event of its assignment (as defined in the 1940 Act). This Supplement and the Contract may be terminated with respect to the Portfolio at any time, without the payment of any penalty, by a vote of a majority of the outstanding voting securities (as defined in the 1940 Act) of the Portfolio or by a vote of a majority of the Trust’s entire Board of Trustees on 60 days’ written notice to the Adviser or by the Adviser on 60 days’ written notice to the Trust.

The Declaration of Trust establishing the Trust, as amended and restated effective November 4, 2014, 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 February 14, 2017)

PIMCO Funds

 

Fund

    Investment
Advisory
Fee		  

PIMCO All Asset All Authority Fund

      0.20 % 

PIMCO All Asset Fund

      0.175 % 

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 Capital Securities and Financials Fund

      0.44 % 

PIMCO CommoditiesPLUS® Strategy Fund

      0.49 % 

PIMCO CommodityRealReturn Strategy Fund®

      0.49 % 

PIMCO Credit Absolute Return Fund

      0.60 % 

PIMCO Diversified Income Fund

      0.45 % 

PIMCO Emerging Local Bond Fund

      0.45 % 

PIMCO Emerging Markets Bond Fund

      0.45 % 

PIMCO Emerging Markets Corporate Bond Fund

      0.55 % 

PIMCO Emerging Markets Currency Fund

      0.45 % 

PIMCO Emerging Markets Full Spectrum Bond Fund

      0.59 % 

PIMCO Extended Duration Fund

      0.25 % 

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

      0.25 % 

PIMCO Foreign Bond Fund (Unhedged)

      0.25 % 

PIMCO Global Advantage Strategy Bond Fund

      0.40 % 

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

      0.25 % 

PIMCO Global Bond Fund (Unhedged)

      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 % 

PIMCO High Yield Spectrum Fund

      0.30 % 

PIMCO Income Fund

      0.25 % 

PIMCO Inflation Response Multi-Asset Fund

      0.44 % 

PIMCO Investment Grade Corporate Bond Fund

      0.25 % 

PIMCO Long Duration Total Return Fund

      0.25 % 

PIMCO Long-Term Credit Fund

      0.30 % 

Fund

    Investment
Advisory
Fee		  

PIMCO Long-Term U.S. Government Fund

      0.225 % 

PIMCO Low Duration ESG Fund

      0.25 % 

PIMCO Low Duration Fund

      0.25 % 

PIMCO Low Duration Fund II

      0.25 % 

PIMCO Low Duration Income Fund

      0.30 % 

PIMCO Moderate Duration Fund

      0.25 % 

PIMCO Mortgage Opportunities Fund

      0.35 % 

PIMCO Mortgage-Backed Securities Fund

      0.25 % 

PIMCO Multi-Strategy Alternative Fund

      1.05 % 

PIMCO Municipal Bond Fund

      0.20 % 

PIMCO National Intermediate Municipal Bond Fund

      0.22 % 

PIMCO New York Municipal Bond Fund

      0.225 % 

PIMCO RAE Fundamental Advantage PLUS Fund

      0.64 % 

PIMCO RAE Fundamental PLUS EMG Fund

      0.85 % 

PIMCO RAE Fundamental PLUS Fund

      0.54 % 

PIMCO RAE Fundamental PLUS International Fund

      0.57 % 

PIMCO RAE Fundamental PLUS Small Fund

      0.59 % 

PIMCO RAE Low Volatility PLUS EMG Fund

      0.85 % 

PIMCO RAE Low Volatility PLUS Fund

      0.54 % 

PIMCO RAE Low Volatility PLUS International Fund

      0.57 % 

PIMCO RAE Worldwide Fundamental Advantage PLUS Fund

      0.74 % 

PIMCO RAE Worldwide Long/Short PLUS Fund

      0.94 % 

PIMCO Real Return Asset Fund

      0.30 % 

PIMCO Real Return Fund

      0.25 % 

PIMCO Real Return Limited Duration Fund

      0.20 % 

PIMCO RealEstateRealReturn Strategy Fund

      0.49 % 

PIMCO REALPATH® 2020 Fund(1)

      0.53 % 

PIMCO REALPATH® 2025 Fund(2)

      0.55 % 

PIMCO REALPATH® 2030 Fund(3)

      0.58 % 

PIMCO REALPATH® 2035 Fund(4)

      0.60 % 

PIMCO REALPATH® 2040 Fund(5)

      0.60 % 

PIMCO REALPATH® 2045 Fund(6)

      0.62 % 

PIMCO REALPATH® 2050 Fund(7)

      0.62 % 

PIMCO REALPATH® 2055 Fund(8)

      0.62 % 

Fund

    Investment
Advisory
Fee		  

PIMCO REALPATH® Income Fund

      0.50 % 

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 StocksPLUS® Absolute Return Fund

      0.39 % 

PIMCO StocksPLUS® Fund

      0.25 % 

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

      0.45 % 

PIMCO StocksPLUS® International Fund (Unhedged)

      0.39 % 

PIMCO StocksPLUS® Long Duration Fund

      0.35 % 

PIMCO StocksPLUS® Short Fund

      0.39 % 

PIMCO StocksPLUS® Small Fund

      0.44 % 

PIMCO Tax Managed Real Return Fund

      0.25 % 

PIMCO Total Return ESG Fund

      0.25 % 

PIMCO Total Return Fund

      0.25 % 

PIMCO Total Return Fund II

      0.25 % 

PIMCO Total Return Fund IV

      0.25 % 

PIMCO TRENDS Managed Futures Strategy Fund

      1.15 % 

PIMCO Unconstrained Bond Fund

      0.60 % 

PIMCO Unconstrained Tax Managed Bond Fund

      0.40 % 

Private Account Portfolio Series

 

Portfolio

    Investment
Advisory
Fee		  

PIMCO Asset-Backed Securities Portfolio

      0.02 % 

PIMCO Emerging Markets 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 Municipal Sector Portfolio

      0.02 % 

PIMCO Real Return Portfolio

      0.02 % 

PIMCO Senior Floating Rate Portfolio

      0.02 % 

PIMCO Short-Term Floating NAV Portfolio II

      0.02 % 

PIMCO Short-Term Floating NAV Portfolio III(9)

      0.00 % 

PIMCO Short-Term Floating NAV Portfolio IV(9)

      0.00 % 

PIMCO Short-Term Portfolio

      0.02 % 

PIMCO U.S. Government Sector Portfolio

      0.02 % 

 

 

(1)

   

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

(2)

   

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%.

(3)

   

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%.

(4)

   

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%.

(5)

   

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%.

(6)

   

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%.

(7)

   

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%.

(8)

   

Effective April 1, 2030, the Fund’s investment advisory fee will be further reduced to 0.60%. Effective April 1, 2040, the Fund’s investment advisory fee will be further reduced to 0.58%.

(9)

   

PIMCO Short-Term Floating NAV Portfolio III and PIMCO Short-Term Floating NAV Portfolio IV (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 a PIMCO Short-Term Floating NAV Portfolio, 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 applicable PIMCO Short-Term Floating NAV Portfolio, and its wholly-owned subsidiary (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:  

/s/ Henrik Larsen

Name:   Henrik Larsen
Title:   Vice President

 

ACCEPTED:
PACIFIC INVESTMENT MANAGEMENT COMPANY LLC
By:  

/s/ Peter Strelow                                                         

Name:   Peter Strelow
Title:   Managing Director

 

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

   

 

By:  

/s/ Henrik Larsen

Name:   Henrik Larsen
Title:   Vice President