Form 497K PIMCO VARIABLE INSURANCE
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PIMCO Real Return Portfolio
Summary Prospectus
April 30, 2021
| Share Class: |
Administrative Class |
As permitted by regulations adopted by the Securities and Exchange Commission, you may not be receiving
paper copies of the Portfolio's shareholder reports from the insurance company that offers your contract unless you specifically request paper copies from the insurance company or from your financial intermediary Instead, the shareholder reports will be made available
on a website, and the insurance company will notify you by mail each time a report is posted and provide you with a website link to access the report. Instructions for requesting paper copies will be provided by your insurance company.
If you already elected to receive shareholder reports electronically, you will not be affected by this
change and you need not take any action. You may elect to receive shareholder reports and other communications from the insurance company electronically by following the instructions provided by the insurance company.
You may elect to receive all future reports in paper free of charge from the insurance
company. You should contact the insurance company if you wish to continue receiving paper copies of your
shareholder reports. Your election to receive reports in paper will apply to all portfolio companies available under your contract at the insurance company.
Before you invest, you may want to review the Portfolio’s
prospectus, which, as supplemented, contains more information about the Portfolio and its risks. You can find the Portfolio’s prospectus, reports to shareholders and other information about the Portfolio online at http://www.pimco.com/pvit. You can also get this information at no
cost by calling 1.800.927.4648 or by sending an email request to
[email protected]. The Portfolio’s prospectus and Statement of Additional Information, both dated April 30, 2021, as supplemented, are incorporated by reference
into this Summary Prospectus.
Investment Objective
The Portfolio seeks maximum real return, consistent with preservation of real capital and prudent investment management.
Fees and Expenses of the Portfolio
This table describes the fees and expenses that you may pay if you buy, hold and sell Administrative
Class shares of the Portfolio. You may pay other fees, such as commissions and other fees to financial
intermediaries, which are not reflected in the table and example below. Overall fees and expenses of
investing in the Portfolio are higher than shown because the table does not reflect variable contract fees and expenses.
| Shareholder Fees (fees paid directly from your investment): |
N/A |
Annual Portfolio Operating Expenses (expenses that you pay each year as
a percentage of the value of your investment):
| |
Administrative
Class |
| Management Fees |
0.50% |
| Distribution and/or Service (12b-1) Fees |
0.15% |
| Other Expenses(1) |
0.19% |
| Total Annual Portfolio Operating Expenses |
0.84% |
1
“Other Expenses” include interest expense of 0.19%. Interest expense is borne by
the Portfolio separately from the management fees paid to Pacific Investment Management Company LLC
(“PIMCO”). Excluding interest expense, Total Annual Portfolio Operating Expenses are 0.65% for Administrative Class shares.
Example. The
Example is intended to help you compare the cost of investing in Administrative Class shares of the Portfolio with the costs of investing in other mutual funds. The Example assumes that you invest $10,000 for the time periods indicated, and then
redeem all your shares at the end of those periods. The Example also assumes that your investment has a 5%
return each year and that the Portfolio’s operating expenses remain the same. Although your actual costs may be higher or lower, the Example shows what your costs would be based on these assumptions. The Example does not reflect fees and
expenses of any variable annuity contract or variable life insurance policy, and would be higher if it
did.
| |
1 Year |
3 Years |
5 Years |
10 Years |
| Administrative Class |
$86 |
$268 |
$466 |
$1,037 |
Portfolio Turnover
The Portfolio pays transaction costs when it buys and sells securities (or “turns over” its
portfolio). A higher portfolio turnover rate may indicate higher transaction costs. These costs, which are not reflected in the Annual Portfolio Operating Expenses or in the Example table, affect the Portfolio’s performance. During the most
recent fiscal year, the Portfolio’s portfolio turnover rate was 240% of the average value of its portfolio.
Principal Investment Strategies
The Portfolio seeks to achieve its investment objective by investing under normal circumstances at least 80% of its net assets in inflation-indexed bonds of varying maturities issued by the
U.S. and non-U.S. governments, their agencies or instrumentalities and corporations, which may be
represented by forwards or derivatives such as options, futures contracts or swap agreements. Assets not invested in inflation-indexed bonds may be invested in other types of 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. Inflation-indexed bonds are fixed income securities that are structured to provide
protection against inflation. The value of the bond’s principal or the interest income paid on the bond is adjusted to track changes in an official inflation measure. The U.S. Treasury uses the Consumer Price Index for Urban
Consumers as the inflation measure. Inflation-indexed bonds issued by a foreign government are generally
adjusted to reflect a comparable inflation index, calculated by that government. “Real return” equals total return less the estimated cost of inflation, which is typically measured by the change in an official inflation measure.
Duration is a measure used to determine the sensitivity of a security’s price to changes in interest rates. The longer a security’s duration, the more sensitive it will be to changes in interest rates. Effective duration,
a common method of calculating duration, takes into account that for certain bonds expected cash flows will
fluctuate as interest rates change and is defined in nominal yield terms, which is market convention for most bond investors and managers. Because market convention for bonds is to use nominal yields to measure effective duration, effective duration
for real return bonds, which are based on real yields, are converted through a conversion factor. The
resulting nominal duration typically can range
PIMCO Variable Insurance Trust | Summary Prospectus
PIMCO Real Return Portfolio
from 20% and 90% of the respective real duration. All security holdings will be measured in nominal effective duration terms. Similarly, the effective duration of the Bloomberg Barclays U.S.
TIPS Index will be calculated using the same conversion factors. The effective duration of this Portfolio
normally varies within three years (plus or minus) of the effective duration of the securities comprising the Bloomberg Barclays U.S. TIPS Index, as calculated by PIMCO, which as of February 28, 2021 was 7.63 years.
The Portfolio invests primarily in investment grade securities, but may invest up to 10% of its total assets in high yield securities (“junk bonds”) rated B or higher by
Moody’s Investors Service, Inc. (“Moody’s”), or equivalently rated by Standard & Poor’s Ratings Services (“S&P”) or Fitch, Inc. (“Fitch”), or, if unrated, determined by PIMCO to be of comparable
quality (except that within such 10% limitation, the Portfolio may invest in mortgage-related securities rated below B). In the event that ratings services assign different ratings to the same security, PIMCO will use the highest rating as the
credit rating for that security. The Portfolio also 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. The Portfolio may invest up to 10% of its total assets in securities and instruments that are economically tied to emerging
market countries (this limitation does not apply to investment grade sovereign debt denominated in the
local currency with less than 1 year remaining to maturity, which means the Portfolio may invest, together with any other investments denominated in foreign currencies, up to 30% of its total assets in such instruments). The Portfolio will
normally limit its foreign currency exposure (from non-U.S. dollar-denominated securities or currencies) to
20% of its total assets.
The Portfolio may invest, without limitation, in
derivative instruments, such as options, futures contracts or swap agreements, or in mortgage- or
asset-backed securities, subject to applicable law and any other restrictions described in the Portfolio’s prospectus or Statement of Additional Information. The Portfolio may purchase or sell securities on a when-issued, delayed delivery or forward
commitment basis and may engage in short sales. The Portfolio may, without limitation, seek to obtain
market exposure to the securities in which it primarily invests by entering into a series of purchase and sale contracts or by using other investment techniques (such as buy backs or dollar rolls). The Portfolio may also invest up to 10% of its total assets
in preferred securities.
Principal Risks
It is possible to lose money on an investment in the Portfolio. The principal risks of investing in the Portfolio, which could adversely affect its net asset value, yield and total return, are listed below.
Interest Rate Risk: the risk that fixed income securities will decline in value because of an increase in interest rates; a portfolio with a
longer average portfolio duration will be more sensitive to changes in interest rates than a portfolio with
a shorter average portfolio duration
Call Risk: the risk that an issuer may exercise its right to redeem a fixed income security earlier than expected (a call). Issuers may call outstanding securities prior to their maturity
for a number of reasons
(e.g., declining
interest rates, changes in credit spreads and improvements in the issuer’s credit quality). If an issuer calls a security that the Portfolio has invested in, the Portfolio may not recoup the full amount of its initial investment and may be
forced to reinvest in lower-yielding securities, securities with greater credit risks or securities with
other, less favorable features
Credit Risk: the risk that the Portfolio could lose money if the issuer or guarantor of a fixed income security, or the counterparty to a derivative contract, is unable or unwilling, or is
perceived (whether by market participants, rating agencies, pricing services or otherwise) as unable or
unwilling, to meet its financial obligations
High Yield Risk: the risk that high yield securities and unrated securities of similar credit quality (commonly known as “junk
bonds”) are subject to greater levels of credit, call and liquidity risks. High yield securities are
considered primarily speculative with respect to the issuer’s continuing ability to make principal and interest payments, and may be more volatile than higher-rated securities of similar maturity
Market
Risk: the risk that the value of securities owned by the Portfolio may go up or down, sometimes rapidly or unpredictably, due to factors affecting securities markets generally
or particular industries
Issuer Risk: the risk that the value of a security may decline for a reason directly related to the issuer, such as management performance, financial leverage and reduced demand for the
issuer’s goods or services
Liquidity Risk: the risk that a particular investment may be difficult to purchase or sell and that the Portfolio may be unable to sell illiquid investments at an advantageous time or price or
achieve its desired level of exposure to a certain sector. Liquidity risk may result from the lack of an
active market, reduced number and capacity of traditional market participants to make a market in fixed income securities, and may be magnified in a rising interest rate environment or other circumstances where investor redemptions from fixed
income funds may be higher than normal, causing increased supply in the market due to selling
activity
Derivatives Risk: the risk of investing in derivative instruments (such as futures, swaps and structured securities), including leverage, liquidity, interest rate, market, credit and
management risks, and valuation complexity. Changes in the value of a derivative may not correlate
perfectly with, and may be more sensitive to market events than, the underlying asset, rate or index, and
the Portfolio could lose more than the initial amount invested. The Portfolio’s use of derivatives may result in losses to the Portfolio, a reduction in the Portfolio’s returns and/or increased volatility. Over-the-counter
(“OTC”) derivatives are also subject to the risk that a counterparty to the transaction will not fulfill its contractual obligations to the other party, as many of the protections afforded to centrally-cleared derivative
transactions might not be available for OTC derivatives. The primary credit risk on derivatives that are
exchange-traded or traded through a central clearing counterparty resides with the Portfolio's clearing broker or the clearinghouse. Changes in regulation relating to a mutual fund’s use of derivatives and related instruments could potentially
limit or impact the Portfolio’s
2 Summary Prospectus | PIMCO Variable Insurance Trust
Summary Prospectus
ability to invest in derivatives,
limit the Portfolio’s ability to employ certain strategies that use derivatives and/or adversely affect the value of derivatives and the Portfolio’s performance
Equity
Risk: the risk that the value of equity securities, such as common stocks and preferred securities, may decline due to general market conditions which are not specifically related
to a particular company or to factors affecting a particular industry or industries. Equity securities
generally have greater price volatility than fixed income securities
Mortgage-Related and Other Asset-Backed Securities Risk: the risks of investing in mortgage-related and other asset-backed securities, including interest rate risk, extension risk, prepayment risk and credit risk
Foreign (Non-U.S.) Investment Risk: the risk that investing in foreign
(non-U.S.) securities may result in the Portfolio experiencing more rapid and extreme changes in value than a portfolio that invests exclusively in securities of U.S. companies, due to smaller markets, differing reporting, accounting and auditing
standards, increased risk of delayed settlement of portfolio transactions or loss of certificates of
portfolio securities, and the risk of unfavorable foreign government actions, including nationalization,
expropriation or confiscatory taxation, currency blockage, or political changes or diplomatic developments.
Foreign securities may also be less liquid and more difficult to value than securities of U.S.
issuers
Emerging Markets Risk: the risk of investing in emerging market
securities, primarily increased foreign (non-U.S.) investment risk
Sovereign Debt Risk: the risk that investments in fixed income instruments issued by sovereign entities may decline in value as a result
of default or other adverse credit event resulting from an issuer’s inability or unwillingness to
make principal or interest payments in a timely fashion
Currency
Risk: the risk that foreign (non-U.S.) currencies will change in value relative to the U.S. dollar and affect the Portfolio’s investments in foreign (non-U.S.) currencies or in
securities that trade in, and receive revenues in, or in derivatives that provide exposure to, foreign (non-U.S.) currencies
Leveraging Risk: the risk that certain transactions of the Portfolio, such as reverse repurchase agreements, loans of portfolio
securities, and the use of when-issued, delayed delivery or forward commitment transactions, or derivative
instruments, may give rise to leverage, magnifying gains and losses and causing the Portfolio to be more
volatile than if it had not been leveraged. This means that leverage entails a heightened risk of
loss
Management Risk: the risk that the investment techniques and risk analyses applied by PIMCO will not produce the desired results and that actual or potential conflicts of interest,
legislative, regulatory, or tax restrictions, policies or developments may affect the investment techniques
available to PIMCO and the individual portfolio manager in connection with managing the Portfolio and may cause PIMCO to
restrict or prohibit participation
in certain investments. There is no guarantee that the investment objective of the Portfolio will be achieved
Inflation-Indexed Security Risk: the risk that inflation-indexed debt
securities are subject to the effects of changes in market interest rates caused by factors other than
inflation (real interest rates). In general, the value of an inflation-indexed security, including TIPS, tends to decrease when real interest rates increase and can increase when real interest rates decrease. Interest payments on
inflation-indexed securities are unpredictable and will fluctuate as the principal and interest are
adjusted for inflation. There can be no assurance that the inflation index used will accurately measure the
real rate of inflation in the prices of goods and services. Any increase in the principal amount of an
inflation-indexed debt security will be considered taxable ordinary income, even though the Portfolio will
not receive the principal until maturity
Short Exposure Risk: the risk of entering into short sales, including the potential loss of more money than the actual cost of the
investment, and the risk that the third party to the short sale will not fulfill its contractual
obligations, causing a loss to the Portfolio
Please see “Description
of Principal Risks” in the Portfolio's prospectus for a more detailed description of the risks of investing in the Portfolio. An investment in the Portfolio is not a deposit of a bank and is not insured or guaranteed by the Federal Deposit
Insurance Corporation or any other government agency.
Performance Information
The performance information shows summary performance information for the Portfolio in a bar chart and an
Average Annual Total Returns table. The information provides some indication of the risks of investing
in the Portfolio by showing changes in its performance from year to year and by showing how the
Portfolio’s average annual returns compare with the returns of a broad-based securities market index.
The Portfolio’s performance information reflects applicable fee waivers and/or expense limitations in
effect during the periods presented. Absent such fee waivers and/or expense limitations, if any, performance would have been lower. Performance shown does not reflect any charges or expenses imposed by an insurance company, and, if it did, performance shown would be lower. The bar chart and the table show performance of the Portfolio’s Administrative Class shares. The Portfolio’s past performance is not necessarily an indication of how the
Portfolio will perform in the future.
The Bloomberg Barclays U.S. TIPS Index is an unmanaged market index comprised of all U.S. Treasury Inflation-Protected
Securities rated investment grade (Baa3 or better), having at least one year to final maturity, and at
least $500 million par amount outstanding.
Performance for the Portfolio
is updated daily and monthly and may be obtained as follows: daily updates on the net asset value may be
obtained by calling 1-888-87-PIMCO
and monthly performance may be obtained at www.pimco.com/pvit.
April 30, 2021 | SUMMARY PROSPECTUS 3
PIMCO Real
Return Portfolio
Calendar Year Total Returns — Administrative Class
| Best Quarter |
June 30, 2020 |
5.29% |
| Worst Quarter |
June 30, 2013 |
-8.44% |
Average Annual Total Returns (for periods ended 12/31/20)
| |
1 Year |
5 Years |
10 Years |
| Administrative Class Return |
11.71% |
5.25% |
3.63% |
| Bloomberg Barclays U.S. TIPS Index (reflects no deductions for fees, expenses or taxes) |
10.99% |
5.08% |
3.81% |
Investment Adviser/Portfolio Manager
PIMCO serves as the investment adviser for the Portfolio. The Portfolio’s portfolio is jointly and primarily managed by Steve Rodosky and Daniel He. Mr. Rodosky is a Managing Director of PIMCO, and he has managed the Portfolio since January 2019. Mr. He is an Executive Vice President of PIMCO, and he has managed the Portfolio since December 2019.
Purchase and Sale of Portfolio Shares
Shares of the Portfolio currently are sold to segregated asset accounts (“Separate Accounts”) of insurance companies that fund variable annuity contracts and variable life
insurance policies (“Variable Contracts”) and other funds that serve as underlying investment options for Variable Contracts (i.e.,
variable insurance funds). Investors do not deal directly with the Portfolio to purchase and redeem shares. Please refer to the prospectus for the Separate Account for information on the allocation of premiums and on transfers of
accumulated value among sub-accounts of the Separate Account.
Tax Information
The shareholders of the Portfolio are the insurance companies offering the variable products or other
variable insurance funds. Please refer to the prospectus for the Separate Account and the Variable Contract for information regarding the federal income tax treatment of distributions to the Separate Account.
Payments to
Insurance Companies and Other Financial Intermediaries
The Portfolio and/or its related companies (including PIMCO) may pay the insurance company and other
intermediaries for the sale of the Portfolio and/or other services. These payments may create a conflict of
interest by influencing the insurance company or intermediary and your salesperson to recommend a Variable
Contract and the Portfolio over another investment. Ask your insurance company or salesperson or visit your
financial intermediary’s Web site for more information.
PVIT0343S_043021
PIMCO Real Return Portfolio
Summary Prospectus
April 30, 2021
| Share Class: |
Advisor Class |
As permitted by regulations adopted by the Securities and Exchange Commission, you may not be receiving
paper copies of the Portfolio's shareholder reports from the insurance company that offers your contract unless you specifically request paper copies from the insurance company or from your financial intermediary Instead, the shareholder reports will be made available
on a website, and the insurance company will notify you by mail each time a report is posted and provide you with a website link to access the report. Instructions for requesting paper copies will be provided by your insurance company.
If you already elected to receive shareholder reports electronically, you will not be affected by this
change and you need not take any action. You may elect to receive shareholder reports and other communications from the insurance company electronically by following the instructions provided by the insurance company.
You may elect to receive all future reports in paper free of charge from the insurance
company. You should contact the insurance company if you wish to continue receiving paper copies of your
shareholder reports. Your election to receive reports in paper will apply to all portfolio companies available under your contract at the insurance company.
Before you invest, you may want to review the Portfolio’s
prospectus, which, as supplemented, contains more information about the Portfolio and its risks. You can find the Portfolio’s prospectus, reports to shareholders and other information about the Portfolio online at http://www.pimco.com/pvit. You can also get this information at no
cost by calling 1.800.927.4648 or by sending an email request to
[email protected]. The Portfolio’s prospectus and Statement of Additional Information, both dated April 30, 2021, as supplemented, are incorporated by reference
into this Summary Prospectus.
Investment Objective
The Portfolio seeks maximum real return, consistent with preservation of real capital and prudent investment management.
Fees and Expenses of the Portfolio
This table describes the fees and expenses that you may pay if you buy, hold and sell Advisor Class
shares of the Portfolio. You may pay other fees, such as commissions and other fees to financial intermediaries, which are not reflected in the table and example below. Overall fees and expenses of investing in the Portfolio are
higher than shown because the table does not reflect variable contract fees and expenses.
| Shareholder Fees (fees paid directly from your investment): |
N/A |
Annual Portfolio Operating Expenses (expenses that you pay each year as
a percentage of the value of your investment):
| |
Advisor
Class |
| Management Fees |
0.50% |
| Distribution and/or Service (12b-1) Fees |
0.25% |
| Other Expenses(1) |
0.19% |
| Total Annual Portfolio Operating Expenses |
0.94% |
1
“Other Expenses” include interest expense of 0.19%. Interest expense is borne by
the Portfolio separately from the management fees paid to Pacific Investment Management Company LLC
(“PIMCO”). Excluding interest expense, Total Annual Portfolio Operating Expenses are 0.75% for Advisor Class shares.
Example. The Example is intended to help you compare the cost of investing in Advisor Class shares of the Portfolio with the costs of
investing in other mutual funds. The Example assumes that you invest $10,000 for the time periods indicated, and then redeem all your shares at the end of those periods. The Example also
assumes that your investment has a 5% return each year and that the Portfolio’s operating expenses
remain the same. Although your actual costs may be higher or lower, the Example shows what your costs would be based on these assumptions. The Example does not reflect fees and expenses of any variable annuity contract or variable life insurance
policy, and would be higher if it did.
| |
1 Year |
3 Years |
5 Years |
10 Years |
| Advisor Class |
$96 |
$300 |
$520 |
$1,155 |
Portfolio Turnover
The Portfolio pays transaction costs when it buys and sells securities (or “turns over” its
portfolio). A higher portfolio turnover rate may indicate higher transaction costs. These costs, which are not reflected in the Annual Portfolio Operating Expenses or in the Example table, affect the Portfolio’s performance. During the most
recent fiscal year, the Portfolio’s portfolio turnover rate was 240% of the average value of its portfolio.
Principal Investment Strategies
The Portfolio seeks to achieve its investment objective by investing under normal circumstances at least 80% of its net assets in inflation-indexed bonds of varying maturities issued by the
U.S. and non-U.S. governments, their agencies or instrumentalities and corporations, which may be
represented by forwards or derivatives such as options, futures contracts or swap agreements. Assets not invested in inflation-indexed bonds may be invested in other types of 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. Inflation-indexed bonds are fixed income securities that are structured to provide
protection against inflation. The value of the bond’s principal or the interest income paid on the bond is adjusted to track changes in an official inflation measure. The U.S. Treasury uses the Consumer Price Index for Urban
Consumers as the inflation measure. Inflation-indexed bonds issued by a foreign government are generally
adjusted to reflect a comparable inflation index, calculated by that government. “Real return” equals total return less the estimated cost of inflation, which is typically measured by the change in an official inflation measure.
Duration is a measure used to determine the sensitivity of a security’s price to changes in interest rates. The longer a security’s duration, the more sensitive it will be to changes in interest rates. Effective duration,
a common method of calculating duration, takes into account that for certain bonds expected cash flows will
fluctuate as interest rates change and is defined in nominal yield terms, which is market convention for most bond investors and managers. Because market convention for bonds is to use nominal yields to measure effective duration, effective duration
for real return bonds, which are based on real yields, are converted through a conversion factor. The
resulting nominal duration typically can range from 20% and 90% of the respective real duration. All security holdings will be measured in nominal effective duration terms. Similarly, the
PIMCO Variable Insurance Trust | Summary Prospectus
PIMCO Real Return Portfolio
effective duration of the Bloomberg Barclays U.S. TIPS Index will be calculated using the same conversion factors. The effective duration of this Portfolio normally varies within three
years (plus or minus) of the effective duration of the securities comprising the Bloomberg Barclays U.S.
TIPS Index, as calculated by PIMCO, which as of February 28, 2021 was 7.63 years.
The Portfolio invests primarily in investment grade securities, but may invest up to 10% of its total
assets in high yield securities (“junk bonds”) rated B or higher by Moody’s Investors Service, Inc. (“Moody’s”), or equivalently rated by Standard & Poor’s Ratings Services
(“S&P”) or Fitch, Inc. (“Fitch”), or, if unrated, determined by PIMCO to be of
comparable quality (except that within such 10% limitation, the Portfolio may invest in mortgage-related securities rated below B). In the event that ratings services assign different ratings to the same security, PIMCO will use the highest rating as the
credit rating for that security. The Portfolio also 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. The Portfolio may invest up to 10% of its total assets in securities and instruments that are economically tied to emerging
market countries (this limitation does not apply to investment grade sovereign debt denominated in the
local currency with less than 1 year remaining to maturity, which means the Portfolio may invest, together with any other investments denominated in foreign currencies, up to 30% of its total assets in such instruments). The Portfolio will
normally limit its foreign currency exposure (from non-U.S. dollar-denominated securities or currencies) to
20% of its total assets.
The Portfolio may invest, without limitation, in
derivative instruments, such as options, futures contracts or swap agreements, or in mortgage- or
asset-backed securities, subject to applicable law and any other restrictions described in the Portfolio’s prospectus or Statement of Additional Information. The Portfolio may purchase or sell securities on a when-issued, delayed delivery or forward
commitment basis and may engage in short sales. The Portfolio may, without limitation, seek to obtain
market exposure to the securities in which it primarily invests by entering into a series of purchase and sale contracts or by using other investment techniques (such as buy backs or dollar rolls). The Portfolio may also invest up to 10% of its total assets
in preferred securities.
Principal Risks
It is possible to lose money on an investment in the Portfolio. The principal risks of investing in the Portfolio, which could adversely affect its net asset value, yield and total return, are listed below.
Interest Rate Risk: the risk that fixed income securities will decline in value because of an increase in interest rates; a portfolio with a
longer average portfolio duration will be more sensitive to changes in interest rates than a portfolio with
a shorter average portfolio duration
Call Risk: the risk that an issuer may exercise its right to redeem a fixed income security earlier than expected (a call). Issuers may call outstanding securities prior to their maturity
for a number of reasons (e.g., declining interest rates, changes in credit spreads and improvements in the issuer’s credit quality). If an
issuer calls a security
that the Portfolio has invested in, the Portfolio may not recoup the full amount of its initial
investment and may be forced to reinvest in lower-yielding securities, securities with greater credit risks or securities with other, less favorable features
Credit
Risk: the risk that the Portfolio could lose money if the issuer or guarantor of a fixed income security, or the counterparty to a derivative contract, is unable or unwilling, or is
perceived (whether by market participants, rating agencies, pricing services or otherwise) as unable or
unwilling, to meet its financial obligations
High Yield Risk: the risk that high yield securities and unrated securities of similar credit quality (commonly known as “junk
bonds”) are subject to greater levels of credit, call and liquidity risks. High yield securities are
considered primarily speculative with respect to the issuer’s continuing ability to make principal and interest payments, and may be more volatile than higher-rated securities of similar maturity
Market
Risk: the risk that the value of securities owned by the Portfolio may go up or down, sometimes rapidly or unpredictably, due to factors affecting securities markets generally
or particular industries
Issuer Risk: the risk that the value of a security may decline for a reason directly related to the issuer, such as management performance, financial leverage and reduced demand for the
issuer’s goods or services
Liquidity Risk: the risk that a particular investment may be difficult to purchase or sell and that the Portfolio may be unable to sell illiquid investments at an advantageous time or price or
achieve its desired level of exposure to a certain sector. Liquidity risk may result from the lack of an
active market, reduced number and capacity of traditional market participants to make a market in fixed income securities, and may be magnified in a rising interest rate environment or other circumstances where investor redemptions from fixed
income funds may be higher than normal, causing increased supply in the market due to selling
activity
Derivatives Risk: the risk of investing in derivative instruments (such as futures, swaps and structured securities), including leverage, liquidity, interest rate, market, credit and
management risks, and valuation complexity. Changes in the value of a derivative may not correlate
perfectly with, and may be more sensitive to market events than, the underlying asset, rate or index, and
the Portfolio could lose more than the initial amount invested. The Portfolio’s use of derivatives may result in losses to the Portfolio, a reduction in the Portfolio’s returns and/or increased volatility. Over-the-counter
(“OTC”) derivatives are also subject to the risk that a counterparty to the transaction will not fulfill its contractual obligations to the other party, as many of the protections afforded to centrally-cleared derivative
transactions might not be available for OTC derivatives. The primary credit risk on derivatives that are
exchange-traded or traded through a central clearing counterparty resides with the Portfolio's clearing broker or the clearinghouse. Changes in regulation relating to a mutual fund’s use of derivatives and related instruments could potentially
limit or impact the Portfolio’s ability to invest in derivatives, limit the Portfolio’s ability to employ
2 Summary Prospectus | PIMCO Variable Insurance Trust
Summary Prospectus
certain strategies that use derivatives and/or adversely affect the value of derivatives and the Portfolio’s performance
Equity
Risk: the risk that the value of equity securities, such as common stocks and preferred securities, may decline due to general market conditions which are not specifically related
to a particular company or to factors affecting a particular industry or industries. Equity securities
generally have greater price volatility than fixed income securities
Mortgage-Related and Other Asset-Backed Securities Risk: the risks of investing in mortgage-related and other asset-backed securities, including interest rate risk, extension risk, prepayment risk and credit risk
Foreign (Non-U.S.) Investment Risk: the risk that investing in foreign
(non-U.S.) securities may result in the Portfolio experiencing more rapid and extreme changes in value than a portfolio that invests exclusively in securities of U.S. companies, due to smaller markets, differing reporting, accounting and auditing
standards, increased risk of delayed settlement of portfolio transactions or loss of certificates of
portfolio securities, and the risk of unfavorable foreign government actions, including nationalization,
expropriation or confiscatory taxation, currency blockage, or political changes or diplomatic developments.
Foreign securities may also be less liquid and more difficult to value than securities of U.S.
issuers
Emerging Markets Risk: the risk of investing in emerging market
securities, primarily increased foreign (non-U.S.) investment risk
Sovereign Debt Risk: the risk that investments in fixed income instruments issued by sovereign entities may decline in value as a result
of default or other adverse credit event resulting from an issuer’s inability or unwillingness to
make principal or interest payments in a timely fashion
Currency
Risk: the risk that foreign (non-U.S.) currencies will change in value relative to the U.S. dollar and affect the Portfolio’s investments in foreign (non-U.S.) currencies or in
securities that trade in, and receive revenues in, or in derivatives that provide exposure to, foreign (non-U.S.) currencies
Leveraging Risk: the risk that certain transactions of the Portfolio, such as reverse repurchase agreements, loans of portfolio
securities, and the use of when-issued, delayed delivery or forward commitment transactions, or derivative
instruments, may give rise to leverage, magnifying gains and losses and causing the Portfolio to be more
volatile than if it had not been leveraged. This means that leverage entails a heightened risk of
loss
Management Risk: the risk that the investment techniques and risk analyses applied by PIMCO will not produce the desired results and that actual or potential conflicts of interest,
legislative, regulatory, or tax restrictions, policies or developments may affect the investment techniques
available to PIMCO and the individual portfolio manager in connection with managing the Portfolio and may cause PIMCO to
restrict or prohibit participation
in certain investments. There is no guarantee that the investment objective of the Portfolio will be achieved
Inflation-Indexed Security Risk: the risk that inflation-indexed debt
securities are subject to the effects of changes in market interest rates caused by factors other than
inflation (real interest rates). In general, the value of an inflation-indexed security, including TIPS, tends to decrease when real interest rates increase and can increase when real interest rates decrease. Interest payments on
inflation-indexed securities are unpredictable and will fluctuate as the principal and interest are
adjusted for inflation. There can be no assurance that the inflation index used will accurately measure the
real rate of inflation in the prices of goods and services. Any increase in the principal amount of an
inflation-indexed debt security will be considered taxable ordinary income, even though the Portfolio will
not receive the principal until maturity
Short Exposure Risk: the risk of entering into short sales, including the potential loss of more money than the actual cost of the
investment, and the risk that the third party to the short sale will not fulfill its contractual
obligations, causing a loss to the Portfolio
Please see “Description
of Principal Risks” in the Portfolio's prospectus for a more detailed description of the risks of investing in the Portfolio. An investment in the Portfolio is not a deposit of a bank and is not insured or guaranteed by the Federal Deposit
Insurance Corporation or any other government agency.
Performance Information
The performance information shows summary performance information for the Portfolio in a bar chart and an
Average Annual Total Returns table. The information provides some indication of the risks of investing
in the Portfolio by showing changes in its performance from year to year and by showing how the
Portfolio’s average annual returns compare with the returns of a broad-based securities market index.
The Portfolio’s performance information reflects applicable fee waivers and/or expense limitations in
effect during the periods presented. Absent such fee waivers and/or expense limitations, if any, performance would have been lower. Performance shown does not reflect any charges or expenses imposed by an insurance company, and, if it did, performance shown would be lower. The bar chart and the table show performance of the Portfolio’s Advisor Class shares. The Portfolio’s past performance is not necessarily an indication of how the
Portfolio will perform in the future.
The Bloomberg Barclays U.S. TIPS Index is an unmanaged market index comprised of all U.S. Treasury Inflation-Protected
Securities rated investment grade (Baa3 or better), having at least one year to final maturity, and at
least $500 million par amount outstanding.
Performance for the Portfolio
is updated daily and monthly and may be obtained as follows: daily updates on the net asset value may be
obtained by calling 1-888-87-PIMCO
and monthly performance may be obtained at www.pimco.com/pvit.
April 30, 2021 | SUMMARY PROSPECTUS 3
PIMCO Real
Return Portfolio
Calendar Year Total Returns — Advisor Class
| Best Quarter |
June 30, 2020 |
5.27% |
| Worst Quarter |
June 30, 2013 |
-8.47% |
Average Annual Total Returns (for periods ended 12/31/20)
| |
1 Year |
5 Years |
10 Years |
| Advisor Class Return |
11.60% |
5.15% |
3.53% |
| Bloomberg Barclays U.S. TIPS Index (reflects no deductions for fees, expenses or taxes) |
10.99% |
5.08% |
3.81% |
Investment Adviser/Portfolio Manager
PIMCO serves as the investment adviser for the Portfolio. The Portfolio’s portfolio is jointly and primarily managed by Steve Rodosky and Daniel He. Mr. Rodosky is a Managing Director of PIMCO, and he has managed the Portfolio since January 2019. Mr. He is an Executive Vice President of PIMCO, and he has managed the Portfolio since December 2019.
Purchase and Sale of Portfolio Shares
Shares of the Portfolio currently are sold to segregated asset accounts (“Separate Accounts”) of insurance companies that fund variable annuity contracts and variable life
insurance policies (“Variable Contracts”) and other funds that serve as underlying investment options for Variable Contracts (i.e.,
variable insurance funds). Investors do not deal directly with the Portfolio to purchase and redeem shares. Please refer to the prospectus for the Separate Account for information on the allocation of premiums and on transfers of
accumulated value among sub-accounts of the Separate Account.
Tax Information
The shareholders of the Portfolio are the insurance companies offering the variable products or other
variable insurance funds. Please refer to the prospectus for the Separate Account and the Variable Contract for information regarding the federal income tax treatment of distributions to the Separate Account.
Payments to
Insurance Companies and Other Financial Intermediaries
The Portfolio and/or its related companies (including PIMCO) may pay the insurance company and other
intermediaries for the sale of the Portfolio and/or other services. These payments may create a conflict of
interest by influencing the insurance company or intermediary and your salesperson to recommend a Variable
Contract and the Portfolio over another investment. Ask your insurance company or salesperson or visit your
financial intermediary’s Web site for more information.
PVIT1840S_043021
PIMCO Real Return Portfolio
Summary Prospectus
April 30, 2021
| Share Class: |
Institutional Class |
As permitted by regulations adopted by the Securities and Exchange Commission, you may not be receiving
paper copies of the Portfolio's shareholder reports from the insurance company that offers your contract unless you specifically request paper copies from the insurance company or from your financial intermediary Instead, the shareholder reports will be made available
on a website, and the insurance company will notify you by mail each time a report is posted and provide you with a website link to access the report. Instructions for requesting paper copies will be provided by your insurance company.
If you already elected to receive shareholder reports electronically, you will not be affected by this
change and you need not take any action. You may elect to receive shareholder reports and other communications from the insurance company electronically by following the instructions provided by the insurance company.
You may elect to receive all future reports in paper free of charge from the insurance
company. You should contact the insurance company if you wish to continue receiving paper copies of your
shareholder reports. Your election to receive reports in paper will apply to all portfolio companies available under your contract at the insurance company.
Before you invest, you may want to review the Portfolio’s
prospectus, which, as supplemented, contains more information about the Portfolio and its risks. You can find the Portfolio’s prospectus, reports to shareholders and other information about the Portfolio online at http://www.pimco.com/pvit. You can also get this information at no
cost by calling 1.800.927.4648 or by sending an email request to
[email protected]. The Portfolio’s prospectus and Statement of Additional Information, both dated April 30, 2021, as supplemented, are incorporated by reference
into this Summary Prospectus.
Investment Objective
The Portfolio seeks maximum real return, consistent with preservation of real capital and prudent investment management.
Fees and Expenses of the Portfolio
This table describes the fees and expenses that you may pay if you buy, hold and sell Institutional Class
shares of the Portfolio. You may pay other fees, such as commissions and other fees to financial
intermediaries, which are not reflected in the table and example below. Overall fees and expenses of
investing in the Portfolio are higher than shown because the table does not reflect variable contract fees and expenses.
| Shareholder Fees (fees paid directly from your investment): |
N/A |
Annual Portfolio Operating Expenses (expenses that you pay each year as
a percentage of the value of your investment):
| |
Institutional
Class |
| Management Fees |
0.50% |
| Other Expenses(1) |
0.19% |
| Total Annual Portfolio Operating Expenses |
0.69% |
1
“Other Expenses” include interest expense of 0.19%. Interest expense is borne by
the Portfolio separately from the management fees paid to Pacific Investment Management Company LLC
(“PIMCO”). Excluding interest expense, Total Annual Portfolio Operating Expenses are 0.50% for Institutional Class shares.
Example. The Example is intended to help you compare the cost of investing in Institutional Class shares of the Portfolio with the costs of
investing in other mutual funds. The Example assumes that you invest $10,000 for the time periods indicated, and then redeem all your shares at the end of those periods. The Example also
assumes that your investment has a 5% return each year and that the Portfolio’s operating expenses
remain the same. Although your actual costs may be higher or lower, the Example shows what your costs would be based on these assumptions. The Example does not reflect fees and expenses of any variable annuity contract or variable life insurance
policy, and would be higher if it did.
| |
1 Year |
3 Years |
5 Years |
10 Years |
| Institutional Class |
$70 |
$221 |
$384 |
$859 |
Portfolio Turnover
The Portfolio pays transaction costs when it buys and sells securities (or “turns over” its
portfolio). A higher portfolio turnover rate may indicate higher transaction costs. These costs, which are not reflected in the Annual Portfolio Operating Expenses or in the Example table, affect the Portfolio’s performance. During the most
recent fiscal year, the Portfolio’s portfolio turnover rate was 240% of the average value of its portfolio.
Principal Investment Strategies
The Portfolio seeks to achieve its investment objective by investing under normal circumstances at least 80% of its net assets in inflation-indexed bonds of varying maturities issued by the
U.S. and non-U.S. governments, their agencies or instrumentalities and corporations, which may be
represented by forwards or derivatives such as options, futures contracts or swap agreements. Assets not invested in inflation-indexed bonds may be invested in other types of 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. Inflation-indexed bonds are fixed income securities that are structured to provide
protection against inflation. The value of the bond’s principal or the interest income paid on the bond is adjusted to track changes in an official inflation measure. The U.S. Treasury uses the Consumer Price Index for Urban
Consumers as the inflation measure. Inflation-indexed bonds issued by a foreign government are generally
adjusted to reflect a comparable inflation index, calculated by that government. “Real return” equals total return less the estimated cost of inflation, which is typically measured by the change in an official inflation measure.
Duration is a measure used to determine the sensitivity of a security’s price to changes in interest rates. The longer a security’s duration, the more sensitive it will be to changes in interest rates. Effective duration,
a common method of calculating duration, takes into account that for certain bonds expected cash flows will
fluctuate as interest rates change and is defined in nominal yield terms, which is market convention for most bond investors and managers. Because market convention for bonds is to use nominal yields to measure effective duration, effective duration
for real return bonds, which are based on real yields, are converted through a conversion factor. The
resulting nominal duration typically can range from 20% and 90% of the respective real duration. All security holdings will be measured in nominal effective duration terms. Similarly, the
PIMCO Variable Insurance Trust | Summary Prospectus
PIMCO Real Return Portfolio
effective duration of the Bloomberg Barclays U.S. TIPS Index will be calculated using the same conversion factors. The effective duration of this Portfolio normally varies within three
years (plus or minus) of the effective duration of the securities comprising the Bloomberg Barclays U.S.
TIPS Index, as calculated by PIMCO, which as of February 28, 2021 was 7.63 years.
The Portfolio invests primarily in investment grade securities, but may invest up to 10% of its total
assets in high yield securities (“junk bonds”) rated B or higher by Moody’s Investors Service, Inc. (“Moody’s”), or equivalently rated by Standard & Poor’s Ratings Services
(“S&P”) or Fitch, Inc. (“Fitch”), or, if unrated, determined by PIMCO to be of
comparable quality (except that within such 10% limitation, the Portfolio may invest in mortgage-related securities rated below B). In the event that ratings services assign different ratings to the same security, PIMCO will use the highest rating as the
credit rating for that security. The Portfolio also 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. The Portfolio may invest up to 10% of its total assets in securities and instruments that are economically tied to emerging
market countries (this limitation does not apply to investment grade sovereign debt denominated in the
local currency with less than 1 year remaining to maturity, which means the Portfolio may invest, together with any other investments denominated in foreign currencies, up to 30% of its total assets in such instruments). The Portfolio will
normally limit its foreign currency exposure (from non-U.S. dollar-denominated securities or currencies) to
20% of its total assets.
The Portfolio may invest, without limitation, in
derivative instruments, such as options, futures contracts or swap agreements, or in mortgage- or
asset-backed securities, subject to applicable law and any other restrictions described in the Portfolio’s prospectus or Statement of Additional Information. The Portfolio may purchase or sell securities on a when-issued, delayed delivery or forward
commitment basis and may engage in short sales. The Portfolio may, without limitation, seek to obtain
market exposure to the securities in which it primarily invests by entering into a series of purchase and sale contracts or by using other investment techniques (such as buy backs or dollar rolls). The Portfolio may also invest up to 10% of its total assets
in preferred securities.
Principal Risks
It is possible to lose money on an investment in the Portfolio. The principal risks of investing in the Portfolio, which could adversely affect its net asset value, yield and total return, are listed below.
Interest Rate Risk: the risk that fixed income securities will decline in value because of an increase in interest rates; a portfolio with a
longer average portfolio duration will be more sensitive to changes in interest rates than a portfolio with
a shorter average portfolio duration
Call Risk: the risk that an issuer may exercise its right to redeem a fixed income security earlier than expected (a call). Issuers may call outstanding securities prior to their maturity
for a number of reasons (e.g., declining interest rates, changes in credit spreads and improvements in the issuer’s credit quality). If an
issuer calls a security
that the Portfolio has invested in, the Portfolio may not recoup the full amount of its initial
investment and may be forced to reinvest in lower-yielding securities, securities with greater credit risks or securities with other, less favorable features
Credit
Risk: the risk that the Portfolio could lose money if the issuer or guarantor of a fixed income security, or the counterparty to a derivative contract, is unable or unwilling, or is
perceived (whether by market participants, rating agencies, pricing services or otherwise) as unable or
unwilling, to meet its financial obligations
High Yield Risk: the risk that high yield securities and unrated securities of similar credit quality (commonly known as “junk
bonds”) are subject to greater levels of credit, call and liquidity risks. High yield securities are
considered primarily speculative with respect to the issuer’s continuing ability to make principal and interest payments, and may be more volatile than higher-rated securities of similar maturity
Market
Risk: the risk that the value of securities owned by the Portfolio may go up or down, sometimes rapidly or unpredictably, due to factors affecting securities markets generally
or particular industries
Issuer Risk: the risk that the value of a security may decline for a reason directly related to the issuer, such as management performance, financial leverage and reduced demand for the
issuer’s goods or services
Liquidity Risk: the risk that a particular investment may be difficult to purchase or sell and that the Portfolio may be unable to sell illiquid investments at an advantageous time or price or
achieve its desired level of exposure to a certain sector. Liquidity risk may result from the lack of an
active market, reduced number and capacity of traditional market participants to make a market in fixed income securities, and may be magnified in a rising interest rate environment or other circumstances where investor redemptions from fixed
income funds may be higher than normal, causing increased supply in the market due to selling
activity
Derivatives Risk: the risk of investing in derivative instruments (such as futures, swaps and structured securities), including leverage, liquidity, interest rate, market, credit and
management risks, and valuation complexity. Changes in the value of a derivative may not correlate
perfectly with, and may be more sensitive to market events than, the underlying asset, rate or index, and
the Portfolio could lose more than the initial amount invested. The Portfolio’s use of derivatives may result in losses to the Portfolio, a reduction in the Portfolio’s returns and/or increased volatility. Over-the-counter
(“OTC”) derivatives are also subject to the risk that a counterparty to the transaction will not fulfill its contractual obligations to the other party, as many of the protections afforded to centrally-cleared derivative
transactions might not be available for OTC derivatives. The primary credit risk on derivatives that are
exchange-traded or traded through a central clearing counterparty resides with the Portfolio's clearing broker or the clearinghouse. Changes in regulation relating to a mutual fund’s use of derivatives and related instruments could potentially
limit or impact the Portfolio’s ability to invest in derivatives, limit the Portfolio’s ability to employ
2 Summary Prospectus | PIMCO Variable Insurance Trust
Summary Prospectus
certain strategies that use derivatives and/or adversely affect the value of derivatives and the Portfolio’s performance
Equity
Risk: the risk that the value of equity securities, such as common stocks and preferred securities, may decline due to general market conditions which are not specifically related
to a particular company or to factors affecting a particular industry or industries. Equity securities
generally have greater price volatility than fixed income securities
Mortgage-Related and Other Asset-Backed Securities Risk: the risks of investing in mortgage-related and other asset-backed securities, including interest rate risk, extension risk, prepayment risk and credit risk
Foreign (Non-U.S.) Investment Risk: the risk that investing in foreign
(non-U.S.) securities may result in the Portfolio experiencing more rapid and extreme changes in value than a portfolio that invests exclusively in securities of U.S. companies, due to smaller markets, differing reporting, accounting and auditing
standards, increased risk of delayed settlement of portfolio transactions or loss of certificates of
portfolio securities, and the risk of unfavorable foreign government actions, including nationalization,
expropriation or confiscatory taxation, currency blockage, or political changes or diplomatic developments.
Foreign securities may also be less liquid and more difficult to value than securities of U.S.
issuers
Emerging Markets Risk: the risk of investing in emerging market
securities, primarily increased foreign (non-U.S.) investment risk
Sovereign Debt Risk: the risk that investments in fixed income instruments issued by sovereign entities may decline in value as a result
of default or other adverse credit event resulting from an issuer’s inability or unwillingness to
make principal or interest payments in a timely fashion
Currency
Risk: the risk that foreign (non-U.S.) currencies will change in value relative to the U.S. dollar and affect the Portfolio’s investments in foreign (non-U.S.) currencies or in
securities that trade in, and receive revenues in, or in derivatives that provide exposure to, foreign (non-U.S.) currencies
Leveraging Risk: the risk that certain transactions of the Portfolio, such as reverse repurchase agreements, loans of portfolio
securities, and the use of when-issued, delayed delivery or forward commitment transactions, or derivative
instruments, may give rise to leverage, magnifying gains and losses and causing the Portfolio to be more
volatile than if it had not been leveraged. This means that leverage entails a heightened risk of
loss
Management Risk: the risk that the investment techniques and risk analyses applied by PIMCO will not produce the desired results and that actual or potential conflicts of interest,
legislative, regulatory, or tax restrictions, policies or developments may affect the investment techniques
available to PIMCO and the individual portfolio manager in connection with managing the Portfolio and may cause PIMCO to
restrict or prohibit participation
in certain investments. There is no guarantee that the investment objective of the Portfolio will be achieved
Inflation-Indexed Security Risk: the risk that inflation-indexed debt
securities are subject to the effects of changes in market interest rates caused by factors other than
inflation (real interest rates). In general, the value of an inflation-indexed security, including TIPS, tends to decrease when real interest rates increase and can increase when real interest rates decrease. Interest payments on
inflation-indexed securities are unpredictable and will fluctuate as the principal and interest are
adjusted for inflation. There can be no assurance that the inflation index used will accurately measure the
real rate of inflation in the prices of goods and services. Any increase in the principal amount of an
inflation-indexed debt security will be considered taxable ordinary income, even though the Portfolio will
not receive the principal until maturity
Short Exposure Risk: the risk of entering into short sales, including the potential loss of more money than the actual cost of the
investment, and the risk that the third party to the short sale will not fulfill its contractual
obligations, causing a loss to the Portfolio
Please see “Description
of Principal Risks” in the Portfolio's prospectus for a more detailed description of the risks of investing in the Portfolio. An investment in the Portfolio is not a deposit of a bank and is not insured or guaranteed by the Federal Deposit
Insurance Corporation or any other government agency.
Performance Information
The performance information shows summary performance information for the Portfolio in a bar chart and an
Average Annual Total Returns table. The information provides some indication of the risks of investing
in the Portfolio by showing changes in its performance from year to year and by showing how the
Portfolio’s average annual returns compare with the returns of a broad-based securities market index.
The Portfolio’s performance information reflects applicable fee waivers and/or expense limitations in
effect during the periods presented. Absent such fee waivers and/or expense limitations, if any, performance would have been lower. Performance shown does not reflect any charges or expenses imposed by an insurance company, and, if it did, performance shown would be lower. The bar chart and the table show performance of the Portfolio’s Institutional Class shares. The Portfolio’s past performance is not necessarily an indication of how the
Portfolio will perform in the future.
The Bloomberg Barclays U.S. TIPS Index is an unmanaged market index comprised of all U.S. Treasury Inflation-Protected
Securities rated investment grade (Baa3 or better), having at least one year to final maturity, and at
least $500 million par amount outstanding.
Performance for the Portfolio
is updated daily and monthly and may be obtained as follows: daily updates on the net asset value may be
obtained by calling 1-888-87-PIMCO
and monthly performance may be obtained at www.pimco.com/pvit.
April 30, 2021 | SUMMARY PROSPECTUS 3
PIMCO Real
Return Portfolio
Calendar Year Total Returns — Institutional Class
| Best Quarter |
June 30, 2020 |
5.33% |
| Worst Quarter |
June 30, 2013 |
-8.41% |
Average Annual Total Returns (for periods ended 12/31/20)
| |
1 Year |
5 Years |
10 Years |
| Institutional Class Return |
11.88% |
5.41% |
3.78% |
| Bloomberg Barclays U.S. TIPS Index (reflects no deductions for fees, expenses or taxes) |
10.99% |
5.08% |
3.81% |
Investment Adviser/Portfolio Manager
PIMCO serves as the investment adviser for the Portfolio. The Portfolio’s portfolio is jointly and primarily managed by Steve Rodosky and Daniel He. Mr. Rodosky is a Managing Director of PIMCO, and he has managed the Portfolio since January 2019. Mr. He is an Executive Vice President of PIMCO, and he has managed the Portfolio since December 2019.
Purchase and Sale of Portfolio Shares
Shares of the Portfolio currently are sold to segregated asset accounts (“Separate Accounts”) of insurance companies that fund variable annuity contracts and variable life
insurance policies (“Variable Contracts”) and other funds that serve as underlying investment options for Variable Contracts (i.e.,
variable insurance funds). Investors do not deal directly with the Portfolio to purchase and redeem shares. Please refer to the prospectus for the Separate Account for information on the allocation of premiums and on transfers of
accumulated value among sub-accounts of the Separate Account.
Tax Information
The shareholders of the Portfolio are the insurance companies offering the variable products or other
variable insurance funds. Please refer to the prospectus for the Separate Account and the Variable Contract for information regarding the federal income tax treatment of distributions to the Separate Account.
Payments to
Insurance Companies and Other Financial Intermediaries
The Portfolio and/or its related companies (including PIMCO) may pay the insurance company and other
intermediaries for the sale of the Portfolio and/or other services. These payments may create a conflict of
interest by influencing the insurance company or intermediary and your salesperson to recommend a Variable
Contract and the Portfolio over another investment. Ask your insurance company or salesperson or visit your
financial intermediary’s Web site for more information.
PVIT0593S_043021
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