• Invests primarily in a diversified portfolio of floating-rate debt instruments.
• A substantial portion of the portfolio’s holdings are in high-yield senior floating-rate loans, which generally hold the most senior position in the capital structure of a corporation, and are often secured with collateral.
• The Fund can also invest in fixed-rate securities with maturities of less than or equal to one year.
• Because most of these debt instruments have variable interest rates, the Fund is generally expected to have less interest rate risk and a more stable net asset value than funds that invest in fixed-income securities, although the NAV will vary due to fluctuations in interest rates and other factors, such as changes in the credit quality of portfolio securities and the spread between corporate-debt interest rates and Treasuries.

The top-down investment process begins with PIMCO’s annual Secular Forum, during which the firm develops a three- to five-year outlook for the global economy and interest rates. This helps set the basic portfolio parameters, including duration, yield-curve positioning, sector weightings, credit quality breakdown and individual issue selection. The Fund focuses on securities in the upper tier of the below-investment grade credit spectrum, which historically have delivered the best risk/return profile. Consideration of yield is only one component of the portfolio manager’s approach; PIMCO also considers capital appreciation and principal preservation through intensive fundamental, macroeconomic, industry and company-specific research. Finally, non-traditional sectors are employed in small doses to enhance return and increase diversification.

Mr. Conseil joined PIMCO in 1998 and is currently a PIMCO Executive Vice President and portfolio manager who manages the firm's U.S. dollar bank loan exposure. Mr. Conseil holds a B.S. in economics with a concentration in finance from The Wharton School and an MBA in finance/international business from Columbia University Graduate School of Business.

Newport Beach, California

Led by Founder and Co-Chief Investment Officer Bill Gross, PIMCO is widely recognized as one of the premier bond managers in the world. PIMCO applies this expertise to a range of core and specialized investment portfolios.