* "Gov't and Gov't Related" may include nominal and inflation-protected Treasuries, Agencies, interest rate swaps, Treasury futures and options, and FDIC-guaranteed corporate securities.** "Net Cash & Equivalents" is defined as any investment grade security with duration less than one year. Periodically these sectors may not be represented in the fund. Sectors are subject to change.

This is not intended as a recommendation, offer or solicitation for the purchase or sale of any financial instrument. References to specific sectors, securities or issuers are for illustrative purposes only. All holdings are subject to change daily. All share classes have the same portfolio but different expenses.

The Fund?s investments in derivatives may involve certain costs and risks such as liquidity risk, interest rate risk, market risk, management risk and the risk that the fund could not close out a position when it would be advantageous to do so. In particular the Fund may use swap agreements to engage in short sales related to the S&P 500. If the price of a security in a short sale has increased during the agreement, then the Fund may incur a loss equal to the increase in price from the time the short sale was entered into plus any premiums and interest paid. The Fund?s investments in high-yield municipal bonds may decline in value if interest rates rise. Such securities are considered speculative and may be subject to greater risk of default. Income from such bonds may be subject to state income tax and the alternative minimum tax.

The Securities Industry and Financial Markets Association (SIFMA) Muni Swap IX Index is a weekly high grade market index comprised of 7-day tax-exempt variable demand notes produced by Municipal Market Data Group. The unmanaged Enhanced Research Affiliates Fundamental 1000 Index (Enhanced RAFI) tracks the 1,000 largest U.S. stocks using fundamental measures such as gross sales, free cash flow, book value and dividends and is further refined by a number of proprietary enhancements and selection screens. The Standard & Poor?s (S&P) 500 Index is an unmanaged market index generally considered representative of the U.S. stock market as a whole.

Risk Section Source: IDS GmbH-Analysis and Reporting Services, an investment analysis and reporting service which is a subsidiary of Allianz SE. This section is based on the actual share class and measures volatility. The different elements comprising this section are explained below. The overall market is represented by the unmanaged index which is the fund?s official benchmark in its prospectus. Beta measures the market related volatility of a portfolio. The beta of the market is 1 by definition. A beta greater than 1 indicates that a portfolio's market risk is greater than the overall market's, while a beta less than 1 indicates a lower market risk. It is important to note that having a low market risk does not necessarily imply low volatility. A portfolio may have a low beta while experiencing volatility due to factors independent of the market. R-squared measures the percentage of a portfolio's movements that are explained by movements in the overall market. Standard deviation is an absolute measure of volatility measuring dispersion about an average which, for a mutual fund, depicts how widely the returns varied over a certain period of time.

PIMCO's average credit quality statistic is intended to provide clients with helpful insight into a portfolio's sensitivity to changes in credit spreads. In general, instruments are weighted at their market value. Certain derivatives, such as swaps, are weighted at "bond equivalent value", which is the notional amount of the instrument adjusted by the current gain or loss on the position. The two "legs" of a swap are included separately in the calculation. The "risky" leg (e.g. the fixed leg for interest rate swaps or the reference entity for credit default swaps) is assigned a credit rating associated with the regional market (for interest rate swaps) or reference entity (for credit default swaps) of the instrument. The "floating" leg is assigned a short-term rating of A1/P1.

PIMCO Funds & Allianz Funds are distributed by Allianz Global Investors Distributors LLC, 1345 Avenue of the Americas, New York, NY 10105-4800, www.allianzinvestors.com, 1-888-877-4626. Investment Products: NOT FDIC INSURED | MAY LOSE VALUE | NOT BANK GUARANTEED