• Access to higher yielding areas of the fixed-income market with potentially less overall volatility than a less diversified fund.
• Active allocation and investment management from one of the country's leading fixed-income managers.
• Benefits from PIMCO's depth of expertise in corporate and emerging market investing.

PIMCO Diversified Income Fund offers a way to improve income and return potential by investing in multiple higher yielding sectors of the global bond market rather than focusing on a single one. The result is a diversified bond portfolio which strives to deliver maximum total return—income plus capital appreciation—with less overall volatility.

Asset allocation & diversification across higher yielding sectors of the bond market

Investment-grade corporate bonds, high yield corporate bonds and emerging markets bonds are all credit-sensitive sectors of the global fixed-income market and, as a result, generally offer higher income potential. By investing in all three sectors, and actively managing the weightings, PIMCO seeks to deliver incremental yield with less volatility than a fund that just invests in one of them. Also, credit sensitive sectors of the market are an important complement to core stocks and bonds in an asset allocation.

Management expertise

PIMCO Diversified Income Fund benefits from PIMCO's broad fixed-income expertise, active investment management, and global credit research capabilities.

• PIMCO is widely recognized as a leader in fixed-income investment management, with expertise in all areas of the global bond market.
• The PIMCO bond team employs a top-down investment strategy based on the firm's secular outlook for the global economy and bond market. The Fund is actively managed within this framework, with numerous value-added strategies used to increase yield potential and manage risk.
• PIMCO's independent research capabilities are critical for a Fund focused on these credit-sensitive segments of the global bond market, especially the firm's bottom-up credit research and fundamental country analysis.

From a neutral weighting of one-third of the total assets in global investment-grade corporate bonds, one-third global high yield corporate bonds and one-third emerging markets bonds, the Fund's allocation is adjusted based on PIMCO's investment outlook. This outlook is formulated at the firm's annual Secular Forum, where investment professionals gather for a three day discussion of the economy and financial markets. The outgrowth of the Forum is PIMCO's Secular Outlook, which is its forecast for the next 3–5 years. In addition, the firm holds quarterly outlook meetings, where the longer-term view is augmented by cyclical factors. In general, the manager of PIMCO Diversified Income Fund will look to overweight the segment or segments that offer the most potential, while holding a defensive position in the other segment or segments. To do this, the manager will tap into the expertise of the investment grade, high yield and emerging markets teams at PIMCO.

Mr. Mewbourne is a managing director, portfolio manager and head of the emerging markets, diversified income (co-head), and Insurance portfolio management teams. He has longtime portfolio management experience spanning a broad range of asset classes. He holds an engineering degree in computer science from the University of Pennsylvania.

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.