• Provides attractive return potential for investors willing to accept the additional risks associated with emerging market securities.
• Focuses on fixed-income securities denominated in the local currencies of developing countries.
• Can help enhance portfolio diversification in conjunction with traditional stock and bond investments.
• Taps into the PIMCO emerging market team’s considerable experience, market presence, and expertise.

Expanding Opportunity Set
Economic improvements in every region of the emerging market universe have led to continued improvement in the sector’s average credit quality. This in turn has fueled two significant trends: a rise in the issuance of locally-denominated bonds, and an increase in longer-dated securities. PIMCO Emerging Local Bond Fund’s investment focus is aligned with both of these trends, enabling it to take advantage of expanding opportunities within the sector.

Diversification Potential
Local-currency-denominated investments in emerging markets have low correlations with other asset classes.** They also provide investors an opportunity to reduce their portfolio's exposure to a rise in U.S. interest rates and are likely to benefit from declines in the value of the U.S. dollar.
 
Historically Strong Returns
Over half the world's fixed income securities are issued outside of the United States. Within this foreign issuance, emerging markets have historically provided investors with attractive risk-adjusted returns. Of course, past performance is no guarantee of future results, and an investment in emerging market securities involves specialized risks. That is why the Fund should only form part of a diversified portfolio.
 
Expert Management
As measured by assets under management, PIMCO is one of the largest investment advisors in the country. Among PIMCO's clients are many of the 100 largest U.S. corporations. Notably, PIMCO manages significant emerging markets assets and is one of the largest participants in this area of the bond market.
 
Total Return Philosophy
Many bond funds concentrate solely on providing income. But concentrating on income alone can mean sacrificing capital appreciation potential. The Fund seeks maximum total return taking into consideration both income and capital appreciation potential.
 
Intensive Risk Management
Fundamental to the process of risk management are a variety of analytical tools, which are available to measure and monitor exposures in the portfolio. In addition to these measures, PIMCO closely monitors economic, political, and other developments that impact the domestic and external markets of emerging markets countries.

The Fund’s top-down investment process begins with PIMCO's annual secular forum at which the firm develops a 3- to 5-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 finally, individual issue selection. PIMCO then employs its well-tested country selection process with respect to emerging economies. This process requires that each country PIMCO invests in satisfy three independent criteria: 1) strong underlying credit fundamentals; 2) limited risk from the external environment and global economy; and 3) lack of susceptibility to a de-facto deterioration of credit quality or financial contagion due to imbalanced market technicals. In managing local currency exposures, PIMCO will pay particular attention to the country's domestic savings and investment flows, the balance of payments, the outlook for inflation, technical factors specific to the local markets, and other factors likely to drive local currency and interest rate moves.

Mr. Gomez is an Executive Vice President, portfolio manager and Co-Head of the Emerging Markets team. He joined PIMCO in 2003 after working with Goldman Sachs. Prior to that, he spent a year in Colombia as a financial consultant to the Ministry of Finance and Public Credit. Mr. Gomez holds a bachelor's degree from the University of Pennsylvania and an MBA from The Wharton School.

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.