• Invests primarily in high-quality, non-U.S. intermediate-term bonds. As over half of the world's fixed-income securities are issued outside of the U.S., the Fund adds diversification to any bond portfolio.
• As economic and business cycles around the world may not move in the same pattern, the best bond opportunities can sometimes lie outside the United States.
• Tempers risk by investing primarily in investment-grade bonds and hedging at least 80% of its foreign currency exposure to protect against unfavorable currency fluctuations.

Reward Potential
Over half of the world's fixed income securities are issued outside the United States. And as economic and business cycles around the world do not move in the same pattern, the best bond opportunities can sometimes lie outside the United States.

Expert Management

As measured by assets under management, PIMCO is one of the largest investment advisors in the country. In recent years, the Firm has expanded its global operations and today has offices in cities such as London, Munich, Singapore, Sydney and Tokyo.

A More Conservative Approach
To manage risk, the Fund primarily holds investment grade bonds and hedges at least 80% of the Fund's foreign currency exposure against unfavorable currency fluctuations.

The 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. The Fund's top-down strategy begins with a country bond allocation model that helps determine which countries have the best risk-adjusted yield. Currency allocations are determined according to short-term yields, market trends, technical factors and fundamental analysis focused on measures of relative purchasing power. The bottom-up strategy of the Fund includes sector selection and credit research, which stresses fundamental and in-depth analysis of all holdings. The Fund may at times use futures to replicate bond positions.** This strategy can offer the opportunity to outperform physical bond securities due to the relative pricing of the futures contracts and PIMCO's active management of the collateral backing the futures.

** Futures may also be used to manage the Fund portfolio's overall duration and sector exposure.

Mr. Mather is a PIMCO managing director and member of the investment committee with many years of investment experience in the U.S., U.K. and European markets. Prior to his recent return to Newport Beach, Scott oversaw more than $350 billion in assets in both the U.K. and Germany. Prior to joining PIMCO in 1998, Scott was a fixed income trader with Goldman Sachs specializing in mortgage backed securities. He holds a B.A. and M.A. in engineering from the University of Pennsylvania, as well as a degree in finance 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.