• Attempts to seize opportunities produced by dramatic secular shifts in the global economy.
• Invests in the broadest possible range of fixed-income opportunities, from developed to emerging markets, nominal to real (inflation-hedging) assets and cash to derivative instruments.
• Benchmarked to the GDP-weighted PIMCO Global Advantage Bond Index, which may be more forward looking because capitalization weighting, which is how most indexes are structured, lags economic growth as an indicator.
• Managed by Mohamed El-Erian, co-CIO and co-CEO of PIMCO.

Designed to Capitalize on Dramatic Global Economic Change

PIMCO believes the global economy and financial markets are evolving rapidly, leading to a fundamental transformation in opportunities for bond investors. PIMCO Global Advantage Strategy Bond Fund is designed to capitalize on this new age of global economic change by adopting a new strategic approach based on the firm’s recently launched Global Advantage Bond Index.

Potentially Enhanced Risk-Return Profile

Through its use of the Global Advantage Bond Index, The Fund may offer an enhanced risk-return profile compared to traditional global bond funds. That is because PIMCO believes the Index has two important advantages:

• GDP weight, not market capitalization drives index allocations. Since capital market development tends to lag economic development, this makes the Index more forward-looking: it emphasizes countries today that will likely represent an increased share of market capitalization in the future.
• The Index covers the spectrum of bond opportunities and sectors—from developed to emerging markets, nominal to real assets, and cash to derivative instruments. This broad scope enables the index to identify more yield opportunities and enhance diversification.

What are some of the risks?

The Fund may involve concentrated exposure in areas of the bond market that entail greater risks. For example, high yield, or below-investment-grade, securities carry a higher degree of credit risk, and may be speculative and more volatile. Investing in emerging markets may entail risk due to foreign economic and political developments. Also, foreign currency exposure can entail significant volatility—and this may be amplified with the currencies of developing countries. Other risks also apply, which are outlined in the Fund’s prospectus.

Access to PIMCO’s Proven Expertise

PIMCO has been managing fixed-income securities for more than 30 years and is widely recognized as one of the world’s premier bond managers. As measured by assets under management, PIMCO is one of the largest investment advisors in the country, with a client list that includes many of the largest companies in the U.S. PIMCO’s disciplined investment process and its secular outlook will govern the Fund.

Dr. El-Erian is co-CEO and co-CIO of PIMCO, which he rejoined in December 2007 after serving for two years as president and CEO of Harvard Management Company, the entity that manages Harvard’s endowment and related accounts. He earned his B.A. in economics from Cambridge University and doctoral and master’s degrees in economics from Oxford University. He spent 15 years at the International Monetary Fund in Washington, D.C., before moving to the private sector where he served as managing director at Salomon Smith Barney/Citigroup in London. He first joined PIMCO in 1999, where he was a managing director and a senior member of PIMCO’s portfolio management and investment strategy group.

Executive Vice President, PIMCO. He joined PIMCO in 2006 and is a portfolio manager specializing in global economics and emerging markets. Prior to joining PIMCO, he worked for seven years international division of the U.S. Department of the Treasury, including as director of the Office the Western Hemisphere and senior advisor to the Under Secretary for International Affairs.

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.