• Invests in both U.S. and non-U.S. high-quality 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.
• 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.

Return Potential
Over half of the world's fixed income securities are issued outside the United States. And those foreign bond markets offer potentially profitable opportunities.

Diversification Tempers Risk
Historically, bond markets in different countries have tended to move in varying patterns from each other. With a globally diversified portfolio of bonds, you can attempt to mitigate the volatility that could occur if you invested only in the United States or any other single country.

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.

Conservative Investment Strategy
International investing can entail special risks, including the effects of foreign economic, political and legal developments, as well as currency rate changes. The manager has taken steps to make the Fund a relatively more conservative investment by primarily holding investment grade bonds, and by hedging at least 80% of foreign security holdings 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 managing director in the Newport Beach office and head of global portfolio management. Previously, he led portfolio management in Europe, managed euro and pan-European portfolios and worked closely with many Allianz-related companies. He also served as a managing director of Allianz Global Investors KAG. Prior to these roles, Mr. Mather co-headed PIMCO’s mortgage- and asset-backed securities team. Prior to joining PIMCO in 1998, he was a fixed income trader specializing in mortgage-backed securities at Goldman Sachs in New York. He has 15 years of investment experience and holds a master’s degree in engineering, as well as undergraduate degrees, 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.