• Takes a conservative approach to high-yield investing by concentrating on the upper credit tiers of the high yield market and focusing on income as well as capital management.
• Avoids exposure to the more risky and speculative lower-tier of non-investment grade bonds.
• Utilizes PIMCO's disciplined approach to credit research, accessing the full breadth and depth of PIMCO's in-house global credit team.

Greater Income Potential
Below investment grade bonds are often the issues of corporations that lack a long-term track record of earnings or growth. In general, these lower-rated securities are considered riskier than other fixed-income instruments. To compensate investors for taking on this additional risk, below investment grade bonds have the potential for significantly higher income – which is why they are commonly referred to as "high yield" bonds.

Attractive Risk/Reward Tradeoff
PIMCO High Yield Fund attempts to control the risk by investing in better quality high yield bonds. By focusing on the upper- and middle-credit quality tiers of the high yield market, the Fund avoids exposure to the more speculative and risky lower-tier high yield bonds. This focus on quality has, in the past, resulted in a less volatile high yield fund without sacrificing return potential.

Expert Management

As measured by assets under management, PIMCO is one of the largest investment advisors in the country.

The top-down investment process begins with PIMCO's annual secular forum at which the firm develops a 3-5 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 individual issue selection. The Fund focuses on the upper-tier credits, within the below investment grade universe, because historically they have delivered the best risk/return profile. Consideration of yield is only one component of our approach. We also consider capital appreciation and principal preservation through intensive fundamental, macroeconomic, industry and company-specific research. Furthermore, intermediate maturity bonds are emphasized to ensure that Fund performance is driven by credit characteristics, not interest rate risk. Finally, non-traditional sectors are employed in small doses to enhance return and increase diversification.

Andrew Jessop is an Executive Vice President of PIMCO. Mr. Jessop joined PIMCO in 2009, as a senior portfolio manager and head of the high yield team. Prior to joining PIMCO, he was a managing director, portfolio manager and co-head of the high yield group at Goldman Sachs Asset Management, where he spent twelve years.

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.